I am not aware of any federal regulatory requirement for a board report of employee overdrafts; there may be a general legal prohibition on such overdraft (and therefore possibly a need for a board report) at the state level, but I don't have knowledge of a particular state with such a requirement.
In my experience, restrictions on employee overdrafts was always a policy matter, managed by HR and audited by our IA department. When an audit exception arose, it was reported to our audit committee, but not to the board.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8