17-2211.   Duties of supervisory committee; annual and supplementary audits;acceptance of certain audits.(a) The supervisory committee shall supervise the acts of the board ofdirectors, credit committee and officers. The supervisory committee maysuspend by a unanimous vote any officer of the credit union or any memberof the credit committee or the board of directors, until the next members'meeting, which members' meeting shall be held not less than seven nor morethan 21 days after such suspension, and at which meeting such suspensionshall be acted upon by the members.

      (b)   By a majority vote the supervisory committee may call a meeting ofthe shareholders to consider any violation of this act or of the bylaws, orany practice of the credit union which, in the opinion of the committee, isunsafe and unauthorized.

      (c)   The committee shall fill vacancies in their own numberuntil the next annual meeting of the members or vacancies shall be filledin such a manner as is provided in the bylaws.

      (d)   Subject to rules and regulations adopted by the administrator, thesupervisory committee shall make or cause to be made a thoroughannual audit of the receipts, disbursements, income, assets and liabilities ofthe credit union and shall make a full report to the directors, which reportshall be presented at the annual meeting and shall be filed and preservedwith the records of the credit union. The supervisory committee shall makeor cause to be made such supplementary audits as it deems necessary or asmay be ordered by the administrator, and submit reports of thesupplementary audits to the board of directors. The administrator mayaccept in lieu of any required audit, an audit by a certified publicaccountant or other independent accountant.

      (e)   Subject to rules and regulations adopted by the administrator, thesupervisory committee shall make, or cause to be made, acertification of members' accounts using either of the following methods:

      (1)   A controlled certification of 100% of members' accounts at leastonce each two years; or

      (2)   a controlled random statistical sampling in accordance withAmerican institute of certified public accountants' guidelines which testssufficient accounts in number and scope to assure accuracy of the members'accounts at least once each year.

      History:   L. 1929, ch. 141, § 11; L. 1941, ch. 181, § 3; L.1957, ch. 152, § 4; L. 1965, ch. 153, § 3; L. 1970, ch. 87, § 1;L. 1981, ch. 101, § 3; L. 1989, ch. 77, § 1;L. 1995, ch. 128, § 3; July 1.