ALEXANDRIA, Va. — The National Credit Union Administration announced Tuesday that the Temporary Corporate Credit Union Stabilization Fund received its seventh consecutive "clean" audit opinion.
Specifically, KPMG LLP issued an "unmodified" audit opinion with no "reportable findings." Also, the Office of the Inspector General's report on the Stabilization Fund's 2015 audited financial statements found "no material weaknesses" in internal controls; no "significant deficiencies" related to internal controls; and no instances of "reportable non-compliance with laws and regulations."
During 2015, NCUA noted, the Stabilization Fund's financial condition "remained stable, maintaining sufficient available liquidity" to meet its obligations. It also marked the second straight year that the Stabilization Fund enjoyed a "positive net position."
Managed by the NCUA board, the Stabilization Fund is a revolving fund in the U.S. Treasury and 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.
"Credit unions have been spared billions of dollars in potential losses since 2009 because of the careful management of the [Stabilization Fund]," NCUA board chairman Debbie Matz said in a statement. "NCUA remains committed to effective and transparent management for the Stabilization Fund, and, if present trends continue, the agency does not expect to charge credit unions assessments for the Stabilization Fund in the future."
NCUA's chief financial officer will provide a detailed report on the Stabilization Fund at the March 24 board meeting.
NCUA also announced that it 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.
