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Managing Compliance on Your Terms
Spartan Services provides a full range of accounting, consulting and compliance services to clients participating in financial contract securitization transactions. Our ability to assume portfolio management responsibilities mitigates both originator and servicer risk. Plus, as an S&P Rated Servicer, our procedures and policies associated with portfolio management and compliance are validated.
Spartan supports securitization transactions during the entire process: from data analysis, lease accounting and monthly monitoring and reporting on securitized portfolios through to auditing and ongoing management of customer compliance with the terms and conditions of securitization agreements.
Spartan also provides Standby Servicing to third parties. Tracking and monitoring financial institution’s portfolios provides the oversight and governance that regulated institutions require.
We perform detailed examination and verification procedures on all financial contract portfolios. At the time key information is loaded into SPARTAN, all securitized financial contracts are reviewed and verified where necessary. These upfront procedures help to ensure accuracy and reliability of the information used to make business decisions.
Financial Contract and Securitization Accounting
SPARTAN can determine accounting entries for both operating leases and direct financing leases. It also has a Lease Register and can generate all the accounting entries required under AcG12 (and FASB140 in the U.S.).
From the initial setup entries on securitization to ongoing monthly entries of lease income and net investment in leases, the SPARTAN system provides detailed tracking and automatic updating of all financial contracts within a securitization portfolio.
Monitoring and Reporting
The SPARTAN system automatically generates monthly portfolio reporting for all securitized and non-securitized lease portfolios with an emphasis on capital balances, aging of lease receivables, lease terminations, cash reserves, security deposits and covenant compliance monitoring.
SPARTAN provides a month to date and year to date Lease Register that can be accessed at all times to verify any individual lease within a portfolio, as well as a summary of the entire portfolio.
SPARTAN separately tracks securitized and non-securitized leases, which is invaluable for managing securitization portfolios. In addition to securitized portfolios, Spartan Services has been engaged on many non routine compliance engagements.
Corporate Governance, Audit and Compliance Management
Spartan has extensive experience in auditing and routinely performs verification and other examination procedures on all our clients’ securitized financial contract portfolios.
Our mandate is to periodically inspect securitized financial contract portfolios and ensure that all pertinent information is reported to facilitate key decision making. We also assess compliance with portfolio tests for delinquencies and defaults as well as key financial covenants, including interest coverage and tangible net worth.
The SPARTAN system monitors seller compliance with the contractual obligations under financial contract securitization transactions. These include default and delinquency ratios, cash reserve accounts, concentration and security deposits.