Code of Colorado Regulations
700 - Department of Regulatory Agencies
703 - Division of Financial Services
3 CCR 703-3 - RULES AND REGULATIONS OF THE COLORADO DIVISION OF FINANCIAL SERVICES PERTAINING TO CREDIT UNIONS
Section 3 CCR 703-3-8.2 - Audit Committee
Current through Register Vol. 47, No. 17, September 10, 2024
The board of directors may appoint an audit committee in lieu of a supervisory committee to carry out all of the duties and responsibilities of the supervisory committee as contained in C.R.S. 11-30-111 and all applicable rules for the supervisory committee of a federally insured credit union with the following conditions:
(a) The bylaws of the credit union must be amended to provide for an audit committee by a majority vote of the board of directors. The bylaw change must be submitted to the Commissioner for approval consistent with C.R.S. 11-30-102. If the board of directors subsequently desires to reestablish a supervisory committee in lieu of an audit committee, the same process must be followed.
(b) The audit committee shall consist of no less than three members. No member of the audit committee shall serve as a member of the credit committee, as the credit manager, as the board chair, or as an employee of the credit union;
(c) If an audit committee member calls for a committee vote as authorized under C.R.S. 11-30-111(c) to potentially suspend a director of the credit union who simultaneously serves on the audit committee for the proper conduct of the credit union, the subject of the suspension must formally recuse himself or herself and abstain from the vote. All remaining, eligible voting members of the audit committee must then vote unanimously in support of the action for it to take effect.
(d) If the membership of the audit committee consists entirely of the directors of the credit union then the annual audit to comply with C.R.S. 11-30-111(a) must be performed by a certified public accountant licensed to practice in the State of Colorado. This does not prevent the credit union from hiring a certified internal auditor to perform periodic audits however these audits will not be accepted as compliance with the annual audit requirements of C.R.S. 11-30-111(a)
(e) All Audit Committee members must strive to achieve and maintain reasonable independence in fact and appearance while fulfilling their responsibilities under C.R.S 11-30-111. If at any time the Commissioner concludes that audit function independence or effectiveness is impaired to the detriment of the credit union, or that the system of appropriate checks and balances is deficient or impaired, or that the Audit Committee is otherwise not meeting the minimum requirements established in C.R.S 11-30-111, the Commissioner may require any necessary changes deemed needed to correct or satisfactorily address the situation.
C.R.S. 11-30-108(2)
