NCUA’s Supervisory Committee Audit Proposal Would Ease Compliance

CUNA wrote in support of NCUA’s proposed rule on supervisory committee audits, believing the proposed changes would make compliance with the requirements less burdensome. The proposal would amend NCUA’s regulations governing the responsibilities of a federally-insured credit union to obtain an annual supervisory committee audit of the credit union.

The proposal would replace the option to conduct an audit per the Supervisory Committee Guide with the option to meet certain minimum requirements, which would be incorporated into a new appendix to Part 715 of NCUA’s regulations.

The proposal would also replace the current, 120-day time frame specified to the auditor as a specified target date for written reports with language that provides greater flexibility. The proposed standard would only require a credit union to specify in the engagement letter a target delivery date that enables the credit union to timely meet its annual audit requirements.

CUNA also supports this proposed change. “We agree with the NCUA that this proposed change would enable a credit union to better negotiate the target date for delivery of written reports with the firm it contracts with, and still meet the audit requirements,” reads CUNA’s comment letter.