PricewaterhouseCoopers accountants are crunching numbers at the $1.4 billion Constitution Corporate Federal Credit Union today, working with the corporate's own financial managers to endorse year-end numbers.
"Our members are asking for our financials so they can close their own books," said Constitution Corporate spokesman Dan Poulin.
It's a tall order. Not only must Constitution determine the value of its own investments, it must also decide how it will write down U.S. Central-related losses. The American Institute of Certified Public Accountants' recommendations for corporate credit unions included using U.S. Central's year-end audited financials as evidence to back accounting decisions.
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Problem is, pre-conservatorship, U.S. Central wasn't anticipating release year-end figures until late April. Constitution Corporate's annual meeting is April 17.
Spokesman Lyle Niedens said CFO Kathy Brick and NCUA auditors are still trying to determine when they will release audited 2008 numbers, calling it "a work in progress."
Further complicating matters is an other-than-temporary-impairment, that when combined with the U.S. Central losses, could wipe out retained earnings and impair member capital shares, according to a letter from President/CEO Robert Nealon, posted Tuesday on the corporate's website. (www.constitutioncorp.org)
However, Constitution "has no current plans to curtail or eliminate membership capital dividends," Nealon wrote.
Poulin said Constitution is hopeful it will settle on year-end numbers within the next 10 days.
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