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

LIABILITIES AND FUND BALANCE

LIABILITIES	July 2024	July 2023
Accounts payable and accrued other liabilities	$23,646	$23,253
Finance lease liabilities	121	157
Operating lease liabilities	2,053	109
Accrued wages and benefits	13,923	11,081
Accrued FECA and unemployment benefits	247	330
Accrued actuarial FECA benefits	3,664	3,283
Deferred revenue³	57,645	47,803
Accrued annual leave	25,543	24,996
TOTAL LIABILITIES	126,842	111,012
FUND BALANCE	113,534	123,080
TOTAL LIABILITIES AND FUND BALANCE	$240,376	$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
Operating fees	$11,529	$80,704	$66,925
Interest	797	4,227	3,861
Other	45	321	227
Total Revenues	12,371	85,252	71,013

EXPENSES, NET⁴	July 2024	Year-to-Date July 2024	Year-to-Date July 2023
Employee wages and benefits	$9,545	$64,666	$59,535
Travel	630	3,720	3,571
Rent, communications, and utilities	198	1,068	1,228
Contracted services	1,429	13,864	13,521
Depreciation and amortization	325	2,195	2,096
Administrative	165	1,093	1,121
Total Expenses, Net	$12,292	$86,606	$81,072
EXCESS OF REVENUES OVER / (UNDER) EXPENSES	79	(1,354)	(10,059)
FUND BALANCE—Beginning of period	113,455	114,888	133,139
FUND BALANCE—End of period	$113,534	$113,534	$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
Excess of revenues over (under) expenses	$79	$(1,354)	$(10,059)
Adjustments to reconcile excess of revenues over (under) expenses to net cash provided by operating activities before allocation to the NCUSIF:
Depreciation and amortization	860	5,818	5,532
Noncash operating lease expense	-	178	205
(Increase) decrease in assets:
Due from National Credit Union Share Insurance Fund	(45)	1,603	19
Employee advances	2	(13)	(1)
Other accounts receivable, net	221	322	189
Prepaid expenses and other assets	(649)	(3,980)	(3,160)
(Decrease) increase in liabilities:
Accounts payable	(2,373)	2,001	2,653
Operating lease liabilities	-	22	(216)
Accrued wages and benefits	3,231	(1,663)	(565)
Accrued FECA and unemployment benefits	-	79	146
Deferred revenue	(11,529)	57,645	47,803
Accrued annual leave	-	1,333	1,884
Accrued employee travel	-	(276)	(250)
Net Cash Provided by/(Used in) Operating Activities	(10,203)	61,715	44,180
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed and intangible assets	(733)	(1,670)	(3,896)
Net Cash Provided by/(Used in) Investing Activities	(733)	(1,670)	(3,896)
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	(10,936)	60,021	40,264
CASH AND CASH EQUIVALENTS—Beginning of period	187,144	116,187	127,011
CASH AND CASH EQUIVALENTS—End of period	$176,208	$176,208	$167,275
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 $46,376 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.