Financial Checkup Report

Every Credit Union Can Benefit From a Financial Checkup

What is a Financial Checkup Report?

It’s just like a health check up you would get for yourself, from a trained medical professional. You’re busy living your life every day so it’s hard to notice if there is an accumulation of tiny changes that adds up to a situation that requires attention.

Asset yields can drop alarmingly low and expenses can creep up without any daily alerts, just like a person’s blood pressure can change without them noticing a thing. That’s why it’s a good idea to get checked over by someone who looks at your situation with fresh eyes. They will notice many changes you before you are aware of them.

Why isn’t the NCUA call report feedback enough of a check up?

Great question! The NCUA Financial Performance Report (FPR) can turn up trends, but only if they are dramatic enough over a short 3 month period to trigger something in the computer program that prepares them. You could think of those NCUA reports like making a quick stop for a blood pressure check at the drugstore. They’ll tell you if something is severely amiss in one of the CAMEL ratios, but you already know there’s so much more to a successful CU than ratios.

The NCUA FPR is looking for signs of a failing CU. The agency is just not organized to help directors and management find opportunities to better serve your membership and grow toward your credit union’s full potential.

How much time will it take to have a Financial Check up?

It takes less time than you would spend reading a magazine in your doctor’s office! You provide whatever parts of your CU’s audit and examination reports you wish to share, and the bulk of the data needed comes from the decades of your CU financial information stored on www.ncua.gov. If your CU has any recent member information – either from a survey of membership or from closed accounts - please send that also.

Your full color check up report will arrive in about a month from the date all of your information arrives at the consultant’s office. If you have an urgent need please ask if the consultant can accommodate you.  Usually we can!

What beneficial uses are there for the Financial Check up Report?

• This information is very helpful to have when preparing a budget, a strategic planning session, and/or a response to regulators.
• Helpful to Board to design a continuing education plan for CEO, if needed and it’s an independent evaluation of your CU’s performance that goes far beyond a CPA check for accurate records or a regulators examination for compliance and lack of risk to the insurance fund.
• A Financial Check up Report includes color charts and graphs, an economic forecast for the coming year, as well as an easy to understand summary of your credit union’s financial strengths & weaknesses. (Sample report attached.)
• Recommended action plans to take your CU to the next higher level are also included.

Financial Check up Report Table of Contents consists of:

• Graphs of key ratios and financial trends
• Financial Condition executive summary
• Regulatory & Audit exceptions summary
• Member demographics – if information provided to consultant
• Opportunities to improve
• Mission & Vision comparison to actual results

How much is a Financial Check up Report?

Price for a Financial Check up Report $750 (1)

Optional Live Presentation by Consultant $250 (2)

1. If your CU selects this consultant facilitate a strategic planning session, within 6 months of this report, $500 is credited on that invoice.
2. Presentation by the consultant of the survey results, and a discussion of the courses of action most likely to reverse the trend. Any long distance charges or travel expenses are in addition to this price.

How often would my CU benefit from a Financial Check up Report?

It’s a good idea to get at least one a year, probably semi-annually or even quarterly if your board tracks results of their Strategic Plan and Goals.

How often should by CU hold Strategic Planning meetings?

Once a year is about the right amount of time to allow to pass before reevaluating the information used to set strategies and goals. Certainly no more than 18 – 20 months should pass between planning sessions because the world changes so quickly in the 21^st century.

What does a Strategic Planning Session cost when lead by a Shared Resources consultant?

Effective 7-1-2006 our pricing, before the $500 credit will be (3)

Friday evening & Saturday $2800

One day $2200

Two or more days $1800 per day

(3) plus out of pocket travel and printing/production costs

What’s the first step to start the Financial Check up Process?

Please contact Carolyn Warden, CCUE at your convenience to begin the process or ask questions. Phone: 303-791-1768 or 720-841-1413 or email: carolyn@carolynwarden.com

You may also use this online form:

Information Request Form