Bank Internal Audit

TCC Consulting Services’ internal audit services will strengthen your bank’s ability to identify, assess, and manage business risks within a challenging and ever-changing industry and regulatory environment. Our internal audit services have been designed to align with regulatory guidelines and industry standards and are structured to assure risks are appropriately identified and assessed. Our services can be customized to meet the specific needs of the community bank clients, and are independent, risk-based, and cost-effective.

Automated Clearing House

The growing use of the ACH network for payment processing makes it essential for financial institutions to ensure that proper processing and risk management tools are in place when receiving or originating ACH transactions. Our ACH review will focus on a review of related documents, policies and procedures which aim to provide reasonable assurance of compliance with NACHA requirements.

Branch Operation Audits

We can assist the Bank is periodic and suprise reviews of the Bank’s branches to ensure internal controls are being adhered to.  We will perform the following:

• Full cash counts including tellers and vaults
• Cash audits and reconciliation procedures.
• Night Drop procedures
• Safe Deposit Boxes procedures
• Branch reconciliation processes
• Security procedures (alarms, all-clear, camera systems, height markers, fire extinguishers etc.)
• Branch opening and closing procedures.
• Branch signage.

CECL Review

CECL is the acronym for the Current Expected Credit Loss Model. In essence, it requires financial institutions to record estimated lifetime credit losses for debt instruments, leases, and loan commitments. Our CECL review consist of the following

• Data integrity and reconciliation
• Review CECL model documentation for compliance with guidelines provided by model risk management.
• Inspect the institution’s loan policy to ensure key components of CECL methodology are considered and reviewed, and that it aligns with implementation.

Interest Rate Risk Review/Back Testing

In order to control interest rate risks, banks are required to have financial models.   While bank models can allow management to make better decisions, they can also create new opportunities for problems and mistakes.  Financial models include model risk- the possibility that errors in the model will lead to decisions based on faulty information.  We have developed procedures to test the Bank’s policy, procedures, and accuracy of the model used to project the Bank’s interest rate risk.

Independent Liquidity Risk Management Review

An institution’s internal controls consist of procedures, approval processes, reconciliations, reviews, and other mechanisms designed to provide assurance that the institution manages liquidity risk consistent with board-approved policy. Appropriate internal controls should address relevant elements of the risk management process, including adherence to policies and procedures, the adequacy of risk identification, risk measurement, reporting, and compliance with applicable rules and regulations.  We will ascertain that Funding and Liquidity Risk Management are conducted in accordance with Bank and applicable regulatory guidelines and industry best practices.

Internal Audit Services may include: