ALEXANDRIA, Va. (5/25/11)--The National Credit Union Administration's (NCUA) Office of the Inspector General in its semi-annual report to the agency and the U.S. Congress said it has remained active in both audit and investigative matters, focusing on both material loss reviews and security-related issues.
The report covers the time between April 1 and Sept. 30. It summarizes the material loss reviews of Members United Corporate FCU, Beehive CU, Certified FCU, Constitution Corporate FCU, Southwest Corporate FCU, and the OIG also detailed the NCUA's own progress in improving its examination and supervision procedures for overseeing credit unions.
The OIG in 2010 recommended the agency take corrective actions related to its documentation, monitoring, exam procedures, quality control reviews and regulatory guidance, and, in this most recent report to Congress, the OIG said the NCUA "has made significant progress and is in various stages of implementing corrective action" on these and other recommendations.
The report also reviews the OIG's own internal security work, which included reviewing building security measures at the NCUA's Central Office and Region II facility and investigating allegations of misconduct and fraud by some NCUA employees.
The overall financial status of the credit union industry was also addressed in the report, with the OIG noting 0.3% total growth in assets, and an increase in the net worth to assets ratio of 0.08%, during the six-month period ended September 30. The OIG also noted that while total share accounts increased during this time period, the amount of loans taken out at credit unions fell slightly.
NCUA comments on key credit union issues, including the debit interchange fee cap and increasing the credit union member business lending cap, are addressed, as are other NCUA developments, including the naming of NCUA Chairman Debbie Matz to lead the Federal Financial Institutions Examination Council, the setting of the 2011 Temporary Corporate Credit Union Stabilization Fund Assessment, the creation of the NCUA Guaranteed Note oversight plan, and the finalization of the NCUA's Voluntary Prepayment of Stabilization Fund Assessments Plan.
CUNA's Examination and Supervision Subcommittee will be reviewing the report and following up on any issues of concern.
For the full NCUA OIG report, use the resource link.