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Operations Consulting

From Red to Black: Questions answered on Corporate Assessment, concentration risk policies & ALLL

Bill Rockeman, The League's Senior Consultant


October promises to be another busy month of travel for me as I hit the road for three strategic planning sessions, as well as to attend the Small Credit Union CEO Roundtable, Oct. 26, and the Directors’ Conference, Oct. 28 & 29, both of which I will be presenting at.


Although I’ll be keeping busy much of the month, I do still have some openings for strategic planning sessions if your credit union has yet to book a date. Please give me a call sooner than later to reserve your desired date.


I’m always happy to answer any questions from credit unions, and lately I’ve been getting a lot asking how to record the Corporate Stabilization Assessment. It is important to remember that the amount billed for the Assessment should show as an expense on your September 30 call report.


I’ve also been asked about how to report debt restructuring and loan modifications on call reports. Feel free to give me a call so that I can provide guidance specific to your credit union.


I have also been getting calls with questions on concentration risk policies. Credit unions should make sure that their loan categories are calculated as a percentage of their net worth.


Allowance for Lease and Loan Loss (ALLL) is another hot topic. It has become a larger issue due to the effects of the economy and it seems that examiners are keeping a closer eye on it.


If you need any further clarification on any of these topics or others, give me a call.


CUNA has released its 2011-’12 National Member Survey, which provides insight into member attitudes and use of financial services. It’s really a great way to better understand how to remain competitive by staying abreast of potential member issues and providing the products and services members really need.


Also, now is a good time to start thinking about your 2011 Form 990 Filing. The League Services Corp. will again be offering its affordable Form 990 Filing Service, which is priced according to asset size. If your credit union plans to use the service, make sure to sign up by Jan. 31 to ensure the process remains on schedule for the May filing deadline. To sign up, contact Cari Thompson, The League's Director of Finance, at (800) 242-0833, Ext. 6023.


For more information on anything covered in this column, contact me at (262) 751-3420.

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