All MAi Services

The ACH audit is designed to meet the annual independent ACH audit requirement by NACHA. Our ACH audit program uses the recommended National Automated Clearing House Association audit guidelines. Our audit reviews incoming ACH activity, originating ACH activity, and compliance with the federal government Green Book guidelines, and evaluates internal controls for an ACH/EFT department.

The Advertising audit is designed to determine whether the bank’s advertising is in www.compliance with requirements of, Fair Housing Act, Equal Credit Opportunity Act, Truth in Lending, and Truth in Savings Act.

The Bank’s Board of Directors must approve the adequacy of the allowance for loan and lease loss (ALLL) each quarter and must approve the ALLL methodology annually. MAi performs an independent review of the ALLL process and methodology. We provide consulting services that will ensure that the Bank is in compliance with FAS 5 (ASC450-10-5) and FAS 114 (ASC 310-10-35).

The Asset Liability Management (ALM) audit is designed to verify that the ALM policy, as it pertains to interest rate risk, is adequate and adhered to; to determine whether interest rate risk is effectively identified, monitored, and controlled, and to determine if appropriate internal controls have been established.

Our asset/liability management consulting services will result in better identification and monitoring of interest rate risks. McCormack and Associates, inc., offers comprehensive and customized asset/liability management services to assist you in measuring, monitoring, and controlling interest rate risks.

We will assist in implementing the asset/liability management process including: asset/liability management (ALM) and investment policies, the membership of the ALM committee, the committee agenda, schedule, risk management tools and reporting requirements. Our ALM program is action-oriented and ensures that decisions are formulated, implemented, reviewed, and that appropriate communications take place within the organization.

Attend Audit Committee to discuss findings, resolution tracking, etc.

AOC is designed to assist our clients by offering telephone support for latest regulations, trends, and banking news.

The BSA/AML, OFAC, CIP, and USA PATRIOT Act annual audit is designed to determine whether the bank has established operating standards that ensure compliance with the regulations and to mitigate risk.

The BSA semi-annual audit is designed to ensure that Currency Transaction Reports, Monetary Instrument Logs, and Suspicious Activity Reports are completed as required by law.

This comprehensive training program will transform bank employees into “Bankers.” Staff members completing this session will have a broad understanding of: employee roles and responsibilities, bank structure and regulations, an overview of banking functions, products and services, and the employee’s role in making your bank profitable.

The Board Reports audit is designed to determine whether the reports submitted to the Board of Directors are accurate and complete.

The Capital Accounts audit is designed to determine whether policies, practices, procedures, and internal controls over the Capital Accounts, stock certificates, stock register, and dividends are adequate.

MAi provides a capital planning boiler-plate policy that communicates capital planning guidelines from the Board of Directors to management and identifies contingent sources of capital.

The bank’s long-term capital plan should be based on the bank’s strategic plan. We have developed a model that facilitates and documents the bank’s long-term capital planning process, including stress-testing under adverse conditions.

We are available to assist management in the formulation of the capital planning policy and implementing the capital planning process.

The Cash and Tellers audit is designed to determine that proper internal controls are in place over cash and to determine whether the policies, practices, and procedures regarding cash are adequate.

The Cash Items audit is designed to determine whether cash items are accounted for properly and clear in a timely manner.

The CDs and IRAs audit is designed to determine whether policies, practices, procedures, and internal controls for CDs and IRAs are adequate and to verify interest and penalty calculations.

The Charged-Off Loans audit is designed to verify that proper internal controls exist over charged-off loans and recoveries and to verify that repossessed assets are accounted for properly.

The Collateral Vault audit is designed to evaluate controls over the collateral vault and to verify that all collateral kept in the vault is recorded in the collateral records and properly coded in the loan system.

The Collections audit is designed to verify that proper procedures are followed while processing collections and to verify that there is proper accounting of collections income.

The Compliance Checkup is designed to test a sample of areas of compliance regulations to verify compliance.

Compliance Consulting is designed to provide consulting services and to work directly with and provide training for the bank’s Compliance Officer.

The Compliance Management Systems audit is designed to determine the effectiveness of policies and procedures in place to ensure compliance with laws, regulations, and rulings.

The Compliance Risk Assessment is designed to evaluate the banks internal system and to assign a level of regulatory risk. The assessment will assist the bank in establishing an appropriate audit program according to risk.

The Community Reinvestment Act (CRA) audit is designed to ensure that the bank has appropriate policies and procedures in place to ensure compliance with the Community Reinvestment Act.

The Consumer Lending annual audit is designed to determine whether an internal system exists to ensure compliance with the following: Truth in Lending (TIL) (Reg Z), Interest on Loans (Usury), Unfair and Deceptive Credit Practices (Reg AA) and Consumer Protection in Sales of Insurance (Regulation H, Subpart H). The procedures also test the accuracy and adequacy of the compliance system.

The Consumer Lending semi-annual audit is designed to ensure compliance with Consumer Lending regulations.

The DDA, Dormant and Savings Accounts audit is designed to determine whether policies, practices, procedures, and internal controls over the functions are adequate.

The Director’s Examination is designed to perform a Directors’ Examination in accordance with minimum agreed-upon procedures from Chapter 10 of the Oklahoma State Banking Code, Sub Chapter 7, Section 85:10-7-1 through 85:10-7-3.

During our examination, our qualified staff will review and test selected accounting records and transactions in the following areas:

• Capital Accounts
• Cash and Cash Items
• Customer Accounts
• Customer Account Verifications
• Due from Bank Accounts.
• Investments Owned
• Loans
• Other Income and Expense
• Fixed Assets
• Other Assets and Liabilities
• Trust Department (if applicable)
• Safekeeping Items
• Internal Control Program
• General Review of Board Minutes and Board resolutions regarding bank accounting practices

We provide Directors Training. This program educates community bank directors on their roles and responsibilities as directors. The program covers bank regulation, risks associated with the banking business, and how to identify areas that need Board attention. This program will give the Directors the tools they need to carry out their corporate governance duties and responsibilities.

The Due from Banks audit is designed to determine whether the policies, practices, procedures and internal controls over due from bank accounts are adequate.

ERM services can help provide an institution wide approach to the identification, assessment, communication, and management of risk. Our highly qualified and experienced consultants will facilitate and perform an enterprise risk assessment that identifies and assesses an organization’s current risk inventory. We can also review and assess the current state of the risk management program, providing observations and recommendations for improvement.

The Escrow audit is designed to ensure that the bank has established proper procedures and controls on behalf of the borrower to pay taxes, insurance premiums (including flood insurance), or other charges with respect to a federally related mortgage loan.

The Fair Lending annual audit is designed to determine whether an adequate internal system to ensure compliance with the Equal Credit Opportunity Act, Fair Housing Act and Fair Credit Reporting Act is in place.

The Fair Lending Risk Assessment is designed to evaluate the banks internal system and to assign a level of risk associated with the fair lending program of the bank. The assessment will assess the volume of lending, types of products offered, policy requirements, marketing, current lending practices, complaints received, and internal controls. The assessment will assist the bank in establishing an appropriate audit program according to risk.

The Fair Lending semi-annual audit is designed to ensure that Adverse Action Notices are being properly completed and sent in a timely manner as required by law.

Lending Training for your staff covering the Fair Housing Act, Fair Credit Reporting Act and the Equal Credit Opportunity Act.

Long-term financial and capital planning should be based on the bank’s strategic plan. We have developed a model, whereby financial objectives established in the strategic plan along with growth, expansion, product development, capital expenditures, and rate and yield assumptions are incorporated into the long-term financial and capital plan. A summarized five-year pro forma balance sheet and income statement are produced. Once the five-year plan is fine tuned and approved, the annual budget should be prepared based on the first year of the financial plan as well as goals and objectives established in the strategic plan. Long-term financial and capital plans, as well as the annual budget, should be prepared to test and validate strategic plan goals and objectives, and provide monitoring methodology. Sound planning processes will ensure that your bank performs at its highest level.

The Fixed Assets audit is designed to determine whether policies, practices, procedures, and internal controls over fixed assets are adequate.

The Follow-up audit is designed to determine whether actions outlined in audit replies have actually taken place.

The Garnishment audit is designed to determine whether garnishments are processed according to the federal and state laws and the instructions in the garnishment order.

The HMDA audit is designed to determine if there is an internal system to ensure compliance with HMDA and to test its accuracy and adequacy.

The HMDA semi-annual audit is designed to determine if there is an internal system to ensure compliance with HMDA and to test its accuracy and adequacy.

The HMDA Scrub is designed to review the Home Mortgage Disclosure Act (HMDA) Loan Application Register (LAR) and compare it to the loan source documents for accuracy.

Training for your staff covering the hot topics, deadline and changes in the regulatory world of banking.

Liquidity risk is the potential that an institution might be unable to meet its obligations as they come due. Excess liquidity will adversely impact earnings and capital, while the impact of insufficient liquidity can range from an inconvenience to disastrous consequences.

MAi provides an independent review of the liquidity risk management process. Our review is performed using standards that will fulfill the requirements of the most recent Interagency guidance.

Proper liquidity risk management will prevent liquidity issues from impacting your bottom line or assuming a level of liquidity risk that is inappropriate for your organization.

Perform an independent review and evaluation of the interest rate risk management process in accordance with FIL-52-96/SR 96-13 and the Interagency Advisory on Interest Rate Risk Management, dated January 6, 2010.

Perform an independent review and evaluation of the liquidity management process, in accordance with the recent Interagency Policy Statement on Funding and Liquidity Risk Management, dated May 16, 2010.

Changes in interest rates can have a major impact on a bank’s earnings, capital, and economic value. We provide an independent review of the interest rate risk management process. Our review will meet the requirements of the most recent Interagency guidance. Our review covers the adequacy of related internal control systems, the appropriateness of the bank’s risk measurement systems, the accuracy of data input into the system, the reasonableness of assumptions, and the validity of risk measurement calculations, all relative to the size and complexity of the bank.

We will provide recommendations and suggestions for improving your interest rate risk management process. This review will ensure that your bank is properly measuring, managing, controlling, and reporting interest rate risk.

The ISP audit is designed to assess the quantity of risk and the effectiveness of the institution’s risk management processes as they relate to the security measures instituted to ensure confidentiality, integrity, and availability of information and to instill accountability for actions taken on the institution’s systems. The objectives and procedures are divided into Tier 1 and Tier II: Tier I assesses an institution’s process for identifying and managing risks. Tier II provides additional verification where risk warrants it. Tier I and Tier II are intended to be a tool set examiners will use when selecting examination procedures for their particular examination. Examiners should use these procedures as necessary to support examination objectives.

The Internal Control Program audit is designed to verify that the ICP approved by the Board of Directors is adequate and complete and to verify compliance with the ICP.

The Insurance audit is designed to determine whether (1) the bank’s insurance coverage adequately protects against significant or catastrophic loss (2) risk-management policies and procedures are adequate, and (3) the Board of Directors has established reasonable guidelines for the retention of risk.

The Internal Risk Assessment is designed to review general bank information, prior audits, the balance sheet and income statement to establish an appropriate audit program according to risk.

The Investments audit is designed (1) to verify compliance with laws, rulings and regulations, (2) to verify that the Investment policy is adequate and that the policy is adhered to and, (3) to verify that assets and related accounts are accounted for properly.

The Lending Insurance and Appraisal annual audit is designed to determine whether an internal system exists to ensure compliance with the following: Flood Disaster Protection Act (Flood), Appraisal Regulations (FIRREA), Real Estate Settlement Procedures Act (RESPA Section 1024.37). The procedures also test the accuracy and adequacy of the compliance system.

The Lending Insurance semi-annual audit is designed to determine whether an internal system exists to ensure compliance with the following: Flood Disaster Protection Act (Flood) and Real Estate Settlement Procedures Act (RESPA Section 1024.37). The procedures also test the accuracy and adequacy of the compliance system.

Lending Training for your staff covering regulation changes to Regulation X – RESPA, Regulation B – ECOA & Regulation Z-Truth in Lending.

Lending Training for your staff covering Reg X – RESPA, Reg C – HMDA, Reg B – ECOA, Reg V – FCRA, Appraisal, Flood, Reg O – Insider Lending, SAFE Act, and Reg Z – Truth in Lending.

The Liquidity audit is designed to determine if Board approved policies are appropriate and adhered to and whether management is planning for liquidity needs and determine if the bank can effectively meet anticipated and potential liquidity needs. It determines if management reports provide timely and accurate information necessary to facilitate the identification, measurement, monitoring, management and control of liquidity and funding risks.

MAi has developed a comprehensive liquidity planning process that projects future liquidity needs in accordance with current regulatory guidelines.

The process includes a risk assessment and identification of contingent liquidity sources. Current and projected liquidity needs are compared to approved ranges and exceptions are identified. The system also provides “stress-testing” the bank’s liquidity position under adverse circumstances.

The Loan audit is designed to determine whether the procedures and internal controls for processing loans are adequate and to determine the reliability of the information and the consistency of the application of accounting principles.

Management studies result in more effective management processes and will positively impact the bank’s bottom line. McCormack and Associates, inc., performs management studies which are customized to meet individual bank’s needs. Typically, the effectiveness of the bank’s organizational structure and the management team are reviewed. Management information systems and processes are evaluated. Planning processes and communication systems are reviewed as well as the content and quality of management and board reporting. Selected policies are reviewed to assure they are up-to-date and provide adequate guidelines from the Board of Directors to management. At the conclusion of the review, any weaknesses in the management process and recommendations for remedial action are documented.

Many times bankers are placed in a management position without the benefit of any training to perform that function. This program will prepare newly appointed managers to fulfill these responsibilities. This program is also a valuable refresher course for experienced managers.

The Mobile Deposit audit is designed to verify compliance with technology related risk involving mobile deposit transactions.

The NDIP audit is designed to verify compliance with regulatory guidance and verify that proper internal controls are in place over the NDIP function.

The Official Checks audit is designed to determine whether the controls over official checks are adequate.

The Operations & Item Processing audit is designed to determine if items are processed in a timely manner and are properly recorded, holdovers or suspense items are reviewed and approved on a timely basis, ensure adequate safeguards exist for the physical protection of items processed by the department, and ensure adequate internal control procedures are in place.

The OREO audit is designed to determine whether policies, practices, procedures, and internal controls over OREO are adequate.

Operations Training for your staff covering: Regulation DD, Regulation D, Regulation CC, Regulation E and Regulation GG.

The Other Assets and Liabilities audit is designed to determine whether policies, practices, procedures, and internal controls over these accounts are adequate.

The Other Income and Expense audit is designed to verify compliance with applicable laws and the bank’s own policies and to verify that adequate internal controls are in place over other income and expense accounts, prepaid and accrued expenses and their related accrual accounts.

The Overdraft Protection audit is designed to verify that proper procedures are in place over the Overdraft Protection program.

The Payroll & Benefits audit is designed to verify compliance with bank policy and to verify that adequate internal controls are in place over the payroll processing function.

The Regulation P audit is designed to verify that the bank has appropriate procedures in place to ensure compliance with Regulation P and to verify compliance with the regulation.

The Real Estate Lending annual audit is designed to determine whether an internal system exists to ensure compliance with the following and to test the accuracy and adequacy of the compliance system: Real Estate Settlement Procedures Act (RESPA), Flood Disaster Protection Act (Flood – Determination), Regulation Z – HPML, HHCML, ATR, QM, Rescission and Loan Originator requirements.

The Real Estate Lending SA audit is designed to ensure information required by real estate lending regulations is maintained in the loan files and appropriate use of disclosures.

The Regulation CC annual audit is designed to determine the adequacy and accuracy of the compliance function as it relates to Expedited Funds Availability Act and Check Clearing for the 21st Century Act (Check 21).

The Regulation DD, D, and GG audit is designed to verify that (1) the bank has procedures in place to ensure compliance with all provisions of the regulations, (2) the bank provides all required deposit account disclosures to consumers on a timely basis and that the disclosures are accurate, (3) the method used to pay interest is permissible and calculations are correct, (4) advertisements are not misleading or inaccurate and include all required information.

The Electronic Funds Transfers (Regulation E) audit is designed to determine the adequacy and accuracy of the compliance function as it pertains to Electronic Funds Transfers, Subpart B- Remittance Transfers, and Prepaid Accounts.

The Regulation O audit is designed to verify that a system is in place to identify Regulation O insiders and properly report loans as required by the regulation.

The Regulation V audit is designed to determine whether the bank has appropriate policy and procedures for an adequate Identity Theft Prevention Program policy and procedures, and proper procedures for handling change of addresses and address discrepancies on credit reports.

The Regulatory Reporting audit is designed to determine whether the bank has established procedures to ensure proper regulatory reporting.

The Remote Deposit Capture audit is designed to verify the effectiveness of a financial institution’s internal control processes over ACH, EFT/POS network, check item, electronic banking-related retail payments, and bankcard processing, clearance, and settlement.

Annual Required Training for your staff covering: BSA, Privacy, Security (Reg. H), Information Security, Community Reinvestment Act, and Fair Lending.

The Retail Credit Classification Loans audit is designed to determine whether the bank’s procedures and internal controls for processing loans comply with the requirements of the Uniform Retail Credit Classification and Account Management Policy (OCC 2000-20)

The Right to Financial Privacy audit is designed to verify compliance with the Right to Financial Privacy Act.

The Safe Act audit (Secure and Fair Enforcement for Mortgage Licensing Act of 20080 is designed to determine whether the financial institution has adopted written policies and procedures designed to assure compliance with the SAFE Act regulation.

The Safe Deposit Boxes audit is designed to determine the adequacy and accuracy of the accounting systems and controls over safe deposit boxes.

The Service members Civil Relief Act (SCRA) audit is designed to determine whether an adequate internal system to ensure compliance with the SCRA is in place.

The Security audit is designed to determine whether the bank has an adequate security policy, procedures, and devices to discourage robberies and other crimes, and to assist in the identification and apprehension of persons who commit such acts and also verify compliance with applicable laws and regulations.

The Social Networking audit looks for regulatory compliance of Bank’s social networking sites.

The Statement Review audit is designed to detect any unusual or illegal activity including kiting and to identify situations that may indicate a high risk of embezzlement or defalcation.

We guide banks through and facilitate the strategic planning process. A comprehensive strategic plan that is communicated throughout the organization ensures that the bank’s Board of Directors, management, and staff are all working toward common goals and objectives in an organized manner. The strategic plan is a prerequisite for successful long-term financial and capital planning and annual budgeting.

MAi assists community banks with strategic planning. We organize the planning process, facilitate planning meetings, and document the plan. Strategic planning goals and objectives should be validated through the bank’s financial plan, capital plan, and annual budget. Sound planning processes will ensure that your bank outperforms its competition.

The Teller/Vault Count audit is designed to verify that cash assigned to tellers is present and properly accounted for.

The Trust Department audit is designed to verify (1) compliance with laws, regulations, and rulings covering the Trust Department, (2) that proper accounting procedures are used, (3) that appropriate policies are in place, and (4) that the Trust Department operations are in compliance with these policies.

The objectives of the Vendor Management audit is designed to assess the effectiveness of the institution’s risk management process as it relates to the outsourcing of information systems and technology services; determine the effectiveness of policies and procedures in place related to third party vendors and to ensure compliance with laws, regulations, and rulings.

The Wire Transfers audit is designed to verify that proper internal controls are in place over the Wire Transfer function and that proper accounting principles are used.

The Website Compliance audit is designed to determine if the bank’s website is in compliance with applicable rules and regulations.