Corporate Branch Control and Operations Training: Audit Review

This report provides a comprehensive overview of a branch control and operations training program, focusing on the objectives, functional approach, and scope of branch control. It details the incident reporting process, including the escalation of operational and control errors. The report presents an analysis of internal audit ratings, categorizing them as Meet Expectation, Satisfactory, Need Improvement, and Unsatisfactory. A significant portion of the document is dedicated to the summary of audit findings, covering areas such as cash management, system access, power of attorney, account data, daily vouchers, cards registers, cash area security, stamps, standing instructions, manager's cheques, stop payments, income/expense ledgers, clearing and cheque book operations, organization charts, service level agreements, remittances, and account opening procedures. Each finding is detailed, highlighting non-compliance issues and providing recommendations for corrective measures. The report concludes with a summary of the importance of branch control and operations training in the banking system, emphasizing the significance of the incident reporting process, audit ratings, and adherence to policies and security protocols.

Branch Control
and Operations
Training
Target Group :
Corporate Branch
Presented By :
Branch Control Team

Contents
 The session will cover:
 Introduction of Branch Control Unit
 Incident Reporting Process (IRP)
 Overview of Standard Audit Ratings
 Repetitive Audit Observations
 Related Policy & Procedures
 Corrective measures
 Question & Answers

Branch Control Department
 Introduction : Branch Control is the supervisory function to monitor and guide branch’s activities.
 Objective: Ensure compliance with bank’s policies and procedures and Central Bank’s guidelines as
well as existing local laws, rules and practices over time in all areas impacting branches operations.
 Functional Approach: Mix of approaches to monitor and control branches.
 Scope : All areas of branch activities are under scope of review

Incident Reporting (IRP)
As per Bank’s Operational Risk Policy, Branches are instructed to report any kind
of operational/control errors & mistakes to operational risk department through
their functional heads for further investigation and validation.
Any detected observation or incident that might expose the bank to an operational
/ financial / legal / reputational risks and that was proved to be due to negligence
or non-abidance by Policies and Procedures, the matter will be escalated, and the
necessary action will be taken towards the violators responsible for this and their
supervisors if they failed to play their monitoring and control role.

Incident Reporting Process Map

Internal Audit Ratings
Meet Expectation -No important issues or
weaknesses in Internal Control
Satisfactory -Less than 40% of total audit issues
are of ‘High’ overall significance.
Need Improvement- 40% or more of total
identified issues are of ‘High’ overall significance.
Unsatisfactory -More than 75% of identified issues
are of ‘High’ overall significance.

Corporate
Branch Audit
Rating 2021 Unsatisfactory
Current
status of sub
observations
Risk Rating
No of
observation
s
Rectificatio
n Rate%
High Moderate Low
Rectified 38 6 - 44 44%
Partially Rectified 12 - - 12 12%
Not Rectified 43 2 - 45 44%
Total 93 8 - 101 100%

Summary of Findings
1.Cash Management 13 Deposits (Call and Fixed)
2. User Access Rights 14.Standing Order
3.Account Data in CBS and Amendments 15. Debit and credit reverse entries on the income/
expense’s ledgers:
4. Account Opening Procedures 16.Cheque Book Operations
5. Power of Attorney 17.Operations under scope of Deputy Branch
Manager
6. Daily Vouchers & Daily Reports and Cancelled
Transactions
18.Minor Accounts
7. Temporary Overdrawn Accounts and Overdrafts 19.Organizational Chart and Job Descriptions
8. Card Registers 20.Service Level Agreements
9. Cash Area, Security Issues and Safe keeping of
documents
21.Transfers
10.Keys, Stamps and combinations registers 22.ccounts Payable\Receivables
11. Standing Instructions 23. Credit Balances in Facilities
12. Operation Under scope of Deputy Manager

Cash management
End of the day cash balancing process
G4S Teller movements inside cash area
Cash box balances and Cash payment entries
Custody of old foreign currencies
Cash counting machine software upgrades

System Access and Authority
Not complying user role-based system matrix
System access functions contradicts with staff designation.
Over authority approving limits to staff
Outsourced staff’s having system accesses

Power of Attorney
 Not feeding the Power of Attorney in the core banking
system
 No Power of attorney registers maintained

Power of Attorney
1. Ensure to feed the correct expiry date in CBS (Five years from the date of issuance) and the same also mention
as remarks in signature screen as well as the expiry date of attorney’s signature.
2. In case of receiving POA issued by court / Minor Affairs for minor account operating by third party, the expiry
date will be five year or the date of reaching the minor eighteen years old which is coming first.
3. If the customer requires the validity of the PAO to be less than five years, then the branch must comply with
the customer instructions and add the expiry date in the POA form duly signed by the customer taking into
consideration to feed the expiry date in the CBS correctly.
4. This new arrangement should be applied for the new received POAs effect from Sunday, the 13th October 2019
onwards.
5. The expiry date of Existing POA will remain as it is without change till you received new instructions.