Is your credit union board financially literate?

April is National Financial Literacy month, a month devoted to highlighting the importance of financial literacy and teaching us how to establish and maintain healthy financial habits. This is also a good time to implement a training program that will ensure financial literacy of your Credit Union’s Board of Directors.

Financial Literacy is one of many responsibilities tasked to the Board Members, under Section b- NCUA Rules & Regulations 701.4, General authorities and duties of Federal credit union directors. Some state chartered credit unions have similar requirements in place under their state laws. This rule clarifies the fiduciary duties and responsibilities for Federal credit union directors:

b. Duties of Federal credit union directors

1. Carry out duties in good faith
2. Administer affairs fairly and impartially
3. Within a reasonable time (not to exceed six months) have familiarity with basic financial and accounting practices;
   • Ability to read and understand balance sheet and income statements
   • Ability to ask appropriate questions

 

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