Current through Vol. 42, No. 1, September 16, 2024
(a) Where applicable, the following items, at a minimum, shall be performed by all trust departments and all trust companies conducting fiduciary activities to assure the maintenance of sufficient internal audits and reviews, approvals and appointments, and board/committee reporting. Documentation must be maintained to show that each item was completed as required.
(b) The following internal audits and reviews must be completed at the frequency specified:
(1) A daily review of master file changes.
(2) A monthly review of overdrafts and uninvested cash balances that exceed a reasonable minimum established by the institution.
(3) A monthly reconcilement of deposit operating accounts and any suspense accounts.
(4) A semi-annual vault and safe deposit box review for all trust assets held on premises.
(5) A quarterly review of trust accounts (a reasonable sample determined by management) for appropriate administration, asset management, documentation, and compliance with governing instruments, laws, internal policies, and sound fiduciary standards.
(c) The following reviews and appointments must be made on an annual basis:
(1) A review and approval of trust department policies.
(2) Appointment of individuals or committees with authority to approve discretionary account distributions over a reasonable minimum established by the institution.
(3) Appointment of individuals with authority to approve disbursements, including electronic transfers, checks and dual signature requirements.
(d) The following reports, at a minimum, must be provided to the institution's board, or committee of the board, at the frequency specified:
(1) A quarterly report of all opened and closed accounts.
(2) A quarterly report of the status of all outstanding litigation, efforts taken since the last report to resolve the litigation, and any expected exposure to the institution.
(3) A quarterly report of any new formal complaints directed at the trust company or trust department.
(4) A quarterly report of any new settlements or other amounts paid to settle disputes.
(5) A quarterly report of assets with stale pricing dates that exceed generally accepted fiduciary standards.
(6) A quarterly report of any new audits conducted including management responses to any recommendations.
(7) A quarterly report of "watch list" accounts that warrant increased attention.
(8) A quarterly report of trust department or trust company profitability.
Added at 20 Ok Reg 1083,
eff 5-27-03; Amended at 25 Ok Reg 1064, eff
5-25-08
