Credit unions have a
“watchdog” looking out for their interests, overseeing operations and ensuring their
records are maintained with honesty and integrity: the supervisory committee.
The committee has a host of tools at its disposal to carry out its purpose. Among
them is an annual audit of the credit union.
Information gleaned from
this audit assists the committee in evaluating credit union operations and in
making recommendations to the board. The supervisory committee may also perform
surprise cash counts, review non-financial transactions or reconcile credit
union accounts with an eye toward compliance with laws and regulations. All
these activities place the committee in a prime position to catch suspicious transactions
or behaviors that may indicate fraud.
Jay Slagel is vice president of risk management and claims for
Allied Solutions, LLC. He regularly performs risk assessments for
credit unions partnering with Allied. Read his entire "Inside NAFCU Services" column from the January/February 2012 issue of The Federal Credit Union below.
Contact info at: www.nafcu.org/allied