Volunteers Conference Opener to Address Federal Fin. Lit. Requirements
May 5, 2011
May 5, 2011
One of the most pressing issues for federal credit unions (FCU) and their boards is the new financial literacy requirements.
Under the National Credit Union Administration’s (NCUA) Regulations 701.4, all FCU directors must have the ability to read and understand a credit union balance sheet and income statement, and be able to question management and auditors in a “substantive” manner.
The new rules come into effect at the beginning of 2011, with compliance for sitting directors required by July 2011. Directors elected or appointed after January 27, 2011, must satisfy the financial literacy requirements within six months of being seated.
“At the very least, the director should seek information from reliable sources outside of their credit union’s management,” said Linda Keith, CPA, who frequently works with directors, managers and lenders of credit unions across the country. “I recommend each director keep your own records of your continuing education.”
To help federal credit unions meet these requirements, NCUA’s Economic Development Specialist John Dock will launch the Volunteers’ Conference with a pre-conference education session on the “Duties of FCU Board of Directors—NCUA Regulations 701.4”.
Covering the key requirements of the new rule, Dock will examine the financial literacy aspect of this rule and present an overview of the financial areas requiring board focus. Completing this two-hour session, participants will receive a Certificate of Attendance from the NCUA.
Regulators were also concerned that some board members did not have the technical knowledge required to oversee increasingly complex balance sheets.
Dock joined NCUA in 1994, after receiving his Juris Doctorate from Santa Clara University. He is also a licensed CPA in Arizona.
The Volunteers’ Conference will be held from June 23-25 at The Riverhouse Hotel & Convention Center in Bend, Ore. Special hotel rates and discounted airfares are available on the registration site.
Questions? Contact Training Programs Coordinator Yuri Jung 206.340.4817, firstname.lastname@example.org.