AUDITING OTHER BANKING OPERATIONS - ADMINISTRATION OF THE BRANCH

BRANCH ADMINISTRATION AUDIT:

Auditing the Administrative aspects of the Branch is utmost important which ensures security and safety of the Staff, Customers and their interests.  Therefore, the following verification should be made by the Auditing Official during the Internal Audit procedure:

The Auditor should verify -

REGISTERS

• whether Stamps Register is maintained and physically available Stamps on Hand tallies with the balance in the Ledger account and the same is verified and balanced at periodic intervals?

• whether Petty Cash register is maintained and the same is tallied at periodic intervals?

• whether postage/courier register is maintained and proper recordings are made therein?

• whether the Branch maintains Security items register, enters the receipt/withdrawal of stocks  and the same is tallied at stipulated intervals?

• whether the Security Items Register denoting entries of securities like DD Blocks, FDR blocks, Cheque Books of various types etc. are tallying with system balance of each head of account?

• whether Cheque Book Issued Register is properly maintained and duly acknowledged by the Account holder or his/her authorized representative for receipt of the same?

• whether the Branch is maintaining records of request letters/slips duly signed by the concerned Account holder for issuance of Cheque Books and the same are attested for receiver's signature in case of issuance to a bearer of the letter/request slip?

• whether the Branch is maintaining proper record of Key Register? 

• whether necessary entries are being made in the Key Register whenever exchange of keys take place?

OBSERVANCE OF GUIDELINES BY THE BRANCH:

• whether the Branch is placing necessary indents for supply of security items in time and the indents are realistic as per the requirements?

• whether the security items are held in safe room and not at the counters/table drawers defeating the very purpose of safety?

• whether the Brach has deposited the duplicate keys of safe with another nearby Branch with proper acknowledgement and the same are being exchanged at stipulated periodicity?

• whether the collapsible gates and shutters are provided on all the entrances and main gate entrance and the same partially opened for entry?

• whether security arrangements are made when the Branch is opened for cleaning and the cleanliness is properly maintained?

• whether the Cash Cabins are properly kept locked always and outsiders are not allowed in the Cash cabins?

• whether Alarm System is properly working and adequate AMC is available?

• whether all the AMC Service providers are attending to the maintenance work as per the Contract Agreement?

• whether the Lease Agreement is in current status and whenever falls due for renew, whether the Branch has taken enough measures to renew the same in time?

• whether the Branch has been making payments towards electricity, water, telephone charges in time and no penalty is imposed?

• whether the Branch is strictly adhering  to Expenditure Budget allocated by the Higher Offce and excess in expenses are being reported for obtaining ratification?

• whether stationery purchase is done by the Branch only on the basis of actual consumption and no wastage is observed by the Auditors?

• whether expenditure vouchers are duly made with the approval of Branch Head or the authorised Officer of the Branch?

• whether OFF items are properly numbered, identified and tallying with the Register/System? 

• whether Old Records are maintained date-wise, month-wise and year-wise and the same are preserved  as per Policy of the Bank?

• whether proper records are maintained at the Branch for transfer/shifting of Old Records to Old Records Room/Department?

• whether the ambience of the Branch is adequate and if any uplifting is required?

• whether Staff files/records are maintained properly?

• whether Close Circuit TV is available at the Branch and the installation of Cameras are in appropriate places?

• whether the Branch is maintaining proper backup of footages of the CCTV and the same are preserved as per the guidelines of Higher Offices? 

FRAUD MONITORING:

• whether any fraud has been detected at the Branch and the same has reported to Higher Offices in time?

• whether Preventive Vigilance Committee meetings are held as per the guidelines of Higher Offices and necessary records are held for verification?

• whether the Branch has taken adequate steps to avoid recurrence of frauds?

• whether action against the concerned Staff (if involvement of Staff is established) is taken and present status be mentioned in the report. 

STATUTORY COMPLIANCE:

• whether the Branch is complying with the Government/Bank Management's guidelines in collection and remittance of various Taxes and the same are remitted to concerned Government Departments in time?

• whether necessary periodical Returns are filed within the stipulated time period and no penalty is imposed for non-observance of time norms?

• whether Tax Deducted at Source is properly accounted for?

• whether TDS certificates are issued to concerned Account holders in time?

• whether Form 15G/15H are submitted by Deposit account holders are properly maintained, entered into system to avoid any future complication?

• whether Service Tax is collected regularly and remitted to Government Account, wherever necessary and Returns are filed in time?

• whether Profession Tax is properly deducted and remitted to concerned authorities?

• whether Pension payments are made strictly as per Government/Bank Management's guidelines and necessary claims are made with concerned Departments in time?

• whether Life Certificates are obtained and held on record as per guidelines?

• whether implementation of Official Language is strictly observed?

• whether Provisions of Shop and Establishment Act are complied with strictly?

• whether the Branch is acting upon the notices/communications received from Statutory bodies in time and in no case any adverse remarks are made by such bodies?

• whether the Branch is strictly adhering to Management's guidelines on Lenders' Liability Act, Fair Banking Practice and Cash Transaction Tax etc.