The Regulator when addressing the National Supervisors Forum in November 2011, stated the following: 

“We have over the years identified significant deficiencies in how the supervisory committee function operates in credit unions. However despite this we have not seen substantial improvement in the performance of supervisory committees on a sector wide basis. Too often when we uncover major governance issues in credit unions the annual supervisory report to the members in no way reflects the performance of the board.

 As you are aware the Commission on Credit Unions has made certain recommendations in its Interim Report, in relation to the operations of the supervisory committee and we support these changes. A major challenge still remains however in how to ensure that the supervisory committee function is ‘fit for purpose’ in the proposed new regulatory framework. We believe that the National Supervisors Forum can have an important role to play in helping to bring about an enhanced and strengthened overall governance framework for the credit union sector.” 

 The regulatory framework, which governs the Credit Union sector, is now so complex and specific that the Directors and Supervisors find it extremely hard to complete their duties. The Regulator uses terminology such as “fit for purpose in the proposed new regulatory framework”. It is clear that the preference of the Regulator will be to implement an Internal Audit Function within a Credit Union and redefine the role of the Supervisory Committee.

In addition to the above the Interim Report for the Commission on Credit Unions recommends the implementation of an Internal Audit Function with each individual Credit Union.

It is now generally accepted throughout the sectors that the implementation of an Internal Audit Function within individual Credit Unions will be applicable in 2012 - 2013. 

WDA are have developed and implemented a full programme to assist Credit Unions in implementing this Internal Audit Function.  We will complete a full review of the requirments of the Credit Union and issue a detailed report to the Directors for consideration.  This report will include detailed recommendations and a roadmap / blue print for the implementation of the Internal Audit Function.

WDA also offer a professional outsourced Internal Audit Function to Credit Unions, who feel they do not have the requisite skills or resources to complete this function.

Under the Internal Audit Function WDA will assess all risks within the Credit Union and develop a plan to manage these risks and make recommendations to the Directors.  The following areas are reviewed under the Internal Audit Function:

• Corporate Governance
• Strategic Planning and Benchmarking
• Planning, Implementation and Risk                                                                                
• Information Technology and Data Protection                                                   
• Policy and Procedures                                                                                                           
• Human Resources                                                                                                            
• Financial Reporting                                                                                                             
• Financial and Asset Management Audit                                                                     
• Procurement and Overheads                                                                                            
• Shares and Deposits                                                                                                               
• Loans and Bad Debts                                                                                                    
• Income                                                                                                                                  
• Security                                                                                                                                
• Other    

 We produce a comprehensive tender document for the Boards consideration, which sets-out a full schedule of tasks that must be completed within the engagement. This will ensure there is absolutely no ambiguity to the scope of the engagement.

All professional fees are agreed between WDA and the Credit Union prior to the commencement of the engagement at a mutually agreeable level, so there is no hidden surprises or overruns.

Should you require additional information or a consultation please call us on 01 6771411 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it