The purpose of this project in VBA is
to facilitate the use and uniformity of an impairment analysis of bank assets.
In accordance with Financial Accounting Standards (FAS) 114 and FAS 5, every
loan held by First Utah Bank must be analyzed for impairment. In layman’s
terms, this means each loan must be analyzed to make sure that the bank will
get back all of the principal and interest owed. This is a very strict rule
enforced by the Federal Reserve, which audits the bank’s loan portfolio
semiannually.
In the past, the documentation for
this process was fragmented and unfamiliar to those loan officers who were
required to fill out these forms. There were many questions as to what needed
to be included in an impairment analysis. For each loan officer, you would find
a different approach to justifying why or why not a loan may be considered
impaired or not. In addition to incorrect approaches taken, other problems with
the process existed, mainly, human errors when inputting information into the
document, and failure to update and print out all the new documents
semiannually per each audit from the Fed.
When auditors from the Federal
Reserve would see multiple approaches to doing an impairment analysis (many of
them very incorrect) or errors in an impairment analysis, it reflected very
poorly on the bank’s management and resulted in tighter controls and
regulations, which, from the bank’s perspective, is universally deplored.
In order to facilitate the uniformity
of the impairment analysis document, this VBA project includes a much more
friendly form to use, with only minimal inputs required by the user of the
form. Any time that information required on the form can be obtained from the
bank’s customer database, that information is pulled automatically from the
database rather than having the potential for human error introduced into the
system.
Finally, when the user is done
completing the form, there is a button that the user can press which will print
all the forms created. This is a massive time saver for the user, who in the
past would have to go in and individually print out dozens, if not hundreds of
documents.
Below you will find a complete
walkthrough of the form, including how it is to be used and what is needed to
complete the form. There are five sections to the form, with each section being
detailed below.
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