Paper

Development Best Practices in Credit Union Supervision: Examination Process - Final Examination Report

How does an examination report assess the condition of a credit union?
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This paper discusses the different parts of the examination report, which is submitted from the regulator to the credit union. The report performs the following functions:

  • Communicates the regulatory body's assessment of the credit union's overall condition;
  • Documents all the significant items discussed during the examination;
  • Describes the credit union's strengths, weaknesses and the corrective actions needed to resolve any problems;
  • Is used as a diagnostic tool to communicate the overall safety and soundness of the credit union.

The paper discusses:

  • The components of the examination report;
  • Final report organization;
  • Examination overview, which organizes and presents all of the examiner's observations, recommendations and conclusions;
  • Document of resolution, which is the key document for resolving problems in the credit union;
  • Examiner findings document, which lists operating exceptions, violations of law or regulation, and unsafe and unsound policies, practices and procedures;
  • Loan exceptions document, which notes the specific borrower loan exceptions to policy and procedure and the general exceptions to sound loan underwriting;
  • The confidential section, which is for the internal use of the regulatory body. This would cover pertinent matters of a private nature including personal opinions based on the examiner's observations;
  • Examination work papers, which are written documents prepared or obtained by the examiner while performing an examination.

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