IOLTA Three-Way Trust Reconciliation

Recomputes the monthly IOLTA/client-trust three-way close every small law firm already does by hand in a spreadsheet: the bank statement (adjusted for caller-declared deposits in transit and uncleared checks) against the trust ledger total against the sum of every per-client ledger balance, all as of the same statement period end. Separately walks each client's declared period activity to catch a client ledger that dips negative at any point during the period even when its ending balance looks fine: the classic commingling fact pattern where one client's disbursement is briefly funded by another client's money before a later deposit covers it. Ages every declared outstanding item from the period end so a check or deposit that has sat unresolved for months is visible rather than buried inside a balancing adjustment, and checks that every input balance is stated as of the same period-end date. Reconciliation tolerance is always a declared input, never defaulted; a negative client-ledger low point is never tolerance-gated. Verdict RECONCILED when the three-way equality holds, no client ledger went negative, no outstanding item is stale, and every date lines up; DISCREPANT when any of those breaks; INCOMPLETE when a required input (the tolerance, the period, a balance, or at least one client ledger) is absent. Balances are integer minor units, so the arithmetic is exact. Performs arithmetic only over caller-declared balances and caller-declared outstanding items; does not source, derive, or independently verify any balance, and does not itself determine which bank lines are outstanding. Clause: ABA Model Rule 1.15 (Safekeeping Property); state record-keeping rules govern the specifics and are cited in-page as dated illustrations only, never as a 50-state table.

Tool URL: https://ainumbers.co/chaingraph/art-566-iolta-three-way-reconciliation.html