b'SUPERVISORY COMMITTEE REPORTAloha kakou,On behalf of the Supervisory Committee, I am pleased to report that Kauai Federal Credit Union complies with the National Credit Union Administration (NCUA) audit requirements.A key role of the Supervisory Committee is to complete annual credit union audits. Accordingly, the committee has engaged an independent certied public accounting rm to conduct a yearly credit union nancial statement audit through 2024. The most recent nancial statement audit, conducted for the period ending December 31, 2023, validated the healthy nancial position of the credit union as a solid foundation for the future. We have also engaged other independent auditors to perform annual audits over required regulatory matters and processes within the organization. We also inter-nally performed audits over controls and procedures impacting the Credit Union.Basedontheactivityofourexternalandinternalauditorsandexaminersandour observations, we can report that the credit union maintains a high level of nancial safety,soundness,andcompliancewithlawsandregulations.KauaiFederalCredit Union continues to provide outstanding nancial services to its members.On the Supervisory Committee, we are proud to volunteer our time, serving Kauai Fed-eral Credit Union members by acting as liaisons between you and your credit union.As has been the case in previous years, NCUA guidance provides that the Supervisory Committeehastwogeneralgoals.Ensurethat(1)managementnancialreporting objectives have been met and (2) management practices and procedures safeguard members assets. To meet these two general goals, the committee determines whether credit union management has (a) established adequate internal controls, (b) prepared accountingandnancialreportsthataccuratelyreectoperationsandresults,(c) administered the Boards policies and plans; and (d) established controls and proce-dures to safeguard against errors, conicts of interest, self-dealing and fraud. The com-mittee makes these determinations primarily through internal and external audits.IwouldalsoliketothankcommitteemembersJamileeJiminez(Secretary),Jason Shimauchi, and Cyndi Ayonon, committee member and Board representative, for their time and service to the credit union.Finally, Id like to thank the Kauai Federal Credit Union staff, management team, and Board of Directors for supporting the Supervisory Committee. We could not succeed without you.Me ka mahalo nui (With much gratitude),Nannie Ann Astillero Apalla'