Wednesday, December 28, 2011 11:18:00 AM
ALEXANDRIA, Va. – The NCUA released the 2010 audited financial statements for the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund). The Stabilization Fund’s financial statements received an unqualified or “clean” audit opinion from KPMG LLP, the independent firm that audits NCUA.
In issuing a clean audit opinion, KPMG also issued one finding related to the timeliness of producing financial statements for the Stabilization Fund. The KPMG finding acknowledges that the NCUA faced "unprecedented developments related to finalizing the 2010 financial statements" and makes recommendations to ensure that the agency produces timely reporting in the future. The finding states:
"During 2010, the National Credit Union Administration undertook a new initiative, the Corporate System Resolution Program…as a result of the failing corporate credit unions (CCUs) due to the financial system crisis. The broad-reaching inter-related implications of this unprecedented initiative, which included actions to accumulate and value assets of liquidated CCUs and their corresponding temporary bridge entities, presented significant financial reporting challenges.
"Simultaneously, the agency was transitioning to new accounting standards for another fund as well as implementing a new accounting system. This unprecedented initiative and its reporting challenges hindered NCUA's ability to fully plan and execute timely all the related accounting requirements for the TCCUSF and contributed to delays in the publication of the financial statements by OMB [Office of Management and Budget] established deadlines."
For NCUA’s full release, click here.