By: Darlene Heather, Chief Internal Auditor
Each October, the Audit Committee of the Board of Directors provides notice to our membership on our website and in our VyStar Facts newsletter that VyStar’s external audit firm—Nearman, Maynard, Vallez, CPAs, P.A.—is conducting our annual verification of member accounts. A random sample of member accounts from VyStar’s entire membership is selected by our external audit firm for verification. Our external audit firm requests that the selected members verify that the account balances on the members’ September statement provided by VyStar agree to their personal records for their savings, checking, loan and/or credit card balances. Any discrepancies reported to VyStar’s external audit firm are researched and resolved.
Why does VyStar perform this verification?
Because VyStar is a federally insured, state-chartered credit union with total assets of $500 million or greater, the Audit Committee must obtain an annual audit of its financial statements performed in accordance with generally accepted auditing standards (GAAS) by an independent person who is licensed to do so by the state or jurisdiction in which the credit union is principally located. VyStar’s assets are almost $6.2 billion; credit unions with assets that are $500 million or more must obtain this annual verification.
In support of the required audit of the financial statements, VyStar’s regulators require that the Audit Committee must cause the accounts of the membership to be verified against the records of the credit union at least once every two years. VyStar has decided to conduct the membership account verification annually in October.
Why is this important?
By performing a verification of member account balances, VyStar’s external audit firm is able to get assurance that the credit union’s general ledger accounts for savings, checking and loan balances are fairly stated on the financial statements. Additional audit procedures may be performed by the external audit firm to gain assurance that the members’ account balances are accurate and fairly presented on the credit union’s annual financial statements.
What does this mean to you?
If one of your accounts is selected for verification, you will receive a letter from VyStar’s Audit Committee explaining the process to complete the verification form and report discrepancies, if any, and where to mail the completed verification form.
Your information is safe. We have signed a confidentiality agreement with our external audit firm to protect your account information. Your information will be provided to them under the provisions of the Gramm-Leach-Bliley Act, commonly known as the Privacy of Consumer Financial Information Act.
In accordance with federal regulations, VyStar’s external audit firm must maintain strict confidentiality and security over your personal account information. (VyStar’s Privacy Notice can be found on our website under the Privacy Statement tab located at the bottom of VyStar’s home page.)
We appreciate you responding to the verification and returning the completed form to our external audit firm.