MANAGEMENT OVERVIEW
August 31, 2024
Balance Sheets
Cash and cash equivalents had a month-end balance of approximately $160.5 million. The balance decreased by $15.7 million for the month primarily due to cash disbursements for operating expenses and capital expenditures. The cash position is considered sufficient to cover current and future budgetary obligations of the Fund through April 2025, at which time the Fund will collect the 2025 operating fees from its credit union members.
Amount due from National Credit Union Share Insurance Fund of $27.8 thousand represents the receivable for expenses paid by the Operating Fund.
Other accounts receivable, net had a month-end balance of $497.2 thousand. Its balance increased by $213.7 thousand from prior month.
Accounts payable are trade, relocation and inter-agency payables. The balance increased by $1.4 million for the month primarily due to vendor/trade and overhead transfer payables.
Accrued wages and benefits are earned by NCUA staff, but remain unpaid at month-end.
Accrued annual leave is leave earned by NCUA staff, but not yet used.
Statements of Revenues, Expenses, and Changes in Fund Balance
Revenues in excess of expenses totaled $324.2 thousand for the month. Operating fee revenue reflects one-twelfth of the 2024 Operating Fees. Expenses, net are after the overhead transfer rate adjustment that allocates a portion of expenses to the Share Insurance Fund.
Statements of Cash Flows
The cash position decreased $15.7 million from prior month. In the current month, $14.7 million was used in operating activities, $980.1 thousand was used in investing activities, and there were no financing activities.
BALANCE SHEETS
As of August 31, 2024 and 2023 (Dollars in thousands)
| ASSETS | August 2024 | August 2023 |
|---|---|---|
| Cash and cash equivalents | $160,547 | $159,075 |
| Due from National Credit Union Share Insurance Fund | 28 | - |
| Employee advances | 13 | - |
| Other accounts receivable, net | 497 | 536 |
| Prepaid expenses and other assets | 9,906 | 8,244 |
| Operating lease right-of-use assets | 1,754 | 103 |
| Fixed assets1 | 32,351 | 34,821 |
| Intangible assets2 | 20,163 | 23,802 |
| TOTAL ASSETS | $225,259 | $226,581 |
LIABILITIES AND FUND BALANCE
| LIABILITIES | August 2024 | August 2023 |
|---|---|---|
| Accounts payable and accrued other liabilities | $25,068 | $23,426 |
| Finance lease liabilities | 121 | 157 |
| Operating lease liabilities | 2,053 | 109 |
| Accrued wages and benefits | 8,589 | 14,118 |
| Accrued FECA and unemployment benefits | 247 | 330 |
| Accrued actuarial FECA benefits | 3,664 | 3,283 |
| Deferred revenue3 | 46,116 | 38,242 |
| Accrued annual leave | 25,543 | 24,996 |
| TOTAL LIABILITIES | 111,401 | 104,661 |
| FUND BALANCE | 113,858 | 121,920 |
| TOTAL LIABILITIES AND FUND BALANCE | $225,259 | $226,581 |
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE
For the periods ended August 31, 2024 and 2023 (Dollars in thousands)
| REVENUES | August 2024 | Year-to-Date August 2024 |
Year-to-Date August 2023 |
|---|---|---|---|
| Operating fees | $11,529 | $92,233 | $76,485 |
| Interest | 735 | 4,962 | 4,563 |
| Other | 33 | 353 | 261 |
| Total Revenues | 12,297 | 97,548 | 81,309 |
| EXPENSES, NET4 | August 2024 | Year-to-Date August 2024 |
Year-to-Date August 2023 |
|---|---|---|---|
| Employee wages and benefits | $9,071 | $73,736 | $68,332 |
| Travel | 607 | 4,328 | 4,128 |
| Rent, communications, and utilities | 205 | 1,273 | 1,394 |
| Contracted services | 1,543 | 15,407 | 14,926 |
| Depreciation and amortization | 326 | 2,521 | 2,414 |
| Administrative | 221 | 1,313 | 1,334 |
| Total Expenses, Net | $11,973 | $98,578 | $92,528 |
| EXCESS OF REVENUES OVER / (UNDER) EXPENSES | 324 | (1,030) | (11,219) |
| FUND BALANCE—Beginning of period | 113,534 | 114,888 | 133,139 |
| FUND BALANCE—End of period | $113,858 | $113,858 | $121,920 |
STATEMENTS OF CASH FLOWS
For the periods ended August 31, 2024 and 2023 (Dollars in thousands)
| CASH FLOWS FROM OPERATING ACTIVITIES | August 2024 | Year-to-Date August 2024 | Year-to-Date August 2023 |
|---|---|---|---|
| Excess of revenues over (under) expenses | $324 | $(1,030) | $(11,219) |
| Adjustments to reconcile excess of revenues over (under) expenses to net cash provided by operating activities before allocation to the NCUSIF: | |||
| Depreciation and amortization | 864 | 6,682 | 6,375 |
| Noncash operating lease expense | - | 178 | 205 |
| (Increase) decrease in assets: | |||
| Due from National Credit Union Share Insurance Fund | 17 | 1,620 | 19 |
| Employee advances | - | (13) | - |
| Other accounts receivable, net | (214) | 108 | (183) |
| Prepaid expenses and other assets | (231) | (4,211) | (3,574) |
| (Decrease) increase in liabilities: | |||
| Accounts payable | 1,422 | 3,423 | 2,825 |
| Operating lease liabilities | - | 22 | (216) |
| Accrued wages and benefits | (5,334) | (6,997) | 2,472 |
| Accrued FECA and unemployment benefits | - | 79 | 146 |
| Deferred revenue | (11,529) | 46,116 | 38,242 |
| Accrued annual leave | - | 1,333 | 1,884 |
| Accrued employee travel | - | (276) | (250) |
| Net Cash Provided by/(Used in) Operating Activities | (14,681) | 47,034 | 36,726 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Purchases of fixed and intangible assets | (980) | (2,650) | (4,642) |
| Net Cash Provided by/(Used in) Investing Activities | (980) | (2,650) | (4,642) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Principal payments under finance lease liabilities | - | (24) | (20) |
| Net Cash Provided by/(Used in) Financing Activities | - | (24) | (20) |
| NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS | (15,661) | 44,360 | 32,064 |
| CASH AND CASH EQUIVALENTS—Beginning of period | 176,208 | 116,187 | 127,011 |
| CASH AND CASH EQUIVALENTS—End of period | $160,547 | $160,547 | $159,075 |
| SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES | |||
| Retirement of fully depreciated assets | $- | $578 | $302 |
| Acquisition of equipment under finance lease | $- | $- | $(18) |
The balances in the statement above are preliminary and unaudited.
1 Net of accumulated depreciation of $46,881 and $42,989 as of August 31, 2024 and 2023, respectively.
2 Net of accumulated amortization of $38,677 and $33,931 as of August 31, 2024 and 2023, respectively.
3 The Operating Fund recognizes operating fee revenue ratably over the calendar year. The deferred revenue is the remaining amount to be recognized over the remainder of the calendar year.
4 Operating Fund expenses are the total NCUA operating expenses reduced by the Share Insurance Fund allocation as determined by the overhead transfer rate.