The banking sector in India has developed tremendously after it adopted the Core Banking Solution (CBS). Finacle is also one of such CBS software’s developed by Infosys. A number of Nationalised Banks are using Finacle as their CBS platform. Our Alma mater plays an important role in the process of auditing of PSU banks. The exercise of empaneling the auditors on year to year basis and submitting it to RBI for further forwarding to the PSU is a tough job. In the past, ICAI had aimed at setting up a benchmark in Bank Audits by using the technical expertise of Finacle partners, Infosys, as they have committed to provide us comprehensive and high quality solutions for our CA members to conduct the audit of banks effectively and efficiently.
Although Bank Audit is much more than just knowing the Core Banking Software, a proper understanding of such software ensures a smooth and result oriented Audit Procedure. In addition to software menus, we have to consider Relevant Master Circulars and Directions Issued by RBI in depth. Ultimately, an auditor objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
As per Guidance note for Bank Audits issue by The Institute of Chartered accountants of India, as part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control
- To obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances
- valuate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Report that the audit at branch level is not be able to conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained at branch, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
At the part of Auditors, it has become essential to have a working knowledge of Finacle in order to conduct Bank Audit. Finacle uses different menus for different functions and reports. In this article I have attempted to summarize 51 key Finacle menus and their uses related to Loans by the bankers. Finacle has hundreds of menu options but of course not all of them are useful to Auditors. This is only an exhaustive list of Finacle menu options which can be useful in the process of a statutory Bank Audit.
| Sr No | Menu | Menu Desc | Purpose |
| 1 | MS | Menu Search Based On Menu Name/Description | Useful menu for searching Menus by giving a string value. Search can be based on Menu Name or Menu Description. Menu list can be generated and LST (list) file can be downloaded and converted in to excel as ready reference. |
| 2 | ADTRPT | AUDIT REPORT | Various audit Reports are available |
| 3 | ADTRPT-28 | AUDIT REPORT | Branch to generate “range wise interest rate” account list to identify accounts where interest rate is not in accordance with Bank’s interest pattern. |
| 4 | BGDET | BG Details Report -List of LGs outstanding | Gives list of Bank Guarantees outstanding –More useful during half-yearly/annual closing /Audit |
| 5 | BRACMIS> CHOICE 2 (SUNDRY), CHOICE 3 (POB), CHOICE 4 (SUSP) | Branches MIS Report | Menu for generating entry wise details in impersonal accounts? (in regard to OAP) |
| 6 | BRACMIS>CHOICE 18 (SUNDRY), CHOICE 19 (POB), CHOICE 20 (SUSP) | Branches MIS Report | Menu for generation of reports regarding impersonal accounts? (Subsidiary balancing in regard to OAP/OAB) |
| 7 | CHLMT | Changes in Sanction Limit | This menu option will generate the report for change in limit details (HACLHM) i.e. new accounts with limit opened, Renewal and Enhancement of limit during the date range entered. |
| 8 | GENR | Guarantee Expired but not Reversed | Details of Guarantees expired but not reversed as on a given date is available |
| 9 | HABMR | Report of Accounts below Minimum Balance | HABMR menu can be used to generate report of accounts below minimum Balance for a given Duration (in months) for which A/c. was below Min. Balance for the scheme type SBA, CAA, CCA, ODA-Overdraft A/c. |
| 10 | HACINT | Account Interest -Running Account | Through this, Force run the interest application for those accounts where interest is not applied by the system |
| 11 | HAFI | Audit File Inquiry | Maintains history of Non-Financial operations- AFI generates a list of critical transactions which are required to be monitored closely, such as premature closure of an FD to check charges thereon or transactions in accounts having balance below minimum limit. |
| 12 | HASSET | Asset Classification | It shows the current classification and History of the Classification for the account. |
| 13 | HATOR | A/cs Turnover Report | This report provides the debit turnover, credit turnover, average credit balance, credit balance days, average debit balance, debit balance days, maximum debit balance, maximum credit balance, number of debit transactions, number of credit transactions for the given account (running a/c) for the given period. |
| 14 | HBDTR | Bills Due Today But Unpaid | This gives report of Bills due today but unpaid |
| 15 | HBR | Balancing Report | Balancing report Account wise / GL Sub Head Wise / Liability / Assets , Currency wise / Currency Consolidated wise/ for a given date |
| 16 | HCLMRPTS | Collateral Module Reports | Various reports over charges, security details and insurance details can be generated. |
| 17 | HCUCC | Cash Credit A/c | To check / View all open / close Cash Credit A/cs of a CIF ID with details like Total Debit Balance, Total Credit Balance, Scheme, Scheme Description, A/c. ID, CCY, Limit, Expiry Date, Balance, Future Clear Balance Amt., Status, Freeze, Record Type, Closed Status |
| 18 | HCULA | Retail Loan Accounts of Customer | To check / View all open / close Loan A/cs of a CIF ID with details like Total Debit Balance, Total Credit Balance, CCY, Sanction Limit, Balance, Future Clear Balance Amt., Future Unclear Balance Amt., Overdue |
| 19 | HEXCPRPT | Exceptions Report | Exceptional report can be generated for – Of a Sol ID, On a Sol ID, By a Sol ID for financial and non-financial transactions for a given period. Many banks have zero tolerance norms regarding generation of Exception Report every day in their branches.It generates the list of exceptional financial and non-financial transactions during the given period. Exceptional transactions such as activities in accounts which are due for review, advance balance greater than the Sanctioned Limit, accounts opened without introducers, system generated commission changed manually etc. – Auditor should verify such transactions and report any material irregularity observed. |
| 20 | HFTI / HFTR | Financial Transactions Inquiry and Report | Menu through which details of financial transactions and Intersol transactions can be known.- It allows searching the details of a transaction by its Transaction ID. List of transactions between ranges of amounts can also be generated from this menu. High value transactions which suddenly increased the advance or suspicious transactions can be seen and verified from this menu.
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| 21 | HFXTR | Foreign Exchange Turnover Report | To find Foreign Exchange Turnover Report for a Customer-Report is generated in the background, which has 4 parts viz., Part I – Export Bills/Factoring, Part II – Import Bills/Documentary Credits/Accounts Payable, Part III – Remittances & Part IV – Forward Contracts. |
| 22 | HGR1 | Generate Report | Daily /Weekly Statement of Affairs , Balance Sheet , Annexure to Balance Sheets, P&L, Annexure to P & L, Key Figures, Flash Data ,Closing Flash Data can be on a given date. This menu can effectively be used to figure out daily balance of advances and deposits of the bank. Major expenses can also be checked and provision of interest accrued and Non-Performing Asset can be verified. Sudden increase in advances and deposits just before the balance sheet date should be verified to check any window dressing done by the branch. |
| 23 | HIOGLT | Inquire on General Ledger Transactions | This is useful to know the position of business growth – sub head wise. Menu for knowing growth in business in a particular parameter, Report on General Ledger transactions of a day/week/month. |
| 24 | HISRA | Inventory Status Report | Inventory Status Report |
| 25 | HISTR | Inter SOL Transaction Report | Intersol transaction report can be generated based on – Of a Sol ID / On a Sol ID report for a given date |
| 26 | HLACLI | Ledger Inquiry | This menu can be used for ledger inquiry of loan account. Further Transaction Inquiry can be viewed by clicking on the Transaction Date |
| 27 | HLAMP | Loan Account Master Print | This menu can be used to print the various details of a Loan Account such as Basic Details, Interest Rate Details, DSA DATA, Loans – Top-up Details, Repayment Schedule Details, Fee / Charges Details, Document Details, MIS Codes, Loan Account- Product Specific Details, Loans – Credit Insurance and Subsidy Details, Loans- Interest Parameters, Guarantor Details based on the specified selection criteria. |
| 28 | HLAODR | Loans Overdue Demand Reminder/Report | Loans overdue demand reminder/ Report can be generated using menu. The Loan Demand Reminder will be generated |
| 29 | HLAOPI | Loans Overdue Position Inquiry | The position of demand, collection and overdue can be inquired / report can be generated for loan accounts under LAA Scheme type By further exploding the Demand type, Flow ID, Demand Effective Date, Installment Amt., Collection Amount, Waived Amt., can be viewed By further exploding the details Demand type / Subtype, Flow ID, Demand Effective Date, Installment Amt., Collection Amt., Adjusted Date, Overdue can be viewed. As the name suggests, this menu gives the average balance maintained in a particular customer’s account for given range of time. This is useful when commitment charges are taken on OD/CC accounts for underutilization of sanctioned limit. Average Balance for a quarter of OD/CC accounts can be found out and checked if commitment charges are applicable on them as per bank’s norms. Thus revenue leakage can be identified. |
| 30 | HLARSH | Loan repayment schedule report | This menu can be used to generate the loan repayment schedule report. Amortization Schedule is drawn based on Actual balance of loan account when Schedule is set as Actual. |
| 31 | HLDOCI | Document Inquiry | This menu can be used to inquire the document details of a loan account |
| 32 | HLFEEI | Loan Fee Details | This Menu can be used to inquire Loan fee details like Total Assessed Amt., Total Collected Amt., Waived Charges, Total fee Outstanding. |
| 33 | HLINTI | Inquiry on Interest | This menu can be used for inquiry on interest of loan account under CLA /LAA Scheme type. It gives Interest details (Interest Table code, Interest Rate, Customer Preferential Rate, A/c Preferential Rate), Penal Interest details & Accrual and Collection Information. |
| 34 | HLNGI | Loan General Details | This menu can be used for general inquiry of the Loan Account. |
| 35 | HLPAYH | Payment History | This menu can be used to check the payment history in the loan account. The inquiry will display Balance, Next Payment Due, Due Date, Principal, and Interest & Total Past Due. It also gives demand and collection in loan account with detailed like Due Date, Installment Description, Total Demand Amt., Principal, Interest, Collections and Adjusted Date. |
| 36 | HLTL | Limit Tree Lookup | This menu can be used to generate limit tree details of a CIF ID. It shows the details of Fund Base and Non-Fund Base limit attached with the CIF ID and liabilities at the time of inquiry. |
| 37 | HTODRP | Temporary Overdraft Register Printing | This report will furnish details of overdraft allowed, including intraday. |
| 38 | ICACD | Inquire Customer Asset Classification Details | ICACD menu can be used to inquire customer asset classification details. It lists all the Accounts for a CIF ID and their classification. |
| 39 | INQLADC | Loan Documents Expiry Report | The menu option is used to generate the loan documents expiry report for the given period. It gives report with Account ID, Account Name, Document Code ,Document Desc, Date of Doc and Expiry Date, etc. |
| 40 | INSEXPD | Insurance Expired | The menu option INSEXPD is used to generate the insurance expired up to a given date. It gives report with Linkage type, Account Number, Limit ID, Policy Amount and Expiry Date. |
| 41 | INTCAL | Interest not calculated on Accounts | Accounts where interest is not applied (On the date of interest application after HSCOD, branch to generate the report on list of accounts where interest not applied , after HSCOD) |
| 42 | LAROR | Review Overdue Report | The report showing the Account Name Scheme Code/Type, Sanction Limit, date of review, expiry date, Asset Class, Outstanding & Sanc Auth can be generated using this menu option LAROR. The menu can be used for future dates also. |
| 43 | M27R | M27 Reports | This menu is used to generate the M 27 report based on Sanctioning Authority for a given |
| 44 | MNDTRPT | Mandatory Report | Critical Reports through a single menu can to be generated and check all the points and rectify any irregularities, if any. |
| 45 | NPAPSP | NPA Pass Sheet Print | Pass Sheet for NPA Account can be generated through this menu. The statement of account of an NPA account from the date of NPA starting with the balance and reversal of unrecovered interest. Statement shows interest accrued entries as well as actual transactions such as recovery or credits and interest application. |
| 46 | NPARECO | NPA Cash Recovery Report | NPARECO menu will generate the report of recovery in NPA accounts of a given SOLID / SETID with details of SOLID, Scheme Code, Account Number, Account Name, Current Balance, Asset Classification Status, and Recovery in the account for the given period, with Scheme Code wise Subtotal and Grand Total of Recovery. Listing of these details with “pipe-delimiter” is also generated for the purpose of importing in MS Excel. |
| 47 | NPARPT | NPA Reports Menu | NPARPT menu provides the following four typesofreports:
Viz.1.ConsolidatedDummyLedger 2.NPA PASS SHEET PRINT, 3.SYSTEM NPA LISTING 4.NPA Acct Details. This menu simply generates the list of accounts classified as NPAs in Finacle. Auditor should verify that the balance sheet shows the exact amount of NPAs as Finacle. Discrepancies, if any, should immediately be reported. |
| 48 | OTSTM | One Time Settlement (OTS) | OTSTM menu is used to handle the recoveries in the NPA Accounts under Bank’s Special or Onetime Settlement schemes |
| 49 | PCOD | Overdue Packing Credit O/S’s
-Details of overdue packing credit and interest thereon |
Details of overdue packing credit are available on real-time basis through the menu option PCOD Interest report through AINTRPT.- This menu option lists the Packing Credits disbursed to various customers which are overdue as on date. Recovery process should be done by the bank in all such cases.Auditor should also verify that the due date of Packing Credit is decided according to the Sanction Letter. |
| 50 | SECDET | Loan Accounts Security Details | This report helps to find out term loan accounts where security is not adequate. |
| 51 | STKSTMT | Non Submitted Stock Statement / Book Debt | The menu option STKSTMT is used to generate the report of non-submission of stock statement/ Book debt by the customer. |
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