P&L Reconciliation Tool and BAU Process for a Tier 1 Investment Bank

Tier 1 investment bank | Data, digital & technology | Private sector

The challenge: A Tier 1 investment bank had an unresolved difference of twenty-two million euros between its management accounts and financial accounts for London Rates, with no Business as Usual tool in place to perform reconciliation at a contract level. The client required that the breaks making up the difference were thoroughly analysed, that New Link Consulting offered recommendations for how they should be cleared, that control issues were identified and efficiently remediated, and that a Business as Usual tool was developed to enable full reconciliation at a contract level.

What New Link Consulting did: New Link Consulting provided an experienced accountant with substantial knowledge of middle office procedures, particularly in exchange-traded and over-the-counter futures and options. New Link Consulting proactively sought out key subject matter experts and other contacts to source the necessary data, and was a primary driver of the investigation methodology throughout the engagement. New Link Consulting built out a Year-to-Date Profit and Loss reconciliation process at a more granular level, centred around movements in the balance sheet.

The outcome: A robust Business as Usual reconciliation tool was successfully implemented, resolving the twenty-two million euro discrepancy between the management and financial accounts. Key control issues were identified and formally handed over to the line through a structured handover process. The successful implementation of the tool and the reconciliation methodology also enabled New Link Consulting to strengthen relationships with key individuals across the client's networks.