Submitted by sevans on Tue, 03/03/2015 - 3:46pm

To review credit union management, examiners may consider the following procedures:

• Review the credit union’s strategic and business plans and analyze management’s integration of risk management with planning and decision making;

• Review responsiveness to examination and audit suggestions and recommendations, and assess corrective actions taken to address risks identified in prior examinations and audits;

• Review the minutes of regular and special board and committee meetings for significant items;

• Review policies and procedures in each area of operation (e.g., lending, investment, personnel, etc.) and ensure that the policies and procedures are updated at least annually;

• Review the credit union’s budget, budget assumptions, and budget variance analysis (budgeted items against actual performance);

• Review documentation of management’s due diligence regarding existing, new, and planned products and services;

• Review the adequacy of the allowance for loan and lease losses and other valuation reserve accounts;

• Review material contracts signed by management since the last examination; and

• Review and analyze the supervisory committee’s annual work plan, including the audit and verification programs and internal control procedures, using the Supervisory Committee Audit and Verification Review questionnaire, to help determine the level of general ledger review.

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