Reconciliations Unit came into being in 2005 and till May 31, 2009 was working under Finance & Accounts Division. With the opening of more new Branches, Management decided to segregate Reconciliations Unit. It was separated with effect from June 01, 2009 and put under Operations Division with a direct reporting line to the Deputy Managing Director, Operations. This was done so as to keep a closer watch on Branch financial activities. From then on this Unit has been in high gear for reconciliation of all Nostro Accounts, Bangladesh Bank FCY Clearing Accounts, Bangladesh Bank LCY Clearing Accounts, CD/STD Accounts, liquidations and reconciliations of DD Wage Earners’ remittance account. Till May 31, 2009 the Unit was running their activities with four staff members which now stands at eight including the Head.
As a first step all old computers were replaced and adequate logistic improvements were made for the existing staff. 19 Journals (each journal consisting of 75-90 pages with 30 Demand Draft entries in each page) of DDs of Sonali Bank (Wage Earners’ Remittance) through their Shilpa Bhaban Corporate Branch remained unreconciled till May 31, 2009. The Unit through a team drive succeeded in total reconciliations of 19 Journals of DDs of Sonali Bank in less than a year and also balancing of a majority of unreconciled items in old GL Suspense Accounts. A continuous monitoring and intense persuasion by Reconciliations Unit has improved the reconciliations status greatly and created a steeper alertness/quick response on the part of Operations Division too. Despite constraints, reconciliation of all Nostro Accounts, Bangladesh Bank FCY & LCY Accounts were updated. CD/STD Accounts were also completely streamlined by April 2010.
The second most important step was getting Branch reconciliation statements in time. As a first step emails/letters were issued to all Branches in June 2009 requesting Branches to send their reconciliation statements by the 10th of every month (now advanced to 7th of every month). Also under a new system all mismatches/gaps (Suspense & Product GL) of Branches are being posted in an IT created format for being resolved by IT Division within the last week of every month. To streamline this matter, it was agreed upon that all Branch reconciliations issues would be routed through Reconciliations Unit by Branches and this would in turn be posted in the IT Format for resolving. Vis-a-vis the old unreconciled items of the main Branches, each Branch was called for a separate sitting with IT Division. In these meetings a consensus was reached between Branches and IT Division ascertaining problems and the Branch to resolve. All the Branches have resolved their old pending unreconciled items by December 2009 under this formula of Reconciliations Unit.
As per requirements of foreign exchange risks for reconciliation of Nostro Accounts, the Unit submits a comprehensive review of all Nostro Accounts containing a list of all unreconciled entries to Bangladesh Bank every quarter. Officers of this Unit have no transactions authority. Since no entry has remained unreconciled till date for more than three months, no provision was required to be made as per Bangladesh Bank guidelines. June- and December-end reviews with necessary clarification of External Auditors of the Bank concerning the correctness of the status of unreconciled entries is submitted timely. A monthly statement showing position of unreconciled Nostro Account entries is submitted to Bangladesh Bank by the 7th of every month and to Bank Management by the 15th which includes of all other accounts too. This is now advanced to the 10th of every month.
The overall reconciliation status of Dhaka Bank now stands much improved. As on date the Reconciliations Unit has caused the threshold and is in a position to shoulder greater responsibilities for the Bank’s continued and healthy growth.
Present status of Reconciliations:
Nostro Accounts: All 27 Accounts are fully reconciled up to September 17, 2012.
BBK Clearing Account for LCY- BDT: – Fully reconciled up to September 30, 2012.
CD/STD Accounts maintained by Branches & HO (34 accounts): Fully reconciled
up to September 30, 2012.
ATM Settlement Accounts (04 Accounts): All ATM settlements accounts are fully
reconciled up to September 30, 2012.
Balancing of Suspense Accounts of all Branches (69 Branches) of the Bank: As of September 30, 2012, there is mismatch in 04 GL Heads which are under process of being resolved.
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