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Reconcile Government-Wide Statements (Statement of Activities and Net Position) for Rounding Differences

To resolve rounding differences in Governmental Activities, follow a three-step reconciliation sequence: first, reconcile the Change in Net Position on the Statement of Activities; second, align the ending balance with the Statement of Net Position reconciliation; and third, adjust any non-Net Position line to balance the Statement of Net Position.

Reconcile the Government-Wide Statement Walkthrough

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Step By Step Instructions

Governmental Activities follow a fixed three-step sequence. Do each step in order, and only move to the next step if the previous one did not resolve the difference.

Step 1 - Reconcile the Change in Net Position

  1. Click Checks in the Reconciliation to Government-Wide section to begin.
  2. Look at CC.R.1 Cross Check Reconciliation with SNP Total check to see if it shows 0.
    • Note: This compares the Change in Net Position on the Statement of Activities (SoA) to R.2 - Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities
  3. If it is not 0, post the rounding adjustment in the Statement of Activities (for example, Miscellaneous Revenues under General Revenues - Governmental Activities) and do not adjust the R.2 Reconciliation.

Step 2 - Reconcile the Ending Balance

  1. Expand the CC.R.2 - Cross Check Reconciliation with SOA row.  
  2. Expand the Reporting Funds column to see the breakdown.
  3. Make sure the SoA ending balance (Change in Net Position from SOA) matches the ending balance in R.1 - Reconciliation of Balance Sheet (Change of Net Position from Reconcilitation) to the Statement of Net Position.
  4. If it does not match, post the rounding adjustment in R.1 on this line: R.1.04 Total net position - governmental activities > R.1.04.03 Beginning net position (Conversion entries/GASB funds) > R.1.04.03.01 Beginning net position, as previously reported.
    • The corrected ending balance flows automatically to the Government-Wide Statement of Net Position.

Step 3 - Balance the Statement of Net Position.

If after Step 1 and 2, it is still out of balance, post the rounding adjustment to any line except Net Position with the Reconciliation to Government Wide data model.



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