AuditLink to Host Third Annual Conversations on Compliance

Jim Vilker, NCCO

CU*Answers, the 100% credit union-owned cooperative CUSO, will provide their third annual Conversations on Compliance event hosted by AuditLink, the audit and compliance division of the CUSO. AuditLink’s own Jim Vilker and Marsha Sapino will be joined by Veronica Madsen from Howard & Howard Law for Business as they discuss topics such as beneficial ownership, regulatory updates, vendor management, and the best way to develop an audit plan.

“There’s an appetite among credit unions for information relating to regulatory updates and compliance in general,” said Vilker. “Following last year’s lively discussion, we expect this year to be no less informative and beneficial to credit unions nationwide.”

The event will be held at Michigan Legacy Credit Union in Pontiac, MI, on Thursday, May 25th from 9:30 AM – 4:00 PM ET. To find out more information such as the education course details, the agenda, as well as to register for this event, visit the CU*Answers website.

AuditLink Hosts April Vendor Management Webinar

Jim Vilker, NCCO

CU*Answers, the 100% credit-union owned CUSO, provided another webinar hosted by AuditLink and Trust Exchange on Tuesday, April 25. AuditLink and Trust Exchange partnered to create one of the most robust vendor management tools and services in the country by combining years of expertise, business intelligence, and best practice.

Jim Vilker, CU*Answers VP of Professional Services, and Ed Sullivan, President of Trust Exchange, lead the discussion on monitoring requirements between vendors and credit unions, and demonstrated how to use a collaborative economy without breaking the bank.

AuditLink Publishes Primer on Vendor Assessment Process

Jim Vilker, NCCO
AuditLink, the auditing and compliance division of CU*Answers, and Trust Exchange, a firm which helps financial institutions automate their vendor compliance monitoring, have recently published a white paper revolving around the components and process of determining the criticality of vendor relationships. “Assessing criticality is one of the most important components of a complete vendor management program,” said Jim Vilker, VP of Professional Services for AuditLink. The process described in the primer was based upon a year of field work with a number of credit unions including Frankenmuth CU, Diversified Members CU, and Parkside CU. The amount of research and application of FFIEC, NCUA, and other regulatory guidance has resulted in a working document that can be used to document their thought process using a risk-based approach that is practical and guides the credit union through the process. “Expectation going in was to develop a process that identifies the risk of the relationship and designs the ongoing due diligence to mitigate those risks identified throughout the vendor life cycle,” Vilker added. “Taking a cooperative approach to vendor management is the only way this industry is going to drive down the cost of this vital function and regulatory requirement. Developing whitepapers, facilitating seminars, and sharing knowledge has been our mantra from the beginning and it is beginning to pay off much faster than originally anticipated.” Vilker added that AuditLink is in the process of developing its next white paper and web conference on the components of monitoring function and thought process revolving around the evaluation of due diligence data. “What we have found interesting is how to address the instance in which a required piece of due diligence cannot be provided by the vendor. Do they fail as a trusted vendor? Is it acceptable business risk? Do they have other controls that do not meet the standard SOC 1 or 2 which achieve the same risk mitigating result?” These questions and others will be outlined in the CUSO’s next upcoming web conference on March 29th, and published in April. Click the link below to view the whitepaper. Tier-Levels-Primer.docx

2017 CFO Strategies

Marsha Sapino AAP

AuditLink had the opportunity to present at the annual CU*Answers CFO Strategies to discuss internal controls and vendor management.  As promised, here is the presentation material.  If anyone has any questions or would like more information on vendor management, please email info@auditlinksuite.com. CFO strategies 2017

AuditLink to Host Vendor Management Webinar

Jim Vilker, NCCO

CU*Answers, the 100% credit-union owned CUSO, will be having a webinar hosted by AuditLink and Trust Exchange on Wednesday, March 29th. AuditLink and Trust Exchange have partnered to create a robust vendor management system by combing expertise, business intelligence, and best practice. All credit union individuals involved in vendor management are encouraged to attend.

Jim Vilker, VP of Professional Services, and Ed Sullivan, President of Trust Exchange, will lead the discussion of monitoring requirements and speak on using a collaborative economy without having to break the bank. Also, learn how credit unions are enabling each other to build a platform that solves vendor management problems for CUSOs and credit unions simultaneously.

The session will be held on 11:00 AM – 11:30 AM ET on Wednesday, March 29th. To sign in on the zoom session, open the web invitation.

SARs – Who’s Reading These Anyway?

Marsha Sapino AAP

Do you ever wonder what happens to your Suspicious Activity Reports (SARs) after you submit them?  FinCEN has an interesting doc that explains what happens to your SARs during the first review.  It’s a little old but still pretty relevant. It can be found by clicking here.

AuditLink and TrustExchange Co-Sponsoring Vendor Management Conferences

Jim Vilker, NCCO

AuditLink, the auditing and compliance division of CU*Answers, and TrustExchange, a firm which helps financial institutions automate their vendor compliance monitoring, recently presented their first in a series of four web conferences designed to review the latest regulatory requirements, guidelines and best practices for vendor compliance management.

“Due to recent regulatory changes, vendor management has become an urgent focus for credit unions and CUSOs,” said Jim Vilker, VP of Professional Services for AuditLink. “This first web conference concentrated on the fundamentals of a sound vendor management program that meets those changing requirements in a way that scales very well.”

Ed Sullivan, CEO of TrustExchange added: “The expectation is that these relationships are monitored through their entire lifecycle from initial vendor selection, implementation, operations and contract renewal. It’s a complex problem that’s compounded by the inherent risk of the services offered and the number of vendors engaged. TrustExchange solves the problem by providing a platform for both vendors and credit unions to share this key information as it changes over time.”

The first session was designed for credit union and CUSO leaders to establish a top down understanding of the process and present solutions to overcome the burden. “Our goal is to present insight from the top down in an organization,” concluded Vilker. Future sessions will be designed for those directly responsible for the vendor management and dive deeper into the components of the criticality assessment phase. For more information, visit https://auditlinksuite.cuanswers.com/.

AuditLink Holds Grand Opening Web Conference for Vendor Management Service

Jim Vilker, NCCO

CU*Answers, a 100% credit union-owned core data processor, recently held a grand opening web conference on the increasing challenges of developing a comprehensive vendor management program. AuditLink and Trust Exchange, formerly G2Link, have partnered together to create unique vendor management tools and processes to cater to the high regulatory expectations and high industry standards.

This event was hosted by Trust Exchange’s Ed Sullivan and AuditLink’s Jim Vilker, who demonstrated a deep understating on what a risk based vendor management program should contain. Credit unions were walked through the steps including the thought process, management, and continued due diligence that every vendor management program should have.

AuditLink Adds Seven New Daily Log Management Clients

Jim Vilker, NCCO

AuditLink, the auditing and compliance division of cooperative CUSO CU*Answers, announced in June at the CU*Answers Leadership Conference that they were giving back to their loyal Daily Log Management clients by giving them three free months of service. In addition to providing existing clients this free service, they also extended the offer any new credit unions that signed a two year contract by the end of 2016.

“We have had a great response to this promotion so far,” said Marsha Sapino, Assistant Manager of AuditLink. “Since the announcement, we have signed seven new clients; three of which were this month.”

The daily log management service includes BSA, suspicious activity, OFAC scan, employee accounts, wire transfer, dormancy, teller transaction, and file maintenance reviews. AuditLink also offers à la carte services like concentration risk analysis, ACH reviews, BSA review, duration analysis, and employee security reviews. Earlier in 2016, AuditLink announced that it had partnered with G2Link to provide vendor management services to credit unions. For more information, visit www.auditlinksuite.com.

Your Ultimate MLA Guide

Jim Vilker, NCCO

NEW! MLA Workflow Document for Lenders

We are proud to present a new document that will assist your lending staff in processing loans that must adhere to the guidelines of the Military Lending Act. This must-read document was created in cooperation with a number of credit unions who provided valuable input to help loan staff understand the process in booking MLA loans. This invaluable booklet describes the MLA workflow, including which loans are covered and which are not, an oral disclosure when booking a MLA loan, as well as instructions to use CU*BASE to work with MAPR and credit insurance on these specialty type loans. Get Your Copy Today

MLA Compliance Webinar

Join us for a free webinar on Tuesday, November 22 from 2:30 – 3:30 PM ET to learn how to process loans that fall under the Military Lending Act. This webinar will include knowledge from both the Lender*VP and AuditLink teams – you don’t want to miss this! No need to register, simply join the webinar a few minutes before it begins. Join the Webinar

MLA Champions, We Need You!

For the next 90 days, we need your feedback! How often are you serving a member of the military? Do you have programs focused on serving this community? Are your examiners asking about your awareness and execution? What can we do better to help you utilize your options? Your input will help us decide how to invest in future enhancements, and how we can best serve these communities with the next phase of development. What should be next on our plate as it relates to MLA? We welcome any and all comments! Give Feedback!

AuditLink and G2Link Co-Sponsor Vendor Management Conferences

Jim Vilker, NCCO

AuditLink, the auditing and compliance division of CU*Answers, and G2Link, a firm which helps financial institutions automate their vendor compliance monitoring, is offering a web conference on November 29th, 2016. The web conference is designed to review the latest regulatory requirements, guidelines and best practices for vendor compliance management.

“Due to recent regulatory changes, vendor management has become an urgent focus for credit unions and CUSOs,” said Jim Vilker, VP of Professional Services for AuditLink. “We continue to see financial institutions challenged by the high cost of implementing programs to achieve and maintain compliance. However, by leveraging best practices and adopting the latest technologies these institutions can drastically reduce their cost while increasing their compliance readiness.”

“Managing vendors is no longer a once per year event, vendors must now be monitored continuously,” said Ed Sullivan, CEO of G2Link. “The expectation is that these relationships are monitored through their entire lifecycle from initial vendor selection, implementation, operations and contract renewal.”

Vilker added: “Our goal is to present insight from the top down in an organization. It is imperative credit union CEOs have a clear understanding of the current trend of heightened responsibilities expected by regulators and auditors.”

Future sessions will be designed for those directly responsible for the dynamic management of vendor management and corporate contracts. To learn more about AuditLink and its partnership with G2Link, visit them at their website.

AuditLink and G2Link Co-Sponsor Vendor Management Conferences

Jim Vilker, NCCO

AuditLink, the auditing and compliance division of CU*Answers, and G2Link, a firm which helps financial institutions automate their vendor compliance monitoring, is offering a web conference on November 29th, 2016. The web conference is designed to review the latest regulatory requirements, guidelines and best practices for vendor compliance management.

“Due to recent regulatory changes, vendor management has become an urgent focus for credit unions and CUSOs,” said Jim Vilker, VP of Professional Services for AuditLink. “We continue to see financial institutions challenged by the high cost of implementing programs to achieve and maintain compliance. However, by leveraging best practices and adopting the latest technologies these institutions can drastically reduce their cost while increasing their compliance readiness.”

“Managing vendors is no longer a once per year event, vendors must now be monitored continuously,” said Ed Sullivan, CEO of G2Link. “The expectation is that these relationships are monitored through their entire lifecycle from initial vendor selection, implementation, operations and contract renewal.”

Vilker added: “Our goal is to present insight from the top down in an organization. It is imperative credit union CEOs have a clear understanding of the current trend of heightened responsibilities expected by regulators and auditors.”

Future sessions will be designed for those directly responsible for the dynamic management of vendor management and corporate contracts. To learn more about AuditLink and its partnership with G2Link, visit them at their website.

NAFCU Blog on BSA Reporting Myths

Marsha Sapino AAP

Happy Friday!  If you don’t already get the NAFCU blog emails every day, I highly encourage you to sign up.  Today they wrote a great post on BSA reporting myths that I wanted to share.

Have a great weekend!

Same Day ACH Q & A

Marsha Sapino AAP

Same Day ACH is here!  CU*Answers has compiled a list of answers to common questions asked by our clients as it relates to Same Day ACH.  Please contact a CU*Answers representative if you have additional questions.

 

 

 

We will only have to post Same Day Credits this year, correct?

    • Correct, only credits will be coming as same date transactions right now. Debits only need to be posted once per day at the time slot your credit union selects.

 

Where do I find the settlement date on the ACH report?

    • PACXTB shows this information in the company header line SETT xxx is the Julian date format

 

What is the “Allow early post/effective date override for specific Company IDs” check box at the bottom of the ACH Posting Controls screen (General Configuration 1 menu MNCNFC)? 

    • This is to activate the ability to override the posting date, by ACH company. You must then use the Update Company feature in ACH Distribution Maintenance (from the ACH/Payroll Processing menu MNACHP) to mark a specific company to actually use this override. If any individual company is overridden, its transactions will post at the first opportunity and not wait until the settlement date (credits only).

 

How many times a day will we have exceptions to work?

    • You could have exceptions up to three times a day (depending on your configurations): once for each posting time. But you can still work them next day as you do now.

 

Will exceptions be in the Work Daily ACH Exceptions feature on the ACH/Payroll Processing menu (MNACHP #4)?

    • Yes

 

What time will the last file come in from the ACH operator with credits to be posted same day?

    • 4pm (16:00) ET which is new as of 9/23/16

 

You said we have to post evening credits? Is that the CU’s responsibility or does CU*Answers do that?

    • It is your credit union’s responsibility to configure credits to be posted in the evening. CU*BASE only posts what is configured by your credit union. The recommendation is to post both debits and credits in the evening regardless of the other posting times, in order to remain in compliance.

 

So how does this affect Xtend SRS Bookkeeping? When will they work the exceptions?

    • Xtend SRS bookkeeping services will continue to work credit union ACH exceptions that show on the morning reports. At this time, we are not making any changes to our processing. However, once the activity for same-day transactions start to post, then you may call Xtend SRS to negotiate different terms. Keep in mind that if the account number format for the same-day credits is correct then they will post, so the volume of exceptions is uncertain at this time.

 

If the CU chooses to post an afternoon file, will there be an additional cost?

    • No.

 

Do we have to make sure the configurations are set or will you be setting them?

    • It is the responsibility of your credit union to ensure your configurations are correct. Access the ACH Posting Controls via the General Configuration 1 menu (MNCNFC).

 

How will we know that there are same-day credits posted? Which report would that be?

    • There is not a special report for same-day transactions. All detail is available on the PACXTB report and is simply a matter of the settlement day and time the file sent. Posting is still determined by the settlement day.

 

If we post a midday file and process the returns, when will the returns be processed?

    • If you post the afternoon file and work them before the 3:00ET return window, you could still return same day. Otherwise, they will be returned next day as they always have.