The downturn in the world economy, recent turmoil in financial markets and Eurozone debt crisis has shown both Governments and Business, that staying ahead of the so called “Curve” is vitally important for financial stability and security. This fact is also true of the Credit Union sector today.
No longer can a Credit Union be solely reliant on its monthly management accounts and annual audited financial statements, it must now embrace financial projection modelling to ensure it is fully aware of the future results, whether positive or negative, to enable it to take corrective action at board level.
The Registrar noted that poor corporate governance practices and policies by some Credit Union boards, excluding the macro-economic factors above, over a number of years has lead to these Credit Unions being placed into the high-risk category and onto a supervisory watchlist.
The Registrar has commended the Credit Unions who have actively upgraded policies, processes and controls. In effect the Registrar expects a Credit Union board to be pro-active and not re-active.
Bearing this in mind WDA have developed a suite of financial modelling services to assist a board in preparing financial projections. These projections are prepared in conjunction with the Credit Unions current financial information and trends. Input from all relevant staff and board members is vitally important to ensure accurate financial projections are prepared.
WDA will then produce our independent report and present to the board for full / detailed consideration and discussion. We then always schedule a follow-up meeting with the board after dissemination of the report to allow further questions, to ensure the board make a fully informed and considered decision.
Our report will include the following:
We produce a comprehensive tender document for the Boards consideration, which sets-out a full schedule of tasks that must be completed within the engagement. This will ensure there is absolutely no ambiguity to the scope of the engagement.
All professional fees are agreed between WDA and the Credit Union prior to the commencement of the engagement at a mutually agreeable level, so there is no hidden surprises or overruns.