Assumption Exception Review

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The Assumption Exception Review report provides a listing of system generated checks or exceptions within each module, showing assumptions that may need to be researched and corrected or displays assumptions that are correctly entered. Each exception is listed by category within each module. If the status of an exception is OK and no further action needs to be taken, it will display a green check mark-. The exception status with a red question mark- is one that may need further research and action. Each exception status will give a brief description of the status next to the check and question marks.

The most appropriate time to review this report is after you have done all processing for the month and before the reports are printed.

An example of the report is shown below:

Rptstd_64_V4

Below is a listing of each module exception and the status statements tied to each exception.

General

Exception

Status

Checking for Application-GL Outages

None exist

Outage exists - Please review Application-GL Outage report.

All outages should be researched carefully to determine why the accounts are out of balance. See Application-GL Outage report for explanation.

Checking Service Charge codes without Deposit Spreads

None exist

Service Charge Code xx does not have associated Fixed Gap

Spread

Service Charge Code xx does not have associated Variable Gap

Spread

Service Charge Code xx does not have associated EVE Spread

Since there are no maturity dates assigned to deposit accounts, these totals have historically been captured as "immediate" totals on the Gap report. You can spread these totals, by service charge code, to any of the time frames in the Gap report and in Advance EVE to give maturity and present value to deposits. See Deposit Spreadfor further details.

Checking for equal Deposit Spreads between Gap and EVE

All Spreads are equal

Service Charge Code xx is not equal for Fixed and Variable Gap

Service Charge Code xx is not equal for Fixed and EVE

Service Charge Code xx is not equal for Variable and EVE

See Deposit Spread for further details.

Income Shock Module - Results

Exception

Status

Checking Results in Sync with Assumptions

Results are Out-of-date with assumptions - processing is required!

Go to the Process/Review tab and Process All or Process Selected depending on what assumption changes were made. See Process/Review in Advanced Income Shock for further details.

Checking in-balance condition

Bank is not in balance - Contact FinSer Support!

This will need to be researched to determine what is causing the out-of-balance situation.

See FinSer Support Information for the support phone number.

Income Shock Module - Growth Assumptions

Exception	Status
Checking Growth Assumptions for Fed Funds Sold	OK - none exist Growth Assumptions exist but will be ignored - they should be removed
Checking Growth Assumptions for Fed Funds Purchased	OK - none exist Growth Assumptions exist but will be ignored - they should be removed
Checking Growth Assumptions for Fed Funds Income	OK - none exist Growth Assumptions exist but will be ignored - they should be removed
Checking Growth Assumptions for Fed Funds Expense	OK - none exist Growth Assumptions exist but will be ignored - they should be removed
Checking Growth Assumptions for Federal Tax	OK - none exist Growth Assumptions exist but will be ignored - they should be removed
Checking Growth Assumptions for State Tax	OK - none exist Growth Assumptions exist but will be ignored - they should be removed For the above 6 exception items see Assumption Process in the Advanced Income Shock chapter of the manual.
Checking for Growth Assumptions Producing Negative Growth	OK - none exist XX - Growth less than current balance Where XX represents the GL account description. Growth assumptions below the current balance are not necessarily an error, but should be reviewed to see if they still apply. An institution may out-perform earlier growth targets so the assumptions should be revised so as not to cause a sell-off of volumes. See Growth in the Advanced Income Shock chapter of the manual.
Checking for Growth Assumptions on Interest Bearing Income/Expense Accounts	OK - none exist Int Income/Int Expense - XX - Assumptions exist and will be ignored. They should be removed Where XX represents the Income/Expense GL account description. See Growth in the Advanced Income Shock chapter of the manual.

Income Shock Module - Index Rate Assumptions

Exception

Status

Checking for Index Rates with Negative Rate Assumptions

OK - none exist

Negative rate assumptions exist - please review Index Rate Assumption report

If the institution has recently changed rates, assumptions may need to be revised.

Checking age of assumptions

OK - Assumptions are up-to-date

Assumptions older than three months exist - please review Index Rate Assumption report

Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions are older than three months..

For both exception items above see Index Rate Assumption report for explanation.

Income Shock Module - Reinvestment Rate Assumptions

Exception	Status
Checking for Fed Funds rate assumptions are equal	OK - rates are equal Fed Funds Sold and Fed Funds Purchased reinvestment rates are not equal - please correct! See the Reinvestment Rates chapter for further assistance.
Checking age of assumptions	OK - Assumptions are up-to-date Assumptions older than three months exist - please review Reinvestment Rate Assumption report Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions are older than three months.
Checking for Assumptions with Rate "None"	OK - No assumptions tied to Rate "None" Accounts exist with assumptions tied to Rate "None" - please review Reinvestment Rate Assumption report
Checking for Reinvestment assumptions with negative rates	OK - none exist Negative rate assumptions exist - please review Reinvestment Rate Assumption report If the institution has recently changed rates, assumptions may need to be revised.
Checking for Reinvestment assumptions on accounts with no items or non-interest bearing accounts	OK - none exist XX - Assumptions exist for accounts with no items or non-interest bearing accounts - please review Reinvestment Rate Assumption report. Where XX represents the GL account description.
	For the four exception items above see Reinvestment Assumptions Audit report for assistance.

Income Shock Module - Prepayment Assumptions

Exception

Status

Checking age of assumptions

OK - Assumptions are up-to-date

Assumptions older than three months exist - please review Prepayment Assumption report

Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions are older than three months.

See Prepayment Assumption Audit report for assistance.

Budget Module - Results

Exception

Status

Checking Results in Sync with Assumptions

Results are Out-of-date with assumptions - processing required!

Go to the Process/Review tab and Process All or Process Selected depending on what assumption changes were made.

See Process/Review in Budgeting for further details.

Checking in-balance condition

Bank is not in balance - Contact FinSer Support

This will need to be researched to determine what is causing the out-of-balance situation.

Budget Module - Growth Assumptions

Exception
Assumptions are shared with the Shock module - see Shock module review

Budget Module - Index Rate Assumptions

Exception

Status

Checking for Index Rates with Negative Rate Assumptions

OK - None exist

Negative rate assumptions exist - please review Index Rate Assumption report

If the institution has recently changed rates, assumptions may need to be revised.

Checking age of assumptions

OK - Assumptions are up-to-date

Assumptions older than three months exist - please review Index Rate Assumption report

Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions are older than three months.

For both exception items above see Index Rate Assumption report for explanation.

Budget Module - Reinvestment Rate Assumptions

Exception	Status
Checking Fed Funds rates are equal	OK - rate assumptions are equal Fed Funds Sold and Fed Funds Purchased reinvestment rates are not equal - please correct! See the Budget Reinvestment Rates chapter for further assistance.
Checking age of assumptions	OK - Assumptions are up-to-date Assumptions older than three months exist - please review Reinvestment Rate Assumption report Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions are older than three months.
Checking for Assumptions with rate "None"	OK - None exist Accounts exist with assumptions tied to rate "None" - please review Reinvestment Rate Assumption report.
Checking for Reinvestment Assumptions with negative rates	OK - None exist Negative rate assumptions exist - please review Reinvestment Rate Assumption report If the institution has recently changed rates, assumptions may need to be revised.
Checking for Reinvestment assumptions on accounts with no items or non-interest bearing accounts	OK - None exist XX - Assumptions exist for accounts with no items or non-interest bearing accounts - please review Reinvestment Rate Assumption report Where XX represents the GL account description.
	For the four exception items above see Budget Simulation Reinvestment Assumption report for assistance.

Budget Module - Prepayment Assumptions

Exception

Status

Checking age of assumptions

OK - Assumptions are up-to-date

Assumptions older than three months exist - please review Prepayment Assumption report

Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions are older than three months.

See Budget Simulation Prepayment Assumption report for assistance.

EVE Module - Results

Exception

Status

Checking Results in Sync with Assumptions

Results are Out-of-date with assumptions - processing required!

Go to the Process/Review tab and Process All or Process Selected depending on what assumption changes were made.

See Process/Review in EVE for further details.

EVE Module - Index Rate Assumptions

Exception
Assumptions are shared with the Shock module - see Shock module review

EVE Module - Discount Assumptions

Exception	Status
Checking for Assumptions on Fed Funds Sold	OK - None exist Key accounts should not have any discount assumptions - Please review Discount Assumption Audit report!
Checking for Assumptions on Fed Funds Purchased	OK - None exist Key accounts should not have any discount assumptions - Please review Discount Assumption Audit report!
Checking for Assumptions with Rate "None"	OK - None exist Accounts exist with assumptions tied to rate "None" - please review Discount Assumption Audit report
Checking age of assumptions	OK - Assumptions are up-to-date Assumptions older than three months exist - please review Discount Rate Assumption report Verify that the assumptions are still appropriate and re-save them to remove the warning that assumptions are older than three months.
Checking for Discount Assumptions with negative rates	OK - None exist Negative rate assumptions exist - please review Discount Rate Assumption report If the institution has recently changed rates, assumptions may need to be revised.
Checking for Floating Rate Deposits discounted with their own rate	OK - None exist Assumptions exist - please review Discount Rate Assumption report
	For the above 6 exception items see Discount Assumption Audit report for assistance.

EVE Module - Prepayment Assumptions

Exception
Assumptions are shared with the Shock module - see Shock module review

Matured Misc Data Entry Items

Exception

Status

Checking for matured items in Misc Data

Entry

OK - None exist

Past Balloon Date Item 7-FHLB #xxxx found! Please maintenance Misc Data Entry

Past Maturity Date Item 8-FHLB #xxxx found! Please maintenance Misc Data Entry