Maintaining The Bank’s System OF Account, Part 1



S  J Tubrazy

The bank’s standard accounting system has been drawn up with a view to facilitating expeditious transactions of branches dealing with the public and the same time safeguarding the bank from losses by fraud. Managers and other supervising officers must see the procedure laid down is regularly observed.

                Fraud can best be prevented by

  1. Recruiting the right type of men as employee.
  2. Using careful discrimination in accepting new constituents.
  3. Constantly changing the duties of the staff.
  4. Carrying out a comprehensive and intelligent check over each day transaction and
  5. Frequently balancing the ledgers.

Mangers must satisfy themselves daily by an examination of the books that they are properly kept and have been checked.

The value of surprise inspections and balances must also not be overlooked. In the course of their general supervision mangers and other members of supervising staff should call for various books at directly responsible for their correctness are made aware that their work is under the eyes of their superiors.

Managers should periodically review their office routine with the two-folded object of eliminating any unnecessary work and assuming themselves that they are abiding by the bank’s rules and regulations. In order that certain salient features may be kept before managers and other members of the supervising staff a monthly certificate F.10 will be submitted by every branch to its local principles office on the last working day of each month. This certificate must not be regarded as a matter of form but must be a true statement of fact and where necessary the wording should be altered accordingly under authentication.

On no account may alteration in the bank’s books or vouchers by erasure or overwriting be permitted. When an alteration in an amount has to be made the whole amount must be neatly rules through and the correct amount inserted immediately above or below, the alteration being authentication by the initials of an authorized checking or passing officials. The practice of altering one figure or some of the figure in an amount and initialing the partial alteration is prohibited; interlineations or writing under the last line in the banking system is also prohibited.