Section 13-03-25-02 - General responsibilities of the supervisory committee1.Basic. The supervisory committee is responsible for ensuring that the board of directors and management of the credit union: a. Meet required financial reporting objectives; and b. Establish practices and procedures sufficient to safeguard members' assets. 2.Specific. To carry out the responsibilities set forth in subsection 1, the supervisory committee must determine whether: a. Internal controls are established and effectively maintained to achieve the credit union's financial reporting objectives which must be sufficient to satisfy the requirements of the supervisory committee audit, verification of members' accounts and its additional responsibilities; b. The credit union's accounting records and financial reports are promptly prepared and accurately reflect operations and results; c. The relevant plans, policies, and control procedures established by the board of directors are properly administered; and d. Policies and control procedures are sufficient to safeguard against error, conflict of interest, self-dealing, and fraud. 3.Mandates. In carrying out the responsibilities set forth in subsections 1 and 2, the supervisory committee must: a. Ensure that the credit union adheres to the measurement and filing requirements for reports filed with the commissioner for the department of financial institutions under North Dakota Century Code section 6-06-08 and with the national credit union administration board under part 741.6 of national credit union administration rules and regulations; b. Perform or obtain a supervisory committee audit, as prescribed in section 13-03-25-04 and under North Dakota Century Code section 6-06-15; c. Verify or cause the verification of members' accounts against the record of the credit union, as prescribed in section 13-03-25-06; and d. Act to avoid imposition of sanctions for failure to comply with the requirements of this chapter, as prescribed in sections 13-03-25-07 and 13-03-25-08. N.D. Admin Code 13-03-25-02
Effective January 1, 2007.General Authority: NDCC 6-01-04
Law Implemented: NDCC 6-06-06