• Home
  • |
  • Blog
  • |
  • CU Directors have to understand Financials: New Rules
Loading the audio player...

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

It is more than just financials, however.

The duties and responsibilities require:

  1. Provide general direction and control
  2. Good faith and reasonable care
  3. Fair and impartially
  4. A  working familiarity with basic finance and accounting practices
  5. Conformity with regulations and good business practices
  6. 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?

Related Posts

Pass-Through from a K-1: Count Qualified Dividends?

Pass-Through from a K-1: Count Qualified Dividends?

Understanding Partnership Interests: CPA Tony Mailhot on Negative Basis and Tax Implications

Understanding Partnership Interests: CPA Tony Mailhot on Negative Basis and Tax Implications

When Capital Gains Rules Camouflage the True Cashflow: 1065 K-1

When Capital Gains Rules Camouflage the True Cashflow: 1065 K-1

Understanding Tax Return Analysis and Nominee Income for Credit Analysts: Can You Utilize It?

Understanding Tax Return Analysis and Nominee Income for Credit Analysts: Can You Utilize It?

Linda Keith, CPA


Linda Keith CPA is an expert in credit risk readiness and credit analysis. She trains banks and credit unions throughout the United States, both in-house and in open-enrollment sessions, on Tax Return and Financial Statement Analysis.
She is in the trenches with lenders, analysts and underwriters helping them say "yes" to good loans.
Creator of the Tax Return Analysis Virtual Classroom at www.LendersOnlineTraining.com, she speaks at banking associations on risk management, lending and director finance topics.

>