Issue link: http://www.epageflip.net/i/964842
Supervisory Committee's Report, April 2018 Dear Member, Your Supervisory Committee is pleased to report to you that the Credit Union is well- managed and in excellent financial shape. In Q1, the Credit Union engaged a leading provider of IT compliance and cybersecurity services, All Covered, to complete a baseline risk assessment and to perform additional information security analysis and support on an on-going basis. In Q2, the Credit Union added a Compliance Coordinator position to provide additional support and guidance to meet the ever- increasing regulations that financial institutions face. Mandatory annual internal audits conducted by Nearman during 2017 addressed the following areas of federal compliance: Bank Secrecy Act (BSA), Office of Foreign Assets Control (OFAC), Customer Identification Program (CIP), Secure and Fair Enforcement (SAFE) for Mortgage Licensing Act, FACT Act, Identity Theft Red Flag Procedures, and Automated Clearing House (ACH) transactions. There were no significant findings from these audits. Internal audits addressed areas of Credit Union operations, including plastic card operations, unlawful internet gambling/regulation, Military Lending Act (MLA), remote banking risk assessment, and loan file maintenance activity and procedures. Members of the Supervisory Committee conducted random cash counts, and other reviews of Credit Union procedures and activities, with no significant findings. The National Credit Union Administration (NCUA), the regulatory body charged with overseeing federal Credit Unions, examines the Credit Union on a regular basis. Our last examination took place in Q1 2017 and resulted in a favorable rating. JMAFCU management has evaluated and responded to all audit recommendations and continues to implement recommended changes where appropriate. The financial audit for the 12-month period ending September 30, 2017, resulted in an unqualified opinion from the independent auditing firm Nearman, Maynard, Vallez (Nearman). The auditor's report is included in the Annual Report booklet and consists of the auditor's opinion letter and the financial statements with corresponding auditor notes. The Supervisory Committee believes that all audits and examinations, with their related reports, show that the financial statements present a fair and reliable report of the financial condition of JMAFCU. Respectfully submitted, Vicki McComb Chairman, Supervisory Committee 4 JM Associates Federal Credit Union • jmafcu.org