The operational risk involved in completing TA bank recs manually include mismatching trades, not being able to identify what the account balance is made up of, and not being able to identify late payments. As a result of this, the possibility of fraud on the TA account is much greater. If you cannot explain what the balance is made up of, then the chance of payments to be made in error increases. The Fund Recs TA module sets about eliminating these risks. Let's look at a sample fund.
For each fund, there are three file types. Admin transactions, bank transaction, and bank balances. Files are received automatically via SFTP or can be manually uploaded. The TA bank summary is broken down by transaction type. When we click on options, we can set a rec as day one, which is useful for testing. Open a rec if changes are needed. Review matches, rerun our auto-match rules. We have full search functionality and there's a full audit trail available.
The Fund Recs reconciliation workflow is broken into three steps. In step one, we compare admin with bank. Cash coming into the account is matched with admin transactions. These transactions are either investor subscriptions or redemption funding. Once we find a match in step one, we create a funding transaction. Note, any bank rows must be actioned, either moved to matched or unmatched. They cannot be left as open.
In step two, cash leaving the account is much with pending transactions. These transaction types are investor redemptions or subscription funding. The left-hand side is pending transactions. These have come from step one. We match these pending transactions with bank in step two. You can update type under transaction type if required. We can cater for rounding and bank fee differences.
In step three, we have our review. All balances must tie. For example, your imported bank balance and your two calculated balances on the review page must tie. This ensures that every cent on the rec is accounted for. On the daily activity summary, you can view any transactions that have gone through the account and their status. You can also reverse matches. All reconciliations require a four-eye approval process.
All uploaded files can be found here. This makes it very easy to access all input files where required. For fund set up, these are available on demand and can be edited at any time.
Fund Recs has a powerful rules engine that optimizes the matching process. These rules can be refined to whatever level of detail is required. In the TA bank rec set up, new transaction types can be added on demand. The TA bank rec SFTP setup is a point and click exercise where the user creates folders for the automated process of the files. At Fund Recs we can handle any format type from PDF to Swift, turning unstructured data from this to this. Once everything has been set up and tested in UAT, we can then export to the live environment. You can get help at any time through our live in-app support.