Accounts Reconciliation Strategies and Management of Suspense Accounts/ Interbranch/Unit Differences in Banks

A lot of frauds amounting to very huge sums of money take place due to inefficient operation of inter-branch reconciliations. Huge sums of money remain unreconciled between the numerous branches and departments. Thus, Banks are exposed to risks. Inter-branch unit / department reconciliation approaches differ among banks but the general principles and objectives are similar. As a Bank grows in sizes and operations unreconciled differences mount and suspense accounts are created. There is need therefore to teach proper procedures for management of suspense accounts and reconciliation of outstanding differences. There is also need to improve reported profits by reducing the quantum of “provisions” in the accounts due to huge outstanding balances of unreconciled transactions.

CONTENT

• Basic accounting techniques
• Computer based accounting systems
• Bank branch/unit structure and administration
• Nature of inter-branch/unit transactions
• Cheque administration and other banking instruments
• Hierarchy and structure of interbank/department/unit/reconciliation units
• Branch/Departmental/Units charting accounts codes
• Various causes of inter-branch/department/unit differences
• Sorting and matching outstanding transactions
• Skills in tracking outstanding differences
• Fraud in unreconciled Transactions
• Unreconciled Transactions for groups of branches, departments/units
• Electronic fund transfer systems
• Prudential guidelines including provisions in the accounts based on unreconciled items
• Application of information technology in inter-branch/unit/departmental transactions
• Various available reconciliation computer packages
• Building of suspense accounts
• Emerging trends and future challenges

FOR WHOM:

Accounting Personnel in the Accounts and Financial Control Departments, Internal Auditors, Branch Managers, Operations Managers and infact, all Managers whose functional and supervisory roles give rise to creation of suspense accounts and the reconcilliation of intrebranch/department/unit outstanding transactional difference in the Bank.

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.