RECONCILIATION OF DEPARTMENT’S ACCOUNT BALANCES WITH SCO BALANCES - 7921

Agencies/departments will reconcile their accounts with the corresponding accounts maintained by the State Controller’s Office (SCO). The SCO provides the following reconciliation reports to agencies/departments to facilitate the monthly reconciliation process:

1. Agency Reconciliation Report– Provides agencies/departments appropriation account balances maintained by the SCO.  Agencies/departments will reconcile appropriation account balances within their accounting system to the corresponding balances maintained by the SCO. For each appropriation account, the report displays the beginning balance, transactions that occurred during the month, and the ending balance. The reconciliation will detail any differences in appropriation balances between the SCO and agency’s/department’s records. Agencies/departments will resolve reconciling items timely to prevent differences at year-end and ensure appropriations are within established limits.

    

2. Fund Reconciliation Report–Provides agencies/departments general ledger account balances maintained by the SCO. Agencies/departments will reconcile general ledger account balances within their accounting system to the corresponding balances maintained by the SCO for non-shared funds and shared funds to provide accurate information for the preparation of required financial reports.

The Department of Finance, Fund Balance Reconciliation Guide, Appendix 10.4, and SAM section 6401 have information regarding the responsibilities and authority of fund administrators and fund users for both non-shared and shared funds. One of the responsibilities is to “verify the accuracy of departmental accounting records by performing monthly reconciliations with source documents and corresponding appropriation and general ledger accounts maintained by the SCO.” This responsibility applies to fund administrators and fund users of both non-shared and shared funds.