CGECU audit shows increased net deficiency in 2008
(October 19, 2009)
The audited financial statements of the Commonwealth Government Employees' Credit Union (CGECU) as of December 31, 2008 and 2007 showed that net deficiency at December 31, 2008 increased by $93,568 to $1,469,437 from $1,375,869 in 2007. According to Burger & Comer, the increase was attributed to decreases in interest income on loans and other revenues.
Other Financial Highlights
Operating revenues in 2008 increased by $6,650 or 3% from 2007. Total loan approvals and disbursement were lower than the prior year which which meant a decrease in revenues from loan interest and loan fees. Operating revenues in 2007 decreased by $73,553 from 2006 which was attributed to a decrease in total loan approvals and disbursements.
The Credit Union's interest rates on unsecured loans remain fixed at 16% and 18% depending on the borrower's credit history. However, the interest rate for partially secured loans is 12%. Several delinquent loan accounts in the process of collection were assessed late charges of 5% of the monthly payment due but not exceeding $25.
The Credit Union's total write-off of delinquent loans in 2008 was $1,696. Interest expense for NMIRF loan amounted to $135,144 and $138,209 and interest expense on members' savings accounts amounted to $13,801 and $15,008 for the years ended December 31, 2008 and 2007, respectively.
Total operating expenses for 2008 decreased by 40% or $130,068 from 2207. This was mainly due to decreases in salaries, wages and fringe benefits, pension benefits, depreciation, communications, supplies and services, travel, and dues and subscriptions.
Download/view CGECU Audited Financial Statements 2008 & 2007