Other Assets

Other Assets

(a) Stationery and Stamps

(i) Does the system of the Bank ensure adequate internal control over issue and custody of stationery comprising security items (Term Deposit Receipts, Drafts, Pay Orders, Cheque Books, Traveller’s Cheques, Gift Cheques, etc.)? Whether the system is being followed by the branch?

 The Head Office instructions to be seen and confirm whethern internal control is in existence.
 Carry out the physical verification of security items including stamps.
 Whether lost security items are reported to Controlling Authority.
 Note down the accounting treatment given to Stationery items as every Bank is having different policy in this regard.
 Comment on the usage of security items during the year and the stock of such items vis a vis usage.
 Report lacunas observed in the system at the branch as this is a fraud prone area.
(ii) Have you come across cases of missing/ lost items of such stationery?
 Deficiencies in controls that lead to the missing stationery to be stated.

Sr. No

Description of the security item

Consecutive No. of the item

Date of Loss

Missing Reported on

(b) Suspense Accounts/ Sundry Assets
(i) Does the system of the Bank ensure expeditious clearance of items

debited to Suspense Account? Details of old outstanding entries may be obtained from the branch and the reasons for delay in adjusting the entries may be ascertained. Does your scrutiny of the accounts under various sub-heads reveal balances, which in your opinion are not recoverable and would require a provision/ write-off? If so, give details in the following format:

Year	Amount (Rs.)	Remarks

 

Refer the guidelines issued by Head Office in this regard.
 Whether, such guidelines are followed strictly.
 The Debit entries in your opinion not recoverable should be reported for making adequate provision.
 Age wise analysis report through the system may be referred for the same.
 Reasons for such debits to be clarified.

(ii) Does your test check indicate any unusual items in these accounts? If so, report their nature and the amounts involved.

 Information to be given in the following format

 In case of long outstanding entries over a period of one year the details to be seen with regard to its nature and possibility of recovery in case of debit items, if you feel that items are not recoverable necessary provision to be suggested in Memorandum of Changes (MOC)

Sr. No.

Particulars of debit entry

Outstanding balance as on 31.03.20XX

Whether provision is necessary, reasons there of

 

 Follow the above said procedure in this regard.