FIN 03-20

Reclamation Manual
Directives and Standards

20 Internal Control Standards
20 Accounting Standards
100 Reconciliations

Subject(B): Reconciliation of Standard General Ledger Accounts

Purpose: To assign periodic manual reconciliation and validation responsibilities to assure accuracy and consistency of Reclamation's accounting data.

Authority: General Accounting Office (GAO) Guidance for Federal Agencies

Vol. I Treasury Financial Manual, Part 2-3175 - Integrating Accounting Results

Contact: General Accounting and Technical Analysis Group (GATAG), Finance and Accounting Services (FAS), by calling (303) 445-3423.

1. Subsidiary Ledgers.

The subsidiary ledgers originate form the general journal component of the Federal Financial System (FFS) in one of the following types of BOR-custom reports.

2. Responsibilities.

The General Accounting Team, FAS, is responsible for the following reconciliations.

The Cost Accounting Team, FAS, is responsible for the following reconciliations.

The Operations Group, FAS, is responsible for verifying that a source document exists and matches the transactions on the "open items" or other applicable FFS subsidiary listing.

In addition, the originating office (through the Regional Financial Manager) is responsible for reviewing unliquidated obligations at least once a year to reasonably assure itself that all and only those transactions meeting the criteria of legally valid obligations have been included in reports of obligations.;

The originating office (in cooperation with the Regional Finance Officer) is responsible for verification of charges to cost account structures. Regional Finance Officers also coordinate timely adjustments to the cost accounts to reflect any new items found or losses of equipment identifies during cyclical physical inventories performed by the property management function.

3. Frequency.

When applicable, minimum frequency criteria required by a central regulatory agency, or the Department of the Interior, shall be noted in the internal procedure documentation for reconciliations and/or validations. More frequent validations to source documents, e.g., monthly, quarterly, semi-annually, or monthly during the last quarter of the fiscal year, are discretionary for the Responsible Office. Discretionary frequency should be determined by considering such factors as the frequency the account balance is reportable to a regulatory agency, the volume of transactions, existing internal controls, the dollar materiality, etc. Discretionary frequency should not exceed a one-year time frame unless approved by the Leader, FAS.5

4. Documentation.

Procedures to achieve the reconciliations, validations, or confirmations, as well as the actual results, should be documented and available for review and/or audit purposes.

5. Status Reports.

The General Accounting and Technical Analysis Group is responsible for submission of semi-annual oversight reports to the FAS Leader concerning the status of the assigned reconciliations performed within FAS. (See Attachments.)

The Regional Finance Offices are responsible for reporting the status of Regional reconciliations, validations and confirmations to the General Accounting and Technical Analysis Group by November 15th each year.

6. Related References.

7. Attachments.

A. Sample Report of Reconciliations - FAS

B. Sample Report of Reconciliations - Regional Offices

1. The OIG's acceptance requires that the Resource Information System (maintained by the Program Analysis Office, Denver, CO) be kept current with related information necessary to identify the location, acquisition date, salvage value, etc. of the real property asset.

2. This reconciliation will be phased out during FY1997 as the Reclamation Enterprise Maintenance management System (REMMS) replaces the Stores System. Under REMMS, all supplies and materials are charged to distributive accounts and expensed each month via the cost allocation process.

3. GAO's Manual for Guidance of Federal Agencies, Title 7 - Fiscal Procedures, Chapter 3.8A - Obligation Reports and Certifications.

4. A lower standard of accuracy than "reconciliation."

5. Cyclical reviews, e.g., 25% each quarter, meet the one-year time frame criteria if a 100% review is accomplished within a fiscal year.

(021) 4/1/96