NCUA OIG reviews supervision outcomes
NCUA's inspector general issued a report on positive outcomes for CUs with supervisory issues; it made no formal recommendations.
April 10, 2014 – The NCUA Office of Inspector General issued an audit report detailing “lessons learned” about credit unions which had supervisory concerns and which were able to achieve successful outcomes, but it made no formal recommendations.
The OIG explained that it looked for “specific corrective actions” which were proven to help credit unions that had been the subject of concern. The report found that for each of the 10 credit unions studied, examiners increased their supervision through on-site visits and follow-up communication, and they issued Documents of Resolution.
The OIG focused on two credit unions from each of NCUA’s five regions which fit the criteria of having recovered after corrective actions taken by the agency.
The report explained, “We believe the positive outcomes regions experienced with the credit unions were the result of examiners identifying the issues early and taking the necessary administrative actions. We also believe regional staff taking the time to build positive relationships and their diligent efforts to communicate with credit union management helped ensure management’s cooperation and played a major role in overcoming the supervisory concerns.
“Accordingly, we are not making any formal recommendations at this time,” it concluded.
NAFCU Director of Regulatory Affairs Mike Coleman responded, “We are pleased to see the positive results that NCUA staff have made while working with credit unions experiencing supervisory concerns. We will continue to press the agency to supervise credit unions fairly and consistently. With the ever-growing number of new regulations, we urge NCUA to appropriately train and educate examiners so that examinations are conducted consistently across regions and credit unions are not unfairly penalized for inconsistent applications of laws and regulations.”
NCUA OIG report