USA Reconcile Revenue Accounts?

[Sunny Raen]

I recently began working for a non-profit, and as part of their month end process they asked that I reconcile the revenue accounts. I've never done that before, so I asked for instruction. My predecessor left instructions as follows (paraphrased):

1. Throughout the month, whenever revenue is recorded in the accounting system, also record it in an excel spreadsheet.
2. At the end of the month, print the trial balance for each revenue account and compare it to the spreadsheets.
3. If there are items in the GL that are not on the spreadsheet, determine the cause for discrepancy and resolve.
4. If there are items on the spreadsheet that aren't on the GL, determine the cause of the discrepancy and resolve.

I don't have a whole lot of NPO experience, so maybe I'm missing something. But it feels like a lot of redundant work and it's not really a reconciliation. Am I wrong about this? I've been told that the auditors want to see it, but I can't possibly see how it carries any weight at all. I feel like I'm losing my mind.

Has anyone else ever had to do this?

 

[kirby]

"The auditors want to see it" is a bogus reason that someone is giving you. A process either makes sense in internal control terms or it does not. I have heard that reason justify some of the most ridiculous processes ever. And you can never find the auditor who requires this. It is modern day "the gods will be angered if you do not do this"

Figure out what makes sense. Contact the auditors and get either their agreement or a disagreement supported by facts, not fear. Go forward.