November 2012
FOCUS is the monthly eNewsletter of the Office of Small Credit Union Initiatives (OSCUI). It focuses on helping small credit unions achieve success by providing news and highlighting opportunities. Click here to subscribe to FOCUS.
topFeatured this Month (Click on a heading to go to the article.) 
Partnerships & Resources: OSCUI-AFI webinar now available
Happening in OSCUI: Information and updates
HeadlinerOSCUI accepting requests for consulting services

 

All of the services provided by the EDS will be used...help provided is immeasurable in helping us move forward...we would not have been able to accomplish all that we did without the EDS's help.

Ernestine Yarbough, Board President

First Baptist Church of Darby Federal Credit Union

 

At this time, credit unions may nominate themselves to receive consulting services from OSCUI. The consultations are performed by Economic Development Specialists (EDSs). EDSs are OSCUI staff who specialize in providing hands-on assistance to credit unions.

 

What kind of assistance do the EDS provide?

OSCUI provides customized consulting services, including training, in various areas of operational management. Examples include:

  • Net Worth Restoration Plan / Revised Business Plan Development;
  • Strategic Planning;
  • Recordkeeping; and
  • Internal controls.

 

What are the benefits to my credit union?

The benefits of participating in the Consulting Program include:

  • Getting assistance from experienced NCUA specialists can help management address strategic and operational issues identified in the credit union's report of examination.
  • The service can be tailored to your board or management.
  • The service is free to credit unions that are small (less than $10 million in assets), designated by NCUA as low-income, or are less than 10 years old.

How does the program work?

Under the revised program, OSCUI accepts credit unions into the Consulting Program twice per year, in June and December.  A credit union that is accepted into the program will receive EDS assistance during the following six months.  At the end of that period, the credit unions in the program are graduated and a new group of credit unions will be considered for assistance.

 

How can I nominate my credit union?

To nominate your credit union for the Consulting Program, click here and complete the Consulting - Economic Development Specialist Nomination form. You may complete and submit the form online.  November 30, 2012 is the deadline for nominations for December 2012.

 

The EDS was very effective with the credit union. Management was provided with guidance to develop a thorough strategic plan that is adequate for the size and complexity. Management and the officials are appreciative of the EDS assistance.

 

Kimberly Pecca, Examiner

 National Credit Union Administration

 

Read this month's Consulting article to learn more about the services OSCUI provides through its Consulting Program.

 

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IntheNewsOSCUI in the News

 

Examiners Survey Soaked CUs
Credit Union Times
 The NCUA's Office of Small Credit Union Initiatives notified low-income credit unions that need help digging out from under Hurricane Sandy can access up to $7,500 through emergency assistance grants. The funds must be used to cover expenses so credit...

 

NEW: NCUA reminds LICUs of Urgent Needs support
 CUNA News Now

The Urgent Needs Initiative is backed by the Community Development Revolving Loan Fund (CDRLF), and is administered by the NCUA's Office of Small Credit Union Initiatives (OSCUI).

 

NCUA Offers Emergency Funding For Hurricane Victims
Credit Union Journal

NCUA said this morning it is making emergency grants up to $7,500 available as part of its Urgent Needs Initiative to low-income credit unions damaged by Hurricane Sandy to help them restore operations and fix facilities.

 

CUNA Asks NCUA to Extend Comment Period for Small Credit Union Rule
Credit Union Times
 ... to expand the definition of small credit unions from less than $10 million to less than $30 million in assets, which would increase by 66% the number of credit unions the agency's relatively new Office of Small Credit Union Initiatives serves...

To see and read the entire list of articles, click here.

 

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GrantsCall Report changes affect credit union grantees

 

OSCUI sponsored recent changes to the 5300 Call Report and Profile.  The changes were part of the overall revisions announced in NCUA Letter to Credit Unions #12-CU-12, Changes Planned for Upcoming Call Reports.  The goal of the overall changes is to help NCUA "more precisely measure each credit union's financial condition."

 

The OSCUI-sponsored changes will expand and clarify grant reporting by credit unions that receive such funding. These changes take effect for the March 2013 Call Report Cycle. Following is a synopsis of the changes, as excerpted from the Letter. 
  • Profile Regulatory - revised to clarify reporting and certain filing requirements.
  • Profile Programs and Services - fields added to capture the variety of remittance transfer services offered by credit unions. 
  • Profile Grant Information - new grant categories added and a field to collect the type of grant received. This section of the Profile will be mandatory for all credit unions that receive grant funds starting with the March 2013 Call Report cycle. 

This article focuses on the changes sponsored by OSCUI, but you should review the Letter in its entirety.  Additional information and reporting instructions will be available on NCUA's website at www.NCUA.gov.

  

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ConsultingWhat happens on an EDS consultation? 

 

A small credit union near Atlanta, Georgia like many small credit unions had a new manager that was overwhelmed with all the policies and procedures the credit union needed. So, the NCUA District Examiner submitted a request to OSCUI for Economic Development Specialist (EDS) assistance for the credit union. The credit union was accepted into the Consulting Program by OSCUI and assigned to an EDS. I am the EDS who was assigned to assist the credit union.
 
My initial work with the credit union was a one week on-site visit to evaluate how to best assist the staff. A lot was accomplished during that week. Addressing the issues in the credit union's Document of Resolution (DOR) became the first priority. The manager and I also determined that the credit union was eligible for NCUA's low-income designation (LID). We worked with NCUA's Office of Consumer Protection to get the designation approved. The designation was granted in time for the credit union to apply for an OSCUI grant for staff training and to implement a new deposit product. Reaching out to the Georgia Credit Union League (the League) we learned it could provide staff training.  Click here to read the entire article.

 

Our team of 15 Economic Development Specialists is available to provide free operational and strategic management consulting services to eligible credit unions.  Eligible credit unions are those holding an NCUA low-income designation, have assets of less than $30 million, or are less than 10 years old.

 

We accept nominations for entry into the Consulting Program during the period of January through June and July through December.  The enrollment deadline for our next consulting cycle (January through June 2013) is November 30, 2012.  If you wish to participate in the next OSCUI Consulting Program cycle, please be sure to get your nomination in by this date.  Click here to complete the nomination form.
 
PartnershipsOSCUI-AFI webinar now available

  

Through our Partnerships and Outreach function, OSCUI helps increase awareness of programs and resources available to credit unions outside of NCUA.  OSCUI partners with other government agencies and non-profit organizations that are interested in working with credit unions.  One such partner is the Office of Community Services (OCS), a division of the Administration for Children and Families, U.S. Department of Health and Human Services.

 

"Helping Families Build Assets" was the webinar OSCUI co-sponsored last month with the OCS.   The webinar introduced credit union officials and credit union league representatives to the Assets for Independence (AFI) federal grant program. If you missed it or want to view it again, a recording is available online (click here).

 

 

The goal of AFI is to promote financial literacy and savings among low-income individuals, and enable them to acquire a lasting asset. AFI funding enables community-based organizations like credit unions to implement an assets-based approach to giving low-income families a hand up out of poverty. In 2012, AFI awarded almost $7 million in grants to 28 organizations; one credit union and one league affiliate were among the grantees.  

 

AFI is accepting applications for its 2013 grant funding cycle; applications may be submitted according to the following schedule:

  • Winter - January 25, 2013
  • Spring - March 25, 2013
  • Summer - May 24, 2013

 

Credit unions that want to participate should request a copy of the Application Kit and schedule an appointment with an AFI Technical Assistance provider for help planning the proposal. Contact the AFI Resource Center at info@idaresources.org or 1-866-778-6037. AFI has additional webinars about designing a project and the application process; click here to view the schedule and register.

 

All credit unions may serve as a financial institution partner to or a sub grantee of an existing AFI project. Low-income designated (LID) credit unions are eligible to be grantees under the AFI program. Click here to learn more about the LID and the benefits to credit unions of having this designation.

 

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happeningHappening in OSCUI  

  • While not specific to OSCUI credit unions, the following announcement will largely impact them.  Earlier this month, the NCUA Board approved the 2013 Operating Fee scale. Under the exemption, 328 federal credit unions would not be subject to the scale. For details, read the official Board Action Bulletin.
  • OSCUI approved its first Urgent Needs Initiative Grant related to Hurricane Sandy. Through this Initiative, NCUA provides grants within a short period, to low-income designated credit unions (LIDs) to help restore operations and fix facilities after a natural disaster or other unexpected adverse event within a short period. In the case above, NCUA received the request on October 31 and approved it the following day. LIDs may apply to receive up to $7,500 in emergency assistance grants; click here for more information.
  • Grants & Loans staff continues to process non-emergency grant reimbursements and loan application requests.
  • OSCUI has been working with the U.S. Department of the Treasury (Treasury) to respond to credit union requests to redeem Community Development Capital Initiative (CDCI) investments. The CDCI was a Treasury initiative in 2010 to assist low-income credit unions during the financial crisis. Because the investments are in the form of secondary capital, NCUA Rules and Regulations 701.34(d) apply. If your credit union has questions about redeeming its CDCI email Treasury staff at cdci@Treasury.gov.

 

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announcementsAnnouncements

Partnerships and Outreach

 

The AFI Resource Center offers a series of free technical assistance webinars for prospective 2013 grant applicants: The webinars will cover the basics of planning, applying, and developing resources for an AFI project. Credit unions are eligible to participate. Click here to register.  

  • Prospective Grantee Webinar 2: Preparing a Successful Application, December 4, 2 p.m. ET
  • Prospective Grantee Webinar 3: Developing Resources and Partners, January 9, 2013, 2 p.m. ET

The National Credit Union Foundation (NCUF) has a program called CU-Aid: When a disaster occurs, the site activates and raises funds from credit union supporters. The funds are granted to affected credit unions through the local league. NCUF is coordinating with the New Jersey Credit Union League and the Credit Union Association of New York to distribute money efficiently to affected credit union employees and members.  Click here for more information. 

 

Community Development Financial Institutions Fund adds a new Capacity Building Initiative Resource Bank to its website:The new "Innovations in Small Business Lending" Resource Bank provides links to expert sources and reference materials that cover a wide range of topics, including innovative market opportunities for small business lenders, small business lending tools, and relevant data and research. The Resource Bank is available at www.cdfifund.gov/cbi.

  

Community Development Financial Institutions (CDFI) Fund seeks input from CDFIs affected by Hurricane Sandy: The CDFI Fund invites CDFIs that have affected communities in their service areas to comment on their needs now and going forward. Responses are due by November 30 to PublicAffairsOffice@cdfi.treas.gov.

 

Native Financial Education Coalition: The National Congress of American Indians (NCAI) is re-establishing the Native Financial Education Coalition (NFEC) to identify short- and long-term efforts on Native financial education and consumer protection. Contact the NCAI at nfec@ncai.org for more information.

 

The Center for Financial Services Innovation has released a study,"A Complex Portrait: An Examination of Small-Dollar Credit Consumers": The study seeks to elucidate the reasons why so many consumers rely upon these potentially dangerous products and to glean what can be learned from their experiences to promote the development of high-quality credit solutions.  Click here to read the study.

 

Registration is open for the 2013 Federal Reserve System Community Development Research Conference: The conference theme is "Resilience and Rebuilding for Low-Income Communities: Research to Inform Policy and Practice." The conference will feature interdisciplinary, action-oriented community development research to support strategies and policies for vibrant and resilient communities and consumers. Conference dates: April 11 and 12, 2013.  Location: Washington, D.C. For registration information, contact Chevelle Wilson, Federal Reserve Bank of Atlanta, at chevelle.wilson@atl.frb.org.

 

Training

 

The National Federation of Community Development Credit Unions (the Federation), sponsored a webinar on the Benefits of the Low Income Designation. Click here to view the recording.

 

The Federation will conduct a webinar with CUNA entitled: "Fuel for Growth: Understanding and Planning for Supplemental Capital". The webinar is available to Federation members and CUNA affiliated credit unions at no cost. Click here to register.

 

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NATIONAL CREDIT UNION ADMINISTRATION
The Office of Small Credit Union Initiatives
1775 Duke Street, Alexandria, VA 22314