- 6.00 pm - 8.30 pm
PURPOSE OF GOVERNANCE RATING:
It provides information to members and stakeholders about the level of good governance practices of the credit union. It enables credit unions to obtain an independent and credible assessment of the quality and extent of their good governance. The rating process would also determine the relative standing of the credit union vis-àvis the best practices followed in the domestic as well as international organizations.
Credit unions can also use these ratings as reference and set benchmarks for further improvements such as a tool for assessing the internal strengths and weaknesses in a strategic planning session. The credit unions can also use the tool as an input to their annual Board retreat. The tool alerts the credit union on the areas to focus rather than “cookie cutter” approach.
Members and other stakeholders get benefited as they are able to differentiate credit unions based on degree of good governance practices. The tool can be used by the Credit Union Service Organization to promote good governance practices in credit unions. CULEG could propel awareness, objectively acknowledge and respond to governance issues, advance good governance practices and raise the bar of market image of credit unions.
WHAT CULEG IS NOT?
CULEG is not a certificate on statutory compliance. It is an internal self-regulation for the network deployed by the Credit Union Service Organization or federation.
ACCU trains the federation’s staff to acquire the necessary skills to interpret, analyze and rate the credit unions using the tool. The federations then, use the tool to assist credit unions to reach the standards.
The rating will be done by ACCU. The federations with the consent of ACCU designates auditor from their side, while ACCU verifies the audit they perform. The accreditation will be for two years period.
The CULEG process involves perusal of various documents from the credit union like agenda papers and minutes of Board and Board committees, reports to the regulatory bodies, offer documents, minutes of the Annual General Meeting and Extraordinary general meeting. It also involves meeting with top management including CEO, directors and Statutory Auditors, Internal Auditors and so on.