Financial Institution Services
We recognize that each financial institution is different; and, therefore, its internal audit needs are different. We will meet with you to discuss your specific needs and determine the scope of services and range of fees to provide such services. Our experience in providing services to community banks and credit unions will aid us in determining the best approach to meet your needs and to meet regulatory expectations. Below is a list of the services we provide to financial institutions.
With the rapid change of technology in today’s banking environment, information systems management is essential to ensuring that a financial institution’s operations are functioning effectively. Our IT examinations are designed to aid in evaluating the general controls in place for managing the systems and security at your institution. Our staff has technical knowledge and experience in performing IT examinations of various core banking applications and networks utilized in the banking industry.
New and emerging electronic banking products are forcing financial institutions to evaluate the control methods they are using to protect their networks and customer accounts from threats from both inside and outside the bank or credit union. Our electronic banking examinations consider the products and services you offer, such as wire transfers, ACH origination, remote deposit capture, Internet Banking, Telephone Banking, Mobile Banking, etc. and evaluate your compliance with regulatory requirements and industry best practices affecting those areas. Our focus is to assist you in evaluating the controls in place at your institution and in identifying potential vulnerabilities or areas of exposure that might result in a loss to your financial institution or your customers.
Outsourced Internal Audit
Outsourcing internal audit can be a cost-effective way to meet your internal audit needs without adding staff and incurring the related costs of employment benefits. The effectiveness of a financial institution’s deposit and loan operations areas are key to its success in delivering value to its customers. Our Deposit and Loan Operations examinations are designed to identify strengths and weaknesses in these areas so that deficiencies can be remedied and controls strengthened. Our Deposit Operations exam includes inspecting procedures relating to overdrafts, dormant accounts, service charges and refunds, repurchase accounts, NOW account eligibility, etc. Our Loan Operations exam includes procedures relating to processing new, renewed, and employee loans (including proper approval, documentation, lending limits and funds disbursals), compliance with Regulation O, etc.
Branch examinations are a great method of monitoring and maintaining internal control at your retail offices. These examinations are performed on a surprise basis and include teller and vault cash counts and determining compliance with procedures for controlling cash and other negotiable items, safe deposit boxes, night depository, branch security, etc.
Unauthorized disclosure of consumer non-public information is a significant threat to a bank’s reputation and regulatory compliance. Our Information Security examinations are designed to assist you in evaluating your compliance with Section 501(b) of the Gramm-Leach-Bliley Act and include the risk assessment and risk management process, annual reporting requirements, vendor management, requiring confidentiality statements for service providers, providing information security training, and independent testing.
Staying current with regulatory requirements is an increasingly daunting task. In today’s environment, compliance with rules and regulations impacts every department and every employee, from front desk personnel to senior management. For this reason we have developed examination procedures to aid our clients in determining compliance with selected regulations. We have associates dedicated to performing compliance reviews for major banking regulations such as BSA/AML, OFAC, and CIP; HMDA; Regulation GG: Unlawful Internet Gambling Enforcement Act; NACHA ACH Rules; the S.A.F.E Act; Interest Rate Risk and Liquidity.
BSA/AML, OFAC, and CIP
All financial institutions are required to administer a BSA/AML compliance program that includes independent testing. We provide a comprehensive review of BSA/AML, OFAC, and CIP compliance that is tailored to your operations. Our team monitors emerging issues and regulatory guidance to provide a comprehensive exam that is current and relevant to your bank’s exposure to compliance risks in these areas.
Our staff is well-versed in the complexities of banking systems and NACHA’s ACH Rules, which enables us to perform the annual review of your ACH activities. The scope of our ACH examination is designed to satisfy the NACHA audit requirements, ensure compliance with emerging NACHA rules, assess the controls in place over your ACH activities (both originating and receiving), and inspect compliance with Regulation GG and OFAC requirements.
Interest Rate Risk and Liquidity
We have dedicated personnel on staff to perform an independent review of your interest rate risk and liquidity management program. Our procedures are designed to comply with the FDIC’s Interagency Policy statement requirements for independent testing of the data inputs and assumptions as well as control procedures in place over interest rate risk.
The requirements of Sarbanes-Oxley (SOX) affect many community banks. We specialize in performing SOX testing relating to IT concurrently with our information technology examination. This approach proves to be both cost-effective and efficient. Consider outsourcing the IT portion of your SOX testing to us.
Internal Audit Risk Assessments
An essential underlying component of an effective internal audit program is an internal audit risk assessment. We use an audit risk assessment model to evaluate and rank the risks associated with your bank’s various departments and branches based on objective auditable criteria. We then incorporate the results of the risk assessment in developing an audit plan that is commensurate with the identified risk areas of your institution.
Do you need assistance in one or all of these areas described?
We will be happy to discuss any of these services with you.
Please feel free to contact us.