An SE and district examiner will schedule team examinations as outlined in the NSPM. Team examinations consist of three or more team members, including the EIC.
EIC Responsibilities
In addition to reviewing team participants’ workpapers, analyzing the credit union’s performance, and meeting with the officials, the EIC coordinates, monitors, and facilitates the smooth completion of the examination.
When EICs schedule a SME or regional specialist to participate on the examination, they should schedule these examiners first to ensure their availability when needed during the examination. The EIC should also consider the amount of time these individuals might need to provide training to other team members during their onsite work.
Advance Work
As stated in the NSPM, the EIC should complete the exam scope in advance of the rest of the team’s arrival on site. If needed, the EIC and selected team members should begin the examination before the full team arrives, unless travel and time considerations preclude an advance team contact. Examiners can lose substantial time during the initial phases of the examination waiting for credit union staff to provide items requested.
The EIC (or advance team) should aim to complete the following logistical steps before the full team's arrival:
- Contact key officials to inform them of the examination and its probable duration as outlined in the NSPM.
- Determine a date and time that are mutually agreeable to NCUA staff and credit union officials if planning to hold a joint conference.
- Arrange adequate working space for the team.
- Compile and provide a list of items needed for the examination, as appropriate, to credit union management, as outlined in the NSPM.
- Obtain the documentation of the supervisory committee's work and schedule a meeting with the auditor, if necessary.
- Obtain and review the minutes for all board meetings since the prior examination. Determine if any actions taken would affect the scope of the examination.
- Select loans for review, as appropriate.
- If loan files will be reviewed electronically, EICs may wish to test their access to the credit union's data processing system.
- Allocate work assignments to team members. The examination software gives the EIC the ability to import and export loan lists, reports, general ledger worksheets (except balance sheet and income statements), and questionnaires to and from various team members.
- Notify team members of their assignments before beginning the onsite examination to allow the team time to review their assigned areas and to assemble needed reference material. The EIC will then have the freedom to more effectively coordinate and direct the overall examination.
Communicating with the Team
The EIC often holds initial and ongoing meetings with team members to ensure a continuous flow of information. The NSPM includes a team memo template that EIC’s can use to provide initial logistical information to the rest of the exam team.
During initial meetings, the EIC can discuss the credit union’s risk profile, relate problems noted during prior examinations and supervision contacts, answer team members’ questions pertaining to their delegated areas of responsibility, provide instructions on communicating with personnel at the credit union and, in general, plan the work.
The EIC should provide an open door of communication throughout the examination, inviting team members to discuss risk assessment adjustments based on their field work. These discussions have value in more complex examinations where the EIC may not have had the opportunity to become acquainted with all phases of the credit union’s operations. Team members should feel comfortable briefing the EIC on requested areas, providing reports on their areas of responsibility, and discussing risk assessment adjustments as necessary; however, the EIC will make any final determination about the risk assessment.
The EIC is also responsible for ensuring that adequate documentation exists and that all appropriate meetings with credit union personnel have occurred before team members depart at the end of the examination.
Requesting a Specialist
exam staff may request a specialist during the annual budgeting process, or on an ad hoc basis as needed. To assist exam staff in requesting a specialist, exam staff may use a specialist request form to ensure full understanding between the EIC and the specialist regarding the scope of the review, the procedures employed, the deliverables expected, and associated timetables, and the portion of the exam time allocated to the review.
The optional specialist request forms can help facilitate communication and manage expectations between exam staff, specialists, and regional management regarding work assignments.
Last updated May 8, 2018