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• Annual Reporting Requirements – The proposal would require disclosure of the internal control framework and identified material weaknesses, provide relief from reporting for certain merged institutions, provide relief from reporting on internal control for acquired businesses, require management's assessment of compliance with laws and regulations to disclose any noncompliance, and provide illustrative management reports.
• Independent Public Accountants – The proposal would clarify the independence standards applicable to accountants, require certain communications to audit committees, and establish retention requirements for audit working papers.
• Filing and Notice Requirements – The proposal would extend the annual report filing deadline for non-public institutions and include a late filing notification requirement.
• Audit Committees – The proposal would 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 apply written criteria for evaluating audit committee members' independence.
• Scope – The proposal would revise the criteria for institutions to comply with Part 363 at a holding company level.

Distribution:
Selected �౦��Ϸ����-insured institutions

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

Note:
�౦��Ϸ���� financial institution letters (FILs) may be accessed from the �౦��Ϸ����'s Web site at www.fdic.gov/news/financial-institution-letters/2007/index.html .

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

Paper copies of �౦��Ϸ���� financial institution letters may be obtained through the �౦��Ϸ����'s Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).