§ 6-402. Powers and duties of supervisory committee
West's Annotated Code of MarylandFinancial Institutions
MD Code, Financial Institutions, § 6-402
§ 6-402. Powers and duties of supervisory committee
(a) The supervisory committee is responsible for ensuring that the officials and officers:
(b) To meet its responsibilities, the supervisory committee shall determine whether:
(c)(1) The supervisory committee shall submit:
(d)(1) The supervisory committee audit of a credit union shall occur at least once each calendar year and shall cover the period elapsed since the last audit period.
1. An opinion audit of the credit union's financial statements performed by an independent licensed certified public accountant;
2. In accordance with the provisions of paragraph (3) of this subsection, an agreed upon procedures engagement performed by a qualified person with appropriate knowledge of auditing concepts and credit union procedures; or
3. An audit performed by the supervisory committee or the credit union's internal auditors.
1. Compare the balance of investments and accrued interest receivable from the subsidiary ledger to the general ledger;
2. Choose a sample of investments and compare the market value per the subsidiary ledger to an outside source;
3. Test the accrued interest and compare it to the subsidiary ledger;
4. Test a sample of investment purchases or sales during the audit period for proper authorization to make sure that the accounting treatment is correct, compare the terms of the transactions to a broker advice, and make sure that the investment is in accordance with board policy; and
5. Confirm all investments with any depository institution, broker, or third party safekeeping agent, or inspect the original certificate, if it is in the possession of the credit union;
1. Obtain reconciliations of the selected accounts and compare the balance to the general ledger;
2. Test the mathematical accuracy of the reconciliation; and
3. Determine whether any reconciling items have been outstanding for more than 30 days;
(e)(1) At least once every 2 years the supervisory committee or its designee shall verify the accounts of the members in accordance with paragraph (2) of this subsection.
(f)(1) A credit union with assets in excess of $250,000,000 shall have an internal audit function in accordance with paragraph (2) of this subsection.
1. An evaluation of internal controls; and
2. Operational procedures; and
(g) Any agreement between the supervisory committee and an outside auditor shall be documented by an engagement letter that specifies the terms, conditions, and objectives of the arrangement.
(h)(1) All work performed by the supervisory committee, outside auditors, or internal auditors shall be documented by appropriate work papers.
(i) (1) At any time, by a unanimous vote, the supervisory committee may suspend a director, an officer, or a member of the credit committee for cause.
Copy of annual audit and all recommendations, charges, and significant findings sent to Commissioner
(j) The supervisory committee shall send promptly to the Commissioner a copy of the annual audit and all recommendations, charges, and significant findings that the supervisory committee presents to the board.
Credits
Added as Financial Institutions § 6-302 by Acts 1980, c. 33, § 2, eff. July 1, 1980. Amended by Acts 1982, c. 882; Acts 1996, c. 326, § 2, eff. July 1, 1996. Renumbered as Financial Institutions § 6-402 by Acts 2001, c. 147, § 1, eff. Oct. 1, 2001; Acts 2001, c. 148, § 1, eff. Oct. 1, 2001.
Formerly Art. 11, § 147.
MD Code, Financial Institutions, § 6-402, MD FIN INST § 6-402
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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