In an major effort to push credit unions, vendors, and third parties to develop some classic models for analyzing and designing a new future for compliance execution, CU*Answers, the 100% credit union-owned cooperative is sponsoring two contests that offer to pay a total of $10,000 to make it happen. “The time to complain about the ‘ghost’ cost of compliance is over,” says CEO Randy Karnes, “It’s time to act! Every income statement should call these costs out in black and white. What would your examiner say the next time he sees the mounting cost of examinations is documented and discussed in board minutes? Advertising that you track to attack in every P&L statement is priceless!”
AuditLink, the CUSO’s audit and compliance arm, announced that they will hold two contests to develop a template to account for the cost of compliance and then to put it into practice. The first contest begins on July 8th and revolves around getting CEOs, CFOs, and compliance professionals to develop an outline and process to actually account for compliance related costs. Deadline for entry is September 30th.
Beginning January 1, 2015, the second contest will revolve around the application of the templates in a real world environment in which compliance expenses are actually accounted for and recognized on the expense statement. Each contest will have three winners with first place receiving $2,500, second place receiving $1,500, and third receiving $1,000.
“We want to call out the teams that try, not just whine. If we have to pay people to get started then it’s money well spent. Innovation does not come from complaining about our circumstances—it comes from taking the first step to change them,” Karnes concludes.