Are you about to hit the FDICIA asset threshold?
The FDIC Improvement Act of 1991 (FDICIA) subjects financial institutions to strict requirements based on two asset size levels. If your institution is approaching $500 million or $1 billion in assets, you may rapidly find yourself in noncompliance with new requirements around auditor independence, financial statement reporting or internal controls.
Because many financial institutions suddenly realize they’re unprepared to meet FDICIA requirements, it’s critical to start the compliance process now while you’re still under the threshold. One merger or acquisition, or even organic growth, could push you over the threshold and set the clock ticking down.
Wipfli can help. Our team of FDICIA specialists guides your institution along each step of the compliance process. To help you prepare for FDICIA compliance, we:
- Educate management and business process owners on FDICIA requirements for the applicable asset threshold
- Inventory your key internal controls over financial reporting (ICFR)
- Evaluate your existing ICFR for design and operating effectiveness
- Provide a gap analysis where potential weaknesses exist
- Outline a plan for any remediation, as well as a plan for complying with FDICIA upon time of adoption
- Coordinate with your external auditor to ensure effective and efficient integration with the external audit process
Early awareness of FDICIA guidelines and requirements is key to a successful transition and compliance. Our approach is to work directly with your board, audit committee and executive team to develop an efficient and effective FDICIA plan. Contact us to get started.
Our team
Sonny MacArthur, CPA, CIA
Sonny MacArthur routinely works with both public and private companies primarily in the financial services arena. He has extensive accounting, auditing and financial reporting experience including public and private equity and debt offerings, mergers and acquisitions and SEC reporting. Sonny works in our risk advisory group, focusing chiefly on risk assessments, financial and operational internal audits, Sarbanes-Oxley 404 compliance and FDICIA compliance.
Carrie Connell, CPA
Carrie has over 15 years of experience in assisting clients with Sarbanes-Oxley Section 404 compliance for accelerated filers and smaller reporting companies, FDICIA compliance, and operational and financial internal audits. She helps both public and private financial institutions ready themselves for and comply with SOX/404 and FDICIA reporting requirements and provides ongoing consultative advice to clients to continuously improve their programs.
Sarah G. Lutzke, CIA
Sarah leads the internal audit service line for Wipfli. Still deeply involved with her clients, Sarah leads outsourced internal audit engagements and manages co-sourced arrangements, ensuring Wipfli’s risk management consulting assistance is tailored to the individual circumstances of each client. Sarah has the experience and ability to evaluate controls within a process and provide sensible recommendations to strengthen operating environments.
