NCUA’s Inspector General Plans Audit of MDI Program
The NCUA’s Inspector General has announced it will conduct an audit of the agency's Minority Depositary Institution program. Learn why.
Minority Depository Institution program remains a high priority for NCUA board amidst review.
The National Credit Union Administration (NCUA)’s Inspector General (IG) is auditing the agency’s Minority Depository Institutions (MDI) program to determine its effectiveness, a new report reveals.
In its semi-annual report to Congress, the IG simply describes the program and said it is being audited “to determine whether the NCUA’s [MDI] program is achieving its goals.”
Under federal law, agency IGs are required to file reports twice a year detailing their activities during the previous six months. The reports catalogue investigations IGs have conducted and often include information about specific probes planned for the next six months.
Where the NCUA Board Stands on Program
The MDI program has been cited as a high priority by all three members of the NCUA board.
“The NCUA is fully committed to supporting MDIs, by providing these community institutions with needed resources like training, grants, loans, technical assistance, and mentoring opportunities,” said agency Chairman Todd Harper earlier this month, adding, “During the pandemic, MDIs increased membership and lending. They also expanded services to underserved consumers and communities.”
In its 2020 MDI report—the most recent available—the agency said it was regulating 520 federally insured credit unions that were designated MDIs, up from 514 at the end of 2019. Further, MDI credit unions served more than 4.3 million members, up from 3.9 million in 2019, while reporting total assets of $51.1 billion, compared to $40.5 billion at the end of 2019.
In addition to the MDI audit, the IG also is conducting a study to determine whether the NCUA adequately reviews credit unions for compliance with the Bank Secrecy Act (BSA) during the agency’s safety and soundness examinations. The IG explained that study is aimed at determining if the NCUA issues timely informal or formal enforcement actions to address violations and follows up on reported BSA violations to ensure that credit unions are taking appropriate actions.