Development Best Practices in Credit Union Supervision: Supervisory Committee Duties and Responsibilities

This document lists out the duties and responsibilities of the supervisory committee of the World Council of Credit Unions (WOCCU).It states that:

• The supervisory committee members usually serve on a voluntary basis and report to the membership;
• The committee normally consists of 3-5 members;
• The committee's principal objectives are to perform, or select a qualified individual to perform annual audit, member account verification and periodic internal audits of operating areas throughout the year.

The document further lists out:

• Prerequisites of the supervisory committee members:
  • Experienced in accounting, finance and/or accounting;
  • Experienced in performing external and internal audits;
  • Capable of reading and interpreting financial statements.
• Duties and responsibilities of the supervisory committee:
  • Performing or selecting an external auditor to perform annual audits of financial records and books of the credit union;
  • Performing or contracting qualified individuals to perform monthly internal audits;
  • Presenting internal audit findings and annual audit reports to the board;
  • Receiving and investigating any complaint or appeal by members concerning operations of the credit union.