Summary: The audit of the National Credit Union Administration's (NCUA) financial statements for the 15 months ended September 30, 1977, revealed several areas in which improvements in management were needed. Because share insurance fund losses can be lowered, the Administrator or his designee, when acting as a liquidating agent for liquidating credit unions, should take the necessary legal action to recover unpaid amounts from borrowers who are able but do not repay their loans. Examiners should review credit union automatic data processing (ADP) systems, and the Administrator should develop the necessary ADP skills among his staff who process credit union financial transactions. The internal audit staff of the NCUA should also increase their ADP technical proficiency, including designing necessary controls into the automated system, making postinstallation evaluations, and ascertaining system reliability. ADP management should be strengthened by establishing an ongoing ADP committee, requiring specific program documentation, and developing sufficient security measures and plans in case of an emergency.
