Supervisory Committe Duties And Responsibilities

Question 1

In FCU, who appoints the supervisory committee, and determines the number of committee members and their term and service

Answer 1

In an FCU, the Board of Directors, appoints the supervisory committee, and determines the number of members and their term of service

Question 2

There are two requirements that must be meet to serve on the supervisory committee. One is that the person must be bondable? What is the other requirement?

Answer 2

To be a supervisory committee member, the person must be a member of the credit union and be bondable

Question 3

What are the two basic responsibilities of the supervisory committee?

Answer 3

The two basic responsibilities, for the supervisory committee are to ensure that the financial statements accurately, and fairly present the financial condition of the credit union, and to ensure that management practices and policy safeguard members assets

Question 4

The supervisory committee is responsible for following up with management to assure that problems identified in the audit report are correct, true or false

Answer 4

True

Question 5

List four of the responsibilities of the supervisory committee

Answer 5

Conduct an annual audit, submit audit report to board and summary to members at annual meetings, ensure credit union properly completes and files call reports verify internal controls meet with the examiner, verified member savings and loan balances at least once every two years research formal member complaints, suspend directors, officers, or credit committee members for cause, call special membership, meetings for cause, request board approval for administrative and auditing expenses. Maintain committee records

Question 6

How often does the federal credit union act require the supervisory committee to verify the passbooks and accounts of credit union members?

Answer 6

The federal credit union act states that the supervisory committee, shall cause the , passbooks and accounts of the members to be verified with the records of the treasurer from time to time, and not less frequently than once every two years

Question 7

The three methods NCUA allows for verifying accounts, are listed below, give a brief description of each method

Control verification
Statistical method
Non-statistical method

Answer 7

Controlled verification-includes 100% of members share and loan accounts

Statistical method -includes a sampling of accounts, that either provides a random sampling, which is representative of the population, from which it was selected for sufficient accounts in both number and scope on which to base conclusions concerning managements financial reporting objectives

Non statistical method -a sampling that can only be done by an independent certified public accountant or CPA choosing sampling methods consistent with generally accepted auditing standards GAAS with documentation, recorded and available to NCUA upon request

Question 8

NCUA’s rules and regulations require the supervisory committee to retain records of each verification of members account for six months yes or no

Answer 8

No or false