BANK RECONCILIATION - 7923
Departments will reconcile their bank account balance with the like account maintained in the centralized State Treasury System (CTS). Departments will reconcile their General Cash, Revolving Fund Cash, and Agency Trust Fund Cash accounts with their State Controller’s Office (SCO), Centralized Treasury Trust System Account Statement bank balance, adjusted for deposits in-transit, outstanding checks, and other reconciling items. When departments account for more than one fund in a bank account, departments will identify the fund’s share on the bank reconciliation.
SCO provides a monthly Centralized Treasury Trust System Account Statement (CTS statement) to departments that includes a sequential listing of the following items by transaction/paid date, document number, and amount:
- Checks paid during the month
- Transfers of Funds (i.e. TC47 SCO transaction code entries) during the month
- Deposits posted during the month
For each check paid, the CTS statement shows the check number, date paid, and the amount paid. Departments will use the listing to determine the amount of outstanding checks. The outstanding check amount on the reconciliation will be supported by a list showing the number, date, and amount of each outstanding check. On October 1, 2010, all agency checks were converted to electronic images and were made available on the STO statewide Agency Paid System. Check data is updated daily and retained for five years from the check paid date. Departments can access and print images of their checks through the automated system. To obtain access to the Agency Paid System, departments shall complete the STO’s User ID Assignment/Removal Form STO-IP 130. The form and information can be obtained by contacting the STO Item Processing Section at ItemProc@sto.ca.gov.
The CTS statement also includes a chronological listing of SCO transfers from the account and bank deposits posted during the month. Departments will compare the transfers and deposits posted on the CTS statement to department records to determine the amount of outstanding transfers and deposits in-transit. The outstanding transfers and deposits on the reconciliation will be supported by respective lists showing the document number, date, and amount outstanding. Departments will attempt to resolve deposits in-transit over 30 days.
Errors on the CTS statement will be corrected as provided in SAM section 8060. The reconciliation will trace every reconciling item between the bank and the department’s records and include an explanation. Departments will file CTS statements and monthly reconciliations in date order.