§ 704.13 Board responsibilities.

(a) General. A corporate credit union's board of directors must approve comprehensive written strategic plans and policies, review them annually, and provide them upon request to the auditors, supervisory committee, and NCUA. (b) Policies. A corporate credit union's policies must be commensurate with the scope and complexity of the corporate credit union. (c) Other requirements. The board of directors of a corporate credit union must ensure: (1) Senior managers have an in-depth, working knowledge of their direct areas of responsibility and are capable of identifying, hiring, and retaining qualified staff; (2) Qualified personnel are employed or under contract for all line support and audit areas, and designated back-up personnel or resources with adequate cross-training are in place; (3) GAAP is followed, except where law or regulation has provided for a departure from GAAP; (4) Accurate balance sheets, income statements, and internal risk assessments (e.g., risk management measures of liquidity, market, and credit risk associated with current activities) are produced timely in accordance with §§ 704.6, 704.8, and 704.9; (5) Systems are audited periodically in accordance with industry-established standards; (6) Financial performance is evaluated to ensure that the objectives of the corporate credit union and the responsibilities of management are met; (7) Planning addresses the retention of external consultants, as appropriate, to review the adequacy of technical, human, and financial resources dedicated to support major risk areas; and (8) For each item before the board, the meeting minutes list the names of directors and their votes, as well as the names of any directors who did not vote, except that if the minutes include a complete list of directors attending the meeting, the vote tally need only list the names of directors who voted against the item or who abstained.