The supervisory committee is responsible for ensuring that the officials and officers: Meet required financial reporting objectives; and Establish practices and procedures sufficient to safeguard members’ assets. To meet its responsibilities, the supervisory committee shall determine whether: Internal controls are: Established and effectively maintained to achieve the credit union’s financial reporting objectives; and Sufficient to satisfy the requirements of the supervisory committee audit, verification of members’ accounts, and the supervisory committee’s additional responsibilities; The credit union’s accounting records and financial reports are promptly prepared and accurately reflect operations and results; The relevant plans, policies, and control procedures established by the board are properly administered; and The board’s plans, policies, and control procedures are sufficient to safeguard against error, carelessness, conflict of interest, self-dealing, and fraud. The supervisory committee shall submit: A report on the annual audit to the board; and A summary of the report on the annual audit to the members at the annual meeting of the members. The supervisory committee shall conduct or cause to be conducted and shall submit to the board, supplementary audits as the supervisory committee deems necessary. The supervisory committee shall submit written reports periodically to the board addressing activities since the last report. The supervisory committee audit of a credit union shall occur at least once each calendar year and shall cover the period elapsed since the last audit period. The supervisory committee annual audit shall meet the following minimum guidelines: A credit union with assets over $250,000,000 shall have an opinion audit of the credit union’s financial statements performed by an independent licensed certified public accountant; and A credit union with assets of less than $250,000,000 may satisfy the audit requirements by: An opinion audit of the credit union’s financial statements performed by an independent licensed certified public accountant; In accordance with the provisions of paragraph (3) of this subsection, an agreed upon procedures engagement performed by a qualified person with appropriate knowledge of auditing concepts and credit union procedures; or An audit performed by the supervisory committee or the credit union’s internal auditors. The following minimum procedures shall be satisfied under paragraphs (2)(ii)2 and (2)(ii)3 of this subsection: Determine that the reserve fund is sufficient in accordance with § 6-703 of this title; Determine that the credit union meets minimum net worth requirements in accordance with § 6-702 of this title; Review and test the bank statement reconciliations by testing for mathematical accuracy and ensuring that reconciling items are reasonable and clear promptly; Perform an unannounced cash count at some time during the period covered by the audit and ensure that the amount of cash counted agrees to the general ledger; Review a sufficient number of current and delinquent loans to determine whether or not they are in accordance with the credit union’s underwriting policies and procedures as established by the board; Determine that the trial balance listing of loans agrees with the general ledger; Determine that the allowance for the loan and lease loss account meets the minimum standards required under § 6-704 of this title; Determine that all loans that are delinquent 60 days or more are reported to the board monthly; Determine that the investment subsidiary or list of investments agrees with the general ledger by performing the following procedures: Compare the balance of investments and accrued interest receivable from the subsidiary ledger to the general ledger; Choose a sample of investments and compare the market value per the subsidiary ledger to an outside source; Test the accrued interest and compare it to the subsidiary ledger; Test a sample of investment purchases or sales during the audit period for proper authorization to make sure that the accounting treatment is correct, compare the terms of the transactions to a broker advice, and make sure that the investment is in accordance with board policy; and Confirm all investments with any depository institution, broker, or third party safekeeping agent, or inspect the original certificate, if it is in the possession of the credit union; Determine that the trial balance listing of shares and deposits agrees with the general ledger; Perform a minimum of 20 share and deposit dividend and interest calculations paid during the audit period; Obtain a list of all overdrawn share and deposit accounts and determine that management is attempting to collect these items; Obtain a listing of other asset and other liability accounts, make a selection of five of these accounts including any suspense or clearing accounts, and perform the following procedures: Obtain reconciliations of the selected accounts and compare the balance to the general ledger; Test the mathematical accuracy of the reconciliation; and Determine whether any reconciling items have been outstanding for more than 30 days; Perform a minimum of 20 loan interest calculations collected during the audit period; Review the minutes of the board meetings to ensure that they document relevant decisions, including decisions about charged off loans, interest rate changes, policy changes, interest and dividend rates, personnel issues, and the annual budget; and Other auditing procedures as are deemed necessary by the board, the Commissioner, or the supervisory committee. At least once every 2 years the supervisory committee or its designee shall verify the accounts of the members in accordance with paragraph (2) of this subsection. The verification shall be performed using one of the following methods: A 100% verification of the share and loan accounts of all members; A statistical sampling of member share and loan accounts done in connection with an opinion audit of the financial statements performed by a licensed certified public accountant; or A statistical sampling method that provides a random selection that is expected to be representative of the membership. A credit union with assets in excess of $250,000,000 shall have an internal audit function in accordance with paragraph (2) of this subsection. The supervisory committee shall: Hire one or more internal auditors to assist the supervisory committee in the performance of the audit duties of the supervisory committee; Adopt and execute an annual internal audit plan that adheres to board policies and includes: An evaluation of internal controls; and Operational procedures; and Direct the duties of the internal auditor. Any agreement between the supervisory committee and an outside auditor shall be documented by an engagement letter that specifies the terms, conditions, and objectives of the arrangement. All work performed by the supervisory committee, outside auditors, or internal auditors shall be documented by appropriate work papers. The Commissioner shall have access to the work papers for a period of up to 3 years after the completion of the audit procedure. At any time, by a unanimous vote, the supervisory committee may suspend a director, an officer, or a member of the credit committee for cause. Subject to the provisions of subparagraph (ii) of this paragraph, the suspension will take effect immediately and stay in force until the board convenes a special meeting of the members to act on the suspension. The meeting of the members shall take place no later than 15 days from the date of the vote to suspend, for the purpose of voting on the suspension. The supervisory committee shall notify the Commissioner in writing immediately at the time of the suspension of the director, officer, or member of the credit committee. The supervisory committee shall send promptly to the Commissioner a copy of the annual audit and all recommendations, charges, and significant findings that the supervisory committee presents to the board.