Audit question

I had my mid year audit done yesterday and had a question hopefully, someone here can help me with.

One of the reports generated during the reconcilliation process lists outstanding checks. During the audit there were 2 checks on my June reconcilliation report that did not show up in the June CUFS section for outstanding checks. This is something on the audit report the auditor looks for.

Why would the two reports not match? and how do I go about correcting the discrepancy?

Thanks in advance for the help.

thesmith7 wrote:One of the reports generated during the reconciliation process lists outstanding checks. During the audit there were 2 checks on my June reconciliation report that did not show up in the June CUFS section for outstanding checks. This is something on the audit report the auditor looks for.

Why would the two reports not match? and how do I go about correcting the discrepancy?

The simplest explanation is that these checks did clear before June 30, but you simply forgot to check off the checks as cleared. That might have been as you were reconciling June's statement, or any time before then.

Note that if the checks were written from Budget or Fast Offerings, both the check and the corresponding transfer would be outstanding, so you would still be able to have your reconciliation balance.

To correct the problem, review your older financial statements to verify that indeed these two checks have cleared. If so, you can simply check them off the next time you reconcile, and they will quit following you around.

Thanks for the quick response...i will check to see if i did indeed miss checking those off. I have been using your suggested method of reconciling the budget categories which has been helpful. Just when I thought I knew what I was doing.