Fund Balance with Treasury
Treasury Financial Manual Guidance
About the Reconcilation Process
Why We Developed this Process
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 Web site contains the methods that you should use in reconciling Deposit, Undistributed and Check Issue differences effectively, and easily. You are shown how and where to get the information you need to clear your differences.
Why You Need to Reconcile
The validity of the classified receipt and outlay data published in the financial reports of the U.S. Government by the Financial Management Service depends on the accuracy of the monthly Statement of Transaction (FMS-224) 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 ensures 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.
Reconciling the Deposit Statement of Difference
At the close of each accounting month an FMS 224 or FMS 1219/1220 is transmitted to FMS via GOALS II for transactions (receipts and outlays) that occurred during the month. If no transactions occurred, a report with the words "No transactions" must be submitted. You may refer to the Treasury Financial Manual (I TFM 2-3100 or I TFM 2-3300) for detailed information on preparation of the FMS 1219, SF1220 and FMS 224.
Agencies should maintain transaction logs as a part of their internal accounting system. The transaction log for deposits should contain detail information that relate to the SF 215 (Deposit Ticket ) and the SF5515 (Debit Voucher). The totals of these logs for each month should agree with the totals reported on your FMS224 or FMS1219.
An automated comparison of totals is made of the deposit data submitted by you on Line 3, Section III of the FMS 224 or Section I, Line 4.20 and Section II, Part B, Column 3 and 4 of the FMS 1219 with that submitted by commercial banks and or FRB's through the CA$HLINK II system. An FMS-6652 "Statement of Differences-Deposit Transactions" is generated if there is a difference between the FMS 224/ 1219 and CA$HLINK II. 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 on line 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. The unmatched items should be researched and resolved within 2 months of occurrence.
Reasons for Unmatched Items
Reconciling Disbursement Statement of Differences
How did this difference occur?
8 digit Agency Location Codes
Agencies that use Regional Finance Centers to issue checks (8 digit ALC's) report their disbursement activity monthly to Treasury/FMS using an FMS 224 Statement of Transactions. This activity is reported in section I of the FMS 224 as well as in section II, line 1, by month. This disbursing activity is also reported to Treasury by Regional Finance Centers (Treasury Disbursing Offices), as well as by the Interagency Payment and Collections (IPAC) System.
The amount reported for each month on Line I, section II of your FMS 224 is compared to the total accumulated for each month by Treasury from the two sources previously mentioned. If the amounts reported on the FMS 224 do not agree with the amounts reported to Treasury by the other sources, a Statement of Differences (SOD) is created. Notification of this is available in GOALS II, in the form of the FMS6652, Statement of Differences - Undistributed.
4 digit Agency Location Codes
Agencies that have authority to issue Treasury checks (4 digit ALC's) report their disbursement activity monthly to Treasury/FMS using the FMS 1219 Statement of Accountability and FMS 1220 Statement of Transactions. Since, four digit ALC's issue checks, they have two types of disbursement differences to address, Statement of Differences - Disbursement and Checks Issued Audit Differences.
This section addresses the Statement of Differences - Disbursements.
The Statement of Differences - Disbursements is created as a result of a comparison of IPAC transactions reported on Line 2.80, Section I, Part A, and broken down by month in Section II, Part A, Column 3 of the FMS 1219, to IPAC monthly totals accumulated by Treasury from the IPAC system.
How do you resolve your difference?
Agencies should maintain transaction logs as a part of their internal accounting system. The transaction log for disbursements should contain detail information that relate to the following forms.
Form 1081 has no effect on your statement of differences since both sides of the entry are reported in section I of the FMS 224 for eight digit ALC's and on the FMS 1220 for four digit ALC's.
Form 7306 should agree to the amount of OPAC Transactions reported on your FMS 224 or FMS 1219.
Forms 1166, 1185, 145 and 1098 should agree with the amount of net disbursements reported on your FMS 224 or FMS 1219.
Eight digit ALC's
To identify items that are causing the Statement of Differences, compare your agencies internal schedule which supports the amount reported on your FMS 224 to the activity listed on your IPAC Support Listing and RFC Support Listing. These Support Listings can be found on GOALS II.
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.Common reasons for differences
Four digit ALC's
For Statement of Differences - Disbursements, compare your internal schedules that support the amounts reported by you on your FMS 1219, Section I, Part A, Line 2.80 and Section II, Part A, Column 3 to the IPAC Support Listing found in GOALS II. 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.
Common reasons for differences
Reconciling Check Issue Audit Differences
Your agency may receive correspondence monthly from Treasury/Financial Management Services' Cash Accounting Division (CAD) that notifies you of your Checks Issued Audit Differences. Checks Issued Audit Differences are created as a result of a comparison of Checks Issued totals reported on lines 2.10, 2.11 and 2.12 of the FMS 1219 to the Checks Issued amounts and related adjustments recorded in the Check Payment and Reconciliation System reported to Treasury by SF1179 Checks Issued Tape.
Agencies should maintain transaction logs to support the Checks Issued amount reported on the FMS 1219 and SF1179. The logs should contain a list of Treasury checks issued and SF 5206's, Adjustments of Check Issue Amount.
Compare the detail from the FMS 1219 transaction log to the detail data on the SF1179 transaction log. Unmatched items should be researched and cleared within in 2 months of occurrence.
Common reasons for differences
Things To Remember
Contact Phone Numbers
Cash Accounting Division
Check Reconciliation Branch
CA$HLINK II System Owner
Treasury Agency Services