Bank Account Reconciliation User Guide

Guide to assist staff with the Bank Reconciliation Process at UW–Madison.

• 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.

Access Check Register Worksheet

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 that replenishments are to be completed at least every 90 days or sooner.

Access Bank Reconciliation Worksheet

Bank reconciliations are to be completed every month and submitted to Accounting Services Cash Management and your units Business Office within 30 days of month end.

View Custodian Funds Reconciliation Examples (PDF)

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