For those of us with a June 30 FYE, April has always struck me as a great time to make sure your audit schedules are whipped into shape. First things first, resolve all those stale outstanding checks, or deposits long in transit, that may still be cluttering up your bank recs.
With the deposits, if the G/L’s high, find the source and get the bank up to speed. If the source is ambiguous, unclear or just missing, and the deposit can’t be documented, maybe it’s time to write it off. And if the bank’s high, those are transactions that really need to be chased down; never can tell if there may be a donor out there still waiting for an acknowledgment for that gift that came sneaking in under the radar.
Insure the integrity of your agings by handling all submodule items through the appropriate module; beware GJE fixes for submodule problems. And you Blackbaud users, when you’re voiding checks, be extra special careful with those Reversal Dates and Post Dates, particularly in periods you’ve already closed out with a tight bank rec. With payroll checks, journal reversals against a clearing account and recut the stale payroll checks against the same account.
Finally, comb through your Balance Sheet and make sure to fully detail all appropriate accounts. Know thy receivables! (And while you’re at it, make sure they’re all really receivable!). Any expenses from last year still suspended in prepaids? How’s your Fixed Asset/Accumulated Depreciation/depreciation expense interplay? Up to date? Are all your withholding accounts cycling out to zero each month?
Nothing new here. It’s just that now’s the best time to make sure you understand everything being carried on your Balance Sheet. The first day of field work is a horrible time for nasty little surprises!
Do drop me a note if you have questions or thoughts about this process.