Current through Register Vol. 49, No. 13, September 23, 2024
Subpart
1.
Contents.
An annual examination report made under the direction of the
board of directors pursuant to Minnesota Statutes, section
48.10, must
at a minimum:
A. determine that an
internal control system is in place as required by part
2675.2600 and that control
procedures are being followed (describe process and findings);
B. determine when the board last reviewed
loan, investment, audit, and asset/liability policies;
C. confirm securities held at the bank, in
safekeeping elsewhere, or in book entry form;
D. confirm loans and deposits through a
sample positive or negative verification (define and describe
process);
E. determine if the board
has reviewed fixed assets, other real estate, and equity accounts since the
last examination;
F. examine
income, expense, and related accrual accounts since the last examination
(describe process and findings);
G.
determine that general ledger supporting accounts are promptly reconciled and
appropriateness of reconciling items, and account makeup (describe process and
findings);
H. determine that the
board is reviewing delinquent loans and collection action taking place (show
frequency of review);
I. determine
when the board last reviewed the allowance for loan loss account and the basis
on which the funding determination was made;
J. determine that the board has approved
charge off loans, that charge off notes and files are secure, and that IRS
Forms 1099C have been prepared where appropriate;
K. sample loan files for documentation and
approvals required by loan policy (describe sample methodology and
findings);
L. determine that an
internal audit function exists regarding the electronic data processing system
or computer applications and that procedures are in place for authorizing input
data and master file changes and consider the effect of a service organization
on the bank's internal control system and, if applicable, obtain an auditor's
report on the policies and procedures in operation at the service
organization;
M. examine
significant activity in employee and officer accounts (depository and loan) for
propriety and compliance with bank policies and regulations (describe process
and findings); and
N. determine
that off-balance sheet items have been authorized and detail items that may
have a material impact on the condition of the financial institution.
Subp. 2. [Repealed, 14 SR
517]
Subp. 3.
Preparation.
A written report of the annual examination must be prepared
and must include the scope of the examination including the size of the
samplings taken. The report must summarize the findings and make
recommendations for improving conditions, where appropriate.
Subp. 4.
Transmittal.
The written report shall be transmitted to the board of
directors within 30 days of completion of the annual examination.
Subp. 5. [Repealed,
L
2005 c 118
s
18]
