Board of Directors Online Training Subscription

Our modules are designed to meet NCUA expectations for credit union board training. Keep a copy of this outline within your training records to show to NCUA or other examiners.

The Credit Union Business Model

• How do you form a credit union?
• State or Federal
  • Field of membership
• Dollars and cents
• Business model
  • Highly regulated

Credit Unions and our Industry

• History
  • Birth of the movement
    • Europe
    • Canada
  • History in United States
    • First credit union
    • Major milestones
• Nature
  • Cooperative
  • Common bond
  • Democratically-controlled
  • Volunteer leadership
  • Limited powers
  • Taxation
  • Products and services
• Organization
  • Elected board of directors
  • Supervisory committee
• Credit Union Language
  • Members versus customer
  • Dividends versus interest
  • Shares versus deposit

Role of the Board

• The Board of directors
  • General responsibility
  • Who is eligible
    • Nominating committee
    • Bylaws (explain bylaws)
  • How are they elected
  • Number, terms, vacancies
  • Compensation
• Specific duties
  • Membership applications
  • Fidelity coverage
  • Fill vacancies on board and credit committee
  • Appoint members of supervisory committee/credit committee
  • Investments
  • Number and class of share accounts
  • Loans, loan officers and lending policies
  • Interest refunds
  • Loan officers
  • Par value of shares
  • Hire and compensate officers and employees
  • Executive committees
  • Establish share rates
  • Establish all necessary internal controls
  • Do all other things "necessary and proper."
• Corporate Governance
  • Hiring and working with CEO
  • Strategic planning
  • The board meeting
    • The "Board Pack"
    • Key ratios
    • Rules governing meetings
  • Risk management
  • Overview: Too little or too much?
  • Relationship with supervisory committee
  • Member special meetings

Fiduciary Duties and Ethics

• Ethics
  • What are NCUA's expectations?
  • Why should we care?
    • U.S. Sentencing Commission
    • Reputation risk
    • Member expectations
  • The Bank Bribery Act
• Fiduciary duties
  • What are fiduciary duties?
  • Which apply to credit union volunteers?
    • Duty of care
    • Duty of loyalty
    • Other duties?
    • Overview of NCUA's fiduciary duties for federal credit union directors rule
  • Liability issues

How Credit Unions are Examined

• Why does NCUA examine credit unions?
  • Protection of insurance fund
  • Compliance with rules and regulations
• Risk-based examination process
  • Explanation of risk-based exams
    • Maximize efforts on weakest institutions
    • Maximize use of agency resources
  • Minimum areas of examiner review
  • What examiners will inspect
    • 5300 call report data
    • Supervisory committee audits
    • Bank Secrecy Act compliance
    • Past exam findings
    • Credit union policies and procedures
    • Employee/official interviews
• What are they looking for?
  • Overview of CAMEL rating system
  • Capital adequacy
  • Asset quality
  • Management
  • Earnings
  • Liquidity
  • Your credit union's CAMEL rating and what it means
• Joint conferences and exit meetings
  • Credit union expectations
  • NCUA responsibilities
  • Communication during the exam
• NCUA administrative powers

How Credit Unions are Regulated

• Credit union powers
  • The Federal Credit Union Act
  • Explicit and incidental powers
  • Limitations
• What governs credit union operations
  • NCUA
    • Federal Credit Union Act
    • NCUA regulations and guidance
  • Dual chartering system
  • Congressional mandates
  • Other federal regulators
    • U.S. Department of the Treasury
    • The IRS
    • Federal Reserve
    • Financial Accounting Standards Board
  • Consumer Financial Protection Bureau
  • Contracts
  • Litigation risk
  • Reputation risk
  • Risk management
  • Your credit union
    • Vision statements
    • Strategic plan
    • Ethics guidelines
    • Appetite for risk
    • Policies and procedures
• Two-way street
  • Interaction with lawmakers
  • Interaction with regulators

Managing Risk

• Overview of risk and the role of the board in managing it
  • What is risk
  • Responsibility of board to manage risk
  • Examples of how risk adversely affect credit unions
• What types of risk affect federal credit unions
  • Credit risk
  • Interest rate risk
  • Liquidity risk
  • Transactional risk
  • Compliance risk
  • Strategic risk
  • Reputation risk
• How does NCUA expect credit unions to manage risk
  • Risk identification
  • Risk measurement
  • Risk control
  • Risk monitoring
• Other areas involving risk management
  • The Bank Secrecy Act
  • Information security
  • Identity theft prevention
  • Vendor management

Credit Union Financials

• Overview
• Key account concepts
• Financial report ratios
• ALM and investments
• Interest rate risk
• How to manage risk
• Important risk management ratios
• Policies needed
• Liquidity
• Key ratios to review
• Summary

The Supervisory Committee

• The supervisory committee
  • General responsibility
  • Who is eligible and how are they selected
  • Number, terms, vacancies
  • Compensation
  • Suspension
• Specific duties
  • The audit
  • Verification of accounts
• Other duties
  • Internal audit
  • Resolution of member complaints
  • Strengthening internal controls
  • Reviewing management's corrective actions
  • Special meetings
    • Removal meetings
    • Membership meetings

Political Involvement

• The credit union as a political being
• Lobbying and the role of the board of directors
• Two-way street
  • Interaction with lawmakers

BSA and OFAC

• Enforcement actions
• Overview of the regulations
• A board's responsibility
• Ensure your credit union maintains an effective Bank Secrecy Act (BSA)/AML internal control structure
  • Program requirements
  • Internal controls
  • Risk assessment
  • Recordkeeping
  • Reporting
  • Dealing with suspicious activity
  • Member due diligence
  • CIP
• Audit deficiencies
• BSA compliance officer
• OFAC laws and regulations
• SARs