Reconciliation Procedures

We want you to know the importance of timeliness and accuracy in performing your reconciling and clearing duties.

You, the reconciler, are assuring that your portion of the Fund Balance with Treasury is properly reported on your financial reports and to Treasury's General Ledger.

This website contains the methods that you should use in reconciling Deposit, Undistributed and Check Issue differences effectively and easily. We'll show you how and where to get the information you need to clear your differences.

The validity of the classified receipt and outlay data published in the financial reports of the U.S. Government by the Bureau of the Fiscal Service (Fiscal Service) depends on the accuracy of the monthly Statement of Transaction (FMS-224, FMS 1220 and SF 1221) and Statement of Accountability (SF-1218 and FMS 1219) submitted by all departments and agencies.

The purpose of reconciling is to ensure the accuracy and timeliness of deposit and disbursement data reflected in the Fund Balance with Treasury.

Internal control systems ensure that all funds are recorded and accounted for correctly. You should always be suspicious of problems that won't go away. You are the "first alert" when indicators of fraud are present.

Your concerns should be relayed to a supervisor who, after appropriate review, will determine whether or not the office of Inspector General (OIG) should be involved. Your OIG routinely examines the internal control system for faults and vulnerabilities.

Agencies should identify and clear differences within 2 months of occurrence. During the reconciliation process, be aware of conditions creating your differences. Keep records of the causes of differences and analyze monthly to see if the same conditions are recurring; i.e.,

• differences between months,
• missed bank-cutoff times,
• failure to get copies of the documents,
• bank-processing errors,
• your agency reporting/processing errors, or
• Treasury errors.

At the close of each accounting month, a Statement of Accountability (SOA) and/or Statement of Transactions (SOT) is transmitted to the Fiscal Service through the Classifications, Transactions and Accountability (CTA) Module in the Central Accounting and Reporting System (CARS) for transactions (receipts and outlays) that occurred during the month.

If no transactions occurred, submit a "zero activity" report. You may refer to the Treasury Financial Manual (I TFM 2-3100 or I TFM 2-3300) for detailed information on preparing the SOA or SOT.

8 digit Agency Location Codes (ALCs)

Agencies that use Regional Finance Centers to issue checks (8 digit ALC's) report their deposit activity monthly to Treasury/Fiscal Service using an FMS 224 Statement of Transactions.

Agencies should maintain transaction logs as a part of their internal accounting system. The transaction log for deposits should contain detailed information that relates to the SF 215 (Deposit Ticket ) and the SF 5515 (Debit Voucher). The totals of these logs for each month should agree with the totals reported on your SOT or SOA.

Agencies that submit an FMS 224 classify the deposit/debit voucher transactions to the TAS in Section I of the FMS 224. They report the total of deposit/debit voucher transactions in Section II, line 2, "DEDUCT: Collections Received This Month (Net) and Classified in Section I," and in Section III, line 3, "DEDUCT: Deposits Presented or Mailed to Bank in:" by accounting month.

Agencies also report all SF 215: Deposit Ticket, and SF 5515: Debit Voucher, data processed by Federal Reserve Banks (FRBs) and other financial institutions in this manner. The SF 5515 is used to adjust deposit data reported on the SF 215 and to report Automated Clearing House (ACH) payments made by the banks. The Collection Information Repository (CIR) includes ACH payments for agencies.

Fiscal Service compares the total on the FMS 224 (Section III, line 3) with deposit/debit voucher data processed through CIR. It generates an FMS 6652 "Statement of Differences - Deposit Transactions" for deposit/debit voucher transactions for each ALC whenever there is a discrepancy. (See TFM Volume I, Part 2, Chapter 3300, Section 3365.) Also, agencies may call the Cash Accounting Division for assistance in resolving these discrepancies. If previous reporting was incorrect, agencies correct discrepancies on their next FMS 224.

A copy of the FMS-6652 is available GOALS/IAS as well as the DT/DV Detail Support Listing.

If there is no difference, you will not receive an FMS-6652, but a copy of the DT/DV Detail Support Listing will be available to you for your records online in GOALS.

To identify items that are causing a difference, compare the documents listed on the DT/DV Support Listings to the documents listed on the transaction logs prepared by your agency.

Prepare a list of all unmatched items. The total unmatched items should agree with your Statement of Difference for that audit month. The unmatched items should be researched and resolved within 2 months of occurrence. Initiate and/or report any necessary adjustments to resolve the discrepancy.

4 digit Agency Location Codes

Agencies that have authority to issue Treasury checks (4 digit ALC's) have their own disbursing authority (NTDOs). They report their deposit activity monthly to Treasury/Fiscal Service using the SOA and SOT.

NTDOs report the total of their deposit/debit voucher transactions on their SOAs (line 4.20, "Deposits Presented or Mailed to Bank"). Fiscal Service compares the amount of the deposits/debit vouchers reported by an agency on the SOA with the amounts on the SF 215/5515 documents reported by the FRBs and other financial institutions, recorded in CIR.

Financial institutions use the SF 5515 to adjust SF 215 deposits and to document Disbursing Officers (DO's) electronic funds transfer (EFT) payments. Although the DO EFT payment is a disbursement for the agency, that activity is netted on the SOA (line 4.20).

Agencies receive an Statement of Difference for Deposits whenever there is a discrepancy between the bank data and the agency's SOA report (line 4.20).

Prepare a list of all unmatched items. The total unmatched items should agree with your Statement of Difference for that audit month. The unmatched items should be researched and resolved within 2 months of occurrence. Initiate and/or report any necessary adjustments to resolve the discrepancy.

Problem - Items on agency listing but not on Treasury Support Listing.
Solution - Possible causes for this discrepancy is that your bank entered the wrong Agency Location Code (ALC) into the CIR or your bank failed to enter the document into the CIR altogether. You will have to contact your bank for correction.

Problem - Item on Treasury Listing but not on agency listing.
Solution - If you have a copy of the document, report it on your next SOT or SOA as a prior period adjustment. If you do not have a copy of the document, contact the bank for clarification. The bank may have entered a wrong ALC.

Problem - Agency reported document in the wrong month.
Solution - Adjust the amount to the correct month on the SOT.

Problem - Bank reported document in the wrong month.
Solution - Contact the bank for a correction.

Problem - Incorrect amount reported on Treasury Support Listing.
Solution - Contact your bank for a correction.

Problem - Incorrect amount reported by agency.
Solution - Report the difference on your SOT or SOA.

Problem - Agency reported deposit activity as net disbursements.
Solution - Verify that there is an offsetting difference in the SOD (Statement of Differences) - Disbursements. On the SOT, adjust between Section II, (Lines 1 and 2) and Section III, (Lines 2 and 3). On the SOA, adjust between Line 2.80 and Line 4.20. Be sure to use the appropriate month.

8 digit Agency Location Codes (ALC)

Agencies that submit an FMS 224 classify their disbursement transactions in Section I of the FMS 224 to a TAS and, by accounting month, in Section II, line 1, "ADD: Payment Transactions (Net) Classified in Section I, Accomplished by Disbursing Office." Fiscal Service compares the disbursement data reported on the FMS 224 (Section II, line 1) with the following:

• Total disbursements reported by the RFC for that ALC via the GWA System TDO Payments module. (See TFM Volume I, Part 2, Chapter 3300, Section 3355.)
• IPAC transactions processed through GOALS II.

The TDO data includes check issue amounts and check cancellation items (SF 1098: Schedule of Canceled or Undelivered Checks). The interagency billing/collection activity is processed through IPAC, and IPAC provides the detail.

Fiscal Service matches the disbursement data using the amount and transaction accomplished date. When there are differences in disbursing transaction totals, Fiscal Service prepares an SOD for Disbursements in GOALS II. The agency must advise the RFC to make a correction if the difference is caused by an RFC error. It contacts the billing agency to request correction of IPAC errors. Also, agencies may call the Cashing Accounting Division (CAD) for assistance in resolving these discrepancies. If previous reporting was incorrect, agencies correct discrepancies on their next FMS 224.

The total of the unmatched items should agree to your Statement of Difference. Research each item to determine the reason for the discrepancy. Action should be taken to clear the difference within 2 months of occurrence. Initiate and/or report any necessary adjustments to resolve the discrepancy.

Common reasons for differences

Problem - Treasury reported IPAC bills but the agency did not.
Solution - Refer to the IPAC contact list available from GOALS II. Based on the Disbursing Office (DO) symbol, obtain a contact name and phone number. (CAD can assist agencies in obtaining contact names and phone numbers.) Contact that billing agency for supporting documentation. If it is a legitimate bill, the agency reports it on its next SOT (Section I and Section II, line 1) as a prior-period adjustment. If it is not a legitimate bill, charge it back to the agency. The agency must report the bill and the chargeback on its SOT for the month accomplished.

Problem - The agency reported IPAC bills but Treasury did not.
Solution - Reverse the reporting on the agency's SOT. Contact the billing agency for more information.

Problem - The amount reported to Treasury by the RFC does not agree with the amount reported by the agency.
Solution - Contact the RFC to adjust its reporting error. If the agency posted the wrong amount, adjust the agency records and report the difference on the SOT.

Problem - An item is on the Treasury listing (TDO Payments) but not on the agency listing.
Solution - Contact the RFC for any missing schedules (SF 1098: Schedule of Canceled or Undelivered Checks, etc.). Report these schedules on the SOT (Section I and Section II, line 1) for the proper accounting month.

Problem - Agency reported deposit activity as net disbursements.
Solution - Verify that there is an offsetting difference on the SOD for Deposits. On the SOT, adjust between Section II (lines 1 and 2) and Section III (lines 2 and 3). Be sure to use the appropriate accounting month.

4 digit Agency Location Codes

NTDOs report IPAC interagency billing activity on SOA (line 2.80, "IPAC Payments and Collections"). Fiscal Service compares the agency reported IPAC totals with the IPAC schedules produced by GOALS II.

If there are any discrepancies, Fiscal Service generates an SOD for Disbursements for the NTDO. NTDOs should access and review IPAC transactions regularly to verify that charges or credits made by a billing agency are correct (see TFM Volume I, Part 2, Chapter 2500, subsection 2525.70). Because NTDOs issue their own checks, the SOD for Disbursements does not include NTDO check disbursement activity.

Prepare a listing of all unmatched items. Research each item to determine the reason for the discrepancy. Action should be taken to clear the differences within 2 months of occurrence. Initiate and/or report any necessary adjustments to resolve the discrepancy.

Common reasons for differences

Problem - Treasury reported IPAC bills but the agency did not.
Solution - Refer to the IPAC contact list obtained from GOALS II. Based on the DO symbol, obtain a contact name and phone number from the list. Also, CAD can assist agencies in obtaining contact names and phone numbers. Contact that billing agency for supporting documentation. If it is a legitimate bill, the agency reports it on its next SOA (Section I, line 2.80; and Section II, Part A, column 3) as a prior-period adjustment. Also report it on the agency's SOT. If it is not a legitimate bill, charge it back to the agency. Report both the bill and the charge back on the agency's SOA for the month accomplished.

Problem - The agency reported IPAC bills but Treasury did not.
Solution - Reverse the amount from the agency's SOA and SOT. Contact the billing agency for more information.

Problem - The agency reported deposit activity as an IPAC transaction.
Solution - Verify that there is an offsetting difference on the SOD for Deposits. On the SOA, adjust between line 2.80 and line 4.20. Be sure to use the appropriate accounting month.

Check issue transmittals reported to Treasury through tele-communications are captured in the Treasury Check Information System (TCIS), (see TFM Volume I, Part 4, Chapter 6000, Section 6025, and TFM Volume I, Part 4, Chapter 6500). Every month, Fiscal Service sends the Comparison of Check Issue—Detail report to the designated central office for reconciliation.

When an issue amount reported to TCIS differs from the amount printed on the check presented for payment by an FRB, with no obvious signs of forgery, Fiscal Service adjusts the reported issue amount to agree with the amount printed on the check. This adjusting entry changes the issue amount recorded in TCIS. As a result of this action, TCIS generates an FMS 5206: Advice of Check Issue Discrepancy. Fiscal Service forwards the FMS 5206 along with a copy of the paid check to the DO.

If the DO identifies a discrepancy in its issue reporting to TCIS and an FMS 5206 is not received, the DO must notify the Operations Support and Control Branch in writing to request a reporting adjustment. Operations Support and Control Branch will issue a Notification of Check Issue Correction—D.O. Requested for each adjusted check. The DO must forward all adjustment requests to Operations Support and Control Branch within a 1-year timeframe. Once a limited payability cancellation has occurred, Operations Support and Control Branch cannot process the requested adjustment.

Fiscal Service also provides a monthly listing of checks issued from TCIS's database, the TCIS 72 Report, to each NTDO and RFC headquarters office. The 72 Report identifies block numbers for checks processed. It includes the FMS 5206 adjustments initiated by Treasury and all adjustments requested by the DO. This report assists agencies in the reconciliation of unmatched items identified on the Comparison of Check Issue—Detail Report.

Analyze the detail of the transaction log and prepare a listing of unmatched items. Research each item to determine the reason for the discrepancy.

Unmatched items should be researched and cleared within in 2 months of occurrence. Initiate and/or report any necessary adjustments to resolve the discrepancy.

Common reasons for differences

Problem - Treasury reported FMS 5206 but the agency did not.
Solution - Contact Treasury's Operations Support and Control Branch if the agency has not received a copy of the FMS 5206. Report the valid FMS 5206 on the SOA (Section I, Part A, line 2.11) and SOT.

Problem - Void checks were reported on Level 8 magnetic tape with dollar amounts, or incorrect dollar amounts were discovered after limited payability credit.
Solution - If Treasury's Operations Support and Control Branch issued a limited payability cancellation credit through IPAC, report the credit on the SOT (Section I, Part A) and SOA (line 2.80).

Then prepare and report a journal voucher to report the amount on the SOA (lines 2.12 and 4.10). Charge the account credited from the IPAC documents or SOT.

Problem - Checks discovered before receipt of limited payability cancellation credits are reported to TCIS for an incorrect dollar amount or for a dollar amount when they should have been reported as void checks.
Solution - If an FMS 5206 has not been received, notify Operations Support and Control Branch in writing and request an adjustment to the amount reported to TCIS. Operations Support and Control Branch will issue a Notification of Check Issue Correction—D.O. Requested for each adjusted check. Forward all issue adjustment requests to Operations Support and Control Branch within a 1-year timeframe. Once a limited payability cancellation has occurred, Operations Support and Control Branch cannot process the requested adjustment. (See the above solution for action required.)

Problem - The agency incorrectly reported checks on SF 1219 (line 2.10).
Solution - Report the difference between the SOA and the check issue transmittals reported to Treasury on Level 8 magnetic tapes or through telecommunications on the next SOA (line 2.12).

Problem - Treasury has not processed check issue transmittals reported on Level 8 magnetic tapes or through telecommunications.
Solution - Contact the Technical Support Division, Fiscal Service, at 202-874-7732.

Problem - Treasury has not processed the SOA.
Solution - Contact the agency office that submits the SOA.

1. ASAP payments are reported as a disbursement in section II of the FMS 224.
2. Report Federal Agency Taxes on the SOT (Section III) as a reduction in collection activity.
3. CAD can prepare journal voucher entries to adjust small difference amounts of $50 or less for deposit/debit voucher items that have been outstanding for 6 months. Agencies that reconcile their small difference amounts should advise CAD to exempt them from Treasury's small difference writeoff process.
4. Correct between month differences by a date change adjustment reported by the bank or RFC or report with the same accounting date as the SOT or SOA.
5. The SOD for Deposits reflects unmatched transactions for activity accomplished at a financial institution (for example, SF 215, SF 5515, ASAP, and Federal Agency Taxes). The SOD is based on the date the transaction is presented or mailed (voucher date).
6. The SOD for Disbursements reflects unmatched transactions for IPAC, Electronic Data Interchange Payments and Collections, and RFC transactions (for example, SF 1166: Voucher and Schedule of Payments; SF 1098: Schedule of Canceled or Undelivered Checks, etc.). The SOD is based on the accomplished date recorded by Treasury.
7. Reconcile differences. Do not adjust agency records to Treasury data. Do not make unsupported entries on the SOT or SOA.
8. Fiscal Service on-site visits are available. Contact CAD.
9. Every ALC has a point of contact in CAD to assist in reconciliation efforts.

• Cash Accounting Division
  202-874-9833
• Operations Support and Control Branch
  215-516-8067
• Collection Information Repository System Owner
  202-874-5278
• GOALS II System Owner
  202-874-7732