Letter to CUs States NCUA 5300 Review Yields Improvements
ALEXANDRIA, Va.-NCUA found "significant opportunities to increase efficiency and effectiveness" in its 2004 "comprehensive review" of the 5300 Call Report data collection, analysis, and reporting processes. NCUA will implement "innovative technological improvements beginning with the Sept. 30, 2005 reporting cycle. "These improvements will reduce costs, increase data integrity, expedite information dissemination, and significantly increase NCUA's risk analysis capabilities," NCUA Chairman JoAnn Johnson wrote in the Letter to Credit Unions (05-CU-10). "By leveraging technology, NCUA will also be providing the credit union community with a more efficient means to report data and new tools to access and work with this data." Key changes include: * The addition of comment boxes and controls in the 5300 Call Report software to allow credit unions to provide an explanation for data that triggers warnings programmed into the software; * The implementation of an electronic validation process that compares data reported in the current cycle to historically reported data, identifies unusual or unlikely conditions, and generates a Historical Warnings Report (HWR); * The modification of the 5300 Call Report submission process to allow credit unions to upload their transmission file for initial processing directly to an NCUA server and receive the HWR and Financial Performance Report (FPR) via e-mail within 24 hours; and * A major revision of the FPR to make it a more comprehensive and flexible tool for credit unions and examiners to check data integrity and analyze risk. NCUA Office of Small Credit Union Initiatives workshops are being offered all across the country and include 5300 updates as an agenda item. These are open to all credit unions, regardless of size.