Field Examiner Seminar Outline

1. Introduction

• Rationale for an ABL Loan
• Role of the Examiner

2. Planning the examination

Recurring

• Read the Credit File
• Discussion with Account Executive
• Read Examination File.
• Interaction with Operations/Verifications Person
• Logistics

Surveys

• Read Proposal Letter
• Industry Research
• Logistics

3. Examination process (overview)

• Tour of the Facility
• Review of the Accounting Records
• Networking with your office
• Exit Interview

4. Examining collateral

Order of Review

Accounts Receivable

• Record Keeping / SystemsAging Analysis
• How Receivables are Created
• Credit Extension & Collection Process
• Spread & Turnover Analysis
• Concentration / Analysis of Customer Base
• Analysis of Delinquent Accounts
• Sales & Dilutive Elements
• Tests of Authenticity
• Analysis of Ineligible A/R
• Reconciliations

Inventory

• Pre-Audit considerations
• Tour of PremisesInventory System
• Classification of Inventory
• Reporting
• Examination Procedures
• Financial Statement Presentation – LIFO vs. FIFO
• Tests of authenticity
• Calculation of Inventory Advance Rates

Fixed Assets

• Lending Methodology
• Variables Affecting Asset Values
• Types of Appraisals
• How to Read An Appraisal
• Field Examiners’ Role

5. The cash audit

• Cash receipts
• Disbursements
• Bank Reconciliations

6. Assets other than cash and collateral

7. Liabilities

• Accounts Payable
• Notes Payable
• Loans Payable
• Other Liabilities / Contingencies
• Types of Taxes

8. Off balance sheet items

9. Availability forecasting

10. Financial statement review

11. Case studies