NCUSIF and Other Funds Given Unqualified Audit
Long-delayed audits of the four funds managed by the NCUA showed them to be in good financial health, the agency reported today.
NCUA Chairman Debbie Matz said the audits-which had been delayed because of the problems facing the corporate credit unions-came back "clean," without qualifications and indicate that the credit union community "can be assured that the agency's finances remain strong."
Increased assessments to credit unions, making up for a dip in investment income, caused the revenue of the NCUSIF to more than double last year, the NCUA reported today.
The fund's revenue was $949.6 million last year, compared with $395.7 million in 2008, according to the annual reports for those years which the agency released.
The 28 credit union failureslast year cost the fund $161.7 million. In 2008, 18 failures cost the fund $246.6 million.
The fund ended last year with $758.7 million in reserves.
The audited report also showed that the Central Liquidity Facility, for which Congress temporary lifted the borrowing cap, had outstanding loans of $18.4 billion. The CLF approved a $10 billion advance to the NCUSIF to stabilize the liquidity of U.S. Central and WesCorp.
The NCUA's operating fund collected $81.7 million in operating fees and had an overhead transfer rate from the NCUSIF of 53.8%. In 2008, it received $72.4 million and the overhead transfer rate was 52%. The OTR is what the agency charges the fund for regulating insurance-related matters at state chartered credit unions.
The Community Development Revolving Loan Fund had $13.2 million in outstanding loans at the end of 2009, compared with $10.6 million at the end of 2008.