Chapter 13 – Year 2000 audit

This module allows you to perform validation checks on specific dates stored within the Financial Institution's software package.

0. Introduction

0.1 Description of Audit Tests

0.2 Suggested sequence and frequency of using this module

1. Year 2000 Date Validation Parameters

2. Perform Year 2000 Date Validation Audit

3. Print Year 2000 Date Validation Results

4. Clear Year 2000 Audit Files

0. INTRODUCTION

0.1 Description of Audit Tests

The main function of this module is to check the validity of specific dates which are stored in the Financial Institution's software package. For example, you might expect the 'Arrears Next Payment Due Date' for each loan account to be within a particular date range. If it was not in this range you would probably be interested in investigating why. Also, you would expect all member transactions on the system to be within a particular date range and would be interested in any that fall outside this range.

This type of audit is important as it verifies some of the date data items stored in the Financial Package. You need to be confident in the integrity of the data for your own satisfaction and because CAPS relies on this data in its audits.

The user is required to enter valid date ranges for particular dates stored in the Financial Institution's software to aid in testing for year 2000 compliance and to verify that the dates CAPS relies on are correct. This module is not solely designed for year 2000. The date validation checks can be performed at any stage to ensure the integrity of dates stored within the Financial Institution's system.

The Financial Institution's software stores dates in an internal format and then converts them to an external date format for display, input and reporting.

The date checks that CAPS performs include:

  • Effective Dated Transactions between dates x and y.
  • Members are aged between x and y years.
  • Next Due Date for Loan Arrears is in a particular date range
  • Accounts are opened between dates x and y
  • Accounts are closed between dates x and y
  • General Ledger postings are between dates x and y
  • Periodical Payment Dates are between x and y dates
  • Term deposit dates

The above tests are explained in more detail later on in this chapter.

0.2. Suggested sequence and frequency of using this module

This module would typically be used at the end of the financial year, however the information it provides may be useful on a more frequent basis.
The steps in using this module include:

Step Description
1. From the Year 2000 Main Menu use option 1 YEAR 2000 PARAMETERS. Enter the required parameters for each date test that you wish to perform.
2. Once you are happy with the parameters entered in the above step, you are now ready to perform your audit. Use option 2 - PERFORM YEAR 2000 AUDIT. Before performing the audit in LIVE mode make sure that you have carried out this audit in TEST mode first. This will highlight any immediate parameter errors.
3.< On completion of the audit you can now print your results using option 3 - PRINT YEAR 2000 DATE VALIDATION RESULTS
4. When you are satisfied the Year 2000 audit is complete, and you have no further use for any of the CAPS files generated during the Year 2000 audit, you can select menu option 4 - CLEAR YEAR 2000 AUDIT FILES.

1. YEAR 2000 DATE VALIDATION PARAMETERS

This option allows you to enter the Date Validation parameters for each of the date checks.

The screen below is the first of three parameter screens. If you do not wish to perform a particular test then leave the relevant field(s) blank.

Member Transactions:

This process goes through all transactions (looking at the effective date) between a nominated start date and end date. The dates you enter here should endeavour to cover the entire spectrum of transactions on your system.

<1> Period Start
Enter the start date for which the first effective dated transaction should commence from.

<2> Period End
Enter the end date for which the last effective dated transaction should have taken place.

Valid Member Ages:
This process goes through all client records making sure that their ages lie within a certain range.

<3> Minimum Age
Enter the minimum age for a member

<4> Maximum Age
Enter the maximum age for a member

<5> Report on No Birth Dates
Some Financial Institutions have clients on their system which have no birth dates. If you wish to ignore these blank birth dates in the above range test enter a 'N' here.

NEXT DUE DATE for Arrears:
This test checks that the next repayment date for each loan lies within a specified range.

<6> Minimum Due Date
Enter the minimum due date that is allowed for a repayment date.

<7> Maximum Due Date
Enter the maximum due date that is allowed for a repayment date.

The screen below is the second of three parameter screens. If you do not wish to perform a particular test leave the relevant field(s) blank.

Opening/Closing Dates for Member Accounts:
This test ensures that accounts are opened and closed within a particular date range. All savings, loans and investment accounts are checked.

<8> Opening Start Date
Enter the earliest opening date of accounts opened on your system that you wish to check.

<9> Opening End Date
Enter the latest opening date of accounts opened on your system that you wish to check.

<10> Closing Start Date
Enter the earliest closing date of accounts closed on your system that you wish to check.

<11> Closing End Date
Enter the latest closing date of accounts closed on your system that you wish to check.

General Ledger Transactions:
This test goes through all General Ledger postings between two given dates. For example you may wish to perform a test that checks that all General Ledger transactions taking place are in the current financial year.

<12> Start Date
Enter the commencement date for when the first General Ledger transaction should take place.

<13> End Date
Enter the end date for which the last General Ledger posting should have taken place.

Periodical Payments
Periodical Payments refer to electronic payments deducted from a member's account on a regular basis.  For Example, a member might pay their health insurance premium on a monthly basis via direct debit.

There are a number of periodical payment date definitions that can be entered onto the system.

CAPS can test for a number of these definitions in the following ways:

Start Date

<14> From
The earliest commencement date that the first periodical payment should have started.

<15> To
The latest commencement date for the last periodical payment.

Expiry Date

<16> From
Periodical Payments when setup can also have an expiry date. Enter the earliest expiry date that should appear on these periodical payments

<17> To
Enter the latest expiry date that should appear on these periodical payments.

Date Loaded

<18> From
This is the earliest date that a periodical payment should be loaded onto the system for an account.

<19> To
This is the latest date that a periodical payment can be loaded up on the system for an account.

Date Last Altered

<20> From
This is the earliest date that a periodical payment is allowed to be altered for an account

<21> To
This is the latest date that a periodical payment is allowed to be altered for an account

The screen below is the last of the three screens. If you do not wish to perform a particular test leave the relevant field(s) blank.

Term Deposit date validation

Term Deposits held at a financial institution have two date components – the deposit date and the maturity date. This routine allows you to check that these dates are within a specified date range. Those found outside this range or have illegal data stored in the date fields will be reported as discrepancies.

Deposit date fields

Default date range

<22> From
Enter the starting term deposit date for checking all levels.

<23> To
Enter the ending term deposit date for checking all levels.

Specific Levels and Date ranges

<24> Level
Enter the term deposit level number to check the deposit date range. You may nominate certain levels of accounts to have a specific date range. An account matching this level will use the indicated date range rather than the Default date range above.

From
Enter the starting term deposit date for this level range.

To
Enter the ending term deposit date for this level range.

Maturity date fields

Default date range

<25> From
Enter the starting term deposit maturity date for checking all levels.

<26> To
Enter the ending term deposit maturity date for checking all levels.

Specific Levels and Date ranges

<27> Level
Enter the term deposit level number to check the maturity date range. You may nominate certain levels of accounts to have a specific date range. An account matching this level will use the indicated date range rather than the Default date range above.

From
Enter the starting term deposit maturity date for this level range.

To
Enter the ending term deposit maturity date for this level range.

2. PERFROM YEAR 2000 DATE VALIDATION AUDIT

Once all your parameters have been entered you can now perform the Date Validation Audit.

We suggest that you run this audit in Test Mode first before a live run. This is to verify that your parameters are correctly set for this audit.

  • if you are in Test Mode. CAPS prompts:

You are in Test Mode, do you want to start 'Data Validation' now? (Y/N)
Enter [Y] is you want to perform a quick test run by selecting only a small number of clients.

Enter [N} if you don't want a test run, but want to select all client accounts overnight.

  • If you answer [Y], CAPS prompts:

How many records do you want to process?
Enter the number of records you want CAPS to use as a test sample.

CAPS displays messages to let you know what it is doing. When finished it returns to the Year 2000 menu.

  • If you are not in Test Mode, or if you answer [N], CAPS prompts:

Do you want 'Data Validation' submitted for overnight running?

Confirm (Y/N)

Enter [Y] to queue the program in Night Audit.

Enter [N} to cancel the request, and return to the Year 2000 menu.

Result

CAPS selects all accounts which have invalid dates or dates which fall outside the parameter ranges and stores this information in the audit files. Each Year 2000 parameter test stores its results in its own file. This allows for the ease of printing the Year 2000 Date Validation results.

3. PRINT YEAR 2000 DATE VALIDATION RESULTS

This option allows you to print the information produced by the Year 2000 Audit, menu option 2.

Print Password
Enter your print password. No user can print a report unless they have their print password.

YOU MUST COLLECT THE PRINT OUT IMMEDIATELY !

DO NOT LEAVE AT THE PRINTER !

Result

Please refer to the example report at the end of the chapter.

4. Clear Year 2000 Audit Files

This option allows you to clear all the files relating to the Year 2000 Audit.

Are you sure you want to clear all Year 2000 audit Files?
This is just a warning and a check to make sure you wish to clear the audit files. These audit files hold information about your Year 2000 Audit. Once cleared these files are unrecoverable.

If you answer [Y], CAPS immediately clears all Year 2000 audit files. If you answer [N] CAPS returns you to the Year 2000 menu without doing anything.