By: Kevin Shaw, Regional Director
A credit union’s board of directors has a variety of duties and responsibilities which includes obtaining proper training. Some of this training is suggested while some is required by regulation. We want to make sure to keep you compliant so let’s talk about those trainings that are required compared to some best practices.
BSA Training: The board of directors is required to obtain BSA training on a regular schedule but a specific timeline is not specified in the regulations. It is a best practice to obtain the training within your credit union’s regulatory examination cycle which is typically every 12 to 18 months. The BSA training for directors is not as extensive as for staff, but should include the understanding of the importance of the regulation, the ramifications of non-compliance, and the tasks posed to the credit union.
Financial Literacy: The second required training is financial literacy to be completed within the first 6 months of a director joining the board. A director must have at least a working familiarity with basic finance and accounting practices. This training requirement includes the ability to read and understand the credit union’s balance sheet and income statement and the ability to ask substantive questions of management and auditors as appropriate.
A board of directors can typically obtain these trainings through a variety of methods including:
- Illinois Credit Union League (ICUL) Regional Directors
- ICUL Annual Convention
- Chapter Meetings
- CUNA and ICUL Webinars
We have talked about required training, but there are some best practices that we would like to share with you as well:
- Establish a training schedule for new and existing board members
- Maintaining a log of all board training, which can be specifically helpful during regulatory examinations
- Board Duties and Responsibilities Training
- Strategic and/or Operational Planning
- Board and Key Personnel Succession Planning
- Networking with board members from similar sized credit unions via conferences
Being a credit union board member requires continued training especially as the credit union grows and becomes more complex. It is safe to say that our voluntary board members are appreciated and revered by the credit union industry, credit union management, and credit union members. We are all here to help you be successful and stay compliant.
Please don’t hesitate to email us at [email protected] or contact your Regional Director if you have questions regarding this blog post.