S No.

Criteria Fact/ Condition Auditee Response

1. The Sub-Committee shall assure The committee minutes

that accrued but have not shown on the
uncollected
interest reflected on the books of assessment of accrued
but uncollected
the bank is in accordance with the
interest reflected on
requirements of the NBE's the book.
Directives; (SBB 69/2018 Art
4.1.3)

2. The Sub-Committee ensures that Evidence that shows

overdraft facilities are properly assessment of
used by borrowers only for the utilization of overdraft
facilities by borrowers
purposes specified in the contract
has not been obtained.
entered with the Bank, and in the
event that such loans are diverted
from the intended purpose, it
enables the Bank to take timely,
prompt, and appropriate corrective
actions. (SBB 69/2018 Art 4.1.4)

3. The Sub-Committee shall Discussions have not

made on the case of
calculate, in accordance with the
Single Borrower Loan Limit, all the single borrower
loan limit in depth.
loans or advances required to be
placed on non-accrual status in
accordance with the requirements
laid out in the directives.(SBB
69/2018 Art. 4.5)

The committee should ensure that Discussions have not

uncollectable non-performing loans made on the case of
or advances are written off as uncollectible loans and
appropriate. (SBB 69/2018 Art. possible write off.
4.4.6)

I. Issues related to Compliance with NBE

 II. Issues related to the TOR and Minutes

S No. Issue Auditee Response

1. The Sub-Committee Deliberate and reviewing periodic
loans review reports and present its findings and
recommendations to the Board deliberation ;( TOR PP 6)

2. The Sub-Committee Chairperson will periodically report

the findings of the Sub-Committee and other
pertaining discussion issues to the full Board; (TOR )

3. The TOR did not require the appointment of Vice

chairperson that will undertake the duties and
responsibilities of the chairperson in absentee.

4. According to minute No 55/2022 agenda was draft

revised loans Review Guideline however the
committee has not discuss and approved.

5. On minute No 56/2022 the committee has

recommended that RCMD should clearly write to
management for taking action on the branches not
rectifying finding on time. However the result of
action not incorporated on the report.