news.cuna.org/articles/109649-tccusf-receives-clean-audit-for-2015

TCCUSF receives clean audit for 2015

March 2, 2016

WASHINGTON (3/2/16)--The Temporary Corporate Credit Union Stabilization Fund (TCCUSF) received its seventh consecutive clean audit opinion, the National Credit Union Administration (NCUA) announced Tuesday. This follows the NCUA’s announcement in February that its four permanent funds also earned clean audits for 2015.

During 2015, TCCUSF's financial condition remained stable, maintaining sufficient available liquidity to meet its obligations, and 2015 marked the second consecutive year in which the stabilization fund had a positive net position.

KPMG LLP, the independent firm that audits the stabilization fund’s financial statements, issued an unmodified audit opinion with no reportable findings. The Office of the Inspector General released its report on the stabilization fund’s 2015 audited financial statements Tuesday.

Managed by the NCUA board, the stabilization fund is a revolving fund in the U.S. Treasury. The fund gives NCUA the necessary flexibility to manage costs to the credit union system resulting from losses on faulty mortgage-backed securities purchased by five failed corporate credit unions that NCUA liquidated during the financial crisis.

The stabilization fund is currently scheduled to close in 2021.

With the 2015 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 2015.

NCUA will produce updated questions and answers covering final 2015 data on the total actual losses and implied write-downs on the failed corporates’ legacy assets and the most recent estimated loss projection ranges.

Rendell Jones, NCUA’s chief financial officer, will provide a detailed report of the fund and the audit at the agency’s March 24 board meeting.