not been operating under an administrative order; *

have not experienced major or potentially adverse changes in its balance sheet; *

have a positive return on average assets; *

have not implemented any new high-risk programs, including pilot programs; *

have a net worth ratio greater than 7% or, if applicable, meets its risk-based net worth requirement; *

have an adequate Asset Liability Management mechanism in place; *

have an adequate internal control system in place; and *

have a track record of maintaining accurate and current books and records. "Many credit unions will continue to receive an annual examination," the letter read, "particularly during the transition period. Credit unions that exhibit adverse economic trends or other risk factors, or where off-site monitoring systems indicate higher relative risk, will receive an appropriate level of supervision that may result in more frequent on-site contacts. In this way, NCUA can allocate resources to higher risk areas, be more responsive to the needs of individual credit unions, and manage resources more effectively." The trade-off for credit unions under the more flexible examination schedule is that all federal and federally insured credit unions will have to submit their 5300 Call Reports quarterly, under NCUA's current proposal. Presently, only credit unions with more than $50 million in assets have to file quarterly, while those under $50 million file every six months. NCUA is working with CUNA to develop a 5300EZ form for smaller credit unions, according to CUNA Associate General Counsel Mary Dunn. [email protected]