The Supervisory Committee is the cornerstone of internal controls, so you need to understand its foundational functions. This session covers the regulations that establish the Supervisory Committee and define its duties and responsibilities. In addition, you’ll get recommendations on what the Supervisory Committee should focus on and pay the most attention to.

The most important responsibility of the Supervisory Committee is to control and actively manage the outside audit function. Building a relationship with the outside auditor is a key part of this role. This goes beyond hiring the audit firm and waiting for the report.

Working with an outside auditor includes establishing standards for selecting the firm, preparing the RFP, meeting with the auditor, interviewing the auditor at the end of the audit, and evaluating the outside audit firm.

Can you identify whether your credit union is performing well or poorly? Can you determine whether its financial condition is declining or improving? Or, like many volunteers, do you have to wait until the outside auditor or management provides that information?

This session will help you understand key ratios and what they indicate. When you complete this session, you will be better equipped to monitor and understand the credit union’s financial condition.

This session covers a variety of timely topics on how the Supervisory Committee can become as effective as possible. Topics include communication with regulators, understanding regulatory reports, and the risks regulators monitor. It also explores ways for the Supervisory Committee to evaluate and understand the “tone at the top,” the ethical environment established by the board and senior management, and how to communicate any concerns. The session also covers the basics of the required verification of members’ accounts.

Internal controls remain one of the important concepts in the world of the Supervisory Committee member. However, it is a term that is often heard but not always fully appreciated. The NCUA states that “internal control refers to the process, established by the credit union's board of directors, officers, and employees, designed to provide reasonable assurance of reliable financial reporting and safeguarding of assets against unauthorized acquisition, use, or disposition.”

This session goes beyond the technical definition and offers a practical review of the role internal controls play at your credit union. It also provides real-world examples and builds insight into your oversight role of this critical requirement.

Does your credit union have an internal audit department? This session covers the specific responsibilities the Supervisory Committee has in overseeing the internal audit function. Don’t have an internal audit department? It also includes the key elements that must be included in your annual audit plan, as well as how to perform the risk assessment needed to determine priorities for the current year. Required regulatory audits, as well as other functions of the internal audit function, are also included.

Do you think like a fraudster? Understanding the primary ways fraud can occur in your credit union is crucial to ensuring that internal controls are functioning as intended and are adequate to identify fraud if it is occurring. We will discuss why people commit fraud and challenge you to think like a fraudster. By the end, you will understand your role in the detection and prevention of fraud in your credit union.

Credit unions are offering many online products and services while also relying on third-party providers. Cybersecurity continues to be a significant operational, regulatory, member service, and examination issue. What is cybersecurity, and why should the Supervisory Committee be concerned?

This session covers common ways credit unions are attacked, as well as the various audits every credit union should obtain and how to protect against those attacks. You'll leave with a clearer understanding of the Supervisory Committee’s role in cybersecurity.