Introduction

EZOPS is rapidly becoming the preferred Reconciliation and Data Control system for large Fund Admins, thanks to its specialized functionality tailored to their needs. One key area where EZOPS excels is in Month End Reconciliation Controls, leveraging the expertise of Fund Admins' Subject Matter Experts (SMEs) on our team.

The Client

Fund Admins, particularly those handling alternative investments, live for month end. Their operations are geared towards ensuring a streamlined and controlled Month End NAV (Net Asset Value) process. This process involves meeting Service Level Agreements (SLAs) with clients and fund accountants, ensuring strict adherence to regulations and accuracy.

The Need

Fund Admins face significant challenges during the Month End Reconciliation(Recon) process. They must balance:

• ‍Month End Recon Process: Handling backdated files with corrections.
• ‍Daily Recon Process: Concurrently running the recons.

With two separate processes and numerous files, maintaining control over timelines and processes is critical. Specific issues include:

• Ensuring the ‘as of’ date is correct for items in the month end recon.
• Preventing files from being processed in the Daily recon.
• Taking a snapshot of the daily recon at the month end date,including complete comment history, before updating with subsequent days' data.
• Keeping one party static.
• Managing other frequency NAV dates or ad hoc NAV dates, whether known in advance or decided after the fact

Due to these challenges and the limitations of legacy systems, the month end process often ends up being finalized in Excel, which introduces additional risks due to the lack of audit history and increased potential for errors.

Selecting EZOPS ARO

To address these challenges, EZOPS offers ARO, a solution designed to handle Month End Reconciliations efficiently. As reconciliation systems have evolved, clients are moving away from legacy or in-house systems towards solutions that provide the necessary functionality for today’s automation and compliance-focused environment.

The Outcome

Top 10 Fund Admins, dealing with leading Investment Managers and managing thousands of funds, have successfully adopted EZOPS for various reconciliation types, including:

• Security Recons
• OTC Recons
• Cash Summary Recons
• Loan Recons
• Total Equity Recons

‍

EZOPS ARO Solution offers:

• Parallel handling of Month End and Daily Recons with clear processes and file sign off.
• Specific files for Month End Recons sourced from the accounting system with the correct 'as of' date.
• A snapshot of the daily recon at month end, ensuring historic info linkage.
• Ability to rerun recons with only one updated report.
• Flexibility to handle any NAV frequency, including emergency NAVs.
• Capability to manage multiple month end recons in parallel.
• Transition of manual recons to a scalable and auditable platform.

Conclusion

EZOPS invites you to explore how their solution can streamline your month end process, providing you with the necessary breathing space. Contact Fund Admin expert Nini Murphy at nini.murphy@ezops.com to discuss how EZOPS can benefit your operations.