news.cuna.org/articles/108129-cus-agree-to-penalty-for-late-2q-call-reports

14 CUs agree to penalty for late 2Q call reports

October 22, 2015

ALEXANDRIA, Va. (10/22/15)--Fourteen federally insured credit unions agreed to civil money penalties for filing late second-quarter call reports, the National Credit Union Administration said Wednesday.

This represents a steep drop from the second quarter of 2014, when 44 credit unions consented to penalties; however, only 15 credit unions consented to penalties in the first quarter of 2015.

According to the NCUA, the late filers will pay a total of $3,491 in penalties, with individual penalties ranging from $100 to $576. The median penalty was $185.

NCUA Chair Debbie Matz said the agency’s goal is full compliance, a goal that is “within sight.” She also encouraged credit unions having difficulties meeting the quarterly deadline to take advantage of assistance offered by the NCUA.

The assessment of penalties primarily rests on three factors: the credit union’s asset size, its recent call report filing history and the length of the delay. One of the late-filing credit unions had been late in a previous quarter.

Of the 14 credit unions agreeing to pay penalties for the second quarter: 11 had assets of less than $10 million; two had assets between $10 million and $50 million; and one had assets between $50 million and $250 million.

No credit unions with assets greater than $250 million filed late in the second quarter.

A total of 28 credit unions filed late call reports for the second quarter of 2015. NCUA consulted regional offices and, when appropriate, asked state supervisory authorities to review each case.

This review determined mitigating circumstances in six cases that led to credit unions not being penalized.

NCUA informed the remaining 22 credit unions of the penalties they faced and advised them they could reduce their penalties by signing a consent agreement. NCUA also said it would initiate administrative hearings against credit unions that did not consent, and subsequently granted waivers to eight of those credit unions.

The agency sends reminder messages about deadlines that include information on how to receive technical support to handle filing problems, has created an automated reminder email system that contacts credit unions that have not filed their call reports and confirms successful filing and produced a video describing how to file report.

Per the Federal Credit Union Act, the NCUA is required to send any funds received through civil monetary penalties to the U.S. Treasury.