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Thank you for your interest in volunteering with FAFCU.

Below you will find the information you need before applying for your desired volunteer position. Interested parties can fill out the application for consideration.

To be appointed as an Associate Director (and to continue serving), an individual must:

  • Be a Forest Area Federal Credit Union member in good standing.
  • Display an interest in FAFCU and a willingness to serve its members through board activities.
  • Be willing and able to devote the time and effort it takes to serve as an associate, on various committees (as appointed by the Chairman), and in various educational programs;
  • Demonstrate that he/she is a team player who exercises sound judgement.

There will be no guarantee that any Associate Director will eventually become a Director. They are, however, eligible to be elected to serve as a member of the Board of Directors.

Associate Directors will be given an opportunity to see what the Director position entails before they make a full and final commitment to being a regular Director and to show first-hand that they are qualified to perform in the expected capacity.

To accomplish this, they will be provided with:

  • Materials to review, study and understand (e.g. minutes, handbooks, etc.); and
  • A “Credit Union Board of Directors Handbook”, with which they will become thoroughly familiar.

Associate Directors will be expected to:

  • Attend and participate in board meetings. However, Associate Directors will have no voting powers and may not attend Executive Sessions of the board.
  • Attendance and removal. If an associate director fails to attend regular meetings of the board for 3 consecutive months, or 4 meetings within a calendar year, or otherwise fails to perform any of the duties as an associate director, the office may be declared vacant by the board and the vacancy filled as considered necessary.
  • Accept committee assignments and work on important projects.
  • Keep the same confidentiality of individual member's records and other information as regular Directors and FAFCU staff.
  • Attend Paul Bunyan Chapter meetings and appropriate league or chapter sponsored workshops, seminars, etc., as designated by the Chairman and provide feedback to the board.
  • Work to complete the Volunteer Achievement Program (VAP) at the Basic level. (Board of Directors courses: V100, V101, V102)
  • Have the ability to demonstrate a working familiarity with basic finance and accounting practices, including the ability to read the Credit Union Balance Sheet and Income Statement and to ask as appropriate substantive questions of management and auditors. This requirement will meet the NCUA Requirement for Board of Directors. (CUNA Financial Education Courses: V02, V03, V409, V415, V305 and V428)

The cost of education programs will be borne by FAFCU.

Board of Directors Qualifications

The Federal Credit Union Act and the FCU Bylaws contain the only eligibility requirements for membership on the board of the directors, which are as follows:

a) The individual must be a member of the credit union before distribution of ballots;

b) The individual cannot have been convicted of a crime involving dishonesty or breach of trust unless the NCUA Board has waived the prohibition for the conviction; and

c) The individual meets the minimum age requirement established by FCU bylaws.

Anyone meeting these three requirements may run for a seat on the board of directors if properly nominated. It is the nominating committee’s duty to ascertain that all nominated candidates, including those nominated by petition, meet the eligibility requirements.

The Federal Credit Union Act and the Bylaws do not prohibit a board of directors from establishing reasonable criteria, in addition to the eligibility requirements, for a nominating committee to follow in making the nominations, such as financial experience, years of membership, or conflict of interest provisions. The board’s nomination criteria, however, apply only to individuals nominated by the nominating committee; they cannot be imposed on individuals who meet the eligibility requirements and are properly nominated by petition.

The Board of Directors establishes the following additional criteria to be considered for board nomination to the Board of Directors:

* In Good Standing: Defined as a member who qualifies for membership in the credit union, maintains a minimum share balance on deposit with the credit union of $10.00 or more, has paid the membership fees as required, is not currently delinquent with the credit union on any loans, and has not caused the credit union a loss.

* Support the Credit Union: Any applicant should show that they support the credit union by using our products and services.

* Not habitually negligent: Any applicant should not be negligent in paying his or her financial obligations, understood to mean that an individual has been no more than 30 days delinquent on a loan(s) more than twice in the preceding year.

*Bondability verification: A Director, when elected or appointed shall consent to allow the Credit Union to verify bondability with our insurer.

*Formerly Discharged FAFCU Employees:  A formerly discharged employee shall not be considered for nomination or appointment to the Board of Directors

A Director, when elected or appointed shall subscribe that he or she will diligently and honestly perform the duties of the office and will not knowingly violate or permit to violate, any provisions of this act.

TRAVEL EXPENSE REIMBURSEMENT

In recognition of the important role our volunteer officials play in the success of our credit union, the credit union will reimburse board member expenses for bona fide credit union business.

Guidelines: Functions for which expenses incurred by an official member may be reimbursed include the annual membership meeting of the credit union, regular board meetings, local and state credit union league meetings, and state and national education conferences. Reimbursement of expenses incurred is based on the condition that the Board has approved the official attendance at any of the events specified.

Reimbursement expenses authorized

NCUA Letter 05-FCU-02 (Tax Consequences of Payment of Travel Expenses for FCU Volunteer Officials and Their Guests) discusses the authorization that Federal Credit Unions may reimburse volunteer officials and one guest per official for reasonable and proper costs incurred in carrying out official responsibilities. The reimbursement rule also requires that payments must be determined to be necessary or appropriate in carrying out official business and are in accordance with written policies and procedures, including documentations requirements. Additionally, the NCUA does not view payment of reasonable travel costs for a federal credit union official and one guest as compensation to the official or the guest.

To comply with the reimbursement rule, Forest Area Federal Credit Union adopts the following requirements to pay the reasonable and proper costs incurred by an official in carrying out the responsibilities of the official’s position. These costs may include travel expenses of an official and one guest to attend credit union related conferences and meetings:

a.            Reimbursable expenses are limited to the costs of transportation, lodging, food and conference registration fees, if required and must be submitted to the Board Chair or Vice Chair for approval.

b.            No lodging reimbursement can be approved without submission by the official of a listing of expenses supported by receipts.

c.             Any out-of-pocket expense will be reimbursed up to the approved limit as follows: 

                 1. Meals:              $50.00

                 2. Mileage:         Federal rate approved by the IRS .

                 3. Parking:          Actual cost supported by receipts

d.            Reimbursement limitations will be established as necessary by the Board of Directors upon recommendation from management.

e.            The credit union will maintain records of officials’ expenses and official reimbursement for inspection by auditors and examiners.

POLICY REVIEW

This policy will be made a part of the credit union’s overall policies and will be reviewed at least annually.

Reviewed June 17th, 2025

The Supervisory Committee's primary function is to ensure thorough ongoing reviews and audits; the credit union's records are maintained properly, honestly, and accurately; policies established by law and the Board of Directors are carried out faithfully; and members' assets are safeguarded and used according to the purposes of the credit union.

This is strictly a volunteer position & you will receive no compensation for serving on the Supervisory Committee.

Acknowledgement of Responsibilities and Expectations

  • Attend monthly meetings on the third Tuesday of every month.
  • Must be willing to commit to continuing education in the Credit Union field and perform or coordinate other internal auditing functions designed to monitor internal controls, policies and procedures, and activities of the Board of Directors.
  • Other time commitments will be required for duties such as meeting with examiners or auditors as needed in connection with an exam, conducting verifications of member accounts, performing seven annual in-branch cash audits, and preparing/presenting reports and information to the Board of Directors.

General Policy Statement

The Board of Directors of Forest Area Federal Credit Union adopt this Directorship Policy for the purpose of setting requirements and guidelines for directors and to state the view of the board in its role in guiding the credit union.

STATEMENT OF BOARD’S ROLE IN GUIDING THE CREDIT UNION

The Board of Directors believes that the quality of a credit union’s leadership is probably the most important factor in its success.  As a result, it is this Board’s position that each Director must maintain a high level of competence and understanding in all areas of the credit union’s policies.

The Board of Directors views its role in guiding the credit union as:

  • Providing safe and sound financial stewardship of the assets of the credit union.
  • Providing the membership with high-quality financial services at competitive prices.
  • Providing opportunities for the membership to improve their economic and social condition.
  • Complying with all applicable laws and regulations including the Bylaws of Forest Area Federal Credit Union.

This is accomplished through planning, adopting appropriate policies, and oversight of the credit union’s management.

ATTENDANCE AND MEETINGS

Each director is required to devote sufficient time and effort to maintain a strong understanding and awareness of issues affecting the credit union.  It is the policy of this credit union that a clear agenda be developed prior to each meeting and adhered to at all board meetings.  Directors will focus on business that needs to be addressed and minimize the time spent on irrelevant issues. The Board of Directors meetings will be held as required under the Federal Credit Union Act meeting at least once a month. The Credit Union Bylaws specify if a Director fails to attend three (3) consecutive meetings, four (4) meetings within a calendar year, or fails to perform any of the duties devolving upon him the office may be declared vacant by the Board of Directors and the vacancy shall be filled as provided for in the Bylaws of the Credit Union.

COMPLIANCE

Directors must maintain the integrity of the credit union by ensuring compliance with all applicable laws and regulations.  It is of primary importance that credit union management provides Directors with materials necessary for understanding new legal and regulatory requirements, and what changes may be necessary for implementation.  When appropriate, professional counsel will be sought to ensure an appropriate level of understanding by Directors and compliance with all regulations.

CONTINUITY

Directors are responsible for maintaining safe and sound operations over time and for assuring that the credit union is strategically positioned for future operations.  Several areas of the credit union’s overall operations contribute to maintenance of continuity.  Each of these areas is addressed in the policies and procedures of this credit union. These are:

  • Strategic and Operational Planning
  • Capital Adequacy
  • Liquidity
  • Funds Management
  • Risk Management
  • Management Development and Accountability

BOARD/MANAGEMENT SUCCESSION PLAN

Separate board/Management succession plans will be reviewed annually and updated as necessary.

EDUCATION/SELF IMPROVEMENT

Education is a necessary element of maintaining Director Competence and the confidence of the membership.  It is expected that each director will develop a level of confidence in the philosophical and financial topics that Directors need to discharge their duties under the NCUA, Federal Bulletins and Letters, and the Bylaws of this credit union. All directors must possess a general understanding or competency of the following to fulfill this education requirement:

  • History and philosophy of the credit union movement and this credit union.
  • Credit union system structure and products offered.
  • All services currently offered by the credit union and any research on proposed new product offerings.
  • General skills in management and personnel (including any legal requirements), strategic/operation planning, data processing, and budgeting.
  • Ability to read and understand financial statements.
  • Ability to understand Regulatory/legal requirements for credit unions.
  • Understanding local, national, and international economic and social environments and their effects on the credit union.
  • Understanding competitive forces in the local marketplace and their effects on the credit union.

INTEGRITY

Directors must maintain the highest standards of personal and professional ethical conduct.  Paramount is the maintenance of member confidentiality and credit union business confidentiality, and appropriate disclosure of any conflict of interest.  Therefore, no Director shall discuss member or credit union information that is of a confidential nature unless it is in the furtherance of appropriate credit union business.  Directors shall attempt to avoid conflicts of interest or the appearance of conflicts of interest.  In the event that a conflict exists, a Director shall appropriately disclose the conflict and act accordingly.  A measure of a Director’s integrity is Board unity, which includes being unified on most matters, standing behind a decision once it has been made, and accepting the decisions of the group.

LEADERSHIP

Directors chart the financial and service course for the credit union.  As such, each Director is expected to approve or suggest modifications to the strategic or operational plans presented by management, set direction and policies, strive to maintain a high level of competence in legislative and regulatory issues, and understand the financial needs of the membership.  Leadership is also exhibited by a strong commitment to board duties, a willingness to volunteer for committee assignments, being well prepared for board meetings, and working to accomplish the credit union’s goals and objectives.

POLICIES

Directors will strive to help management develop sound policies and clearly and concisely state intentions, limitations and controls that dictate specific courses of action.  All policies will be reduced to writing and annually reviewed by the Board.  During this annual review the Board will determine whether policies should be reaffirmed, amended, or discontinued.

Policies, at a minimum will address the following:

  • BSA/OFAC/AML
  • Loans
  • Shares, certificates, and share drafts
  • Collection
  • Asset/liability and funds management
  • Investments
  • Capital Adequacy
  • Liquidity
  • Disaster Recovery
  • Personnel
  • Security

PROMOTION OF THE CREDIT UNION

Directors are expected to promote the credit union to members and potential members as their primary source for financial services.  It is important that each Director has a full understanding of the credit union’s products and services and seeks to understand the service needs of members to fulfill this role. 

BOARD OF DIRECTORS QUALIFICATIONS

The Federal Credit Union Act and the FCU Bylaws contain the only eligibility requirements for membership on the board of the directors, which are as follows:

a) The individual must be a member of the credit union before distribution of ballots;

b) The individual cannot have been convicted of a crime involving dishonesty or breach of trust unless the NCUA Board has waived the prohibition for the conviction; and

c) The individual meets the minimum age requirement established by FCU bylaws.

Anyone meeting these three requirements may run for a seat on the board of directors if properly nominated. It is the nominating committee’s duty to ascertain that all nominated candidates, including those nominated by petition, meet the eligibility requirements.

The Federal Credit Union Act and the Bylaws do not prohibit a board of directors from establishing reasonable criteria, in addition to the eligibility requirements, for a nominating committee to follow in making the nominations, such as financial experience, years of membership, or conflict of interest provisions. The board’s nomination criteria, however, apply only to individuals nominated by the nominating committee; they cannot be imposed on individuals who meet the eligibility requirements and are properly nominated by petition.

The Board of Directors establishes the following additional criteria to be considered for board nomination to the Board of Directors:

* In Good Standing: Defined as a member who qualifies for membership in the credit union, maintains a minimum share balance on deposit with the credit union of $10.00 or more, has paid the membership fees as required, is not currently delinquent with the credit union on any loans, and has not caused the credit union a loss.

* Support the Credit Union: Any applicant should show that they support the credit union by using our products and services.

* Not habitually negligent: Any applicant should not be negligent in paying his or her financial obligations, understood to mean that an individual has been no more than 30 days delinquent on a loan(s) more than twice in the preceding year.

*Bondability verification: A Director, when elected or appointed shall consent to allow the Credit Union to verify bondability with our insurer.

*Formerly Discharged FAFCU Employees:  A formerly discharged employee shall not be considered for nomination or appointment to the Board of Directors

A Director, when elected or appointed shall subscribe that he or she will diligently and honestly perform the duties of the office and will not knowingly violate or permit to violate, any provisions of this act.

TRAVEL EXPENSE REIMBURSEMENT

In recognition of the important role our volunteer officials play in the success of our credit union, the credit union will reimburse board member expenses for bona fide credit union business.

Guidelines: Functions for which expenses incurred by an official member may be reimbursed include the annual membership meeting of the credit union, regular board meetings, local and state credit union league meetings, and state and national education conferences. Reimbursement of expenses incurred is based on the condition that the Board has approved the official attendance at any of the events specified.

Reimbursement expenses authorized

NCUA Letter 05-FCU-02 (Tax Consequences of Payment of Travel Expenses for FCU Volunteer Officials and Their Guests) discusses the authorization that Federal Credit Unions may reimburse volunteer officials and one guest per official for reasonable and proper costs incurred in carrying out official responsibilities. The reimbursement rule also requires that payments must be determined to be necessary or appropriate in carrying out official business and are in accordance with written policies and procedures, including documentations requirements. Additionally, the NCUA does not view payment of reasonable travel costs for a federal credit union official and one guest as compensation to the official or the guest.

To comply with the reimbursement rule, Forest Area Federal Credit Union adopts the following requirements to pay the reasonable and proper costs incurred by an official in carrying out the responsibilities of the official’s position. These costs may include travel expenses of an official and one guest to attend credit union related conferences and meetings:

a.            Reimbursable expenses are limited to the costs of transportation, lodging, food and conference registration fees, if required and must be submitted to the Board Chair or Vice Chair for approval.

b.            No lodging reimbursement can be approved without submission by the official of a listing of expenses supported by receipts.

c.             Any out-of-pocket expense will be reimbursed up to the approved limit as follows:                             1. Meals:              $50.00

                  2. Mileage:         Federal rate approved by the IRS .

                  3. Parking:          Actual cost supported by receipts

d.            Reimbursement limitations will be established as necessary by the Board of Directors upon recommendation from management.

e.            The credit union will maintain records of officials’ expenses and official reimbursement for inspection by auditors and examiners.

POLICY REVIEW

This policy will be made a part of the credit union’s overall policies and will be reviewed at least annually.

Reviewed June 18th, 2024