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NCUA offers financial statement training for CUs
ALEXANDRIA, Va. (6/14/11)--Learning materials related to income statements, statements of cash flow, and balance sheets will be provided by a new National Credit Union Administration (NCUA)-produced online financial literacy training program. The NCUA training session will cost $15 and will take one hour to complete, the agency said. NCUA Chairman Debbie Matz in a release said that “the key measure of any credit union’s success or failure is its financial statements,” and added that the NCUA’s training will help volunteer directors acquire the skills needed to “meaningfully participate in the control of the credit union.” The NCUA late last year established a new set of financial literacy guidelines for federal credit union directors which held that those directors should have the ability to examine their credit union's balance sheet and understand specific financial activities that their credit union takes part in. The NCUA will not test individual directors to assess their financial literacy, but will examine the training programs that federal credit unions have set up for their directors. The NCUA has specifically said that directors should have complete knowledge of risks, including credit risk, liquidity-related risks, and interest rate, compliance, strategic, transaction, and reputation risks. The agency noted that this level of training “may not be sufficient for larger or more complex federal credit unions” and encouraged credit unions “to develop policies to educate board members in a manner that is appropriate for the size and complexity of their institutions.” CUNA earlier this year suggested that training policies for more complex credit unions should include specifics on more unconventional activities. These credit unions should specifically state that their board will be trained on the financial risks raised by those activities and the steps that the credit union takes to limit and control those risks. For more on the program, use the resource link.
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