OAK HARBOR, Ohio-After appealing its latest examination results to NCUA as being retaliatory, Commodore Perry FCU will get the opportunity to present its case to NCUA's Supervisory Review Committee Nov. 7.
However, President Thomas Renz told Credit Union Journal he is concerned about the task ahead. Commodore Perry has appealed its examination results-including a lowering of its CAMEL score-alleging that numerous findings are not only inaccurate and false, but a result of examiner retaliation against the CU stemming from Commodore Perry alleging examiner misconduct. NCUA's Office of Inspector General investigated the conduct allegations but found no evidence of misconduct. The examiner has been transferred away from Commodore Perry.
Commodore Perry first appealed to the regional office in Atlanta this summer, and received back a "boilerplate" letter back stating the appeal had been rejected. It then appeal1ed to the SRC and also sent another letter to the regional office seeking an explanation for why the regional director made the determination to reject the original appeal. Regional Director Herb Yolles responded with an explanation.
However, what troubles Renz, is the fact the $33-million CU must now prove that the regional director's determinations are erroneous, a task much more difficult, Renz insisted, than simply coming to the review meeting and presenting the CU's case. "Unless I am reading things wrong, that is what NCUA has told us in its latest letter that set our SRC review date. Plus, what concerns me most is that the director's findings are focused more on events that occurred in 2009 and 2010, which are not the focus of our original appeal. If NCUA is not interested in the original issues... We are not going to form a separate appeal for 2009 and 2010."
Renz also told the Journal he is not surprised the OIG stated there was no examiner misconduct. "Any other finding would certainly deviate from the story line NCUA is putting forth here," Renz said.