No. 2001-01
DATE: January 29, 2001
SUBJ: Computing Moving Daily Average Net Assets (MDANA)
TO: The Corporate Credit Union Addressed:
Many corporate credit unions have investments in Credit Union Service Organizations. According to Generally Accepted Accounting Principles, some are required to prepare their financial statements on a consolidated basis.
Part 704.3 of the NCUA Rules and Regulations require capital and reserve ratios
be computed using MDANA. Part 704 does not specify whether MDANA is required
to be computed using consolidated or unconsolidated assets. As a result, there
is an inconsistent approach being used by corporates.
It is the intent of Part 704 to require calculation of MDANA using only corporate
credit union assets. Therefore, effective with the January 2001 (5310 Reporting),
MDANA is to be calculated using unconsolidated assets. This will ensure a consistent
approach and should lessen the burden when calculating MDANA.
If you have any questions, please contact this office at (703) 518-6640.
Sincerely,
Robert F. Schafer
Director
Office of Corporate Credit Unions
OCCU/GWC:gc
cc: State Supervisory Authorities
NASCUS
bcc: Reading File
All OCCU Staff
SSIC 3500
F/U 2/16/01 (FASB 133 Questions)
draft: s:\WorkIn Process\Office Staff\Curtis\Guidance Letter-Computing MDANA.doc
final: s:\Directives\OCUGuidanceLetter\2001-01-Computing MDANA.doc