As member-owners of the National Credit Union Share Insurance Fund (NCUSIF) and Central Liquidity Facility (CLF), credit unions have a deeply vested interest in their performance. And given the billions of dollars in capital credit unions have placed in the NCUSIF and CLF, it’s critical for them to understand the results of the funds’ financial audits
But it can be a daunting task. NCUA recently released the 2008 and 2009 audits for the funds it manages – each more than 80 pages in length. Analyzing and interpreting these important financials and what they mean to the credit union system can be time-consuming and complex. To help, Callahan & Associates is hosting a webinar, “What Every Credit Union Can Learn from NCUA’s Audit Reports.
“Today, the single, largest expense credit unions collectively bear for the system is insurance premium assessments by the NCUA,” said Chip Filson, President/CEO of Callahan & Associates. ”Every credit union’s income statement is directly affected by NCUA’s management of the NCUSIF and CLF.”
The webinar will be facilitated by Filson, a former President of the CLF and NCUA Director of the Office of Programs; and Jay Johnson, Callahan’s Executive Vice President and a Certified Financial Analyst. It is scheduled for tomorrow, July 15, 4 p.m. ET/1 p.m. PT.
“While NCUA has provided a brief overview, there hasn’t been a presentation or traditional ‘management discussion’ on these audit findings. Most credit unions don’t have time to review the results,” said Filson. “Additionally, several circumstances surrounding these reports are unusual.”
Key Questions to Be Addressed
For example, while both audits were released last month, they were quite delayed – 15 months for the 2008 audit. As part of their review, Filson says they will try to answer questions such as: What were the circumstances causing the delays? Why were each year’s audits conducted by a different CPA firm and what were the major differences between the two audit reports? How does NCUA approach its findings and disclosures compared with other audited financial reports? How would the NCUSIF’s financials look on a consolidated basis?
The webinar will address these questions and summarize key findings, and put the reports in the context of why CPA audits were first begun 28 years ago. “It will be an information, education and dialogue session, where participants can ask questions, share their own analysis, or just listen and observe,” said Filson.
“Just like credit unions, these funds are member-owned and member-funded. And with that ownership comes the responsibility to stay informed,” said Filson. “Credit unions may very well have concerns and questions about the NCUSIF expenses and the Funds’ risks. And it is important to be informed when expressing these views. This webinar will help that understanding.”