4. That the examinations include both the bank and its branches, if any.
The divisions of the department are, accordingly, somewhat as follows: 1. For handling the daily routine: (a) The domestic accounts reconcilement subdivision (b) The domestic accounts investigation subdivision (c) The domestic accounts verification subdivision (d) The foreign "our" accounts reconcilement and investigation subdivision (e) The foreign "their" accounts reconcilement and investigation subdivision (f) The foreign account verification subdivision (g) The canceled coupon verification subdivision (h) The expense bills checking subdivision (i) The pass-book subdivision (j) The statement and check filing subdivision 2. For handling the periodic examinations: (a) Subdivisions for the examination of the depart ments of the bank (b) Foreign branches subdivision The degree to which these various subdivisions are fused and consolidated or to which they are further subdivided and others added to handle miscellaneous duties varies, of course, with the bank and the nature and volume of its business. The above classification is, however, typical in the sense that the duties specified are incumbent upon all banks (exception may be made of the foreign accounts and branches) and the specialization of clerks and subdivisions along these lines proceeds as the bank grows in size.
The Reconcilement of Domestic Accounts The reconciling of accounts is considered a very important feature of the department's work. The reconcilement of an account is the periodic reduction of an account to agreement as between debtor and creditor. Through error, misunderstanding of instructions, failure to receive, and to charge or credit items sent, or in numerous other ways, differences of account are very likely to arise between a bank and its correspondent or other customer. It is necessary and desirable that these differences be frequently adjusted and the account made congruent. The promptness with which reconcilements are made by a correspond ent is taken into consideration when the bank extends a line of credit to it. Reconcilements provide a medium through which the correctness of entries is determined, and careful attention is, accordingly, paid to them.
Blank reconcilement forms for official signature and return to the bank are forwarded with all statements of accounts. The balance as stated on the reconcilement form by the depositor is checked with the bank's record and all exceptions are adjusted under advice. When the reconcilement forms are returned bear ing a signature not on file with the bank, the bank writes to the depositor to learn whether or not the person signing has authority to do so. A record is kept of the date up to which each depositor has verified the account as rendered by the bank, and these records are examined periodically. If an account has not offi cially verified its balance for two or three months, a special letter is written asking that it be done. This invariably brings the desired result. In the case of small banks and individual ac counts the statement will be likely to contain the injunction, "Please examine and report any errors at once to the bank, as this statement will be considered correct unless we are notified to the contrary." The Investigation of Domestic Accounts The usual policy and rule of action of banks is that all in quiries and complaints relative to finished business and instruc tions affecting an original entry are to be delivered to the audit ing department for attention. A thorough investigation is promptly made of the facts pertaining to the transaction about which the complaint or inquiry is received; these facts arc re ported by letter to the complainant, and if the bank is at fault, through error or misunderstanding, effort is made in this letter to allay any ill-feeling that may have arisen. If in the investiga tion it develops that no department has made an error, but that a question of the bank's policy is involved, the matter is referred to that one of the bank's officials in whose territory the customer is located. Should the auditor of this subdivision of his depart ment decide that the existing method affecting the particular case can be improved or should be radically changed or a sub stitute method provided, recommendation to that effect is made.