AUDITING & ASSESSMENT
Internal Audits
The objective of the internal audit program is to furnish management and the Audit Committee with independent analysis, appraisals, recommendations, and pertinent comments concerning the adequacy, effectiveness, and efficiency of the systems of internal control, the quality of ongoing operations, and your internal compliance with rules and regulations. Recognizing the complexity of individual operations, our approach is designed to add significant value through a customized review plan, to include the following areas:
Lending Operations
- Lending Policies and Procedures;
- Loan origination, renewal, and approval procedures;
- Loan credit analysis and review, including documentation, funding, and recording controls;
- Loan system reconcilements, including any suspense accounts;
- Collection and problem asset management, including extensions;
- Calculation of allowance for loan and lease losses and compliance with accounting and Bank regulations;
- Compliance with Bank policies and procedures and that the policies and procedures comply with Bank
Deposit Operations
- Account opening procedures, maintenance, and related documentation;
- Acceptance and processing of deposits;
- Processing and clearing of outgoing transit items;
- Receipt and processing of incoming transit items;
- Posting exceptions
- Statement rendering, processing and delivery, including hold, or no-mail statements;
- Collection of fees, service charges and interest on active and inactive and dormant accounts;
- ACH/EFT and money transfer controls;
- Reconciliations controls review;
- Wire Transfers controls review;
- Remote Deposit controls;
- Deposit liabilities (hold mail, return mail, etc.);
- Official checks.
Accounting and Financial Reporting
- Management and Regulatory reporting;
- General ledger and sub-ledger reconcilement processes and status;
- General Ledger Testing (All Account Level Reconcilements will be reviewed)
- Suspense, other liability and miscellaneous asset account reconcilements and controls;
- Income and expense accruals;
- Premises and fixed assets controls review;
- Accounts payable;
- Payroll
- Test limits within BOLI policy, cash surrender value, evaluate pre-purchase credit, ongoing risk, and physical controls.
Branch Operations
- Review and evaluation of policies and procedures;
- Cash / Retail non-deposit;
- Physical Security / Information Security;
- Night Deposits / Safe Deposit;
- Travelers checks / Official checks;
- Account Opening Controls Review.
ALM/IRR, Investments and REPOs
- Verify Contingency Funding Plan and Liquidity Plan;
- IRR models, management, measurements, assumptions, reporting;
- Controls over security purchases, sales, calls, and maturities;
- Asset/liability management program;
- Investment Securities portfolio activity;
- Reconciliations Controls Review;.
- Fed Funds;
- Repurchase agreements;