BRANCH TAKE-OVER CHECKLIST

FOR

BRANCH MANAGERS

February 2007 Page 1 of 8

 BRANCH TAKE-OVER CHECKLIST
Introduction

As a Branch Manager taking over a NEW branch, use this checklist to

assess the current operational state of your new branch in context to:

• Administration

• Security

• Cash Control

• Accounting

• Banking Services

• Lending Activities

This checklist is meant to be a guide to quickly determine strong and weak

areas of the operation of the Branch. Where weak areas are identified – develop
an action plan to eliminate the risk or exposure to your branch. If you have any
questions, contact Distribution Channel Operations:

Local in Montreal (514) 877-9448

Local in Toronto (416) 515-0015
Toll free all locations 1-877-678-7777

February 2007 Page 2 of 8

 BRANCH TAKE-OVER CHECKLIST
HUMAN RESOURCES & ADMINISTRATION

ACTIVITY OBSERVATIONS/ACTION
1. Review list of employees and meet all personnel. Review LFS
(Learning for Success) status for subordinates. Obtain and
review last Area Employee Opinion survey.

2. Review your new role profile, your accountabilities and

authorities.

3. Order business cards.

4. Examine organization chart, authorized complement, role profiles,

standards, personnel files, overtime/part-time arrangements, time
sheets, status of salary and performance reviews and plans.
Ensure that all personnel have been provided with their role
profiles and are aware of their reporting relationships.

5. Ensure Letters of Authority to you from your Personal Banking

Area Manager are in place.

6. Review Health & Safety plans/records and complete training if

necessary. Ensure all employees have read and understand Part
II of the Canada Labor Code Health and Safety (Canada), #040-
05

7. Obtain and peruse last district Corporate Audit report. Review

follow-up and any comments from the audit executive
management letter related to your branch.

8. Review any special Bank operating procedures. Is authorization

held?

9. Review routine operations to ensure practices are up-to-date and

efficient.

10. Review training and development plans, vacation schedule and

outstanding placement issues with employees and/or Human
Resources.

11. Check Mechanical Equipment and adequacy of Premises.

Ensure equipment matches needs. Review any contracts (may
be held at Support Services) that are applicable.

12. Review stationery supplies.

13. Review litigation files covering lawsuits against or by the

branch/Bank.

February 2007 Page 3 of 8

 BRANCH TAKE-OVER CHECKLIST
SECURITY

ACTIVITY OBSERVATIONS/ACTION
1. Complete full take-over of safekeeping/collateral and securities,
i.e. engraved forms, traveler’s cheques, etc. Update Form 552 -
Register of Combinations and Custodians. (Policies &
Procedures: Protective Custody, #810-01, Overview)

2. Change combinations as required. If there are fewer than 4

custodians holding the combination, record and forward as per
Topic 710-2. NOTE: Do NOT dispatch both combinations for the
same vault or safe door on the same day. Dispatch only the
required combinations; ensure others are held at the branch
under multiple custody. If there are fewer than four custodians,
update Register of Combinations and Custodians.

3. Complete independent treasury/sub-treasury/modified treasury

audit. (Topic 710-09)

4. Take-over all keys necessary for control of branch, update and

sign records.

5. Complete and dispatch Authority/Password request (Form 6103)

for new password, ensuring obsolete passwords are deleted
(BMP M5-1-3).

6. Dispatch Security letters as required: Alarm company, Symcor &

Corporate Security. (Verify whether your local Police Department
requires security letter).

7. Review Early Morning Entry and Extortion procedures (Policies &

Procedures: Early Morning Entry Procedures, #710-14, Security
Measures)
Inspect premises, including alarms and check branch fire
equipment (Policies & Procedures: Alarm Systems, #710-18,
Introduction and Policies & Procedures: Fire Safety and Security,
#710-13, Security Measures

8. Verify if booklet has been circulated for annual review for Safety
and Security Matters. Ensure staff is aware of emergency
procedures, i.e. robberies, fire, vault escape and that the vault is
properly equipped.

9. Review branch-filing systems – arrange for destruction of

voucher, if necessary (Retention and Destruction of Records and
Vouchers, #735-06 Storage and Filing #15).

February 2007 Page 4 of 8

 BRANCH TAKE-OVER CHECKLIST
CASH CONTROL

ACTIVITY OBSERVATIONS/ACTION
1. Review procedures for Treasury/Sub-Treasury/Modified Treasury
(710-9) and ABM Cash Custody (Policies & Procedures: InstaBank,
#420-49, Cash Handling and Processing). Assess Branch Cash
Target (Policies & Procedures: Cash Holding Targets and Limits,
#710-15, Cash Holding Target).

2. Issue/concur Authority Limits, i.e., “Your Authority Card” to personnel.

Authorizations must be signed by current Manager (Policy &
Procedures # 710-04 & Policies & Procedures: Cash Holding Targets
and Limits, #710-15, Drawer Cash Holding Limits).

3. Review procedures for Cash Custody (Policies & Procedures:

Custody of Cash, #710-17) and Safeguarding (Policies & Procedures:
Financial Operators - The Day's Cash and/or Vouchers, #710-01,
General Control Measures including CSRs lock-up (Policies &
Procedures: Financial Operators - The Day's Cash and/or Vouchers,
#710-01, Close).

4. Review Currency Dispenser Unit operations, if applicable.

Currency Dispenser Unit (CDU), #420-59

5. Review Form 119 – Quarterly Surprise Audit, Cash Count and

Vouchers (Policies & Procedures: Financial Operators - The Day's
Cash and/or Vouchers, #710-01, Audits and Balances).

6. Ensure spot checks of drawer limits in place and that limits are
adhered to (Policies & Procedures: Cash Holding Targets and Limits,
#710-15, Drawer Cash Holding Limits).

7. Review existing Pathway Connect Shared Ids and determine if the

number of Shared Ids is appropriate to meet customer service needs.

February 2007 Page 5 of 8

 BRANCH TAKE-OVER CHECKLIST
ACCOUNTING

ACTIVITY OBSERVATIONS/ACTION
1. Verify Report 063 – List of Unclaimed Balances, Report 223 –
Dormant Fee Report are held in Multiple Custody. Review and
ensure 2/5-yr. notices Unclaimed Balance Refunds and Report
651- Dormant CTIs is in joint custody. (Topics 420-50, 505-01,
and 210-12).
Policies & Procedures: Dormant / Inactive Accounts, #420-50,
Reports
Policies & Procedures: Centralized Transit Items, #505-01,
Reports
Policies & Procedures: Unclaimed Balances and Items, #210-12,
For Bank Use

2. Review Audits and Balances files Internal Suspense C/As (Refer

to Topic 505-4). Ensure all Suspense C/As are in balance and
that only legitimate short-term items are outstanding.
Policies & Procedures: Internal Suspense Current Accounts,
#505-04, Audits and Balances

3. Review Losses and Overage files, identifying trends and

indication of increased losses due to fraud.

4. Review Business Plan, Monthly Mortgage Portfolio, Quarterly

Reports, Progress Monitor Reports, and Figure of Merit.

5. Assess branch Performance Measurements by reviewing STaR

and Portfolio Performance Monitor Reports. (Performance
Measures)

February 2007 Page 6 of 8

 BRANCH TAKE-OVER CHECKLIST
BANKING SERVICES

ACTIVITY OBSERVATIONS/ACTION
1. Review outstanding problems, letters, and projects including non-
credit litigation. Review Topic 420-19 Customer Service
Request/Problem Resolution and determine if practices are in
place. Review the branch Customer Service Commitment file to
determine the type of customer concerns and follow up activities.
Policies & Procedures: Customer Service Request / Problem
Resolution, #420-19, Branch Procedure

2. Verify service charges, commissions, etc. Review current

Revenue Improvement/Expense Reduction programs. Audits are
no longer mandatory, however, Reports 043, 200, 201 can be
requested if review deemed necessary.

3. Assess Customer Service. Review that the customer

commitment form has been implemented. Walk about the branch
to view service from a customer’s perspective. Review current
product promotions and marketing plans. Consider a “Meet the
Branch Manager” customer appreciation event. (Contact Local
Initiatives at 416-231-3523 to request “My Manager” promotional
material.)

4. Review “Getting the telephone right” manual and your Branch

Profile and ensure your records are updated.

5. Ascertain high profile branch customers: review client lists,

commercial client reports and request staff input. Introduce
yourself to high profile customers.

6. Review recent Customer Service Survey reports and action plans

to address dissatisfiers. Review year to date SQI Branch study
and previous six quarters reports for current SQI/NSSI results
and trends across key measures. Review current action plans to
address gaps.

7. Review BMO Mutual Funds Regulatory Requirements to ensure

proper registrations and requirements are in place. (Refer to
Topic 420-64, 420-74 and your Mutual Fund Compliance
Manual.). Update your new branch location by notifying the MBFI
Registration Department (Phone: 416-867-7680; Fax: 416-867-
7302) on a RISR Change in Information (RCI) form.
Policies & Procedures: BMO Mutual Funds Compliance, #420-74,
BCO - New Registrant Training and Supervision

8. Ensure that mandatory compliance brochures and decals

displayed in the customer area. (Better Banking Guide -
Everyday Banking, Better Banking Guide Business Accounts,
CDIC "Protecting Your Deposits", BMO Deposit Register, Your
Privacy, What You Need to Know About Coercive Tied Selling,
Alternative Solutions for Resolving Disputes Brochures and the
CDIC and No-smoking decals.

February 2007 Page 7 of 8

 BRANCH TAKE-OVER CHECKLIST
LENDING ACTIVITIES

ACTIVITY OBSERVATIONS/ACTION
1. Ensure previous Manager’s CCAPS User ID # has been
amended or deleted (Form 3996BL) and add/amend/delete
other CCAPS user ID’s in the branch, as required (CAP
0302-01).

2. Verify that User ID #s for qualified employees (and self) are in

order (submit changes, as required).

3. Verify that all Discretionary Limit Letters held by qualified

subordinates (and self) are in order (submit changes, as
required).

4. Review Branch outstanding 549 items with Financial Service

Managers.

5. Review all outstanding loan deficiencies.

6. Review pending loans with Financial Service Managers.

7. Review Lender Qualification Training Programs in progress

with Personal Banking Area Manager.

8. Review Loan Portfolio with Personal Banking Area Manager

(i.e., outstanding, clientele, market niche, etc.).

9. Review Non-Compliance Report(s) with Personal Banking

Area Manager (Topic 190-5).

10. Review outstanding overdrafts with Financial Service

Managers. (Report 002, BMP 40-1-18).

11. Review Report 925 PLOC/HOLC Over Limit (Topic 115-70).

12. Review Report 902 for due and overdue PLOC/HOLC

reviews (Topic 115-70).

13. Review Audit procedures of the lending processing to ensure

proper controls in place.

14. Review Report 553 – Accounts Past Due for Review.

February 2007 Page 8 of 8