Decentralization of General Ledger reconciliations gave rise to inconsistent and incorrect performance of reconciliations
The situation
An internal audit review of reconciliations found that certain reconciliations contained errors and did not correctly show reconciling items, their rationale or age. Accruals were also not correctly matched/ reversed with the corresponding expense. Alacer was required to apply objective scrutiny to the reconciliation reviews to ensure documentation would stand up to review by other stakeholders, including auditors and regulators.
The challenges
Over 2,000 General Ledger accounts required review in a short space of time, and additionally the reconciliations covered a wide spectrum of account types such as Fixed Assets, Equity and Leases. Month-end pressures on reconciliation owners also meant planning and preparation for discussions was critical to ensure maximum utilization of available client time.
What Alacer did
Alacer reviewed all in- scope reconciliations to validate reconciling items and adjustments.
Documented results
Alacer consultants reviewed all reconciliations within the required time frame and discovered errors and omissions amounting to several million dollars. The results of the reconciliation review also served as input into a wider strategic review of General Ledger reconciliation ownership and best practice (see separate case study “Alacer Helps Streamlining General Ledger Reconciliation Process”).
Historical Alacer engagement. Wording and results are based on the supplied original PDF. Numbers reflect the scope and time of this engagement; results vary. EPIF is the firm's current methodology and is not presented as the named framework used in these historical projects.