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June 2012
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FOCUS is a 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. |
 Featured this Month (Click on a heading to go to the article.)
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In your typical experience with NCUA our role is likely to be as a problem-identifier. This article presents an example of how offices within NCUA coordinate in the role of problem-solving on behalf of a credit union. The situation is true; we left the credit union un-named for its privacy.
My initial visit with the credit union, as an Economic Development Specialist (EDS), was in September 2011. I found numerous recordkeeping errors and accounts with improper balances. For example, the Allowance for Loan and Lease Losses account had a credit balance and the balance sheet did not balance. According to the credit union's examiner, "The records were not auditable for either an NCUA examination or an annual audit." Additionally, the credit union was in dire need of an updated data processing system as their current data processing system was almost 20 years old, unreliable, and the source of some of the recordkeeping problems. Lack of training was also a contributing factor to the recordkeeping problems but the credit union officials were willing to learn.
My first course of action was to train the credit union officials on how to research and correct the recordkeeping errors; reconcile the general ledger accounts; and create accurate and balanced financial statements. Working with the district examiner, we helped the credit union officials correct the recordkeeping problems and prepare adjusting journal entries. We also worked together to train the officials on proper recordkeeping to prevent recurrence.
After the records were corrected, the examiner conducted the annual examination. I attended the joint conference with the examiner, Supervisory Examiner, board of directors, and other credit union officials. During the conference I stressed the need to maintain supporting documentation for each general ledger account and for monthly reconcilements.
As a low-income designated credit union, the credit union was eligible for grants from NCUA. I helped the board president apply for grants for a new data processing system and a student intern. The grants were approved and the credit union converted to the new system after the records were updated. A few months after the conversion, I returned to the credit union to provide Supervisory Committee training and to facilitate a strategic planning session with the board.
This job was a success because we were able to help meet the credit union's immediate and some future needs. They needed balanced records and training, we assisted with bringing the records in balance and training the staff. They needed additional staff support and to update their data processing equipment, we helped secure grants for both purposes. This small credit union needed a strong, well trained Supervisory Committee to oversee operations and prevent future recordkeeping errors, and we trained the Supervisory Committee. They needed a roadmap for the future; we facilitated a strategic planning session and helped it draft a strategic plan.
From an NCUA perspective, it required a team approach, me, the examiner, and the supervisory examiner to help the credit union officials resolve their record keeping problems, secure grants, and draft a roadmap for the future.
EDS Malia Peel
I strongly encourage small credit unions with a major problem to contact their examiner to set up a visit by an EDS. However, credit union management must not rely upon the EDS to repeatedly help resolve a problem.
Principal Examiner David Bigler
EDS consulting services may be available to assist your credit union address strategic or operational issues. For more information, contact your examiner.
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OSCUI in the News
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Funds Now Available
Loan program redesigned.
NCUA will accept loan applications from low-income designated credit unions (LICU) through the rest of 2012 or when funds are exhausted. Generally, the Community Development Revolving Loan Fund (CDRLF) provides loans up to $300,000, but a new rule adopted by the NCUA Board last year allows loans above that amount on a case-by-case basis.
The modified rule also allows greater flexibility in setting interest rates that can fall below 1 percent. For 2012, NCUA has therefore set the interest rate for loans at a record-low 0.4 percent. Loans have a five-year maturity and are structured with principal due at maturity.
Grant applications accepted through June 29.
Grants go up to $25,000 with an application deadline of June 29. To make it easier for LICUs to access CDRLF grants, NCUA has adopted new procedures. The most significant changes include:
- A fully automated, online funding application;
- A single application for all funding initiatives; and
- The ability to bundle reimbursement requests for multiple initiatives.
As part of the 2012 CDRLF funding round, NCUA has prioritized the following grants:
- Financial Literacy and Education in School Branches
- New Product and Service Development
- Staff, Official, and Board Member Training
- Student and Job Creation Internships
- Volunteer Income Tax Assistance
Through the Urgent Needs Initiative, LICUs may also apply year-round for grants up to $7,500 to cover expenses related to natural disasters and other unexpected adverse events.
For more information about these programs and links to the funding applications, go to http://www.ncua.gov/Resources/CUs/Dev/Pages/Loans.aspx or contact us via email oscuiapps@ncua.gov.
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Marketing Tips and Techniques
OSCUI Economic Development Specialists (EDSs) work one-on-one as consultants with credit union management to ensure the credit union's operation prospers. In providing this service an EDS can make recommendations to promote the credit union's growth. In this and the next several issues of this newsletter, we will share some recommendations that credit unions have reported success in adopting.
First, the most essential variable is crafting an appropriate and specific marketing plan. There are four segments of a sound marketing plan/approach that we emphasize: publicity, public relations, strengthening communications, and best practices. In this issue we will address Publicity. The table below includes some suggestions; pick the ones that work best for your credit union given its resources.
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EDS Marketing Tips - Publicity |
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Tell the Credit Union Story! Good news articles are easy to find! Write a press release describing something special about your credit union - send it to your local/community newspaper. | |
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Develop a website, start a blog. Mount a suggestion box for members. Develop a member survey. Motivate your staff to cross-sell and develop staff recognition programs. | |
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Develop newsletters, brochures, stuffers, posters -- include testimonials. Use a "take me" receptacle for brochures in your lobby and employer lunchroom. | |
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Deliver communications via e-mail. E-mail marketing can be a cost-effective tool. | |
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Get involved in your Credit Union League's image and awareness campaign. Reach out to past members. Optimize your website for search engines. | |
q | Advertise on local radio; offer to provide financial advice on the air. |
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OSCUI Releases 2nd Training Video for Credit Unions
OSCUI's Direct Assistance program is featured in this installment. Credit union representatives discuss OSCUI's assistance and impact of such assistance on their credit unions. To view the video go to http://www.youtube.com/watch?v=6qDjiGznI5w.
Got a good story? Email us! Tell about your credit union's experience with any OSCUI programs at oscuitraining@ncua.gov.
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Happening in OSCUI
- The 2012 season of Credit Union Workshops and Roundtables training is underway. To view the agenda, dates, locations, and register go to http://www.ncua.gov/Resources/CUs/Dev/Pages/Events.aspx OR call OSCUI's automated training line at 703-518-1620. From the phone line you can also receive instruction on requesting travel reimbursement.
- Martha Ninichuk is our new Deputy Director. She came to NCUA after working for the Michigan Credit Union League. Click here to view the press release announcing her appointment. Martha may be reached by phone at 703-518-1581 or e-mail at mninichuk@ncua.gov.
- This issue of FOCUS unveils our new design and format. The changes are part of our strategy to increase awareness of the services we provide and improve our communications strategy, internally and externally. To comment on the new design and any materials you see at our training or outreach events email us at oscuimail@ncua.gov.
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ANNOUNCEMENTS
Funding Opportunities
Native Asset Building Initiative Grant Application Available: The Office of Community Services (OCS) and the Administration for Native Americans (ANA) have partnered to increase access to and awareness of asset building opportunities in Native American communities. OCS is within the U.S. Department of Health and Human Services. Through the Native Asset Building Initiative (NABI), OCS and ANA is now accepting applications to establish and administer asset building projects. Credit unions are eligible to apply. The deadline for applications is June 18, 2012. To learn more go to http://www.acf.hhs.gov/grants/open/foa/view/HHS-2012-ACF-ANA-NO-0322.
Studies / Research
AssetPlatform Seeks Credit Unions for Pilot Program: AssetPlatform (www.assetplatform.org), developed by the Aspen Institute, is a nationally-scaled online portal for financial products, trainings, tools and services for low-income families. The goal of the pilot is to increase access to and usage of appropriate and affordable financial products among low- and moderate-income individuals and households. Aspen Institute wants credit unions to participate by offering specific products and financial education, and will provide free technical assistance and training to credit union participants. If interested, contact jan.simpson@aspeninst.org.
"Credit Unions: Focus on Financial Capability Across the Nation": This National Credit Union Foundation report describes 10 financial education/counseling interventions offered by credit unions to members and consumers. The report provides cumulative data about member use of, and access to, financial education and counseling products, tools, and courses and the probable keys to program success. To view the report, go to http://www.realsolutions.coop/assets/2012/1/5/Credit_Unions-Focused_on_Financial_Capability_Across_the_Nation-NCUF_Report.pdf.
Financial Field Manual for Military Families: The Investor Protection Trust, Investor Protection Institute, Council for Better Business Bureaus, and Kiplinger's Personal Finance magazine offer a guide to help military families make informed financial decisions. It is available at http://www.investorprotection.org/downloads/pdf/learn/IPT_Financial_Field_Manual_2012.pdf.
Money Smart for Young Adults Looking for Financial Educators: The Federal Deposit Insurance Corporation (FDIC) plans a research study to evaluate its Money Smart for Young Adults curriculum. This study will assess how the curriculum impacts participants' financial knowledge and behavior. This survey builds on the evaluation that found the Money Smart curriculum improves the money-management practices of adults. To learn more, visit the FDIC's Money Smart Web site, e-mail communityaffairs@fdic.gov, or call (800) 287-1581.
Training Opportunities
Train the Trainer Sessions in Texas: The National Endowment for Financial Education (NEFE) and the Texas Credit Union Foundation host free training for volunteers to teach financial planning to high school students. Training is open to credit union staff, teachers, and community partners who teach the NEFE course or distribute the curriculum. For dates, locations, and to register go to http://www.tcuf.coop/NEFE_High_School_Financial_Planning_Program.html.
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NATIONAL CREDIT UNION ADMINISTRATION
The Office of Small Credit Union Initiatives
1775 Duke Street, Alexandria, VA 22314 |
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