Detail Verification - Reporting Variances and No Variances

Owned by Nancy Cohn (Deactivated)
Last updated: Feb 14, 2024 by Kinga Huszno
3 min read

ISTAR Schedules (Position, Activity, and VBY) are in-balance only when NO VARIANCES occur on the Verification Between Years report.

The Detail VBY report utilizes beginning balance and transaction activity (Lot Activity) to calculate an Expected Statement Value. The Expected value is compared to the current year (CY) Statement Value as calculated by ISTAR. Discrepancies are displayed in the VARIANCE column, identifying situations where transaction activity) or NAIC-pricing is incomplete or not present.

Set Tolerances

For the Detail VBY report, set the Tolerance field (tag 7500) in the Advanced Reporting Tags section of the panel, to the value, 1.00. With this value, the report eliminates positions that are in-balance (that is, within $1.00) and only material VARIANCES display for research and resolution. You can set the Tolerance field to 0.00 to display all securities.

Resolve Material Differences for Reported Variances

The following table lists issues, reports, and corrective actions to take to resolve material variances, prior to rerunning the ISTAR Refresh/Valuation process, for several reported VARIANCE scenarios.

Issue

 Report

Corrective Action



Issue

 Report

Corrective Action



ESTAR transaction activity has not been replicated to ISTAR

Current Cost Position

List Lot Activity (by Entity / Asset)

Verify ISTAR Refresh Date is greater than or equal to STAR Accounting Date:

  • If greater, then contact Eagle (See note).

  • If less than or equal, then run the ISTAR Refresh/Valuation for the Month End Date.

NOTE: ESTAR data is not identifiable to ISTAR and must be deleted: the Account/Asset must be rebuilt on ESTAR, before the ISTAR Refresh/Valuation is performed.

CY Statement Value = ZERO

List Lot Valuation (by Entity / Asset)

Correct the missing Price source and/or Price date information for the Entity/Asset.

VARIANCE: Expected Value does not = CY Statement Value

Current Cost Position

List Lot Activity (by Entity / Asset)

Validate correct transaction processing on ESTAR (Example: Wash Sales, Global Processing not run that would create Unit-breaks); then:

  • Correct ESTAR.

  • Run ISTAR Refresh/Valuation.

  • Contact Eagle if problem persists.

Address Other ISTAR Variances

You must address other ISTAR variances, as reported. The Summary By Country / Verification Between Years VARIANCE should agree to the Detail-VBY by Client VARIANCE (or by Account) when run at either the Client (or Entity) level.

Running ISTAR Refresh/Valuation for all Client-Entities usually resolves situations where a SBC/VBY variance is not equal to the Detail-VBY total-variance amount. If it does not resolve the situation, contact Eagle.

Perform Additional Reconciliation Steps

Annual and Quarterly Schedules should be "ticked and tied" (reconciled) monthly to ensure Position and Activity schedules are in-balance. Activity schedules should be balanced to the General Ledger to ensure financial statements are in agreement.

The following table lists the schedules to use for reconciliation of specific reports and schedules.

Report/Schedule

Schedules Used to Reconcile

Report/Schedule

Schedules Used to Reconcile

Summary By Country / Annual & Quarterly
Verification Between Years

Annual and Quarterly Schedules:

  • Schedule D – Part 1

  • Schedule D – Part 2 – Section 1

  • Schedule D – Part 2 – Section 2

  • Schedule D – Part 3 (Annual & Quarterly)

  • Schedule D – Part 4 (Annual & Quarterly)

Quarterly Schedule D – Part 1B – Position and Activity information

Annual and Quarterly Schedules:

  • Schedule DA – Part 1 (Annual & Quarterly)

  • Schedule DA – Part 2 (Quarterly)

  • Schedule DA – Part 3 – Supplement

  • Schedule DA – Part 4 – Supplement

Annual Schedule DB A,B – Verification Between Years

Annual and Quarterly Schedules:

  • Schedule DB – Part A – Section 1 (Annual & Quarterly)

  • Schedule DB – Part A – Section 2 (Annual)

  • Schedule DB – Part B – Section 1 (Annual & Quarterly)

  • Schedule DB – Part B – Section 2 (Annual)

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