NCUA Regulation Part 701.4 states that federal credit union (FCU) board members need to…
"have at least a working familiarity with basic finance and accounting practices, including the ability to read and understand the federal credit union’s balance sheet and income statement and to ask, as appropriate, substantive questions of management and the internal and external auditors....”
Directors elected or appointed have to satisfy the financial literacy requirements within six months of being seated.
*As of October 1, 2015, state chartered credit unions in Montana will be required to provide financial literacy training to their board members. It is a result of SB 53 and should be within 6 months of appointment or election and include "basic finance and accounting practices and principles, including the ability to read and understand the credit union's balance sheet and income statement and the ability to ask substantive questions of management and auditors commensurate with the size and complexity of the credit union's operations."
The Network is holding a Financial Literacy for Directors webinar on July 16, 2015 at 11:00 a.m. MDT for affiliated credit unions. Tim Harrington will present a FREE 90 minute session to help fulfill training requirements for state and federal credit unions. Registration and details are now available!
The details of what is expected are discussed in NCUA Letter 11-FCU-02 and the attachment.