POLICY

A. Purpose

The purpose of this policy is to define the requirements for balance sheet account reconciliations that accurately reflect financial transactions at Lawrence Berkeley National Laboratory (Berkeley Lab) and to ensure each balance sheet account is reconciled accurately, completely, and in a timely manner.

B. Persons Affected

Office of the Chief Financial Officer (OCFO) Controller's Office staff responsible for preparing and reviewing balance sheet account reconciliations

C. Exceptions

None

D. Policy Statement

1. An account is considered reconciled when documentation is provided that supports the underlying asset or liability position for a given account as of the reconciliation date.
2. The account reconciliation compares a general ledger account balance with supporting documentation, which may include a detail-level subledger, a bank statement, an aging report, or a spreadsheet.
3. Both the general ledger balance and the subledger balance should be reconciled to an adjusted balance. The reconciliation will identify the sources of any differences between the general ledger and the subledger's balances and the reconciler's plan for eliminating the differences.
4. An analysis that recaps the general ledger activity does not constitute reconciliation and is not appropriate documentation.
5. Each account will be reconciled based on the frequency denoted on the Reconciliation Tracking Log.
6. Each balance sheet account will be assigned to an account reconciliation owner and will be reconciled per its assigned frequency (e.g., monthly or quarterly) and due date, based on risk and materiality factors related to account activity and/or amount. The reconciliation owner has primary responsibility for accuracy, completeness, and timeliness of the reconciliation.
7. The reconciliation will conform to the standards prescribed by the Desk Guide, Balance Sheet Account Reconciliations, including:
   1. General information on the reconciliation, including the account name, account number, brief description as to how the account is used, reconciliation period, account reconciliation owner, reviewer, and dates of completion and review.
   2. The general ledger and subsidiary ledger balances at the end of the month, including the source of the supporting documentation/subledger.
   3. Clear identification and resolution of each reconciling item, including expected date of resolution, responsible individual, and supporting documentation, as appropriate.
8. Additional information on the identification, documentation, and resolution of reconciling items can be found in the Desk Guide, Balance Sheet Account Reconciliations.
9. Each balance sheet account will also be assigned a reviewer at the Principal Accountant or Manager level. The reviewer will have responsibility to review all aspects of the reconciliation and verify its accuracy, completeness, and timeliness. In addition, the reviewer will ensure that the reconciliation owner is addressing and resolving reconciling items in an appropriate and timely manner.

E. Roles and Responsibilities

F. Definitions/Acronyms

None

G. Recordkeeping Requirements

None

H. Implementing Documents

I. Contact Information

General Accounting Manager, OCFO
Controller, Acting, OCFO

J. Revision History

DOCUMENT INFORMATION

Source Requirements Documents

• DOE O 534.1B, Accounting
• DOE Accounting Handbook, Chapter 21, Financial Closeout

Implementing Documents