SCOPE OF WORK
Our approach will be first and foremost to consider all of the issues raised in your Examiner’s findings, and to provide consideration and guidance as how best to remedy your shortcomings and improve overall operations of your business loan function. We will create an audit plan (copy attached) that will include the following:
POLICY
Objective: To determine if the Board of Directors has adopted MBL Policies consistent with safe and sound banking practice and appropriate to the size, nature, and scope of the institutions’ operations.
PROCESS
Objective: To determine if processes, including internal controls, are adequate.
PERSONNEL
Objective: To determine whether management and effected personnel display acceptable technical skills in managing and performing duties related to commercial lending.
CONTROLS
Objective: To determine the adequacy of loan review, internal/external audit, management information systems, and any other control systems for commercial lending.
In addition we will review all of your SBA loans, participation loans and business loans as per the instructions of your DBO Examiner. This review will be a full scrub of the loans resulting in a squeaky clean portfolio acceptable to the examiners. Any problems, errors, policy or rule violations, documentation exceptions, defects in process or red flags will be brought to the attention of management so that they may be remedied immediately. We acknowledge that some exceptions may not be fixable. In those cases, it will be up to the credit union to determine if the risk caused by the exception is one they are willing to accept with mitigations. We will assist management by making our recommendations regarding those credits.
REVIEW PROCESS
Prior to reviewing your loans we will review your Business Loan Policy including your SBA, Participation, and Workout, Collection and Foreclosure Policies and your Risk Rating Grade Matrix. We will determine if they comply with California State Rules and Regulations, and suggest changes with redlined documents. If SF Fire does not have any of these documents we will provide them for your review and approval. Where necessary we will rewrite these documents to conform to the California Financial Code Title 10, Section 30.101 as per the instructions of the DBO Examiner.
We will review a sampling of your loans including the largest loans, all SBA loans and Participations any delinquent loans and any loans with a risk grade rating below 3-satisfactory. During the review we will comment on any loan not conforming to your Policy, any loan not conforming to the DBO Rules and Regulations, and any loan not meeting “best practices” .
Our approach will be first and foremost to consider all of the issues raised in your Examiner’s findings, and to provide consideration and guidance as how best to remedy your shortcomings and improve overall operations of your business loan function. We will create an audit plan (copy attached) that will include the following:
POLICY
Objective: To determine if the Board of Directors has adopted MBL Policies consistent with safe and sound banking practice and appropriate to the size, nature, and scope of the institutions’ operations.
PROCESS
Objective: To determine if processes, including internal controls, are adequate.
PERSONNEL
Objective: To determine whether management and effected personnel display acceptable technical skills in managing and performing duties related to commercial lending.
CONTROLS
Objective: To determine the adequacy of loan review, internal/external audit, management information systems, and any other control systems for commercial lending.
In addition we will review all of your SBA loans, participation loans and business loans as per the instructions of your DBO Examiner. This review will be a full scrub of the loans resulting in a squeaky clean portfolio acceptable to the examiners. Any problems, errors, policy or rule violations, documentation exceptions, defects in process or red flags will be brought to the attention of management so that they may be remedied immediately. We acknowledge that some exceptions may not be fixable. In those cases, it will be up to the credit union to determine if the risk caused by the exception is one they are willing to accept with mitigations. We will assist management by making our recommendations regarding those credits.
REVIEW PROCESS
Prior to reviewing your loans we will review your Business Loan Policy including your SBA, Participation, and Workout, Collection and Foreclosure Policies and your Risk Rating Grade Matrix. We will determine if they comply with California State Rules and Regulations, and suggest changes with redlined documents. If SF Fire does not have any of these documents we will provide them for your review and approval. Where necessary we will rewrite these documents to conform to the California Financial Code Title 10, Section 30.101 as per the instructions of the DBO Examiner.
We will review a sampling of your loans including the largest loans, all SBA loans and Participations any delinquent loans and any loans with a risk grade rating below 3-satisfactory. During the review we will comment on any loan not conforming to your Policy, any loan not conforming to the DBO Rules and Regulations, and any loan not meeting “best practices” .