Are FCUs required to have a Supervisory Committee in addition to our Audit Committee?

Every federally chartered credit union (FCU) must have a supervisory committee. 3 to 5 members. Appointed by the Board. One member may also be a Board member. See below from FCU Act:§1761. §111 Management.

_—(a) Board of directors, credit committee, and supervisory committee; election to board.—The management of a Federal credit union shall be by a board of directors, a supervisory committee, and where the bylaws so provide, a credit committee. The board shall consist of an odd number of directors, at least five in number, to be elected annually by and from the members as the bylaws provide. Any vacancy occurring on the board shall be filled until the next annual election by appointment by the remainder of the directors. (b) Membership on supervisory committee; names and addresses of officers and committee members.— The supervisory committee shall be appointed by the board of directors and shall consist of not less than three members nor more than five members, one of whom may be a director other than the compensated officer of the board. A record of the names and addresses of the executive officers, members of the supervisory committee, credit committee, and loan officers, shall be filed with the Administration within ten days after their election or appointment. _

If you are converting from a state charter to a federal charter, you should just say that upon conversion, the audit committee will become the supervisory committee. And reconfigure it if necessary to meet the 3-5 members requirement, not more than 1 also a board member.​

Updated on: 21/09/2021