What is in Your Supervisory/Audit Committee Packet ASSOCIATION OF CREDIT UNION INTERNAL AUDITORS MEETING APRIL 28, 2017

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1 What is in Your Supervisory/Audit Committee Packet ASSOCIATION OF CREDIT UNION INTERNAL AUDITORS MEETING APRIL 28, 2017

2 Overview Standards for Reporting to Audit Committees & Senior Management Common Agenda Items from Participants Illustrations

3 The Institute of Internal Auditor Professional Practices Framework Standard 2020 Communication and Approval The chief audit executive must communicate the internal audit activity s plans and resource requirements, including significant interim changes, to senior management and the board for review and approval. The chief audit executive must also communicate the impact of resource limitations.

4 The Institute of Internal Auditor Professional Practices Framework Standard 2050 Coordinate and Reliance The chief audit executive should share information, coordinate activities, and consider relying upon the work of other internal and external assurance and consulting service providers to ensure proper coverage and minimize duplication of efforts

5 The Institute of Internal Auditor Professional Practices Framework Standard 2060 Reporting to Senior Management and the Board The chief audit executive must report periodically to senior management and the board on the internal audit activity s purpose, authority, responsibility, and performance relative to its plan and on its conformance with the Code of Ethics and the Standards. Reporting must also include significant risk and control issues, including fraud risks, governance issues, and other matters that require the attention of senior management and/or the board.

6 The Institute of Internal Auditor Professional Practices Framework Standard 2060 Reporting to Senior Management and the Board (interpretation) The chief audit executive s reporting and communication to senior management and the board must include information about: The audit charter Independence of the internal audit activity The audit plan and progress against the plan Resource requirements Results of audit activities Conformance with the Code of Ethics and the Standards, and action plans to address any significant conformance issues Management s response to risk that, in the chief executive s judgment, may be unacceptable to the organization

7 The Institute of Internal Auditor Professional Practices Framework Standard 2410 Criteria for Communicating Communications must include the engagement s objectives and scope as well as applicable conclusions, recommendations, and action plans. Standard 2430 Use of Conducted in Conformance with the International Standards for the Professional Practice of Internal Auditing Indicating that engagements are conducted in conformance with the International Standards for the Professional Practice of Internal Auditing is appropriate only if supported by the results of the quality assurance and improvement program.

8 Special Recognition of Participants Lori, Rivermark Community Credit Union Marti, Wauna Credit Union Sue, Advantis Credit Union Jill, Washington State Employees Credit Union Jenelle, TwinStar Credit Union Luci, Fibre Federal Credit Union James, Unitus Community Credit Union Susan, Qualstar Credit Union Teri, Peoples Community Federal Credit Union Don, Harbor Stone Credit Union

9 Common Agenda Items of Participating Credit Unions References Agenda/Table of Contents Minutes from Last Meeting Audit Plan, Audit Plan Progress Internal & External Audit Reports and/or findings Outstanding Audit Items Financials Internal Audit Charter, Audit Committee Charter Loan & Share Documentation Statistics Request for Proposals, Engagement letters Training Materials

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11 SUPERVISORY COMMITTEE MEETING AGENDA May 3, :00 PM Meal and 12:30 PM Meeting Location: Clatskanie Upstairs Conference Room Meal: Colvins Guest: XXX New Member introduction: XXX I. Recap Supervisory Committee minutes approved by reviewed and signed- March Meeting Board meeting reports March: Bob M, April: Mike H Review and discuss March and April board packet and actions Review and discuss any policy changes reported in board minutes II. Information Internal Auditor s Report Review calendar which was edited and get approval for changes Audit progress Clifton Larson Allen audit final reports received and presented by Dean Rohne to Supervisory Committee members, Board of directors, and Leadership Team on April 20 th. Employee required 5 days off vacation in 2016 verification report completed Astoria Branch Audit finalized Safeway Branch Audit finalized Completed audit reports of quarterly branch cash audits for first quarter of 2017 and quarters 3 and 4 of 2016 which weren t done because of turnover. Home Mortgage Disclosure Act Audit completed. NCUA Exam findings following up report completed. Currently working on Corporate Visas and BSA/OFAC/CIP. Should be completed by next meeting. Gathering information on employee and volunteer account monitoring and looking at ways to use Verafin and core processor reports to monitor on an ongoing basis. Plan to implement this is the 3 rd quarter of Attending annual ACUIA conference in San Antonio June Attended ACUIA Region 1 meeting in Olympia on April 28 th. Chairman s Report Select board meeting attendees for Thurs, May 18, and Thurs, June 15, meetings. Annual meeting recap. Certification of Destruction was received from CUBallots acknowledging the destruction of last year s election files. Please read and sign your Supervisory Committee Member Agreement documents. III. Unfinished Business None IV. New Business Change July meeting because of July 4 th holiday? V. Education VAP progress VI. Adjournment Next meeting is July 5 th, 2017, in the Clatskanie board room

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28 Summary Standards Common Agenda Items Illustrations Questions