Accountable to: Membership

Responsibility Summary:

To set policy, plan the Credit Union’s course, make sure the Credit Union maintains its sound financial condition, keep communication open to educate members on services, review the CEO’s progress in achieving goals and objectives, and report to the members at the annual meeting.

Duties and Responsibilities:

• The Board of Directors is responsible for the general direction and control of the credit union. The Board will delegate operational functions to management but not the responsibility for the credit union’s direction.

• Participate in annual financial literacy training. Training requirements may change annually to remain consistent with the size and complexity of UARK and in accordance with NCUA Regulations (Section 701.4). This training may be offered in-person or may be assigned webinars in an online class.

• Become familiar with laws and regulations governing credit union operations and make sure the credit union adheres to such.

• Help develop objectives and goals for the credit union, including strategic plans.

• Set minimum loan and deposit balances and approve interest rate changes on both dividends and loans.

• Review all policies annually and revise when deemed necessary.

• Make sure products and services are developed as required by industry standards and membership demand. Including evaluating the cost benefit of each service.

• Define the scope of the Chief Executive Officer job duties.

• Attend monthly board meetings, educational opportunities and other credit union functions necessary.

• Have access to the internet.

  NCUA Mandatory Time Commitments:

• Attend monthly board meetings (in person or via zoom)

• Attend annual meeting

• Attend strategic planning session

• Financial training and BSA training (approximately three hours of annual training)

• Attend other meetings as needed

  Additional Information:

  Upon applying for a position on the UARK Board of Directors, the applicant will be required to provide personal identity information and authorize UARK to obtain a criminal background check, a bondability check and consumer credit report. The acceptance of the application and/or nomination will partially depend on the information contained in these reports.

  Once elected, a director may be dismissed from the board if negative information is received that pertains to any of these reports (i.e. no longer bondable by UARK’s bonding company due to fraud committed in any aspect). Grounds for dismissal include, but are not limited to: committing a criminal act, failure to follow the code of ethics, failure to act in the best interest of the credit union, failure to keep a good credit standing, causing UARK a financial loss and failure to attend regularly scheduled meetings where your participation is required.

  Management is always willing to assist in the training and development of newly elected/ appointed board and committee members to better enable performance in an official capacity.

  Questions pertaining to the role and responsibilities of a credit union director, should be directed to any current director or the Chief Executive Officer.

The Supervisory Committee is responsible for ensuring that the Board of Directors and management of the credit union adhere to practices and procedures that properly safeguard members’ assets. In addition to testing internal controls, the Committee is responsible for retaining a licensed, independent audit firm to perform an annual financial statement audit, a periodic IT member information security audit, annual ACH audit and annual BSA audit. Generally, these will require separate firms that specialize in each of these areas. As an independent body, the Supervisory Committee also investigates member complaints filed with the NCUA.

Duties/Responsibilities:

• Perform the annual financial statement audit (including verification of members’ accounts) through the retention of a licensed, independent audit firm.

• Submit audit reports and/or recommendations to the Board as audits are performed or on a monthly basis at monthly board meetings.

• Provide a summary report describing the safety condition of the credit union to members at annual meetings.

• Suspend directors or other committee members for cause; ensuring that the credit union’s assets are protected from unauthorized or illegal acts at all times.

• Call special membership meetings for cause.

• Maintain committee records on premises of credit union, making them accessible to the NCUA & third-party audit firms.

• 􀁸The Committee may make recommendations related specifically to internal controls to the Board of Directors; however, the Committee does not have authority to make any policies or dictate any procedures to staff.

  Knowledge and Skills:

  •Each Supervisory Committee Member should have the ability to understand and evaluate policies and regulations pertaining to internal controls for credit unions and the safeguarding of member assets.

  • Each Committee Member should be willing to further educate themselves (through credit union-sponsored training) about the credit union industry and laws/regulations applicable to credit union safety and soundness. Training materials are available on-line.

  • Each Committee Member should be computer literate and be willing to use the credit union’s secure email system to transfer information. Committee members, like all UARK volunteers and staff, are prohibited from transferring proprietary or confidential information via personal email. Log-In and use of a secure document sharing system will also be required (i.e. board packets, etc.).

  Time Commitments:

• Quarterly – Supervisory Committee audits as scheduled by the Supervisory Committee Chairperson which may include: surprise cash counts of cash (teller drawers and safe) and review of investments for accuracy of reported information. Investments should be reviewed by random selection (of at least 25% of the portfolio) once annually. All Supervisory audits are at the discretion of the Committee.

• Monthly - Board meetings. At least one Supervisory Committee member (out of the three) should attend the monthly board meeting for training and observation purposes only (rotation is encouraged if the same member cannot or does not desire to attend).

Annually – UARK Annual Business Meeting. This meeting is held once a year for the election of directors. Time commitment is one to two hours. The Supervisory Committee Chairperson should be prepared to submit a written statement of the credit union’s safety condition a few weeks in advance of the annual business meeting so that it can be included in the reports to members.

• Bi-annually - Examiners/auditors exit briefing. This meeting is a post-audit report given by the NUCA examiner or CPA auditor after the completion of exam/audit. This generally occurs twice per year. The time commitment ranges from one -two hours. The Supervisory Chairman’s presence may be required if there are any significant findings.

  Additional Information:

Upon applying for an official position with UARK Federal Credit Union, an applicant will be asked to provide personal identity information and authorize UARK to obtain a criminal background check and consumer credit report. The acceptance of an application and/or appointment will partially depend on the information contained in these reports.

Once appointed, a Supervisory Committee member may be dismissed if negative information is received that pertains to either of these reports. Grounds for dismissal include, but are not limited to: committing a criminal act, failure to follow the Credit Union’s Governance and Code of Ethics (attached to this document), failure to act in the best interest of the credit union, failure to keep a good credit standing or failure to perform duties or attend regularly scheduled meetings as required.

Upon appointment to the UARK Supervisory Committee, a member will be given instructions for annual required training as outlined by Section 701.4 of the NCUA Regulations.

Should you have any questions pertaining to the role and responsibilities of the Supervisory Committee, please contact the Chief Executive Officer and/or the Board Chairperson.

A Member’s appointment by the Board of Directors carries with it a heavy responsibility to each credit union member for the safety and soundness of the credit union.  Each Member shall:

1. Abide by the Attendance Policy. Monthly board meetings with dinner included take place on the third Thursday of each month at 5:00pm, typically lasting 1.5-2 hours. May also attend via Zoom.

2. Study the meeting information packet made available prior to the meeting and be prepared to present opinions and comments on the items it contains.

3. Become knowledgeable of the financial position and activities of the credit union to ensure its fiscal health.  It is the responsibility of each member to be aware of the credit union’s financial condition and periodic results of operations.

4. Regularly seek out information needed to make sound decisions about the Member’s responsibilities.

5. Become familiar with laws and regulations governing credit union operations.

6. Complete all training requirements within given time frame.