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The Board of Directors and Supervisory Committee of a credit union are composed of volunteer members. The Board of Directors are typically elected by the credit union's members, and the Supervisory Committee are appointed by the Board of Directors. Both groups are integral in maintaining the credit union’s integrity, transparency, and service to its members. The Board guides the general direction of the business affairs, funds, and records of the Credit Union. They also adhere to specific duties that the State of Kentucky requires they follow.

Common questions…

 

Supervisory Committee: Responsibilities, Requirements, and Terms

The Supervisory Committee provides critical financial oversight for the Credit Union, acting as the "watchdog" to ensure regulatory compliance and operational integrity.

General Responsibilities:

  • Audit Oversight: Conducts or oversees a comprehensive annual audit of the Credit Union's books and affairs.

  • Regulatory Liaison: Submits annual audit reports to the Board of Directors and the Commissioner.

  • Member Advocacy: Presents a summary of the annual audit report to the membership during the Annual Meeting.

  • Internal Controls: Performs supplementary audits or examinations of member accounts as deemed necessary or as requested by the Board.

  • Management Review: Assesses the effectiveness of the management team to ensure member assets are protected.

Term and Appointment:

  • Appointment: Members are appointed by the Board of Directors at the organization meeting.

  • Term Length: Serve a one-year term.

  • Re-appointment: Can be re-appointed without restriction at the discretion of the Board.

Membership and Eligibility Requirements:

  • Committee Size: Consists of up to nine (9) members.

  • Board Independence: Current members of the Board of Directors are ineligible to serve on the Supervisory Committee to ensure independent oversight.

  • Confidentiality: Must maintain strict confidentiality regarding all member transactions and personal affairs.

 

The Supervisory Committee:

The Supervisory Committee is appointed by the Board to oversee the credit union’s financial practices. They ensure that the Board of Directors and management comply with regulations and operate in the best interest of members. They conduct audits, review financial statements, assess the effectiveness of the management team to protect member assets and ensure transparency, and ensure proper internal controls are in place. They submit an annual report to the Board and the Commissioner, as well as a summary of that report to the members at each Annual Meeting.

Committee members are also volunteers, often with expertise in accounting, auditing, or risk management, and they play a key role in safeguarding the credit union’s assets and member interests. They serve for a one-year term and can be re-appointed without restriction at the will of the Board of Directors.


Board of Directors: Responsibilities, Requirements, and Officer Roles

The Board of Directors provides strategic oversight for the Credit Union, ensuring its financial health and stability.

Board members are elected volunteers who dedicate their time and expertise to guiding the institution.

General Responsibilities:

•  Provide general direction of the business affairs, funds, and records of the Credit Union.

•  Fulfill the duties outlined in KRS Chapter 286.6.

•  Appoint an executive committee consisting of at least three (3) directors.

 Term and Meetings:

• Serve three-year terms.

• Attend monthly meetings.

 Membership Requirement:

• Maintain membership in the Credit Union.

Officer Roles (Elected Annually):

•  Chair: Presides at meetings of the members and the Board, and performs all other usual duties connected with the office.

Vice Chair(s): Perform the duties of the Chair in the Chair's absence and other duties as assigned by the Board.

•  Treasurer: Submits financial reports to supervisory agencies and may serve as the process agent.

•  Secretary: Prepares and maintains accurate minutes of all member and Board meetings; provides meeting notices; authenticates Credit Union records; and performs all other duties incident to the office. (The Treasurer and Secretary positions may be held by the same individual.)

 

Board of Directors:

Consisting of seven (7) directors, this group is selected from members of the Credit Union and are responsible for the overall governance and strategic direction of the credit union. Oversees the organization's management and ensures it operates in the best interest of its members.

They help to make strategic decisions, set policies, and ensure financial stability, while also representing member interests and ensuring compliance with regulations. They set policies, ensure financial health, and make decisions regarding the credit union's operations.

Board members often come from diverse professional backgrounds, bringing skills in areas like finance, business management, law, and community leadership. The board is typically elected by the credit union’s members during the annual meeting. Terms of service are typically a three-year term as a director and a one-year term as an officer.