MCCU Annual Report - page 106

MANCHESTER CO-OPERATIVE CREDIT UNION
ANNUAL REPORT 2013
106
Bank Reconciliations
The Bank Reconciliation Statements for the current accounts were audited to ascertain the
timeliness and accuracy of these reconciliations. The audit also sought to ensure that there
were no un-reconciled differences, and to establish whether the reconciliations received the
appropriate review and approval. No exceptions were revealed.
Staff and Volunteers Loan
The examination of Staff and Volunteers Loans was carried out to determine whether the
loans granted were in accordance with the stipulations of the Credit Union’s Loan Policy and
applicable procedures. The aim was also to ensure that the loan accounts were in good standing,
the loans were adequately secured, and the related securities files were properly maintained.
The audit exercise revealed strong internal controls in the lending process. Review of the loans
approval process revealed consistency in action as it relates to Credit Committee approval,
which was defined and consistent. The securities functions were on point as it regards the
monitoring process. No major findings were observed. Recommendations were made where
opportunities for improvement were seen.
Fixed Assets
An audit was carried out to ascertain whether the internal controls of the Credit Union were
adequate to ensure the proper management of its fixed assets. This relates to the procedures
for acquisition, physical safeguards, accounting and record keeping as well as disposal.
Steps were also taken to verify compliance with the applicable policies and procedures. The
procedures undertaken revealed that the Credit Union employed a systematic approach in the
management of its fixed assets from the budgeting stage to disposal/discard. In general, there
were appropriate safeguards over the assets, which promoted efficiency in the control system.
Areas of weakness were however identified and appropriate recommendations were made for
improvement. Corrective actions were subsequently taken to resolve majority of the issues.
Treasury Cash Counts
No material exceptions were observed from the cash counts conducted in this area during
the review period. There were adequate safeguards over cash and the funds were properly
accounted for.
Daily Security Log Reports
In light of the risk for manipulation of dormant and inactive accounts, the audit of the Daily
Security Log Reports was done to determine if the Credit Union’s policy for the handling of
these accounts were complied with. Steps were also taken to ascertain whether transactions
in the accounts were authentic and properly authorized, and to verify adjustments to other
system information such as loan terms, interests and payment amounts, and other details.
Some areas of weakness were revealed by the audit. Recommendations were made for
improvement in those areas.
Audit of Interest Paid on Deposit Accounts
The examination of a sample of deposit accounts was done to determine the accuracy of the
interest rates applied and the amounts paid as interest. The amounts for withholding tax were
tested to verify that they were correct and checks were made to ensure that the amounts
were posted to the related ledger accounts. The audit revealed no weakness in this area. The
interest and tax rates applied were found to be in keeping with the rates stipulated by the
Credit Union and the Government respectively and the amounts were appropriately accounted
for in the records of the Credit Union.
I...,96,97,98,99,100,101,102,103,104,105 107,108,109,110,111,112,113,114,115,116,...126
Powered by FlippingBook