Fidelity National Financial, Inc. · NYSE:FNF
Fidelity National Financial — SPAC Merger (May 2018)
35 slides from Fidelity National Financial's SPAC merger presentation, May 2, 2018
Slide 1: Escrow Trust Accounting
Escrow Trust Accounting Fidelity National Financial
Slide 2: Escrow/Trust Accounting
Escrow/Trust Accounting Your Role: Managing large sums of money during closing transactions Safeguarding funds -assures proper balances in bank -assures proper procedures are followed
Slide 3: Escrow/Trust Accounting
Escrow/Trust Accounting I. What is an Escrow Reconciliation II. Importance of a 3-Way Reconciliation III. Defining and Clearing Reconciling Items IV. Fraud and Theft Prevention V. Final Thoughts
Slide 4: I. What is an Escrow Reconciliation
I. What is an Escrow Reconciliation 2-way Reconciliation – Comparing bank balance with book (computer) balance.
Slide 5: I. What is an Escrow Reconciliation
I. What is an Escrow Reconciliation 2-way Reconciliation – Comparing bank balance with book (computer) balance. 3-way Reconciliation – Comparing bank balance with book (computer) balance with trial balance.
Slide 6: I. What is an Escrow Reconciliation
I. What is an Escrow Reconciliation 2-way Reconciliation – Comparing bank balance with book (computer) balance. 3-way Reconciliation – Comparing bank balance with book (computer) balance with trial balance. – Unless your 2-way reconciliations balances to zero, it is your fiduciary responsibility to
Slide 7: I. What is an Escrow Reconciliation
I. What is an Escrow Reconciliation 2-way Reconciliation – Comparing bank balance with book (computer) balance. 3-way Reconciliation – Comparing bank balance with book (computer) balance with trial balance. Trial Balance - to determine where the remaining funds should be allocated. Reconciling Items
Slide 8: II. Importance of 3-way Reconciliation
II. Importance of 3-way Reconciliation Great management tool
Slide 9: II. Importance of 3-way Reconciliation
II. Importance of 3-way Reconciliation Great management tool Assures proper balances in bank
Slide 10: II. Importance of 3-way Reconciliation
II. Importance of 3-way Reconciliation Great management tool Assures proper balances in bank Assures proper procedures are followed
Slide 11: II. Importance of 3-way Reconciliation
II. Importance of 3-way Reconciliation Great management tool Assures proper balances in bank Assures proper procedures are followed Assists in the prevention of FRAUD and THEFT!!!
Slide 12: III. Defining and Clearing of Reconciling Items
III. Defining and Clearing of Reconciling Items Deposits in Transit Outstanding Checks Negative Balances on the Trial Balance Bank Charges/Miscellaneous fees
Slide 13: III. Defining and Clearing of Reconciling Items
III. Defining and Clearing of Reconciling Items Deposits in Transit – Deposits on books that have not cleared the bank: anything over 72 hours is considered aged. This allows for refinances – 3 day right of rescission.
Slide 14: III. Defining and Clearing of Reconciling Items
III. Defining and Clearing of Reconciling Items Deposits in Transit – Deposits on books that have not cleared the bank: anything over 72 hours is considered aged. This allows for refinances – 3 day right of rescission. Outstanding Checks – Checks issued that have not cleared the bank: most become st
Slide 15: III. Defining and Clearing of Reconciling Items
III. Defining and Clearing of Reconciling Items Deposits in Transit – Deposits on books that have not cleared the bank: should never be over 30 days old. Outstanding Checks – Checks issued on books that have not cleared the bank: most become stale after 12 months. Negative Balances on Trial Balance
Slide 16: III. Defining and Clearing of Reconciling Items
III. Defining and Clearing of Reconciling Items Deposits in Transit – Deposits on books that have not cleared the bank: anything over 72 hours is considered aged. This allows for refinances – 3 day right of rescission. Outstanding Checks – Checks issued that have not cleared the bank: most become st
Slide 17: Bank Reconciliation Statement
BANK RECONCILIATION STATEMENT: FOR THE PERIOD BEGINNING 3/1/18 AND ENDING : 3/30/18: Bank Account: X3701 BOOK BALANCE COMPUTATION: Beginning Book Balance (3/1/18) $56,565.93 Add: Current period deposits 108,252.84 Wire transfer deposits 318,709.52 Less: Current period checks 478,720.67 BOOK BALANCE
Slide 18: Outstanding deposits as of 3/30/18
Outstanding deposits as of 3/30/18: Transaction date: File# Payor Amount 7/25/08 08-201 Sam Bass 500.00 3/01/18 18-1922 Emma White 3,000.00 3/30/18 18-1975 Linda Mead 2,000.00 Total Outstanding $5,500.00
Slide 19: Escrow Account Management: Outstanding checks
ESCROW ACCOUNT MANAGEMENT: Outstanding checks as of 3/30/18: Number Date File Payee Amount 0482 01/10/15 15-0009 State Farm $ 600.00 1079 05/09/17 17-0145 Smithtown HOA $ 525.86 1984 09/09/17 17-1600 Mary Smith $ 500.00 2001 11/11/17 17-1803 IRS $ 2,000.00 2013 12/23/17 17-1914 BOA $ 55,323.43 2018
Slide 20: Escrow Account Management: Trial Balance
ESCROW ACCOUNT MANAGEMENT: Trial Balance as of 3/30/18 (EOM) File Buyer Last Activity Balance Firm Opening Balance 01/01/07 100.00 08-201 Sam Bass 07/25/08 500.00 17-097 Claire Andrews 08/15/17 3,097.79- 17-109 Dean Weeks 01/30/17 49.00 17-136 Rick Matta 02/01/17 49.00 17-143 Kim Francis 02/01/17 98
Slide 21: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft External Prevention and Internal Prevention
Slide 22: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft External Prevention - Positive Pay - An automated procedure of sending disbursed check information (check # and amount) to the bank each day for comparison to checks being presented for payment.
Slide 23: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft External Prevention - Positive Pay - An automated procedure of sending disbursed check information (check # and amount) to the bank each day for comparison to checks being presented for payment. - Secure Checks – If using blank stock paper make sure they have security fe
Slide 24: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft External Prevention - Positive Pay - An automated procedure of sending disbursed check information (check # and amount) to the bank each day for comparison to checks being presented for payment. - Secure Checks - Includes microprint signature lines, chemical protection,
Slide 25: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft External Prevention - Positive Pay - An automated procedure of sending disbursed check information (check # and amount) to the bank each day for comparison to checks being presented for payment. - Secure Checks - Includes microprint signature lines, chemical protection,
Slide 26: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft External Prevention - Positive Pay - An automated procedure of sending disbursed check information (check # and amount) to the bank each day for comparison to checks being presented for payment. - Secure Checks - Includes microprint signature lines, chemical protection,
Slide 27: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft Internal Prevention - Performing a “3-Way” Bank Reconciliation on at timely basis
Slide 28: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft Internal Prevention - Performing a “3-Way” Bank Reconciliation on at timely basis - Clearing Reconciling Items
Slide 29: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft Internal Prevention - Performing a “3-Way” Bank Reconciliation on at timely basis - Clearing Reconciling Items - Separation of Duties – Trust cannot replace controls
Slide 30: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft Internal Prevention - Performing a “3-Way” Bank Reconciliation on at timely basis - Clearing Reconciling Items - Separation of Duties – Trust cannot replace controls - Reconciliations critically reviewed monthly by management
Slide 31: IV. Preventing Fraud & Theft
IV. Preventing Fraud & Theft Internal Prevention - Performing a “3-Way” Bank Reconciliation on at timely basis - Clearing Reconciling Items - Separation of Duties – Trust cannot replace controls - Reconciliations critically reviewed monthly by management - Rotation of employee duties and management
Slide 32: Final Thoughts
Final Thoughts Taking a few extra steps to safeguard your account
Slide 33: Final Thoughts
Final Thoughts Taking a few extra steps to safeguard your account Taking a little extra time to reconcile the account
Slide 34: Final Thoughts
Final Thoughts Taking a few extra steps to safeguard your account Taking a little extra time to reconcile the account Taking a few extra minutes to review the reconciliation
Slide 35: Final Thoughts
Final Thoughts –YOU ARE LIKE A BANK: You are legally entrusted with millions of dollars; You are legally responsible for every single penny Focus on your accounting – it’s not sexy, but it is CRITICAL