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Navy Federal Credit Union • 2013 Annual report
15
Input for the 2013 Annual Report
The Supervisory Committee provides the membership with an independent appraisal of the
safety and soundness of Navy Federal’s operations and activities. It does so in compliance
with the Federal Credit Union Act, the rules and regulations of the National Credit Union
Administration (NCUA), and Navy Federal’s bylaws. The Supervisory Committee ensures that
Navy Federal’s financial statements provide a fair and accurate presentation of its financial
condition and that management establishes and maintains sound internal controls to protect
the assets of the credit union. It also acts as your ombudsman by reviewing and responding
in writing to all letters and emails it receives from Navy Federal members. By maintaining an
open line of communication with the membership, the committee helps to ensure that you are
provided the quality of service that you deserve as member-owners of your credit union.
The Supervisory Committee employs the independent accounting firm of PricewaterhouseCoopers
LLP (PwC) to assist in meeting its responsibilities. The committee meets regularly with PwC to
evaluate audit results and to plan future audit work. PwC conducts quarterly procedures related to
selected operations and performs a comprehensive audit of the credit union’s year-end financial
statements. Their comprehensive year-end audit, Independent Auditor’s Report, appears in this
Annual Report.
Periodic supervisory examinations are also performed by NCUA, the regulatory agency for all
federally-chartered credit unions. In 2013, the NCUA evaluated Navy Federal’s financial condition,
safety, and soundness, and supervisory contacts were conducted by the Consumer Financial
Protection Bureau (CFPB). Navy Federal’s asset size places it under the regulatory supervision
of the CFPB for compliance with Federal consumer financial laws.
Based on the results of the PwC audit, the NCUA report, input from the CFPB, and other
information provided to the Committee, it is the opinion of your Supervisory Committee that
Navy Federal continues to be financially strong, has good controls, and that management is
capable of administering an eective compliance program.
Michael C. Wholley
Chairman