Adoption of An Audit Committee

As a result of changes to California Credit Union Law for the purpose of modernizing and strengthening the state charter, Monterra Credit Union's Board of Directors voted to adopt an Audit Committee as a replacement for the Supervisory Committee. The Audit Committee will be a sub-committee of the Board of Directors and it will have the same powers and responsibilities as the Supervisory Committee.

The advantage of an Audit Committee is that it consolidates oversight of the credit union's financial statements and internal controls with the Board of Directors which is already responsible for broad oversight and direction of the Credit Union's risk management.

The Audit Committee will be responsible for carrying out the following duties:

a) Monitoring the Credit Union's policies and control procedures to safeguard against fraud and self-dealing, and the Audit Committee shall exercise whatever powers it has pursuant to the California Credit Union Law to conduct said review. 

b) At least once a year, to make or cause to be made by an independent auditor of their selection, an audit of the books and records and an examination of the business and affairs of this Credit Union for the year, and to make a full report of its assets and liabilities, receipts, and disbursements to the Board of Directors;

c) To report the results of the independent audit at the annual meeting of Members and file the audit report of this Credit Union;

d) To cause the accounts of the Members to be verified with the records of this Credit Union from time to time in accordance with such regulations as the Commissioner of the Department of Financial Protection and Innovation may from time to time promulgate; not less frequently, however, then on an annual basis unless a different period is permitted by regulation; and

e) Ensure that the Credit Union complies with the obligation to obtain an annual audit report and file it with the Commissioner pursuant to Section 14252 of the Financial Code. 

f) Ensure that the Credit Union maintains an effective internal audit program, including a system of internal controls and individuals with sufficient training and experience to adequately and timely review all key areas of the Credit Union's operations.