5C TREASURY MANAGEMENT

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5C TREASURY MANAGEMENT AP RECONCILIATION

• KASBO Conference November 2008

Presenters Vicki Rogers and Lisa Mangum
Jefferson County Public Schools

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AGENDA

• Introductions
• Organization Chart
• Current use of Treasury Management
• Future uses of Treasury Management
• Bank Reconciliation Process
• Initial set up
• What to do before you start
• Step-by-step instructions
• What to do if you dont balance
• Tips and tricks throughout
• Electronic Funds Transfer
• Evaluation

Questions are welcome throughout the presentation.
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ORGANIZATION CHART

• Accounting Services
• 1 Director
• 1 Specialist
• 2 Coordinators (Accounting Accounts Payable)
• 1 Data Management Research Technician
• 1 Bond Technician
• 3 Revenue Clerks
• 10 Accounts Payable Clerks

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USING TREASURY MANAGEMENT

• Participates current uses
• Participates future plans
• On Positive Pay
• Problems with Positive Pay
• Bank currently using

• Presenters current uses
• Presenters future plans
• Presenters Positive Pay experience

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3 STEP INITIAL SET-UP PROCESS
INITIAL SET-UP PORCESS STEP 1
6
Step 2 Add the General Information and the
Routing Transit Number (RTN) then click the
Accounts button.
INITIAL SET-UP PROCESS STEP 2
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123 BANK NAME
INITIAL SET-UP PROCESS STEP 3
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What to do before starting the Bank
Reconciliation process for the VERY FIRST TIME

• Do the 3 step set-up process (See pages 6-8)
• Clear all old Deposits and Adjustments
• This will include every deposit and adjustment
  since checking has been on MUNIS
• (See Clear Adjustments and Deposits) p.27
• We used the last day of the preceding month as
  the clear date for old deposits and adjustments

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What to do EACH MONTH before starting the Bank
Reconciliation process

• Clear all voided checks prior to the end of month
  (See Manually Clear Checks) p.24
• On last day of month print Void Report
• By running Void Report in MUNIS (See Void Report)
  p.14
• We run our report by cash account range in order
  to capture any old outstanding checks -OR-
• By running a Void Report in Crystal
• This report captures all voids for all cash
  accounts
• Void Report
• Doesnt include amounts of checks written and
  voided in same month.
• It will include amounts of checks that were prior
  months outstanding checks.
• When completed, the uncleared column should be
  zero.

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Follow these steps to the Void Report and Check
Register. Click on the A/P RECON.
123 BANK NAME
12345678 GENERAL FUND
STEPS TO VOID REPORT AND CHECK REGISTER - 1
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Click on REPORTS.
STEPS TO VOID REPORT AND CHECK REGISTER - 2
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Click on REPORT OPTIONS.
STEPS TO VOID REPORT AND CHECK REGISTER - 3
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Click on Cash Account Range and check Void
Checks and all items in Include. Use the default
for the Check Range. This will bring up all Void
Checks. Clear all voids. Before running check
register rerun void report to make sure Uncleared
column is zero.
VOID REPORT
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What to do EACH MONTH before starting the Bank
Reconciliation process--continued

• On last day of month-AFTER Accounts Payable has
  posted final cash disbursements for the
  month--print the Check Register including Voids
  (See Check Register) p.16
• We run the Check Register in MUNIS and convert to
  an Excel spreadsheet
• Run Trial Balance for 10-6101 after month has
  closed.
• Debits should be your voids for source code APP
• Credits should be checks written for source code
  APP
• Compare TB totals to balanced Check Register

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To get to this screen, follow screens on pages 11
through 13 -- A/P RECON, REPORTS, then REPORT
OPTIONS. Click Check Date Range and check Void
Checks, Uncleared Checks and all items in
Include. Enter the beginning and ending date of
reconciling month. Click GREEN CHECK MARK.a The
Check Register will come up. We convert this
into an Excel spreadsheet. Compare the totals to
the Trial Balance.
CHECK REGISTER
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CHECK FILE FROM BANK

• Compare the Check File to the actual Bank
  Statement. Should equal.
• With Positive Pay, the corrections are made to
  the bank file but not the bank statement.
• Encoding errors in check amounts
• Encoding errors in check numbers
• Import Bank File into the MUNIS system.

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Each month you will need to ADD A NEW DATA
RECORD. Enter the Bank Code, Bank Account,
Reconciliation Date Range (first day and last day
of reconciling month) and Bank Balance (from the
bank statement). Use drop-down menus. Check for
accuracy. Click GREEN CHECK MARK. a
ADD A NEW DATA RECORD
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This is a sample of the screen after clicking on
the green check mark after adding the new data
record. The figures are factious, but these are
the fields that will have figures. Click on A/P
RECON button on left side. NOTE Read
the bottom of the screen for helpful information.
123 BANK NAME
123456789 GENERAL FUND
A/P RECON
Read for more information
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This is the screen after clicking on the A/P
RECON button. All of these lines will default.
Click the DEFINE button. NOTE Read the bottom
of the screen for helpful information. Also note
that this screen is on top of another screen.
DEFINE AFTER A/P RECON
123456789
Read for more information
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This is the screen after the Define button has
been clicked. Enter the Batch Number. (Design
the batch number to fit your needs. We designed
our numbers so that we could easily identify them
by month and year. EX 53106) Be careful when
entering a new Batch because you cannot change
the number later if you made an error. Enter
Clear Date (last date of reconciling month).
Cash Account defaults. Check Bank Table. The
Bank table line will not change automatically,
you have to change the month and/or year if
needed. It will default to the previous months
info. Insert the current year and month. Click
GREEN CHECK MARK. a
When using Bank File
CLEAR CHECKS USING BANK FILE
123456789
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After Clicking on Green Check Mark

• Pop-Up screen Continue with this record set
  containing XXXXX checks?
• This number should agree with the number of
  cleared checks on the bank statement.
• Differences could be bank encoding errors
• Check numbers
• Check amounts
• Could also be paid stop payments. (Our bank
  clears all checks first, then makes corrections.)
• Click Yes if correct
• Click OUTPUT/POST button

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Use Check Range when manually clearing checks.
Enter check number in both fields unless all
checks are sequential, then enter first number
and last number. All other information is
entered the same way as for clearing using Bank
File. Click GREEN CHECK MARK. a Note at bottom of
screen will indicate of checks found. Enter
next check number and green check mark until all
checks are entered. This will save paper when you
print. Then click Output/Post. Note This is
the only way to clear EFTs. The bank does not
send a file of EFTs.
When clearing manually
MANUALLY CLEAR CHECKS
123456789
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Pop-up screen Do you wish to post? Click YES.
POST CHECK RECONCILIATION?
123456789
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Pop-up screen Print to File? We dont print
the file if using the Bank File because it would
be too big. We spool to file and then never
print. You could print if you want. We do print
the file when we Manually Clear.
PRINT TO FILE?
123456789
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This is the screen you want. Click ADJ/DEP RECON
button.
123 BANK NAME
123456789 GENERAL FUND
CLEAR ADJUSTMENTS AND DEPOSITS
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Click on CREATE ITEMS. You must click create.
On almost all other screens you can Define to
achieve your goal-NOT HERE! Then click on GREEN
CHECK MARK. a
CREATE ITEMS
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Pop-up box Reviewing XXXX records for
10-6101-Continue? Click YES.
123 BANK NAME
123456789 GENERAL FUND
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Pop-up box XXXX records created. Processing
complete Click Continue.
123 BANK NAME
123456789 GENERAL FUND
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Click on CLEAR ITEMS. Click on GREEN CHECK MARK.
a
CLEAR ITEMS
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Bank Code and Bank Account should default. TAB
through to the Clear Date and enter the LAST day
of the month you are reconciling. Date Range
Enter FIRST day of month and LAST day of
reconciling month. Item Type has a drop-down
menu Adjustments, Deposits or Blank which
brings up both. Status has drop-down menu
Cleared or Outstanding. Choose Outstanding.
Click GREEN CHECK MARK. a
123 BANK NAME
123456789 GENERAL FUND
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Adjustment/Deposit Recon

• Adjustments equal wires
• Other debits and credits
• Journal Entries
• Correcting errors
• Bank charges
• We leave the Item blank so both Adjustments and
  Deposits come up on same page.
• Adjustments are at the top of page
• Deposits at the bottom
• You can do one at a time.

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Verify deposits and adjustments from this screen.
You can CLEAR ALL. We use the TOGGLE CLRD. We
verify each item individually against the bank
statement. If you TOGGLE CLRD in error, just
TOGGLE CLRD again and it will unclear. You can
also use the arrow keys to maneuver through the
file. When finished, click the GREEN CHECK MARK.
a
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Pop-up screen Accept changes and exit screen?
Click YES.
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You may get the continuous HOUR GLASS again.
Minimize current screen, close screen in back and
maximize the screen you need. Click the
RECALCULATE button. Pop-up box appears
Recalculate will overwrite Click YES. Note
Anytime someone makes an entry to 6101 in a prior
month, the G.L. Book Ledger will not change on
the bank reconciliation Treasury Management until
the RECALCULATE button is clicked.
123 BANK NAME
123456789 GENERAL FUND
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At this point, you have cleared all checks,
deposits and adjustments for the month. The
RECONCILIATION DIFFERENCE should be zero!!! If
you are not on Positive Pay, your difference
should be your encoding errors that have not been
corrected and bank corrections from prior months
encoding errors. You can explain your
differences in the Notes folder.
123 BANK NAME
123456789 GENERAL FUND
BALANCED BANK RECONCILIATION
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What to do if you DONT balance?

• Notice that there is an open file next to
• AP Checks
• Deposits
• Adjustments
• Outstanding AP Checks
• If you click on the open file it will show you
  every item that makes up that total.
• Compare these items to the bank statement and
  your list of outstanding checks.
• Other possible problems
• Improper voids (always void invoice thats
  attached to check)
• J/E Effective Date and Year/Period not matching
• Encoding errors (check numbers and check amounts)
• Bank corrections
• Other help
• Run Utilities
• Compare Trial Balance to known items (wires, J/E,
  APP, etc.) and locate the differences (INI, J/E
  with code error, etc.).