The Federal Financial Institutions Examination Council (FFIEC) recently released the attached guidance on testing for Year 2000 readiness. The guidance states testing is the most critical phase of the Year 2000 project and is expected to account for 50 to 60 percent of the time, cost, and personnel of Year 2000 preparations.
The FFIEC guidance outlines the basic Year 2000 testing process and is being issued to credit unions to provide an initial discussion of testing concepts. The NCUA is developing guidance on testing issues specific to credit unions that will be released soon as a Letter to Credit Unions.
You may note that the milestone dates listed in the FFIEC guidance on testing for Year 2000 readiness differ from those previously provided to credit unions by NCUA. Credit unions are expected to meet the milestone dates stated in Letter to Credit Unions NO. 98-CU-4 dated February 19, 1998.
If you have any questions about this issue, the interagency policy statement, or our examination approach, please contact your examiner, regional office, or state supervisory authority for state credit unions.
Norman E. D’Amours