Responsibilities are becoming more clear…that’s good!
NCUA has come out with their report directing Directors of Credit Unions to up their skills, if need be, in understanding financial statements and taking the appropriate role in the oversight of the credit unions financial performance and risk.
If you are a CU Director or CEO I recommend you read the letter here:
NCUALetterDutiesOfFCUBoards11-FCU-02.pdf
The duties and responsibilities require:
- Provide general direction and control
- Good faith and reasonable care
- Fair and impartially
- A working familiarity with basic finance and accounting practices
- Conformity with regulations and good business practices
- Reliance on others when prudent
Deadlines
When it comes to financial knowledge, a new board member who does not already have a good grasp of the financial concepts to carry out his/her duties has six months to develop them through training, courses, mentoring, etc.
Most existing board members have until July 27th, 2011 to acquire the necessary knowledge and skills.
IDEA: Create a resume and track your continuing education
At the Kentucky CU League annual meeting in my session on What did you get yourself into? Responsibilities of Board Members in the ‘New Normal’ attendees recommended you create a resume for yourself if you are a CU Director. I would add to track your education in this area. In addition to listing the annual meeting or directors conference, list the sessions you attended that improve your capabilities in the area of board responsibilities and particularly financial skills.
Bank Directors
I am guessing that bank directors across the country are scrambling to improve their skills in this area as well. Any bank directors or CEOs want to weigh in?
