MANAGEMENT OVERVIEW
September 30, 2024
Balance Sheets
Cash and cash equivalents had a month-end balance of approximately $150.7 million. The balance decreased by $9.9 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.
Other accounts receivable, net had a month-end balance of $670.2 thousand. Its balance increased by $173.0 thousand from prior month.
Accounts payable are trade, relocation and inter-agency payables. The balance decreased by $1.3 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 $1.3 million 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 $9.9 million from prior month. In the current month, $10.3 million was used in operating activities, $469.8 thousand was provided by investing activities, and $11.2 thousand was used in financing activities.
BALANCE SHEETS
As of September 30, 2024 and 2023 (Dollars in thousands)
| ASSETS | September 2024 | September 2023 |
|---|---|---|
| Cash and cash equivalents | $150,663 | $143,309 |
| Due from National Credit Union Share Insurance Fund | - | 36 |
| Employee advances | 13 | - |
| Other accounts receivable, net | 670 | 547 |
| Prepaid expenses and other assets | 8,124 | 6,475 |
| Operating lease right-of-use assets | 1,665 | - |
| Fixed assets1 | 31,321 | 34,818 |
| Intangible assets2 | 19,930 | 23,202 |
| TOTAL ASSETS | $212,386 | $208,387 |
LIABILITIES AND FUND BALANCE
| LIABILITIES | September 2024 | September 2023 |
|---|---|---|
| Accounts payable and accrued other liabilities | $23,738 | $22,243 |
| Finance lease liabilities | 131 | 159 |
| Operating lease liabilities | 1,990 | - |
| Accrued wages and benefits | 9,641 | 8,150 |
| Accrued FECA and unemployment benefits | 294 | 436 |
| Accrued actuarial FECA benefits | 3,244 | 3,664 |
| Deferred revenue3 | 34,587 | 28,682 |
| Accrued annual leave | 25,490 | 24,965 |
| Accrued employee travel | 734 | 698 |
| TOTAL LIABILITIES | 99,849 | 88,997 |
| FUND BALANCE | 112,537 | 119,390 |
| TOTAL LIABILITIES AND FUND BALANCE | $212,386 | $208,387 |
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE
For the periods ended September 30, 2024 and 2023 (Dollars in thousands)
| REVENUES | September 2024 | Year-to-Date September 2024 |
Year-to-Date September 2023 |
|---|---|---|---|
| Operating fees | $11,529 | $103,762 | $86,046 |
| Interest | 617 | 5,579 | 5,201 |
| Other | 42 | 396 | 293 |
| Total Revenues | 12,188 | 109,737 | 91,540 |
| EXPENSES, NET4 | September 2024 | Year-to-Date September 2024 |
Year-to-Date September 2023 |
|---|---|---|---|
| Employee wages and benefits | $8,186 | $81,922 | $76,795 |
| Travel | 792 | 5,120 | 4,709 |
| Rent, communications, and utilities | 278 | 1,552 | 1,692 |
| Contracted services | 3,938 | 19,345 | 17,858 |
| Depreciation and amortization | 307 | 2,828 | 2,728 |
| Administrative | 8 | 1,321 | 1,507 |
| Total Expenses, Net | $13,509 | $112,088 | $105,289 |
| EXCESS OF REVENUES OVER / (UNDER) EXPENSES | (1,321) | (2,351) | (13,749) |
| FUND BALANCE—Beginning of period | 113,858 | 114,888 | 133,139 |
| FUND BALANCE—End of period | $112,537 | $112,537 | $119,390 |
STATEMENTS OF CASH FLOWS
For the periods ended September 30, 2024 and 2023 (Dollars in thousands)
| CASH FLOWS FROM OPERATING ACTIVITIES | September 2024 | Year-to-Date September 2024 | Year-to-Date September 2023 |
|---|---|---|---|
| Excess of revenues over (under) expenses | $(1,321) | $(2,351) | $(13,749) |
| Adjustments to reconcile excess of revenues over (under) expenses to net cash provided by operating activities before allocation to the NCUSIF: | |||
| Depreciation and amortization | 815 | 7,496 | 7,206 |
| Noncash operating lease expense | 89 | 267 | 308 |
| (Increase) decrease in assets: | |||
| Due from National Credit Union Share Insurance Fund | 28 | 1,648 | (17) |
| Employee advances | - | (13) | - |
| Other accounts receivable, net | (173) | (65) | (194) |
| Prepaid expenses and other assets | 1,781 | (2,429) | (1,805) |
| (Decrease) increase in liabilities: | |||
| Accounts payable | (1,330) | 2,093 | 1,642 |
| Operating lease liabilities | (64) | (42) | (325) |
| Accrued wages and benefits | 1,053 | (5,944) | (3,496) |
| Accrued FECA and unemployment benefits | 47 | 126 | 253 |
| Accrued actuarial FECA benefits | (420) | (420) | 381 |
| Deferred revenue | (11,529) | 34,587 | 28,682 |
| Accrued annual leave | (53) | 1,280 | 1,853 |
| Accrued employee travel | 734 | 459 | 448 |
| Net Cash Provided by/(Used in) Operating Activities | (10,343) | 36,692 | 21,187 |
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||
| Purchases of fixed and intangible assets5 | 470 | (2,180) | (4,857) |
| Net Cash Provided by/(Used in) Investing Activities | 470 | (2,180) | (4,857) |
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||
| Principal payments under finance lease liabilities | (11) | (36) | (32) |
| Net Cash Provided by/(Used in) Financing Activities | (11) | (36) | (32) |
| NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS | (9,884) | 34,476 | 16,298 |
| CASH AND CASH EQUIVALENTS—Beginning of period | 160,547 | 116,187 | 127,011 |
| CASH AND CASH EQUIVALENTS—End of period | $150,663 | $150,663 | $143,309 |
| SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES | |||
| Retirement of fully depreciated assets | $615 | $1,192 | $327 |
| Acquisition of equipment under finance lease | $(21) | $(21) | $(31) |
The balances in the statement above are preliminary and unaudited.
1 Net of accumulated depreciation of $46,720 and $43,368 as of September 30, 2024 and 2023, respectively.
2 Net of accumulated amortization of $39,038 and $34,357 as of September 30, 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.
5 The net cash provided by investing activities in September 2024 was $470k primarily due to cash used for purchases of fixed and intangible assets of $626k in August 2024 that was later determined and reclassed to expense in September 2024, offset by $156k cash used for purchases of fixed and intangible assets activities in September 2024.