Reconciling Bank Balances/Federal Check 21 Act

Local units of government should reconcile bank balances on a monthly basis to identify potential problems, such as error or theft. With the enactment of the Federal Check 21 Act, it may no longer be possible to obtain canceled checks from depository banks.

By promptly identifying potential problem checks, local units of government may be able to avoid destruction of the checks by their banks. The checks being destroyed may contain important evidentiary information that is not being preserved in an electronic version.

For more information, please see the Statement of Position on the Federal Check 21 Act, available here.

Date this Avoiding Pitfall was most recently published: 12/01/2017