| Introduction Regular reconciliation
of balance sheet and profit & loss accounts is essential
to maintain the integrity of financial information in the
General ledger and control risks.
15.1.1. Risks
Accounts must be reconciled on a regular basis to reduce
the risk of:
- Inaccurate financial reporting
- Undetected fraud/errors.
15.1.2 Controls
Accounts will be reconciled on a periodic basis as determined
by the Director, Financial Services.
The following accounts are critical and will be reconciled
on a monthly basis:
- Bank
- Debtors
- Creditors
- Student Fees
- Payroll
15.1.3 Procedure
15.1.3.1 A register will be maintained by the Director,
Financial Services (or nominee) and will show the names of
personnel responsible for each account and a date to indicate
completion of the reconciliation. The Director, Financial
Services will determine priorities for accounts to be reconciled.
15.1.3.2 The Director, Financial Services
(or nominee) will be responsible for ensuring that a statement
is prepared for each account outlining:
- the purpose of the account;
- the nature of transactions (DR and CR) to be recorded;
- what the balance on the account represents.
15.1.3.3 Reconciliations will be completed not later
than the end of the third working week of the period following
that to which the reconciliation relates and the register
will be updated accordingly.
15.1.3.4 Year end reconciliation statements
will be submitted to the Director, Financial Services or nominee
for verification and inclusion with working papers for submission
to personnel of the Office of the Auditor-General.
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