Financial Literacy For Volunteers
Regulations from NCUA released last month are now putting more emphasis on a board of directors armed with enhanced understanding of finance and accounting concepts:
Part 701.4 (3)
Each Federal credit union director has the duty to… At the time of election or appointment, or within a reasonable time thereafter, not to exceed six months, have at least a working familiarity with basic finance and accounting practices, including the ability to read and understand the Federal credit union’s balance sheet and income statement and to ask, as appropriate, substantive questions of management and the internal and external auditors….
In late December, NCUA established the following timeline:
Directors elected or appointed on or before January 27, 2011, including those directors serving prior to NCUA finalization of the rule, must be in compliance with the financial literacy requirements by July 27, 2011. Directors elected or appointed after January 27, 2011 must satisfy the financial literacy requirements within six months following seating.
While concerns have been raised regarding the vague requirements, NCUA has remained firm that education should be commensurate with the complexity of a credit union’s structure.
As you contemplate how best to meet the new requirements, we’re interested in understanding how credit unions view their current board level of education and plans in providing additional education. Please take a moment to complete the following brief, 3-question survey. Thanks in advance for your participation!
