Supervisory Committee work plans and audits

Get the Most From Your Supervisory Committee

by May 27, 2022Accounting for Credit Unions

An active Supervisory Committee provides for a healthy credit union by adhering to best practices and assuring the Credit Union has strong internal controls.

Set Your Supervisory Committee Up for Success

Your credit union Supervisory Committee procedures are performed based on the requirements outlined by the NCUA. The list below is just a few of the duties for Supervisory Committees:

      • Make, or cause to be made, thorough and complete annual audits in accordance with regulatory requirements.
      • Verify corporate and accounting records are prepared in an accurate and timely manner.
      • Confirm appropriate internal controls are developed, implemented, and consistently followed in accordance with established credit union policies and procedures.
      • Determine compliance with applicable federal, state, and local laws and regulations as they apply to credit union operations.
      • Submit reports on the committee’s activities for the Board and membership, and act as the primary liaison with clerical/auditing staff hired to assist the committee.
      • Submit reports of audit results to the Board of Directors and the membership and ensure appropriate and timely resolution of any exception noted in the report.
      • Monitor the activities of the Board of Directors through attendance at meetings and/or regular review of meeting minutes.

 

Steps to Maximizing Your Board’s Time

Of the many responsibilities of the Supervisory Committee, one of the primary functions is to direct internal audits to examine the organization’s financial records and to determine their accuracy.

It is critical that your credit union Supervisory Committee ensures the integrity of the financial statements and presents a fair report of the credit union’s financial condition.

With thorough training and ongoing guidance, you can prepare your Supervisory Committee for success.

 

Volunteering Isn’t Easy

We know that volunteering in these positions isn’t easy. It requires a lot of time and commitment. To guide your volunteers to success, our Supervisory Committee work plans establish regular and consistent meeting schedules, establish appropriate practices and procedures, and support communication among the independent accountants, management, and the board.

Our training has developed over years of experience helping credit union Supervisory Committees across the South. Our work plans are:

      • well documented,
      • provide structure with agendas,
      • and provide accountability through action items and follow up.

This structured approach helps your Committee to stay on task and meet the outlined requirements.  This added assistance is included in our Internal Audit procedures.

Set Your Supervisory Committee Up for Success

At Griffin & Furman we enjoy developing a respectful, cooperative relationship with our credit union clients as well as external contacts, such as those NCUA examiners we frequently work with. A respectful and cooperative spirit with both the internal and external stakeholders is the foundation of trust and professionalism.

If your credit union Supervisory Committee is facing the ever-growing list of guidelines and requirements, please call us to discuss the specific needs of your financial institution.

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