Learning Objectives:

• Improve your audit efficiency and effectiveness
• Review the necessary steps for auditing the lending process in detail
• Explore the differences in special loan types
• Learn how to audit the allowance for loan losses process
• Learn how to monitor credit and lending processes for possible fraudulent activities

Day 1

Monday, August 23, 2010
8:00 AM – 8:30 AM Registration & Continental Breakfast
8:30 AM – 5:00 PM Workshop

Introduction

• Roles and responsibilities of credit

Auditing the Credit and Lending Process

• Pervasive controls
• Board and management oversight
• Policy review
• System access
• Official checks
• Reconciliations
• Segregation of duties
• Spreadsheets

Originations

• Originations process
• Underwriting
• Approval
• Disbursement
• Booking
• Appraisals
• Credit scoring

Servicing

• Collateral
• Documentation monitoring
• File maintenance
• Advances on lines
• Construction loan draws
• Payments and payoffs
• Credit life insurance
• Escrow

Portfolio Management

• Accrued interest receivable
• Deferred fees and costs (FASB 91)
• Modifications / extensions / renewals
• Delinquencies and nonaccruals
• Collections / other real estate / repossessions
• Specialized reporting

Day 2

Tuesday, August 24, 2010
8:00 AM – 8:30 AM Continental Breakfast
8:30 a.m. — Noon Seminar

Special Loan Types

• Commercial real estate
• Development loans (interest reserve)
• Employee loans
• Dealer floor plan loans
• Indirect loans
• Participation loans
• Credit cards

Auditing the Allowance for Loan Losses Process

Auditing Loan Review

Fraud in Lending

• Current conditions
• Fraud definitions
• Elements and examples of lending fraud
• Red flags of fraud
• Fraud detection best practices

FMS is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.

• Level: Basic to Intermediate
• Prerequisites: None
• Advance preparation: None
• CPE: up to 12 hours in Accounting
• Instructional Method: Live-Group

For more information regarding administrative policies such as complaints or refunds, call 800-ASK-4FMS (800-275-4367).

Anyone responsible for auditing the credit and lending functions at a bank, thrift or credit union, including:

• Auditors
• Risk managers
• Credit risk officers
• Loan review officers
• Compliance officers

DoubleTree Hotel Nashville
315 4th Avenue North
Nashville, TN 37219

Reservations: 800-222-8733
Special room rate: $119 single/double
Deadline for rate: August 2, 2010

You must identify yourself as part of the Financial Managers Society program to receive the preferred rate. Reservations are limited to availability, so book early to ensure your savings.

Airport Transportation:
Transportation between Nashville International Airport and downtown hotels is provided by Grayline Airport Express. The current cost of this service is $12 one-way and $18 round-trip.

Reservations for individual travelers are not necessary. The shuttle departs approximately every half-hour from the airport. Please note that Grayline offers special group round-trip discounted rates for groups having fifty or more attendees utilizing this service.

Parking:
For the convenience of your guests, the Doubletree Hotel Nashville offers valet parking with in/out privileges for $24.00 per day, plus tax.

Attire
Seminar attire is business-casual. Please bring a jacket or sweater as meeting rooms may be cool.

Refunds and Cancellations
A refund minus a $150.00 processing fee will be provided for cancellations received by FMS in writing by August 10, 2010. No refund can be given for cancellations received after that date; however, a substitution from your company is welcome. FMS reserves the right to change instructors or reschedule/cancel sessions when necessary. FMS is not responsible for airfare penalties that may be incurred due to the cancellation of FMS programs.

Save $100 with a Members-Only Team Discount!
FMS Members and their coworkers save $100 per person when they register two or more employees. Simply complete one form per person and deduct $100 from the fee.

Not an FMS Member? Join now and save with the team discount today!

Diane has over 20 years of experience providing operational risk consulting to financial institutions. Her primary area of expertise is internal auditing, including a significant background in reconcilements, item processing, and lending. Diane’s current role at Crowe focuses on providing loan review, internal audit, Sarbanes-Oxley Section 404, and Quality Assessment Review services. Her clients have ranged from de novo banks to large, billion-dollar, financial institutions.

Ryan has over 12 years of experience working with financial services companies providing internal audit, compliance, and risk consulting services to $100 million dollar denovo bank’s to multi billion dollar bank holding companies. Ryan’s experience includes working with over 50 different financial services clients ranging from small community financial institutions to multi-billion dollar, multi-national financial services clients.