There is an inherent difference in perspective between examiners and credit union CEOs. Examiners look for weaknesses that could grow into points of failure. CEOs look for success, for the next victory.

Here are two examples of how these perspectives may misalign in 2014:

Example 2: CEOs would like to move their credit unions into digital services, which are cost saving and in demand.  Whereas, NCUA is concerned about cyber-security and the trend of hackers to attack smaller institutions as larger institutions become well-girded.

NCUA's toolbox for credit union supervision includes consistent financial reporting (5300), the examination process, and regulation making authority. Of course, the first line of defense is always the Board, management, and supervisory committee of individual credit unions.

Many times it is more efficient to train or consult with a credit union about compliance on a new rule or product than to issue a Document of Resolution after they have made a misstep. This is the role of the Office of Small Credit Union Initiatives.

So, here are my takeaways: Examiners minimize Share Insurance Fund losses, and at their best, encourage success.  CEOs find a path to success, and at their best, embrace critical feedback.

"In FOCUS With Bill" is a new addition to our e-newsletter.  In it, OSCUI Director Bill Myers provides insights for small, low-income and new credit unions based on his role as Director and past experience in the credit union field. 

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Last month in this column, we informed you of the record number of applicants for the first round of 2014 grants.  In anticipation of round two, to be announced soon, we're highlighting past award recipients. Below, are two credit unions that received grant funding under the Student Internship initiative.

HSM (formerly, Hickory Springs) FCU is a LICU in Hickory, NC:  The credit 

HSM's student intern provided support on the teller line.

union received more than $3,500 to fund its 2013 student internship program.  The intern assisted the LICU by completing teller work, including handling withdrawals, deposits, loan payments,
and member requests for account look-up.  The student also assisted with office duties.  Lori Whitener, Manager of HSM, summed the benefits to the credit union of having a student intern by saying: "Her answering phone calls and doing some teller work, allowed us to concentrate on other services offered to our members.  Also, our staff was able to take their vacation without putting a stress on the credit union due to limited staff."

The intern, a high school student, realized some great benefits from the internship too: "This was my first real job.  I learned responsibility, time management, and how to manage money. I came with no prior knowledge of how banks or credit unions work. I opened my first checking account and have worked on my ability to manage an income. I am walking away from this job with a greater sense of knowledge on loans, checking accounts, fees, credit scores, etc." 

CORE CU is a LICU in Statesboro, GA:The credit union received more than

CORE CU received needed technical assistance through its student intern.

   $1,000 to support its 2013 student internship program.  The intern assisted Core with the development and implementation of a document imaging system.  The intern compiled an inventory list of the credit union's hardware, and researched and contacted vendors for quotes and to ensure compatibility with the credit union's systems.  Based on the intern's recommendations, the credit union has begun the installation.

CEO Bobby Michael said of the internship program: "Having an intern to complete research for implementing the proposed document imaging system for CORE allowed other IT staff to continue work on other upcoming credit union projects.  This type of research and work, though required to get a project off the ground, can keep the IT staff busy for hours gathering information when their time is much better spent on more critical issues."  CORE stands to gain significant efficiencies with installation of the system including, decreased need for physical storage of paper documents, reduced transport of critical member information to branch offices, and reduced costs of operating expenses related to printing forms.

And here is what the student, attending Georgia Southern University, offered about his impression of the internship: "The internship with CORE allowed me to see how a financial institution operates... Contacting the vendors and various other companies allowed me experience in dealing with the business world.  Working with the credit union staff and observing as they assisted members gave me an opportunity to experience the credit union difference first hand."

Announcement of NCUA's second round of 2014 grants will be made soon.   For questions about our Grants and Loans program, email us at [email protected].