NCUA Supervisory Committee audit rule changes proposed

The National Credit Union Administration Board held its second open meeting of 2019 at the agency’s headquarters yesterday and unanimously approved one item: a proposed rule to clarify and provide additional flexibility in the agency’s regulation covering required credit union supervisory committee audits.

Supervisory Committee audit changes will simplify compliance

The NCUA Board approved a proposed rule amending the supervisory committee audit regulation for federally insured credit unions. Comments on the rule must be received within 60 days of publication in the Federal Register.

The rule makes two major changes:

• Replaces the current optional audit procedure described in the Supervisory Committee Guide with a targeted list of minimum procedures contained in a new Appendix A.
• Eliminates the current 120-day time limit for receiving a third-party audit report and gives credit unions the ability to negotiate a delivery date.

The proposed rule implements recommendations contained in the agency’s Regulatory Reform Task Force’s reform agenda.