(1)The supervisory committee of a credit union shall:
(a)Meet at least quarterly;
(b)Keep fully informed as to the financial condition of the credit union and the decisions of the credit union’s board;
(c)Perform or arrange for an annual audit of the credit union’s financial statements and provide any related findings and recommendations to the board;
(d)Make or cause to be made a verification of member accounts as follows:
(i)At least annually by statistical sampling, with the sampling method to provide for:
1. Random selection;
2. A sample that is representative of the population from which it was selected;
3. An equal chance of selecting each dollar in the population;
4. Sufficient accounts in both number and scope on which to base conclusions concerning management’s financial rep
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(1) The supervisory committee of a credit union shall:
(a) Meet at least quarterly;
(b) Keep fully informed as to the financial condition of the credit union and the decisions of the credit union’s board;
(c) Perform or arrange for an annual audit of the credit union’s financial statements and provide any related findings and recommendations to the board;
(d) Make or cause to be made a verification of member accounts as follows:
(i) At least annually by statistical sampling, with the sampling method to provide for:
1. Random selection;
2. A sample that is representative of the population from which it was selected;
3. An equal chance of selecting each dollar in the population;
4. Sufficient accounts in both number and scope on which to base conclusions concerning management’s financial reporting objectives; and
5. Additional procedures to be performed if evidence provided by confirmation alone is not sufficient; or
(ii) At least annually by nonstatistical sampling conducted by an independent person licensed as an accountant in the state of Idaho, using nonstatistical sampling methods consistent with generally accepted auditing standards if such methods provide for:
1. Sufficient accounts in both number and scope on which to base conclusions concerning management’s financial reporting objectives to provide assurance that the general ledger accounts are fairly stated in relation to the financial statements taken as a whole;
2. Additional procedures to be performed by the accountant if evidence provided by confirmations alone is not sufficient; and
3. Documentation of the sampling procedures used and of their consistency with generally accepted auditing standards, to be provided to the department upon request; or
(iii) At least every two (2) years by controlled verification of all member accounts;
(e) Review or arrange to have reviewed annually the effectiveness of the credit union’s internal controls;
(f) Report its findings and recommendations to the board;
(g) Provide an annual written report to members at each annual membership meeting on the credit union’s financial condition;
(h) Perform or arrange for additional audits as requested by the board or management or as deemed necessary by the supervisory committee and provide any related findings and recommendations to management or the board as deemed appropriate by the supervisory committee;
(i) Monitor the implementation of management responses to material adverse findings in audits and regulatory examinations;
(j) Implement a process for the supervisory committee to receive and respond to whistleblower complaints; and
(k) Perform any additional duties as specified by the board or in the credit union’s bylaws.
(2) The supervisory committee may in its sole discretion retain, at the credit union’s expense, independent counsel or other professional advisors or consultants as necessary to perform the duties under this section.