Strategic Risk Management Policy Checklist Tab

Transcription

1 Desk & On Site Review Part A Mandatory By Laws Has the credit union passed the following by laws prescribed for the purpose of subsection 105 (2) of the Act as matters required to be governed by the by laws of every credit union, to the extent the matters are not provided for by the Act or the regulations or set out in the articles of the credit union? O. Reg. 237/09, s. 25 Admission to membership in the credit union and any fees for admission. Withdrawal, suspension or expulsion from membership in the credit union. The allotment of shares, including the maximum number that may be allotted to a member, the payment for shares, the redemption or transfer of shares and the recording of information about these matters. The procedure for deciding how to distribute the profits of the credit union. If the credit union is a member of a league and assesses its own members to pay for the cost of membership in the league, the procedure for assessing credit union members annual assessment to be paid to the league. The language or languages in which the credit union will carry on business. Mandatory procedures governing the operation of the credit union. The types of loans that the credit union is authorized to make. The time, place and notice to be given for a members meeting, the record date for determining who is entitled to vote at such a meeting, and the quorum for such a meeting. The time, place and notice to be given for a board meeting. The time for, and manner of, electing directors and committee members. The term of office of directors and of committee members, and the procedure for setting their remuneration. The appointment and removal of officers and employees of the credit union, any security that they are required to give the credit union and the procedures for establishing their remuneration. Page 1 of 7

2 Part B Directors Do all directors of the credit union meet the following qualifications of Section 91 of the Act? He or she is a member of the credit union He or she is at least eighteen years of age He or she is a Canadian citizen or a person lawfully admitted to Canada for permanent residency who is ordinarily resident in Canada Yes No Na Are any individuals disqualified as directors of the credit union in accordance with Section 92 (1) of the Act? Choose an item. If YES, please explain: (If YES, he or she is not disqualified solely because he or she provides, without remuneration, services to the credit union or league that are ordinarily provided by an employee. S. 92 (2) of the Act) If bullet 7 applies, choose one of the following: (S. 92 (3) of the Act) Choose an Item. If YES applies above, Has a resolution been passed to declare the director s position vacant? If NO, above, please explain: No directors have resigned from the credit union in the middle of their term of office? If No, please explain the circumstances around the resignation? Part C Board and Committee Conduct Does the Board conduct a self assessment annually? (Obtain a copy for records) Is there a succession plan for the board? Page 2 of 7

3 The board has not delegated any responsibility outlined in S. 109(2) of the Act? 1. Filling vacancies on the board or the audit committee. 2. Appointing or removing an officer or director of the credit union. 3. Appointing signing officers. 4. Adopting, amending or repealing by laws. 5. Issuing securities except in the manner and on the terms authorized by the board. 6. Authorizing the payment of a commission upon the sale of shares. 7. Purchasing, redeeming or otherwise acquiring shares issued by the credit union. 8. Approving the financial statements. 9. Authorizing the purchase, sale, lease, exchange or other disposition of material assets. 10. Declaring dividends or patronage returns. 11. Expelling a member. Do all committees conduct their responsibilities as established by the board and outlined in the terms of reference? Is there a process for the appointment of the CEO? Does the board evaluate the performance of the CEO at least annually against established criteria? Is there a succession plan for the senior management? Does the credit union have an ERM program? Do all directors participate in CUDA workshops or any participation in training that may be required by the credit union? Does any board, a committee of the board or a director directly manage, or be involved in, the day to day activities of the credit union? S. 104(2) Has the board established standards of business conduct and ethical behavior? (i.e. code of conduct, conflict of interest disclosure, ethical behavior) Page 3 of 7

4 Part D Audit Committee Conduct Does the Audit Committee meet the following requirements of the Act: Strategic Risk Management Policy S. 125 (1) & (2) Established audit committee with at least 3 members composed of members appointed by the board from among the directors S. 125 (4) Satisfy such training requirements or qualifications as established by the credit union S. 125 (5) & (7) Meet a minimum of quarterly and keep minutes of each meeting S. 125 (9) Present results of each meeting to the board within 60 days or by the next board meeting, whichever comes first Does the audit committee ensure that an effective and robust internal audit function is established and regularly reviews its work plans, findings, and recommendations? Do the Audit Committee and all Directors ensure that there is appropriate follow up on outstanding issues identified by the reports? Has the audit committee developed a work plan which addresses, at a minimum, all duties outlined in the Act and the Regulations? The committee adequately plans for and establishes the scope of the external audit engagement and ensures that external auditors have the necessary skills and background to conduct the audit engagement? The annual report to the members required under S. 125 (9) of the Act contains the information required in S. 27 (2) of the Regulations? 1. The number of meetings held by the committee during the year. 2. A summary of the significant activities undertaken by the committee during the year and a description of the actual and expected results. 3. Confirmation that the committee is conducting its affairs in accordance with the Act and the regulations. 4. Information on any failure of the credit union to implement or complete the implementation of any significant recommendation previously made by the audit committee. 5. Details of any other matter that is required to be disclosed pursuant to the Act or the regulations. Page 4 of 7

5 Part E Business Planning Does the credit union have an annual business plan including financial targets and supportive action plans? Does the plan address major concerns (i.e. layoffs, losses)? Is there, at minimum, an operational budget? Is there evidence that the business objectives are not consistent with cooperative principles? Part F Board Reports Does the board regularly monitor actual operating and financial results in relation to the business strategy and business plans? Does the board evaluate material operating and financial variances of actual results to plan? Does management prepare and submit reports to the board that: Provide sufficient and appropriate information to help determine whether the institution is adhering to its risk management policies? Confirm that the institution is in compliance with legislation and by laws? Identify how any material weaknesses or deficiencies in risk management practices are being addressed? Compare actual performance and business risk measurements relative to plan and previous year to date performance? Identify any material operating and financial variances of actual results to plan? Outline initiatives and plans to address any material weaknesses? Do all board reports contain the following: Signed minutes of the meeting Financial Statements Liquidity Management Report Membership Report Page 5 of 7

6 Interest Rate Risk Report (Results of monthly shock test) Credit Report Part G Capital Adequacy Has the credit union established capital policies for the credit union consistent with the regulations governing adequate capital and does the credit union adhere to those policies? The Act s. 85 (1) Does the capital policy of the credit union consist of policies, standards and procedures that a reasonable and prudent person would apply in order to ensure the financial soundness of the credit union avoid undue risk of loss and obtain a reasonable return? The Act s. 85 (2) Is the capital policy of the credit union subject to the approval of the board and does the board review the policies at least once each year? The Act s. 85 (3) Does the capital policy outline a minimum board level? Does the actual capital level meet policy? Does the credit union provide a report in a form approved by the Corporation concerning its compliance with section 84 to such persons and at such times as required by the Corporation? The Act s. 89 Part H Share Structure Does the credit union maintain a separate stated capital account for each class and series of shares it issues? The Act S. 68 (1) The credit union has not issued any classes of shares other than membership shares and patronage shares. If No complete the following questions. Did the credit union obtain approval to amend its articles of association? Has the credit union received a receipt of offering from the Superintendent? Has the credit union sold any shares to a non member of the credit union? Page 6 of 7

7 Part I Management Conduct Does the credit union file a Fidelity Bond Application (FBA) with Central 1 for every individual that is hired whether part time, temporary, contract, volunteer or permanent, and any directors who are involved in the day to day operations of the credit union? Is there an adequate amount of robbery, burglary, ATM, CRU insurance in place? Is there a Code of Conduct Policy (which encompasses conflict of interest, confidentiality and ethical conduct policies)? Are all senior managers required to take vacations so that one employee s control over any task is not continuous for long periods? (Verify Dates) Does the credit union cross train or rotate employees duties? Are all employees adequately screened? i.e. reference checks, criminal background cheques, credit bureaus (Check recent hire personnel file) Does the credit union have a discreet disclosure process, whereby employees many draw management and board attention to evidence of dishonesty, etc.? Page 7 of 7