WORKING ON WORK PLANS. Supervisory Committee Work Plans “The better the planning, the better the result!” Work plans provide an organized, systematic.

WORKING ON WORK PLANS

Supervisory Committee Work Plans

“The better the planning, the better the result!”

• Work plans provide an organized, systematic process

• Enhanced Documentation for Regulator Oversight


Questions:

• How many have a work plan?

• How many utilize internal auditors or other employees to help fulfill audits?


Plan Considerations:

• How much volunteer time does the Committee have?

• Is there an Internal auditor

• Utilize employees

– Process owners?

• What are risks facing the Credit Union?

• Results of examinations and audits• What procedures has the Committee performed in the

past?

• Credit – nonpayment – ALLL – TDRs -Delinquency

• Compliance – (noncompliance with laws and regulations)

• Liquidity – (insufficient cash resources)

• Interest rates – (loss due to changes in interest rates)

• Strategic – (poor business decisions)

• Transaction – (transactions are not processed completely or accurately)

• Reputation – (loss of credibility or standing)

Risk Categories for Credit Unions

2013 NCUA Supervisory Focus – 13-CU-01

• Operational Risk– Technology (controls over adopting new technology – remote

deposit, mobile banking, social media, on-line banking)– Internal Controls

• Balance Sheet Management– Interest Rate and Liquidity Risk (contingency funding)– Concentration Risk– Less Established Products (expertise and risk management)

• NCUA – Clarity– Member Business Lending– Credit Ratings (assessment of securities and money market)– Troubled Debt Restructures

Typical Supervisory Committee Procedures

• New member eligibility verification• Verify new loans with members

Thank you letters• Employee account review• Review dormant accounts• Closed accounts


• Surprise cash counts – teller controls• Annual testing of market values of investments to an

independent source – Part 703 of Rules and Regulations

• Review of bank account reconciliations• Review of Risk Assessments – Entity Level, Security

Program, IT

• Loan reviews System reports Utilize internal employees for increased knowledge

• Review charged-off loans

• Review ALLL – perform validation

• Oversee Internal Audit and the internal audit plan

• Engage and monitor results of external auditors

• Follow up on findings from audits/exams



• Expense account review

• Review file maintenance reports

• Review new products

• Review financial results/ financial statements

• Talk with auditor on critical areas you would like

addressed

Considerations for Work Plans

• Consider utilizing management to perform

procedures with Committee oversight

Public institutions utilize process owners

Consider whether they have influence over the

control

• Spend time with management personnel to

understand processes before you test

Very important to understand it first


• Document results of the work performed

• Evaluate the quality of testing from the number of items

tested

• Look for “systematic” problems when evaluating errors

• Maintain minutes and report to the Board


• We have included basic sample work plans in your manual on the usb drive

Includes sample testing forms for numerous areas


• We have included basic sample work plans in your manual on the usb drive

Includes sample testing forms for numerous areas

Questions

Scott Ewing, Credit Union ConsultantMoss Adams [email protected]

WORKING ON WORK PLANS. Supervisory Committee Work Plans “The better the planning, the better the result!” Work plans provide an organized, systematic.

Documents