I have been asked to audit Executive Officers on a regular basis. I already review their deposit accounts and have added reviewing their personal debts with the bank, their expense accounts and Loan Review handles reviewing their loan portfolio. Suggestions for areas to review that I have missed would be appreciated. Thanks

This is not so much an EO review item, but it would be worth making sure that when you review statements, you make sure that any NSFs are charged like they should be and that no accounts are overdrawn more than 5 business days over $1,000-just so you make sure that you are keeping an eye on any possible Reg O violations that might slip through the cracks (and this is an easy way to spot check this area).

Another area to check/remind the EOs is the limitation on the amount of loans they can receive from other banks. They can't borrow from other banks in excess of what they can borrow from your bank without reporting the amount to your bank within 10 days.

Good point. On this one, I review the monthly board report that discloses the insider loans and go make sure the EO agreement is in the file as it should be. If they don't already have access to the policies (they should), you may want to forward you EOs a copy of your Reg O policy so they can read up on what their responsibilities are, outside of any training that you do. Aren't they a fun group to train? Sorry-couldn't resist!

We provide our Reg O policy to insiders every year - and require them to sign an acknowledgment of the policy as well.

Seems to me that our insiders now are very cognizant and careful about Reg O issues. Could be the banking environment they've lived through, or it could be our conservative management - maybe a little of both. Whatever the reason, it makes my job much easier!

Anyone else see more concerned insiders now than say, 10 years ago?

Please advise if you have developed an internal monitoring report that identifies all insider accounts (loans and deposits) and those of their related interests? If so, is this distributed as a questionnaire on a monthly, quarterly, or annual basis? And last but not least, would you be kind enough to share your log format. Thanks.
FRED CAMPO 973 522-3827