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  • 1. If I use Account Maintenance to update a Dividend Application and the corresponding general ledger number, will a journal entry be automatically posted for the principal balance (and any accrued dividends) of the member account?
    Preview
    Yes, the general ledger entry will post automatically in end-of-day processing. Account Maintenance can be used to change the dividend application for member accounts based on the product parameters. For example, a Student Checking may have an age maximum at which point the checking account may need to move the credit union's regular checking product offering. If the Dividend Application configuration have the same suffix range, there is no need to order new checks, change any ACH or Payroll  More...
  • 2. Our dividend rates are at an all-time low, and many of our members do not have significant balances in their accounts, therefore not earning any interest. Can you explain how simple interest is calculated?
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    At the heart of the matter is the calculation and rounding the system uses. As we state in our documentation, we calculate to 8 decimal positions and half round up in the fourth. We warrant this math and it has not changed since 2006. What that means is that the member must have accrued at least 5 ten thousanths of a penny before we will begin accumulating the amount. In the case of a member who has more than the minimum balance to earn a dividend but less than the amount to actually accumul  More...
  • 3. How can I flag an individual member share account so it does NOT earn dividends?
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    There is a field on the member account record called Dividend Post Code. This field is usually blank indicating that dividends will be earned normally as per the product configuration. However, in rare instances a credit union may wish to flag individual member accounts so they do not earn dividends. To accomplish this, input an 'X' in the Dividend Post Code field through Member Account maintenance and that account will not earn dividends permanently or until it is removed. Also, t  More...
  • 4. Where do I set up a member for Dividend Backup Withholding?
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    Use Tool #15 Update Membership Information. On the third (final) screen, check the Dividend withholding checkbox. (Refer to the link to online help below for a sample of this screen.) NOTE: The % of dividends that is withheld is controlled by a setting in CU Master Parameters. Self Processors can access this via MNOP09 #1. Online CUs please contact a CSR for assistance.
  • 5. How can I estimate my dividends payable for end of month?
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    Share Dividends can be calculated three different ways: Simple Daily, Compound Daily and Average Daily Balance. Simple Daily and Compound Daily accrue to your General Ledger and to your Member records each day. (In addition, Certificate Dividends are accrued each day)Therefore, there is no need to estimate. You have the exact number each day! Because Average Daily Balance dividends are based on the member's average balance for the entire dividend period, a daily accrual number is not calcu  More...
  • 6. Why is my member's certificate which was properly posting dividends quarterly now posting dividends daily?
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    If you find that your member's certificate begins to pay dividends on a daily basis and no longer for the configured time frame such as monthly or quarterly, you'll need to review the certificate to see if the maturity date is in the past and if the renewal code is manual redemption. Since the maturity date is in the past and there are no instructions on the certificate to roll it over, it will pay dividends daily in expectation that it is not being renewed and the member will be taking  More...
  • 7. Are there any CU*BASE data files that store the Patronage Dividend excluded accounts as well as the accounts that will earn the Patronage Dividend?
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    Yes. CU*BASE offers an great feature to calculate a membership ownership or patronage dividend that allows for an audit run to evaluate the total amount and accounts that may be excluded. At the time the patronage dividend audit or posting run is processed, there are two files created that reside in the QUERYXX library. The data file for the excluded accounts is PATRDIVEXC. For the accounts that will earn the patronage dividend, the file name is PATRDIVINC. The data in each file represents the l  More...
  • 8. How do I prevent certain types of accounts from being reported to the IRS if the dividends are not reportable, such as IRA savings?
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    There is a Report dividends to the IRS flag on the Dividend Application configuration for savings and checking products, and also in the CD Type configuration for certificates. If this is not checked, dividends paid on those accounts will not be reported. These flags must be verified every fall prior to year-end processing, as instructed in the Year-End Processing Guide, so that IRS forms and tax reporting is done correctly at year-end.
  • 9. Does CU*BASE support certificate product codes which automatically default the term, rate, dividend frequency, penalty type, minimum deposit, and dividend payout method on new certificates?
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    Yes. See the related links below for more details on this configuration.
  • 10. Do you have an explanation for members concerning the APYE calculation on their statement?
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    Truth-In-Savings requires certain disclosures on periodic statements. One of the disclosures required on dividend-bearing accounts is the “annual percentage yield earned (APYE)”. The APYE is an annualized rate that reflects the relationship between the amount of dividends actually paid to the member’s account during the period and the average daily balance in the account for that period. *Note - this calculation uses the member’s average daily balance for the period,   More...
  • 11. Can I have CU*Answers delete suspended Dividend Application configuration codes if there are no active members accounts using those codes?
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    Suspended Dividend Application Configuration Codes (found in Tool #777 Savings/Checking Products Configuration ) cannot be deleted if there either active member accounts (found in data files MEMBER1 MEMBER2, or MEMBER4) or member accounts closed in the current year (found in data files ACHIST1, ACHIST2 or ACHIST4). The dividend application codes are used for their description of the share/draft product on member statements for closed accounts for the current year. They can be deleted once the an  More...
  • 12. What is the difference between Annual Percentage Yield (APY)and the Annual Percentage Yield Earned (APYE)?
    Preview
    The APY is a mathmatical calculation that takes the annualized Nominal Rate for a savings product, adjusts for compounding frequencies, on an assumed balance of $1000 for a 12 month term. It also assumes no withdrawals are made during the 12 month term. The Truth-In-Savings Regulation mandated the APY disclosure to aid consumers when considering savings options and comparing rates. The APY calculated value levels the playing field, so to speak. The APYE calculation is required also by the T  More...
  • 13. What are all the possible messages that will appear during the closed account/membership process?
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    At the Membership Level we first check to ensure that there are no OTB relationships (Could be an OTB Card or OTB Account). One the following messages may appear (the following are all hard stops, meaning the account cannot be closed until these are taken care of): Membership attached to CRDT type OTB account Membership attached to LOAN type OTB account Membership attached to SAVE type OTB account We will also check to ensure that no batch/online cards are attached to the membership. One of the   More...
  • 14. If our tax forms are uploaded to It's Me 247, how will members who are not enrolled in eStatements receive their tax documents?
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    Regardless of whether a member is enrolled in eStatements, the member will receive a paper copy of their tax documents in the mail, provided they earned enough dividends (or paid enough interest) through the tax year to qualify for a tax form. The presentation of tax documents in the My Documents section of It's Me 247 is an additional convenience that makes the forms readily available online, often earlier than they are provided by via mail. If you are not currently offering this feat  More...
  • 15. What columns/fields, files/tables, and programs are included in the File Maintenance Inquiry "Critical Monitoring?"
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    When you use the filter buttons on the File Maintenance Inquiry dashboard (Tool #159: Audit File Maintenance Inquiry (CUFMNT)), indicators note which programs, fields/columns, and files/tables AuditLink has flagged as “critical” for auditing teams to monitor on a daily basis. You can quickly sort by that indicator and select only those items for a quick scan of maintenance that directly affects member accounts. Below is a listing of these critical items. Columns/Fields Field Why   More...
  • 16. Where does CU*BASE get the account descriptions that members see in online banking and on their statement?
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    CU*BASE does have several different places where product descriptions can be configured, each used for different purposes. It's common for the descriptions to be entered the same into each configuration, but there are reasons why they are sometimes slightly different. For example, if you use the same range of account suffixes across several of your checking account products, your account suffix description might be something general like Checking whereas the description entered into the   More...
  • 17. What ownership/investment options does CU*Answers offer?
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    CU*Answers offers the opportunity for CU*BASE processed credit unions to become an owner of the CUSO. Each credit union owner owns 200 shares of Class A ownership stock and has one vote. As a result of becoming a Class A stock owner, credit union owners are are paid a Guaranteed Annual Dividend, and share in any Patronage Dividends, as optionally declared annually by the CU*Answers Board of Directors. CU*Answers may also periodically extend opportunities for investing in Debenture Offerings. Th  More...
  • 18. Under what rare circumstances will Tiered Services member points exceed possible points?
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    In online banking, members see both their Tiered Services points (member points) and possible points. As a general rule member points do not exceed possible points. Member points can exceed their possible points if the member has several accounts that qualify in categories that count each individual account instead of limiting points to one per loan category or dividend application. For example the categories of “general savings accounts” or “all other loans accounts”  More...
  • 19. Where does property tax or PMI information get entered into CU*BASE?
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    This data comes from the TAX file. This file is created automatically at year-end and populated with things like dividends and interest paid, and other details to be reported to the IRS and printed on tax forms. When it comes to Property Tax and PMI, things get a little complicated. Over the years the IRS has shifted back and forth as to (a) whether we are obligated to report this data to the IRS, and (b) whether it can simply be reported to members via the 1098 form, regardless of whether it  More...
  • 20. How does 7-day processing affect accruals?
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    Whenever end-of-day (EOD) processing is run, the system accrues share dividends and loan interest from the last day of accrual on each account. With the change to 7-day processing, you will now see general ledger entries and accrual increases on the member account every day. Where Sunday's accruals used to be added to Monday's update (a total for 2 days of interest), now you will separate reports and GL entries for Sunday and Monday individually.
  • 21. What is CU*TALK?
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    CU*TALK is the licensed and registered ARU (Audio Response Utility) software product written and owned by CU*Answers. CU*TALK is a convenient audio response service, that allows you to use a touch-tone phone to review account balances, verify whether certain checks have cleared, transfer funds between accounts, make loan payments, check current interest rates, and obtain annual dividend and interest information. CU*TALK allows you to take care of credit union business at times that work best for  More...
  • 22. Why did the APYE disclosure not appear on our first statement run with CU*Answers?
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    The APYE calculation depends on the date of the last statement run (both monthly and quarterly). Because you are a new client, that data is not present. The results of the APYE calculation are then extremely skewed. We feel is it prudent not to display the disclosure statement with invalid information. You are still in compliance for this one statement run given the circumstance of changing to a new data processor. APY mailing TIS Truth-In-Savings dividends
  • 23. Do Marketing Club Share/CD rate benefits add to the YTD Dividend amount?
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    Yes, the share and certificate club rate benefits do add to Dividends Paid YTD, therefore are reporting in the IRS totals. However, the loan interest rebate amounts do not affect the loan interest paid YTD amount, therefore not reflected in IRS totals. bonus rebate
  • 24. What dividends does CU*Answers offer to owners?
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    CU*Answers offers the opportunity for CU*BASE processed credit unions to become an owner of the CUSO. Each credit union owner owns 200 shares of Class A ownership stock and has one equal vote. As a result of becoming a Class A Stockowner, credit union owner's are are paid a Guaranteed Annual Dividend, and share in any Patronage Dividends, as optionally declared annually by the CU*Answers Board of Directors. CU*Answers may also offer periodic Debenture Investment opportunities to Class A   More...
  • 25. Are Marketing Club rate benefits paid to loans included in the YTD Interest paid amount?
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    No, loan rate benefits paid to members do not update the YTD Interest Paid amount, therefore are not reported to the IRS. However, Share/CD rate benefits do affect the YTD Dividend paid amount and therefore are reported to the IRS. bonus rebate
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