CREDIT UNION RISK MANAGEMENT
Specialized Experience to Enhance Internal Controls
Harold Antao & Company LLC provides annual Other Supervisory Committee Audits and a comprehensive list of risk advisory services that include but are not limited to ACH Appendix Eight Review, Bank Secrecy Act, and Member Account Verifications for credit unions. This robust service is becoming increasingly invaluable for credit union leadership all over the country who need that guiding hand from experts who have the following:
- Technical regulatory knowledge necessary to ensure year-round compliance
- An understanding of how to resolve potential/existing weaknesses in accounting, information security, and process controls
- Ensure that the goals of the credit union are met
- The most comprehensive results possible with a hands-on and on-site approach
All credit unions should place strong emphasis on maintaining and strengthening the integrity and accuracy of their financial data, internal controls, and reporting practices. Not only does it make logical business sense in terms of protecting the interests of the depositors, but it also fosters continued trust among the membership and within the community that the credit union serves.
All areas of a credit union’s operations should be subject to periodic audit reviews by a firm that knows the regulations and can make an effective and unbiased evaluation of its practices.
We offer the following reviews:
Other Supervisory Committee Audits:
The nature of these services is to provide assistance to the Supervisory or Audit Committee in fulfilling its regulatory-mandated responsibility to ensure that the Board of Directors and management meet required financial reporting objec-tives and establish practices and procedures sufficient to safeguard members’ assets. Part 715 of the NCUA Rules and Regulations provides three options for complying with this requirement, including the option for credit unions under $500 million to conduct a specified scope of procedures as prescribed in the NCUA’s Other Supervisory Committee Guide.
Examples of what is required to be performed under Part 715 of the NCUA Rules and Regulations for an Other Supervisory Committee Audit include, but are not limited to, the following:
- Evaluating all internal controls put in place to manage financial risks, including but not limited to segregation of duties, review of exception reports, and account reconciliations
- Reviewing loan files for adherence to the credit union’s lending policies and procedures
- Confirming bank account balances and investments held at other institutions
- Performing a sample test of certain transactions to support a healthy control infrastructure
- Ensuring management practices are sufficient to safeguard assets, deter fraud, and avoid conflict of interest
At the completion of the Other Supervisory Committee Audit, we deliver to the Supervisory or Audit Committee a written report identifying the procedures performed. We also include in the report internal control reportable conditions and/or irregularities, illegal acts, and other findings and observations. The board of directors or management can then identify areas that need further review.
Risk Advisory Services
Our risk advisory services will take into consideration the level of risk within each of the audited business units based upon the products and services delivered in each area. Our focus will be on the inherent risks that are part of these pro-cesses and the related controls. Control testing will be based on significant risks and/or potential control weaknesses identified during our process reviews.
Examples of the audited business units include, but are not limited to, the following:
- Human Resources
- Vendor Management
- Card Administration
- ACH Appendix Eight Review Bank Secrecy Act
- Verification of Member Accounts
Harold Antao & Company LLC emphasizes being accessible to our clients and will spend the time necessary on-site to learn about your credit union and provide practical and sound feedback on how to resolve key issues.
For Credit Unions, nearly every activity involves risk – whether its making a loan, opening an account, or conducting a wire transfer. What this means is that instead of simply objectively reporting our findings to a supervisory/audit committee or board of directors, we help management recognize, evaluate, and control risk in these and other areas of operations.
Clients can call us any time with a question or issue, including how to post a general ledger entry, a chargeback, or about the pros and cons of a merger.