Module-c community Based Financial Management

A WASHCO that does not undertake bank reconciliation on a 
regular (monthly) basis is at risk. 
In other words does (A+B = C+D) = 0

---

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 

---

Ministry of Water, Irrigation and Electricity