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Allowance for Loan Loss Policy

Develop a Loan Allowance policy based on best practices

As unemployment continues to rise and the economy remains uncertain, auditors and regulators continue to focus on the Allowance for Loan Losses (ALL). Let us help you get your ALL policy up-to-date with extensive, proven resources and industry accounting expertise from veteran Mike Sacher, CPA.

Proven resources to get your policy
in shape for auditors

Understand what NCUA examiners are they looking for and learn successful techniques to strengthen your ALL policy. Our ALL solution does the following:

  • Addresses accounting issues such as Troubled Debt Restructures and Qualitative and Environmental factors
  • Includes a formal, annual Board of Director review as required by NCUA
  • Provides practical short-cuts for measuring and accounting for TDR’s

We can help create a comprehensive, customizable, and timely Allowance policy for your credit union that reflects best practices cultivated over many years for your credit union.

Key benefits include:

Incorrect accounting can have a profound impact on the Allowance for Loan Loss calculation. Strengthen your policy with the following expertly written resources that we have perfected over the years with our partnership with Mike Sacher:

  • An electronic copy of the policy that you can customize to fit your credit union’s circumstances, including:
    • Statement of responsibility
    • Summary of authoritative sources
    • Overview of Allowance theory
    • Accounting for general valuation reserves and specific valuation reserves Q&E factors
    • Accounting for TDR’s  as well as foreclosed and repossessed assets
    • Critical internal controls
  • Two hours of personalized consulting time with industry accounting expert Mike Sacher to brainstorm important issues and to customize your policy for your credit union($600 value)
  • Access to any Allowance webinar recorded by Mike Sacher ($250 value), such as Unraveling the GAAP Mystery and Providing Practical Solutions for Today’s Challenging Environment and more
  • Copies of important authoritative pronouncements, such as FAS 5, FAS 15 and FAS 114

Allowance for Loan Loss Policy Agreement

The following terms are mutually agreed to by the sellers (Michael J. Sacher, CPA and Callahan & Associates, Inc) and by the purchaser.

  1. The purchase price of $950 includes a copy (in electronic form) of the Model Allowance for Loan Loss (ALL) policy, 2 hours of Mike Sacher’s consulting time (by phone based on mutually agreeable times), copies of relevant accounting pronouncements and access to any Allowance webinar that Mike has recorded for CreditUnions.Com.
  2. The Allowance policy to be provided to your credit union is proprietary, and may not be shared with anyone outside of your organization. Seller hereby clarifies, and purchaser hereby acknowledges that providing copies of this policy to other credit unions or others outside of your organization would have a negative financial impact to sellers.
  3. Seller hereby clarifies, and purchaser hereby acknowledges that seller will not be rendering an opinion on the adequacy of your ALL, or the reasonableness of the methods that you follow in determination of the ALL.
  4. The model policy that is being sold contains seller’s best efforts to ensure compliance with the requirements of generally accepted accounting principles and regulatory requirements.  However, seller makes no representation as to actual compliance with such standards.

Best Value!  Get the Trifecta
($600 value – save over 25%)

3 High Performance Management Resources for year-long support:
Annual Directory, Credit Union Strategy & Performance (CUSP) quarterly journal plus online access, and monthly Callahan Report newsletter.

Are you positioned to take advantage of market opportunities? 

Leverage the power of all three of our performance management publications for annual, quarterly and monthly support.

  • Deep industry analysis and extensive data
  • Industry partner perspectives
  • Interviews with top leaders

More Info

 

"I have found Callahan and Associates to be a data-driven organization staffed with competent people who are very knowledgeable and trustworthy. I have sought out their advice on many different matters of strategic importance over the past 10 years and they have always provided wise counsel.”

- Olan Jones, JR, CEO
Eastman Credit Union

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Callahan & Associates1001 Connecticut Ave, NW Suite 1001 | Washington, DC 20036
P: 800-446-7453 | F: 202-223-1311