The NCUA released an addendum to its Other Supervisory Committee Audit, Minimum Procedures Guide Thursday, replacing certain procedures for credit unions that have implemented the current expected credit loss (CECL) standard. CECL became effective for most credit unions Jan. 1, 2023.
The addendum replaces procedures for CECL-implementing credit unions based on recent changes in accounting standards from CECL for the allowance on credit losses for investments, loans and leases, and off-balance sheet credit exposures.
NCUA notes the addendum should be used in conjunction with the Other Supervisory Committee Audit, Minimum Procedures Guide.
These documents together provide the minimum procedures to perform when a supervisory committee chooses the “other supervisory committee audit option” for completing its annual audit requirement
NCUA’s CECL resources page also contains additional information.