weapons licensing system - queensland police service · a bank reconciliation process allows...

Automatic Reconciliation Process

1 LEARNING OUTCOMES:.........................................................................................................................2

2 TOPICS: ................................................................................................................................................3

3 OVERVIEW OF BANK RECONCILIATION..................................................................................................4

4 REQUIRED PEOPLE................................................................................................................................4

5 AUDIT REQUIREMENTS AND RETENTION OF RECORDS ..........................................................................4

6 COMMONWEALTH BANK SETTLEMENT.................................................................................................5

7 AUTOMATIC RECONCILIATION PROCESS ...............................................................................................5

7.1 GENERATING THE REPORT INFORMATION ...................................................................................................... 57.2 GENERATING THE RECONCILIATION REPORT ................................................................................................... 8

8 RECONCILIATION SPREADSHEET OPERATION ........................................................................................9

8.1 WORKBOOK CONSTRUCTION....................................................................................................................... 98.2 RECONCILIATIONWORKSHEET ..................................................................................................................... 9

8.2.1 Validation and Verification............................................................................................................ 108.2.2 Information and Validation ........................................................................................................... 10

8.3 FORMULAS PRESENT............................................................................................................................... . 108.3.1 Validation and Verification Section ............................................................................................... 108.3.2 Reconciliation Check...................................................................................................................... 12

9 BANK RECONCILIATION ......................................................................................................................12

9.1 CONDUCT RECONCILIATION....................................................................................................................... 149.2 PRINT AND APPROVE RECONCILIATION. ....................................................................................................... 159.3 REVIEW AND AUTHORISE RECONCILIATION................................................................................................... 15

10 DISCREPANCIES IDENTIFIED ................................................................................................................16

10.1 WARS AND COMMBANK DO NOT MATCH.................................................................................................... 1610.2 WARS AND QSS BANK STATEMENT DO NOT MATCH. .................................................................................... 2010.3 COMMWEB AND QSS BANK STATEMENT DO NOT MATCH. ............................................................................. 20

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Automatic Reconciliation v1.doc Page 2 of 20

1 Learning Outcomes: At the completion of this module the learner should be able to:

Generate the correct WARS report for bank reconciliation.

Generate the correct Commonwealth Bank Report for bank reconciliation.

Generate the Automatic Reconciliation Report.

Understand the Formulas present in the automatic reconciliation spreadsheet.

Reconcile payments between WARS, Commonwealth Bank and Queensland SharedService Bank Statement.

Investigate and Explain inconsistencies with the bank reconciliation.

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2 Topics: The following topics will be covered within this learning module:

Overview of bank reconciliation

Required people

Audit requirements and retention of records

Commonwealth Bank settlement


Identifying and explaining inconsistencies

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3 Overview of Bank Reconciliation A bank reconciliation process allows Weapons Licensing, and in part the Queensland PoliceService, to display, evaluate and monitor the amount of money being transacted due to theWeapons Applications Online.

It is important that a bank reconciliation be done at regular intervals to ensure that fundsare accurately recorded or that any inconsistencies between the QPS records and theCommonwealth Bank records are rectified.

The high level flow of the process is:

4 Required People To adhere to the Financial Management Practices Manual (QPS), 3 separate members arerequired to generate the bank reconciliation.

1: Receipting Member – The Receipting Member is the person generating the bankreconciliation report (e.g. For WL, the Refund Officer).

2: Approved Member – The Approved Member is required to validate the BankReconciliation report produced by the Receipting Member, identify, investigate and reportany inconsistencies and finally provide the initial approval for reconciliation. (e.g. For WL,the Office Manager)

3: Authorised Member – the Authorised Member is required to provide final approval andsign off of the bank reconciliation report. (e.g. For WL, the Manager WL)

5 Audit Requirements and Retention of Records There is a requirement that any bank reconciliation reports be available for audit should itbe requested. Therefore any hardcopy signed bank reconciliation reports are required to beheld by the standard Retention of Records period of 7 years.

As the reconciliation report is generated outside an accounting software solution, additionalprecautions need to be implemented for archival and audit purposes.

These include:

Maintaining original un manipulated data.

Maintaining electronic copy of the Bank Reconciliation Report.

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6 Commonwealth Bank Settlement The Commonwealth Bank settlement occurs each day at 17:30 AEST (16:30 AEDT). Thismeans that transactions that occur for WAO from 17:31 AEST will not appear until thefollowing day’s reconciliation.

This is important to note, as these times if incorrect when running the required reports, willaffect the reconciliation process. (I.e. Transactions won’t be listed when they should be.)

7 Automatic Reconciliation Process The below section details the Automatic Reconciliation Process which it to be undertaken forbank reconciliation. A manual process will be required to be undertaken if the automaticprocess fails.

Refer to the Manual Reconciliation Module for information on the Manual ReconciliationProcess.

The automatic reconciliation process uses a pre formatted Microsoft Excel workbook andmacro to assist in the reconciliation process. The workbook also contains formulas toidentify any issues within the process and operates in a similar fashion to the Manualprocess.

Knowledge of the Commonwealth Bank Merchant Administration and the WARS reportingsolution is required to undertake a bank reconciliation as well as a decent understanding ofMicrosoft Excel.

7.1 Generating the Report Information The below section explains how to extract the relevant reports in order to conduct thereconciliation.

This process will be conducted by the Receipting Member.

Step Description Action

1. Run the WARS5.3.09 Online

TransactionDailyReconciliationreport.

2. Ensure theCorrect Date(s)are presentand the CutoffTime is correct.

NOTE: For More information, refer to WARS – 5.3.09 Online Daily Reconciliation.

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3. Select theTotal Link toGenerate theDetail Report.

4. Select the ExcelOption andExport thedocument.

5. Save the file asWARS REPORTand save thefile to**********NOTE: If aprevious fileexists, replacethe file.

6. AccessCommWebMerchantAdministration

Refer to Guide to Commbank for additional information on accessing CommWeb.

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7. Conduct aFinancialTransactionSearchensuring theTransactionState is set toSuccessful andthe From andTo date(s) andtime(s), matchthe WARSreport date(s)and Time(s)

NOTE:By selecting the Transaction State as successful, this will ensure that only successful payment / refundtransactions received by Commonwealth Bank will be retrieved.8. Select the

Button todisplay theresults.

9. SelectDownloadSearch Resultsand save thefile asCommbank.Save the file to******NOTE: If aprevious fileexists, replacethe file.

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7.2 Generating the Reconciliation Report The below section details the steps required to generate the Reconciliation Report using theAutomatic Process.

This process will be undertaken by the Receipting Member.

The benefit of utilising the automatic process, is upon opening the file it automaticallyimports the data from the source sheets (Commbank and WARS REPORT), locks the data,formats the reconciliation sheet, cross references the data and saves a copy of the workbook.

NOTE: Some minor manual formatting may be required prior to printing the report.


1. Open theBankReconciliationTemplate locatedat:

2. Ensure EnableMacro is selected.

3. A source datavalidation ispresent to checkhow old the WARSREPORT andCommbank Data is.Simply press yes toproceed tocontinues runningthe Macro.

A validation is present to ensure that only current files are used within thereconciliation process. The validation is simply a warning to before processing any

information.NOTE:The Time validation is set at 12 hours, this can be amended.If NO is selected, Close the file and ensure NO is selected to save changes.4. CHECKPOINT:

At this stage, there should be a single workbook open named Manual Reconciliation.The workbook will have 3worksheet titled:

All the worksheets will have data contained within them.The Statement and WARS sheets can be viewed however are unable to be edited.

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Unlike the manual process, the macro present in the Automatic Process will save the file into the same directory asthe template. It will save the file with a Date / Time stamp attached.For Example:

8 Reconciliation Spreadsheet Operation The below section details some of the operations of the Automatic Reconciliationspreadsheet focussing on the relevant formulas used to assist in the reconciliation process.

8.1 Workbook Construction The Automatic Reconciliation workbook contains 3 worksheets as identified in the abovesection.

These sheets consist of:

Reconciliation: This is the primary sheet where formulas are present to calculate the totalsas well as a Pass / Fail Indicator. This is the sheet that is to be printed and signed by therelevant parties of Weapons Licensing. As this sheet contains formulas, no cells (unless listedbelow) should be amended.

Statement: This is a data storage sheet for the Commbank report information. It is a lockedsheet and unable to be amended.

WARS: This is a data storage sheet for the WARS report information. It is a locked sheet andis unable to be amended.

8.2 Reconciliation Worksheet

The Reconciliation worksheet consists of pre formatted cells, columns and formulas to assistin the reconciliation process. The Reconciliation sheet divided into 2 main parts being:

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8.2.1 Validation and Verification

This section of the report allows for the high level reconciliation (ie Totals) as well as thesignature blocks and verification of the required parties. It also allows for discrepancies to benoted and explained when required.

8.2.2 Information and Validation

This section details the information contained within the Statement Sheet and the WARSsheet. When the macro is run, the rows are matched on the Merchant TransactionReference and any blank lines indicate the information is missing from either Commbank orWARS. This is the initial validation.

Additionally a Reconciliation Check column is present. This column validates against theamounts paid or refunded, as well as the Case ID (WARS) and the Order Reference(Commbank) for each row.

If the values for WARS and Commbank are the same, a value of Pass will be displayed,otherwise it will display Fail.

8.3 Formulas Present As previously mentioned the Reconciliation sheet has formulas present in order to assistwith the reconciliation process. The formulas are assigned through the macro and thereforeunable to be amended prior to running the report. An explanation of the formulas present isbelow.

8.3.1 Validation and Verification Section The Validation and Verification section of the report contains formulas to gather the totals ofthe Commonwealth Bank purchases and refunds, as well as the WARS purchases and refunds.

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8.3.1.1 Commonwealth Bank Totals

Commonwealth Bank Purchase TotalThe Formula for the Commonwealth Bank Purchase total above, in English would read:=SumIf(Transaction Type Column, “Purchase” ,Amount Column)

Commonwealth Bank Refund TotalThe Formula for the Commonwealth Bank Refund total above, in English would read:=SumIf(Transaction Type Column, “Refund” ,Amount Column)These formulas translated mean: If the name in column M = purchase (or refund) then addthe corresponding figures from column N.

Commonwealth Bank TotalThe formula to calculate the Total in English would read: = Commonwealth Bank Purchasetotal Commonwealth Bank Refund total.This formula translated means: Total = the total of purchases minus ( ) the total of refunds.

8.3.1.2 WARS Totals

WARS Bank Purchase TotalThe Formula for the WARS Bank Purchase total above, in English would read:=Sum(Payment Amount column)

WARS Bank Refund TotalThe Formula for the WARS Bank Purchase total above, in English would read: =Sum(RefundAmount column)These formulas translated mean: Add the values present for Column F (or G).

WARS TotalThe formula to calculate the total in English would read: =Wars Bank Purchase Total – WARSBank Refund Total

This formula translated means: Total = the total of purchases minus ( ) the total of refunds.

Reconcile Total Match

The formula to locate the Reconcile Total Match is:=IF(AND(Bank Statement Credit – Bank Statement Debit = WARS Total, WARS Total =Commonwealth Bank Total), “Pass”, “Fail”).

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This formula translated means: If the WARS Total = the difference between the BankStatement Credit and the Bank Statement Debit, and if the WARS Total = Commonwealthbank Total, then it’s a Pass otherwise it’s a Fail.

Conditional formatting is present within the Reconcile Total Match cell. If the value displayis Pass then the cell will display Green, otherwise it will display as Red which refers to aFailure.

Note: The Bank Statement Credit and Debit information is a text field and is manuallyentered by a staff member. This process is described below.

8.3.2 Reconciliation Check

As stated above, the initial validation occurs upon opening the spreadsheet. The macro willmatch WARS and Commbank rows based on the Merchant Transaction Reference. Anadditional validation occurs within the Reconciliation Check column.

The formula present, in English would read: =IF(AND(Payment amount – Refund amount =Amount,Case Id = Order Reference), “Pass”, “Fail”)

Translated this reads: If the WARS Payment Amount (F**) minus ( ) the WARS Refundamount (G**) equals (=) the Commbank Amount (M**) , and if the WARS Case ID (H**) = theCommbank Order Reference (N**) then display Pass, otherwise display Fail.

Like the manual process, conditional formatting is present within the Reconciliation Checkcolumn. If the value display is Pass then the cell will display Green, otherwise it will displayas Red which refers to a Failure.

Total Line:

A total line is present within the Information and Validation section. The totals simplycalculate the total purchase amounts for Commbank and WARS as well as the total refundamount for WARS.

WARS Payment Amount: The formula to calculate the WARS Payment Amount Total in English would read:=Sum(WARS Payment Amount Column).

Translated, this means, add all the values within the WARS Payment Amount Column.

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WARS Refund Amount: The formula to calculate the WARS Payment Amount Total in English would read:=Sum(WARS Refund Amount Column).

Translated, this means, add all the values within the WARS Refund Amount Column.

Commbank Payment Amount: The formula to calculate the WARS Payment Amount Total in English would read:=SUMIF(Transaction Type,"Purchase",Amount Column) SUMIF(TransactionType,"refund",Amount Column)

Translated, this means, add the total amount of purchases, then subtract the total amountof refunds.

9 Bank Reconciliation As stated earlier, bank reconciliation allows Weapons Licensing to display, evaluate andmonitor the amount of money being transacted due to the Weapons Applications Online.

It is important that the bank reconciliation be done at regular intervals to ensure that fundsare accurately recorded or that any inconsistencies between the QPS records and the Bankrecords are identified and rectified within a timely manner.

The below sections detail the steps to verify and reconcile the information between theWLMS, Commbank and QPS Bank Statement.

Unlike the Manual Process, the Automatic process formats the page and conducts areconciliation based on matching requirements. This will make the process of reconciliationquicker as only minor manual checks and data entry are required.

This process will be undertaken by the Approved Member.

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9.1 Conduct Reconciliation This process will be undertaken by the Approved Member.


Retrieve the QPS Bank Statementreceived via e-mail.

NOTE: This statement will be received daily and 10:30am (approx).

The WL staff member will be required to search the QPS Bank Statement for the WL Merchant Reference Number of: 5353 1094 9334 3050 to collect the below information.

NOTE:The Bank Statement received via e-mail is similar to any bank statement received. It will contain four important values for WL to conduct reconciliation. Date: This is the date of the transaction and should match the Commbank and WARS date values. Transaction Detail: This will contain the Merchant Reference Number (i.e. Weapons Licensing account code)Debit: This will display a value on days where only refunds have been processed or when the refunds were more than the purchase amount. Credit: Will display the amount of money deposited into the QPS account (minus any refunds processed).

1. Type the QPS Bank Statement Credit / Debit into the relevant fields of the ReconciliationSheet.

2. Validate Totals.

An initial check of the totals is required to be undertaken. If the Commonwealth Bank Total, WARS Total and Bank Statement Credit are the same, this indicates that the total values are correct. If the totals do not match, investigation into the discrepancy will need to be undertaken.

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3. Validate the ReconciliationCheck.

As described earlier, where Pass is present within the reconciliation check, it indicates that the Merchant Transaction Reference, the payment amounts and the Case Id’s all match, therefore no further investigation or validation is required.

Where the cell indicates a Failure, this will be due to one (1) or more of the criteria not matching and investigation will need to be undertaken.

NOTE: Refer to Discrepancies Identified section for advice on how to investigate / rectify discrepancies.

9.2 Print and Approve Reconciliation. When the Reconciliation Process has been completed, the document will be to be Passed /Failed, printed and signed by the Approved Member.


1. Unlike the Manual Process, A Formula is present to Pass / Fail the Reconcile Total Match (as mentioned above). If the need arises, this field may be manually updated from Pass to Fail or Vice Versa depending on the requirement.

NOTE:In the instance of a failed reconciliation, a notes section has been provided. This will allow information to be recorded as to what has caused the failure. The possible cause of failures will be described in the Discrepancies Identified section of this manual.

2. Date the report. Print a copy and sign the relevant area.

3. The hardcopy report is then to be sent to the Authorised Member for final review and authorisation.

9.3 Review and Authorise Reconciliation. The Authorised Member is required to review and authorise the Reconciliation Report.


1. Review the informationcontained within the report.

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2. Once reviewed, sign the relevant section of the report.

Reconciliation has now been completed, and the hard copy reference should be filed.

10 Discrepancies Identified The below section will identify common causes of discrepancies that may occur during thereconciliation process. It is a guide to assist in the reconciliation process and should beupdated over time with additional information when identified by the business.

NOTE: In all instances of an inconsistency, the below investigation should be undertaken.This will help identify if the problem exists within the Commonwealth Bank or within theWLMS.

10.1 WARS and Commbank do not match.

It is possible as stated earlier, that an N/A value can be present.This will indicate that the Merchant Reference Number is containedin WARS is not present in the Commbank information (or vice versa).

Causes:

1: A common cause will be to do with the Batch Time cutoff fromCommbank. It is possible that an application will be submitted atthe cutoff period of the Commonwealth Bank settlement time. Thiswill mean that the case was created in the CRM however will appearin the following day’s settlement to Commonwealth bank.

Verification:


1. Located the conflictingMerchantTransactionnumber from the WARS information (or Commbank if required)

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2. Login into CommWeb MA and conduct a FinancialTransactionSearch on the conflictingMerchantTransactionNumber.

NOTE: Enter a wide date range to allow for the MerchantTransactionReference to be Identified.

3. Select Submit to View the results.

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4. To Access the Case ID reference, click on the Order ID hyperlink.

By accessing the Order Details, you are able to locate additional information including the Order Reference number (WLMS Case ID).

This Order Reference number can be used to search WLMS for Case Data and to check the dates/times of the case creation.

Solutions:1: Where a Merchant Transaction number is unable to be located through CommWeb, Commonwealth Bank Settlement and Reconciliation Support should be contacted. Refer to CommWeb Manual for assistance.

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2: Where a Case ID cannot be located through the WLMS, Sword Support should be contacted to attempt to locate the problem.

3: Where the transaction is located in the next day’s batch, notes are required to be made on the reconciliation page, to explain the variance. For Example: Merchant Transaction Reference 2354 (WARS) included in CommWeb Batch ID 2012807.

NOTE: In all instances of an inconsistency, the above investigation should be undertaken to identifyif the problem exists with the Commonwealth Bank or within the WLMS.

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10.2 WARS and QPS Bank Statement do not match.

It is possible that an inconsistency may be present between the WARS totals and the QSSbank statement total.

Causes:

1: The most common cause will be to do with the Batch Time cutoff from Commbank as perabove.

Solution:

1: In the instance where the QSS Bank Statement does not match, finance should becontacted to help identify the inconsistency.

10.3 CommWeb and QPS Bank Statement do not match.

It is possible that an inconsistency may be present between the CommWeb totals and theQSS bank statement total, although this should be extremely rare.

Causes:

1: It is unsure what may cause this issue. It is assumed that the Cutoff time for settlementwill be the cause.

Solution:

1: In the instance where the QSS Bank Statement does not match, Commonwealth Bankshould be contacted to help identify the inconsistency.

NOTE: In all circumstances where an inconsistency is identified, this will need to be notedon the reconciliation report.

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