Press

Stabilization fund earns clean 2013 audit

ALEXANDRIA, VA (March 17, 2014) – The Temporary Corporate Credit Union Stabilization Fund has received a fifth consecutive clean audit opinion, the National Credit Union Administration announced today.

KPMG LLP, the independent firm that audits the Stabilization Fund’s financial statements, issued an unmodified audit opinion with no reportable findings. The agency released the Stabilization Fund’s 2013 audited financial statements today as well. The KPMG report and the Stabilization Fund’s financial statements are available online here.

“Congress created the Stabilization Fund in 2009, and an independent auditor has given NCUA a clean financial statement audit opinion every year since then,” NCUA Board Chairman Debbie Matz said. “KPMG’s latest report, following the Board’s announcement last November that we do not expect an assessment in 2014, demonstrates the agency’s planning and management are prudent and that we are maintaining transparency as we work to complete the resolution of the corporate credit union crisis.”

During 2013, the Stabilization Fund’s financial condition remained stable, maintaining sufficient available liquidity to meet its obligations while its deficit net position continued to decline. NCUA’s Chief Financial Officer will provide a detailed report at the March 20 Board meeting.

The Stabilization Fund is a revolving fund in the U.S. Treasury that is managed by the NCUA Board. The Stabilization Fund gives NCUA the necessary flexibility to manage costs to the credit union system resulting from losses on troubled mortgage-backed securities purchased by five failed corporate credit unions that NCUA liquidated. It is currently scheduled to close in 2021.

With the 2013 Stabilization Fund audit complete, NCUA will soon update its two public website sections detailing Corporate System Resolution Costs and NCUA Guaranteed Notes Program information through the final quarter of 2013. NCUA will produce updated questions and answers covering final 2013 data on the total actual losses and implied write-downs on the failed corporates’ legacy assets and the most recent estimated loss projection ranges.

NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 96 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.