The Temporary Corporate Credit Union Stabilization Fund'sfinancial statements "present fairly, in all material respects,''the fund's financial statement, according to an audit released lateyesterday by the NCUA.

The technical term for the finding is that the auditor"expressed an unqualified [without reservations] opinion,'' aboutthe presentation of the fund's numbers.

The audit, which was conducted by KPMG, also "did not identifyany deficiencies in internal control over financial reporting thatwe consider material weakness.''

It was the first independent audit of the fund, which Congresscreated last year to help credit unions spread out the costs ofrescuing some of the corporate credit unions which experiencedserious financial difficulties.''

The fund has a line of credit with the Treasury Department andseven years to repay the costs. Earlier this year, the NCUAannounced a 13.4 basis point assessment to pay this year's portionof the costs.

The fund has $6.4 billion set aside for current estimates oflosses that would be incurred by the fund over the life of thesecurities and must repay the Treasury Department $690 million inoutstanding borrowings. Congress gave the NCUA a $6 billion line ofcredit last year, but the agency has only used $1 billion todate