Recordkeeping and Data Processing System

Identify the data processing system(s) the credit union will use. Discuss why the system(s) was selected and the cost of the system(s). Draft copies of the proposed hardware and software purchase or lease agreements, maintenance contracts, and vendor estimates of other ongoing costs should be reviewed by an attorney representing the proposed federal credit union’s interest. Include the documents and reviews in your application package. NCUA will also evaluate if any limitation on the terms of any draft contract would be necessary. Incorporate the associated costs (including fixed assets, amortization, depreciated expense, and others) into the pro forma balance sheets and income statements.

Note: NCUA may also request draft contracts with terms greater than one year contain the following language: “The credit union or its successor shall have the option to terminate this contract/agreement without any liability (other than for services already rendered) or penalty whatsoever to the vendor effective upon NCUA’s carrying out its Prompt Corrective Action responsibilities against the credit union pursuant to NCUA’s regulations part 702, Capital Adequacy, resulting in the merger, conservatorship, or liquidation of the credit union.”

The table below provides an example of a fixed asset listing and depreciation schedule.

 

Furniture, Fixtures, & Equipment	Estimated Cost	Life of Asset	Monthly Depreciation
Computer Hardware	$48,000	48 months	$1,000
Computer Software	$6,000	40 months	$150
Audio Response System	$4,800	96 months	$50
5 Desks and 5 Chairs	$2,650	48 months	$55
Copy Machine	$1,200	24 months	$50
Total	$62,650	N/A	$1,305

 

Note: To determine the life of an asset, consult a Certified Public Accountant for the generally accepted accounting guidelines.

Last updated on March 30, 2026