What are Supervisory Committee Quarterly procedures?

These are procedures the Supervisory Committee should perform during the year to fulfill their oversight task.  Specific procedures
are provided in the NCUA Supervisory Committee Guide for FCUs 1999.  These are ongoing, periodic procedures and are not to be
confused with the Supervisory Committee "annual audit" procedures, which is a different and separate oversight task of the
Supervisory Committee.

Financial Controls, Inc. can perform these quarterly procedures on behalf of the Supervisory Committee.  The quarterly procedures
engagement is a different and separate engagement from the "annual audit" engagement.  Fieldwork normally takes 1-2 days,
depending on the procedures and scope chosen.

Financial Controls, Inc. can perform these procedures on a quarterly, semi-annual, or annual basis.  There is no specific regulatory
requirement as to the interval.

What procedures are performed during a quarterly engagement?

There are a variety of different procedures that can be performed.  The specific procedures to be performed are determined by
management and the Supervisory Committee.  This determination is normally based on cost, internal controls, and areas of
concern.  Some of the procedures that can be performed are:

  • Cash counts
  • Travelers checks counts
  • Bank reconciliation reviews
  • Loan documentation review
  • New loans confirmations
  • Loan file maintenance
  • Allowance for loan losses methodology review
  • New accounts confirmations
  • Closed accounts confirmations
  • Insider accounts review (employees & officials)
  • Inactive & dormant accounts review
  • Share file maintenance
  • Invoice review (expenses)
  • Corporate credit card expense review
  • Internal controls review (operations)
  • Internal controls review (compliance - BSA, OFAC, ACH, TIL, TIS, etc.)
  • Specific areas chosen by management & the Supervisory Committee
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