January 2024 Operating Fund Financial Highlights

MANAGEMENT OVERVIEW

January 31, 2024

Balance Sheets

Cash and cash equivalents had a month-end balance of approximately $104.3 million. The balance decreased by $11.9 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 2024, at which time the Fund will collect the 2024 operating fees from its credit union members.

Amount due from National Credit Union Share Insurance Fund of $10.0 thousand represents the receivable for expenses paid by the Operating Fund.

Other accounts receivable, net had a month-end balance of $11.7 million. Its balance increased by $11.1 million from prior month. Accounts payable are trade, relocation and inter-agency payables. The balance increased by $2.3 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

Expenses in excess of revenues totaled $392.9 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 $11.9 million from prior month. In the current month, $11.6 million was used in operating activities, $248.1 thousand was used in investing activities, and there were no financing activities.

Other Information

The Agency had 33 vacancies as of month-end, which represents 2.6 percent of the total authorized staff of 1,252. Of the 33 vacancies, there were no vacancies under authorized positions in the central office and 33 vacancies under the authorized positions in the regions and Asset Management and Assistance Center (AMAC).

BALANCE SHEETS

As of January 31, 2024 and 2023 (Dollars in thousands)

ASSETS	January 2024	January 2023
Cash and cash equivalents	$104,331	118,058
Due from National Credit Union Share Insurance Fund	10	9
Other accounts receivable, net	11,663	9,852
Prepaid expenses and other assets	8,716	5,523
Operating lease right-of-use assets	1,932	308
Fixed assets¹	33,945	33,687
Intangible assets²	22,015	26,048
TOTAL ASSETS	$182,612	$193,485

LIABILITIES AND FUND BALANCE

LIABILITIES	January 2024	January 2023
Accounts payable and accrued other liabilities	$23,960	$22,023
Finance lease liabilities	146	160
Operating lease liabilities	2,032	325
Accrued wages and benefits	13,936	12,196
Accrued FECA and unemployment benefits	168	184
Accrued actuarial FECA benefits	3,664	3,283
Accrued annual leave	24,211	23,112
TOTAL LIABILITIES	68,117	61,283
FUND BALANCE	114,495	132,202
TOTAL LIABILITIES AND FUND BALANCE	$182,612	$193,485

STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE

For the periods ended January 31, 2024 and 2023 (Dollars in thousands)

REVENUES	January 2024	Year-to-Date January 2024	Year-to-Date January 2023
Operating fees	$11,545	11,545	$9,690
Interest	449	449	408
Other	50	50	33
Total Revenues	12,044	12,044	10,131

EXPENSES, NET³	January 2024	Year-to-Date January 2024	Year-to-Date January 2023
Employee wages and benefits	$9,497	$9,497	$8,797
Travel	116	116	57
Rent, communications, and utilities	7	7	100
Contracted services	2,440	2,440	1,705
Depreciation and amortization	314	314	293
Administrative	63	63	116
Total Expenses, Net	$12,437	$12,437	$11,068
EXCESS OF REVENUES OVER / (UNDER) EXPENSES	(393)	(393)	(937)
FUND BALANCE—Beginning of period	114,888	114,888	133,139
FUND BALANCE—End of period	$114,495	$114,495	$132,202

STATEMENTS OF CASH FLOWS

For the periods ended January 31, 2024 and 2023 (Dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES	January 2024	Year-to-Date January 2024	Year-to-Date January 2023
Excess of revenues over (under) expenses	$(393)	$(393)	$(937)
Adjustments to reconcile excess of revenues over (under) expenses to net cash provided by operating activities before allocation to the NCUSIF:
Depreciation and amortization	833	833	772
(Increase) decrease in assets:
Due from National Credit Union Share Insurance Fund	1,638	1,638	10
Other accounts receivable, net	(11,058)	(11,058)	(9,498)
Prepaid expenses and other assets	(3,021)	(3,021)	(853)
(Decrease) increase in liabilities:
Accounts payable	2,319	2,319	1,423
Accrued wages and benefits	(1,650)	(1,650)	550
Accrued employee travel	(276)	(276)	(250)
Net Cash Provided by/(Used in) Operating Activities	(11,608)	(11,608)	(8,783)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed and intangible assets	(248)	(248)	(170)
Net Cash Provided by/(Used in) Investing Activities	(248)	(248)	(170)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Cash Provided by/(Used in) Financing Activities	-	-	-
NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS	(11,856)	(11,856)	(8,953)
CASH AND CASH EQUIVALENTS—Beginning of period	116,187	116,187	127,011
CASH AND CASH EQUIVALENTS—End of period	$104,331	$104,331	$118,058

The balances in the statement above are preliminary and unaudited.

¹ Net of accumulated depreciation of $44,307 and $40,766 as of January 31, 2024 and 2023, respectively.

² Net of accumulated amortization of $35,981 and $30,853 as of January 31, 2024 and 2023, respectively.

³ Operating Fund expenses are the total NCUA operating expenses reduced by the Share Insurance Fund allocation as determined by the
overhead transfer rate.