HBP Part 2.5. Account Reconciliation

Handbook of Business Procedures

Date published: May 28, 2020
Last revised: June 03, 2020
Issued by:



Monthly Financial Reconciliation Process


To assist departments with monthly reconciliation of their accounts required by the Account Monitoring Plan.


University of Texas System UTS 142.1 – Policy on the Annual Financial Report (linked)

I. Overview

Reconciliation is a control activity to compare departmental records to The University of Texas at Austin’s official accounting records.  The reconciliation process includes identifying and correcting/ reconciling items within thirty days of the prior month’s close.

In addition to monthly reconciliations, departments are required to certify annually that all transactions have been reconciled.

II. Responsibilities

Business Officers and Departmental Managers

  1. Ensuring that transactions are reviewed every month and accurate accounting records are maintained, and ensuring that all account reconciliations have been completed.
  2. Ensuring errors are corrected and all transactions are accurate, allowable and appropriate.
  3. As part of the year end sub-certification process, business officers and unit heads will be required to certify reconciliations are complete.


  1. Completing monthly reconciliations between departmental records and accounting records for all accounts.
  2. Promptly notifying the appropriate departments of errors or omissions, coordinating corrections and confirming completion of necessary entries.
  3. Retaining evidence of reconciliation process for audits, Risk Management review and other requests.

III. Reconciliation Process

  1. For expense transactions, completion of the Expense Account Certification process is accepted as the minimum requirement for giving evidence of reconciliation.
  2. Departments may also use the LMM Define module for account reconciliation (see Additional Resources below).
  3. Departments using alternative reconciliation methods outside of LMM or EAC must get their process approved by Risk Management
  4. Access accounting/DEFINE records via UT Direct Transaction Listings or other available methods
  5. Compare information in transaction listings against departmental records.
  6. Identify and keep a record of any reconciling items.
  7. Initiate any corrections needed by contacting the appropriate department and following up to confirm all reconciling items have been resolved.
  8. Keep a record giving evidence that reconciliations were completed and reviewed by business officers or departmental managers.

IV. Additional Resources

  1. Expense Account Certification System (EAC)
  2. LMM DEFINE Module Training
  3. UT Austin Account Monitoring Plan
  4. UTS 142.1 – Policy on the Annual Financial Report