Today at the 2015 CU*Answers Annual Leadership Conference, CU*Answers CEO Randy Karnes announced the winners of the second Cost of Compliance contest, sponsored by AuditLink, the compliance division of CU*Answers. For the first contest in 2014, credit unions were tasked with creating a template for calculating and accounting for the cost of compliance. In the follow up contest, contest participants applied the winning template to their credit union operations in order to definitively answer the question “how much does my credit union spend on compliance related costs?”
“The goal was not only to derive and display costs, but to associate them with the overall profitability of the credit union,” said Karnes. “Industry leaders know these costs are soaring but when asked have no idea what the actual dollar amount of the expense is. The CU*Answers network started this initiative to begin to understand these costs and their effects on credits union profitability.”
The winner did an excellent job of taking on that challenge and assimilating these costs into the operational areas of the credit union and understanding their negative impact on its ROA. Karnes added, “We as an industry can no longer be apathetic to over-reaching regulatory burdens and the only way to win the argument with our regulatory bodies is to quantify these costs through our income and expense statements.”
Thank you to everybody that participated in the two contests, and congratulations to the winners of the grand total $10,000 awarded.
Second Cost of Compliance Contest Winners:
Pathways Financial Credit Union, Columbus OH – Greg Kidwell, President Entry
Kalsee Credit Union, Kalamazoo MI – Amber Stevens, CFO Entry
Oak Trust Credit Union, Aurora IL – Sue Beckwith CUCE, Director of Operations Entry