RECONCILIATIONS - GENERAL - 7901

Agencies/departments are required to perform reconciliations to ensure accuracy and consistency in their accounting records. Agencies/departments will reconcile the account balances to supporting documentation such as invoices, receipts, etc. Agencies/departments will also compare agency/department accounts with records other than those prepared by the agency/department, such as bank statements used in a bank reconciliation.

In addition to the above reconciliation processes, agencies/departments must complete timely reconciliations between the agency's/department's accounts with the accounts maintained by the State Controller's Office (SCO)  to disclose and correct errors as they occur. Errors must be corrected as soon as possible and reconciling differences must be resolved before financial reports are prepared to ensure accuracy.

State Administrative Manual (SAM) sections 7921-7924 provide some common reconciliations. However, each agency/department is responsible for completing any reconciliation necessary to safeguard the state's assets and ensure reliable financial data.

All reconciliations will show the preparer's and reviewer's names and signatures, date prepared, and date reviewed. Reconciliations will be prepared monthly within 30 days of the preceding month, except for property reconciliations. See SAM section 7924.

All reconciliations will be retained for at least two years with the exception of federal reconciliations. For more information on the recommended general retention schedule, see the Secretary of State website.