CECL Update with Jay Kruse
by Jay Kruse
Chief Advocacy Officer
9/3/2019

Does CECL have you scratching your head, wondering, “Where do I even begin?” You are not alone!

Credit unions across the country are searching for cost-effective resources to assist in preparing for the eventual accounting standards charges. The latest news on CECL involves FASB’s most recent proposed delay of CECL’s effective date. Comments regarding the proposed delay are due by September 16th. This CUAD supported proposed change would move back the effective date for CECL compliance to January 2023. 

While this proposed delay will provide credit unions with some additional time to implement the accounting standards change, now is not the time to kick the can down the road when it comes to your preparation. But, don’t let these changes haunt your dreams, your Association has your back! We are currently aggregating and developing a one-stop FREE CECL toolkit that will be available to assist credit unions in preparing for the future.

We have partnered with another state association that has developed and shared with us some CECL resources geared toward helping small credit unions across the country meet the new CECL requirements. We think these resources can be a game changer for credit unions in the Dakotas.

These resources include:

  • A primer outlining how a small credit union can complete CECL without having to hire an outside vendor.
  • 5 Excel spreadsheets detailing 3 methodologies, a forecast, and qualitative factors
  • 8 videos covering just about everything in the primer and spreadsheets. All the videos combined run about 2 hours and 45 minutes. 

We are also currently compiling some free policy options to assist credit unions in updating their current policies to reflect the CECL changes. 

In addition to these electronic resources, I (Jay Kruse) will be attending CUNA’s CECL School in Tempe, AZ, this week, and will serve as your CECL “human” resource here at CUAD, as you implement the required changes. As your Chief Advocacy Officer, I do have a unique interest in CECL due to my prior work experience as a Controller and educational background in both accounting and finance. 

CUNA’s CECL School will provide comprehensive CECL training, taking a deep dive into the new standard from experts in the industry. The school promises to cover everything needed for a smooth transition including:

  • Best practices to make compliance easier
  • Knowledge of the new standard and reserve calculation models
  • Details from FASB on their compliance expectations
  • A strategy to take back to your credit union for implementation

After my return from CUNA’s CECL School, I will compile all free online downloadable resources which will also be featured in The Memo in the upcoming weeks. While we are excited to provide the online toolkit for you to utilize for free, there may be associated costs with any additional individual one-on-one support you may need.

If you have questions, concerns, or feedback regarding CECL or any other advocacy issues, please do not hesitate to contact me.

Have a great week!

Jay

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