What’s Shakin’ in SALT News – July 2021
Can Taxpayers Who Manage Their Own Investment Portfolios Deduct R...
IRS Audits May Be Increasing, So Be Prepared
The National Credit Union Administration (NCUA) recently released its primary areas of supervisory focus for 2018. Top credit union CPA firm Doeren Mayhew has outlined the seven areas below:
1. Cybersecurity Assessment. In 2018, cybersecurity will remain a key focus. The NCUA will begin implementing the Automated Cybersecurity Examination Tool (ACET), which provides the agency with a “repeatable, measurable and transparent process for assessing the level of cyber preparedness across federally insured institutions.” This tool aligns with the Cybersecurity Assessment Tool developed by the FFIEC for voluntary use by credit unions. The NCUA will begin using the ACET in examination of credit unions with $1 billion or more in assets.
2. Bank Secrecy Compliance. This continues to be a high priority for the agency to avoid money laundering or financing criminal activities. Additionally, the Customer Due Diligence regulations for financial institutions becomes effective on May 11 and examiners will begin assessing credit union compliance with the rule during the second half of 2018.
3. Internal Controls and Fraud Prevention. Credit union safety and soundness includes “establishing a strong system of internal controls and a comprehensive approach to managing fraud risk.” Evaluation of adequate controls will be ongoing.
4. Interest Rate and Liquidity Risk. The agency began using a revised interest rate risk supervisory tool and examination procedures in 2017. Since not all credit unions were examined last year, some credit unions will be examined for the first time using this tool in 2018.
5. Automobile Lending. Examiners will apply “additional scrutiny” to credit unions with exposure to higher risk forms of auto lending. Focus will be placed on portfolios with extended loan maturities over seven years, high loan-to-value, near-prime or subprime, and indirect lending programs.
6. Commercial Lending. The NCUA’s revised regulation for commercial lending went into effect Jan. 1, 2017 and examiners will continue to focus on credit union commercial loan procedures and assess risk management processes. Credit union officials should be prepared to ensure the policy, practices and staffing are appropriate for the type of commercial loans offered.
7. Consumer Compliance. Examiners will evaluate credit union efforts to comply with the Military Lending Act, overdraft policies and mortgage disclosure rules.
Are you exam ready? Doeren Mayhew’s credit union CPAs and advisors can help ensure you’re credit union is ready by providing compliance, internal controls and IT security assessments. Contact us today.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
A quick registration is required to view our resources.
You will only be asked to do this one time (unless you don't save your browser cookies).