Creation of a Central Repository of Proof / Control and Reconciliation Reporting Information
Client Business Issues:
This leading global investment bank had been faced with a number of regulatory issues concerning the reconciliation of accounts in its Client Product Services (CPS) area and the various proofs and controls used to ensure the integrity of these accounts. Arc Partners was engaged to analyze the accounts, the systems which housed them, and the reports and processes used to reconcile them.
Our Approach:
Arc Partners interviewed the Product Controllers responsible for the target areas and developed a database that identified the systems generating the various reconciliation reports. Additionally, we developed a cross-reference between these reports and the general ledger accounts to which they reconciled. This enabled us to identify accounts that were not properly monitored. From this information, we developed detailed process flows to illustrate the current reconciliation process and the recommended processes enhanced through elimination of redundancies and the inclusion of control points.
Value Received By Client:
The new procedures developed as a result of the project resolved regulatory deficiencies while not requiring the expenditure of additional funds or labor. A structure was also defined which permitted improved management information reporting focused on exceptions rather than volume. Funds incorrectly booked were identified and recovered as a bi-product of this project. In addition, the reports database was used to support research on several other initiatives because of its completeness and ease of use.