Internal Control Questionnaires and Verification Procedures

Loan Interest and Commitment Fees

1. Is the preparation, addition, and posting of interest and fees records performed or adequately reviewed by, and any review performed by, persons who do not also:

   1. Issue official checks or drafts singly?

   2. Handle cash?

2. Are any independent interest and fee computations made and compared, or adequately tested to initial interest records by persons who do not also:

   1. Issue official checks or drafts singly?

   2. Handle cash?

3. Are fees and other charges collected in connection with real estate loans accounted for in accordance with FASB Statement No. 91, “Accounting for Nonrefundable Fees and Costs Associated With Originating or Acquiring Loans and Initial Direct Costs of Leases?”

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