June 14, 2011 – NCUA yesterday announced an online training module that it says may provide federal credit union volunteer officials the financial literacy basics they need to meet a financial literacy requirement that becomes effective July 27.
The training is being conducted through an online NCUA LearnCenter. It will introduce financial statement concepts to board members with non-financial backgrounds. It will cover income statements, statements of cash flow and balance sheets.
NCUA says that, at a minimum, directors must be able to read and understand their credit union’s balance sheet and income statement and answer the following questions:
- What does each particular line item on the balance sheet and income statement mean?
- Why is it important to the credit union?
- Is the value of any line item changing over time? If so, what does the negative or positive change mean?
- Is the change important to the credit union?
NCUA is offering the session for $15 per participant.
“The recent fiduciary duties regulation says directors must have a certain base level of financial skills, consistent with the size and complexity of the credit union they serve,” said NCUA Chairman Debbie Matz. “The new online training will help directors to acquire needed financial skills.”
NCUA notes that the module is designed to help directors meet their regulatory requirement for financial literacy, but it may not be sufficient for larger or more complex institutions.
NAFCU has been offering a financial literacy education module since February and has incorporated relevant sessions into all of its recent conferences. At the NAFCU Annual Conference in San Francisco, participants can earn NAFCU certificates for financial literacy, supervisory committee training and Bank Secrecy Act training.
To register for the NCUA module (login required), click here. For more on NAFCU’s Annual Conference, click here. For specific information about NAFCU’s volunteer certificates, click here.