Reconciliation Function

Settlement bank account controlled by the State Treasurer
(Generally State Agencies and Universities)

• Wachovia Bank is the primary depository bank, with Wachovia Connection being the tool used to access the account activity.
   
• The participant has a settlement account that is designated as a Zero Balance Account (ZBA).
   
• On settlement date, funds are credited to the account, with the total of the funds, net of chargebacks debited that day, being swept to the State Treasurer’s account that night.
   
• The single ZBA bank account accommodates all of the participant’s merchant numbers; therefore the daily transfer to DST is only one amount daily.
   
• Settlement for Visa and MasterCard transactions are normally one banking day after transmission to STMS.
   
• Settlement for Travel and Entertainment cards (e.g., American Express) are normally two banking days after transmission to STMS.
   
• In addition to Wachovia Connection access, hard copy bank statements are normally sent directly to the participant at month-end, to assist in reconciliation.
   
• Even though it is a ZBA account (has a zero balance at the day’s close), it is the participant’s responsibility to reconcile the bank account statement to ensure that there are no unauthorized or erroneous transactions.

Settlement bank account controlled by the Participant
(Generally Community Colleges and Local Units of Government)

• The depository bank is generally the same bank used for the entity’s locally-controlled funds.
   
• For community colleges, merchant card receipts can represent both State and local funds. All receipts are normally deposited to the college’s local bank account initially, with the State’s portion then being identified and transferred to the State Treasurer’s account.
   
• If Wachovia Bank is used as the depository bank, Wachovia Connection is the tool used to access the account activity, and settlement is one banking day after transmission to STMS (for Visa and MasterCard transaction).
   
• If SunTrust Bank is used as the depository bank, SunTrust’s online system is the tool used to access the account activity, and settlement is one banking day after transmission to STMS (for Visa and MasterCard transaction).
   
• If a bank other than Wachovia or SunTrust Bank is used as the depository bank, that bank’s online system is the tool used to access the account activity, and settlement is two banking days after settlement, for all cards, including Visa and MasterCard.
   
• In addition to online access, hard copy bank statements are normally sent directly to the participant at month-end, to assist in reconciliation.
   
• The settlement account may or may not be a zero balance account (ZBA), as determined by the participant’s needs and reporting requirements.

Reconciliation Tools - Online Systems

• MyMerchant View - Web-based system provided by STMS, providing a variety of reports, and allowing the participant to view card activity. https://mymerchantview.net/mmv/Operations
   
• Wachovia Connection - Web-based system provided by Wachovia Bank allowing the participant banking at Wachovia to view settlement activity in the bank settlement account. http://www.wachovia.com/wachoviaconnection
   
• Cash Management Control System (CMCS) - System provided by OSC to State agencies to report credit card deposits to its CIT bank account. Amounts reported are to be the total of the amount swept, as viewed on Wachovia Connection, one day after settlement. http://www.ncosc.net/sigdocs/sig_docs/cash_mgmt/sect_5.html
   
• Core Banking System - System provided by DST allowing State agencies to view their CIT bank account activity, which reflects both: 1) the daily amount swept to the State Treasurer's bank account; and 2) the daily amount certified by the agency on CMCS to its CIT bank account. http://www.nctreasurer.com/dsthome/FinOperations/CoreBanking
   
• Common Payment Service (CPS) Reports - Available to those participants utilizing the Common Payment Service (CPS), including Virtual Credit Card Terminal (VCCT) reports. http://www.ncosc.net/SECP/SECP_CPS.html

Most Commonly Used Reconciliation Reports

Settled Transactions

Reconciliation Responsibilities of Participant

• Verify that all transactions authorized throughout the day are batched and transmitted to STMS, through POS transmission or though CPS (or other gateway service).
   
• Verify that for all batches transmitted to STMS, funds are received at the depository bank, for the correct amount and on the expected date.
   
• Perform a reconciliation between internally-generated reports to transaction reports on MyMerchantView.
   
• Perform a reconciliation between CPS transaction reports to transaction reports on MyMerchantView (if Common Payment Service is used).
   
• Perform a reconciliation between MyMerchantView funding reports and Wachovia Connection reports (settlement of funds).
   
• Perform a reconciliation between amount of the daily sweep from the participant’s settlement bank account to the DST bank account, as viewed on Wachovia Connection, to amount certified on CMCS, as viewed on DST’s Core Banking System (certified to the CIT bank account).
   
• Perform a reconciliation between Chargebacks reflected on MyMerchantView to Chargebacks viewed on Wachovia Connection.
   
• Perform a monthly reconciliation of the monthly bank statement (for the settlement account) to ascertain that there are no unaccounted for transactions. (In the case of a ZBA account, the balance will always be zero at the close of each day.)
   
• Verify the accuracy of the monthly STMS invoice before payment.

Reconciliation Tips

• Participants that are required to certify (report) funds on CMCS should certify the actual amount total that is swept (transferred) from its dedicated ZBA bank account to the State Treasurer’s bank account daily.
   
• The amount swept nightly to DST from a ZBA account is the net of all credits for all merchant numbers, less the debits for all chargebacks for all merchant numbers.
   
• For multiple merchant numbers settling to the same ZBA account, there will be only one amount swept to DST daily, the net total for all merchant numbers.
   
• State agency participant should certify on CMCS the amount as viewed on Wachovia Connection, not the batch amount that was transmitted to STMS. (The amount may be different due to unexpected chargebacks being posted.)
   
• Participant should reconcile transactions as reflected on MyMerchantView with internal reports showing batches transmitted to STMS, as well as to Wachovia Connection reports.
   
• Participants having multiple merchant numbers, for decentralized departments, should devise a reconciliation process between each decentralized department and the central fiscal office that is responsible for reporting the deposits.
   
• If American Express cards are accepted, settlement does not come from STMS, but directly from AmX. Settlement is normally two banking days after transmission, instead on one banking day. Procedures must be in place to view when the funds are actually received (e.g., through Wachovia Connection), and certify (report) on CMCS the amount that was actually swept to DST. This means that transactions authorized on a given day will have settlements on different days (Visa and MasterCard on one day, and AmX on a different
  day).
   
• Transactions authorized on weekends or holidays could have different settlement dates.
   
• DST’s Core Banking System (CB$) can be used to verify that the amount certified by a State participant to its CIT account is the same as the amount that was swept from the ZBA settlement account. The amount swept by Wachovia is normally available for viewing on CB$ the following day by 10:00 a.m.