Corporate Fund Gets Unqualified Audit Report
The Temporary Corporate Credit Union Stabilization Fund's financial statements "present fairly, in all material respects,'' the fund's financial statement, according to an audit released late yesterday by the NCUA.
The technical term for the finding is that the auditor "expressed an unqualified [without reservations] opinion,'' about the presentation of the fund's numbers.
The audit, which was conducted by KPMG, also "did not identify any deficiencies in internal control over financial reporting that we consider material weakness.''
It was the first independent audit of the fund, which Congress created last year to help credit unions spread out the costs of rescuing some of the corporate credit unions which experienced serious financial difficulties.''
The fund has a line of credit with the Treasury Department and seven years to repay the costs. Earlier this year, the NCUA announced a 13.4 basis point assessment to pay this year's portion of the costs.
The fund has $6.4 billion set aside for current estimates of losses that would be incurred by the fund over the life of the securities and must repay the Treasury Department $690 million in outstanding borrowings. Congress gave the NCUA a $6 billion line of credit last year, but the agency has only used $1 billion to date