SUPERVISORY COMMITTEE Annual Report - Evhen Lylak

In April of 2007, the Ukrainian Federal Credit Union Board appointed its Supervisory Committee for the 2007-2008 year. Regular members Evhen Lylak (Chair), Eric Peterson, Jerry Tysiak, and Bohdan Zakharchishin, whose terms continued, were joined by appointed board member pro-tem, George Hanushevsky.

            To ensure that management’s financial reporting objectives have been met, and that practices and procedures are in place which safeguard and protect the interest of the members and the assets of the Credit Union, the Supervisory Committee engaged an independent accounting firm - The Bonadio Group to perform a certified audit of the Credit Union’s financial statements.  The SC received a written report from Bonadio that provided unqualified support for the financial condition and management practices of the Ukrainian Federal Credit Union.  The Supervisory Committee is satisfied with the financial condition of the UFCU based on reports provided by various the external auditors (the Bonadio Group, and the NCUA) and the internal audits and examinations conducted throughout the course of the year  by the Supervisory Committee  and the Internal Auditor. The Supervisory Committee met with management to review the detailed responses of the corrective actions that management provided to address the exceptions stated in the reports in a timely manner.   The Supervisory Committee reviewed the reports of the Internal Auditor, Mr. Patrick Fahrer, in regard to the internal controls at the main office in Rochester (and at the other branches - Albany, Boston, Sacramento, Syracuse, Portland) and has verified the condition of UFCU reported control environment meets the criteria set forth by the NCUA.

            The Supervisory Committee has met regularly with UFCU management over the past year and based on our review of management issued financial and operating reports the Supervisory Committee believes that management  is taking appropriate action to implement the Board of Director’s approved strategic plans and is maintaining a high quality of service  to its membership.  Over the course of the year, the SC has met with the Board on a monthly basis and held its own separate committee meetings throughout the year to fulfill its fiduciary responsibilities.  A plan of work was established at the initial committee meeting in April 2007, and that plan together with all the minutes generated by the Supervisory Committee during the year are on record at the offices of the Credit Union.    

            In summary, the results of the audits performed by both internal and external auditors, and the periodic reviews of the Credit Union’s practices and procedures by the Supervisory Committee for the 2007 – 2008 year would support that the Ukrainian Federal Credit Union is being managed, operated, and guided in a financially safe and sound manner.