Importance of Timely Bank Reconciliations

Early in my career I was a staff auditor on local government audits. During this time, I was reviewing bank reconciliations performed by a city. As I reviewed the documents, I saw things I would expect: deposits in transit and lists of outstanding checks. However, there were curious adjusting items with the caption "02". Since I had never seen this reference, I went to the accountant who performed the reconciliation to determine what a "02" represented. She responded that those were amounts...