Guide to assist staff with the account reconciliation process at UW–Madison.
Account reconciliation is a process reviewing the difference between the balance shown on the account statement—supplied by US Bank or online through SinglePoint—and the corresponding amount shown in the check register at the end of the month.
Check register instructions
- When using the check register, complete the top portion with the requested information.
- The DATE column is the date the check was written.
- The CHECK # column is for the check number, if applicable.
- After the check has cleared the bank, place an “X” in the “Status of Check” column. If a stop payment is placed on a check, place an “S” in the “Status of Check” column. If a check is voided, place a “V” in the “Status of Check” column.
- Record the check recipient or vendor’s name in the Payee reference column. For research participants, we recommend using unique participant numbers or initials to keep names confidential. For vendors, we need their complete name.
- Reminder: Contingent bank accounts need to submit receipts along with the check register for replenishment.
- Reminder: Custodian Funds for research participant studies, such as replenishable bank accounts and temporary funds, need to maintain participant logs at site and obtain W-9’s per Policy 103 – Payments to Research Participants.
Account reconciliation worksheet instructions
Account reconciliations are to be completed every month and submitted to Accounting Services Cash Management and your unit’s Business Office within 30 days of month end.
Account Reconciliation Worksheet Custodian Funds Reconciliation Examples (PDF)
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Bank account reconciliation instructions
A. Steps to balance your bank account
A1. Fill out the top portion of the bank reconciliation worksheet.
A2. Enter the month end balance from the bank statement.
A3. Enter any deposits in transit as of the end of the month you are reconciling.
A4. Enter the month end balance from the check register.
A5. Enter all outstanding checks as of the end of the month you are reconciling. Outstanding checks are those that have not cleared.
A6. Enter any outstanding adjustments as of the end of the month you are reconciling.
A7. The Adjusted Bank Statement Balance and the Adjusted Check Register should equal.
B. Steps to balance to the authorized Custodian Fund amount
B1. Enter the checks written through the month you are reconciling that have not been replenished.
B2. Enter the total amount of checks that have a stop payment. Enter the amount as a negative amount. Note that checks 90 days or older are to have a stop payment placed in US Bank SinglePoint.
B3. Enter the current authorized amount.
B4. Difference should be zero.
B5. Total amount of replenishment that needs to be requested from Cash Management to replenish the bank account. Note: complete replenishments at least every 90 days or sooner.
Reloadable debit card reconciliation instructions
A. Steps to balance account
A1. Fill out top portion of Account Reconciliation Worksheet.
A2. Enter month end balance from Account Reconciliation Report.
A3. Enter any deposits in transit.
A4. Enter month end balance from Card Load Report.
A5. Enter all outstanding payments.
A6. Enter any outstanding adjustments.
A7. The Adjusted Account Statement Balance & the Adjusted Check Register should equal.
B. Steps to balance to the authorized Custodian Fund amount
B1. Enter the card load payments made through the month you are reconciling that have not been replenished.
B2. Enter the total amount of payment reversals.
B3. Enter current authorized amount.
B4. Difference should be zero.
B5. Total amount of replenishment that needs to be requested from Cash Management to replenish the reloadable debit card account. Note: complete replenishments at least every 90 days or sooner.
These instructions are included in the document below, along with screenshots showing where to find the data (e.g. reports, US Bank Prepaid Administrative Website, etc.) needed to complete the worksheet:
Department record retention responsibility
Original check payment logs and applicable research payment logs are to be maintained by the department/business units and kept for 6 fiscal years plus the current fiscal year per UW Policy 3037 – Record Retention Schedule.
Campus departments have a financial obligation for all voided or uncashed checks for 6 fiscal years plus the current fiscal year per UW Policy 3037 – Record Retention Schedule. Records of voided and uncashed checks are maintained by the department/business units.
Bank Statements: All Accounts
Records include all statements and supporting documentation for reconciliation. Also included are bank analysis reports and all documentation relating to signature authority for checks.
Retention Time Period – Original: 6 Fiscal Years + Current Fiscal Year
Stop Payment/Voided/Cancelled Check Records
Records include requests for stop payments and related correspondence and reports. These requests include Custodian/Research and Contingent Fund accounts. Also included is all documentation relating to unpaid items, such as requests for re-issuance of checks, as well as all reports, logs, follow-up letters and supplemental documentation for stale check follow-up, voids, and reissues.
Retention Time Period – Original: 6 Fiscal Years + Current Fiscal Year
Definitions
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SinglePoint
Access to bank accounts held at US Bank. With this website you will be able to check balances on accounts, issue stop payment on checks, and retrieve monthly bank statements.
Related resource:
Bank/account statement
A bank statement is a summary of financial transactions which have occurred over a given period of time (monthly) on a bank account.
Check register
A check register is a record of checks written, voided checks, and stop payments placed on checks.
Deposit in transit
Deposit in transit is a replenishment that has been recorded in the check register but has not been received by the bank.
Outstanding check
Checks written and recorded in the check register but have not cleared the bank account and thus, are not on the bank statement.
Stop payment / Payment reversal
Stop payment is an order issued to US Bank via SinglePoint to not pay a specific check written on the account.
Payment reversal is similar to a stop payment – a payment allotted to a reloadable debit card is withdrawn.
Voided check
A voided check is a check written or partially written but then canceled/voided or deleted by the signer of the check before being handed to the payee.
Adjustment
An adjusting entry is needed to balance the check register to the bank statement. Some reasons for the entries would be deposit in transit, check not presented to bank, or stop payments. The UW–Madison bank accounts will not be earning interest or have check printing charges deducted from them.
Contact
Accounting Services
21 N. Park Street
Madison, WI 53715
(608) 263-2450