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.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8