The Omnipro Credit Union Conference was held in the Crowne Plaza in Dublin, September of this year.

David McArdle and Patrick Loughnane of FMB were part of the course facilitators as they discussed the Loan Book Reviews and PRISM Visits of the Credit Union and Central Bank.

The areas covered for the Loan Book Review were:

• Types of request
• Central Bank
• Credit Union
• Types of request made by Central Bank
• Template to be completed and reviewed by auditor
• Independent Loan Book Review
• Auditor to carry out loan book and asset review as part of year end work.

The Guidance and Legislation of the Loan Book Review

As stated in Section 35 of the Regulatory Requirements for Credit Unions, November 2010

1. CU must ensure they review their total loan portfolio on a quarterly basis to verify the adequacy of the BDP and incorporate resulting adjustment in monthly management accounts and Prudential Returns. (4.3)
2. A full review of the BDP must be undertaken as part of the year end annual accounts preparation and audit process. (4.4)
3. A full review of the BDP must be undertaken as part of the year end annual accounts preparation and audit process. (4.4)

The Engagement Letter

Is a separate engagement letter required? In most cases, YES.

If reviewing Credit Union prepared Loan Book Review and template then perhaps no as part of audit work. 

The Central Bank Template Request

1. Complete ‘Asset review findings summery template’
2. Must be discussed with auditor prior to accounts being finalised
3. Board to confirm in writing to CB that they will comply with the request and that they have discussed with the auditor
4. Must be uploaded via secure file upload with the draft accounts
5. Does not state who must complete the work (Internally/League/Auditor?)
6. May have an impact on proposed AGM dates

Note CB will state that CU should not set an AGM date.
Sign up for the full Loan Book and PRISM review here, including the Central Bank Template.