Committee Charters

Asset/Liability Committee

The Asset/Liability Committee (ALCO) is comprised of at least seven (7) voting members: the Chief Executive Officer (CEO), the Chief Investment Officer (CIO), the Chief Risk Officer (CRO), the Chief Financial Officer (CFO), at least one (1) member of the Board and at least one (1) volunteer with an asset/liability management or investment management background. The Board and volunteer members of ALCO will be appointed for one-year terms, following the Board’s annual organizational meeting.

The members of ALCO will appoint, for one-year terms, the chairman and vice chairman of the committee from among the Board and volunteer members appointed to ALCO. The chairman will be responsible for establishing meeting times, dates, calling special meetings, setting meeting agendas and the retention of accurate meeting minutes. The vice chairman will assume the chairman's responsibilities in the chairman's absence. A majority of the members will constitute a quorum for the purposes of conducting business if at least two (2) Board /volunteer members of ALCO and two (2) management members of ALCO are present, in person or telephonically. The ALCO will meet at least monthly.

Board delegates to ALCO the authority to:

  • Approve appropriate actions and operating policies necessary for managing and controlling Catalyst Corporate’s balance sheet risk, including establishing risk measurement benchmarks and goals.
  • Approve the assumptions and procedures used to model indexes that serve as references in financial instrument coupon formulas.
  • Establish the criteria for setting rates on all loans and capital accounts (PCC & MCA) and other types of shares and deposit accounts. This rate -setting authority is limited by the Board’s annually approved budgetary restrictions.
  • Establish the test criteria for the evaluation of investments prior to purchase.
  • Establish the due diligence, or risk analysis, criteria for any new investment type or transaction not previously owned or marketed by Catalyst Corporate.

ALCO has delegated the daily administration of risk to management. The CIO is responsible for the formulation of investment and funding strategies and conducting all investment activities within the limits of Catalyst Corporate's ALM and Investment Policies. The CRO is responsible for the evaluation of counterparty credit risk and is responsible for the ongoing monitoring of compliance with Catalyst Corporate's Asset/Liability Management, Member Credit, and Investment Policies.

While it is management's responsibility to develop Catalyst Corporate's balance sheet strategies, ALCO is responsible for reviewing and monitoring these strategies, including the parameters for the underlying assumptions used in any risk/return analysis.

ALCO and certain members of Catalyst Corporate’s management share responsibilities for managing Catalyst Corporate’s liquidity risk as shown in the Contingency Funding Plan (CFP). ALCO will:

  • Actively monitor Catalyst Corporate’s liquidity position and liquidity stress test results, at least on a monthly basis.
  • Review Catalyst Corporate’s liquidity risk management process to ensure that it adequately identifies and quantifies risk exposure, at least annually.
  • Ensure that the reporting process related to liquidity risk communicates accurate, timely, and relevant information about the level and sources of liquidity risk exposure.
  • At least annually, review and approve liquidity stress test assumptions.
  • Annually review and approve the CFP.
  • The ALCO Chairman will report the annual approval of the CFP to the Board.

Enterprise Risk Management Committee

The Enterprise Risk Management Committee (ERMC) will be comprised of at least five (5) individuals appointed by the Board; the Chief Financial Officer (CFO), the Chief Risk Officer (CRO), and two volunteers appointed by the Board that may or may not be members of the board of directors and eventually one outside professional with post-graduate education; an actuarial, accounting, economics, financial, or legal background; and at least five years experience in identifying, assessing, and managing risk exposures. Members of the committee are appointed for one (1) year terms, following the Board’s annual organizational meeting. The Committee meets at least monthly.

The ERMC ensures the reliability of the enterprise-wide risk management practices of the corporate in order to limit the impact on the corporate’s capital from enterprise and systemic risks. Accordingly, the committee will ensure the integrity of the framework through which the board of directors and senior management are able to determine:

  • Where all the corporate’s risk exposures lie
  • The amount of risk the corporate has in each exposure and the maximum levels it is willing to accept
  • How the risk exposures are changing
  • The appropriate risk controls to limit overall risk to targeted levels

The ERMC is responsible for overseeing the corporate’s risk management practices and must report at least annually to the board of directors.

Supervisory Committee

The Supervisory Committee is composed of at least three (3) persons, but not more than the number set forth in the Bylaws of Catalyst Corporate Federal Credit Union ("Catalyst Corporate"). The members are appointed by the Board for terms of two (2) years, with terms not necessarily expiring in the same year. The Supervisory Committee elects its own officers each year. Its primary function is to assist the Board in fulfilling its oversight responsibilities, by reviewing the financial information that will be provided to Catalyst Corporate's member/owners, the system of internal controls that management and the Board have established, and hire and manage the external and internal audit firm(s).

In meeting its responsibilities, the Supervisory Committee is expected to:

  • Act in all respects to comply with the provisions of applicable law (including but not limited to the Federal Credit Union Act, the Regulations of the NCUA, and the Bylaws of Catalyst Corporate) that relate to the rights, duties, and obligations of the Supervisory Committee, provided that, pursuant to the conditions of Catalyst Corporate's Compliance Policy, Catalyst Corporate retains the right to challenge or contest laws, rules and regulations by appropriate proceedings diligently pursued.
  • Determine that management and the Board have followed through, as necessary, to ensure that proper corrective action has been taken in response to any Document of Resolution (DOR) issued by the NCUA, and in response to any Other Examiner Finding issued by the NCUA.
  • Make or cause to be made such supplementary audits as may be ordered by the Board, and submit reports of the audits to the Board of Directors.
  • Cause an annual opinion audit (which will include account verification) to be made by an independent CPA firm, submit the audit report to the Board, and submit a report to Catalyst Corporate's membership at the corporate's next annual meeting. Submit a copy of the audit report and the reportable conditions letter (i.e., management letter) to the Director, Office of National Examinations and Supervision (ONES), NCUA, within thirty (30) days after receipt by the Board.
  • Internal Audit Process - Contract with an independent CPA firm(s) to prepare an annual risk-based audit plan, and then to execute that audit plan over a one to three year period. Assure the independence of the independent CPA firm, including the review of non-audit services and related fees. Meet with the President/CEO and other members of Catalyst Corporate's management about significant risks or exposures, and assess the steps management has taken in order to minimize such risks to Catalyst Corporate.
  • Following each meeting of the Supervisory Committee, provide to the Board copies of Supervisory Committee minutes and other documents and relevant information as the Supervisory Committee believes is warranted, along with related verbal communications, in order to keep the Board fully informed about the operational status of the Supervisory Committee and of the Internal Audit Department.

Technology Steering Committee

Technology Steering Committee is composed of at least six (6) individuals appointed by the board of directors: the SVP – Chief Operating Officer, the SVP – Chief Risk Officer, the SVP – Chief Financial Officer, one (1) member of the board of directors and two (2) volunteers with an information technology or operations background. The Board and volunteer members of the Technology Steering Committee are appointed for one (1) year terms, following the Board's annual organizational meeting. The Committee meets at least quarterly. The chairman of the committee is appointed by the Board.

The Technology Steering Committee oversees and directs the technology efforts of the corporate to ensure the technology infrastructure provides secure, reliable, responsive, and scalable product offerings to members.

The responsibilities and duties of the committee are:

  • Periodic review, discussion, and approval of technology initiatives that are required to meet strategic goals.
  • Review and approval of the technology capital budget prior to incorporation into the corporate's annual budget.
  • Regular review and monitoring of actual expenditures to the approved capital budget.
  • Provide support for the resolution of IT audit, exam, and assessment issues.
  • Review and input into the annual Technology Plan that is prepared to support the corporate's strategic plan.
  • Annually present the corporate's Technology Plan to the board of directors.
  • Provide regular updates to the board of directors regarding technology initiatives, capital budget, and capital expenditures.
 

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