Supervisory Committee Member

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The Supervisory Committee is comprised of three to five volunteer credit union members who are appointed annually by the board of directors to serve as the guardian of the best interests of all members of the credit union. Their role is to perform ongoing reviews and audits to ensure that the credit union’s records are maintained properly, honestly, and accurately; that policies established by law and by the board of directors are carried out faithfully; that members are receiving the best possible service, and that members’ assets are safeguarded and used according to the purpose of the credit union.

SPECIFIC DUTIES & RESPONSIBILITIES

The usual duties of a Supervisory Committee are described below. Additional duties may be required from time to time.

Jointly with other Committee members

• Act as ombudsman, linking to the members by being their independent source for questions, investigations or complaint resolution;
• Ensure that appropriate policies and procedures are in place and followed;

• Ensure that the credit union operations follow applicable laws and regulations, such as: statutory laws, regulatory laws, charter and bylaws, NCUA Rules and Regulations, Federal consumer laws and employment laws;
• Ensure that financial reports are accurate and reflect the true condition of the credit union;
• Determine that management has promptly prepared accounting records and financial reports to accurately reflect operations and results;
• Ensure that the required verifications of accounts are conducted annually;
• Ensure that member assets are safeguarded;
• Ensure safety policies and procedures are in place and adhered to;
• Ensure internal controls are effective and maintained;
• Review the conduct of the official family (management and board of directors) to ensure that decisions are in alignment with policies and the strategic plan and guard against conflicts of interest; and
• Direct the annual audit plan of the credit union.

As an individual

• Capable of reviewing monthly board meeting minutes, attending Committee meetings and actively participating in the Committee process;

• Ability and willingness to ask probing questions about business and financial matters;

• Willingness to learn;

• Ability to deliver constructive and impartial criticism;

• Independence in attitude (requires the exercise of fairness toward credit union officials, members and others who may rely upon the report of a supervisory committee audit report);

• Expertise in financial accounting and reporting; and

• Experience with credit unions.

KNOWLEDGE/ABILITIES REQUIRED FOR SUCCESS

• Able to acquire requisite supervisory committee skills within six (6) months of being appointed. At a minimum, a Committee member should be able to examine and understand audit reports and possess the ability to ask substantive questions of the board, management, and auditors;
• Knowledge of bookkeeping, accounting and auditing;
• Basic understanding of the auditing function and rules and regulations governing credit union;
• Knowledge of risk measurement and management;
• Ability to work as a team;
• Ability to think and act independently and impartially; and
• Possession of business skills helpful.

PREREQUISITES

• Be a member of FFCU in good standing;
• Be at least 18 years of age;
• Be bondable; and
• Be a volunteer who is not employed at the credit union or serving on another committee.

TIME COMMITMENT

• 4-6 hours/quarterly to prepare for and attend scheduled committee meeting;
• 2-4 hours/year to meet with auditors, board of directors and management;
• 2-3 hours/year for annual membership meeting;
• average of 2-4 hours/month for ongoing education (more for new committee members);
• plus additional time as needed for committee assignments, special tasks, special membership meetings; and chapter or league involvement.

A credit union volunteer (or official) is referred to as a fiduciary by law. This means an official holds a position of trust. An official has an affirmative duty to care for the property of others and can be held liable for failing to perform that duty. Because the members of a credit union are too numerous to handle any but the most basic decisions for the credit union, the law provides for them to elect directors who appoint committee fiduciaries to act on the members behalf.

The position of volunteer is not a shield of immunity from personal liability. A volunteer bears these duties:

1. Duty of loyalty. A committee member must be focused solely on, and be faithful to, the required duties and responsibilities of fulfilling his or her role as a committee member. Committee members must never engage in self-dealing or self-serving transactions.
2. Duty of care. A committee member must carry out his or her duties in good faith, in a manner reasonably believed to be in the best interests of the membership as a whole, and with such care, including reasonable inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.
3. Duty of Obedience. A committee member must obey the law in all its variations: statutory laws, regulatory laws, bylaws, and policies.