Auditing Other Banking Operations – Branch Administration Audit:
Auditing the Administrative aspects of the Branch is of utmost importance, which ensures the 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:
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The Auditor should verify –
1. Registers
- Whether the 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 the 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 the Security items register, enter 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. tallying with the system balance of each head of the 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?
- is the Branch maintaining records of request letters/slips duly signed by the concerned Account holder for issuance of Cheque Books and the same are attested for the receiver’s signature in case of issuance to a bearer of the letter/request slip?
- Is the Branch maintaining a proper record of the Key Register?
- whether necessary entries being made in the Key Register whenever the exchange of keys takes place?
2. Observance of Guidelines by the Branch
- whether the Branch is placing necessary indents for the supply of security items in time and whether the indents are realistic as per the requirements?
- whether the security items held in a safe room and not at the counters/table drawers defeating the very purpose of safety?
- whether Brach has deposited the duplicate keys of the safe with another nearby Branch with proper acknowledgement and the same are being exchanged at stipulated periodicity?
- whether the collapsible gates and shutters provided on all the entrances and main gate entrances and the same partially opened for entry?
- Whether security arrangements made when the Branch is opened for cleaning and the cleanliness is properly maintained?
- are the Cash Cabins properly kept locked always and outsiders are not allowed in the Cash cabins?
- whether Alarm System is properly working and adequate AMC is available?
- are all the AMC Service providers attending the maintenance work as per the Contract Agreement?
- Whether the Lease Agreement is in current status and whenever falls due for renewal, whether the Branch has taken enough measures to renew the same in time?
- Whether the Branch been making payments towards electricity, water, and telephone charges in time, and no penalty is imposed?
- Whether the Branch is strictly adhering to the Expenditure Budget allocated by the Higher office and whether excess expenses are being reported for obtaining ratification?
- Is stationery purchase done by the Branch only based on actual consumption and no wastage is observed by the Auditors?
- whether expenditure vouchers duly made with the approval of the Branch Head or the authorized Officer of the Branch?
- whether OFF items properly numbered, identified and tallied with the Register/System?
- Old Records are maintained date-wise, month-wise, and year-wise and the same are preserved as per the policy of the Bank?
- whether proper records maintained at the Branch for transfer/shifting of Old Records to the Old Records Room/Department?
- Whether the ambiance of the Branch is adequate and is any uplifting required?
- Are staff files/records maintained properly?
- Is Close Circuit TV available at the Branch and is the installation of Cameras in appropriate places?
- Whether the Branch is maintaining a proper backup of footage of the CCTV and whether the same are preserved as per the guidelines of Higher Offices?
3. Fraud Monitoring
- Has any fraud been detected at the Branch and has the same been reported to Higher Offices in time?
- are Preventive Vigilance Committee meetings held as per the guidelines of Higher Offices and necessary records are held for verification?
- whether the Branch taken adequate steps to avoid the recurrence of fraud?
- whether action against the concerned Staff (if involvement of Staff is established) is taken and present status be mentioned in the report.
4. Statutory Compliance:
- is the Branch complying with the Government/Bank Management’s guidelines in the collection and remittance of various Taxes and the same are remitted to concerned Government Departments in time?
- whether necessary periodical Returns filed within the stipulated 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 submitted by Deposit account holders are properly maintained and entered into the system to avoid any future complication?
- Service Tax is collected regularly and remitted to the Government Account, wherever necessary and Returns are filed on 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?
- Life Certificates are obtained and held on record as per guidelines?
- Is the implementation of the Official Language strictly observed?
- Were provisions of the Shop and Establishment Act complied with strictly?
- Whether the Branch is acting upon the notices/communications received from Statutory bodies in time and in no case are any adverse remarks made by such bodies?
- whether the Branch is strictly adhering to Management’s guidelines on the Lenders’ Liability Act, Fair Banking Practice Cash Transaction Tax, etc.