Importance Of Financial Examiners In The US Economy

Money Makes the Country Operate.
Money Makes the Country Operate. | Source

Accountability

In an age of government bailouts and new Ponzi schemes coast to coast in the early 21st Century, the role of Financial Examiner is an important position in an accountability mission. These professionals ensure compliance with laws and regulations that involve banks and other financial and securities institutions, finance accountability, and real estate transactions. This usually encompasses auditing and reviewing of immense systems of company records, including private companies, non-profit organizations, and government agencies.

Since the 1980s, a number of large church organizations, also known as mega-churches or regional churches, have come under the scrutiny of financial examiners amid claims of fraud and malfeasance, especially television ministries. One of the most famous of these was the Bob Baker Ministries organization, in which pet dogs enjoyed an air conditioned dog house. A different outcome came about in Joyce Meyer Ministries when she declared that her house was too large; and she downsized. A surprising result occurred when Pastor Kenneth Hagin, now deceased, opened his books to an examiner who found that Pastor and Mrs. Hagin took no salary from the church at all; their income came form book royalties. Other large churches are viewed with a gimlet eye - by this I mean those that refuse to file the required yearly non-profit reports 990 with the IRS.

Financial schemes of such as Bernie Madoff hurt a lot of people and there have been numeorus other Ponzi schemes in the US States and many cities, often involving real estate.

Financial Examiners - Important to Government and Business

This is "Newspaper Row" in Washington, D.C., from "Harper's New Monthly Magazine" in January 1874.
This is "Newspaper Row" in Washington, D.C., from "Harper's New Monthly Magazine" in January 1874.

Increasing population size in America that results in increasing numbers of new businesses and increasing sizes of existing businesses will call for additional number of financial examiners through at least 2020 and probably beyond. All companies, by industry standard, should have an internal audit every year, and many need an outside audit (Performed by professionals not on the company payroll). Non-profits must undergo outside audits in order to qualify for additional grant funds; etc.

As a volunteer effort, an acquaintance accepted a board position with a small non-profit entity that was 12 years old. In the course of applying for youth wellness grants, she was informed by a CPA she contracted to audit the agency that the company had never undergone either an outside or an inside audit and records were sketchy. Since audits for a few years were required by the grant proposal, no funding could be awarded to the company. A few years' time was needed before the non-profit could apply for grants again.

In another local case, a medical practice was highlighted in a Medicare situation. Auditors also found that in 15 year's business, the company had never paid its Workers' Compensation or Unemployment Insurance premiums, and had withheld Social Security contributions from some employees' paychecks, but not delivered those funds to the IRS/Social Security Administration. Legal action was forthcoming. Two employees are still missing 5 years' worth of SS contributions from their retirement accounts.

Charles Ponzi, infamous for US Federal mail fraud and lacerny at the state level.
Charles Ponzi, infamous for US Federal mail fraud and lacerny at the state level.

Job Titles

Financial processes in business are vital and financial examiners will likely be in high demand for some time. With new industry sectors emerging, such as privatized space flight (commerical passenger flights and space mining for example), business will be pursued off planet, with new and greater resulting possibilities for financial error and mishap.

Financial Examiners are classified in a number of Job Titles:

  • Auditors and Senior Auditors - Often CPAs, these professionals handle many duties similar to those of financial examiners.
  • Bank Examiner
  • Bank Secrecy Act-Anti-Money Laundering Officer
  • Compliance Specialist or Officer or Analyst
  • Compliance Vice President
  • Compliance Director or Manager
  • Community Reinvestment Act Officer
  • Finance Director
  • Fraud Examiner
  • Internal Auditor

Education Required for Financial Examiners

Candidates need to have an earned Bachelor's Degree with a specific core in accounting, finance, and/or business. Some financial examiners have an MBA and/or CPA certification at upper levels of pay and responsibility.

MATHEMATICS

A financial examiner is on par with a scientist or attorney. 21st Century compliance requires more frequently then before, a Forensics and CSI type of professional. Arithmetic, accounting, algebra/business mathematics, statistics, geometry, calculus -- All are practical to the work and aide in developing more extensive Critical Thinking, Comprehension, Deduction, Induction, and Complex Problem Solving skills. Experience synergizes all these into a remarkable and marketable skill set.

Some of the better episodes of TV's Numb3rs, CSI, and NCIS illustrate how vital the field of mathematics is to financial and criminal examination. Financial examiners that understand the most extensive mathematics, are tech savvy, and can speak and write well will enjoy the largest salaries and the greatest room for advancement.

COMPUTER SCIENCE

Understanding circuit boards, CPUs, data chips, electronic equipment, basic and peripheral hardware, and software applications/programming are all required in financial examining and forensic accounting. The examiner must be able to use Miocrosoft 2003/2007 Word, Excel, Access, and PowerPoint; as well as several types of financial and other software programs. The examiner may also need to write software.

ADVANCED ENGLISH

This professional must have a command of the structure of English, including advanced vocabulary, specialized financial terminology, spelling, document composition, and grammar at the college and graduate school level.

ECONOMICS

Business and accounting principles and practices, financial markets, banking, financial analysis, other.

LAW AND GOVERNMENT

Understranding of relevant law, legal codes, court processes and legal precedents, Federal and State Government regulations, executive orders, agency rules and bylaws, other.

ADMINISTRATION

Business management principles. Strategic and Vision Planning, resource allocation, human resources, leadership, production methods, and coordination of human and material assets; clerical skills in word processing, records management, designing forms, other.

Top 10 Cities for Financial Examiners

From 2010 through 2015, the following large cities and metro areas afforded the largest number of related job listings.

Largest Numbers Of Job Listings In Financial Examination:

  1. Washington DC - Many government positions are listed in want ads, along with many corporate jobs.
  2. New York City - Manhattan especially.
  3. Chicago
  4. San Antonio: Dropped farther down the list in the 2010s.
  5. Atlanta GA
  6. Charlotte NC
  7. McLean VA
  8. Hoffman Estates, Illinois: Dropped off the list in the 2010s.
  9. Boston MA
  10. Dallas and Houston TX

Cities that moved up the list include San Francisco and Los Angeles, along with Phoenix Arizona.

Source

Typical Duties

  • Investigate financial and inventory transactions of legal entities such as corporations, partnerships, sole proprietorships, non-profits, government agencies, and others in order to ensure law and regulation enforcement.
  • Extensively use calculators, adding machines, Desktop and Laptop computers: PC and MAC: especially Word Processing and Spreadsheets.
  • Understand, use and sometimes develop several types of Compliance, Financial Analysis, and Project Management software
  • Analyze new and revised relevant laws, regulations, policies, and procedures.
    Supervise and train subordinates.
  • Recommend actions to ensure compliance with laws and regulations and/or to protect entity solvency. Establish related action plans and follow-up procedures and schedules.
  • Examine the legally required Minutes of the meetings of directors, stockholders, and committees to investigate the operations of management at all levels.
  • Prepare and present professional reports and exhibits and recommend solutions for compliance.
  • Examine ledgers, financial statements, balance sheets, operating income/expense accounts, loan records, inventories, etc. in determining actual assets and liabilities.
  • Review reports of internal and external auditors for improvement and make recommendations.

Source

Sample Job Description - Salary $100,000/year or More

.

Commissioned Bank Examiner - Federal Reserve Bank

  • The Federal Reserve Bank seeks condidates for positions that require regular mandatory travel among several US States. This will include overnight stays up to 60% of work time.
  • The Federal Reserve offers an ongoing Training and Career Development program for Continuous Improvement and advancement.

Further

  • Candidate will act as examiner-in -charge for planning, organizing, and controlling examination activities and supervising staff.
  • Candidate will direct examination and inspection of all phases of financial institution performance. This can include complex issues and extensive investigations.
  • Candidate will complete major portions of each examination. This includes risk management, asset quality, capital adequacy, earnings performance, securities, foreign exchange & interest rate risk management, liquidity, operations & internal controls, MIS systems, audit coverage, fiduciary trust operations, and other.
  • Candidate will prepare comprehensive examination reports with substantiating evidence in a timely manner and conduct discussion with senior management, controlling boards, etc.

Education and Others Required

  • Bachelor's Degree with concentration in accounting, finance or business desirable.
  • Examiner Commission issued by the Federal Reserve Bank.
  • 5-8 years of bank examination experience.
  • PC skills will include Microsoft Office Suite 2007, all features and applications.
  • Valid driver's license required.
  • Must be US Citizen, US National, or Green Card holder with intent to become US Citizen.

 

© 2010 Patty Inglish

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Comments 4 comments

brandonhart100 profile image

brandonhart100 6 years ago from Inside Your Computer

very interesting hub - thank you


Hello, hello, profile image

Hello, hello, 6 years ago from London, UK

You give so much help to people. It is fantastic.


LillyGrillzit profile image

LillyGrillzit 5 years ago from The River Valley, Arkansas

Thank you for publishing this very informative Hub. This is an interesting career for those who love numbers, and like digging for information. Very nice. Shared.


anna.smith profile image

anna.smith 5 years ago from Germany

Very Useful Hub Thnx.

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