b'SUPERVISORY COMMITTEE REPORTOn 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 crucial role of the Supervisory Committee is to complete annual audits of the credit union, and accordingly, the committee has engaged an independent certied public accounting rm to conduct annual nancial statement audits of the credit union through 2023.The most recent nancial statement audit, conducted for the period ending December 31, 2022, validated the healthy nancial position of the credit union as a solid foundation for the future.Based on the activity of our external and internal auditors and examiners and our observations, we can report that the credit union maintains a high level of nancial safety, soundness, and compliance with laws and regulations.Kauai Federal Credit Union continues to provideoutstanding nancial services to its members.On the Supervisory Committee, we are proud to volunteer our time to serve Kauai Federal 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 Committee has two general goals. Ensure that management nancial reporting objectives have been met, and management practices and procedures safeguard members assets. To meet these two general goals, the committee determines whether credit union management has:1. Established adequate internal controls.2. Prepared accounting and nancial reports that accurately reect operations and results.3. Administered the Boards policies and plans.4. Established controls and procedures to safeguard against errors, conicts of interest,self-dealing, and fraud.The committee makes these determinations primarily through internal and external audits.I would also like to thank committee members Nannie Apalla (secretary), Jamilee Jimenez, Jason Shimauchi, and Kimberly Torigoe, 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.Respectfully yours,Mark KunimotoChairperson, Supervisory Committee'