This policy is designed to establish techniques and procedures for the proper comparison of financial records, such as transactions, accounts, and statements, to ensure accuracy, consistency, and integrity in GBPLD’s financial data. This policy establishes internal controls to effectively and efficiently minimize the risks associated with financial reconciliation practices, reduce the risks of fraud and costly errors, and protect the assets of the GBPLD. This policy applies to all employees, officers, and contractors doing business with GBPLD.
Requirements
- GBPLD will perform financial reconciliation in accordance with generally accepted accounting principles (GAAP) to provide accuracy and consistency in financial accounts.
- GBPLD will ensure written procedures exist for all applicable financial reconciliation activities, including but not limited to bank reconciliation, account reconciliation, invoice reconciliation, and balance sheet reconciliation.
- GBPLD will ensure responsibilities for financial reconciliation are segregated from collections and general ledger posting.
- Reconciliations will be performed consistently, and documentation will be maintained for audit purposes.
- GBPLD will ensure accurate, current, and complete disclosure of the financial results of each Federal award or program in accordance with the reporting requirements set forth in §§ 200.328 and 200.329.
- To the extent possible, GBPLD will complete reconciliations prior to the certification of financial statements or financial reports. When it is not possible, reconciliations should be completed as soon as practicable after the issuance of statements or reports.
Responsibilities
- The Director of Finance will create written procedures for all forms of reconciliation that at a minimum address comparing internal records with various statements or reports, identifying and recording discrepancies, and resolving errors and balancing records.
- Written procedures will be reviewed and approved by the Director of Finance on an annual basis. They are also responsible for enforcing the segregation of duties and recommending improvements to the reconciliation process.
- The Director of Finance will complete reconciliations quarterly, monthly, or more frequently as needed, addressing specific aspects of GBPLD's financial activities. They are also responsible for maintaining appropriate documentation, escalating problems or variances with reconciliations, and providing justifications for material discrepancies.
(8/2025)