Internal Control Questionnaires and Verification Procedures

Collection Items

  1. Is access to the collection area controlled (if so, indicate how)?

  2. Has a standard fee schedule for this service been adopted?

  3. Is the fee schedule always followed?

  4. Is a permanent record maintained for registered mail?

  5. Are permanent registers kept for incoming and outgoing collection items?

  6. Are all collections indexed in the collection register?

  7. Do such registers furnish a complete history of the origin and final disposition of each collection item?

  8. Are receipts issued to customers for all items received for collection?

  9. Are serial numbers or pre-numbered forms assigned to each collection item and all related papers?

  10. Are all incoming tracers and inquiries handled by an officer or employee not connected with the processing of collection items?

  11. Is a record kept to show the various collection items which have been paid and credited as a part of the day’s business?

  12. Is an itemized daily summary made of all collection fees, showing collection numbers and amounts?

  13. Are employees handling collection items rotated periodically, without advance notification, to other banking duties?

  14. Is the bank required to make settlement with the customer on the same business day that payment of the item is received?

  15. Does the bank have established policies or practices of not allowing the customer credit until final payment is received?

  16. Have procedures been established, including supervision by an officer, for sending tracers and inquiries on unpaid collection items in the hands of correspondents?

  17. In case of nonpayment of a collection item, is the customer notified and the item promptly returned?

  18. Are the files of notes entered for collection clearly and distinctly segregated from bank-owned loans and discounts?

  19. Are the collection notes described above maintained under memorandum control, and is the control balanced regularly?

  20. Are collection files locked when the employee handling such items is absent?

  21. Are vault storage facilities provided for collection items carried over to the next day’s business?

  22. Does the collection teller turn over all cash to the paying teller at the close of business each day, and start each day with a standard change fund?

Previous: Conclusion Next: Conclusion