BOARD OF DIRECTORS’ RESPONSIBILITIES

010 BOARD OF DIRECTORS’ RESPONSIBILITIES. 010.01 The condition of a credit union depends largely upon the quality of leadership supplied by the Directors. This means all Directors must be kept informed of the affairs of the credit union and give direction. The proper supervision of the affairs of a credit union requires that Directors keep themselves well informed. Accordingly, the Board of Directors may not delegate responsibility for its duties, but may assign the performance thereof. Any areas not fully covered by the accountant's or accounting firm's report are to be performed by the Board itself. Although the Board as a group may not be qualified to perform the more technical aspects of a credit union audit, it should be possible for the Board to satisfy itself as to the following: 010.01A The soundness and authenticity of the credit union's loans and its loan policies; 010.01B Adherence to investment policies; 010.01C The adequacy of insurance and surety coverage; and 010.01D The legitimacy and correctness of income, expenses, and dividends. 010.02 Copies of the audit report prepared by an independent accountant or accounting firms should be carefully reviewed and there should be a thorough understanding of the significance of all the details included therein.