You Need a Supervisory Committee Annual Review, but What Does That Entail?

Every year, credit unions must undergo a Supervisory Committee Annual Review, often referred to as a SCAR. Perhaps your credit union is due for one. At this point, you must decide which kind of review your credit union needs. What will it be? A Full-Scope Review or what’s known as “Minimum Procedures.”

First, Section 715, Appendix A, of the NCUA Rules and Regulations sets out the minimum requirements for an acceptable Supervisory Committee Annual Review. Note, that’s a change from the minimum procedures that used to be detailed in the NCUA Supervisory Committee Guide.

The engagement letter provided for your acceptance by the firm completing the review should include the steps to be performed during field work and should indicate if these steps will meet the minimum steps set out in Section 715, Appendix A, as well as whether any additional steps will be performed.

To state the obvious, the Minimum Procedures Review costs less, but of course does not provide as comprehensive an assessment as the Full-Scope Review. If your credit union opts for a Minimum Procedures engagement, we recommend strongly that you alternate between having a Full-Scope Review performed at least once every three years—preferably, every other year.

Now let’s take a more detailed look at what you can expect from each review.

At Cornerstone Resources, our Full-Scope Reviews include additional procedures not required by Section 715, Appendix A. These additions are offered to benefit our clients and are based on our decades of experience working with credit unions. They encompass what we feel is most important to look at when determining the accuracy of financial statements.

Ready for your next Supervisory Committee Annual Review? We would be pleased if you considered Cornerstone Resources. After all, we’re here solely for you. You know and trust us. Our competitive fees are recycled into the credit union system and our expertise sets us apart from the rest. If you’d like to learn more about SCARs or the work we do, don’t hesitate to reach out.

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If you're an existing client, email Deana Brown or call 469-385-6464. You can also request service here.