BP 11122023 129pm - Flipbook - Page 145
Principal Financial Review Checklist
3 Updated August 2022
The following is a checklist of financial reviews that should be performed at each school, and
what to look for in the review.
Monthly Reviews
General Review
o Balance sheet and Income Statement: compare actual to budget for
reasonableness.
o Manual journal entries, including write offs.
o Pre- and post-processing of payroll by signing totals pages: review should take
place each time payroll is processed.
Revenue Review
o FACTS Adjustment report: Highlights changes to billing. Review monthly to
ensure continued accuracy of tuition billings by monitoring new students added,
students removed, additional scholarships given, etc.
o FACTS Delinquency report: shows uncollected tuition and incidental receivables.
o FACTS Problem Activity report: Lists all inactive, delinquent, etc. accounts,
including parents who have expired credit cards or closed bank accounts.
o Accounts Receivable aging report- make sure the report is complete and dates as
far back as the oldest past due payment.
o Incidental billings (such as: after school programs, lunch orders, sports
enrollments, field trips if bill separately, etc.): should be reconciled to FACTS and
then to general ledger revenue account. Reconciling items should be reasonable.
o Development ledger (such as: Little Green Light, DonorConnect, and Excel)
should be reconciled to general ledger: Determine if reconciling items are
reasonable. Most should relate to timing differences between when the donation is
recorded in the donation system and when the deposit is actually made and
recorded in the general ledger. This can be performed quarterly or monthly.
Balance Sheet Review
o Operating Bank account & D&L Reconciliations: Tie the balances per the bank
reconciliation to the bank statement and the general ledger’s Statement of
Position. Determine if other reconciling items are reasonable and deposits-intransit have cleared. Review the monthly check register and monthly detail trial
balance. Look for unusual items, duplicate payments, checks outstanding greater
than 90 days, checks written to employees and to cash. Confirm all FACTS
remittances (a summary for remittances can be printed from FACTS for each
month) were correctly deposited into the school bank account and a portion was
not routed to another bank account.
o Home and School Association bank account reconciliation: See operating account
reconciliation for what to look for in the review. Also, look for payments to
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