Jodi Copeland Region Manager, Fiserv Risk & Compliance

Transcription

1 Reconciliation & Compliance: Frontier Overview Jodi Copeland Region Manager, Fiserv Risk & Compliance

2 2

3 Agenda Current Reconciliation Challenges Frontier Benefits Typical Uses for Frontier Solution Overview Q&A 3

4 4

5 5

6 6

7 Current Reconciliation Challenges Data: Getting the data: print reports, s, screen shots Accessing different applications for the data Matching: Labor intensive, time-consuming, manual effort Time spent on what matched Inconsistent matching across staff: thresholds/ data elements

8 Current Reconciliation Challenges Exceptions: Rekeying exceptions into a spreadsheet Manually posting correcting entries into another application Signoff: Verification of completion of reconciliation submission - printing Verification of sign off

9 Frontier TM Benefits Reduce Risk Reduce exposure to losses (aged items, manual process risk) Full transparency Elimination of manual processes Improve Efficiency Reduce Paper/Manual costs Reduce Effort (reallocation of staff) Capacity to accommodate increasing reconciliation volumes Compliance Internal effectively satisfy internal compliance needs External meet various market/industry regulations and requirements Standardization Single platform for reconciling, managing exceptions, reporting, and certification Easier to manage, maintain, and train staff

10 Frontier: Customer Examples 10

11 Customer ROI Examples Average reallocation of 79% of reconciliation staff time Average reallocation of 17.5% of exception management staff time Up to 25% reduction in audit costs based on automated account certification and electronic storage of data

12 Customer Audit Example - $6 billion bank 2 people visit 11 affiliate locations twice a year Reconciliation audits take 3 weeks each 3 weeks * 2 people * 2 times per year = 12 weeks in total Let s do the math (conservatively) Assuming $150k in total compensation between the 2 employees and 25% of their time on this task (about right after vacations, etc) Cost of reconciliation audits = $37,500 per year

13 Frontier TM : Enterprise Reconciliation Goal: Single, integrated transaction processing platform managing all areas of operational and balance sheet reconciliation Cash Internal DDA Correspondent Banking Federal Reserve Branch / Teller Cash Official Checks ACH Adjustments Accounts Bank Fees Consumer Loans / Lease Commercial Loans / Lease Mortgage Servicing Card (Debit / Credit) Electronic Funds Movements Foreign Exchange Accounts General Ledger Cost Center Balancing Front-to-back Office (Basel II, SOX, etc.) Internal Transactions Suspense Accounts System-to-System Balancing Accruals General Accounting (AR, AP, Assets) Ledger to Sub-ledger Accounts Trust and Investment Operations Position Reconciliation Securities Trading & Clearance Securities Lending Stock Record Frontier Enterprise Reconciliation 13

14 Frontier TM : Complete Reconciliation & Compliance Source ASCII Data Files Web Dashboard Viewpoint Frontier Detail & Balance Reconciliation Daily, Weekly, & End of Period Sign-Off & Approval Normalize, Transform & Load Matching Exception/Break Identification Reports & Extracts Reconciliation Types and Processes: Auto Matching 1 to 1 1 to Many Many to Many Interactive Matching Reason Codes: Amount Discrepancy Date Conflict Pricing Break User Defined Report Samples: Aged Outstanding Reconciled Items SOX Compliance Extract Samples: GL Amount Variances Trade Cancel/Replacements AP Replacement Checks

15 Frontier TM : View Point

16 Frontier TM : Outstanding Items by Age

17 Frontier TM : Aged Exceptions

18 Frontier As-At Recon 18

19 Frontier At-At Recon with Notes 19

20 How Does It Work?

21 How Premier and Frontier Work Together Sample Reconciliation Clearing Entity ACH ACH system Your General Ledger feeds Frontier the company information around these transactions. Frontier reconciles the company information to the actual transactions from the clearing entity file. Frontier feeds any journal entries back to the GL so accounts are in balance. General Ledger Frontier 21

22 Integrated Operations and Finance View Operations Finance Transactions GL Transactions Reconciliation Certification Reporting Wires Checks Cards ACH Accts Receivable General Ledger (AR) Balance AR Acct Sheet Substantiation Reconciliation Financial Reporting SWIFT Accts Payable (AP) AP Acct Reconciliation Account Ownership Cash Approval/Sign-Off Policy Adherence Intercompany Risk Assessment Investments SLA Measurement Trades 22

23 Frontier Reconciliation 6.0 Certification Benefits Improve Visibility Configurable drill-through gauges on the ViewPoint My Work certifications that require action now My Responsibilities certifications that require action now or in the future My Certifications certifications that require action now, in the future or have been completed Monitor role for monitoring and audit capabilities

24 Frontier Reconciliation 6.0 Certification Benefits Increase Efficiency Bulk Approval and Rejection of Certifications Auto-approval of Certifications Multiple submission options including: Direct submission from a completed reconciliation (performed in Frontier) Balance Only Manual Entry

25 Frontier Reconciliation 6.0 Certification Benefits Increased Control Configurable Approval and Review levels with due dates to enforce SLAs Limit user access based on assigned Accounts/Hierarchies Certification Only users do not require access to core Frontier

26 Frontier Reconciliation 6.0 Certification Benefits Reduce Risk Configurable Risk Rankings to prioritize work Store and display policy and procedure information to guide users and administrators notifications on status changes such as cancellations, rejections or late approvals to alert users to take action

27 Q&A

28 If you would like more details on accounting and financial control solutions, please contact your Fiserv Client Partner, or

29 Thank you