BRANCH INTERNAL AUDIT REPORT
Detailed Findings
Banking Operations
Finding No. 1
Control Objective: 1.1 Clear Policies and Procedures on Banking Operations are not in place
Inherent Risk Rating 1-9
Post Audit Residual Risk Rating 1-9
Increase in Residual Risk
Finding
1. Policy and procedure manuals help to standardize service delivery and ensure that staffs carry out activities in accordance with how senior management and the Board want things to be done. However, although the key staffs at the branch (including the Acting BM, Deposits Supervisor, Credit Supervisor) were aware of the existence of a manuals on banking operations and lending, other staffs at the branch involved in banking operations such as the CROs and the Cashiers were not aware of it and had not seen it.
Besides, the staffs (including the key staffs at the branch) lacked sufficient knowledge of the provisions in the manuals and had not read them.
2. The examination also revealed that the banking operation manual currently in use was prepared in 2009 based on the company’s old software E-finance. The manual has not been reviewed to reflect the current banking practice in the company as based on the current software - UniBank. No update or review has been communicated from the head office to the branch. (Operations Department)
3. There was no evidence that training sessions and meetings were held to discuss the policies and procedures. Staff meeting minutes does not reveal that discussions were made on the branch operations manual.
Cause and Effect.
Both the Acting and Substantive BMs had not communicated availability of manual on banking operations to all relevant staff. Although the manual had been put on the intranet, the attention of staff had not been drawn to it and the need for all staff to make time to read it has not been emphasized.
Branch management had not considered the need for training and meetings to discuss the policies and procedures to ensure that staffs were equipped
Banking Operations
Finding No. 1
Control Objective: 1.1 Clear Policies and Procedures on Banking Operations are not in place
Inherent Risk Rating 1-9
Post Audit Residual Risk Rating 1-9
Increase in Residual Risk
Finding
1. Policy and procedure manuals help to standardize service delivery and ensure that staffs carry out activities in accordance with how senior management and the Board want things to be done. However, although the key staffs at the branch (including the Acting BM, Deposits Supervisor, Credit Supervisor) were aware of the existence of a manuals on banking operations and lending, other staffs at the branch involved in banking operations such as the CROs and the Cashiers were not aware of it and had not seen it.
Besides, the staffs (including the key staffs at the branch) lacked sufficient knowledge of the provisions in the manuals and had not read them.
2. The examination also revealed that the banking operation manual currently in use was prepared in 2009 based on the company’s old software E-finance. The manual has not been reviewed to reflect the current banking practice in the company as based on the current software - UniBank. No update or review has been communicated from the head office to the branch. (Operations Department)
3. There was no evidence that training sessions and meetings were held to discuss the policies and procedures. Staff meeting minutes does not reveal that discussions were made on the branch operations manual.
Cause and Effect.
Both the Acting and Substantive BMs had not communicated availability of manual on banking operations to all relevant staff. Although the manual had been put on the intranet, the attention of staff had not been drawn to it and the need for all staff to make time to read it has not been emphasized.
Branch management had not considered the need for training and meetings to discuss the policies and procedures to ensure that staffs were equipped