The Federal Credit Union January-February 2014 - (Page 52)

COMPLIANCE CENTRAL Efforts to Modernize NCUA's Examination Report By JiJi Bahhur, Director of Regulatory Compliance A s part of its Regulatory Modernization Initiative, the National Credit Union Administration (NCUA) issued Letter to Credit Unions 13-CU-09 to streamline the examination report and clarify for federally insured credit unions the difference between a Document of Resolution (DOR) and an Examiner's Findings Report. The letter provides an explanation of the improvements that will be made to the examination report and changes that are being made to the examination process. Changes to NCUA's Examination Report First, the letter clarifies that the DOR and the Examiner's Findings Report will now be stand-alone documents under NCUA's modernization attempts. The letter further delineates or defines each document's purpose to ensure that credit union officials can clearly differentiate between a major and a minor problem. The ability to make this differentiation is important because it serves as an aid to prioritizing corrective actions. The most critical and material concerns identified in an exam will be included in a DOR. More specifically, the letter defines a DOR as including: "a description of material problems, along with the agreed-upon corrective actions. Ideally, the DOR will include corrective action plans developed cooperatively between examiners and credit union officials for 52 The Letter to Credit Unions 13-CU-09 clarifies that the DOR and the Examiner's Findings Report will now be stand-alone documents under NCUA's modernization attempts. concerns of the highest priority. Failure to correct problems documented in the DOR may result in enforcement actions and will impact CAMEL and risk ratings." This is in contrast to the Examiner's Findings Report that will include problems the credit union must address within the normal course of business but that are of lesser urgency. With respect to Examiner's Findings, the letter provides that: "management may use its own discretion to determine the time frame and approach for correcting these problems; however, we expect management to address concerns documented in the Examiner's Findings within a reasonable time frame. Unresolved Examiner's Findings will impact CAMEL and risk ratings." This is also where an examiner often includes details of the problems that were identified and what corrective actions must be taken. Under the modernized report, an examiner will reserve the Examination Overview for the credit union's CAMEL and risk ratings, a high-level discussion of the credit union's risk profile and progress in correcting prior concerns. Document of Resolution. In the DOR, examiners currently document the corrective action plans with which the credit unions agree. In the new format, examiners will include detailed support for problems meeting the DOR definition and the appropriate corrective actions for these problems. Second, the letter provides a table highlighting the improvements that will be made to the current examination report format. To summarize: DOR Status Report. Currently, a DOR's status is documented in several places, but the new streamlining efforts will require examiners to provide a new document - the DOR Status Report - which will summarize the status of both prior and outstanding DORs. Examination Overview. Currently, the Examination Overview is the place where the examiner documents the credit union's CAMEL and risk ratings. Examiner's Findings. Currently, examiners document problems, including DORlevel issues, in the Examiner's Findings. Under the new changes, problems THE FEDERAL CREDIT UNION JANUARY-FEBRUARY 2014

Table of Contents for the Digital Edition of The Federal Credit Union January-February 2014

Voices & Opinions
From the Chair
Inside NAFCU
Business Talk
2014 Economic Outlook: Slow Speed Ahead
Waging the War Against Cyberthieves
Meet Rick Metsger
2014 NAFCU Vendor Directory
Getting to Know...
Compliance Central
Inside NAFCU Services
From the President's Desk

The Federal Credit Union January-February 2014

https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovemberDecember2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_SeptOct2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JulAug2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MayJun2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_MarApr2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_JanFeb2020
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_NovDec2019
https://www.nxtbook.com/ygsreprints/NAFCU/G109023_nafcu_septoct2019
https://www.nxtbook.com/ygsreprints/NAFCU/G106941_nafcu_julaug2019
https://www.nxtbook.com/ygsreprints/NAFCU/G105388_nafcu_mayjun2019
https://www.nxtbook.com/ygsreprints/NAFCU/G103030_nafcu_marapr2019
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2019
https://www.nxtbook.com/ygsreprints/NAFCU/G100235_nafcu_novdec2018
https://www.nxtbook.com/ygsreprints/NAFCU/G98517_nafcu_septoct2018
https://www.nxtbook.com/ygsreprints/NAFCU/G96479_nafcu_julaug2018
https://www.nxtbook.com/ygsreprints/NAFCU/G93390_nafcu_mayjune2018
https://www.nxtbook.com/ygsreprints/NAFCU/G90161_nafcu_marapr2018
https://www.nxtbook.com/ygsreprints/NAFCU/G88665_nafcu_janfeb2018
https://www.nxtbook.com/ygsreprints/NAFCU/G83806_nafcu_novdec2017
https://www.nxtbook.com/ygsreprints/NAFCU/G80296_nafcu_septoct2017
https://www.nxtbook.com/ygsreprints/NAFCU/G79086_nafcu_julyaugust2017
https://www.nxtbook.com/ygsreprints/NAFCU/G75911_nafcu_mayjune2017
https://www.nxtbook.com/ygsreprints/NAFCU/G73247_nafcu_marapr2017
https://www.nxtbook.com/ygsreprints/NAFCU/G71923_nafcu_janfeb2017
https://www.nxtbook.com/ygsreprints/NAFCU/G69249_nafcu_novdec2016
https://www.nxtbook.com/ygsreprints/NAFCU/nafcu_septoct2016
https://www.nxtbook.com/ygsreprints/NAFCU/g63853_nafcu_julaug2016
https://www.nxtbook.com/ygsreprints/NAFCU/g61005_nafcu_mayjun2016
https://www.nxtbook.com/ygsreprints/NAFCU/g58935_nafcu_marapr2016
https://www.nxtbook.com/ygsreprints/NAFCU/g56716_nafcu_janfeb2016
https://www.nxtbook.com/ygsreprints/NAFCU/g55605_nafcu_novdec2015
https://www.nxtbook.com/ygsreprints/NAFCU/g53582_nafcu_sepoct2015
https://www.nxtbook.com/ygsreprints/NAFCU/g52154_nafcu_july2015
https://www.nxtbook.com/ygsreprints/NAFCU/g50302_nafcu_mayjune2015
https://www.nxtbook.com/ygsreprints/NAFCU/g48554_nafcu_marapr2015
https://www.nxtbook.com/ygsreprints/NAFCU/g47118_nafcu_janfeb15
https://www.nxtbook.com/ygsreprints/NAFCU/g45886_nafcu_novdec2014
https://www.nxtbook.com/ygsreprints/NAFCU/g44155_nafcu_sepoct2014
https://www.nxtbook.com/ygsreprints/NAFCU/g42892_nafcu_julyaug2014
https://www.nxtbook.com/ygsreprints/NAFCU/g41296_nafcu_mayjun2014
https://www.nxtbook.com/ygsreprints/NAFCU/g39799_nafcu_marapr2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38961_nafcu_janfeb2014
https://www.nxtbook.com/ygsreprints/NAFCU/g38041_nafcu_novdec2013
https://www.nxtbook.com/ygsreprints/NAFCU/g36539_nafcu_sepoct2013
https://www.nxtbook.com/ygsreprints/NAFCU/g34910_nafcu_julaug2013
https://www.nxtbookmedia.com