Standardised minimum requirement checklist for WDCCB co-op. BankInternal Audit Note: - 1) Proper Audit plan and work segregation should be done before starting the audit. 2) Audit team leader should be responsible for checking whether under mentioned items are checked or not along with documentation proof.
1)a) Name of Br. Manager: -
b) Name/address of branch c) Area of operation d) No. of persons employed in the branch (on roll or on contract or on daily basis) e) Name of Br. Manager f) Name of Cashier g) Name of Asst. Manager h) Tel. no.
2) Cash:- a) CRR limit =
b) Date of physical verification/Amt. verified along with certificate c) whether CRR has been exceeded during the year = Y / N ( make Annexure I of 8 to 10 dates and resp.amounts ) Y d) Whether Currency notes bundles are stitched = Y / N
N
e) Whether torn/ soiled notes are separately maintained and periodically exchanged = Y / N Y f) Necessary information regarding deposit of 1 lac or more in cash is submitted to IT I T authorities = Y / N / NA g) Cash Summary signed by Cashier/ officer & whether
Cash summary tallies with General Ledger = Y / N (if no amt.of diff. & reason) h) Token lost during the audit period (whether any amt. collected & proper reporting has been done to H.O)
=
Imp. Stationery Items: - a)Physically verify and make annexure of Draft books, Cheque books, Pay orders and FDRs folio and makeAnnexure II 3)
b) Whether Register related to above has been mentioned and updated Y/N
=
4) Dead Stock: - a) Verify Whether Dead stock as per register maintained is their = Y / N
b) Make annexure III for discrepancies found in dead stock verification 5) Bank Reconciliation: - a) Verify whether there are any clearing difference
If any is reconciled and adjusted
=
Y/N
b) Duly reconciliation with H.O has been done or not = Y / N if there are some pending entries for longer period then such entries should be noted down along with their reason. c) Whether copy of board resolution is on record for opening & Operating current/F.D/ OD A/C
= Y/ N
d) Whether Account with other branches are used for their specified reasons = Y/N e) Whether other Bank branch A/Cs are duly reconciled = Y / N f) If OD is their with other branch A/C whether securities are in record = Y / N 6) Deposits : - a) KYC norms should be verified and Annexure IV regarding discrepancies should be drawn.
b) Whether Interest on FD is as per circular of that period = Y / N if no, then leakage regarding that should be calculated andAnnexure regarding that should be formed.
c) Whether minimum bal. charges have been duly applied once saving A/C or Current A/C falls below minimum. L eakage regarding this should be found out and accordingly annexure should be made. d) Accounting procedure of recording transactions should be found out and whether day book or GLA balance regarding deposits are tallied and up-to-date = Y/N e) Verify whether service charges for return of cheques, issue of cheque books are levied as per prescribed norm. = Y / N ( if no amount of leakage should be calculated and shown) f) Verify that payment of Term Deposit beyond Rs.20,000 including interest is not made in cash. g) Manually verify and confirm the accuracy of all interest payments above Rs.2,000/ h) Verify whether service charges for stop payment instruction are properly levied & collected. i) Correct deduction of the TDS on Interest & TDS so deducted is deposited in the govt. accounts within the stipulated period as per provision of the IT Act. = Y / N along with list. j) Necessary information regarding the deposit / payment of cash of Rs.1.00lac and above is submitted to the IT authorities.
=
Y/N
k) In case of matured Term Deposit verify that branch is taking necessary steps in this matter. Long outstanding entries in Matured Term Deposits should be reported. l) In matured term deposits interest has been paid at which rate? m) Correct rate of interest is given to the matured receipts, which are presented for renewal after 14 days from the date of maturity. n) Penalty for premature repayment of term deposits is correctly recovered from the depositors.
o) Service charges for not maintaining of the minimum balance in the account; Folio charges, Inoperative account charges,etc are properly accounted for. p) Whether the inoperative accounts are transferred to inoperative ledger. Annexure of inoperative A/Cs to be form, along with date since when it is inoperative. q) The appropriate nomination forms for deposits, lockers, and safe custody are obtained.
7) Advances&L oans : -
a) Whether Documentation of advances & Loans disbursed are complete = Y / N along with annexure of discrepancies in documentation of various loans & Advances. Y b) Whether NPA categorization is properly done =
Y/N
Y
c)Festival Advance is given to staff members only once during a calendar year. It is repayable in 7 equal monthly installments. It should be verified that the advance is liquidated in seven Equal monthly installments as provided. Monthly reconciliation is done and the balance is tallied with G/L Balance. d) Verify whether processing charges are levied in the loan cases, annexure of discrepancies should be made. f) Advance against expenses given to staff members are cleared by debiting to respective heads of expenses within 7 days. g) Penalty is correctly levied for delayed submission of Stock /QIS and Financial Statement. = Y /N (if No annexure to be formed) h) Penal interest is correctly recovered on overdrawing.
8) General : - a)All due care is taken for payment of D.D. without advice and the entry is settled within one week. If not settled, it should be reported and reconciliation of these accounts be done on monthly basis. Separately G/L A/c is opened for ´D.D. Paid without Adviceµ.
b) Whether all account heads appearing under OTHER- ASSETS head are reconciled at prescribed intervals. c) Whether all account heads appearing under OTHER LIABILITIES head are reconciled at prescribed intervals. d) Reconciliation of Bills Payable A/c, Suspense account and Excess in cash account is done on monthly basis. See that branch is taking necessary action for settling entries in these accounts. Debits to the suspense accounts and Excess in Cash accounts are authorised by the Branch Manager. Outstanding entries for more than 1 year are to be transferred to Head office. If not transferred, report accordingly. e) Verify that Service Tax and Education Education Cess deducted are properly accounted. f) The P&L A/c is tallied with General Ledger on regular basis and that the balance tallies with the General Ledger as on the date of audit. g) The classification of the various income /expenditure heads is done properly. h) The expenses incurred are supported by Bills and are within the delegated powers of the Branch Manager/Officer. i) There is no abnormal increase in various expenses like telephone, electricity, postage, overtime, conveyance and other expenses. j) All heads appearing in Trial Balance should be verified and it should be confirmed from all the balancing register / print out that the balances as per Balancing Registers are tallied with General Ledger except those reported in format. k) It should be verified that no account is balanced by debiting the difference to fictitious accounts such as XYZ, ABC, 123 etc. or to Sundry Debits. l) Whether Interest is pa paid id to society saving accounts which which is not allowed as per RBI directives. = Y / N (if yes makethe annexure) m) Whether filing of Form 15-H and G on monthly basis with Income Tax Authorities are done regularly. (Within 7 days of the subsequent month.) = Y/N n) Whether Form 60 / 61 received in case of Term Deposit in cash exceeding Rs. 50,000/- & is filed with Income Tax Authorities within stipulated time. (Within 1 month from 30th Sept. & 31st March.) = Y/N
o) Salary Return Form No. 24 is filed with appropriate authorities within stipulated time. p) Leave encashment availed of staff member, during the quarter is checked and found correct. (Calculation of encashment, debit of leave etc. to be seen.) q) Commission received from MSEB to be properly checked out for recognition of income as well as for TDS, service tax deducted & paid r) Verify that original lease deed / sale deed / Agreement is either on record of branch or with Admin. Dept. at Head Office.If it is with Admin. Dept. letter to that effect should be on record along with copy of the deed with the branch. s) Premises are insured adequately and insurance is in force. If insurance is done by Head office, copy of Insurance policy is available at branch. t) Whether branch has charged on service tax on service charges of Cheque book issued as well as Demand draft issued. Make annexure of the same. 9) L ockers : - a) The locker application and lease agreements are properly obtained and stamped as required.
b) Arrears of locker to be calculated and shown in an annexure. c) The branch maintains due date register /locker rent register, for locker rent dues /locker and key register. d) Security Deposit as per Circular is obtained and lien on the same is marked. e) If the rent is in arrears, the hirer is not given access to the locker. A suitable sticker is pasted on the locker indicating that the rent is in arrears. Where renewals are not made within three months of expiry, steps are initiated to break open the locker. 10)Security Aspects : - a)Risk category of the branch (Internal) = high / low / medium
b) Whether strong room is built as per RBI specifications c) Whether collapsible gate is closed with chain during the banking hours. d) Whether Arm Guard is posted in the branch e) If yes, whether provided with a gun.
f) Whether the branch renew the gun license in time & regularly g) Whether the branch has adequate Fire Fighting system h) Whether the branch has AMC for refilling the Fire extinguisher periodically
Note: - Audit team should bring 1) Balance sheet as on 31-3-11. 2) Profit & loss along with all the statements as on 30-09-10 & 31-0311 3) H.O Reconciliation (latest) 4) Balance confirmation certificate of other banks&Reconciliation with other branches (if any). 5) Certification of physical verifications. 6) Certification where material discrepancies are to be reported. 7) Interest Received (statement no 5 )as on 30-09-09& 31-03-10 8) Interest paid (statement no 13 )as on 30-09-09 & 31-03-10 9) Fig. of total deposits, Advances,Salary paid& profit or( loss) for last year i.e 2009-10. 10) NPA statement as on 31-3-11.
