WARRENVILLE, Ill. (8/6/10)--Members United Corporate FCU said it made a "one-time formula error" that overstated its other-than-temporary-impairment (OTTI) charges by $1.2 million on its financials reported for April 30. In its financial statement for the end of April, Members United recorded $21.1 million of OTTI, but an internal audit of the OTTI has since uncovered the error, which meant it recorded $1.2 million more OTTI than required as of April 30. "From a financial statement perspective, the error represented less than 0.2% of the cumulative OTTI of $562.3 million recorded to date. From a depletion perspective, the percentage processed on May 25 would have been reduced from 89.7% to 88.8%," the corporate said in its unaudited portfolio update and financial reports for June 30. The report is available on Members United's website. The difference of 0.9% will either be applied to reduce any future depletions, or replenished to the membership capital share accounts, if deemed proper, the corporate said. The $8.1 billion asset Members United earned $1 million during June, increasing its retained earnings to $9.6 million. Regulatory capital, consisting of retained earnings and membership capital shares, totaled $23.2 million as of June 30. The corporate said it did not record any OTTI during June and that an OTTI review is underway. Charges were to be recorded in July and reported in the next portfolio update, it added. Preliminary results indicate that retained earnings of $9.6 million will be sufficient to absorb OTTI charges, and that Members United currently does not anticipate depleting MCS in August, the financial statement said.