The NCUA announced Monday that the Temporary Corporate Credit Union Stabilization Fund received a sixth consecutive clean audit opinion.
“KPMG LLP, the independent firm that audits the Stabilization Fund's financial statements, issued an unmodified audit opinion with no reportable findings,” an agency press release said.
According to the NCUA, the stabilization fund had a positive net position for the first time, going from negative $142.2 million in 2013 to positive $238.5 million in 2014. During 2014, the fund's financial condition maintained adequate available liquidity to meet its obligations.
Based on an NCUA Office of the Inspector General report on the audited financial statements, the $380.7 million change is primarily explained by the $327.7 million reduction in insurance losses. In 2014, the TCCUSF maintained sufficient liquidity to meet its obligations and paid down $300 million in borrowings from the U.S. Treasury, the report stated.
The NCUA's chief financial officer will provide a detailed report on the fund at the March 19 open board meeting in Alexandria, Va.
“The Stabilization Fund has saved credit unions from $40 billion in potential losses since 2009, and this sixth consecutive clean audit is a reminder of how well this important asset is being managed,” NCUA Board Chairman Debbie Matz said. “NCUA remains committed to prudent, effective and transparent management for the Stabilization Fund. If current trends continue, the agency does not expect to charge credit unions assessments for the Stabilization Fund in the future.”
The stabilization fund, managed by the NCUA board, is a revolving fund in the U.S. Treasury scheduled to close in June of 2021. The fund allows the agency to manage costs to the credit union system resulting from losses on troubled mortgage-backed securities purchased by five failed corporate credit unions, which the NCUA had liquidated during the financial crisis.
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