The Board of Directors has the responsibility to maintain the general direction and control of the credit union. This includes directing the credit union in accordance with the federal or state credit union act, the bylaws, sound business practices and other rules and regulations. The Board is also required to perform additional actions and powers that might be necessary as laws and regulations change. The Board generally meets once per month.
Through the ongoing management process of planning, organizing, directing, coordinating and controlling the Board serves five major functions:
• Making decisions of broad concern to the credit union—establishing objectives, formulating policies, approving goals and programs.
• Advising members and management of changes and decisions which may require action.
• Serving as trustees by protecting each members' investments through proper control of the assets.
• Perpetuating the credit union by hiring a capable president and ensuring that the Board itself is comprised of responsible, educated and qualified directors.
• Leading the credit union by conscientiously serving the best interests of the membership who elected them.
• Establish and set terms on various deposit accounts.
• Authorize dividend rates and intervals.
• Ensure that reserve requirements are met and authorize additional reserves if necessary.
• Monitor level of capital and develop policies to manage risk.
Set pricing policies to include dividend and interest rates, minimum balances, service fees, and penalties.
• Review investments for excess credit union funds based on predetermined investment objectives. Items to address include a strategy for asset/liability management, compliance with laws and developing a list of investment requirements.
• Decide where to borrow working capital when the need arises.
• Review insurance and bond policies for adequate coverage against dishonest and negligent conduct, fire, natural disaster, liability, etc.
• Designate a depository where liquid assets of the credit union are deposited.
Authorize salary scales for credit union personnel. Hire President/CEO and perform an annual performance evaluation.