Balance Sheet Account Reconciliations

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Balance Sheet Account Reconciliations
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Balance Sheet Accounts

• Balance Sheet Accounts
• Assets - examples
• Cash
• Inventory
• Receivables
• Prepaid expenses
• Capital equipment
• Liabilities examples
• Accounts payable
• Deposits
• Deferred revenue
• Clearing accounts (18xx account codes)
• These account balances carry forward at the end
  of each year

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Reconciliations What and Why

• Detailed identification of asset and liability
  balances
• List of items or transactions making up the
  balance
• Subsystem or manual list
• Proper classification of transactions
• (Operating Unit, Account, and Class)
• Agree subsystem balance to the General Ledger
• Journal entry to clean up improper and old
  balances
• Internal Control
• Provide accurate financial information for
  decision making
• Influences the extent of year-end audit
  procedures

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Financial Services Responsibility

• Financial Services will reconcile the following
  account balances
• University bank accounts
• University receivables
• Investments
• Land, buildings, and equipment
• Accounts Payable
• Accrued payroll, vacation, and benefits
• Loans and notes payable

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Campus Controller Responsibility

• Campus Controllers oversee the reconciliation of
  the following account balances
• Department Bank Accounts
• Department Receivables
• Inventory
• Prepaid Expenses and Other Assets
• Clearing accounts (18xx)
• Accrued Liabilities
• Deposits due to others (excluding Agency fund 47
  account 2300)
• Deferred Revenue

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How to Identify

• Run the Balance Sheet Reconciliation Balances
  BOb query to indentify balances you must
  reconcile
• Navigation Public Folders gt Financial System
  Information gt Reconciliation Support
• Data output is based BOb security
• Run query periodically to confirm you have no
  unexpected balances to reconcile or correct

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How Often

• Account balances should be reconciled monthly
• Copies of August and December reconciliations
  should be sent to Financial Services
• Larry McFerson (larry_mcferson_at_byu.edu, 2-2080)
• Clean-up balances now dont wait

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Training and Support

• A Balance Sheet Reconciliation Guide and Template
  can be found on the Financial Services web page
• Navigation Organizations Services gt Accounting
  gt Financial Accounting system
• Balance Sheet Reconciliation Guide
• Balance Sheet Reconciliation Template
• Questions contact Larry McFerson
• larry_mcferson_at_byu.edu, 2-2080
• Would an annual training class be helpful?

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• Questions?