A new, streamlined Supervisory Committee Audit Guide has been released by the NCUA. The guide compliments Appendix A to Part 715 which replaced the previously decommissioned Supervisory Committee Guide. NAFCU supported a simplified guide when it was proposed and pushed for the decommissioned guide to remain on the NCUA’s website as a resource for credit unions.
The new guide issued Wednesday lays out the minimum procedures to assist the Supervisory Committee in completing the areas of review outlined in Appendix A when permitted to choose the “Other Supervisory Committee Audit” option for completing its annual audit requirement.
The NCUA board finalized the rule to simplify supervisory committee audit requirements in September 2019. The final rule eliminates two audit types that federally-insured credit unions (FICUs) seldom use, and eliminates a specific deadline (120 days) for outside, compensated persons to deliver written audit reports to FICUs.
In a Compliance Blog post on the topic, NAFCU Regulatory Compliance Counsel Reginald Watson tackled the final rule. “In replacing the guidance, the final rule adopts the newly-created Appendix largely as proposed, with the addition of two new topics: a review of board minutes and testing for unrecorded liabilities,” Watson wrote. “In lieu of prescriptive provisions, the appendix provides flexibility for the Supervisory Committee to use its judgment in determining the auditing procedures.”
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