6.10 Nominal (General) Ledger and Journals

15 May 2009


The objectives of the NGB's nominal (general) ledger and journal procedures are to ensure that:

- Data entry is authorised, accurate, complete, posted in the correct period and has adequate supporting documentation

  • Before the beginning of each financial year, set up the calendars on all ledgers to coincide with the financial statements period ends.
  • Review and authorise all accruals and prepayments, particularly in respect of expenses/income, every month.
  • Print/prepare all necessary financial reports before closing the nominal (general) ledger each month and implement adequate filing procedures to ensure completeness of physical records.
  • The Treasurer should review all financial reports for accuracy and completeness prior to submission and/or distribution of results at management meetings or for the preparation of the financial statements.
  • Identify, document, review and authorise all reconciling items between the nominal (general) ledger and third party documentation.
  • Comply with accounting standards and with the NGB's accounting policies.
  • Reconcile the annual financial statements to the year-end figures on the accounts system.


- All journals posted to the nominal (general) ledger are documented and properly authorised

  • Document and authorise all journals on standard journal forms with sufficient narrative and documentation to fully support each entry. These forms should be filed numerically for completeness.
  • Compile a list of standard journals that need to be made each month. Assign responsibility for the preparation of each journal and have the list signed off when the journal is complete. The Treasurer should review this list for completeness.


- The Chart of Accounts is complete and all changes are authorised and accurate.

  • Ensure that the Chart of Accounts is set up in sufficient detail to comply with both management and financial statement reporting requirements.


- Management and control accounts are reconciled and reviewed monthly.

  • The following list of nominal (general) ledger accounts should be reconciled monthly:
    - Bank
    - Creditors
    - Debtors
    - Prepayment and accrual accounts
    - Other balance sheet control accounts, e.g. PAYE/PRSI
  • Establish a timetable detailing monthly deadlines and responsibilities for the performance and review of nominal (general) ledger reconciliations.
  • The Treasurer approves and authorises the "Management Accounts checklist" - see Appendix 7.
  • Review expenditure before closing the general ledger for the period.
  • It is the responsibility of the Treasurer to ensure that there is a clear audit trail with supporting documentation for all the transactions in the management accounts.
    - Access and security to the accounts software is controlled
  • If the NGB uses an accounts package, access control to the accounts software must be restricted to individuals responsible for processing accounting data.
  • Back-up copies must be made of all the files. All the data information for the accounts software must be backed up on the network. Data information for payroll software must also be backed up on floppy disk.
  • All back-ups must be stored securely, preferably off-site.