A Letter from the CEO

At the end of every year, we all take time to reflect and take stock of where we find ourselves. 2020 will be a year to remember, filled with challenges that have tested our resolve and problem-solving abilities.

As the National Council of Firefighter Credit Unions Inc (NCOFCU)  leaders continue to navigate rapidly changing conditions that impact our ability to meet our members' expectations and needs. It's clear that our firefighter, first-responder credit union's resilience is on full display.

Our firefighter and first-responder credit unions have become nimbler and more adaptive during this crisis. They have exhibited tremendous perseverance in serving workers on the front lines of this pandemic. We must take this time to celebrate and be proud of our community. Ultimately, our fortitude and our collective purpose – firmly rooted in our need for connection, for answers, for personal growth – will see us through this pandemic and beyond.

As 2020 comes to an end, we thank you for being a follower of NCOFCU, and we wish you and your loved ones a happy, safe holiday and may 2021 be filled with good health, professional and personal growth opportunities, and promise.

See you in Fort Worth, TX September 29th – October 2^nd, 2021

Grant Sheehan CEO
NCOFCU

 

 

New vehicle sales in the U.S. are expected to close 2020 down at least 15%

NEW YORK–Sales of new vehicles in the U.S. are expected to close 2020 down at least 15%, which would mark one of the industry's worst annual declines since at least 1980.
Vehicle Sales

But as CNBC reported, “In any normal year, such a rapid fall would have meant an industry in crisis. But in 2020, the overwhelming sentiment is ‘it could have been worse’.”

CNBC reminded that during the first peak of COVID-19 in the Spring,  sales of new vehicles collapsed as auto plants shuttered and many dealers were forced to close showrooms. J.D. Power even forecast retail sales would decline by as much as 80% in April, leading to likely near-recession sales levels for the year.

But retail sales to consumers rebounded far faster than anyone forecast, the report stated. Sales during the second quarter declined by about 34%. They were largely driven by rock-bottom interest rates, historically long financing offers and people wanting to hit the open road instead of taking public transportation or airlines, CNBC reported.

"A big comeback story of 2020 is without a doubt the recovery of retail vehicle sales, which have nearly returned to pre-pandemic levels," Jessica Caldwell, Edmunds' executive director of insights, told the news outlet.

2020 sales

Edmunds is projecting new vehicle sales to be down 15.5% this year when the final statistics are released in roughly two weeks. That's in line with other industry estimates calling for sales of about 14.4 million to 14.6 million new vehicles in 2020 – down from 17 million in the past five years on average. Cox Automotive is forecasting a 15.3% decline, while TrueCar expects a 15% loss compared with 2019 sales.
 

NCUA Board Approves Proposed Rule to Allow Exemptions from SAR Requirements

REQUIRED INFORMATION FOR CREDIT UNION BOARD CHAIRMEN AND MANAGEMENT

Board Approves Proposed Rule to Allow Exemptions from SAR Requirements

ALEXANDRIA, Va. (Dec. 23, 2020) – The National Credit Union Administration Board unanimously approved, by notation vote, a notice of proposed rulemaking (opens new window) that would amend the agency’s Suspicious Activity Report (SAR) regulation.

The proposed regulation would permit the NCUA to issue, on a case-by-case basis, exemptions from SAR filing requirements to federally insured credit unions, when the exemption is consistent with safe and sound practices and can improve the effectiveness and efficiency of Bank Secrecy Act reporting. The proposed rule would also make it possible for the NCUA to grant exemptions, in conjunction with the Financial Crimes Enforcement Network, to federally insured credit unions that develop innovative solutions to meet Bank Secrecy Act requirements.

The NCUA expects these amendments will reduce regulatory burdens on federally insured credit unions and encourage technological innovation within the credit union system.

These proposed changes are part of a coordinated effort between the NCUA, FinCEN, and the federal banking agencies to improve the efficiency and effectiveness of Bank Secrecy Act compliance programs and facilitate greater innovation within the banking sector.

Comments on the proposed rule (opens new window) will be accepted for 30 days after publication in the Federal Register.

EEOC Offers an Answer - Can An Employee Who Declines to be Vaccinated Against COVID-19 Be Banned from Workplace?

WASHINGTON– The federal government has provided greater clarity around whether employees can be required to get a COVID-19 vaccine before returning to work. The short answer employers can require workers to be vaccinated or otherwise be barred from the workplace, according to the U.S. Equal Employment Opportunity Commission—but the guidance comes with a caveat.
thumbnail_EEOC

Separately, a panel of the Centers for Disease Control and Prevention has voted to include financial services workers in Phase 1c of COVID-19 vaccinations. The recommendations of the CDC’s Advisory Committee on Immunization Practices mean credit union employees would be prioritized for vaccine doses alongside workers in sectors considered essential but with a substantially lower risk of exposure to COVID-19.

Mike Richards CPA Industry Trends

Weekly News Summary
Here are some things that were in the news last week. Please share these articles with your Supervisory Committee and Board of Directors. If you missed previous editions of the weekly news, summaries of those can be viewed at our archive.   

Happy Holidays!
Mike Richards, CPA
    

Economic and Industry Issues Knowledge is the key to effective corporate governance. Staying abreast of economic and industry issues affecting your credit union will prepare you for those responsibilities. Facing year-end cut off, U.S. banks scramble to extend COVID accounting relief Read More  NCUA Quarterly U.S. Map Review – Third Quarter 2020 Read More  Payments Trends In The Age of Coronavirus Read More  The lasting impact of COVID-era audits Read More

Regulatory and Accounting Issues

 

Regulatory and accounting issues are changing all the time. Staying abreast of those changes is an important part of the corporate governance. Congress agrees to $900 billion Covid stimulus deal after months of failed negotiations Read More  NCUA extends COVID relief, approves subordinated debt rule Read More

Fraud Awareness As you will see from reviewing these articles, fraud can happen in any credit union. Staying vigilant is the key to preventing your credit union from being the next victim.  Grand jury indicts pair for stealing money from three St. Louis-area credit unions Read More  Ex-manager of Denison credit union pleads not guilty to $1.5 million embezzlement  Read More

 

If this email was forwarded to you by another subscriber, you can join our mailing list and have the free Weekly News Summary sent directly to you. Subscribe now   Visit us at richardscpas.com