Listserv Topic: Consent Agendas

CUNA CFO Council
September 20, 2006

Question

Our board wants to use a "consent agenda" for those routine items that appear on the monthly board meeting agenda. I would appreciate any feedback from anyone who is using, or may be implementing, a consent agenda.

Answer

Consent agendas speed along meetings. Items on the consent agenda can still be discussed, but board members don't have to make motions and approvals for each individual item.

A consent agenda works well as long as the board understands that it is a
"consent" agenda and the items are not intended to be reviewed at the
meeting. Questions regarding specific issues are welcomed.

Usually the topics on the consent agendas cover duties that are delegated
to the CEO, but that require board knowledge and approval. It saves a lot
of time and the board knows where to look when it has questions about
any of these issues.

The executive committee of the board of directors usually determines what goes on the consent agenda. Any board member can pull any item off the consent agenda for discussion at the board meeting. It is a strong expectation that even if something is on the consent agenda, that all board members have read and understand the contents. Some credit unions take the financials off the consent agenda several times a year for thorough discussion.

Items included on consent agendas may include:

• CEO’s report
• Previous minutes
• Statement of financial condition
• Statement of income and expense
• Key financial ratios
• Investment transaction reports
• Corporate Visa accounts
• Membership reports
• Rate changes
• Loan reports
• Delinquency reports and charge-off statistics
• Loan charge-off recommendations
• Share charge-off recommendations
• Monthly investment activity report
• Investment portfolio mix
• Unrealized gain/loss on investments
• Technology reserve transfer
• Mortgage production report
• Credit union goals report

Because the consent agenda streamlines the meetings, the board has more time to focus on planning, strategic, and philosophical issues. A variation is the use of an electronic boardroom to "post" the information for the board meeting, and board members "vote" in this same forum, which allows the board to use its limited time for more pressing matters.

We are also working towards a consent agenda. We use an electronic boardroom to "post" the info for the board meeting, and board members would be able to "vote" in this same forum. Our rationale is that our limited board time is better used on other matters.