SUPERVISORY COMMITEE CHAIR REPORT

The Supervisory Committee plays a vital role at FirstLight Federal Credit Union; they ensure that the member’s assets are safeguarded by making certain the credit union is operating properly, efficiently and has adequate internal controls to minimize risk. They have broad oversight authority to hold a credit union’s Board of Directors and senior management accountable for fulfilling their responsibilities in the interests of the credit union’s members, and for operating according to sound business, ethical and regulatory standards. The committee also oversees accuracy of financial records, protects the welfare of the credit union and its members against fraud, along with implementing cyber security solutions to protect against potential threats.

Your Supervisory Committee is comprised of five volunteer members appointed by the Board of Directors. The committee oversees the internal audit function which conducts internal audits and carries out its work independently, subject to the credit union by-laws, the Internal Audit Charter and most recent the Supervisory Committee Charter. Our audit plan emphasizes testing internal controls and assuming compliance with applicable laws, rules, and accounting practices. They also oversee inquiries to address any issues raised by members and prepare reports, as appropriate.

During 2022, the Supervisory Committee engaged the accounting Firm of CliftonLarsonAllen, LLP for the 12-month period ending June 30, 2022. All the audits, reviews and examinations conducted during the period conclude that your credit union remains financially sound, is well-managed and operates in compliance with federal laws, regulations, and policies.

It is the opinion of the Supervisory Committee that FirstLight Federal Credit Union’s policies, procedures and management practices are sound. Such opinion is based upon Supervisory Committee internal audits, the independent external audits, and the NCUA examination report.

The Supervisory Committee members are all volunteers and serve without compensation. Committee members are:

· Sylvia Duarte, Chairperson/Secretary

· Marcia Heller, Vice-Chairperson

· Ralph Adame

· Gilbert Andujo

· Richard Holt

I, as Chairperson of the committee, express my sincere appreciation to the members of the Supervisory Committee who give of their time and bring their expertise to the committee. Also, I extend my appreciation to the Internal Audit Department and Board of Directors, management and staff for their continued support and cooperation.