Why must supervisory committees confirm their credit union’s vendors are compliant?
“Because if they’re not, they’re not the ones that will get spanked by examiners,” says attorney Frank Drake. “You’re the one that’ll get spanked.”
And in their role as “the conscience of the board,” it’s incumbent upon supervisory committees to review vendor contracts. This involves “asking questions that will make vendors uncomfortable,” says Drake, who addressed the CUNA Supervisory Committee and Internal Audit Conference.
Being entirely vendor compliant is no small task. Drake says credit union leadership should ask:
- Does your credit union have certification of their lawyer’s bar license, current-year malpractice license, and document retention and destruction policy on file?