69U-110.026. Supervisory/Audit Committee; Audit

(1) Audit Committee. In lieu of establishing a supervisory committee, a credit union may elect or appoint an audit committee in compliance with the following conditions:

(a) The credit union’s bylaws must be amended to provide for an audit committee, to set forth the membership of the audit committee, and to establish whether the members of the audit committee are appointed or elected to such position;

(b) Directors shall not perform or participate in any audits; and,

(c) If the membership of the audit committee consists entirely of directors of the credit union, then the annual audit to comply with Section 655.045, F.S., must be performed by a certified public accountant licensed to practice in the State of Florida. This does not prevent the credit union from hiring an internal auditor to perform periodic audits, however, these audits will not be accepted as compliance with the annual audit requirements of Section 655.045, F.S.

(2) The supervisory or audit committee of each state chartered credit union shall perform, or cause to be performed, an annual audit of the credit union in each calendar year and within 15 months of the previous audit. The complete audit, including all summaries, reports, drafts, work papers, and similar documents, shall be made available upon request to the OFR for examination, copying, and review at the credit union’s principal place of business. The annual audit shall be performed in such a manner as to ensure the maintenance of account insurance as required by Section 657.033(9), F.S., as provided in 12 C.F.R. §741.202 (1-1-2020 Edition), which is hereby incorporated by reference and available at http://www.flrules.org/Gateway/reference.asp?No=Ref-13204 and the OFR’s website, www.flofr.gov.

(3) Content, Submission and Review of Audit Reports. Within 90 days after the completion of the audit, and within 45 days of acceptance by the board of directors, the board of directors shall submit with the report or shall be included in the report the following to the OFR:

(a) The date or dates on which the audit was conducted and the completion date;

(b) A statement of condition as of the audit date;

(c) A statement of income and expense for the calendar period year-to-date;

(d) A statement describing the audit findings and recommendations; and,

(e) The credit union’s response to the audit findings and recommendations.

(4) OFR shall review each audit and, if it finds that the audit does not comprehensively address all relevant areas of concern or accurately reflect the condition of the credit union, OFR shall require an audit pursuant to section 655.045(3)(a), F.S.

Rulemaking Authority 655.012(2), 657.026(3)(a) FS. Law Implemented 655.045, 657.026, 657.033(9) FS. History–New 7-25-66, Formerly 3-5.08, Amended 10-21-75, Formerly 3D-10.10, Amended 10-13-81, Formerly 3C-30.10, 3C-30.010, Amended 10-8-95, Formerly 3C-110.026, Amended 3-6-07, 6-28-21.