Skip to main content
U.S. flag
An official website of the United States government
Dot gov
The .gov means it’s official. 
Federal government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on a federal government site.
Https
The site is secure. 
The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.
Financial Institution Letter

Annual Audit and Reporting Requirements

Final Amendments to Part 363
Summary: The FDIC has amended Part 363 of its regulations, which sets forth annual independent audit and reporting requirements for insured institutions with $500 million or more in total assets. The FDIC Board of Directors adopted these amendments in light of changes in the industry; certain sound audit, reporting, and audit committee practices incorporated in the Sarbanes-Oxley Act of 2002; and the FDIC’s experience in administering Part 363. The amendments also provide clearer and more complete guidance for compliance with Part 363.


 

Highlights: 
 

  • Annual Reporting Requirements – As amended, Part 363 requires disclosure of the internal control framework and identified material weaknesses, provides relief from reporting for certain merged institutions, provides relief from reporting on internal control for acquired businesses, requires management’s assessment of compliance with laws and regulations to disclose any noncompliance, and provides illustrative management reports.
  • Independent Public Accountants – As amended, Part 363 clarifies the independence standards applicable to accountants, requires certain communications to audit committees, and establishes a uniform retention requirement for audit working papers.
  • Filing and Notice Requirements – The amendments extend the annual report filing deadline for nonpublic institutions and include a late filing notification requirement.
  • Audit Committees – The amendments specify the audit committee’s duties regarding the independent public accountant, require audit committees to ensure that audit engagement letters do not contain unsafe and unsound limitation of liability provisions, and require boards of directors to develop and apply written criteria for evaluating audit committee members’ independence.
  • Scope – The amendments revise the criteria for institutions to comply with Part 363 at a holding company level.

 

Distribution: 
Selected FDIC-Insured Institutions 
 

Suggested Routing: 
Chief Executive Officer 
Chief Financial Officer 
Board of Directors 
Audit Committee 
 

Note: 
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2009/index.html .

To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .

Paper copies of FDIC financial institution letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).

 



 


Additional Related Topics:

  • Federal Deposit Insurance Act Section 36
  • Part 363 of the FDIC's Regulations
FIL-33-2009
Attachment(s)

Last Updated: June 23, 2009