Audit Services

Whether performing a supervisory audit, an opinion audit, or other operational audit, the Credit Union Audit & Consulting Group’s (CUACG) team of CPAs and credit union specific certified auditors will provide value beyond expectations. Audit services include:

  • Supervisory committee audits
  • BSA audits
  • Interim and internal audits
  • ACH audits
  • SAFE Act audit
  • Call Report filing
  • Opinion audits
  • Consumer loan or mortgage lending audits
  • OFAC assessment
  • Verification of member accounts
  • IT audits

Request more information on how CUACG can assist your credit union with its audit needs.

Supervisory Committee Audit

After a thorough audit of the credit union’s records and internal controls, a comprehensive oral and written Supervisory Committee Audit Report is provided by CUACG’s certified examiners. View the areas that are examined in the report.

Bank Secrecy Act - Security Review

CUACG performs extensive testing in all areas related to BSA, conformity with NCUA rules and regulations, anti-money laundering, member ID programs, CTR, and SAR process reviews. The security audit was designed to review a credit union’s compliance with the following:

  • NCUA Rules and Regulations 748 & 749
  • Suspicious Activity Reports (SAR’s)
  • Bank Secrecy Act (BSA)
  • Anti-Money Laundering (AML)
  • Customer Identification Program (CIP)
  • Currency Transaction Reports (CTR’s)
  • OFAC
  • USA Patriot Act (USA Patriot)
  • Branch Security Issues

Interim Audit Services

After a thorough audit of the credit union’s records and internal controls, a comprehensive oral and written interim audit report is provided by the certified examiners at CUACG. The following activities are performed:

  1. Review account activity on the credit union’s employees
  2. Review and test a sample of reconciliations for Federal Reserve, Correspondent Bank, On-Us, and corporate credit union accounts
  3. Review activity on suspense and clearing accounts related to the accounts listed above
  4. Confirm a sample of new loans, new deposit accounts, and/or closed accounts since the last quarterly interim or annual audit
  5. Review for compliance with the credit union’s loan policy a sample of new loans granted since the last quarterly interim or annual audit
  6. Review a selection of file maintenance reports for randomly selected days
  7. Review procedures for handling negative balance accounts, including timeliness of collection or subsequent write-off
  8. Review a sample of loan exception reports, including paid ahead loans, non-amortizing loans, open-end loans with balances greater than established credit limits, closed end loans with balances greater than original loan amount, and/or loans by interest rate
  9. Test classification of delinquent status on a sample of loans classified as delinquent since the last quarterly interim or annual audit, including a review for compliance with the credit union’s collection policy
  10. Review a sample of delinquent loans and document collection efforts relative to the collection policy
  11. Review for compliance with the credit union’s charge-off policy a sample of loans charged-off since the last quarterly interim or annual audit
  12. Review corporate expenses and charge card accounts, including compliance with the credit union’s written policies
  13. Confirm activity on dormant or inactive accounts removed from the dormant report since the last annual or interim audit
  14. Review extension agreements for a sample of extended loans for compliance with the credit union’s established policy on extensions
  15. Review subsidiary records for fixed assets and prepaid expenses, including additions since the last annual or interim audit
  16. Review of credit card reports including line of credit exceptions, credit balances, and status of employees’ personal credit cards
  17. Review investments purchased, called, or sold since the last quarterly interim or annual audit, including compliance with the credit union’s investment policy
  18. Review and test Bank Secrecy Act compliance

ACH Audit

Each credit union is required to comply with the National Automated Clearing House Association (NACHA) rules and conduct an audit of compliance to these rules on an annual basis. Appendix 8 of the NACHA Operating Rules and Guidelines describes the items that should be covered in the audit. The annual audit must be conducted under these Rule Compliance Audit Requirements no later than December 31 of each year. The audit requirement applies to Receiving Financial Depository Institutions (RDFI) and Originating Financial Institutions (ODFI). Failure to provide proof of the audit may be considered a Class 2 rule violation by the National Association.

SAFE Act Audit

Each credit union that originates more than five residential mortgage loans in a 12 month period must register with the Nationwide Mortgage Licensing System and Registry (Registry).

CUACG will conduct an audit to determine:

  1. Whether the financial institution has adopted written policies and procedures designed to assure compliance with the SAFE Act regulation
  2. Compliance with the written policy
  3. Correction of any previously identified weaknesses or violations

Call Report Filing

Credit union quarterly Call Report and Profile information must be submitted by the next to the last Friday of each quarter by 11:59:59 pm, Eastern Daylight Time. CUACG can help credit unions who have not yet filed their quarter call reports avoid penalties. Late penalties will be assessed by the reason for the late filing or inaccuracy and will range from $10 per day to a maximum of $1 million per day or one percent of total assets, whichever is less.

For assistance is filling your credit unions fourth quarter 2015 Call Report and Profile, contact Keith McMurtrie at 866.231.0545, ext. 2133.

Call Report Submission Process

Resources

The NCUA Report January 2015
75 Late Filers in Second Quarter
Second Quarter Call Report Penalties Total $57,750
CU Times: Credit Unions Face Call Report Deadline
The NCUA Report: April 2014
Electronic Filing of Call Reports and Extended Filing Dates for 2014

Opinion Audit

Opinion audits are performed by the firm, Hiram H. Hollifield, CPA

Hiram H. Hollifield, CPA (HHH) has worked with credit unions exclusively since 1990. During this time, his staff has developed a level of experience with credit unions rarely found in other CPA firms. HHH provides high quality auditing, accounting, consulting, and management advisory services for credit unions of all types and sizes.

HHH is located in the Tennessee Credit Union League’s office building in Chattanooga, TN. HHH works with work with the LSCU and LEVERAGE to offer opinion audit service to credit unions throughout Alabama, Florida, and Tennessee.

Hiram meets regularly with representatives of CUNA, TCUL, NCUA, and the Tennessee Department of Financial Institutions to resolve the accounting and auditing implications of issues that not only affect our current credit union clients, but all credit unions in his area of service. The auditing staff  is comprised of accounting professionals with extensive and exclusive credit union auditing experience and understands credit unions from the inside out.

Consumer Loan or Mortgage Lending Audits

CUACG will provide periodic reviews of loan portfolios beyond the normal financial audit procedures.

OFAC Assessment

CUACG will compare membership lists to current OFAC and NS-PLC lists to ensure regular due diligence and adherence to OFAC laws.

Verification of Member Accounts

CUACG will bi-annually obtain independent evidence of the completeness and accuracy of the credit union’s records regarding member share and loan balances on behalf of the supervisory committee.