CONTROLS AND AUDIT

 

 

After completing the first step of Cash verification and Jewel Loan portfolio verification, the Inspecting Officer has to carry out the following tasks :

 

CONTROLS

• Check whether the Branch Head or the Authorised Officer has been checking the debits made to Income Heads of the Bank, whether manually or by the System.  This has to be done by taking necessary reports from the system after completion of the Day end process.  The concerned Officer has to affix his signature to confirm checking of this Head.

• Check the manual entries in accounts in which only system generated entries are appearing in the normal course and and the same are being checked by the concerned Officer.

• Verify whether entries in all Suspense accounts are checked on day to day basis by the concerned Officer of the Branch.

• Verify whether reconciliation of entries in all Suspense Accounts, wherever required is done by an authorized Official of the Branch.

• Verify that all debits made to Suspense accounts are duly authorized by the concerned Officer.

• Check whether the Branch is following up for reversal of outstanding entries in Suspense Head accounts and the same are reversed properly within the stipulated time as per the instructions of Higher Offices.  If suspension arises, get it clarified with the concerned Officer and advise him/her for making early adjustment of these outstanding entries.

• Verify whether Accounts with other Banks like State Bank of India or Reserve Bank of India are reconciled within the stipulated time as instructed by Higher Offices and report if deviations observed.

• Check whether reconciliations are being done correctly and in no case wrong marking off is noticed by the Auditor.

• Check whether the Branch has made necessary provisions for Losses / Assets (Debit Balance accounts) of impaired nature for which the Branch is required to make Provision and records of Claims against the Bank have been made and the same are in order.  If not, advise the Branch to pass necessary entries immediately with the approval of the Controlling Office, as this may have direct impact on the Profit and Loss account of the Branch.
  

• Check whether the Branch is outsourcing anybody for carrying out certain activities and whether any approval is available from the Controlling Office.  If any deviation is observed, bring it on record and the same should be brough out in the Audit Report.

• Verify whether the Branch is maintaining records of Assignent of Jobs for the Outsourcing agencies / individuals like Apprentices, Jewel Loan Appraiser, Mini Deposit Collector, Recovery Agencies, Business Correspondents and the appointments / contracts are entered into strictly as per the Assignment Letters of Higher Offices. 

• Also, ensure that the terms and conditions stipulated for such appointments / contracts are complied with by the Branch and necessary Confirmation of Compliance is conveyed to the Controlling Office on time.

• Discontinuance of services of the above Agencies / Persons are strictly done in accordance with the terms conveyed in the Approval / Appointment letters issued by the Controlling Office is done promptly by the Branch.
  

 

AUDIT CONTROLS

 

• Check whether the Branch has attended to the irregularities spelt out in the Last audit reports and necessary steps have been taken for rectification.

• Verify whether the Branch has submitted their reply to the Audit reports in time and they are convincing.  At random, carry out some verifications to ascertain the correctness of the reply submitted by the Branch.

• Confirm whether the Branch has submitted necessary Certificate of Rectification, in full and final, to the Controlling Office and the previous years’ audit reports have since been closed.  The Branch is supposed to have a communication to this effect from the Controlling Office and the same should be made available on records.