POSITION TITLE: Supervisory Committee
PREPARED: August 2004
The Supervisory Committee is responsible for ensuring that the Board
of Directors and the management of the credit union a) meet required financial
reporting objectives and 2) establish practices and procedures sufficient
to safeguard members’ assets. Supervisory committee terms are for
either two or three years. This is a volunteer position.
- Determine that internal controls are established and effectively maintained to achieve the Credit Union’s financial reporting objectives which must be sufficient to satisfy the requirements of the Supervisory Committee audit, verification of members’ accounts and its additional responsibilities.
- Ensure that the Credit Union’s accounting records and financial reports are promptly prepared and accurately reflect operations and results.
- Determine that the relevant plans, policies and control procedures established by the Board of Directors are properly administered.
- Confirm that policies and control procedures are sufficient to safeguard against error, conflict of interest, self-dealing and fraud.
- Conduct, or cause to be conducted, a verification of the loan and share accounts of the members in accordance with Credit Union policy and regulatory requirements.
- Suspend any member of the Board of Directors, if necessary, in accordance with state and federal regulations.
- Attend monthly Supervisory Committee meetings and distribute timely minutes of all meetings to the Credit Union Administrative Assistant for further circulation to all volunteers and Credit Union management.
- Attend regular and special meetings of the Board when required.
- Consider the business of the Credit Union and its members to be confidential in nature and treat it accordingly. Ensure that any member records in the possession of the Committee are in a secure place.
- Attend monthly committee meetings.
- Conduct required monthly audit verifications.
- Ensure that an annual audit of member accounts is performed annually.
- Thoroughly review Board packets each month.
- Fulfill yearly educational requirements. (see educational requirements)
- Be aware of state and federal political issues regarding the credit
- Give all assistance possible to fellow board members, appointed officers
and employees of the Credit Union in the discharge of the duties of
Supervisory Committee Members:
- Must be a member in good standing with the Credit Union.
- Must be at least 18 years of age.
- Must be bondable by the Credit Union’s fidelity bond company.
- Must authorize a criminal background check and credit check.
Complete the Volunteer Achievement Program Supervisory Committee modules no later than the twelfth month in office. These are a series of six self-study booklets with a self-administered competency test at the end of each booklet. Each Committee member is encouraged to achieve the Filene, Raiffeisen and Bergengren awards. The program provides valuable information on general credit union philosophy and operations, and the modules are provided by NRFCU at no cost to the Committee member.
- Annually required to attend one of the following: an educational program offered by the Credit Union Association of Oregon (CUAO), Credit Union Executives Society (CUES), Credit Union National Association (CUNA) or two chapter meetings. A Committee member may complete three additional VAP booklets during the year in lieu of attendance at above meetings. Seminars attended outside the credit union arena, but regarding financial management, also satisfy educational requirements. Committee member will summarize the content of attended programs at their next regular Supervisory Committee meeting.
Monthly Supervisory Committee meeting – normally held the week prior to the Board meeting.
Monthly Board meeting – currently held on the fourth Monday of each month in the Credit Union’s conference room. The meeting begins at 11:30 and lasts approximately 90 minutes. A member of the Supervisory Committee shall be invited to all Board meetings subject to the discretion of the Board Chair
Annual meeting of the membership – generally held in March or April.
- Annual planning session (when invited) – normally held in the fall of each year for one to two days.
- Other special Board meetings if required.
NRFCU carries Directors’ and Officers’ liability insurance
through CUNA Mutual Insurance. This policy protects the Credit Union’s
directors, volunteers and employees from liability arising out of their
duties performed for the Credit Union. The annual aggregate limit is $2,000,000.
A detailed list of insurance coverage is included in the Board Policy
I understand that all loans received from NRFCU must be approved by the
Board of Directors.
I have read and understand the Supervisory Committee member job description.
I agree to be legally bound to all requirements applicable to my duties
as a committee member. If during my term of office I find that I cannot
devote sufficient time to Credit Union business and fully comply with
the outlined duties and requirements the Board will have the authority
to review the circumstances and remove me from my appointment, or I may
submit a letter of resignation to the Chairperson of the Board of Directors.
Annually, each committee member will be asked to review and sign this