ALEXANDRIA, Va.–NCUA’s Inspector General has recommended in a new report that the Central Liquidity Facility (CLF) consider whether to seek to extend the due date for member credit unions’ annual stock adjustment payments beyond March 31.
The recommendation is included in the report that involved an audit scope of NCUA’s operation of the Central Liquidity Facility (CLF) from January 2020 to March 31, 2024.
NCUA data show the CLF had 437 members as of Jan. 31.
According to the report, the IG found the CLF did not receive payments from members for the annual adjustments to their capital stock subscriptions by the March 31 deadline as required under current regulation. But the report does not fault a lack of internal control or processes, but instead explains the annual stock adjustment calculation performed by the CLF relies on credit union call report data, and that data is not available to the CLF in a timeframe, which would allow the March 31 deadline to be met.
What Testing Found
“Our testing of a sample of CLF members identified that in all 12 instances where a member was required to make a payment to the CLF, the payment was late by 4 to 32 days, with 12 days being the average delay,” the report states, before adding that by regulation, stock adjustment payments are due no later than March 31 of the following year.
In addition, the Inspector General the late payments delayed the CLF’s investment of the paid-in funds, which affects interest earnings, though the report states this had only a “de minimis” (too small to be meaningful) financial impact on the CLF.
Suggestions Made
In addition, the IG report:
- Recommends NCUA management “determine whether they want to pursue any action to extend the due date beyond March 31st for member payments to the CLF.”
- Found the agency operated the CLF in accordance with applicable laws and that it “substantially” complied with regulations and its own policies, and procedures.
