Examination of Financial Statements of the National Credit Union Administration for the 15 Months Ended September 30, 1977
FOD-78-2: Published: Aug 14, 1978. Publicly Released: Aug 14, 1978.
- Full Report:
The financial statements of the National Credit Union Administration (NCUA) present fairly its position at September 30, 1977, and the results of operations and changes in its financial position for the 15 months then ended.
NCUA is an independent executive branch agency which charters, supervises, and examines federal credit unions. It also insures member savings in federal credit unions and qualified state-chartered credit unions. At September 30, 1977, there were 12,735 federal credit unions and 3,794 federally insured state-chartered credit unions. While NCUA examines federal credit unions each year, it relies on State supervisory agency information for federally insured state credit unions. The information received from some state supervisory agencies is sometimes incomplete or not current. As a result, NCUA may not have the best possible information on which to make decisions such as whether to provide financial assistance to state credit unions with serious problems which could eventually result in payments from the share insurance fund.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Administrator, NCUA, should examine federally insured state credit unions and develop an early warning system to identify problems with these state credit unions. Initial experimental programs begun by NCUA to examine federally-insured state credit unions which are experiencing problems in some states and to help some state agencies to develop early warning systems should be expanded to include federally-insured state credit unions in all of the states.