The Credit Union Webinar Network has asked Jim Higbee, CPA, Partner at Rowles & Company, LLP to host two of their webinars, one on September 7, 2016, and one on October 27, 2016. Both webinars will cover a National Credit Union Administration (NCUA) rule requiring financial literacy for all federal credit union directors; however, the webinars will cover different aspects of both the rule itself and how directors can meet the current requirements.
The NCUA requires directors of federal credit unions to have at least a working familiarity with basic accounting and finance practices, including the ability to read and understand the credit union’s balance sheet and income statement. This rule is designed to ensure that directors cannot just rubber stamp management’s recommendations. It’s necessary that directors comprehend the monthly financial reports and operations risk areas and are able to independently evaluate proposals and financial data provided by management. However, this doesn’t mean that directors need to become financial experts.
Wednesday, September 7, 2016
The first webinar will be held on Wednesday, September 7, 2016, from 3:00 to 4:30 p.m. Eastern Time. Titled Financial Literacy Part 1: Understanding the NCUA Regulation & the 7 Critical Risk Areas Directors Should Track, this webinar will review Letter to Federal Credit Unions No. 11-FCU-02, which establishes the financial literacy requirement, and provide a detailed explanation of the rule, its six key provisions, and the seven risk areas each director should be familiar with.
Thursday, October 27, 2016
The second webinar will be held on Thursday, October 27, 2016, from 3:00 to 4:30 p.m. Eastern Time. Titled Financial Literacy Part 2: Using Financial Statements & Key Ratios to Understand & Monitor Your Credit Union, this webinar will convey how to read and understand the credit union’s balance sheet and income statement. Jim will also discuss using ratios and trend analysis to monitor the progress of the credit union.
For more information on NCUA requirements, please contact Jim Higbee at 443-725-5395.