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State of Washington Classified Job Specification

FINANCIAL EXAMINER 2

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FINANCIAL EXAMINER 2
161F
Category: Financial Services

Class Series Concept

See Financial Examiner 1

Definition

Positions perform professional work conducting financial analysis and/or examinations of regulated entities.  This is the fully qualified level performing intermediate analysis and/or examinations of regulated entities.

Distinguishing Characteristics

Intermediate assignments are less complex but are performed under supervision with some direction and assistance.  Positions may plan, conduct, and lead field and/or in-office financial examinations that are less complex in nature.   For clarification, the term “less complex” generally means duties are covered by existing written procedures or manuals, mistakes have a low to medium cost to the agency or the public, the particular work or regulated entities have a lower degree of risk, or a small to medium asset base.  Incumbents are familiar with the operation of regulated entities, recognize problems and assist in developing solutions.

Typical Work

Interprets and applies applicable laws, rules, and standards; determines compliance with applicable state and federal laws and regulatory policy and industry standards; analyzes for compliance with mortgage industry regulations; registers debenture companies in compliance with state and federal statutes; conducts off-site reviews, disciplinary reviews and background checks; 

Conducts risk-focused examinations; assesses compliance with marketing, disclosure and accounting issues related to the sale of non-deposit investment products, risks associated with merchant banking activities, or real estate financing and contract collections; analyzes sound lending criteria (for commercial, consumer, and real estate loans and assesses adequacy of loan documentation; interprets applicable state and federal laws, rules, and standards; takes prompt  

correction actions which results from not meeting capital, surplus, or net worth requirements, capital analysis and mandatory regulatory action, binding net worth analysis; 

Prepares reports of examinations, reviews of applications, or investigations outlining deficiencies, concerns, and recommends solutions; meets with affected parties concerning legal and/or procedural problems; conducts interviews and interrogations and documents in a memorandum; works with other regulators in enforcement, examination, coordinated review of applications and joint projects with prosecutors and law enforcement on enforcement matters; 

Performs statistical sampling; conducts forensic accounting review or analysis of complex financial transactions for fraudulent transactions or practices for violations; uses specialized software; analyzes computer systems for evidence of crime using computer forensics; 

Assesses a regulated entity’s quantity and trend of earnings and other factors that may affect the sustainability of earnings or ability to pay obligations; analyzes complex financial accounting data and reports; interprets financial ratio trends; assesses the current level and prospective sources of liquidity compared to funding needs; analyzes entity’s exposure to interest rate risk; evaluates adequacy of an institution’s capital compared to the risk structure or issuer’s finance plan; reconstructs and analyzes various types of financial records; analyzes a regulated entity’s or account’s objectives including safety and adequate control of risk; appraises investments and collateral; reviews hedging activities; evaluates the impact of a regulated entity’s structure;  

Examines, analyzes, and verifies specific groups of regulated accounts including bonds and stocks, mortgage loans, real estate, policy loans, premium notes, collateral loans, policy reserves, and capital stock; writes sections of examination report dealing with these accounts; 

Reviews and tests regulated entity’s policies, procedures, and practices related to the United States Patriot Act, Bank Secrecy Act, and Anti-Money Laundering Act; 

Examines the adequacy of regulated entities’ internal routines and controls; reviews scope and adequacy of internal and external audits; determines whether corrective action has been taken resulting from prior regulatory examinations and internal or external audit recommendations; 

Works with Financial Examiners, Certified Public Accountants, Certified Financial Examiners, Accredited Financial Examiners, and others; 

Analyzes/examines less complex regulated entities and determines compliance with applicable laws, regulations, and standards including, but not limited to, financial compliance, investment compliance, audit failure, antitrust, security sale compliance, or “Ponzi” schemes on a state, national, and international level.  Reads and reviews updated applicable laws, regulations, and standards using both text and computer-based sources to ensure analyses and examinations are appropriately conducted.  Interprets and applies applicable laws, rules, and standards; 

Assesses analysis/examination risk, materiality, and other matters; assesses inherent risk that the susceptibility of an assertion (there are five – existence or occurrence, completeness, valuation or allocation, rights and obligations, and presentation and disclosures) contains a material misstatement that can be caused by three conditions – missing entry, erroneous entry, and the presence of entry that does not belong in the account; assesses control risk that a material misstatement will not be prevented or detected on a timely basis by the regulated entity’s internal control; assesses risk management i.e., the ability of the regulated entity to identify and manage risk; assesses capital requirements i.e., the regulated entity’s ability to determine its capital requirements to cover potential claims; assesses materiality; assesses and reviews prior analysis/examination report, file, stated management and accounting personnel qualifications, bios, priority rating, and current filing; assesses acceptable low, moderate, or high detection risk; incorporates risk assessment into the analysis/examination procedures; 

Develops an overall analysis or specific accounts(s) examination plan and designs specific procedures and tests to be accomplished in order to achieve regulatory standards analysis/examination objectives and deadlines; determines the nature, scope, timing, and extent of financial analysis/examination procedures; 

Determines, obtains/downloads, prepares and maintains necessary filings, documents, worksheets, and information from various database sources that are required to conduct the financial analysis/examination; creates, places, and maintains evidence documents about regulated entity into the files; 

Analyzes/examines less complex regulated entities’ filings, accounts, and documents containing financial information, correspondences, and articles of incorporation by laws, board minutes, and committee minutes, to assess and determine management effectiveness and regulated entity’s financial condition and compliance; 

Logs, compiles, and extracts data to create documents required to complete financial analysis/examinations; 

Reads, analyzes, and examines filings, documents, and other information to assess financial condition, statement assertions, and compliance with laws, regulations, and standards; prepares and completes checklists and/or additional analysis/examination procedures/programs; evaluates analysis/examination procedures, programs, and findings;  

Writes analysis/examination reports for assigned regulated entities, including updating risk assessment, profile summary, and supervisory plan; documents information to support final determination and any resulting recommended action, including enforcement;  

Meets with affected parties concerning legal and/or procedural problems; 

Conducts interview and interrogations; documents in memorandum; 

Works with other regulators in enforcement, examination, analysis, review of application and joint projects with prosecutors and law enforcement on law enforcement matters; 

Identifies material adverse findings; follows established procedures to communicate the finding including for most regulated entities not meeting capital, surplus, net worth,  RBC requirements etc.; 

Follows established enforcement referral procedures for the transfer of evidence to relevant enforcement personnel for illegal or noncompliant activities; 

Reports to lead and supervisor on analysis/examination status, financial condition and compliance of regulated entity and findings for recommended changes or corrections; 

Prepares special analyses/examinations of regulated entities admitted to or applying for admission to do business in Washington State; registers regulated entities in compliance with applicable, laws, regulations, and standards; 

Evaluates compliance with various consumer protection and compliance regulations that may include Accuracy of Advertising and Notice of Insured Equal Credit Opportunity Act – regulation B, Fair Housing Act, Electronic Funds Transfer Act, Truth in Lending –regulation Z, etc. 

Performs other work as required.

Knowledge and Abilities

Knowledge of:  principles, practices, techniques, and methods of accounting and auditing (GAAP, US, GAAS, statutory accounting principles, regulatory examination procedures, and/or regulatory analysis procedures); operations, transactions, reporting practices, and internal controls of regulated entities; applicable state and federal statutes and rules including federal financial crimes and consumer protection laws; legal opinions and court decisions; statistical sampling procedures, state and department policies and procedures.

 

Ability to:  effectively interact and communicate with individuals and internal/external organizations; deal tactfully but firmly with company officials; examine and analyze records, accounts, transactions, financial statements, ratios, and reports; learn philosophy, theory, and techniques of regulations; understand and apply regulatory laws, regulations, policies, and standards to specific situations in regulated entity’s examinations and/or analysis; identify critical features of a regulated entity’s contracts, agreements, etc.; recognize regulated entity’s problems and assist in developing solutions; prepare clear and concise findings, summaries, and reports; complete assignments on a timely basis.

Legal Requirement(s)

There may be instances where individual positions must have additional licenses or certification. It is the employer’s responsibility to ensure the appropriate licenses/certifications are obtained for each position.

Desirable Qualifications

A Bachelor’s degree with major study in finance, business administration, economics, or accounting including at least 12 semester or 20 quarter hours of accounting, finance, or economics.  Some examiner positions may require 36 quarter hours or 24 semester hours of accounting

 ANDtwo years of professional experience in one of the following:
  • accounting or auditing;
  • analyzing or examining regulated entities;
  • working for a regulated entity in the areas of lending, operations, analysis of loan or securities portfolios, auditing, reinsurance investments, information system reviews, or any combination of these.

A Master’s degree in accounting, finance, economics, or business administration with 24 semester or 36 quarter hours in accounting may substitute for one year of the required experience for examiner positions.

OR

A Master’s degree in a qualifying field of graduation from a specialized banking school gained through an accredited college or university (i.e., Pacific Coast Banking School or equivalent) as an Accredited Financial Examiner or a Certified Financial Examiner from the Society of Financial Examiners or Washington State qualification as a Certified Public Accountant may substitute for one year of the required experience in financial institutions, financial service companies or issuers.  

NOTE:  Incumbents may be required to travel for extended periods. 

Class Specification History

New class, consolidates 13300 Financial Examiner 1, 13305 Financial Examiner 2, 13920 Insurance Examiner 2; adopted May 10, 2007, effective July 1, 2007
Salary adjustment adopted 6/30/2015, effective 7/1/2015.

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