Quarterly Account Reconciliation and Custodian Statement Review

Quarterly inspection template for reconciling internal account records against custodian statements to identify missing trades, quantity errors, pricing variances, and other books-and-records discrepancies before closeout.

Scope, Period, and Statement Completeness

• Reconciliation period matches the quarterly review window
  Record the quarter-end date and reconciliation period covered by this inspection.
• All in-scope accounts are listed and reviewed
  Select all accounts included in this quarterly reconciliation.
• Custodian statements received for all in-scope accounts
  Verify statements were received for every account in scope and for the correct statement date.
• Internal ledger and subledger reports are complete
  Confirm the internal books, trade blotter, position reports, and cash activity reports are complete for the review period.
• Exceptions from prior quarter are carried forward and tracked
  Verify unresolved items from the prior quarter are included in the current review with current status.

Trade and Transaction Reconciliation

• All executed trades appear on both internal records and custodian statements
  Check for missing trades, duplicate entries, or unmatched executions between systems.
• Trade quantities match between internal records and custodian statements
  Enter the number of quantity breaks identified in the quarter.
• Trade dates and settlement dates are aligned
  Verify trade date, settlement date, and status are consistent across internal and custodian records.
• Corporate actions and income events are properly reflected
  Confirm dividends, interest, splits, mergers, and other corporate actions are captured accurately.
• Unmatched or missing trades are documented with root cause
  Summarize any unmatched items and the reason they occurred.

Position, Quantity, and Pricing Variance Review

• Position quantities agree across internal and custodian records
  Verify holdings quantities match for each security or asset class in scope.
• Quantity variances are within approved tolerance
  Enter the largest quantity variance observed during the review.
• Security pricing matches approved pricing source
  Confirm prices used in internal records match the approved pricing source or documented valuation policy.
• Pricing variances are identified and explained
  Document any pricing differences, including source used and reason for variance.
• Accrued income and cash balances reconcile
  Verify accrued dividends, interest, fees, and cash balances reconcile to the custodian statement or are explained.

Open Items, Aging, and Exception Management

• Open reconciliation items are aged and categorized
  Confirm all open items have an aging bucket and exception category assigned.
• Critical breaks are escalated within required timeframe
  Verify material or high-risk breaks were escalated to the appropriate supervisor, operations lead, or compliance contact.
• Stale items older than policy threshold are identified
  Enter the number of open items exceeding the internal aging threshold.
• Root cause analysis completed for material exceptions
  Confirm material breaks have a documented root cause and remediation plan.
• Corrective actions have owners and due dates
  List the corrective actions, assigned owner, and target completion date for each unresolved item.

Review Controls, Approval, and Sign-Off

• Reviewer independently validated the reconciliation
  Confirm a second reviewer or supervisor performed an independent review where required by policy.
• Supporting workpapers are retained and traceable
  Verify workpapers, statements, exception logs, and evidence are stored in the approved repository.
• Review date
  Record the date and time the quarterly review was completed.
• Inspector signature
  Signature of the person completing the reconciliation review.
• Approver signature
  Signature of the reviewer or approver, if required by policy.