I have been put in charge to respond to the requirement to complete an audit every 12 mos for the FR as participating in the BIC program. Have no idea what this is and where to find any information on how to perform the audit. Any direction?

If you search the internet for federal reserve borrower in custody you will find a great deal of info from the Fed.

Well I looked through the above site and found some information. Does anyone audit and report, that may be willing to share auditing procedures, procedures and policy, if one is necessary?

All of the fed districts have extensive information on their websites, enough to put together an audit program covering all requirements.

FRBNY states, in a chart they provide,

The FRBNY requires DIs to provide periodic audits of BIC collateral. The DI shall notify the FRBNY immediately of any irregularities discovered during any audits. The audit must include a review and assessment of compliance with all BIC guidelines. A complete audit report including any findings and management’s response and corrective action plan should be included with the annual BIC certification form.

Sept: I made a spreadsheet based on requirements of the particular types of loans we were pledging. I pull a list of our pledged loans each year, sample and run them across the checklist. Each loan type has different requirements (days late allowed, LTV limits, etc)

Lastly, I check the general requirements from the sources listed above: how we separate the loan files, do we file reports on time. etc.

Hope that helps a bit.