Does anyone have audit procedures for savings bonds and loan delinquencies that they would share with me? Any help will be appreciated.

I don't have specific procedures, and I would like some direction in this area as well. One thing to cover with Savings Bonds is to ensure that a reconciliation is occuring between funds received and posted to the G/L and the list from the Federal Reserve of Savings Bonds issued. If the Federal Reserve has bonds issued, but there is no record of receiving the funds, you could possibly have theft involved.

I would like information on that too. I am new to audit but was in Operations for years. Our bank doesn't keep an inventory of bonds; years ago we did, just like travelers checks, etc. Now we order them from the Fed and they mail them to the customer. If payment isn't run to pay for the bond, the charge from Fed for the bond will be outstanding on the Fed statement. So the audit for them is pretty simple. But loan audits are a mystery to me!

For delinquencies, I would start out by getting the Call Report Instructions for Delinquent loans - read it - look at your Call Report actually filed and the supporting documentation used to complete it. Base your audit on that - ensure all info reported on the Call Report is accurate - ensure supporting schedules are accurate - ALSO, get your companies Past Due, Non-Accrual, Charge-Off, Collection Policies. Audit for compliance with those policies - verify system information to the information reported to the Board - ensure the accuracy of reports that go to the Board - Also, look up the Fair Debt Collection Practices Act - that also gives you guidelines. Look at your loan department's collection efforts -
This is just a start - hope it helps!!