THE FIRM OF CBS CERTIFIED PUBLIC ACCOUNTANTS, LLC
Our staff at CBS Certified Public Accountants, LLC, represents over 85 years of combined experience in the credit union industry. We have responded to the needs and concerns of credit union boards, management, and supervisory committees, as well as members and staff with a strong commitment to asset-liability management, improving internal controls and providing guidance. In addition to audits, we have provided an array of services to credit unions over the years from reconciling bank accounts to implementing internal controls. CBS is located in Cleveland, Ohio. Our staff consists of six professionals, including three officers, and a support staff of three.
Our firm is educationally minded and we have spoken throughout the country on issues of board governance, financial understanding, and topics of importance to the board. We have been keynote speakers at CUSA Technologies user conferences and regional conferences. We have also published several articles in the Credit Union Journal.
CBS is a member of the Ohio Society of Certified Public Accountants and the American Institute of Certified Public Accountants. As a member of these organizations, the firm subjects its working papers to a peer review (SEE ATTACHED REVIEW) and provides its professional staff with continuing professional education, equal to or greater than levels established by the organizations. A copy of our latest peer review report is enclosed.
Many years ago a good friend and mentor posed a question to me asking, “Why would you ever want to work with a credit union that doesn’t want to be better?” That question encapsulates our firm’s philosophy in how we approach our relations with our credit union clients. For instance, learning from the mistakes of the Savings & Loan industry from the late 70s and early 80s we encouraged all of our clients to embrace Asset Liability Management over twenty years ago before it was mandated by NCUA. And now interest rate risk is at the top of NCUA’s list of risks to credit unions. That friend and mentor is Jack Brick of Brick & Associates, a major provider of interest rate risk solutions to the industry. Our firm not only provides independent review services for his 700 credit union clients but audits the software that drives the analysis.
In addition, we go beyond the numbers and technical side to see where we may play a role in enhancing a credit union for its members and employees. In focusing on the people side we spoke in 2014 across the country on the topic Facing Ethics: How Behaviors Affect the Workplace while publishing articles on ethics for both Credit Union Journal and CUToday. SEE ATTACHED ARTICLES The relationships we have formed for the betterment of credit unions reinforce what we have to offer and separates our relationship-oriented firm from the other run-of-the-mill transaction firms.
PRESENTATIONS AND TRAINING
As an added value for our credit unions, we conduct training sessions for boards of directors on a variety of subject matters pertinent to credit union operations, which are presented by our staff.
RESUMES OF ENGAGEMENT TEAM
Ron Schmidt, CPA, MBA is President of CBS Certified Public Accountants, LLC, and Credit Union Business Solutions, LLC. Choosing to serve an industry and people he loves, he has immersed himself in every facet of the credit union industry over the last thirty years. Being a leader in board education and knowledgeable of effective management, he has taken his interest in governance and management into the boardroom. He credits his ability for engaging board members from his experience in engaging kids, having coached baseball and hockey for many years. Ron is the co-author of How Am I Treating You? Living with Civility and Dignity which was released in December 2009. Ron is involved in many charitable concerns and is one of the founders of the Heights Civility Project, a local effort to engage citizens in their community. Ron is a graduate of the University of Kentucky and received a Master of Business Administration from CaseWestern ReserveUniversity.
Christine Cordiak, CPA is a Vice-President of CBS Certified Public Accountants, LLC, and Credit Union Business Solutions, LLC. In her twenty years with the firm, she has been instrumental in the formation of the firm’s outsourcing services for credit unions. In addition, she has advocated our clients’ introduction to asset-liability management. Chris has worked with Brick & Associates for many years including the audit of their ALM model. Our firm, with Chris’ leadership, provides the exclusive user validation audits of Brick & Associates seven hundred clients. She is a graduate of KentStateUniversity.
Celeste Isom, MBA is a graduate of UrsulineCollegein accounting and with a Master in Business Administration fromClevelandStateUniversity. Celeste is our audit manager, joining our firm fifteen years ago, she has continued our excellence in audit and out-sourcing controller services to credit unions.
UNDERSTANDING OF RELATIONSHIPS
The audit firm is engaged by the supervisory committee with the approval of the board of directors to perform an audit of the financial reporting of the credit union. The audit firm’s end-user is the credit union members who want assurance of the credit union’s soundness. The firm reports its finding to both the supervisory committee and the board of directors. The focus of the report is to encourage the credit union to be a better financial institution for its members
PROFESSIONAL LIABILITY INSURANCE
CBS is insured by Travelers for commercial general liability for $2 million.
We will retain the audit documentation for this engagement for five years from the date of our report. This audit documentation is the property of CBS Certified Public Accountants, LLC, and constitutes confidential information, as required by Section ET301 of the AICPA Code of Professional Conduct. However, we may be requested to make audit documentation available Ohio Division of Financial Institutions (ODFI) and to the National Credit Union Administration (NCUA) pursuant to authority given to it by law or regulation. If requested, access to such audit documentation will be provided under the supervision of CBS Certified Public Accountants, LLC personnel. Furthermore, upon request, we may provide copies of audit documentation ODFI and to the NCUA. ODFI and the NCUA may intend or decide, to distribute the copies of information contained therein to others, including other governmental agencies.
CBS has always freely given consultation to management, audit committee, and board at no charge. This includes assistance via telephone and e-mail and periodic meetings. Consultations of more extensive nature (e.g. specific projects) are billed at a separate daily fee or as a separate engagement.
REGULATIONS AND EDUCATION
CBS has a 25+ year history of providing educational sessions to boards, audit committees, and management. Our firm has published a wealth of articles in Credit Union Journaland more recently a 5 part series on ethics. Ron Schmidt is a frequent speaker in the industry along with his book How Am I Treating You? Living With Civility & Dignity, which can teach us a lot about human relationships. The firm’s workshop session Partnership for Success is directed at strengthening communication among boards and management.
CBS has never been litigated against nor have any of our clients cost the NCUA insurance fund one dime.
CREDIT UNIONS WE SERVE BOTH LOCALLY & NATIONALLY
Asset size noted for those credit unions with assets in excess of $100 million
ABCO Federal Credit Union $175M
Alliance Credit Union $ 101M
Bangor Federal Credit Union $112M
Bellco Federal Credit Union $114M
BMI Federal Credit Union $305M
Charter Oak Credit Union $635M
Cleveland Heights Teachers Credit Union
Commstar Credit Union
CP Federal Credit Union $325M
Diamond Credit Union $352M
Elkhart Farm Bureau Credit Union $355M
Emerald Group Credit Union
Faith United Community Credit Union
Firestone Federal Credit Union $240M
First Eagle Federal Credit Union
GenFed Federal Credit Union $185M
GPO Federal Credit Union $141M
HomeTown Federal Credit Union
CREDIT UNIONS WE SERVE BOTH LOCALLY & NATIONALLY
Kellogg Community Federal Credit Union $343M
Kemba Credit Union $$464M
New Hampshire Federal Credit Union $247M
Notre Dame Federal Credit Union $428M
NutmegState Federal Credit Union $337M
Novartis Federal Credit Union $128M
Ohio Teamsters Credit Union
Peninsula Credit Union $138M
Plain Dealer Federal Credit Union
Prevail Credit Union $230M
Rocky Mountain Law Enforcement $145M
CREDIT UNIONS WE SERVE BOTH LOCALLY & NATIONALLY (cont’)
SAFE Federal Credit Union $603M
Southern Lakes Credit Union
Tremont Credit Union $171M
Tyndall Credit Union $1B
UMassFiveCollege Federal Credit Union $312M
VacationLand Federal Credit Union $140M
Western Region Federal Credit Union
Winnebago Community Credit Union
**Ohio Teamsters Credit Union, Inc.
$14 Million in assets
Drew Megrey, CEO
** - Perform month-end closing and bank reconciliation
Dr. Jack Brick
Brick & Associates
Ohio Credit Union League
ASSET-LIABILITY MANAGEMENT ASSISTANCE
- Assist in the implementation of an ALM program.
- Prepare monthly ALM reports for presentation to the Board of Directors.
- Validation audits – ALM / IRR review