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SCMS 1st Year Pre-Arrival Assignment-Student Completion

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									                        Understanding Financial Statements
                         Presented by Deborah L. Rightmire
Dear 1st Year Students:

Welcome to Southwest CUNA Management School. This exercise was developed to
familiarize you with the basic structure of a credit union's Balance Sheet and Income &
Expense Statement. This data reflects the numeric results of management and Board
decisions. These amounts allow the credit union to monitor performance using key
operating ratios. These measurements summarize asset and liability mixes, lending
and investment activity, pricing of loans and deposits, loan quality, capital adequacy,
earnings, liquidity, and interest rate risk.

An understanding of financial statements allows you to monitor the health of your credit
union, measure your contribution to the credit union's financial performance, and set
reasonable goals for your credit union.

On the tab entitled "Entries for Template", you will find a list of financial statement entries
that mirror the credit union's Call Report. This sheet includes Balance Sheet and Income
& Expense Statement information. These entries are in no particular order. Place these
entries in the correct order on the tab entitled "Template" for the Balance Sheet and
Income & Expense Statement. After you have constructed these financial statements,
make sure that assets and liabilities are in balance.

Also included with this exercise is a short list of common acronyms or abbreviations.
These acronyms/abbreviations stand for associations, performance measurements,
and programs associated with the credit union industry. On the tab entitled "Acronyms",
please fill in the blanks along with your personal information. Once both are completed,
please Email this Excel spreadsheet to Sandy Arnesen at sarnesen@tcul.coop.
We will review your submission and contact you with the results.

We look forward to meeting you this summer!

Best regards,

Deborah L. Rightmire
Office: 469.385.6496 or 800-442.5762, Ext. 6496
                   Statement of Financial Condition (Balance Sheet)

     Assets
1
2
3
4
5
6
7
8
9
10


     Other Assets
11
12
13
14
15


     Total Assets                                                     $0


     Liabilities
1
2
3
4
5
6
7
8
9


     Total Liabilities                                                $0


     Equity
10
11


     Total Liabilities, Shares & Equity                               $0
                             Statement of Income & Expense

     Interest Income
1
2
3
4
     Total Interest Income                                   $0


     Interest Expense
5
6
7
     Total Interest Expense                                  $0


8    Provision for Loan & Lease Losses

     Non-Interest Income
9
10
11
12
13
     Total Non-Interest Income                               $0


     Non-Interest Expense (Operating Expenses)
14
15
16
17
18
19
20
21
22
23
     Total Non-Interest Expense                              $0



     Net Income                                              $0
                     Statement of Financial Condition (Balance Sheet)
                                 Year-End Entries

1    (Less): Allowance for Loan & Lease Losses                              ($354,769)
2    Accounts Payable & Other Liabilities                                     $598,610
3    Accrued Dividends & Interest Payable on Shares & Deposits                 $27,141
4    All Other Investments                                                  $2,016,595
5    Cash Equivalents (Investments with Maturities of 3 Months or Less)       $500,000
6    Cash on Hand                                                             $534,253
7    Deposits in Commercial Banks                                          $20,705,000
8    IRA/KEOGH Accounts                                                     $5,193,061
9    Land & Building                                                        $1,346,145
10   Money Market Shares                                                   $20,897,172
11   NCUA Share Insurance Capitalization Deposit                              $600,067
12   New/Used Vehicle Loans                                                $23,819,330
13   Non-Member Deposits                                                       $99,000
14   Other Assets                                                             $400,203
15   Other Fixed Assets                                                       $456,039
16   Promissory Notes-Borrowed Money                                          $150,000
17   Real Estate Loans                                                      $4,994,690
18   Regular Reserves                                                       $1,302,937
19   Regular Shares & All Other Shares                                     $15,253,785
20   Share Certificates                                                    $11,961,108
21   Share Drafts                                                           $8,480,286
22   Total Cash on Deposit (Amounts Deposited in Financial Institutions)    $6,895,663
23   Total Foreclosed & Repossessed Assets                                    $105,000
24   Trading Securities/Held-to-Maturity Securities                         $1,500,000
25   Undivided Earnings & All Other Reserve Accounts                        $5,819,940
26   Unsecured Credit Card Loans-Other Unsecured Loans/Lines of Credit      $6,264,824
                              Statement of Income & Expense
                                   Year-End Entries


1    (Less): Interest Refunded                                ($130,000)
2    Dividends on Shares                                        $454,520
3    Educational & Promotional Expense                           $97,894
4    Fee Income                                                 $847,449
5    Gain(Loss) on Disposition of Fixed Assets                   $20,000
6    Gain(Loss) on Investments                                ($236,293)
7    Income from Investments                                    $877,844
8    Interest on Borrowed Money                                   $5,000
9    Interest on Deposits                                       $444,343
10   Interest on Loans                                        $2,809,065
11   Loan Servicing Expense                                      $34,297
12   Member Insurance (Includes Corporate Stabilization)        $145,417
13   Miscellaneous Operating Expenses                            $65,453
14   Office Occupancy Expense                                   $190,890
15   Office Operations Expense                                $1,000,315
16   Operating Fees                                              $10,283
17   Other Non-Operating Income                                 $324,353
18   Other Operating Income                                     $180,628
19   Professional & Outside Services                             $67,837
20   Provision for Loan & Lease Losses                          $374,461
21   Total Employee Compensation & Benefits                   $1,427,620
22   Trading Profits and Losses                                  $10,000
23   Travel & Conference                                         $31,446
Credit Union Name
Your Name
Your Job Title
Email
Office Phone
Home Phone (Optional)
Cell Phone (Optional)


      Describe these Common Abbreviations and Acronyms

ALCO
ALM
IRR
NCUA
NCUSIF
WOCCU
PCA
ROA
NOER
DOR
LUA
FOM
RBNW

								
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