Submitted by sevans on Fri, 01/02/2015 - 4:35pm
Examiners’ Objectives
- Review income and expense trends
- Analyze budget projections and practices
- Evaluate due diligence by management of services and products affecting the credit union’s profitability (e.g., cost-benefit analysis)
- Determine adequacy of policies and practices addressing income and expenses
- Compare actual performance to the income and expense budget and capitalization goals
- Determine sufficiency of earnings to cover operating expenses, dividends, and necessary reserve transfers
- Determine adequacy of earnings to increase the net worth ratio (if necessary) or to maintain the net worth ratio at or above established benchmarks
- Ensure compliance with applicable laws, regulations, accounting practices, and policy statements when recording income and expense items
- Determine that management has instituted prompt correction of deficiencies or exceptions