This Board Financial Training session will be for NEW directors (or those who want a refresher) who have joined your board since the last training in the Spring of 2024.
NCUA's Letter to Federal Credit Unions #11-FCU-02, issued in February of 2011, requires that directors of FCUs "must have at least a working familiarity with basic finance and accounting practices, including the ability to read and understand the credit union's balance sheet and income statement." It continues, "A director must understand these financial statements to participate in a meaningful manner in the direction and control of the institution."
This Board Financial Training session will be for NEW directors (or those who want a refresher) who have joined your board since the last training in the Spring of 2024. This session will be from 5:00-7:00 p.m., held virtually over Zoom. There is no cost to attend for League member credit unions.
Topics covered will include:
Balance sheet and income statement basics
What does 'off balance sheet' mean
The importance of trend analysis (tables or graphs)
Key financial ratios
What does 'accrual accounting' mean
Delinquency reporting
What is the Allowance for Loan and Lease Losses contra asset account and how is it related to the Provision
for Loan and Lease expense
NCUA 5300 quarterly reports
Budgeting and ALM basics
The risks: credit, liquidity, interest rate, compliance, strategic, transaction, and reputation
Peer analysis
Internal controls
Asking the right questions
Please note that this session will NOT cover the CECL topic. If you or a board member require further information on this topic, please get in touch with the League.