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Do’s and Don’ts of Being a CU TellerDate: Tuesday March 16, 2010Time: 3:30PM-4:45PM Eastern Standard Time
Understanding Self-Employed TaxesFOR MAKING CREDIT DECISIONSDate: Tuesday April 13, 2010 Time: 3:30PM-4:45PM Eastern Standard Time
Today’s FacilitatorToday’s Facilitator
Supervisory CommitteeSupervisory CommitteeDuties & ResponsibilitiesDuties & Responsibilities
Presented by ICUT Services
Will begin in a few minutes………….
Housecleaning ItemsHousecleaning Items
Detailed OutlineHold Verbal QuestionsUse the Chat FeaturePolling PowerPointComplete Class SurveySend Me an eMail???Door Prize Winner
Today’s AgendaToday’s Agenda
Define Supervisory Committee Qualifications & Power Of Committee Duties & Responsibilities Internal Review Program Best Practices for CUs Internet Scams, Fraud, Identity Theft How To Manage The Committee Open Mic
What Is What Is The Supervisory The Supervisory Committee?Committee?
The Guard Dog or “Watchful Eye”The Audit Committee
“The committee that helps minimize the possibility of the credit union incurring
any kind of loss.”
How Does One Get How Does One Get On This Committee?On This Committee?
Appointed by the Board Of Directors
- 1 may serve as director- 1,2,or 3 year terms
Who Can Serve?Who Can Serve?
Qualifications Member In Good Standing (Shares & Loans) Accounting Non Accounting Backgrounds Active & Cooperative Participant Commitment To CU
Structure Of CommitteeStructure Of Committee
Committee Size (3-5)Positions On CommitteeBoard Representation
What Power Does What Power Does Committee Have?Committee Have?
Access To All RecordsCan Call Special Membership Meetings
Removal Of Officers, Directors & CC Members
Duties & ResponsibilitiesDuties & Responsibilities
Planning & BudgetingMeet RegularlyAttend Board Meetings (?)
Understand Financial TrendsUnderstand The CU’s RisksSurprise Cash Counts
Duties & ResponsibilitiesDuties & Responsibilities
Planning & BudgetingMeet RegularlyAttend Board Meetings (?)Understand Financial TrendsUnderstand The CU’s RisksSurprise Cash Counts
Understanding Financial TrendsUnderstanding Financial Trends
Beginners: NAFCUNET.org / CUES.org / cuSchool.com
Intermediate: NCUA.gov (5300) / CUNA.org (Research & Statistics)
Advanced: ALM Reports, FPRs (NCUA.gov), Journal of Accountancy (COSO)
Duties & ResponsibilitiesDuties & Responsibilities
Planning & BudgetingMeet RegularlyAttend Board Meetings (?)
Understand Financial TrendsUnderstand The CU’s RisksSurprise Cash Counts
Understanding CU RisksUnderstanding CU Risks
Credit Risk Liquidity Risk Interest Rate Risk Compliance Risk Strategic Risk Transactional Risk Reputation Risk
Duties & ResponsibilitiesDuties & Responsibilities
Planning & BudgetingMeet RegularlyAttend Board Meetings (?)
Understand Financial TrendsUnderstand The CU’s RisksSurprise Cash Counts
Surprise Cash CountsSurprise Cash Counts Cash Count Audit Review As of_____________
Drawer #________
COINS: CHECKS:
Pennies ________ ______________ ________
Nickels ________ ______________ ________
Dimes ________ ______________ ________
Quarters ________ ______________ ________
Halves ________ ______________ ________
Dollars ________ ______________ ________
CURRENCY:
Ones ________ ______________ ________
Twos ________ ______________ ________
Fives ________ ______________ ________
Tens ________ ______________ ________
Twenties ________ ______________ ________
Fifties ________ ______________ ________
Hundreds ________ _____________ ________
Subtotal $ ________ Subtotal $________
Per Control $ ________ Per Control $________
Difference $ ________ Difference $________ I, ________________, owner of this drawer, certify that a member of the supervisory committee has counted all cash and checks in my possession as of ____________________. Signed___________________ Time & Date Name of Teller
Duties & Duties & ResponsibilitiesResponsibilities
Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
Duties & Duties & ResponsibilitiesResponsibilities
Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
Duties & Duties & ResponsibilitiesResponsibilities
Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
Duties & Duties & ResponsibilitiesResponsibilities
Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
Duties & Duties & ResponsibilitiesResponsibilities
Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
Duties & Duties & ResponsibilitiesResponsibilities
Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
Duties & Duties & ResponsibilitiesResponsibilities
Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
Confirm Closed AccountsConfirm Closed AccountsDear Member:
As a valued member that planned to closed your account at the credit union we hope that you had a positive experience that you found our services of value.
In an effort to improve our services, we would appreciate it if you would take a few seconds to respond to the survey shown below:How long were you a member? ___________________________
Why did you close your account? __________________________
Would you ever join again? _____________________________
Did you know our policy is “once a member, always a member”?_____
Sincerely,
Supervisory Committee
Duties & ResponsibilitiesDuties & Responsibilities
Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
Duties & ResponsibilitiesDuties & Responsibilities
Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
Confirm Collection AccountsConfirm Collection Accounts
Young & Young Law Firm
100 Best Way
Nocandu, Nebraska 08066
Dear Mr. Young:
On behalf of the supervisory committee for the ABC Federal Credit Union, I would like to confirm what credit union accounts have been forwarded to you for collection during the past twelve months. As part of our confirmation we would like to know the following information:
ACCOUNT NAMEDATE RECEIVEDORIGINAL LOAN BALANCECURRENT BALANCESTATUS
Again, we only need this information for accounts that you received between July 1, 20XX and the date of this letter.
Please forward all responses to this request to:
John Doe
c/o ABC FCU
12 Wayward Road
Nebraska City, Nebraska 08065
Duties & ResponsibilitiesDuties & Responsibilities
Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
Confirm Death ClaimsConfirm Death Claims
CUNA Mutual InsuranceP.O. Box 1084Madison, WI 53701ATTN: Death Claims
Dear Claims Department:
On behalf of the supervisory committee for the ABC Federal Credit Union, I would like to confirm what death claims have been presented to you for the credit union during the past twelve months. As part of our confirmation we would like to know the following information:
CU EMPLOYEE SUBMITTING CLAIM
MEMBER ACCOUNT NAME
AMOUNT OF CLAIM
DATE CLAIM WAS SUBMITTED
STATUS
Again, we only need this information for claims that you received between July 1, 20XX and the date of this letter.
Please forward all responses to this request to:
John Doec/o ABC FCU12 Wayward RoadNebraska City, Nebraska 08065
Duties & ResponsibilitiesDuties & Responsibilities
Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
Internal Review ProgramInternal Review Program
The Supervisory Committee is the audit committee for the ABC Federal Credit Union. In that capacity, the committee will engage in regular activities that are intended to monitor the overall operation of the credit union. The structure of this committee will be compliant with the Federal Credit Union Act and the bylaws of the ABC Federal Credit Union. Accordingly, the committee will be responsible for the following:
Internal Review ProgramInternal Review Program
Report all committee activities to the board of directors
Maintain minutes for all committee meetings. Annually review the internal controls Annually follow-up with Supervisory Committee audit findings
Annually follow-up with NCUA examination findings Annually review the credit union’s strategic business plan.
Quarterly perform surprise cash counts. Quarterly perform verification of deposits in transit Quarterly perform a review of teller activity. Quarterly review negative share report. Quarterly review a sample of loan files for compliance.
> Monthly to monitor board activity
Identity Theft Identity Theft (Ijacking)(Ijacking)
It is the use of another person’s identification, credit, or other data that involves fraud or deception, and economic gain is realized in the name of the victim. Unlike fingerprints, that are unique to each individual, personal data, like social security numbers, bank accounts or credit card numbers, telephone calling card numbers and other valuable identifying data can be used.
Identity Theft On The Identity Theft On The RiseRiseRecent reports put the numbers of ID Theft at 9.9 million per year… Insurance Journal January 2010
–5% of the adult population in America
–Cost $50 billion annually.
–1 out of 4 Americans fall victim to ID Theft.
–1000 cases of ID Theft occur each day.
10 Most Risky Cities for 10 Most Risky Cities for IjackingIjacking
1) San Francisco2) Seattle 3) Denver4) San Jose5) San Diego 6) Atlanta 7) Salt Lake City8) Las Vegas9) Sacramento 10) Phoenix
Sperling’s Best Places
10 Least Risky Cities 10 Least Risky Cities for Ijackingfor Ijacking
41) Rochester42) Providence43) Cincinnati 44) Cleveland45) Virginia Beach46) New Orleans 47) Birmingham48) Louisville 49) Buffalo50) Pittsburgh
Sperling’s Best Places
Justices Limit Use of Justices Limit Use of Identity Theft Law Identity Theft Law
The Supreme Court on Monday rejected a favorite tool of prosecutors in immigration cases, ruling unanimously that a federal identity-theft law may not be used against many illegal workers who used false Social Security numbers to get jobs. …..NY Times May 4, 2009
The LawThe Law
•Identity Theft and Assumption Deterrence Act of 1998
•Gramm-Leach-Bliley Act (GLBA) requires that financial institutions have policies, procedures, and controls in place to prevent and detect fraudulent access to such information.
•Red Flag Rule
Best Practices For CUsBest Practices For CUs
•Protect your member information.
•Verify new accounts with a Member Identification Program
•Verify and review address changes. Confirm old addresses or a simple callback to phone numbers on file.
•Carefully review loan documents and compare social security numbers, addresses and employer names on application and the credit report.
•Conduct a “System Penetration Test”.
Best Practices For CUsBest Practices For CUs
•Train all staff on security and privacy protection.
•Policies should include steps to help victimized members.
•Conduct criminal and civil background checks before hiring employees.
•Don’t use SS# as employee ID numbers on paychecks, time cards, staff badges, etc.
•Restrict system access to sensitive personal data to only those who need the information.
Best Practices For CUsBest Practices For CUs
•Ensure proper disposal of sensitive information.
•Inform your members about business identity theft such as vandalized or mimicked Web sites.
•Educate your members that financial institutions do not contact members to request or verify security information.
•Consider software/hardware that regularly monitors the database to detect unusual financial patterns and activity.
Best Practices For CUsBest Practices For CUs
•Have a written privacy policy, adequately communicate the policy and provide training.
•Lock up and limit access to personnel files.
•Provide a secure location for employees to store their purses, documents, briefcases, etc. at the workplace.
•Ensure that your vendors are protecting confidential employee data.
Internet Scams & FraudInternet Scams & Fraud
Phishing/Pharming – Educate your members
Age-targeted Scams – Youths and seniors
Counterfeiting – Currency & DraftsRecords/Systems Hijacking – Zombie Programs
- designed to steal data, damage web sites, slow response time
Useful ResourcesUseful Resourceshttp://www.IdentityTheft.orghttp://www.ncua.govhttp://www.internetfraud.usdoj.gov/ http://www.antiphishing.org/ NCUA Guide for Supervisory CommitteesNCUA Federal Credit Union BylawsNCUA Rules & Regulations
Managing The CommitteeManaging The Committee
Work As Committee & Individually Delegate To Staff Outsource Plan
PlanningPlanning Use The Entire Year Don’t Try To Complete Everything At Once Have A Schedule (less than 30 min per month)
Let’s Look At A Sample Year
Month 1Month 1
- Appoint committee members to positions
- Introduce Training Resources- Schedule Activity for the year
Month 2Month 2
- Cash Count Training- Elect one designee to review Accounting Checklist with management.
Month 3Month 3
- Report on accounting checklist- Elect one to confirm collection accounts
- Elect one to confirm death claims
Month 4Month 4
- Report on collection accounts- Report on death claims- Elect one to coordinate collection of returned mail
- Do surprise cash count(s)
Month 5Month 5
- Report on plans to collect returned mail
- Report on cash count(s)- Meet with audit firm to discuss timing & scope
Month 6Month 6
- Report on audit plans- Attend or coordinate a “HOW TO APPROVE A LOAN” training program.
- Elect one to review minutes
Month 7Month 7
- Report on training status- Report on board minutes (or activity)
- Committee review of returned mail
Month 8Month 8
- Have management or audit firm train committee on bank reconcilements
Month 9Month 9
Committee Review Of Loan Files
Month 10Month 10
- Report On Loan File Review- Perform surprise cash count- Solicit audit bids or engage audit firm
Month 11Month 11
- Report on cash count- Report on audit plans- Attend educational workshop
Month 12Month 12
- Report on training- Review completed audit report and discuss corrective action with management.
Thank YouThank You
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