Ministry of Water, Irrigation and Electricity
Operation and Maintenance Management Manual
Training Module - D
Community Based Financial
Management
DEMEWOZ CONSULTANCY
49
If it does NOT then there is a problem that needs to be found and/or explained.
The Bank Reconciliation Statement should be made at the end of each month.
In reviewing the Bank Reconciliation
Statement the Chairman should:
1) Refer to the Bank Reconciliation Statement for the previous month, to
ensure that the figures in relation to the amounts present in the bank account
and in the petty cash at the end of the month
are the same as those found
Carried Forward at the start of the month in question.
2) Refer to the Bank Account Statement, and 3 Column Cash Book, to ensure
that all funds received have been taken into consideration.
3) Refer to the VOUCHERS and the 3 Column Cash Book to
ensure that all
transactions have been documented.
4) Physically count the money in the Petty Cash and review the Bank
Statement to ensure that the funds remaining
at the end of the month are
accurately reflected in the Bank Reconciliation Statement.
When the Bank Reconciliation Statement does NOT Balance for whatever reason
say a cheque has been signed but has yet to be cashed then the Chairman MUST
ensure that the discrepancy is adequately explained.
The Bank Reconciliation
Statement Format allows for such explanations.
Review
When should bank reconciliation be undertaken?
Session
Attachments
Attachment 1: Sample Financial Records
