DATE:       June 2002                                   LETTER NO.:  02-CU-10

TO:            Federally Insured Credit Unions

SUBJ:            Future Computer System Requirements for Processing Electronic Call Reports (Forms 5300 and 5300SF) and Report of Officials

DEAR BOARD OF DIRECTORS:

NCUA is introducing enhancements to the Call Report and Report of Officials programs that will make them easier for credit unions to use, run more efficiently, and be less costly for NCUA to support. Starting with the September 2002 Call Report cycle, NCUA will no longer issue Call Report programs that run on the Windows 3.11 operating system.

In order to use the new Call Report and Report of Officials programs, access to a computer running one of the following Microsoft operating systems will be required:

• Windows 95
• Windows NT
• Windows 98
• Windows 2000
• Windows Millennium Edition (ME)
• Windows XP

In addition, the computer used by the credit union must also have a CD-ROM drive, Microsoft Internet Explorer (Version 5.0 or higher) and 2 megabytes of free hard disk space. The September 2002 Call Report software program will be compatible with any printer supported by any of the above operating systems.

By redesigning these programs to take advantage of capabilities that are not available in Windows 3.11, NCUA is able to develop and support the short version of the Form 5300 (Form 5300SF) along with the standard version. The short form will be available during the September and March reporting cycles and will significantly reduce the reporting burden on smaller credit unions. Furthermore, the on-line capabilities of the new programs will provide credit unions the option of submitting their Call Reports via the Internet starting with the December 2002 cycle. In addition, the programs will be distributed on CD-ROMs instead of floppy diskettes, which will reduce costs associated with distributing the software.

Beginning with the December 2002 Call Report cycle, Internet access will be necessary if a credit union wishes to use the program’s on-line features, including electronic transmission of the Call Report data directly to NCUA. Credit unions will continue to have the option of returning a diskette or filing a paper form.

We appreciate your cooperation in helping us improve the efficiency of our data collection program.

                                                            Sincerely,

                                                            /S/

                                                            Dennis Dollar
                                                            Chairman