Does anyone have a procedure or guideline for how long an item can stay outstanding on the due from bank reconciliation? Is there any risk if it is immaterial in amount? I don't like it staying out there forever, but I need a good reason to make them expense it.

I use 30 days, with 90 days a maximum if there is a documented explanation. It's really a CPA type item, the same as a suspense item and suspense items have had a 90 day maximum for years. CPA firms will force a write off at 90 days if proof of value cannot be established.

The correspondent account is a "good" place to hide some really bad things. Some banks include the reconcilement of this account in the board package, especially if there has been a problem in the past.

The risk is that, even though the amount may be immaterial, someone may be using the accounts to conceal some fraud, embezzlement, etc. That's why stale items should be fully investigated. AR.