Branch Operations Control

INTERNAL CONTROL
CSR-TELLER
 OBJECTIVES

• To recognize the importance of internal control.

• To identify the internal controls for CSR-Teller and
apply it on various transaction processes in the
branch.
• To understand the attendant risks and sanctions
for not complying to Bank’s internal control
policies and procedures.
 OUTLINE
I. Overview-Operations Control Group (OCG)
II. Internal Control
III. Internal Control Policy per BSP
IV. BSP Control Standards
V. Implementer of Internal Control
VI. Control Basics
VII. Internal Control for CSR-Teller
 OPERATIONS CONTROL GROUP

Branch Operations Control Division Branch Supervision and Control

(BOCD) Division (BSCD)

Branch Control Assessment

Department (BCAD)

Branches
INTERNAL CONTROL
Check and balance process incorporated by an organization in its
day-to-day operations to:
1. Safeguard its interest.
2. Check the reliability of financial data.
3. Encourage adherence of employees to prescribed managerial
policies.
 BASIC INTERNAL CONTROL POLICY
(for compliance of all bank personnel)

BSP Regulation Section X

No individual shall have complete authority and responsibility for

handling all phases of any transaction from beginning to end
without some check or balance from some other part of
the organization.
 BSP CONTROL STANDARDS
• PROPER ACCOUNTING RECORDS
• INDEPENDENT BALANCING
• DIVISION OF DUTIES AND RESPONSIBILITIES
• JOINT CUSTODY
• DUAL CONTROL
• NUMBER CONTROL
• ROTATION OF DUTIES
• INDEPENDENCE OF INTERNAL AUDITOR
• CONFIRMATION OF ACCOUNTS
• SIGNING AUTHORITIES
• OTHER INTERNAL CONTROL STANDARDS
 IMPLEMENTERS OF INTERNAL CONTROL

• Branch and other units of the bank

• Operations Control Group (BOCD/BSCD/BCAD)

• Audit Group
 CONTROL BASICS
JOINT CUSTODY DUAL CONTROL
• Items are processed by one • The work of one person is
person in the presence or to be verified by a second
under direct observation of person to ensure that the
a second person. transaction is properly
• At least two (2) persons authorized, recorded and
shall be assigned half of the settle.
control (keys and
combination).
• Both persons shall be
equally accountable.
 THREE LAYERS OF CONTROL

1st Layer- • Process transactions based on policies and

procedures (Accuracy at Source)
Maker/Processor • Under appropriate authority and documentation
(CSRs)

2nd Layer- • Check the propriety of transaction prior to

Checker/Approver approval
(BOOs) • Prompt checking and approval of transactions

3rd Layer-
• Conducts post transaction verification
Recorder/Reviewer • Review of records and documents
(BRaD/BSCD)
 ACCURACY AT SOURCE
Accurate/correct processing of transaction for the first
time.

• Examine completeness of the form before posting.

• Check information details on the form written by the client vs.

details on the screen before processing the transaction.

• Immediately after posting, perform media verification- check

the validation print vs. the details written by client in the slips
(act #, acct name, amount etc.).
 Triangular Balancing
Reconciling the totals of the following:
1. Validating machine (Teller’s Total)
2. Source documents
3. Accountabilities (cash/check items).

Triangular balancing should be performed by :

Processor (CSR) - for his own transactions / accountabilities

Supervising officer (BOO) – for the branch’s over all
transactions /accountabilities
BRaD – verification of accuracy of triangular balancing done by
the CSR and the BOO
TRIANGULAR BALANCING

ACTUAL
CASH

CASH

TELLER’S
MEDIA TOTAL
 ACCESS CONTROL
User IDs and passwords define for certain limits/facility

• Exclusive knowledge of the user only.

• To establish the accountable person for each processed
transaction.
• To prevent processing of unauthorized transaction
• Password shall not be disclosed by the authorized user to
anyone.
SANCTIONS : DISCLOSURE OF PASSWORD

1st Offense 1 week Suspension

2nd Offense 1 month Suspension

3rd Offense Termination of Employment

 Transaction Override
• Allows the system to process the transaction beyond set
limits/conditions.
• Represents the officer’s approval on the processing of
transaction.

Error Correction
• Erroneous entry/validation corrected the same day.
• Erroneous and corrected validation should be reflected on the
same media/ document.
ALLOWED NUMBER OF ERROR CORRECTIONS

No. of Teller’s Number of EC’s Number of EC’s

Transaction per day allowed per week Sanctionable

Less than 200 per 6 or more EC’s for

Five (5)
day the week

Above 200 but less 8 or more EC’s for

Seven (7)
than 300 the week

11 or more EC’s for

Above 300 per day Ten (10)
the week
SANCTIONS FOR EXCESSIVE ERROR CORRECTIONS

1st Offense Written Reprimand

2nd Offense 3 – day Suspension

3rd Offense 1 – week Suspension

4th Offense 2 – weeks Suspension

 SANCTIONS FOR EXCESSIVE
ERROR CORRECTIONS

5th Level of Offense

Termination of
Employment
HANDLING OF OVERAGES/SHORTAGES
• Validate shortages as “Cash Transfer Out”.
• Validate overages as “Cash Transfer In”.
• “Dummy validation” or “Force balancing” of the system cash shall be
subject to administrative sanction.
• Any cash discrepancy should be immediately relayed to BOO.
• CSR to prepare a narrative of circumstances surrounding the incident of
overage/shortage and submit to the immediate supervisor copy furnished
Branch Head (BH).
HANDLING OF OVERAGES/SHORTAGES
• Request for refund of overages not attended by fraud or crime
shall be approved by the following:

Refund Endorsed By Approving Body

Up to P10,000 ------------------------ Designated BOO

Greater than 10K up to Designated BOO BOCD Head

250K
Greater than 250K BOCD Head COG Head/Deputy
Controller

• Refunds approved by the Designated BOO shall be reported to

the Controller (thru BOCD) within 24 hours.
HANDLING OF OVERAGES/SHORTAGES
• A quitclaim shall be executed in 2 copies by the client who
requested for the refund.
• The signature of the client on the Quitclaim shall be verified by
the branch authorized verifier.
• In case of shortages where the concerned committee
approved salary deduction, the Check-Off Authorization on
Shortages shall be accomplished by the affected CSR and the
BAC for submission to OAGC copy furnish BOCD,IAG,HRMG.
INTERNAL CONTROL
FOR CSR-TELLER
 CSR Teller’s Activity
Beginning of day: Policies and Procedures:

• Retrieval of cash/picos box • Should not be assigned to

you the previous day
• Count in the presence of
the BOO
• Immediate validation of CTS
• Initial operating cash should
not exceed 200k
 CSR Teller’s Activity
Cash/Picos Box Contents:
• Cash Transfer Slip
• Loose bills and coins
• Bait Money
2 pcs-P500.00
50 pcs.-P20.00
(should be inserted in the
money clip during the day)
 CSR Teller’s Activity
During the day Policies and Procedures
• Ensure Integrity of access • Unauthorized persons are
and security not allowed inside the cage

• Drawers and Teller’s

terminal should be locked
when leaving the
workstation even for a brief
period of time
 CSR Teller’s Activity
During the day Policies and Procedures
• Handling of cash • Cash limit – should not exceed
P500,000.00; $3,000.00 or its
equivalent
• All cash transfers should be
covered by CTS and validated
immediately
• Bundled notes/coins is never
displayed openly to on-lookers
and is kept out of reach of other
persons from outside the
teller’s cage
 CSR Teller’s Activity
Cash Transfers Policies and Procedures
• All cash transfers should be
sorted, piece counted,
machine counted and
bundled with fresh
wrappers.
• Fresh wrappers should be
stamped with the current
date and signed/initialed by
the CSR
CSR Teller’s Activity

Cash Breakdown

Full signature of
transferor

Full signature of
transferee
 CSR Teller’s Activity
Common bank transactions Policies and procedures
• Acceptance of Cash Deposit • Deposit of >P1.00 shall not
be allowed.
• Shall be counted in the
presence of the client.
• Exercise due diligence in
processing cash deposits
amounting to 500k and
above.
• Cash breakdown should be
indicated.
 CSR Teller’s Activity
Cash Deposit Ensure accuracy at source
• Prior to posting, check the
details written by the client
against the mosaic screen.
• If in order, validate the
transaction.
• Perform media verification-
ensure that the printed
validation is the same as the
details written in the
deposit slip.
 CSR Teller’s Activity
Common bank transactions Policies and procedures
• Acceptance of check • Ensure that the check for
deposit deposit has no technical
defects.
• Should not be second
endorsed check.
• 10 digit account no. should
be written at the back of
the check for deposit.
• Check details should be
indicated in the dep. slip
 CSR Teller’s Activity
Check deposit slip Ensure accuracy at source
• Prior to posting, check the
details written by the client
against the mosaic screen.
• If in order, validate the
transaction.
• Perform media verification-
ensure that the printed
validation is the same as the
details written in the
deposit slip.
Check deposit
 CSR Teller’s Activity
Common bank transactions
• Processing of Domestic Bills • Should be approved by the
Purchased (DBP) branch officers prior to
posting.
• Ensure accuracy at source –
same process as check
deposit.
 CSR Teller’s Activity
Common bank transactions
• Withdrawals • Ensure correct
posting/validation -Accuracy at
source
• Request for valid IDs and
indicate on the transaction
media if necessary.
Indicate the
breakdown
Should be signed in
front of the CSR

Should be always be
compared against
Verify against the SVS the sig. of the client
Approving
Authority
 CSR Teller’s Activity
• Withdrawal via representative:

Authorization Letter

Client’s signature Representative’s signature

Encashment
 CSR Teller’s Activity
Common bank transactions Reminder:
• Withdrawals/Encashments • Observe the proper
approving authority limit

• Wdls/Enc amounting to
1.2MM and above shall
require confirmation with
the client if the transaction ,
as assessed by the branch is
doubtful
Establish Limits to Authority:

• Inter-branch withdrawal/encashment is referred to BOO

for branch approval if beyond your authority, or for
depository ‘s branch approval & client confirmation if
beyond branch authority.

• For closing of account, ensure proper verification of

signature and secure approval from the BH/ BOO prior to
closing . Perforate passbook/ unused checks/ Electronic
Teller (ET) cards and turnover the CSC to Controllership
Group-Records Management Department for file/ proper
disposition.
 CSR Teller’s Activity
Other bank transactions
• Purchase of Foreign • Ensure that the following forms
Currency were properly filled out:
a. Application for Miscellaneous
transactions (AMT)
• Sale of Foreign Currency b. Application to Purchase Foreign
Exchange (APFE)
c. Other supporting documents for
sale exceeding threshold
c.1. Individual - $500k
c. 2. Institution - $1.0MM
 CSR Teller’s Activity
Mid-day Activitiy Purpose
• Perform mid-day reconciliation
by balancing totals of actual • Ensures that all transactions
cash on hand against tellers’ were accounted prior to
total net cash. taking lunch break
• Early detection of
• Submit and sign printed mid- shortages/overages
day balance report to BOO.
 CSR Teller’s Activity
End of day Activities
• Prepare CTS and transfer out net • Witness counting of the BOO and
cash to BOO have him/her sign on the
“Received by” portion.

• Scanning and linking of document • Perform triangular balancing

– eJMC

• Perform close day procedures • Ensure clean working

area/drawers at the end of the
day, all pertinent documents safe
kept/endorsed to the BOO.
 EJMC Processing/Review
Processing CSR Reviewing CSR
• Scan the document and link • Perform media verification
to the correct sequence no. • Ensure that all transactions are
as per validation/teller’s within the approving authority
journal limits
• Tag the document “for • Ensure that the documents
regularization” if necessary were properly linked to the
correct sequence
• Scan the necessary no./transaction
supporting documents as
• Ensure that all items for
attachment to the orig. regularization were tagged as
document if any. such
 REMEMBER

• All documents should be properly filled out by the client.

• All cash transactions should have a cash breakdown
• Serial no. of FXCY cash transactions should be properly
recorded and acknowledged/signed by the client
• Any alteration on the document/posting media should be
countersigned by the client
• All transactions should be posted/processed in the presence
of the client/authorized representative
 LOSS DUE TO ERRONEOUS

POSTING OR NEGLIGENCE SHALL

BE FOR THE ACCOUNT OF THE

ERRING PERSONNEL

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END OF THIS SESSION
THANK YOU!

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