Auditing Services

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AuditLink’s Auditing Services work hand in hand with monitoring.  Every financial institution and business should benefit from the outcome of performing an audit. Audits should be performed both internally and externally.  Each with its own findings, every audit should be performed with the intent to improve a process. Just as monitoring provides a benefit to a business process, correction or improvement, your audits provide the same benefit to your organization.

Selecting the right business partner for our organization is imperative.  Experience, knowledge and insight are important factors when selecting your partner. With over 30 years in the credit union industry, AuditLink is well equipped to assist.

Seven specialized programs have been created:

Concentration Risk Analysis

Five step process which includes the upfront analysis of portfolio segmentation, data identification, redesign of ALL calculations, determination of model variables, and economic drivers will be determined. Steps two and three involve classification in accordance with their specific segments and changing security codes. And step four and five involve testing and determining risk, board approved limits, and generating the final reports.

AuditLink Upfront Engagements

This is a two to three-day on-site visit, designed to be a complete review of credit union policies and procedures pertaining to member interaction and service offerings that are governed by consumerrelated government regulatory agencies. This comprehensive engagement includes review of all credit union policies, practices, employee security settings, member disclosures and supporting core system configurations. Some of the areas examined include Truth and Savings disclosures, Funds Availability policies and credit union reserve requirements.

CU*BASE Application Security Review

One of the most painstaking tasks a security officer performs is the review of all employee access points to the CU*BASE platform. In many cases it is just an issue of finding the dedicated time to sit down and review every menu option each employee has been granted and adjust according to job description, risk, and segregation of duty. AuditLink can help. Our team has performed reviews for credit unions for over 5 years and can help you systematically review, evaluated, and update your security with a constant theme of risk mitigation and employee efficiency. Depending upon the size of the credit union these sessions last between four and eight hours. No travel is required as they are completed via web conference.

AuditLink Lite

This is a consultation where AuditLink will evaluate all the credit union configuration relative to compliance with a myriad of regulations. Very much like credit unions do during conversion but with a focus on what has changed in the compliance arena the effect of those changes on configurations. Over 20 different areas will be reviewed for adherence with regulation and for those that need attention. We cannot guarantee the event will pay for itself but generally speaking it does and some.

ACH Audit

A Qualified ACH Professional (AAP) from our staff will conduct your annual ACH audit and examine each facet of your ACH operations including receiving, originating, record retention, timelines of processes, information reporting and completeness of agreements. A primary focus of this service is assuring that you understand the recommendations based on ACH Rules and a plan of action to meet your required needs. what needs to be done based on the ACH Rules and why.

This Service Includes:

  • On-site completion of the audit requirement in Appendix Eight of the NACHA Operating Rules
  • Review of operating procedures and internal controls
  • Review of ACH exception handling
  • Preliminary management meeting to review initial findings and recommendations
  • Written ACH Audit Management Report with findings for improvement at the conclusion of the audit

BSA/AML Independent Audit

Credit Unions are subject to Bank Secrecy Act and anti-money-laundering (BSA/AML) regulations. Every 12 to 18 months they are required to conduct annual independent audits of their AML compliance programs. Many find the challenge to maintain staff members with the appropriate experience in this highly specialized area. Credit Unions wonder how they will remain current with the regulations and subsequent areas that must be prioritized. Managing to the Audit can be costly and extremely time consuming even to the largest credit union.

With AuditLink’s qualified staff and innovative approach to business, we are able to conduct your credit unions required annual BSA Audit in a timely and personalized manner. Our engagements include 8 facets and can be customized based upon the needs of our credit union and overall urgency.

  1. An evaluation of the overall integrity and effectiveness of the BSA/AML compliance program, including policies, procedures and processes.
  2. A review of the Member Identification Program (MIP) to verify the credit union’s adherence to proper identification and Office of Foreign Assets Control (OFAC) requirements.
  3. A review of the credit union’s risk assessment for reasonableness given the institution’s risk profile (products, services, members, and geographic locations).
  4. Appropriate transaction testing to verify the credit union’s adherence to the BSA record keeping and reporting requirements (such as MIP, SARs, CTRs, CTR exemptions and information sharing requests).
  5. An evaluation of management’s efforts to resolve violations and deficiencies noted in previous audits and regulatory examinations, including progress in addressing outstanding supervisory actions, if applicable. A review of staff training for adequacy, accuracy, and completeness.
  6. A review of the effectiveness of the suspicious activity monitoring systems (manual, automated or combination) used for BSA/AML compliance. Related reports may include suspicious activity monitoring reports, large currency aggregation, monetary instrument, funds transfer, nonsufficient funds (NSF), large balance fluctuation and account relationships.
  7. An assessment of the overall process for identifying and reporting suspicious activity, including a review of filed or prepared SARs to determine the accuracy, timeliness, completeness, and effectiveness of the credit union’s policy.
  8. A review of filed or prepared CTRs to determine the accuracy, timeliness, completeness, and effectiveness of the credit union’s policy.

At the end of the review period your credit union will receive a comprehensive report and list of recommendations. This report can be shared with your regulators and service providers. Further strategic planning based on the recommendations can be provided upon request.

We have three paper docs.  The overview, the Audit one pager and the Vendor Management

BSA and ACH Review Combo

Combined these two reviews for a discounted price.

Duration Analysis

ALM model assumptions are under intense scrutiny by regulators and proving and understanding those assumptions will determine the overall evaluation of your ALM program. An important component of ALM, NEV, is one of those calculations where assumptions play a critical role in the math which is used to derive that crucial number. Average duration of each non-term share account is one of the variables which regulators are honing in on and since the OTC no longer exists there are no national standards which can be utilized to back your assumptions up. That is where AuditLink can help. AuditLink utilizes the flagship CU*BASE account retention dashboards to analyze and provide you with solid average duration statistics which feed your ALM model. Best of all we use your data to prove the duration numbers.