Parts 1 & 2: Thursday, April 9, 2020
Parts 3 & 4: Friday, April 10, 2020
12:00 – 3:30 pm (Eastern Time)
11:00 – 2:30 pm (Central Time)
10:00 – 1:30 pm (Mountain Time)
9:00 – 12:30 pm (Pacific Time)
Credit Union (CUs) have attracted many newcomers to the industry, often at entry level positions. Those newcomers generally work their way up to more challenging positions at the CU. Because of the relatively small size and limited resources at most CUs, formal training is in many cases a luxury. Employees have to learn on the job. This is not always the best or easiest way. The new CU employee needs an overview of his or her CU and the industry the CU is part of. Also, he or she needs basic knowledge about how the CU fulfills its quarterly responsibility for filing financial information with the CU’s regulator – the NCUA. This webinar satisfies those needs.
This exclusive BankersHub training is an excellent way for credit unions to provide reasonably priced professional training to all financial staff, including bookkeepers, accountants, clerks and Chief Financial Officers. It gives management comfort that employees know what to do to avoid reporting errors, omissions and revisions. It also demonstrates to regulators that the credit union is serious about keeping its staff educated on critical reporting requirements.
CU Call Reports 101: Introduction to Forms 5300 and 5310
April 9, 12:00 – 1:30 pm ET
This introductory CU accounting webinar provides the basic overview of the CU industry, primarily by providing a brief history of the industry. It highlights pivotal events in the CU industry evolution, and how important changes have occurred in the industry over the years. It also provides a solid understanding of how the independent CU industry regulatory mechanism works [e.g. how CU depositors (a/k/a CU members) are protected, and how regulators oversee the financial affairs of each CU by reviewing each CUs quarterly Form 5300, which is covered in this webinar in a fashion that is suitable for new, inexperienced CU personnel.]
CU Call Reports 201: A Closer Look at Form 5300
April 9, 2:00 – 3:30 pm ET
The Form 5300 quarterly Call Report for natural person credit unions (CUs) represents a very detailed balance sheet and income statement with very detailed supporting Schedules. The Form 5300 is unique to the CU industry and requires a careful look by those involved with it as preparers or reviewers. The most important Schedule is the balance sheet with its intricate handling of loans and investments and its lack of the typical “stockholders’ equity” section. The income statement is straight forward and lacks the uniqueness of the CU balance sheet. Although important, the income statement is not as important as the balance sheet and has less coverage in this webinar.
This 2nd installment in our Credit Union Call Report series covers each line on the important balance sheet. It uses an actual Form 5300 filed by an existing, operating CU. It covers what each line should include and not include. Where needed, it provides information to explain the contents of a particular line. Such information includes background on the industry matter and the accounting and regulatory concerns. Attendees will receive significant information to provide them with a solid hands-on understanding about the important aspects of the Form 5300.
This accounting training also provides an overview of the NCUA online system. It explains the roles of the users of that system and the nine (9) types of information that must be kept current in each of the CU Profile Tabs within the online system.
CU Call Reports 301: Calculations of Net Worth Ratio and Risk-Based Capital Ratios
April 10, 12:00 – 1:30 pm ET
Although Credit Unions (CUs) do not have the traditional stockholders’ equity section in the CU’s balance sheet, the CU still must have enough net worth to carry its assets. The minimum standards established for CUs to be well capitalized are:
This 3rd installment in our Call Report for Credit Unions webinar series explains the importance of maintaining sufficient capital to handle excess stress during hard economic times. It also shows how the NCUA follows the direction provided by Basel III in establishing net worth ratios to determine when a CU is:
It also explains circumstances when the NCUA Board can take supervisory actions by forcing CUs to comply with certain “reclassifications.”
The accounting webinar will also review each line on page 12 of Form 5300 – the PCA net worth calculation worksheet – explaining how the automated system populates the various lines and how the CU Administrator must input amounts on certain lines. Although no input is required by the CU, the webinar carefully explains how RBNW is calculated.
CU Call Reports 401: Credit Union Loan Classifications for the CU Call Report Form #5300
April 10, 2:00 – 3:30 pm ET
How to classify loans for CU Call Report purpose is still a mystery for CU Call Report preparers. Perhaps the word mystery goes a bit too far. Nevertheless, loan classification for CU Call Report purposes is very challenging indeed. A Schedule with only twelve possible lines, surprisingly, causes much trouble and frustration. Once the overall approach to classification “clicks,” the Schedule become rather routine and less burdensome. With time and experience, the categorization mystery slowly fades away. Experienced CU Call Report personnel can confirm this fact.
This final webinar in our Credit Union Call Report accounting series focuses on the Schedule called “Loans and Leases as of ______” (page 6 of Form 5300). That page 6 requires the preparer to insert, on lines 1 to 13, the # and $ amount of all CU loans (direct and participations) by appropriate line category. The total of those lines must equal the # and $ amount on the Loans and Leases line 19 on the balance sheet, page 2. That is easier said than done. The webinar explains exactly what should be included on each of the lines 1 to 13. Emphasis is placed on the type of collateral for each type of loan. Collateral dictates where a particular loan appears on the appropriate lines 1 through 13.
The call report training explains the collateral tracking tool used by many CUs. Particular emphasis is placed on the following five collateral types:
Type M is especially useful with up to 99 sub-types.
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.
6.0 CPE Credits