ACCOUNTING MANUAL FOR FEDERAL CREDIT UNIONS TOPICAL INDEX ACCURATE AND CURRENT RECORDS ESSENTIAL 200-3 BASIC ACCOUNTING RECORDS 200-3 Double-Entry System 200-3 Types Of Accounts 200-4 PURPOSE OF RECORDS 200-3 ACCRUED INTEREST RECEIVABLE 300-99 ACCRUED INTEREST ON INVESTMENTS 300-102 Accrued Interest On Investments 300-103 Purchased Accrued Interest Receivable 300-102 ACCRUED INTEREST ON LOANS 300-99 Sample Computations 300-101 ACCOUNTING MANUAL FOR FEDERAL CREDIT 100-1 UNIONS ELIMINATION OF THE RECOMMENDED CREDIT UNION CHART OF ACCOUNTS 100-2 LOOSE-LEAF SYSTEM - PERIODIC REVISIONS 100-2 NEW REVISED EDITION 100-1 PURPOSE AND USE AS A PRESCRIBED SYSTEM 100-1 ACCOUNTING PRINCIPLES AND STANDARDS -- PURPOSE AND SCOPE 100-2 ACCOUNTING PROFESSION PRONOUNCEMENTS 200-7 HIERARCHY OF GAAP STANDARDS 200-8 HIERARCHY OF REGULATIONS 200-8 ACCRUED EXPENSES AND OTHER LIABILITIES 400-40 ACCOUNTS PAYABLE 400-40 Accounts Payable 400-40 Accounts Payable-Check Transmittal Service 400-43 Accounts Payable-Drafts Authorized 400-44 Accounts Payable-Installment Payment on US Bonds 400-44 Accounts Payable-Traveler s Checks and Money Orders Sold 400-41 Accounts Payable-Undistributed Payments 400-42 Accounts Payable-Undistributed Payroll Deductions or Allotments 400-43 Accounts Payable-U.S. Savings Bond Remittances 400-45 Federal Unemployment Compensation Tax Payable and State Unemployment Compensation Tax Payable 400-48 Notes Payable Commitment Fees 400-46
Other Taxes Payable 400-49 Social Security Taxes Payable 400-47 Taxes Payable 400-46 ACCRUED EXPENSES 400-50 Accrued Accounting Service Cost 400-50 Accrued Cost of Space Occupied 400-50 Accrued Dividends Payable 400-50 Accrued Employee Benefits 400-50 Accrued Salaries 400-50 Other Accrued Expenses 400-51 BORROWERS TAXES AND INSURANCE ESCROWS 400-51 Escrow Accounts 400-51 DEFERRED CREDITS 400-54 Deferred Credits-Insurance Premium Rebate 400-55 Deferred Credits-Insurance Premium Stabilization Reserve 400-57 Deferred Credits-Net Commitment Fees (Costs)- Lines of Credits to Members 400-59 Deferred Credits-Net Commitment Fees (Costs)- Loans to Members 400-60 Deferred Credits-Net Origination Fees (Costs)- Home Equity Lines of Credit 400-59 Deferred Credits-Net Origination Fees (Costs)- Lines of Credit to Members 400-58 Other Deferred Credits 400-58 Unamortized Discount on Sale of Assets 400-56 Unearned Interest on Loans 400-54 OTHER LIABILITIES 400-52 Liability Under Pension Cost 400-52 Other Liabilities 400-52 Subordinated CDCU Debt 400-52 Undisbursed Loan Proceeds 400-52 SUSPENSE ACCOUNTS 400-60 Unapplied Data Processing Exceptions 400-60 Unapplied Data Processing Exceptions (Disbursements) 400-61 Unapplied Data Processing Exceptions (Receipts) 400-60 ACCRUED INTEREST PAYABLE 400-8 Accrued Interest Payable (on Borrowed Funds) 400-39 Alternative Interest Refund Procedures 400-38 Dividends Payable 400-9 Interest Refunds Payable 400-37 BASIC CONCEPTS AND GENERAL PRINCIPLES 200-5 ACCOUNTING AND DIVIDEND PERIODS 200-7 ACCOUNTING BASIS 200-7 2
COMPLETE RECORDING OF INCOME AND 200-7 EXPENSES CONSERVATIVE ACCOUNTING 200-6 CONSISTENCY IN ACCOUNTING FROM PERIOD 200-6 TO PERIOD FISCAL YEAR 200-7 GOING CONCERN CONCEPT 200-5 INTERNAL CONTROL 200-6 MATERIALITY 200-6 MONETARY BASIS FOR ACCOUNTING 200-6 SEPARATE ENTERPRISE 200-5 TIMELY RECOGNITION IN ACCOUNTING 200-6 RECORDS BORROWED FUNDS 400-5 CERTIFICATES OF INDEBTEDNESS 400-6 FEDERAL FUNDS PAYABLE 400-8 Federal Funds Purchased 400-8 LETTERS OF CREDIT 400-8 MORTGAGES PAYABLE 400-7 Mortgage Notes Payable 400-7 NOTES PAYABLE 400-5 Notes Payable-Other 400-5 OBLIGATIONS UNDER CAPITAL LEASES 400-7 PROMISSORY NOTES 400-6 REVERSE-REPURCHASE AGREEEMENTS 400-8 BRIEF OUTLINE OF THE PRESCRIBED 200-4 ACCOUNTING SYSTEM ACCRUAL BASIS 200-4 MODIFIED CASH BASIS 200-4 THE BASIC CREDIT UNION ACCOUNTING SYSTEM DESCRIBED 200-4 Records Of Original Entry And Record Of Final Entry 200-5 CASH AND CASH EQUIVALENTS 300-3 CASH EQUIVALENTS 300-27 All Other Investments 300-28 Certificates Of Deposit 300-28 Commercial Paper 300-27 Federal Funds Sold 300-27 Shares/Deposits/Certificates In Commercial Banks, S&L s, Savings Banks 300-28 Shares/Deposits/Certificates In Corporate Credit Unions 300-28 Traveler s Checks/Money Orders 300-28 Treasury Bills 300-27 CASH ON DEPOSIT 300-3 3
Balances On Deposit 300-3 Deposits In Transit 300-3 Monetary Control Reserve Deposits 300-3 CASH ON HAND 300-3 Change Fund 300-3 Petty Cash 300-6 GENERAL CASH HANDLING AND ACCOUNTING PROCEDURES 300-7 Accounting For Cash Receipts 300-7 Accounting For Disbursements 300-8 Balancing Teller s Cash Receipts And Disbursements Using Online Computer Terminals 300-15 Balancing Out Teller s Funds 300-11 Bond Sale Transactions/Records 300-22 Cash Received From Sales Of U.S. Savings 300-23 Bonds Check Endorsements 300-13 Check Protectors 300-19 Check Signing Machines 300-18 Check Writing Machines 300-19 Compensation For Services 300-27 Coupon Book Plans For Loan Repayments 300-15 Depositing Cash 300-10 Disbursement of Cash By Check Or Bank Charges 300-11 Disbursements 300-24 Disbursing Share Withdrawals And Loans In 300-17 Cash Installment Payments Received Over The Counter 300-24 Liability Account Liability In Connection With Loan Drafts 300-20 Listed Check Register 300-16 Loan Drafts 300-19 Mail Receipts 300-14 Member s Check And Drafts Returned 300-9 Payment By Check 300-25 Payment By Share Credit 300-25 Payment In Cash 300-26 Payments Received 300-23 Posting To General Ledger 300-10 Procedures For Cash Disbursements/Check 300-16 Register Receipts And Disbursements Using Automatic Transfer Accounts And Now Accounts 300-15 Reconciling The Cash On Hand 300-13 Recording Payment Data 300-26 Records In Connection With Loan Draft 4
Procedures 300-20 Records Of Installment Payments 300-24 Responsibility For Funds On Hand To Meet Loan Draft Obligations 300-21 Sale And Redemption Of U.S. Savings Bonds 300-21 Savings Bond Redemption Transactions 300-25 Shipment Of Paid Bonds 300-26 Subsidiary Ledgers 300-25 Total Payment Vouchers 300-13 Voucher Check Register 300-16 COMMITMENTS AND CONTINGENT LIABILITIES 400-62 Accrued Loss Contingencies 400-62 EXTRAORDINARY GAINS AND LOSSES 600-11 FINANCIAL STATEMENTS 200-17 FULL AND FAIR DISCLOSURE REQUIRED 200-20 FULL AND FAIR DISCLOSURE DEFINED 200-20 OPTIONAL STATEMENTS 200-19 Statement Of Cash Flows 200-19 Statement Of Member s Equity (Including Other Comprehensive Income 200-19 PURPOSE 200-17 REQUIRED CERTIFICATION 200-20 REQUIRED STATEMENTS 200-17 Disclosures About Fair Values Of Financial Instruments 200-18 Notes To Financial Statements 200-18 Statement Of Financial Condition 200-18 Statement Of Income 200-18 STATEMENT OF FINANCIAL CONDITION 900-3 Figure 9-1 900-4 Figure 9-2 900-5 STATEMENT OF INCOME 900-6 Classifying Outstanding Loans 900-6 Miscellaneous Information 900-6 Other Loan Information 900-6 STATEMENT OF CHANGES IN MEMBERS EQUITY (EXCLUDING SHARES) 900-8 STATEMENT OF COMPREHENSIVE INCOME 900-8 Figure 9-4 900-9 Figure 9-4a 900-10 SUPPORTING SCHEDULES FOR FINANCIAL STATEMENTS 900-6 Figure 9-3 900-7 5
INSTRUCTIONS FOR PREPARING REQUIRED FINANCIAL STATEMENTS 900-11 NOTES TO THE FINANCIAL STATEMENTS 900-19 Illustration Of The Use Of Notes To The Financial Statements 900-20 Figure 9-5a 900-21 Figure 9-5b 900-22 Figure 9-5c 900-23 Figure 9-5d 900-24 Statement Of Cash Flows 900-19 GENERAL LEDGER, SUBSIDIARY LEDGERS, AND ACCOUNT RECONCILIATIONS 200-8 ACCOUNT RECONCILIATIONS 200-9 CHART OF ACCOUNTS 200-8 GENERAL LEDGER 200-9 SUBSIDIARY LEDGERS 200-9 GENERAL RULES FOR RECORDING EXPENSES 700-1 OPERATING EXPENSES (GL CONTROL ACCOUNT) 700-1 Approval Of Expenses 700-1 Expense Ledger 700-3 INTEREST EXPENSE 700-5 BORROWED FUNDS 700-6 Commitment Fees On Borrowed Money 700-7 Interest On Borrowed Money 700-6 Unexercised Commitment Fees 700-6 MEMBERS SHARES AND SAVINGS ACCOUNTS 700-5 Dividend Expenses 700-5 Interest On Deposits 700-6 INTEREST INCOME 600-1 INVESTMENTS 600-4 Interest On Securities Available For Sale 600-4 Interest On Securities Held To Maturity 600-5 Interest On Trading Securities 600-4 LOANS RECEIVABLE 600-1 Interest On Loans 600-1 Interest Refunds 600-2 OTHER INTEREST INCOME 600-5 Interest On Cash And Cash Equivalents 600-5 Interest On Deposits & Certificates Of Corporate Credit Unions 600-5 Interest On Deposits In Commercial Banks, S&Ls and Savings Banks 600-5 Income From CUSO 600-5 Income From Other Investments 600-5 6
INVESTMENTS 300-30 OTHER SECURITY CONSIDERATIONS 300-42 Definitions 300-43 Examples Of Transactions Involving Securities 300-44 Impairment Of Securities 300-43 Transfers Between Categories 300-42 OTHER INVESTMENT ACTIVITIES 300-46 Deposits In Commercial Banks, S&Ls, Savings Banks 300-46 Deposits In Corporate Credit Unions 300-47 PERMISSIBLE INVESTMENT ACTIVITIES AND TRANSACTIONS SUBJECT TO SPECIFIED 300-47 CONDITIONS Accounting For Mutual Funds 300-51 Accounting For Unit Investment Trusts 300-52 Collateralized Mortgage Obligations (CMOs) 300-49 Investment In The Central Liquidity Facility (CLF) 300-50 Mortgage Pass-Through Securities 300-47 Pair-Off Transaction 300-47 Put Options 300-52 Zero Coupon Securities 300-50 SECURITIES 300-30 Securities Available-For-Sale 300-32 Securities Held-To-Maturity 300-36 Trading Securities 300-31 OTHER INVESTMENT CONSIDERATIONS 300-54 Authorized Broker/Dealer 300-57 Internal Controls 300-57 Investment Trading Policies 300-54 Periodic Review Policy 300-57 Reporting Requirements 300-57 Responsibility 300-55 Safekeeping 300-57 Special Considerations 300-56 Surety Aspects 300-57 UNAUTHORIZED INVESTMENT TRANSACTIONS AND ACTIVITIES 300-53 Adjusted Trading 300-53 Stripped Mortgage-Backed Securities (IO s/po s) 300-54 Yield Maintenance Contract 300-54 Zero Coupon Securities 300-54 LOANS HELD FOR SALE 300-60 LOANS RECEIVABLE 300-60 ALLOWANCE FOR LOAN LOSSES 300-77 ALLL Questions And Answers 300-91-95 7
Policy 300-78 LOANS-COLLATERAL IN PROCESS OF LIQUIDATION 300-64 LOANS RECEVABLE BY TYPE 300-61 Agriculture Loans 300-61 Commercial Loans 300-61 Consumer Loans 300-61 Home Equity Loans 300-62 Other Member Loans 300-62 METHODS OF CALCULATING INTEREST 300-67 Actuarial Method 300-67 Assessment Of Late Charges 300-69 Capitalizing Delinquent Interest 300-71 Combination Restructuring 300-71 Interest Rates In Relation To Different Classification Of Loans 300-67 Legal Fees And Other Direct Costs Of Restructuring 300-72 Level Payment 300-67 Modification Of Terms 300-70 Principal Payment Plus Interest 300-67 Repayment Plans 300-68 Rule Of 78 300-67 Transfer Of Assets In Settlement Of The Debt 300-70 Troubled Debt Restructuring 300-69 United States Rule-Simple Interest 300-67 When A Loan Is Deferred 300-69 When A Loan Is Extended 300-69 When A Loan Is Refinanced 300-68 NET ORIGINATION FEES AND COSTS 300-72 Accounting Entries, Loans, And The Interest Method 300-75 Aggregation Of Similar Loans 300-74 Credit Card Fees 300-73 Commitment Fees 300-73 Demand Loans 300-73 Loan Origination Fees 300-72 Nonrefundable Loan Origination Fees And Costs 300-72 Purchase Of A Loan Or Group Of Loans 300-74 Revolving Lines Of Credit 300-74 PASSBOOKS 300-65 Entering Member Loans On The Records 300-65 Maintaining The Delinquency Control On The Individual Share And Loan Ledger 300-66 Maintaining The Note Record On The Individual Share And Loan Ledger 300-66 8
WHEN PAYMENTS ON LOANS ARE RECEIVED 300-66 365-Day Year Method 300-66 30-Day Month Method (360-Day Year) 300-66 Accrual Of Interest 300-67 Collection Of Interest 300-66 Grace Period 300-67 MEMBERS EQUITY 500-17 ACCUMULATED OTHER COMPREHENSIVE INCOME (UNREALIZED G/L ON AFS) 500-27 DONATED EQUITY 500-27 NET INCOME (LOSS) 500-28 REGULAR RESERVE 500-20 Calculation Effective Date 500-21 Earnings Transfers 500-22 Special Reserve 500-23 Statutory Net Worth Categories 500-21 UNINSURED SECONDARY CAPITAL 500-17 UNDIVIDED EARNINGS 500-23 Appropriated Undivided Earnings 500-25 Reserve For Loss Contingencies 500-25 Reserve For Nonconforming Investments 500-26 MEMBERS SHARES 500-2 DEFINITIONS 500-14 DEMAND DEPOSITS 500-3 Share Draft Accounts 500-3 PROCESSING BASIC SHARE TRANSACTIONS 500-14 When Payments On Shares Are Received 500-14 When Shares Are Withdrawn 500-15 MEMBERS SHARES (CONTINUED) SAVINGS DEPOSITS 500-4 Escrow Accounts 500-7 Money Market Shares 500-5 Public Unit Shares 500-8 Regular Share Accounts 500-4 Shares Of Nonmembers 500-9 Other Share Accounts 500-6 Unposted Payroll Deductions Shares 500-8 TIME DEPOSITS 500-10 Brokered Deposits 500-13 Club Accounts 500-12 Ira/Keogh Retirement Accounts 500-10 Share Certificates Of Deposit 500-11 NCUSIF DEPOSIT 300-117 INVESTMENT IN NCUA SHARE INSURANCE CAPITALIZATION FUND 300-117 9
NON-INTEREST EXPENSE 700-10 COMPENSATION AND BENEFITS 700-10 Compensation Expense 700-10 Employee Benefits Expense 700-10 OCCUPANCY 700-11 Office Occupancy Expenses 700-11 OTHER GENERAL AND ADMINISTRATIVE 700-11 Annual Meeting Expenses 700-16 Association Dues 700-16 Cash Over And Short 700-15 Charitable Contributions 700-16 Educational And Promotional Expenses 700-12 Federal Operating Fee 700-14 Loan Servicing Expenses 700-13 Member s Insurance 700-14 Miscellaneous Operating Expenses 700-16 Office Operations Expenses 700-11 Professional And Outside Services 700-13 Travel And Conference Expenses 700-12 Truth In Lending (TIL) Expense 700-16 NON-INTEREST INCOME 600-7 GAINS (LOSSES) ON INTEREST-EARNING ASSETS 600-7 Gains (Losses) On Investments 600-7 INSURANCE COMMISSIONS 600-10 LOAN SERVICING FEES 600-10 MEMBER SERVICE FEES 600-9 Interest On Insurance Premiums Receivable 600-9 Loan Origination Fees 600-9 Miscellaneous Fee Income 600-9 Other Fees And Charges 600-9 Reimbursement Fee 600-9 Unpresented Checks 600-9 OTHER 600-10 Gains (Losses) On Disposition/Impairment Of Assets 600-10 Income From Ncusif Investment Refund 600-10 TRADING SECURITIES PROFIT (LOSSES) 600-8 OTHER ASSETS 300-118 ACCOUNTS RECEIVABLE 300-118 Insurance Premiums Receivable 300-119 Other Accounts Receivable 300-122 Payroll Deductions Receivable 300-118 Receivables From Officials And Employees 300-118 TIL Bond Claim Receivable 300-121 TIS Bond Claim Receivable 300-122 U.S. Savings Bonds Redeemed Receivable 300-121 10
ACCRUED INCOME 300-129 Accrued Income on NCUSIF Deposit 300-129 Other Accrued Income 300-129 LOANS TO OTHER CREDIT UNIONS 300-128 INSURANCE PREMIUM STABILIZATION RESERVE 300-129 INVESTMENT IN AND LOANS TO CUSOS 300-127 OTHER ASSETS 300-130 PREPAID EXPENSES AND DEFERRED CHARGES 300-123 Deferred Charges-Commitment Fees Paid In Connection With The Acquisition Of Borrowed Funds 300-125 Deferred Pension Cost 300-126 Other Prepaid Expenses and Deferred Charges 300-127 Other Prepaid Insurance 300-124 Prepaid Rent 300-123 Prepaid Share Insurance 300-123 Unamortized Organization Costs 300-124 SERVICING ASSETS 300-118 OTHER NON-OPERATING INCOME (EXPENSES) 600-11 OTHER REAL ESTATE OWNED 300-104 ASSETS ACQUIRED IN LIQUIDATION OF LOANS 300-104 Allowance For Impairment Losses 300-105 OUR FCU NOTES TO FINANCIAL STATEMENTS, DECEMBER 31, 200X 900-25 PRINCIPLES AFFECTING EQUITY 200-13 APPROPRAITION FOR LOSS CONTINGENCIES 200-13 DIVIDENDS 200-13 DONATIONS 200-14 NET INCOME 200-13 SHARES AS EQUITY 200-14 UNDIVIDED EARNINGS 200-13 PRINCIPLES AFFECTING THE RECORDING OF 200-9 ASSETS UNDER THE ACCRUAL BASIS OF ACCOUNTING 200-11 Amortization Of Premium Or Discount On Securities Purchased 200-11 Income On Investments 200-11 Income On Loans 200-11 UNDER THE MODIFIED CASH BASIS OF 200-9 ACCOUNTING Assets General Basis For Recording 200-9 Assets Pledged 200-11 11
Cash Unrestricted Or Restricted 200-9 Depreciation 200-10 Fixed Assets 200-10 Investments 200-9 Loans 200-9 Prepaid Expenses And Deferred Charges 200-11 PRINCIPLES AFFECTING THE RECORDING OF LIABILITIES 200-11 UNDER THE ACCRUAL BASIS OF ACCOUNTING 200-12 Accrued Expenses 200-13 Accrued Interest Payable 200-13 UNDER THE MODIFIED CASH BASIS OF ACCOUNTING Accounts Payable 200-11 Accrued Dividends 200-12 Accrued Expenses 200-12 Accrued Interest Payable 200-11 Contingent Liabilities 200-12 Deferred Credits 200-12 Dividends Payable 200-11 Interest Refund Payable 200-12 Liabilities General Basis For Recording 200-11 Liabilities Secured By Liens 200-12 Notes Payable 200-11 PRINCIPLES AFFECTING THE RECORDING OF INCOME AND EXPENSES 200-15 UNDER THE ACCRUAL BASIS OF ACCOUNTING 200-16 Accrued Expenses 200-17 Accrued Interest On Loans Included In Valuation Allowance 200-17 Income On Investments 200-16 Income On Loans 200-16 UNDER THE MODIFIED BASIS OF ACCOUNTING 200-15 Amortization Of Deferred Charges 200-15 Basis For Recording Expenses 200-15 Basis For Recording Income 200-15 Cash Overage And Shortages 200-16 Donations 200-16 Equipment Rental Expense 200-15 General Rules For Recording Income And Expenses 200-15 Loan Losses 200-16 NCUA Insurance Guaranty 200-16 Other Gains And Losses 200-16 Pension Plan Costs 200-16 Tangible Fixed Asset Expenses 200-15 12
PROPERTY AND EQUIPMENT 300-105 BUILDING 300-106 Allowance For Depreciation Of Building 300-107 Depreciation 300-106 Expenses 300-107 Impairment Of Long-Lived Assets 300-108 Records 300-107 Sale Of Land And Building 300-107 FURNITURE AND EQUIPMENT 300-108 Allowance For Depreciation Of Furniture And Equipment 300-111 Depreciation/Amortization Periods 300-111 Furniture And Equipment Acquired By Trade 300-109 Gain Or Loss In The Year Of Sale Of An Asset 300-109 Sample Depreciation Methods 300-111 Comparison Of Three Methods 300-115 LAND 300-105 LEASEHOLD IMPROVEMENTS 300-116 Allowance For Amortization Of Leasehold Improvements 300-117 PROVISION FOR LOAN LOSSES 700-7 13