Supervisory Committee's Report

Charlotte Alexander, Chair Mark Bloodgood Terri Hansen Willard Loper Susanne Swaggerty

The Supervisory Committee is responsible for evaluating SESLOC's operations in several areas, as well as overseeing internal controls
to ensure that credit union practices and procedures safeguard
member assets.

Supervisory Committee members meet monthly to review financial statements and to ensure an accurate and fair representation of SESLOC's financial condition. Supervisory Committee members also meet regularly with the SESLOC Board of Directors and members of the management team to review internal controls of various departments.

In 2008, the Supervisory Committee engaged the certified public accounting firm of Clifton Gunderson, L.L.C. to audit and validate SESLOC's statements of financial condition and to administer reviews of internal controls and financial procedures. Our findings, and those of the independent auditors, indicate that SESLOC continues to be financially sound, well-managed and responsive to changing economic conditions and the needs of our members.

On behalf of 2008 Supervisory Committee members Mark Bloodgood, Terri Hansen, Susanne Kelley, Willard 'Bill' Loper and myself, thank you for allowing us to serve you and our credit union.

Charlotte Alexander, Chair