FMFCU Increases Internal Audit Efficiency by Partnering with Team of Targeted Experts
Financial Services: Credit Union
FMFCU is currently approaching $1 billion in assets and has been providing financial products and services to residents and organizations throughout the Delaware Valley and beyond since 1970. The credit union has over 80,000 members, 2,000+ partners, over 30 branches, ATM access at nearly 30,000 surcharge-free machines throughout the national CO-OP ATM and 24/7 access to member accounts.
FMFCU engaged with RKL Risk Management for internal audit, IT audit, cybersecurity and compliance services.
As the pace of compliance and regulatory mandates accelerated, FMFCU was facing an ongoing challenge of keeping current in the areas of internal audit, IT security and compliance. This triggered the need for a co-sourcing arrangement with a third-party professional firm who had the expertise, experience and ability to augment the FMFCU staff.
Michael B. Magnavita, Executive Vice President, FMFCU, working with the credit union’s supervisory committee, recognized the challenge and took action. He brought in a few firms who didn’t have answers to his questions, so he keep searching for the right fit. RKL Risk Management’s skill set included internal audit, IT audit and a command of the latest regulatory issues, allowing them to take a holistic view of FMFCU’s internal audit function. RKL Risk Management’s skill set and depth of experience in the industry differentiated them from other firms and made them the clear choice.
Mike hired RKL Risk Management for a co-sourced solution. The “a la carte” approach really worked for FMFCU – they gained more value from RKL Risk Management than from a costly consultant or from adding headcount. Another benefit was flexibility of scheduling. As things popped up and internal staff were pulled in different directions, the RKL Risk Management team was able to supplement without stalling the process. This helped maintain business continuity for FMFCU and keep the internal staff accountable for meeting deadlines.
The co-sourcing solution delivered a more cost-effective and efficient internal audit process, while allowing FMFCU’s staff to focus on core competencies. FMFCU gained a trusted advisor in RKL Risk Management, who applied innovative ideas and best practices that they learned from their experiences in the industry. The result was cost-savings and piece of mind for FMFCU’s supervisory committee and management team.
The co-sourcing solution has evolved into a full outsourced solution at FMFCU. In the meantime, the lead internal audit resource at the credit union retired, and FMFCU’s supervisory committee hired RKL Risk Management without deliberation.
RKL Risk Management delivered intellectual capital and a targeted skill set with a team of experts that partnered with FMFCU’s compliance team. They used their findings to suggest and implement a better, smarter, and quicker approach to the internal audit function. FMFCU benefited by achieving deeper audit coverage for less cost by alleviating the need to replace one full time employee.