A handoff can contain every expected folder and still leave the next manager unable to explain the starting balances. This walkthrough follows a fictional association whose transferred records contain three exceptions: a deposit in transit, a possible duplicate invoice, and a maintenance job marked complete without closeout evidence. The examples illustrate review methods, not accounting instructions or findings about any provider.
Establish the comparison point
Agree which reporting date the transfer uses and whether the reports are preliminary or closed. Preserve the original export unchanged and keep a separate working copy. Ask the preparer to identify the accounting basis and any adjustments still expected. Comparing a month-end ledger with a later bank screen can create apparent discrepancies that are actually differences in dates.
Open an exception register with one row per issue: identifier, source record, amount if relevant, reason it is uncertain, assigned investigator, evidence requested, disposition, and reviewer. Never use an unexplained balancing entry merely to make the totals agree. The association's accounting professional should resolve treatment questions and review proposed adjustments where appropriate.
Exception one: a deposit appears in only one place
Suppose the closing reconciliation lists a deposit that the receiving team cannot see on the statement through that date. Ask for the deposit detail, transaction date, and evidence of subsequent clearing. Check that the owner ledger credited the intended accounts and that the same deposit was not entered twice during import. A timing explanation should connect specific records, not simply say that deposits sometimes clear later.
If evidence remains incomplete, keep the item open and identify how it affects the opening information. Record the follow-up owner and date. Do not describe the balance as fully reconciled while the supporting transaction remains unresolved.
Exception two: an invoice may be duplicated
Match vendor name, invoice number, service dates, amount, and any payment reference. Similar amounts alone do not prove duplication. One document could be a revised invoice, another a statement summarizing the same work. Request clarification from the authorized vendor contact before a second payment is considered. Preserve both documents and the explanation so a later reviewer does not repeat the investigation.
Exception three: a completed work order lacks evidence
Compare the work description with the vendor's completion report, invoice, photographs where useful, and any inspection or acceptance requirement. Ask who changed the status and what they relied on. If the job remains unverified, carry it into the incoming team's active list with a named reviewer. Transferring a “closed” label is not the same as confirming the work was delivered.
Accept the explained starting position
At review, separate resolved items, documented timing items awaiting confirmation, and disputed items needing further advice. Record approved corrections with references to the original records. Retain the final reconciliation package alongside the exception register. The board should be able to explain what was accepted, what remains uncertain, and who will establish the remaining facts without reconstructing the entire transfer.