James N. Jordan, CPA, LLC

Vendor Due Diligence:

Many compliance regulations may seem like a nuisance, but this one is vitally important.

Credit unions have a huge responsibility because we are being trusted with credit union members' money and private information.  How much do you know about the financial condition and security practices of your service providers, investment, and business partners?

Recent economic events have proven the importance of due diligence.  Please contact us for more information.

Tech Tips:

Microsoft Office users who are running older versions may have problems reading Word or Excel documents created using the new version of Office (Office 2007).  If you have problems opening a Word or Excel file, check the file version.  A compatability update can be found at the Microsoft website www.microsoft.com

Most credit unions do a great job of backing up member account data, but don't forget about files on your laptops and PCs.  Having a backup procedure could help prevent word documents, spreadsheets, emails and other important information from being lost.  There are many options available, including USB storage devices, external hard drives, or backing up to a network or web based storage system. 

Unclaimed Property Audits:

Some credit unions have been receiving notices from the state that they are being subject to Unclaimed Property Audits.

These rules primarily apply to unclaimed member deposits and checks issued by the credit union which have never been cashed. Even though you file with the state, these rules apply to both state and federal credit unions. 

Being prepared can reduce your time and expense if you get audited.  We recommend that credit unions review their business practices and search their records for unclaimed funds. 

Mortgage Loan Compliance:

Under RESPA (Real Estate Settlement Procedures Act) most closing costs are required to be disclosed as part of the finance charge and the Annual Percentage Rate (APR) must include these costs.  For example, a 6% mortgage loan might be 6.25% APR including closing costs.  If you are not including applicable closing costs in your finance charge and APR disclosures, you may not be in compliance.  

Supervisory Committee Responsibilities

The duties of the Supervisory Committee may vary based on the size and complexity of the credit union. However, NCUA Regulations require all credit unions to have an annual Supervisory Audit. The Supervisory Committee is an independent committee responsible for performing or engaging someone to perform the annual audit.  The committee members do not have to perform the work themselves.  Most credit union Supervisory Committees hire an outside auditor. Regulators are also focusing on other audit areas including ACH Audits, BSA (Bank Secrecy Act) Compliance, and consumer compliance rules.  We specialize in audit services for credit unions and can help Supervisory Committees fulfill their duties.