Bank Balance Cross Check Error

The charity regulators define cash funds as all cash and bank and building society balances where cash can be quickly and easily withdrawn to pay liabilities and expenses as they become due.

This is distinct from Investments such as:-

Equally tangible fixed assets would not be included as cash funds.

The System check

The alert error is derived by comparing the Statement of Receipts and Payments closing cash fund balance with the sum of all the balances on cash and bank and building society accounts. The latter are all those accounts that the user has included under account type Current Assets - Bank Account.

Usual sources of error

The usual sources of error are one of the following three (or perhaps a combination)

Dealing with Unpaid payroll liabilities at the year end

Any payroll liabilities (to HMRC or Pension providers) unpaid at the end of the year will need to be paid to clear the error.

Dealing with Opening balance for cash funds includes balances from investments or tangible fixed assets

If investment and fixed asset opening balances were included in the Receipts and Payments opening cash fund balance when set up, adjustments will be required. Navigate to the Opening Balances - Funds (under Control menu) and amend the RandP opening fund balances to eliminate balances not part of cash funds.

Note that if prior years have been closed then the user must amend the RandP Balance Brought In date and balances to the position as at the last day of the period before the prior period. For example if the reporting period ends on 31 December 2025, the prior period ends on the 31 December 2024 then the amended cash fund balances must be as at 31 December 2023

Dealing with Journal postings to the Statement of Receipts and Payments that are non cash

If a journal has been posted to an income or payment account that is non-cash (i.e. does not change a cash or bank account balance) then the Statement of Receipts and Payments closing fund balance will reflect that posting but the cash funds will not, hence the cross check error.

The user will need to review the journal(s) and correct them.

A common item is where an Investment has been revalued. The value needs to be reflected in the statement of balances by posting a revaluation but it does not need to be forced through the Statement of Receipts and Payments as it is not yet cash.