Auditing and reconciling custodial accounts
A method, system and computer program product for auditing and reconciling custodial accounts. A tool is provided to allow a custodial agent to audit a custodial account at one or more depository institutions at which deposits are held by the custodial agent on behalf of one or more individuals and reconcile such accounts. According to one embodiment, the method includes comparing account balance data from a depository institution for a custodial account against account balance data from a second source for the custodial account, identifying discrepancies between the balance data from the depository institution and the balance data from the second source, identifying a prospective write-off in the amount of one or more of the discrepancies, and prompting the custodial agent to indicate whether the custodial agent accepts the prospective write-off. The prospective write-off may be offset against an account.
1. A computer-implemented method for reconciling a plurality of custodial accounts held at a plurality of depository institutions by a custodial agent, wherein funds in said custodial accounts are deposited in the aggregate from individual accounts belonging to a plurality of individuals, comprising:
receiving electronic individual account transaction data relating to said individual accounts;
deriving, with one or more processors, custodial account balance data relating to said custodial accounts from said individual account transaction data;
receiving electronic custodial account balance data relating to said custodial accounts from said depository institutions;
comparing, with said one or more processors, said custodial account balance data received from said depository institutions against said derived custodial account balance data;
identifying discrepancies between said custodial account balance data received from said depository institutions and said derived custodial account balance data;
identifying a prospective write-off in the amount of one or more of said discrepancies; and
prompting said custodial agent to indicate whether said custodial agent accepts said prospective write-off.
2. The method according to claim 1 , further comprising: allowing said custodial agent to not accept said prospective write-off.
3. The method according to claim 1 , wherein said prospective write-off is an offset against an account.
4. The method according to claim 3 , wherein said prospective write-off is an offset against a fee charged to one or more of said depository institutions by said custodial agent.
5. The method according to claim 1 , wherein said custodial accounts are deposit sweep accounts.
6. The method according to claim 1 , wherein said plurality of depository institutions are in a network of banks at which deposits are held by the custodial agent.
7. The method according to claim 1 , wherein said individual account transaction data comprises daily deposit and withdrawal activity for each of said individual accounts.
8. The method according to claim 1 , wherein said custodial account balance data received from said depository institutions comprises principal balance and interest accrued for each of said custodial accounts.
9. A computer-implemented method for auditing a plurality of custodial accounts held at a plurality of depository institutions by a custodial agent, wherein funds in said custodial accounts are deposited in the aggregate from individual accounts belonging to a plurality of individuals, comprising:
deriving, with one or more processors, custodial account balance data relating to said custodial accounts from individual account transaction data relating to said individual accounts;
comparing, with said one or more processors, said derived custodial account balance data against custodial account balance data received from said depository institutions;
identifying discrepancies between said received custodial account balance data and said derived custodial account balance data; and
displaying said discrepancies.
10. The method according to claim 9 , further comprising: identifying a prospective write-off in the amount of one or more of said discrepancies.
11. The method according to claim 10 , further comprising: prompting said custodial agent to indicate whether said custodial agent accepts said prospective write-off.
12. The method according to claim 11 , further comprising: allowing said custodial agent to not accept said prospective write-off.
13. The method according to claim 10 , wherein said prospective write-off is an offset against an account.
14. The method according to claim 13 , wherein said prospective write-off is an offset against a fee charged to one or more of said depository institutions by said custodial agent.
15. The method according to claim 9 , wherein said individual account transaction data comprises net daily deposit activity and net daily withdrawal activity for said customer accounts.
16. The method according to claim 9 , wherein said depository institutions are in a network of banks at which deposits are held by the custodial agent.
17. The method according to claim 9 , wherein funds in said individual accounts are disaggregated and then reaggregated in said custodial accounts.
18. The method according to claim 9 , wherein said custodial account balance data received from said depository institutions comprises principal balance and interest accrued for each of said custodial accounts.
19. A computer-implemented method for reconciling a balance of funds in a plurality of custodial accounts held at a plurality of depository institutions by a custodial agent, wherein funds in said custodial accounts are deposited in the aggregate from individual accounts belonging to a plurality of individuals, comprising:
receiving electronic individual account transaction data relating to said individual accounts;
deriving, with one or more processors, expected balance of funds data for said custodial accounts from said individual account transaction data;
receiving balance of funds data for said custodial accounts from said depository institutions;
comparing, with said one or more processors, said expected balance of funds data for said custodial accounts against said received balance of funds data;
identifying discrepancies between said expected balance of funds data and said received balance of funds data;
identifying a prospective write-off;
displaying said prospective write-off; and
prompting said custodial agent to indicate whether said custodial agent accepts said prospective write-off.
20. The method according to claim 19 , wherein said individual account transaction data comprises net aggregated deposits to said custodial accounts from said individual accounts and net aggregated withdraws from said custodial accounts to said individual accounts.
21. The method according to claim 19 , wherein said balance of funds data comprises principal and interest data.
22. The method according to claim 19 , wherein said balance of funds data comprises principal, interest and fee data.
23. The method according to claim 19 , wherein said custodial account is an insured deposit account.