Process Assessment Report

Competency Description

The organization maintains a formal Account Reconciliation Policy that outlines the scope, frequency, responsibilities, and procedures for reconciling bank accounts. 

This policy is comprehensive in addressing operational needs and regulatory requirements, and is subject to regular review and updates to ensure alignment with evolving business practices, compliance standards, and internal controls.

Illustrative Examples for Account Reconciliation Policy

Example 1: Scope Definition

 The policy clearly defines which types of accounts require reconciliation (e.g., operating, payroll, foreign currency accounts) and excludes dormant or non-financial accounts.

Example 2: Frequency Standards

 Reconciliations for high-volume accounts are mandated to occur weekly, while low-activity accounts are reconciled monthly, with documented rationale for each frequency.

Example 3: Role Clarity

The policy assigns reconciliation responsibilities to the Treasury team, with review and approval by the Finance Manager. Escalation procedures are outlined for unresolved discrepancies.

Example 4: Regulatory Alignment

 The policy incorporates compliance requirements from local banking regulations and international accounting standards (e.g., IFRS), ensuring reconciliations meet audit expectations

Example 5: Operational Integration

Updates to the policy are triggered by changes in ERP systems, banking platforms, or organizational structure, ensuring the reconciliation process remains aligned with operations.

Example 6: Review Cadence

The policy is reviewed bi-annually by the Finance Governance Committee, with documented minutes and tracked revisions to reflect evolving business and regulatory landscapes.