Credit Union Exam Solutions Presents With Flying Colors

www.marktreichel.com

https://www.linkedin.com/in/mark-treichel/

## Episode Overview
A detailed discussion on what makes an effective board package for credit unions, drawing from Todd Miller's 34 years of experience at NCUA. Learn how to create board reports that help directors make informed decisions while satisfying regulatory requirements.

## Key Points on Board Packages

### Foundation and Purpose
- Board packages should reflect management's responsibility to demonstrate compliance with:
  - Business plan
  - Board policy
  - Risk appetite standards
- Purpose is to help board members make good decisions regarding their responsibilities
- Must balance what boards need to know vs. want to know

### Components of Effective Board Packages

#### Quantitative Reports
- Key Performance Indicators (KPIs)
- Key Risk Indicators (KRIs)
- Financial reports
- Budget updates
- Strategic plan progress
- Peer comparisons
- Dashboard-style summaries preferred over excessive detail

#### Qualitative Reports
- Clear, concise explanations providing context
- Explanations for deviations from plans
- Discussion of emerging risks and opportunities
- Summaries of committee activities
- Analysis of significant trends or changes

### Best Practices
1. Maintain consistent formatting across all reports
2. Use standardized indicators (e.g., red/yellow/green) throughout
3. Present data in consistent order (e.g., oldest to newest)
4. Include peer comparisons
5. Make detailed data available but focus on summaries
6. Regular review and updating of package contents
7. Address material risks clearly and directly

### Common Pitfalls to Avoid
- Information overload/data dumping
- Inconsistent formatting
- Burying significant risks in details
- Failing to provide context for decisions
- Including outdated or unnecessary reports
- Not disclosing material information

## Regulatory Considerations
NCUA guidance states that "reports to directors should support complete, understandable, and accurate information appropriate to the size and complexity of the credit union."

## Key Takeaways
1. Focus on helping board members make good decisions
2. Provide clear understanding of current situation
3. Keep focus on future actions and strategic direction
4. Balance detail with clarity
5. Maintain consistency in reporting structure