The board of directors is responsible for the general direction and control of a federal credit union. A director must carry out his or her duties in good faith, fairly and impartially, in compliance with applicable laws and regulations; and have a basic understanding of finance and accounting practices, including an ability to understand the credit union’s balance sheet and income statement. The supervisory committee is meant to be the “watchdogs” of the credit union, and at least once every year, oversee an audit of the credit union and provide an audit report to the board. The committee must also ensure that the board is safeguarding the credit union’s assets and that management complies with policies, plans and laws and regulations.
The League and CUNA provide numerous educational opportunities for the professional development of officials and volunteers.
Policies contain the rules, guidelines, and strategic goals that a credit union follows to govern its actions. They also provide direction to employees. Regulators do expect the credit union’s board to have policies covering all aspects of their operations (e.g., lending and deposit operations, employment issues, asset liability management, security, compliance).