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The Duties of an Active Supervisory Committee
Thursday, June 2, 2016 6:25 AM

Amanda Dawson

When it comes to filling the volunteer positions of credit union supervisory committee members, we know how difficult it can be. It’s even harder to find volunteers who have accounting, financial, and credit union experience or at least have enough knowledge and understanding to complete all their required duties. 

Here are just some of the duties supervisory committee members are in charge of:

  • Overseeing an annual financial audit.
  • Quarterly reviews; cash counts, loan review, bank reconciliations review, etc.
  • Compliance audits; Bank Secrecy Act (BSA), ACH, SAFE Act, etc.
  • Bi-annual Member Verification.

A full list of requirements can be found in the Supervisory Committee Guide on NCUA’s website.

Many audit findings could be prevented by having an active supervisory committee or, at a minimum, completing quarterly internal reviews. A typical internal audit in a smaller credit union can take as little as one eight-hour day. If your credit union has three supervisory committee members and each of them completes an internal review, you would only have one remaining quarter review to complete.

Sounds simple right? There's always another option by having a third party complete your internal audits. Of course, internal reviews are one of the many services Credit Union Resources, Inc. offers to our clients.

Another great tool provided in the Supervisory Committee Guide is a sample Supervisory Committee Work Plan, Appendix 4A. It breaks down internal reviews by each month of the year. This plan would need to be customized for your credit union, but it's a great way to get started. Monthly visits are not required. However, this plan would help space internal reviews throughout the year.

Attending monthly board meetings is noted every month in this plan. Again this is not required, but it is a great way to know what is going on in the credit union and to stay involved.

The best way to have an active supervisory committee is to keep the volunteers involved and trained. Good luck!

About Credit Union Resources
Credit Union Resources is a wholly owned subsidiary of Cornerstone Credit Union League. Whether you're looking for an effective advertising campaign, sales materials, new lending products, technology solutions, auditing services, a hands-on compliance partner, strategic planning assistance, a shared-branching presence, or staffing and operational support, Credit Union Resources has was you need at a price you can afford. Your business, our focus, expert solutions. For more information, please visit curesources.coop.