RECONCILIATIONSCounty Department of Human Services

In accounting, Reconciliation refers to the process of ensuring that two sets of records, usually the balances of two accounts, are in agreement.

Reconciliations are a part of daily life at Human Services!! We are always reconciling something!! This will not be news to anyone who works in Human Services accounting!

WHAT IS RECONCILIATION?

To ensure the reliability of County financial records, reconciliations must be performed for all balance sheet accounts on a regular and ongoing basis.

Check to be sure all accounts are being reconciled, including any new accounts.

Documentation supporting the account balance should be included with the reconciliation.

A good reconciliation process improves the accuracy of the financial reporting function.

HELPFUL HINTS

WHY DO WE NEED TO RECONCILE?

1. The main reason is two sets of accounting systems are used: CFMS for expenditures and revenue reporting

at the state level. A full set of accounting books at the County

level.

2. Maintaining correct entries and correct coding on both systems is essential.

WHY RECONCILE?

3. To keep a close watch on the accuracy of county accounting records to CFMS records to determine correct monthly settlement amounts.

4. Also to determine the accuracy of various accounts within the county set of accounting records.

WHY RECONCILE? (CONTINUED)

5. Reconciling financial accounts with your accounting records will help you identify errors, irregularities and needed adjustments.

WHY RECONCILE? (CONTINUED)

WHAT DO WE NEED TO RECONCILE?

Cash Trust Accounts Check Logs Over-the-Counter Receipts EBT Cards Gift Cards Computer Inventory Deferred Revenue Rent

ITEMS RECONCILED WITHIN COUNTY

ITEMS RECONCILED WITHIN COUNTY

Cash Trust Accounts

All cash accounts are to be reconciled each month within 30 days of the end of each month.A copy of the December 31 cash recon report shall be submitted to CDHS Audit Division by January 31 and June 30 cash recon by July 31.

Trust accounts are primarily set up for two reasons – foster children who receive a monthly payment from Social Security or receive a large back payment and at risk adults who have become wards of the County. The Social Security Administration requires these funds be kept in collective trust account, separate from County funds. Monthly, these accounts must be reconciled.

ITEMS RECONCILED WITHIN COUNTY

Check Logs Over-the-Counter Receipts

The check received log is reconciled to the check deposited log monthly. This ensures that all checks received have been deposited.

This is to verify the county CSE over the counter payment log matches the MM-652 OTC FSR payment report. Using this report you should be able to match all deposit totals to the OTC payment log.

Monthly Reconciliations are required as outlined in CFR 274.5.

A physical count of monthly bulk cards should be conducted on the first day of every month.

Newly received boxes and opened boxes should be recorded on the Bulk EBT Card Inventory Report.

The reconciliation of bulk to working card stock should also be completed monthly, comparing the working card stock to the daily log.

Report is due to state by the 15th of the next month.

ITEMS RECONCILED WITHIN COUNTY: EBT CARDS

The gift card(s) given out are logged by gift card number, date checked out to caseworker, caseworker signature, amount of gift card, and client case name.

The caseworker has 5 business days to give the gift card out to the client and turn in the client’s signature verifying they received the gift card(s).

At the end of the month all gift cards are counted. The totals are checked against the previous months ending total to determine how many gift cards were given out during the month.

The number of gift cards given out is reconciled with the gift card log book. This ensures that the gift cards recorded as given out match the total number of gift cards left at the end of the month.

ITEMS RECONCILED WITHIN COUNTY: GIFT CARDS

A physical inventory is taken every 6 months to verify computers are in place. Changes and updates are compared to inventory list and reconciled accordingly.

ITEMS RECONCILED WITHIN COUNTY:

ITEMS RECONCILED WITHIN COUNTY

Deferred Revenue Rent

Look for expenditures for any of the deferred categories, then book an entry to move the deferred revenue to earned revenue.

Balance the account.

Reconcile and correct dollar amounts any moves or changes during year to maintain proper costs charged to each program area.

Expenditures and Revenues Employee Payroll Accounts Receivable General Ledger Review Purchasing Cards Case Services and Core SEA Yearly Reconciliations

ITEMS RECONCILED COUNTY TO STATE

ITEMS RECONCILED COUNTY TO STATE

Expenditures and Revenues

Employee Payroll

Reconcile the CFMS monthly County Settlement Report to County records.

Determine any discrepancies and research to find correction needed.

There are four components to reconciling payroll:◦ Ensuring all employees are

coded correctly in both the County accounting system and CFMS.

◦ Ensuring the payroll balances by employee between County accounting system & CFMS/CEDS.

◦ Uploading the payroll files to CFMS/CEDS.

◦ Ensuring the payroll GL accounts balance.

ITEMS RECONCILED COUNTY TO STATE

Accounts Receivable General Ledger Review

Compare County receipts to CBMS, CW, CC and LEAP to CFMS totals.

Reconcile all County expenditure accounts to the CFMS E&R report.

Research differences.

ITEMS RECONCILED COUNTY TO STATE

Purchasing Cards (PCards)

Case Services and Core SEA

Reconciliation of PCards is verifying that the same purchases which were put into the county’s accounting system are the same as were entered into CFMS, reconciled line by line, monthly.

Expenditures for these services are entered directly to Trails. Balance the account to amount in Trails monthly.

FFA◦ Federal Financial Assistance report from CFMS to

County records. EBT

◦ Electronic Benefits Transaction report SEFA

◦ Schedule of Expenditures of Federal Awards

ITEMS RECONCILED COUNTY TO STATE:YEARLY RECONCILIATIONS

QUESTIONS?

Ta dah! Now go forth and reconcile until all the numbers work out!