From Outsourced to Co-sourced: Carthage Savings’ Internal Audit Transformation
Carthage Savings, a commercial bank under the umbrella of a depositor-owned “mutual” bank holding company, serving Jefferson and Lewis Counties, has provided banking services for over 135 years. With a strong financial foundation and a commitment to community-focused banking, the institution manages approximately $300 million in assets and operates three full-service branches and one LPO.
As part of its succession planning, Carthage Savings faced a vacancy in its internal audit function and sought a trusted partner to fill the gap. After hearing from another financial institution about the great experience they had with Wolf & Company, they engaged Wolf’s Internal Audit team to provide outsourced internal audit support.
Challenge
Carthage Savings underwent a leadership transition that changed its internal audit structure. While building and training their internal audit team, they needed support to keep audits on track and meet regulatory requirements.
They also sought a firm with the expertise to handle more technical audits, such as asset liability and liquidity management. Partnering with an experienced team would enable them to maintain audit coverage while preparing their internal team to take on more responsibilities.
Challenge
Wolf worked closely with Carthage Savings to understand their internal audit needs and support the development of their audit function. The partnership began with an outsourced internal audit relationship, providing the necessary expertise while their team was being trained.
Over the years, the relationship evolved into a co-sourced model, where Wolf continued to assist the internal team with audit engagements, offering guidance and serving as a trusted resource for questions along the way. After partnering with Wolf, Carthage Savings now handles most audits internally, with Wolf continuing to manage specialized subject matter expertise audits, providing ongoing support in these areas.
Wolf has been a vital partner in strengthening our internal audit function. When we faced a leadership
transition, they provided the expertise and support we needed to maintain continuity and ensure a smooth transition. Throughout the process, Wolf has been a trusted advisor, offering insights and best practices, answering questions, and helping us strengthen our audit processes.”
Chelsea L. Hayden
Internal Auditor
Carthage Savings
Result
As a result of their partnership with Wolf & Company, Carthage Savings successfully:
Filled a gap in the internal audit group, ensuring a smooth transition
Trained internal resources to effectively facilitate internal audit engagements
Completed reviews requiring subject matter expertise to maintain audit quality
