Our Accounting and Auditing Team Delivers on the Promise of providing you with objective and reliable analyses to make sound credit decisions.
We understand the unique credit challenges that lenders face. Our Bank Collateral Field Exam Group is made up of CPA-credentialed professional staff trained in performing collateral field exams with an average of 10+ years of experience.
Our services have been performed on companies with outstanding loan balances from a few hundred thousand to over $10 million.
Let us provide you with objective and reliable analyses and supportive documentation on which to make sound credit decisions.
Our service offerings include:
- Accounts receivable analyses and related dilutive items
- Inventory valuation and liquidity
- Other collateral valuation
- Cash activity and transactions
- Accounts payable detail
- Review of internal accounting systems
- Other assets and liabilities
- Tax requirements and proper filings
- Financial reporting capabilities
- Pending litigation
- Balance sheet analyses
- Equipment verification
Our Services Include:
- Pre-loan surveys, rotational inspections and specialized forensic accounting
- Assessment of collateral exposure and advance rates
- Evaluation of accounting procedures and financial reporting capabilities
- Multi-location field examination capabilities throughout the United States
Types of Field Examinations:
Survey Exams – Skoda Minotti performs comprehensive independent exams on prospective borrowers or targeted investments in many different industries. Our examiners assess the prospect’s collateral, analyze trends, review systems and operations, review financial reporting, as well as several other targeted areas that assist our clients in making sound credit or investment decisions. Our goal is to provide our clients with a report that is tailored to their needs and relevant to each individual deal.
Recurring Exams – Skoda Minotti can accommodate our clients with quarterly, semi-annual, or annual exams. Once on site, our examiners will perform the necessary testing to ensure the client is fully aware of their customer’s collateral position and financial well-being. The result is a thorough report that is provided in a timely manner.
Some examples of our field examination procedures include:
- Accounts receivable account verification, analyses of sales dilution, concentrations, cross-agings, contra accounts, agings, and identify ineligible items
- Review credit and collection procedures
- Inventory test counts, cost testing, analyses of mix, turnover, obsolescence and identity of ineligible items and gross margins
- Cash review of account reconciliations, lockbox procedures and proofs of cash
- Insurance review of coverage to ensure bank is loss payee
- Review trade payable agings, loans to officers or employees
- Verify that payroll and other trust fund taxes are current and inquire as to status of state, local and federal returns
- Financial books and records reconcile ledgers to financial statements, review general ledger for unusual items, complete ratio analysis
- Review the Borrowing Base Certificate prepared by the borrower and prepare an independent calculation of collateral availability
Our CPAs provide expert witness testimony. At lender’s and attorney’s request, our workpapers have been used in court to assist in protecting the creditor’s collateral.