Section 45-13-007 - REPORTING007.01 A report shall be prepared and submitted to the Board of Directors or audit committee describing the scope of examination and setting forth the findings and recommendations as a result of the auditing procedures performed and review of operating procedures and system of internal controls Any open or unreconciled item at the time the report is submitted to the Board of Directors or audit committee must be disclosed and commented upon in the report.007.02 The report must include the the commencement and completion dates of the audit, a statement affirming independence, and a statement that the minimum requirements outlined in this Rule or in another applicable rule or guidance were met.007.03 For purposes of review by the Department, reports should follow the order of Section 004 of this Rule, and include the balance of the general ledger asset and liability accounts examined as of the examination date under the specific account headings. A description of procedures followed is to be a part of this report.007.04 Verification of accounts may be made on a basis of sampling to achieve a certain percent of reliability. For most examinations, a 95% reliability factor is considered adequate; in lieu thereof, the accountant may verify 10% of the number of accounts determined for confirmation. These two methods will give the accountant some flexibility when examining larger banks. If a shortage is determined to exist, a 100% verification of accounts must be made.007.05 With respect to the confirmation of loan and deposit accounts, submit a confirmation statistics summary showing the extent and results by type of confirmation and type of account rather than report the extent and results of such procedures under each specific account heading in the body of the report. Any accounts selected for confirmation which have not been or cannot be mailed or delivered to the customer are to be so listed in the final report.007.06 The Board of Directors must file an electronic copy or two paper copies of the report with the Department within 120 days after the completion of the directors' examination, or, for a periodic audit, within 120 days after the end of the calendar year. The Board of Directors may authorize the individual or firm performing the directors' examination or periodic audit to do the same.007.06 Any defalcation discovered during the examination or periodic audit shall be reported to the Department immediately by the Board of Directors. If the Board of Directors does not report the defalcation immediately, the accountant or firm has the obligation to do so. The accountant or firm should obtain the bank's advance authorization to notify the Department of discovered defalcations.45 Neb. Admin. Code, ch. 13, § 007
Adopted effective 11/25/2023