A strong reported result with unreconciled cash
A fictional pension institution begins a period with CHF 2 million in cash. It receives CHF 3 million and pays CHF 4 million, with no other cash movements in the exercise. A security valuation also rises by CHF 0.5 million without any sale. An employer contribution invoice for CHF 0.8 million remains unpaid. The draft cash report adds both the valuation gain and the receivable to the bank balance and says the resulting figure is available for benefit payments. An unexplained duplicate import appears in the member ledger. The task is to reconcile the supplied information and classify records correctly, not to prescribe the institution’s full accounting treatment or calculate an actual statutory funding ratio.
1. What cash balance follows from the supplied movements?
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Cash is 2 plus 3 minus 4, or CHF 1 million. The unsold valuation gain and unpaid contribution claim are not additional bank receipts. They may require their own appropriate accounting treatment, but cannot be counted as currently received cash merely to enlarge liquidity.
2. What controls and reporting changes are needed?
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Reconcile bank, ledger and member records; identify the duplicate and correct it with a traceable basis. Report receivable status and valuation movements separately. Explain open items and collectability or timing questions rather than treat a positive result as proof that every record is correct.