Credit Union Service Organizations (CUSO)

CUOnline User Tips

Credit Union Service Organizations (CUSO)

The Credit Union Service Organization (CUSO) section of the credit union profile lists all CUSOs in which

the credit union uses and/or is associated with, regardless of whether the credit union owns the CUSO,

has a loan, investment, or a financial interest in the CUSO.

A CUSO is any entity in which a credit union has an ownership interest or to which a credit union has

extended a loan and that is engaged primarily in providing products or services to credit unions or credit

union members.

Adding a CUSO

Follow these steps to add CUSO information. Note: When adding a CUSO, the all information must be

complete and error-free for the CUSO to save. Any errors will appear in red at the top of the page.

1. Click on the ¡°CUSOs¡± tab.

2. Click ¡°Add CUSO¡± button.

3. Enter the CUSO information.

a. CUSO Name: Report the full/legal name of the CUSO.

b. EIN: Report the EIN (Employer Identification Number, A.K.A. Tax ID number) of the

CUSO assigned by the Internal Revenue Service (IRS). Report the nine digit number as

XXXXXXXXX. This number should not be someone¡¯s social security number or the same

tax id number used by the credit union. If you do not know what the CUSO¡¯s tax ID

number is, contact the CUSO.

c. City: Enter the name of the city where the CUSO headquarters is located.

d. State: Select the state where the CUSO headquarters is located from the dropdown

menu.

e. Is Wholly Owned: Select ¡°Yes¡± if the CUSO is wholly owned by your credit union. Select

¡°No¡± if it is not. If your credit union wholly-owns the CUSO or owns a ¡°controlling

financial interest¡± (assumed at ownership of 50% or more of the voting stock), the

CUSO¡¯s books and records should be consolidated with your credit union¡¯s books and

records (as if the two were one entity) for reporting on pages 1 ¨C 5 of the call report.

f. Investment in CUSO: Report the amount that represents the unimpaired value of the

credit union¡¯s CUSO investment as measured under generally accepted accounting

principles on an unconsolidated basis. If the credit union does not have an investment in

the CUSO, put a zero (0) in this field. The amount reported should be measured under

either:

i. the cost method (ownership of less than 20% voting common stock), or

ii. the equity method (ownership of 20% or more voting common stock).

g. Loan to CUSO: Report the amount of outstanding loan balance(s), available line(s) of

credit from the credit union, and/or guarantee(s) the credit union has made to or on

behalf of the CUSO. If the credit union does not have a loan to the CUSO, put a zero (0)

in this field.

h. Aggregate Cash Outlay: Report the aggregate cash outlay invested in the CUSO that is

not impaired by sustained losses unrecoverable in the reasonable near term. ¡°Aggregate

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i.

j.

cash outlay¡± means the aggregate amount of cash paid out by the credit union to

acquire an ownership interest in the CUSO. Credit unions required under GAAP to report

their investment in a CUSO on the equity basis are not penalized for exceeding their

¡°investment in and loans to¡± CUSO limit as a result of the CUSO operating profitably and

the value of the investment increasing. Unimpaired aggregate cash outlay is the means

by which the regulatory limitation is measured. If the credit union does not have an

aggregate cash outlay to the CUSO, put a zero (0) in this field.

Investment Accounting Type: Select from the dropdown list how the CUSO is currently

accounted for in the credit union¡¯s financial statements, if applicable: Consolidation,

Cost Method, or Equity Method.

i. If your credit union wholly-owns the CUSO or owns a ¡°controlling financial

interest¡± (assumed at ownership of 50% or more of the voting stock), the

CUSO¡¯s books and records should be consolidated with your credit union¡¯s

books and records (as if the two were one entity) for reporting on pages 1 ¨C 5 of

the call report.

ii. If your credit union has ¡°ability to exert significant influence¡± over operations of

the CUSO (assumed at ownership of 20% or more but less than 50% of the

voting stock of the CUSO), the credit union¡¯s investment in the CUSO should be

reflected in its books and records using the equity method of accounting.

iii. If your credit union owns less than 20% of the voting stock of the CUSO, the

credit union should account for its CUSO investment using the cost method of

accounting.

CUSO Service Type: Select the toggle boxes for the relevant service(s) offered by the

CUSO. Select all that apply.

i. Checking and currency services ¨C (1) Check cashing; (2) Coin and currency

services; and (3) Money order, savings bonds, travelers¡¯ checks, and purchase

and sale of U.S. Mint commemorative coins services.

ii. Clerical, professional and management services ¨C (1) Accounting services; (2)

Courier services; (3) Credit analysis; (4) Facsimile transmissions and copying

services; (5) Internal audits for credit unions; (6) Locator services; (7)

Management and personnel training and support; (8) Marketing services; (9)

Research services; and (10) Supervisory committee audits.

iii. Business loan origination

iv. Consumer mortgage loan origination

v. Electronic transaction services ¨C (1) Automated teller machine (ATM) services;

(2) Credit card and debit card services; (3) Data processing; (4) Electronic fund

transfer (EFT) services; (5) Electronic income tax filing; (6) Payment item

processing; (7) Wire transfer services; and (8) Cyber financial services.

vi. Financial counseling services ¨C (1) Developing and administering Individual

Retirement Accounts (IRA), Keogh, deferred compensation, and other personnel

benefit plans; (2) Estate planning; (3) Financial planning and counseling; (4)

Income tax preparation; (5) Investment counseling; and (6) Retirement

counseling.

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vii. Fixed asset services ¨C (1) Management, development, sale, or lease of fixed

assets; and (2) Sale, lease, or servicing of computer hardware or software.

viii. Insurance brokerage or agency ¨C (1) Agency for sale of insurance; (2) Provision

of vehicle warranty programs; and (3) Provision of group purchasing programs.

ix. Leasing ¨C (1) Personal property; and (2) Real estate leasing of excess CUSO

property.

x. Loan support services ¨C (1) Debt collection services; (2) Loan processing,

servicing, and sales; and (3) Sale of repossessed collateral.

xi. Record retention, security and disaster recovery services ¨C (1) Alarmmonitoring and other security services; (2) Disaster recovery services; (3)

Microfilm, microfiche, optical and electronic imaging, CD¨CROM data storage and

retrieval services; (4) Provision of forms and supplies; and (5) Record retention

and storage.

xii. Securities brokerage services

xiii. Shared credit union branch (service center) operations

xiv. Student loan origination

xv. Travel agency services

xvi. Trust and trust-related services ¨C (1) Acting as administrator for prepaid legal

service plans; (2) Acting as trustee, guardian, conservator, estate administrator,

or in any other fiduciary capacity; and (3) Trust services.

xvii. Real estate brokerage services

xviii. CUSO investments in non-CUSO service providers ¨C In connection with

providing a permissible service, a CUSO may invest in a non-CUSO service

provider. The amount of the CUSO¡¯s investment is limited to the amount

necessary to participate in the service provider, or a greater amount if necessary

to receive a reduced price for goods or services.

xix. Credit Card Loan Origination

xx. Payroll Processing Services

xxi. Other ¨C If not one of the above services is applicable, select ¡°Other¡± and provide

specifics of the services.

k. When done, Click ¡°Ok.¡±

Don¡¯t forget to click ¡°Save and Certify Profile¡± to permanently save your changes.

Editing/Deleting CUSO Information

Follow these steps to edit/delete CUSO information:

1. Click on the ¡°CUSO¡± tab.

2. Click on the CUSO to be edited.

3. Click ¡°Edit¡± or ¡°Delete¡± or ¡°Cancel.¡±

a. Edit - Enter the appropriate information and click ¡°OK.¡±

b. Delete ¨C The user will be prompted ¡°Are you sure you want to delete this record?¡± Click

OK, if the record should be deleted.

c. Cancel ¨C Click ¡°Cancel¡± if no changes are needed.

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Don¡¯t forget to click ¡°Save and Certify Profile¡± to permanently save your changes.

Save and Certify Profile

This command takes the user to the Profile Certification screen.

Credit unions must send their profile to NCUA after all changes and at least once per quarter. By

clicking ¡°OK¡± after changes are made on the edit screens of the profile, the user¡¯s profile changes are

not permanently saved in CU Online. Data is only saved locally. If the user navigates away from the

profile (i.e., to the Call Report), logs out, or closes their browser without sending their data to NCUA,

all changes will have to be re-entered.

By clicking the ¡°Save and Certify¡± button, all changes made to the profile will be certified for accuracy

and sent to NCUA and saved permanently in CU Online. Users may make all necessary changes to

different tabs of the profile and then send their data to NCUA at one time.

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