Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
OIG Recommends NCUA Strengthen Insurance Fund Loss Documentation
ALEXANDRIA, Va. (11/4/13)--The National Credit Union Administration could strengthen its documenting of National Credit Union Share Insurance Fund (NCUSIF) estimated losses for specific credit union failures, according to a new report from the NCUA Office of the Inspector General (OIG).

OIG initiated the review to determine the agency's methodology for identifying and tracking credit union failures and losses to the NCUSIF. OIG analyzed losses and failures at the time of occurrence, at year-end, and for the period ending July 31, 2012. The scope of the review covered all failures occurring during calendar year 2011 and from Jan. 1  through July 31, 2012.  

According to the report, the NCUA's offices of Examination and Insurance, Chief Financial Officer and Asset Management and Assistance Center each documented different estimated NCUSIF loss amounts throughout the year. OIG, however, determined these differences are mostly attributable to timing differences and new information that is continually received, which causes the estimated NCUSIF loss amounts to frequently change.

OIG also found that various NCUA offices do not always document NCUSIF loss activity in a timely manner. Regional and central offices document losses into independent, nonintegrated systems. Ultimately, the various offices ensure that the estimated NCUSIF loss amounts agree at year-end for financial statement reporting, OIG said.

The OIG made several suggestions, including strengthening the NCUA's ability to capture basic credit union failure data. This should help eliminate discrepancies between NCUA's regional and central offices, OIG said.

Three specific recommendation made by the report are:
  • Revise internal procedures;
  • Conduct a feasibility study; and
  • Develop an agency-wide definition for credit union failure.
"Although the report does not contain any egregious problems in NCUA's accounting and reporting for failures, we urge the agency to adopt the measures outlined in the report," CUNA Deputy General Counsel Mary Dunn said. "We do remain concerned whenever the agency uses different standards and definitions for any process or requirement," she added.

For the full NCUA OIG report, use the resource link.
Other Resources

NCUA OIG Report
RSS print
News Now LiveWire
.@TheNCUA open board meeting starts at 10 a.m. ET tomorrow. It is board member J. Mark McWatters' first. Watch @NewsNowLiveWire
3 hours ago
.@CFPB is proposing to oversee larger nonbank auto finance companies for the first time at the federal level.
4 hours ago
.@CUNA's Bill Hampel moderates a discussion on the future of credit unions in the post-100 million member world. http://t.co/kcXykiRQVn
7 hours ago
#Breaking: QE likely to end next month, @federalreserve says #NewsNow #Market http://t.co/u7Fb5l5fwM
7 hours ago
.@Experian study confirms that building a credit history is beneficial to financial marginalized communities. 64M are "credit invisibles"
7 hours ago