July 2024 Operating Fund Financial Highlights

MANAGEMENT OVERVIEW

July 31, 2024

Balance Sheets

Cash and cash equivalents had a month-end balance of approximately $176.2 million. The balance decreased by $10.9 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 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 $44.6 thousand represents the receivable for expenses paid by the Operating Fund.

Other accounts receivable, net had a month-end balance of $283.5 thousand. Its balance decreased by $221.5 thousand from prior month.

Accounts payable are trade, relocation and inter-agency payables. The balance decreased by $2.4 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 $79.0 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 $10.9 million from prior month. In the current month, $10.2 million was used in operating activities, $732.8 thousand was used in investing activities, and there were no financing activities.

BALANCE SHEETS

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

ASSETS	July 2024	July 2023
ASSETS Cash and cash equivalents	July 2024 $176,208	July 2023 $167,275
ASSETS Due from National Credit Union Share Insurance Fund	July 2024 45	July 2023 -
ASSETS Employee advances	July 2024 13	July 2023 1
ASSETS Other accounts receivable, net	July 2024 283	July 2023 165
ASSETS Prepaid expenses and other assets	July 2024 9,674	July 2023 7,830
ASSETS Operating lease right-of-use assets	July 2024 1,754	July 2023 103
ASSETS Fixed assets¹	July 2024 32,121	July 2023 34,569
ASSETS Intangible assets²	July 2024 20,278	July 2023 24,149
ASSETS TOTAL ASSETS	July 2024 $240,376	July 2023 $234,092

LIABILITIES AND FUND BALANCE

LIABILITIES	July 2024	July 2023
LIABILITIES Accounts payable and accrued other liabilities	July 2024 $23,646	July 2023 $23,253
LIABILITIES Finance lease liabilities	July 2024 121	July 2023 157
LIABILITIES Operating lease liabilities	July 2024 2,053	July 2023 109
LIABILITIES Accrued wages and benefits	July 2024 13,923	July 2023 11,081
LIABILITIES Accrued FECA and unemployment benefits	July 2024 247	July 2023 330
LIABILITIES Accrued actuarial FECA benefits	July 2024 3,664	July 2023 3,283
LIABILITIES Deferred revenue³	July 2024 57,645	July 2023 47,803
LIABILITIES Accrued annual leave	July 2024 25,543	July 2023 24,996
LIABILITIES TOTAL LIABILITIES	July 2024 126,842	July 2023 111,012
LIABILITIES FUND BALANCE	July 2024 113,534	July 2023 123,080
LIABILITIES TOTAL LIABILITIES AND FUND BALANCE	July 2024 $240,376	July 2023 $234,092

STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE

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

REVENUES	July 2024	Year-to-Date July 2024	Year-to-Date July 2023
REVENUES Operating fees	July 2024 $11,529	Year-to-Date July 2024 $80,704	Year-to-Date July 2023 $66,925
REVENUES Interest	July 2024 797	Year-to-Date July 2024 4,227	Year-to-Date July 2023 3,861
REVENUES Other	July 2024 45	Year-to-Date July 2024 321	Year-to-Date July 2023 227
REVENUES Total Revenues	July 2024 12,371	Year-to-Date July 2024 85,252	Year-to-Date July 2023 71,013

EXPENSES, NET⁴	July 2024	Year-to-Date July 2024	Year-to-Date July 2023
EXPENSES, NET4 Employee wages and benefits	July 2024 $9,545	Year-to-Date July 2024 $64,666	Year-to-Date July 2023 $59,535
EXPENSES, NET4 Travel	July 2024 630	Year-to-Date July 2024 3,720	Year-to-Date July 2023 3,571
EXPENSES, NET4 Rent, communications, and utilities	July 2024 198	Year-to-Date July 2024 1,068	Year-to-Date July 2023 1,228
EXPENSES, NET4 Contracted services	July 2024 1,429	Year-to-Date July 2024 13,864	Year-to-Date July 2023 13,521
EXPENSES, NET4 Depreciation and amortization	July 2024 325	Year-to-Date July 2024 2,195	Year-to-Date July 2023 2,096
EXPENSES, NET4 Administrative	July 2024 165	Year-to-Date July 2024 1,093	Year-to-Date July 2023 1,121
EXPENSES, NET4 Total Expenses, Net	July 2024 $12,292	Year-to-Date July 2024 $86,606	Year-to-Date July 2023 $81,072
EXPENSES, NET4 EXCESS OF REVENUES OVER / (UNDER) EXPENSES	July 2024 79	Year-to-Date July 2024 (1,354)	Year-to-Date July 2023 (10,059)
EXPENSES, NET4 FUND BALANCE—Beginning of period	July 2024 113,455	Year-to-Date July 2024 114,888	Year-to-Date July 2023 133,139
EXPENSES, NET4 FUND BALANCE—End of period	July 2024 $113,534	Year-to-Date July 2024 $113,534	Year-to-Date July 2023 $123,080

STATEMENTS OF CASH FLOWS

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

CASH FLOWS FROM OPERATING ACTIVITIES	July 2024	Year-to-Date July 2024	Year-to-Date July 2023
CASH FLOWS FROM OPERATING ACTIVITIES Excess of revenues over (under) expenses	July 2024 $79	Year-to-Date July 2024 $(1,354)	Year-to-Date July 2023 $(10,059)
CASH FLOWS FROM OPERATING ACTIVITIES Adjustments to reconcile excess of revenues over (under) expenses to net cash provided by operating activities before allocation to the NCUSIF:
CASH FLOWS FROM OPERATING ACTIVITIES Depreciation and amortization	July 2024 860	Year-to-Date July 2024 5,818	Year-to-Date July 2023 5,532
CASH FLOWS FROM OPERATING ACTIVITIES Noncash operating lease expense	July 2024 -	Year-to-Date July 2024 178	Year-to-Date July 2023 205
CASH FLOWS FROM OPERATING ACTIVITIES (Increase) decrease in assets:
CASH FLOWS FROM OPERATING ACTIVITIES Due from National Credit Union Share Insurance Fund	July 2024 (45)	Year-to-Date July 2024 1,603	Year-to-Date July 2023 19
CASH FLOWS FROM OPERATING ACTIVITIES Employee advances	July 2024 2	Year-to-Date July 2024 (13)	Year-to-Date July 2023 (1)
CASH FLOWS FROM OPERATING ACTIVITIES Other accounts receivable, net	July 2024 221	Year-to-Date July 2024 322	Year-to-Date July 2023 189
CASH FLOWS FROM OPERATING ACTIVITIES Prepaid expenses and other assets	July 2024 (649)	Year-to-Date July 2024 (3,980)	Year-to-Date July 2023 (3,160)
CASH FLOWS FROM OPERATING ACTIVITIES (Decrease) increase in liabilities:
CASH FLOWS FROM OPERATING ACTIVITIES Accounts payable	July 2024 (2,373)	Year-to-Date July 2024 2,001	Year-to-Date July 2023 2,653
CASH FLOWS FROM OPERATING ACTIVITIES Operating lease liabilities	July 2024 -	Year-to-Date July 2024 22	Year-to-Date July 2023 (216)
CASH FLOWS FROM OPERATING ACTIVITIES Accrued wages and benefits	July 2024 3,231	Year-to-Date July 2024 (1,663)	Year-to-Date July 2023 (565)
CASH FLOWS FROM OPERATING ACTIVITIES Accrued FECA and unemployment benefits	July 2024 -	Year-to-Date July 2024 79	Year-to-Date July 2023 146
CASH FLOWS FROM OPERATING ACTIVITIES Deferred revenue	July 2024 (11,529)	Year-to-Date July 2024 57,645	Year-to-Date July 2023 47,803
CASH FLOWS FROM OPERATING ACTIVITIES Accrued annual leave	July 2024 -	Year-to-Date July 2024 1,333	Year-to-Date July 2023 1,884
CASH FLOWS FROM OPERATING ACTIVITIES Accrued employee travel	July 2024 -	Year-to-Date July 2024 (276)	Year-to-Date July 2023 (250)
CASH FLOWS FROM OPERATING ACTIVITIES Net Cash Provided by/(Used in) Operating Activities	July 2024 (10,203)	Year-to-Date July 2024 61,715	Year-to-Date July 2023 44,180
CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES:
CASH FLOWS FROM OPERATING ACTIVITIES Purchases of fixed and intangible assets	July 2024 (733)	Year-to-Date July 2024 (1,670)	Year-to-Date July 2023 (3,896)
CASH FLOWS FROM OPERATING ACTIVITIES Net Cash Provided by/(Used in) Investing Activities	July 2024 (733)	Year-to-Date July 2024 (1,670)	Year-to-Date July 2023 (3,896)
CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES:
CASH FLOWS FROM OPERATING ACTIVITIES Principal payments under finance lease liabilities	July 2024 -	Year-to-Date July 2024 (24)	Year-to-Date July 2023 (20)
CASH FLOWS FROM OPERATING ACTIVITIES Net Cash Provided by/(Used in) Financing Activities	July 2024 -	Year-to-Date July 2024 (24)	Year-to-Date July 2023 (20)
CASH FLOWS FROM OPERATING ACTIVITIES NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS	July 2024 (10,936)	Year-to-Date July 2024 60,021	Year-to-Date July 2023 40,264
CASH FLOWS FROM OPERATING ACTIVITIES CASH AND CASH EQUIVALENTS—Beginning of period	July 2024 187,144	Year-to-Date July 2024 116,187	Year-to-Date July 2023 127,011
CASH FLOWS FROM OPERATING ACTIVITIES CASH AND CASH EQUIVALENTS—End of period	July 2024 $176,208	Year-to-Date July 2024 $176,208	Year-to-Date July 2023 $167,275
CASH FLOWS FROM OPERATING ACTIVITIES SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES
CASH FLOWS FROM OPERATING ACTIVITIES Retirement of fully depreciated assets	July 2024 $-	Year-to-Date July 2024 $578	Year-to-Date July 2023 $302
CASH FLOWS FROM OPERATING ACTIVITIES Acquisition of equipment under finance lease	July 2024 $-	Year-to-Date July 2024 $-	Year-to-Date July 2023 $(18)

The balances in the statement above are preliminary and unaudited.

¹ Net of accumulated depreciation of $46,376 and $42,568 as of July 31, 2024 and 2023, respectively.

² Net of accumulated amortization of $38,318 and $33,509 as of July 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.