During a small bank, branch audit I discovered the bank and branch maintains a supply of instant issue ATM cards, under dual control in each of their vaults, that they NEVER issue. This is a small town in rural Wyoming and evidently they experienced ATM card abuse at the POS years back. Due to that, they do not issue ATM cards to new savings customers and in fact only issue ATM cards with officer approval. Looks like they issued one in 2015.

I don't know but, this seems really weird to me. Why even have any in stock if you don't issue them. And WTH, why don't you issue them? I feel like I need to initiate further discussion regarding this practice in my report. It seems like this policy is a little immature, for lack of a better word. Could they turn off the POS feature? Why are they making it so hard for customers to access their money? I now understand why they have so many excessive transaction issues.

I'd love to hear your thoughts. Should I have any concerns beyond, geeze, this is stupid?

Thank you!

Debbie

I have never heard of a supply of ATM cards being kept on hand. Even if they are under dual control, what is the process for activating one of these cards and assigning it to an account. Could you of these individuals have the ability to perform this function. I would make further inquiries.

I don't know what your policies and procedures are for the instant issue cards, but I'm certain that you would be checking to make sure they are reconciled etc. Basically, from a strict audit standpoint, the process is functioning according to policy?

More to your question..... I often comment about things that mgmt. or the BOD may not know and would want to know. It may or may not hit the audit report, but I have commented on things like levels of cash that aren't needed and even staffing. I get into the branches much more than senior management and I look at transaction reports with a much more analytical eye. At least where I am currently employed, this is appreciated.

My fellow auditors may disagree, but I would get some info together and have the conversation with mgmt. I think it's one of the value adds we on-site folk provide.

Funny aside is that we are just planning on going instant issue and have done some studies on branch behavior. Not all branches will have instant issue. Again, why have the pile of cards if you don't have the traffic?

Don't know if I've helped or just rambled!

I follow the turtle method but I have the option to make it part of the program as the programs have been living documents subject to change during the review.

A supply of blank cards is a risk. Why have a risk you do not need? I would mention it. It is stupid in the sense that the cards are not used (and I certainly wouldn't bank with a bank that didn't issue POS, let alone ATM, cards) so why increase risk by having a pile of unused cards that need to be protected?

Get rid of them and have one less thing to worry about. Or issue cards!