Role of Internal Audit, A CEO’s Perspective

1951, Marietta GA$1B+ Assets200 FTEs

9 Member Centers11.3% NW, .98% ROAA

18% Mbr Grwth since 2009

Pillar 1 ‐Member

Enhance Member experience and Member value by making better use of our data for better decision making about products, channels, and future investments. For example, Marketing, Technology, etc.

Pillar 2‐ Continuous Improvement

Achieve a lower cost structure by continued improvement in efficiency and constantly asking how we can do things better, including how we can better leverage the technology investments LGE has made. 

Pillar 3‐ Technology & Channels

Drive the bulk of our channel investment in e‐delivery and self‐service. Make practical investments in future Member Centers.

Pillar 4‐ People

Be the top sales & service Credit Union in the region by continuing to develop the sales & service culture.  For example, extend beyond the front line, improve measurements, training, refine responsibilities by role, etc.

At the end of the day……

• LGE follows a 3 Lines of Defense Model• Everyone at LGE share the same objective

• Serving members• Grow and expand the organization• Maintain the security of member and CU data• Mitigate/eliminate risk in balance with 

operational effectiveness and efficiency

Oversight

• Board & Senior Management• Commitment to Integrity & Ethical Values• Exercise Oversight• Structure, Authority, Responsibility• Competence• Enforcement of Accountability

1st Line

• Policy, Procedure, Process• Risk Assessment• Direct Oversight• Communication• Quality Control & Monitoring

2nd Line• Risk Management

• Compliance, Risk Mitigation, Legal, Loss Prevention, Monitoring, Information Security

• Various Board & Management Committees• SC, ALCO, IT, MBL

• External Reviews and “audits”• FHLB, Compliance, Vendor

3rd Line

• Supervisory Cmte/Internal Audit• Independent• Objective• Consultative

• External Audit and Examinations• Financials & Accounting• State and Federal

Challenges

• Culture• Perceptions• Pride• Territory/Lines of Responsibility• Willingness of Stakeholders to accept

Critique

Current State

• History• Build Creditability• Collaboration, Communication,

Coordination• Willing to Find Middle Ground• Understanding Roles

History….

A start…

Present…

Our Future…