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

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.