3d • General discussion
🎯 NAV Pro Tip #9: The Reconciliation Integrity Check
Before you sign off the NAV, take 3 minutes to validate that reconciliations are genuinely clean (not just “cleared”):
✅ Custody vs accounting positions truly match– Any breaks hidden by mapping rules or tolerances?– Any unmatched lots/ISINs sitting in “other” buckets?– Any corporate action-driven breaks (splits/mergers) not resolved?
✅ Cash reconciliations tell a clean story– Cash breaks explained by timing (trade vs settle) and documented?– Any aged breaks or recurring small differences?– Any FX translation differences incorrectly treated as breaks?
✅ Income & expenses recon are not “forced”– Dividends/interest accruals match expectations and schedules?– Any breaks cleared via plugs/suspense without evidence?– Any items repeatedly carried forward with no owner?
Why this matters:
Reconciliations are not a tick-box exercise — they are your early warning system. If a recon is “clean” only because it was forced, the risk didn’t disappear; it simply moved forward.
Pro move:
If you can’t explain a break in one sentence with evidence, it’s not resolved — it’s deferred.
0
0 comments
🎯 NAV Pro Tip #9: The Reconciliation Integrity Check
