BANK INSPECTION REPORT WRITING
1. OBJECTIVE OF REPORT WRITING
Reports are meant to assist the Executive
Committee of the bank to deliberate and take decisions on issues hence reports
from Auditors/Inspectors have to be concise and objective realizing that
Management has little time to attend to many problems facing the organization.
2. KINDS OF REPORTS: For convenience we group reports into
three divisions:
a. Specific Reports: Such reports are drawn after
investigating frauds, misbehavior in the office or any other issue instructed
to be investigated at the instance of management.
b. Special Report: drawn in the course of inspection or
on completion of the exercise. It is meant to draw Management’s immediate
attention to an issue observed to be affecting the branch operation.
c. Final Report: -Usually written not more than two
weeks after the conclusion of an inspection exercise. This report gives
management the true picture of the branch operation. Apart from internal
auditors, we also have external auditors whose reports are strictly guided by
statutory regulations.
3. NATURE OF AUDITOR’S/INSPECTOR’S
REPORT:
a. Report which is late in production,
difficult to understand, unfair and biased diminishes the power and credibility
of the Inspector while
b. Report which is factually correct,
complete, restrained in style, balanced and easy to understand adds to the
standing and posture of the internal Audit/Inspection team.
4. RECOMMENDED STAGES OF REPORT WRITING:
A. Preparation
B. Assessment
C. Planning
D. Expression
E. Review
A. PREPARATION: Clarify the terms of reference; analyze
readership of your report; set out objectives your report is expected to
achieve; collect information and finally store the information collected.
B. ASSESSMENT: Ascertain correctness of
information; check completeness of preparation; and ensure preparedness to
proceed.
C. PLANNING: Decide the type of report to write;
select the needed information; plan the arrangement; organize the body of the
report using the appropriate headings; complete all the pre-writing stages.
D. EXPRESSION:
1.
Write
the report expeditiously,
2.
Follow
the principles and techniques of effective writing.
3.
Be
concise without omitting necessary information
4.
Use
appropriate illustrative materials/facts.
5.
Keep
your readers in mind at all times.
To achieve this (a) avoid long sentences (b) ensure verbs
agreewith their subjects (c) avoid sentence fragmentation (d) avoid personal
comments on technical issues (e) use simple and familiar words and (f) write carefully.
E. REVIEW:
(1) Carry out a detailed report
analysis confirming there were not unnecessary repetitions, irrelevant sections,
and ambiguous statements.
(2) Assess the readability of the report
(3) Edit the report and polish the
expression
(4) Decide the layout and reproduce or
print accordingly.
(5) Submit the report.
6.
INFORMATION REQUIRED IN INSPECTOR’S REPORT:
To be considered a complete report, the Inspector should
include the under listed details for the attention of the Executive Committee
of the bank.
A. Name of the
Branch and its Agency if
any. Also, date inspection commenced and
finished.
B. Branch Management Information: Date present manager took up
management of the branch; name of his relief when he was last on leave; date
when relieved and other staff complement.
C.
Deposit Base of the Branch:
i.
Statement
of number and Amount of current accounts this year and that of last year.
ii.
Such
details in respect of Savings Bank Accounts, fixed Deposit accounts and Short
Deposit accounts.
iii.
Total
facilities granted by the branch to be categorized under Performing,
Sub-standard, Doubtful and Lost stating number of Accounts, Amount and
percentage of each category.
D. Advances: Comment on Control and standard. Unauthorized
and unreported Excess and Lending’s should be substantiated.
Payments against uncleared effects to be documented stating names of
officers/staff involved in such payment.
Recoveries on lost debts (number and Amount) up to inspection date stated and
compared with corresponding date last year.
E. Securities for Advances:Are items properly documented and secured in safe/strong room?Are
correct charged forms held?Are securities perfected before allowing drawings?
Any missingitem. The Inspector should make a report on the above issues.
F. Cash and Valuables: Control of strong room/Safes/Keys/Padlocks; Overnight cash excesses
reported. Regular cash evacuation from cashiers and by the cash centre. Prompt
postings of vouchers; effectiveness of cash custodians.
G. Current Accounts:Report on correct Account opening formalities; Is sale of cheque books
well controlled? Correct accounts mandates in place? Are interest, commission
on Turnover revenue correctly collected? Statement frequencies observed?
Adequate records kept of Returned cheques; Current account checklist in vogue?
H. Savings Bank Accounts:The Inspector should report on the
security control of signature/Index cards; spot checks of passbooks presented
over the counter; signing arrangements whether observed; Is savings bank
check-list in vogue? Is monthly security balancing observed?
I. Clearing/Transfers Remittances:Is the Manager involved in the
purchase of cheques? Does the branch have any long outstanding item or any
unreconciled
transactions? Are advices of drafts issued to paying branches within 24 hours.
J. Bills/Credits/Domiciliary Accounts:Report on any difference between outstanding
and branch returns copies. Is Domiciliary Account well maintained? Other issues
on which information is required from the Inspector include
K. Security Control of the branch.
L. Computerization (if any)
M. Manager —
his appraisal
N. Staff Complement (actual and approved
staff strength)
O. Staff medical
P. Premises —
Rent paid for branch
office and Manager’s house
Q. Business Prospects
R. Profit if any (compared with last
accounting period)
S. Revenue Generation
T. Cost Control
U. Unbalanced Accounts
V. UBA moneyGram Western Union Money
Transfer Service etc.
The Inspector’s report must conclude with his assessment of the branch performance and recommendation. It may be necessary to grade the branch performance under (A) very Good, (B+) Good, (B-) Satisfactory (C) improvement required and (D) Unsatisfactory
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