Letter to Corporate Credit Unions No. 2011-03 Annual Reporting Requirements and Internal Control Assessments Required Under Section 704.15(a) of the NCUA Rules and Regulations

Prepared by the NASCUS Regulatory Affairs Department - July 2011

Corporate Credit Union Letter 2011-03 discusses the new management reporting requirements of NCUA's corporate credit union rule, Part 704.15(a).  The new audit and reporting requirements for management are effective January 1, 2012.

New requirements include:

  • Annual financial statements and regulatory reports must reflect any material adjustments identified by the corporate's independent public accountant (IPA) as necessary to conform to GAAP
  • The corporate¬† must submit an annual management report, signed by either the CEO or COO that contains 1) a statement of management's responsibilities to have financials prepared, establish internal controls, and comply with certain rules and regulations; 2) an assessment by management of the corporate's regulatory compliance within the past year; and 3) an assessment by management of the effectiveness of the corporate's internal controls
  • Beginning January 1, 2014 an IPA who audits a corporate's financial statements must examine, attest to, and report separately on management's assertions of the effectiveness of the corporate's internal controls and procedures for financial reporting

NCUA's letter contains links to guidance provided by other agencies with similar rules.  NCUA states that the linked guidance may be of help to corporate credit unions as they prepare to begin compliance with the new NCUA rules.