What is in Your

Supervisory/Audit

Committee PacketASSOCIATION OF CREDIT UNION INTERNAL AUDITORS MEETING

APRIL 28, 2017

Overview

Standards for Reporting to Audit Committees &

Senior Management

Common Agenda Items from Participants

Illustrations

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.

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

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.

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

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.

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

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

SUPERVISORY COMMITTEE MEETING – AGENDA

May 3, 2017 12:00 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 email 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 20th.

▪ 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 3rd quarter of 2017.

• Attending annual ACUIA conference in San Antonio June 19-23.

• Attended ACUIA Region 1 meeting in Olympia on April 28th.

• 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 4th holiday? V. Education

• VAP progress VI. Adjournment

Next meeting is July 5th, 2017, in the Clatskanie board room

Summary

Standards

Common Agenda Items

Illustrations

Questions