Rural Bank of Cabadbaran, Inc.

SUMMARY OF AUDIT FINDINGS

REAL AND OTHER PROPERTIES OWNED OR ACQUIRED

REQUIREMENT

FINDINGS

1. A detailed subsidiary record for

There are some items that

each item should be maintained

does not contain information

showing the following minimum

about the location of the

information:

property.

a. From acquired
b. Date acquired
c. Acquisition cost
d. Description of property
e. Location of property
None
2. There should be an organizational
unit responsible for the administration
and disposition of

all such assets

MANAGEMENT COMMENT

ASSESSMENT

and, also for the performance of the

following functions:
a. Maintain proper accounting for all
income and all expenses for each
asset held;
b. Make periodic reports to the board
of directors as to new acquisitions,
sale and status of outstanding
assets;
c. Conduct periodic appraisals of
asset values to update records with
current or market prices;
d. Maintain adequate insurance
coverage of assets.
3. A physical inventory of all items

No physical inventory for the

held should be conducted at least

current period was

once a year by the internal auditor or

conducted.

control officer.

None
4. The board of directors or its
committee should review all
acquisitions and dispositions of these
assets monthly.

5. No asset should be disposed of

We were not able to

without prior authority from the board

communicate with the Board

of directors or its committee.

of Directors.

6. Instruments showing ownership of

We were not allowed to

assets should be held under joint

access the vault that

custody and segregated from loans

contains the documents.

collateral instruments.