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#1387784 - 05/07/10 05:14 PM Bank Official Checks
one auditor Offline
100 Club
Joined: Apr 2004
Posts: 104
Upon examining the bank's authorized signers list of employees who can sign official checks it was noted that all bank officers have "unlimited" check signing authority. I have proposed to management that they should consider dual signatures when a certain dollar threshold has been exceeded by one employee; it was also mentioned that the right balance between customer service and proper internal control risk management should be maintained when considering the dollar amount were a second signature would be required. It was also explained to management that this is a "preventatvie" control to allow a second review to occur before a disbursement is executed (not to mention the perception that is given to employees under this heightened internal control).

Management has basically come back to say please provide examples of "how problems could occur without the controls" I am suggesting.

I can provide various scenerios under which unauthorized transaction may occur, but isn't the above control consideration just plain prudent business practice that doesn't require much thought on this particular issue?

Has anyone run into such a roadblock in trying to implement the basic of internal controls like this? I would like to know how common place having two signatures on official checks is; please advise. HELP.

Thank you.

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#1387880 - 05/07/10 06:26 PM Re: Bank Official Checks one auditor
Georgia Plum

We have authorized limits. For instance, a teller could sign a check for up to $500.00. Head teller has $1,000.00 limit. Branch manager has a $50,000 limit. If the amount is over the Branch Manager's approval limit, we require an executive officer to sign. Bear in mind though that we are a small bank with only two branches. We occasionally have times when an EO is not available at our second branch, in those cases, the branch will have two aurhotized signers sight the check, then the next time the EO is at the branch, they initial the official check log to confirm their approval of the check.

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#1391298 - 05/14/10 05:10 PM Re: Bank Official Checks
COMPLIcated Offline
Diamond Poster
Joined: Mar 2003
Posts: 1,035
We have controls similar to Georgia Plum but we do not require an Exec Officer to sign.

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#1391845 - 05/17/10 02:43 PM Re: Bank Official Checks one auditor
BSBIA Offline
New Poster
Joined: Dec 2009
Posts: 21
We require two signatures over $25000. However it can be any two employees with check signing authority

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#1392659 - 05/18/10 04:39 PM Re: Bank Official Checks BSBIA
QCL Offline
Power Poster
Joined: May 2002
Posts: 6,259
We have very tight controls over all official checks.
Take Cashiers Checks for example:

Under $250 - All Employees*
Under $1,000 - Teller Supervisors
Up to $2,500 - Customer Service
Up to $10,000 - Lending Officers
Up to $50,000 - Smaller/selective group of lending officers
Up to $150,000 - Senior Lenders
Up to $250,000 - Vice Presidents
Up to $500,000 - Executive VPs
Up to $1,000,000 - President or CFO
Up to $5,000,000 - CEO
Over this - it would require 2 of the people listed in the 2 top tiers.

Same tier levels may never be combined. If the signing limit of one is not enough, a person in the higher tier is required. We have had instances where a person was not available (at another office) in those limited instances an email is sent to the cashier. He submits a report of the violations monthly to audit (that's me). We are small (less than 10 offices), and image our checks, they are reviewed the next day by the President.

*Note: Auditing personnel are not authorized to sign any type of checks.

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#1397985 - 05/28/10 10:42 PM Re: Bank Official Checks one auditor
one auditor Offline
100 Club
Joined: Apr 2004
Posts: 104
Thank you for your replies, they have helped.

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