North Carolina Administrative Code › Title 04 - COMMERCE › Chapter 06 - CREDIT UNION DIVISION › Subchapter C - CREDIT UNIONS › Section .0300 - BASIC INTERNAL CONTROLS: ACCOUNTING PROCEDURES AND OPERATION STANDARDS FOR STATE-CHARTERED CREDIT UNIONS › Section 06C .0302 - PROCEDURES

Current through Register Vol. 39, No. 2, July 15, 2024
The basic internal controls, accounting procedures, and
					 operation standards for all credit unions shall be as follows:
(1) an adequate general ledger and detailed
				  cash journal shall be maintained for the control of all transactions of the
				  credit union;
(2) a record of all
				  correcting and adjusting entries, with an explanation of each entry, shall be
				  maintained;
(3) manual and
				  computerized accounting systems, all receipts and disbursements shall be
				  recorded and posted daily to cash journal and subsidiary accounts;
(4) deposits in the bank or credit union
				  shall consist of an entire day's receipts as entered in the journal and cash
				  record. If amounts are less than three hundred dollars ($300.00), more than one
				  day's total receipts may be combined in a single deposit provided that no funds
				  shall be held more than three banking days;
(5) security shall be provided (cash drawer
				  and lockbox) at a minimum for storage of funds;
(6) credit union funds shall be kept separate
				  from all other funds;
(7) cash
				  shall be balanced at the end of each working day, and a record made by each
				  teller detailing coins, currency, checks, and other items counted as
				  cash;
(8) a "cash over and short"
				  account shall be maintained in the expense ledger, with a record showing the
				  name of each person responsible for each difference;
(9) a pre-numbered receipt slip or other
				  original record shall be made and preserved covering each payment
				  received;
(10) all bank or credit
				  union accounts shall be reconciled at least monthly and the reconciliations
				  shall be maintained as set forth in Rule .1002 of this Subchapter;
(11) a duplicate of itemized bank or credit
				  union deposit slips, or other comparable detailed item record, shall be
				  maintained, as set forth in Rule .1002 of this Subchapter;
(12) the status of all the credit union's
				  funds, including investments and funds held by agents or attorneys, shall be
				  determinable at all times;
(13)
				  checks shall be pre-numbered by the printer and not signed in blank in advance
				  of issue. Facsimile signature plates shall be maintained in the credit union
				  vault under dual control;
(14)
				  disbursements shall be supported by invoices, vouchers, or other explanations
				  of record, each showing the nature or purpose of each disbursement;
(15) dual control shall be maintained over
				  all negotiable investment securities;
(16) members' accounts shall be posted and
				  balanced monthly and supported by member trial balance or adding machine tapes,
				  identified, dated, and maintained;
(17) a trial balance of the general ledger
				  shall be prepared within 15 business days from the close of business of the
				  last day of each month and financial statements prepared;
(18) correction of errors in records shall be
				  visible and approved by an authorized person that shall be approved by the
				  board of directors;
(19) a signed
				  membership card file covering all accounts shall be maintained;
(20) payment of dividends or interest on
				  accounts shall be accomplished by check or by credit to the individual account.
				  A record in support of dividend or interest paid by check or credited to
				  accounts shall be maintained;
(21)
				  a cross-index card record shall be maintained for each comaker showing the
				  date, name, and original amount of each note on which the individual appears as
				  comaker;
(22) minutes of meetings
				  of the board of directors shall record in detail all of its business
				  transactions and be signed by the presiding officer and the secretary. Upon
				  meeting as a board of directors, the secretary or designated member shall make
				  a matter of record in the minutes of the meeting all written communications
				  from the Division;
(23) the
				  supervisory committee shall have work papers to support its audit report. The
				  reports and work papers shall be retained and made available for review by the
				  Administrator, as set forth in Rule .1001 of this Subchapter;
(24) a report of actions taken by the credit
				  committee or loan officers shall be prepared, signed, and maintained, as set
				  forth in Rule .1002 of this Subchapter;
(25) minutes of each annual meeting of the
				  members of the credit union shall record all business transacted;
(26) all books and records of the credit
				  union shall have protection from fire and other hazards at all times. Active
				  books and records of the credit union should be located at the principal office
				  at all times;
(27) dormant accounts
				  shall be controlled to prevent improper withdrawal;
(28) annual vacations of at least five
				  consecutive working days (during periods when proofs of subsidiary ledgers are
				  being made) shall be taken by each employee having access to cash and the
				  general ledger. During the vacation, the employees shall remain
				  absent;
(29) a record shall be
				  maintained that shall show the tax and insurance status of each piece of real
				  estate securing the credit union's investment of funds in real estate mortgage
				  loans; and
(30) all tax liabilities
				  shall be determined and paid in accordance with State and federal
				  laws.
Authority
					 G.S.
					 54-109.11(4);
					 54-109.12;
					 54-109.16;
					 54-109.17;
					 54-109.19;
					 54-109.92;
Eff.
					 February 1, 1976;
Readopted Eff. April 4, 1978;
Amended
					 Eff. March 1, 2015; January 1, 1992; July 1, 1988; December 1,
					 1979;
Readopted Eff. February 1,
					 2018.