Internal Control Questionnaires and Verification Procedures

Cash Items

1. Are returned items handled by someone other than the teller who originated the transaction?

2. Does an officer review the disposition of all cash items over a specified dollar limit?

3. Is a daily report made of all cash items, and is it reviewed and initialed by the bank’s operations officer or other designated official?

4. Is there a policy requiring that all cash items uncollected for a period of 30 days be charged off

5. Do the bank’s present procedures forbid the holding of overdraft checks in the cash item account?

6. Does the board of directors or an appropriate designee review all cash items at least monthly?

7. Are cash items recommended for charge-off reviewed and approved by the board of directors, a designated committee thereof, or an officer with no operational responsibilities?

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