It feels like the Enron debacle was decades ago, and yet, it was only October 2001 when the news broke. The company’s corruption and lack of oversight quickly made it a poster child for what not to do. It also led to the quick passage of the Sarbanes-Oxley Act that dictates specific board governance roles and responsibilities for publicly traded companies. You might be wondering how that Act impacts member-owned credit unions.
This week, we are sharing a few resources that review the portions of the Act that do not apply to credit unions and yet provide solid practices for credit unions boards to consider and pay attention to in their oversight role, especially in the areas of auditor independence and financial disclosure. This NCUA letter and the associated chart note that while the requirements are not directly applicable to federally chartered credit unions, “certain provisions may be appropriate to consider.” We encourage state chartered credit unions to take this advice under consideration too.
As board members, you have a lot on your plate. This should serve as a reminder that there are many resources available. Here at Montana’s Credit Unions we are always happy to help!