Bank Reconciliation Policy

Section: Human Resource Policies   
Policy Owner: Ignition633 Ministries Human Resources   
Policy Name: Bank Reconciliation Policy   
Origination Date: March 2025

Purpose:
The Bank Reconciliation Policy establishes guidelines and procedures for reconciling all bank accounts maintained by 633Donor Solutions. This policy ensures accuracy in financial reporting, prevents fraud, and maintains proper internal controls over cash management. The reconciliation process helps identify discrepancies, unauthorized transactions, and banking errors in a timely manner, while ensuring compliance with accounting standards and regulatory requirements.

Scope:
This policy applies to all bank accounts owned and operated by 633Donor Solutions and all staff members involved in the reconciliation process. It covers monthly reconciliation procedures, documentation requirements, and review processes for all banking activities including deposits, withdrawals, and electronic transfers. The policy also establishes roles and responsibilities for staff members involved in the reconciliation process and outlines the internal controls necessary to maintain financial integrity.

Policy:

Purpose:
The Bank Reconciliation Policy establishes guidelines and procedures for reconciling all bank accounts maintained by 633Donor Solutions. This policy ensures accuracy in financial reporting, prevents fraud, and maintains proper internal controls over cash management. The reconciliation process helps identify discrepancies, unauthorized transactions, and banking errors in a timely manner, while ensuring compliance with accounting standards and regulatory requirements.

Scope:
This policy applies to all bank accounts owned and operated by 633Donor Solutions and all staff members involved in the reconciliation process. It covers monthly reconciliation procedures, documentation requirements, and review processes for all banking activities including deposits, withdrawals, and electronic transfers. The policy also establishes roles and responsibilities for staff members involved in the reconciliation process and outlines the internal controls necessary to maintain financial integrity.

Responsibilities and Authority
The Caging Supervisor has primary responsibility for overseeing the bank reconciliation process and ensuring compliance with this policy. Caging staff must complete reconciliations within ten business days after the end of each month using bank statements and transaction records. The Executive Director must review and approve all completed reconciliations to ensure segregation of duties and maintain proper financial oversight.

Reconciliation Procedures:
All bank statements must be reconciled to the organization's financial records on a monthly basis, comparing bank balances with internal transaction tracking systems. Outstanding checks, deposits in transit, and other adjusting items must be documented clearly on the reconciliation form with appropriate explanations for each variance. Electronic transfers, automatic payments, and bank fees must be verified against supporting documentation to ensure all transactions are legitimate and properly recorded.

Documentation Requirements:
Completed reconciliations must include the bank statement, reconciliation worksheet showing all adjusting entries, and supporting documentation for any discrepancies identified. All reconciliation documents must be signed and dated by the caging staff member who prepared it and the supervisor who reviewed it to create an audit trail. Electronic copies of all reconciliation documents must be maintained according to the organization's record retention policy, with a minimum retention period of 90 days.

Review and Resolution Process:
The reviewer must examine all reconciliation documents for accuracy, completeness, and compliance with organizational financial procedures within five business days of submission. Any discrepancies, unusual items, or potential fraud indicators must be thoroughly investigated and documented with appropriate corrective actions taken immediately. Unresolved discrepancies exceeding $100 must be reported to the Executive Director within 24 hours of discovery for further investigation and resolution.

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This policy will be reviewed annually and is subject to change. Any changes will be communicated to all employees promptly.   

For any questions or further assistance regarding this policy, employees should contact the HR department at hr@ignition633.org.