General ledger reconciliation
What is a reconciliation? The process of correlating one set of records with another set of records and/or a physical inventory count that involves identifying, explaining, and correcting differences.
The foundation of quality financial information is in the detail data recorded at the general ledger (GL) level. Reconciliations serve as a key element of a system of internal control and are required by state policy.
The following resources are intended to provide general guidance for state agencies.
General information
- Items to consider when reconciling GLs - provides best practice ideas to incorporate into your agency’s reconciliation policy/procedures.
SAAM reconciliation requirements
- Alphabetically by category - provides alphabetical list of reconciliations required by SAAM.
- Numerically by GL code - provides a list of most frequently used GL codes, frequency of their reconciliations, and source to which they should be reconciled.
Online training classes related to GL reconciliation
- General Ledger Basics (90 minutes) - this is a good foundational class to take before attempting reconciliations.
- In-Process (1 hour) - reviews how the In-Process report works and how to prevent and resolve common issues.
Examples:
An assignment list is recommended to keep track of who (individual or unit) is responsible for reconciling each account/GL and who is responsible for reviewing these same reconciliations. A checklist is recommended to track the status of reconciliations. These can be two separate documents or a combined document. The examples below are intended to help get you started if you don’t already have a listing.
- Assignment list - This document is a listing of assignments only and is not designed to track the status of the actual reconciliations.
- Reconciliation Tracking TEMPLATE - This document has a template for tracking reconciliation completions by month, showing responsible party and source to which GL should be reconciled; it includes separate worksheets listing the (a) recommended frequency and source for reconciling the most common GLs and (b) a list of GLs that should have offsetting balances.
- Reconciliation Tracking EXAMPLE - This is a partially completed example of the above TEMPLATE.
Written agency reconciliation policies should clearly set expectations and requirements to which all staff must adhere. Written reconciliation procedures should standardize processes to the extent possible.
- UW reconciliation policy - This webpage has a link to an example of an agency reconciliation policy that includes purpose, scope, and specific requirements.
- GL reconciliation procedure - This is a generic procedure that could be used as a starting point for specific agency reconciliation procedures.
- GFOA Documentation of Accounting Policies and Procedures - This short article from the Government Finance Officers Association explains the importance of policies and procedures and some key components to include.
Below are a variety of reconciliation templates, examples, and instructions, most of which are specific to a GL or GL group and may need to be modified for your specific agency needs. Many of these documents were contributed by agencies.
- Reconciliation template - a generic reconciliation template with an example, a blank version, and instructions.
- Department of Revenue CAMS reconciliation
- GL 1130 Petty Cash reconciliation
- GL 1383 Travel Advances reconciliation
- GL 5111 Accounts Payable reconciliation
- GL 5111 Reconciliation Template - includes a blank summary template and an optional template for tracking detail.
- GL 5111 Reconciliation Procedure - instructions specific to the GL 5111 Reconciliation Template.
- GL 5111 Reconciliation Example - an example showing a reconciliation with the related backup information using the above template.
- GL 5194 Liability for Canceled Warrants reconciliation
- In-Process reconciliation (GLs 7110-7140, 9920)
- Troubleshooting guide - provides a list of common problems and offers suggestions on what to check and how to fix common issues on the unbalanced in-process report.
Payroll reconciliation
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