YEAR END PROCEDURES ACCOUNT RECONCILIATION Executive Training Online

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YEAR END PROCEDURES ACCOUNT RECONCILIATION Executive Training Online Copyright 2021 Indigenous Leadership Development Institute,

YEAR END PROCEDURES ACCOUNT RECONCILIATION Executive Training Online Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved.

ASSETS AND LIABILITIES Ø Assets are what we own: bank account, amounts receivable, land

ASSETS AND LIABILITIES Ø Assets are what we own: bank account, amounts receivable, land buildings, loans to other organizations Ø Liabilities are what we owe (debt): bank line of credit, amounts payable to vendors, bank loans and amounts owed to other organizations Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved. 2

YEAR-END PROCEDURES FOR ASSETS AND LIABILITIES Ø Two main procedures: 1. Agreeing balance to

YEAR-END PROCEDURES FOR ASSETS AND LIABILITIES Ø Two main procedures: 1. Agreeing balance to an external document. Example: bank loan 2. Account reconciliation – matching transaction by transaction to an external statement. Example: operating bank account Ø Account reconciliation is used when there can be timing differences between our records and the external source records. Example is bank statements – we may show payments in our records, but they may not be on the bank statements until cheques are cashed 3 Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved.

ACCOUNT RECONCILIATION Ø Important procedure to ensure records are correct. Ø Used for: §

ACCOUNT RECONCILIATION Ø Important procedure to ensure records are correct. Ø Used for: § Bank accounts § Credit card accounts § Intercompany/due to/from accounts Ø Technique 1. Matching transaction by transaction 2. Recording missing transactions 3. Reviewing unmatched transactions (referred to as outstanding) and adjusting the ones we no longer need Ø Examples Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved. 4

BANK RECONCILIATION TIPS • Best process is to reconcile on at least a monthly

BANK RECONCILIATION TIPS • Best process is to reconcile on at least a monthly basis • Use direct download function for bank transactions in your software • If can’t find a discrepancy, step away and come back the next day • Use deposit and withdrawal totals when looking for a discrepancy • Outstanding cheques are stale dated if older than 6 months 5 Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved.

WHAT HAPPENS WHEN WE DON’T RECONCILE ACCOUNTS ON A REGULAR BASIS 1. Records are

WHAT HAPPENS WHEN WE DON’T RECONCILE ACCOUNTS ON A REGULAR BASIS 1. Records are likely inaccurate 2. Audit preparation takes longer 3. Fraud and error aren’t caught on time: • Wire payment, cheque and credit card fraud • Cheques deposited twice using a phone app 4. If significantly behind with bank recs, consider hiring a contractor to catch up Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved. 6

FUNDING RECONCILIATION Ø Revenue amounts should agree to funding confirmation reports Ø ISC and

FUNDING RECONCILIATION Ø Revenue amounts should agree to funding confirmation reports Ø ISC and CMHC send a funding confirmation report in the audit package Ø If no funding confirmation report, should match revenue to a contribution agreement Ø Review of a sample ISC funding confirmation report Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved. 7

AUDIT PREPARATION CHECKLIST Provided as a resource for webinar participants Copyright 2021 Indigenous Leadership

AUDIT PREPARATION CHECKLIST Provided as a resource for webinar participants Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved. 8

THANK YOU! Shantelle Graham capacity@nokiiwin. com Elena Kalish elena@straightforwardca. ca Melanie Dean melaniedean@ildii. ca

THANK YOU! Shantelle Graham capacity@nokiiwin. com Elena Kalish elena@straightforwardca. ca Melanie Dean melaniedean@ildii. ca Copyright 2021 Indigenous Leadership Development Institute, Inc. - All rights reserved. 9

End End End End End Key Features EndEnd End End End End Key Features End
Bank Reconciliation Statement Bank Reconciliation Statement Bank reconciliationBank Reconciliation Statement Bank Reconciliation Statement Bank reconciliation
FAC 1502 Bank Reconciliation Bank Reconciliation Bank reconciliationFAC 1502 Bank Reconciliation Bank Reconciliation Bank reconciliation
Year 2 Reconciliation topic Rules Year 2 RECONCILIATIONYear 2 Reconciliation topic Rules Year 2 RECONCILIATION
Year 3 Reconciliation topic Choices Year 3 RECONCILIATIONYear 3 Reconciliation topic Choices Year 3 RECONCILIATION
End End End End End Whats NEW inEnd End End End End Whats NEW in
Year End Routines Year end procedures in MYear End Routines Year end procedures in M
Year End Routines Year end procedures in MYear End Routines Year end procedures in M