Submitted by sevans on Fri, 01/02/2015 - 4:35pm

Examiners’ Objectives

  • Review income and expense trends
  • Analyze budget projections and practices
  • Evaluate due diligence by management of services and products affecting the credit union’s profitability (e.g., cost-benefit analysis)
  • Determine adequacy of policies and practices addressing income and expenses
  • Compare actual performance to the income and expense budget and capitalization goals
  • Determine sufficiency of earnings to cover operating expenses, dividends, and necessary reserve transfers
  • Determine adequacy of earnings to increase the net worth ratio (if necessary) or to maintain the net worth ratio at or above established benchmarks
  • Ensure compliance with applicable laws, regulations, accounting practices, and policy statements when recording income and expense items
  • Determine that management has instituted prompt correction of deficiencies or exceptions
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