Pub. 9 2014-2015 Issue 2

July | August 2014 29 Extraordinary Service for Extraordinary Members. The EFT You can TRUST NetWorks is the Electronic Funds Transfer (EFT) service provider that Nebraskans have used and learned to trust like family for over 30 years. Our highly experienced staff is extremely knowledgeable and resourceful when it comes to assisting your institution. Give us a call to learn more about our services, you’ll have the opportunity to talk to someone who truly cares about and understands your EFT service needs. www.netseft.com Toll Free 800-735-6833 Local 402-434-8202 It should be noted that the audit scope can and should cover all of the elements of each department’s of- ferings, to include training and the monitoring process, and not be limited to detailed testing of compliance with regulations. The resulting audit reports should be presented directly to the audit committee or the board of directors, and all findings should be tracked for resolution. On the other hand, monitoring is a process that management puts in place to ensure that its policies, procedures, and processes are operating effectively. Monitoring typically addresses man- agement's responsibility to assess the adequacy and effectiveness of internal controls. For instance, management may identify critical control points and implement tests to determine if these controls are working properly. Moni- toring may occur on a daily, weekly, or monthly basis based on the risk present in the area beingmonitored. Monitoring processes should address and report, on an ongoing basis, much like a quality control area in other industries. Areas to ensure that your bank covers in the monitoring process are: • Assess levels of compliance by performing detailed testing of controls; and, • Support audit independence by ensuring auditors have sufficient access to, and an understanding of, key business information systems. Monitoring activities will help de- termine if controls are effective and the information produced for decision- making is relevant and reliable. An important benefit of monitoring is that instances of error and fraud are reduced significantly, operational efficiency is increased, and bottom-line results are often improved from the early detection of issues. The end goal of a monitoring pro- cess/program is tomonitor howwell de- partmental policies and procedures are being executed. Ultimately, the function should be risk-based, focusing the most For more information, contact Darlia Fogarty at Compliance Alliance at (888) 353-3933 or darlia@compliancealliance.com or Jennifer Heaton at the Nebraska Bankers Association at (402) 474-1555 or jennifer. heaton@nebankers.org. Compliance Alliance (www.compliancealliance.com ) is an exciting and innovative tool that represents the unified efforts of state bankers associations across the United States to provide critical compliance services to the banking industry. Compliance Alliance was formed with the belief that by working together each state bankers association can more effectively reach its common goal of improving the competitive position of its member banks by helping ease the compliance and regulatory burden banks face. resources on the areas of greatest risk. An effectivemonitoring programhas an employee—such as a supervisor or other employee independent of the originator of the activity—review an ongoing risk- based sample of the work performed in an applicable area. Completed moni- toring reviews should be aggregated and reported to the audit committee or board of directors for review. Just remember to think of your monitoring program as your bank’s quality control process and audit as the bank’s assessment of the effectiveness of the bank’s policies, procedures, and processes. 