By Jim This
Strong boards and audit committees recognize that recruiting and grooming effective leaders is key to maintaining good governance, financial oversight, and strategic direction. One of the best ways to do this is by using an Associate Board/Audit Committee Member Program.
An Associate Board/Audit Committee Member Program is a leadership initiative designed to introduce potential future board/audit committee members to the responsibilities and operations of a credit union’s board of directors and/or audit committee. These programs help cultivate new talent, ensure continuity in leadership, and provide an opportunity for individuals to contribute without the full legal and fiduciary responsibilities of an elected member.
‘Proven Leadership Pipeline’
Associate Board Members serve as a proven leadership pipeline for full board and audit committee positions – either through appointment or election. Since they’ve already gained experience, training, and exposure to governance, they are well-prepared to step into official roles as vacancies arise.
When launching an Associate Board/Audit Committee Member Program, the board should adopt a formal policy outlining terms, expectations, responsibilities, and governance. This ensures clarity, consistency, and accountability.
Key Areas of Participation
Associates are invited to participate in key areas of governance:
- Attend regular meetings – with the exception of executive sessions.
- Associates are welcome to ask questions and express their opinions. They are not permitted to vote on proposals, however.
- Attend planning sessions to learn more about the credit union and its strategic direction.
- Participate on board committees.
- Attend credit union-related training as budget permits.
About the Job
Associate Board and Audit Committee members are appointed by the Board to a specific term – normally one or two years. A two-year term is particularly effective because it allows for staggered replacements, ensuring continuity and knowledge retention while bringing in fresh perspectives.
Normally the board and audit committee will work with one or two associates at a time. The board and audit committee should discuss qualifications being sought in associates with specific attention given to desired areas of expertise and/or diversity. Board and audit committee members should brainstorm candidates meeting these qualifications and prioritize people to approach.
Background Check
Conducting a background check for Associate Board/Audit Committee members is a best practice to ensure the integrity, financial responsibility, and trustworthiness of individuals serving in leadership roles. Since credit unions handle sensitive financial matters and operate under regulatory oversight, thorough vetting helps protect the institution and its members. Associate members will also be governed by the credit unions conflict of interest policies.
The invitation to join the program is normally delivered by the board or audit committee chair. It is accompanied by a written document outlining the term and expectations.
The Value of Mentorship
Assigning a board or audit committee mentor to each associate member helps bridge the gap between learning and leadership, ensuring associates gain valuable insight while feeling supported and engaged.
Many progressive credit unions already have successful associate member programs in place. Networking with peers is an excellent way to identify best practices and obtain sample policies.
James L. This, Ph.D., is with Rochdale VLI. For more information, go here.