ALLL popular topic in credit union community

WASHINGTON-NCUA’s new policy on Allowance for Loan and Lease Losses (ALLL) proved to be a very popular topic of discussion among federally insured credit unions-even more so than the PATRIOT Act requirements. CUNA broke its recently set record for audio conference callers with 530 credit union sites dialing in to get the low down on ALLL. Ninety-two cassettes were ordered on that same day, the trade organization said. The November 19 call was aimed at explaining to federally insured credit union exactly what NCUA examiners expect to see in ALLL policies and procedures, CUNA said. Participating in the call were NCUA Office of Examination and Insurance Director Dave Marquis; Examination and Insurance Program Officer Karen Kelbly; and Certified Public Accountant Clifton Gunderson LLP (Tucson, Ariz.) Ron Parker. CUNA Associate General Counsel Mary Dunn acted as moderator. According to the speakers, federally insured credit unions will only have to make minimal adjustments to their current procedures, particularly for those already following generally accepted accounting principles (GAAP); already having comprehensive written policies, procedures, controls and oversight of ALLL; who are consistent in their assessment process; and fairly match loan losses in income statements. CUNA recently created its new Accounting Task Force, headed up by Chairman Scott Waite, senior vice president and CFO of Patelco Credit Union in San Francisco, to help with this issue and others.