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The reconciliation process of the trustee reports has become very complex due to the increasing growth of the portfolio and a substantial increase in "out of the ordinary" transactions associated with the alternative investment asset class and foreign investment transactions. In certain instances unreconciled differences occur which may not be resolved until the end of the year. We recommend procedures be established to investigate all unreconciled differences on a monthly basis and adjustments, if any, reported to the trustee. The monthly reconciliation should also include a roll forward analysis of the cost basis of the investments to facilitate the reconciliation of the beginning and end of period balances with the monthly activity (purchases, sales, withdrawals and the reinvestment of income).

Consideration should also be given to expanding the account categories in the trustee reports to better account for the increasing number of "out of the ordinary" transactions.