Examination of Financial Statements of the National Credit Union Administration for the Fiscal Years Ended June 30, 1976 and 1975
FOD-77-6: Published: May 23, 1977. Publicly Released: May 23, 1977.
- Full Report:
Examination of the financial statements of the National Credit Union Administration (NCUA) for the fiscal years (FY) 1975 and 1976 showed that the NCUA needs to improve certain aspects of its operations.
GAO cannot express an opinion on the reasonableness of assets acquired from liquidating credit unions of $7,162,965 and $7,076,486 for FY 1976 and 1975, respectively, or of the allowance for doubtful accounts of $4,558,507 and $4,044,049 and financial expenses of $723,963 and $554,358 for FY 1976 and 1975, respectively. In addition, liquidation expense was not fairly presented in FY 1975. With the exceptions of these items, the share insurance fund's financial statements present fairly the fund's financial position at June 30, 1976 and 1975, and the results of its operations and the changes in financial position for the years then ended, in conformity with the principles and standards of accounting prescribed by the Comptroller General.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Administrator, NCUA, should continue efforts to eliminate uncollectable loans from the accounts and establish an allowance for doubtful accounts based on the collectability of the remaining loans, and should periodically evaluate the collectability of its loan portfolio and develop a more accurate method of estimating losses as soon as adequate program experience is available. The Administrator should also expand the scope of the internal audit work performed in the Washington headquarters to include all NCUA activity and related management controls.