Workpapers and Resources

NCUA Regulations

• Part 703, Investment and Deposit Activities

• Part 704, Corporate Credit Unions

• § 701.19, Benefits for employees of Federal credit unions
• § 750.4, Permissible golden parachute payments

NCUA Letters to Credit Unions

• NCUA Letter to Credit Unions 13-CU-05, Guidance: Investing in Securities without Reliance on Credit Ratings

• 07-CU-13, Evaluating Third Party Relationships

• 02-FCU-09, Risk-Focused Examination Program

• Supervisory Letter 13-03, Investing in Securities without Reliance on Nationally Recognized Statistical Rating Organizations (NRSRO) Ratings

NCUA General Counsel Opinion Letters

• Re: Benefits for Employees of Credit Union Service Organizations (CUSOs). (OL 08-018, issued April 4, 2008)
• Re: Guidelines to Investing to Fund Employee Benefits. (OL 2007-0332, issued September 4, 2007)
• Re: Split Dollar Life Insurance and Nonpreferential Loans. OL 2006-0924, issued January 19, 2007)
• Re: Funding Potential Employee Benefit Plan Obligations Under §701.19. (OL 2006-0817, issued December 15, 2006)
• Re: Permissibility of Investment in Mutual Fund for a 457(f) Plan. OL 2006-0406, issued April 26, 2006)
• Re: Split Dollar Life Insurance. (OL 2005-0117, issued January 13, 2005)
• Re: Cost Recovery For FCUs (FCUs) Funding Employee Benefit Obligation with Life Insurance. (OL 2004-0453, issued November 24, 2004)
• Re: Funding Employee Benefit Obligations with Life Insurance. (OL 2003-0512, issued February 27, 2004)

FASB Guidance

• ASC Subtopic 325-30, Investments-Other – Investments in Insurance Contracts addresses the accounting for credit union-owned life insurance.
• Formerly FASB Technical Bulletin No. 85-4, Accounting for Purchases of Life Insurance and Emerging Issues Task Force (EITF) Issue No. 06-5, Accounting for Purchases of Life Insurance– Determining the Amount That Could Be Realized in Accordance with FASB Technical Bulletin No. 85-4
• ASC Topic 710, General Compensation
• ASC Topic 712, Nonretirement Postemployment Benefits (such as layoff benefits)
• ASC Topic 715, Retirement Benefits

FASB has been the designated organization in the private sector for establishing standards of financial accounting that govern the preparation of financial reports by nongovernmental organizations since 1973. Those standards are officially recognized as authoritative by the SEC and the AICPA. The FASB Accounting Standards Codification^® is the source of authoritative GAAP recognized by the FASB to be applied to nongovernmental entities. For more information, see the FASB website for ASC subscription information.

Additional Resources

• Fidelity Bond Coverage
• OCC Bulletin 2004-56, Interagency Statement on the Purchase and Risk Management of Life Insurance (December 7, 2004)
• FDIC Trust Examination Module, Section 5, Compliance/Account Administration, Employee Benefits Accounts
• IRS Split Dollar Life Insurance Audit Technique Guide (03-2005)
• 29 U.S.C., Chapter 18, Employee Retirement Income Security Program (ERISA)

Last updated September 25, 2017