Bank Account Reconciliation User Guide

(updated 05/02/17)

Reconciliation Definition
Bank reconciliation is a process that reviews the difference between the bank balance shown on the bank statement, supplied by US Bank or online through SinglePoint, and the corresponding amount shown in the check register at the end of the month.

What is SinglePoint?
Access to bank accounts held at US Bank. With this website you will be able to check balances on accounts, issue stop payment on checks and retrieve monthly bank statements.

What is a Bank Statement?
A bank statement is a summary of financial transactions which have occurred over a given period of time (monthly) on a bank account.

What is a Check Register?
A check register is a record of checks written, voided checks, and stop payments placed on checks.

What is a Deposit in transit?
Deposit in transit is a replenishment that has been recorded in the check register but has not been received by the bank.

What is an Outstanding Check?
Checks that have been written and recorded in the check register but have not cleared the bank account and thus, are not on the bank statement.

What is a Stop Payment?
Stop payment is an order issued to US Bank via SinglePoint to not pay a specific check written on the account.

What is a voided check?
A voided check is a check written or partially written but then canceled/voided or deleted by the signer of the check before being handed to the payee. 

What is an adjustment?
An adjusting entry is needed to balance the check register to the bank statement.  Some reasons for the entries would be deposit in transit, check not presented to bank, or stop payments. The UW-Madison bank accounts will not be earning interest or have check printing charges deducted from them. 

How to write off outstanding checks (over 90 days old)
Place a stop payment on the check through SinglePoint (US Bank website) and add the amount to the check register balance. Stop payment on checks are required to be reported as a reduction to the replenishment request within 30 days after the stop payment has been recorded using the US Bank SinglePoint web application.

Checks older than 1 year old will not need a stop payment through SinglePoint (banks will not accept these checks). The amount will need to be added to your check register balance.

Forms for Reconciliation of Bank Accounts

Bank Statement from US Bank (print from SinglePoint)
Check Register Worksheet
Bank Reconciliation Worksheet

Check Register Instructions

  • When using the check register, complete the top portion with the requested information.
  • The DATE column is the date the check was written.
  • The CHECK # column is for the check number, if applicable.
  • After the check has cleared the bank, place an "X" in the STATUS OF CHECK column. If a stop payment is placed on a check, place an "S" in the STATUS OF CHECK column. If a check is voided, place a "V" in the STATUS OF CHECK column.
  • Record the check recipient or vendor’s name in the PAYEE REFERENCE column. For research participants, we recommend using unique participant numbers or initials to keep names confidential. For vendors, we need their complete name.
  • Reminder: Contingent bank accounts need to submit receipts along with the check register for replenishment.
  • Reminder: Custodian Funds for research participant studies, such as replenishable bank accounts and temporary funds, need to maintain participant logs at site and obtain W-9’s per Policy 103 – Payments to Research Participants.

Bank Reconciliation Worksheet Instructions - Illustration of Instructions

A) Steps to balance your bank account  
A1. Fill out the top portion of the bank reconciliation worksheet.
A2. Enter the month end balance from the bank statement.
A3. Enter any deposits in transit as of the end of the month you are reconciling.
A4. Enter the month end balance from the check register.
A5. Enter all outstanding checks as of the end of the month you are reconciling. Outstanding checks are those that have not cleared.
A6. Enter any outstanding adjustments as of the end of the month you are reconciling.
A7. The Adjusted Bank Statement Balance and the Adjusted Check Register should equal.

B) Steps to balance to the authorized Custodian Fund amount
B1. Enter the checks written through the month you are reconciling that have not been replenished.
B2. Enter the total amount of checks that have a stop payment. Enter the amount as a negative amount. Note that checks 90 days or older are to have a stop payment placed in US Bank SinglePoint.
B3. Enter the current authorized amount.
B4. Difference should be zero.
B5. Total amount of replenishment that needs to be requested from Cash Management to replenish the bank account. Note that replenishments are to be completed at least every 90 days or sooner.

Bank Reconciliations are to be completed every month and submitted to Accounting Services Cash Management and your units Business Office within 30 days of month end.
Custodian Funds Reconciliation Examples

Department Record Retention Responsibilty
Original check payment logs and applicable research payment logs are to be maintained by the department/business units and kept for 6 fiscal years plus the current fiscal year per policy 801 - Records Retention Schedule.

Campus departments have a financial obligation for all voided or uncashed checks for 6 fiscal years plus the current fiscal year per policy 801 - Records Retention Schedule. Records of voided and uncashed checks are maintained by the department/business units.

Bank Statements: All Accounts
Records include all statements and supporting documentation for reconciliation. Also included are bank analysis reports and all documentation relating to signature authority for checks.
Retention Time Period
Original: 6 Fiscal Years + Current Fiscal Year

Stop Payment/Voided/Cancelled Check Records
Records include requests for stop payments and related correspondence and reports. These requests include Custodian/Research and Contingent Fund accounts. Also included is all documentation relating to unpaid items, such as requests for re-issuance of checks, as well as all reports, logs, follow-up letters and supplemental documentation for stale check follow-up, voids, and reissues.
Retention Time Period
Original: 6 Fiscal Years + Current Fiscal Year