Presentation on theme: "CU Staff Training Teller Training Lending Training Collection Training"— Presentation transcript:
1CU Staff Training Teller Training Lending Training Collection Training IT TrainingAnd Much More
2CU Management Training Establishing Internal ControlEmployee RetentionUnderstanding CU FinancialsSexual HarassmentAsset Liability ManagementLending & Delinquency ControlAnd Much More
3CU Volunteer Training Board Training Strategic Planning Board TrainingStrategic PlanningCredit Committee TrainingSupervisory Committee TrainingAnd Much More
4Other ICUT Programs Laugh Your Way To The CU Laugh Your Way To The CUPre-Drafted Newsletter ArticlesArchived On-Line ClassesPotential SEG ShowAnd Much More
5cuSchool.com Join Today Annual Membership Per CU $199.95 cuSchool.comAnnual Membership Per CU$199.95Visit
6Don’t Miss Our Next Class Do’s and Don’ts of Being a CU TellerDate: Tuesday March 16, 2010Time: :30PM-4:45PM Eastern Standard TimeUnderstanding Self-Employed TaxesFOR MAKING CREDIT DECISIONSDate: Tuesday April 13, 2010
8Supervisory Committee Duties & Responsibilities Presented by ICUT ServicesWill begin in a few minutes………….
9Housecleaning Items Detailed Outline Hold Verbal Questions Detailed OutlineHold Verbal QuestionsUse the Chat FeaturePollingPowerPointComplete Class SurveySend Me an ???Door Prize Winner
10Today’s Agenda Define Supervisory Committee Qualifications & Power Of CommitteeDuties & ResponsibilitiesInternal Review ProgramBest Practices for CUsInternet Scams, Fraud, Identity TheftHow To Manage The CommitteeOpen Mic
11What Is The Supervisory Committee? The Guard Dog or “Watchful Eye”The Audit Committee“The committee that helps minimize the possibility of the credit union incurring any kind of loss.”
12How Does One Get On This Committee? Appointed by the Board Of Directors1 may serve as director1,2,or 3 year terms
13Who Can Serve? Qualifications Member In Good Standing (Shares & Loans) AccountingNon Accounting BackgroundsActive & Cooperative ParticipantCommitment To CU
14Structure Of Committee Committee Size (3-5)Positions On CommitteeBoard Representation
15What Power Does Committee Have? Access To All RecordsCan Call Special Membership MeetingsRemoval Of Officers, Directors & CC Members
22Surprise Cash Counts Cash Count Audit Review As of_____________ Drawer #________COINS: CHECKS:Pennies ________ ______________ ________Nickels ________ ______________ ________Dimes ________ ______________ ________Quarters ________ ______________ ________Halves ________ ______________ ________Dollars ________ ______________ ________ CURRENCY:Ones ________ ______________ ________Twos ________ ______________ ________Fives ________ ______________ ________Tens ________ ______________ ________Twenties ________ ______________ ________Fifties ________ ______________ ________Hundreds ________ _____________ ________ Subtotal $ ________ Subtotal $________Per Control $ ________ Per Control $________Difference $ ________ Difference $________ I, ________________, owner of this drawer, certify that a member of the supervisory committee has counted all cash and checks in my possession as of ____________________. Signed___________________ Time & Date Name of Teller
23Duties & Responsibilities Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
24Duties & Responsibilities Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
25Duties & Responsibilities Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
26Duties & Responsibilities Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
27Duties & Responsibilities Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
28Duties & Responsibilities Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
29Duties & Responsibilities Review Loan FilesEvaluate Internal ControlAccount VerificationMonitor BoardReview Bank ReconcilementsWork With Regulators & Follow-upConfirm Account Closures
30Confirm Closed Accounts Dear Member:As a valued member that planned to closed your account at the credit union we hope that you had a positive experience that you found our services of value. In an effort to improve our services, we would appreciate it if you would take a few seconds to respond to the survey shown below:How long were you a member? ___________________________Why did you close your account? __________________________Would you ever join again? _____________________________Did you know our policy is “once a member, always a member”?_____Sincerely,Supervisory Committee
31Duties & Responsibilities Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
32Duties & Responsibilities Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
33Confirm Collection Accounts Young & Young Law Firm100 Best WayNocandu, Nebraska 08066Dear Mr. Young:On behalf of the supervisory committee for the ABC Federal Credit Union, I would like to confirm what credit union accounts have been forwarded to you for collection during the past twelve months. As part of our confirmation we would like to know the following information:ACCOUNT NAME DATE RECEIVED ORIGINAL LOAN BALANCE CURRENT BALANCE STATUSAgain, we only need this information for accounts that you received between July 1, 20XX and the date of this letter.Please forward all responses to this request to:John Doec/o ABC FCU12 Wayward RoadNebraska City, Nebraska 08065
34Duties & Responsibilities Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
35Confirm Death ClaimsCUNA Mutual Insurance P.O. Box Madison, WI ATTN: Death ClaimsDear Claims Department:On behalf of the supervisory committee for the ABC Federal Credit Union, I would like to confirm what death claims have been presented to you for the credit union during the past twelve months. As part of our confirmation we would like to know the following information:CU EMPLOYEE SUBMITTING CLAIMMEMBER ACCOUNT NAMEAMOUNT OF CLAIMDATE CLAIM WAS SUBMITTEDSTATUSAgain, we only need this information for claims that you received between July 1, 20XX and the date of this letter.Please forward all responses to this request to:John Doe c/o ABC FCU 12 Wayward Road Nebraska City, Nebraska 08065
36Duties & Responsibilities Plan Annual Audit & Follow-upReview Returned MailConfirm Collection AccountsConfirm Death ClaimsMaintain Visibility
37Internal Review Program The Supervisory Committee is the audit committee for the ABC Federal Credit Union. In that capacity, the committee will engage in regular activities that are intended to monitor the overall operation of the credit union. The structure of this committee will be compliant with the Federal Credit Union Act and the bylaws of the ABC Federal Credit Union. Accordingly, the committee will be responsible for the following:
38Internal Review Program Ø Report all committee activities to the board of directorsØ Maintain minutes for all committee meetings.Ø Annually review the internal controlsØ Annually follow-up with Supervisory Committee audit findingsØ Annually follow-up with NCUA examination findingsØ Annually review the credit union’s strategic business plan.Ø Quarterly perform surprise cash counts.Ø Quarterly perform verification of deposits in transitØ Quarterly perform a review of teller activity.Ø Quarterly review negative share report.Ø Quarterly review a sample of loan files for compliance.> Monthly to monitor board activity
39Identity Theft (Ijacking) It is the use of another person’s identification, credit, or other data that involves fraud or deception, and economic gain is realized in the name of the victim. Unlike fingerprints, that are unique to each individual, personal data, like social security numbers, bank accounts or credit card numbers, telephone calling card numbers and other valuable identifying data can be used.
40Identity Theft On The Rise Recent reports put the numbers of ID Theft at 9.9 million per year… Insurance Journal January 20105% of the adult population in AmericaCost $50 billion annually.1 out of 4 Americans fall victim to ID Theft.1000 cases of ID Theft occur each day.
4110 Most Risky Cities for Ijacking 1) San Francisco 2) Seattle 3) Denver 4) San Jose 5) San Diego 6) Atlanta 7) Salt Lake City 8) Las Vegas 9) Sacramento 10) PhoenixSperling’s Best Places
4210 Least Risky Cities for Ijacking 41) Rochester 42) Providence 43) Cincinnati 44) Cleveland 45) Virginia Beach 46) New Orleans 47) Birmingham 48) Louisville 49) Buffalo 50) PittsburghSperling’s Best Places
43Justices Limit Use of Identity Theft Law The Supreme Court on Monday rejected a favorite tool of prosecutors in immigration cases, ruling unanimously that a federal identity-theft law may not be used against many illegal workers who used false Social Security numbers to get jobs. …..NY Times May 4, 2009
44The Law Identity Theft and Assumption Deterrence Act of 1998 Gramm-Leach-Bliley Act (GLBA) requires that financial institutions have policies, procedures, and controls in place to prevent and detect fraudulent access to such information.Red Flag Rule
45Best Practices For CUs Protect your member information. Verify new accounts with a Member Identification ProgramVerify and review address changes. Confirm old addresses or a simple callback to phone numbers on file.Carefully review loan documents and compare social security numbers, addresses and employer names on application and the credit report.Conduct a “System Penetration Test”.
46Best Practices For CUsTrain all staff on security and privacy protection.Policies should include steps to help victimized members.Conduct criminal and civil background checks before hiring employees.Don’t use SS# as employee ID numbers on paychecks, time cards, staff badges, etc.Restrict system access to sensitive personal data to only those who need the information.
47Best Practices For CUsEnsure proper disposal of sensitive information.Inform your members about business identity theft such as vandalized or mimicked Web sites.Educate your members that financial institutions do not contact members to request or verify security information.Consider software/hardware that regularly monitors the database to detect unusual financial patterns and activity.
49Internet Scams & Fraud Phishing/Pharming – Educate your members Age-targeted Scams – Youths and seniorsCounterfeiting – Currency & DraftsRecords/Systems Hijacking – Zombie Programs- designed to steal data, damage web sites, slow response time
50Useful Resources http://www.IdentityTheft.org http://www.ncua.gov NCUA Guide for Supervisory CommitteesNCUA Federal Credit Union BylawsNCUA Rules & Regulations
51Managing The Committee Work As Committee & IndividuallyDelegate To StaffOutsourcePlan
52Planning Use The Entire Year Don’t Try To Complete Everything At Once Have A Schedule (less than 30 min per month)Let’s Look At A Sample Year
53Month 1 Appoint committee members to positions Introduce Training ResourcesSchedule Activity for the year
54Month 2 Cash Count Training Elect one designee to review Accounting Checklist with management.
55Month 3 Report on accounting checklist Elect one to confirm collection accountsElect one to confirm death claims
56Month 4 Report on collection accounts Report on death claims Elect one to coordinate collection of returned mailDo surprise cash count(s)
57Month 5 Report on plans to collect returned mail Report on cash count(s)Meet with audit firm to discuss timing & scope
58Month 6 Report on audit plans Attend or coordinate a “HOW TO APPROVE A LOAN” training program.Elect one to review minutes
59Month 7 Report on training status Report on board minutes (or activity)Committee review of returned mail
60Month 8Have management or audit firm train committee on bank reconcilements