BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C.  20551

DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS

CA 03-8

August 29, 2003

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:

RE: Implementation of an Application to Calculate Supervisory Mandates

A national application to calculate supervisory mandates is ready for implementation to provide the Evolve scheduling tool with the mandate dates for supervisory activities. Reserve Banks should phase out any local mandate process and transition to the use of the national mandates application by December 31, 2003.

      On October 1, 2002, the Subcommittee on Staff Development/Utilization and System Performance (SDU&SP) determined that the Federal Reserve System should adopt a centralized national application to calculate the required dates for various supervisory activities. The SDU&SP selected the Federal Reserve Bank of Cleveland's program to serve as the application for the System and to interface with Evolve. Using NIC, NED, and AMPS data, and business rules provided by C&CA, the national mandates application calculates the start dates for mandated examinations and monitoring events for institutions supervised by the Federal Reserve System and transmits these dates to Evolve.

      As the host site, the Federal Reserve Bank of Cleveland is responsible for ongoing maintenance and future enhancements to the program. The business rules for the application are governed by policies set by C&CA. Each Reserve Bank is responsible for initiating and completing the various processes as detailed in the design and user guide. Since the application relies on NIC/NED and AMPS data to calculate mandate dates, each Reserve Bank will continue to be responsible for ensuring that its NIC/NED and AMPS data are accurate and complete.

      Beginning January 1, 2004, each Reserve Bank will run the mandates application at least quarterly as follows:

      March 31 (to update information as of December 31)
      June 30 (to update information as of March 31)
      September 30 (to update information as of June 30)
      December 31 (to update information as of September 30)

      Training in the use of the national mandates application has already occurred for those Reserve Banks where Evolve has been implemented. Training will be scheduled in the near future for the remaining Reserve Banks and applicable Board staff.

      It is expected that the mandates application will be placed in production within the next few weeks, at which time the Reserve Banks will be notified. The design and user guide is being finalized, and will be distributed prior to the application going live. Any questions concerning the CA business rules in the application should be directed to Lisa Brown, C&CA, at 202-452-3946. Technical questions should be directed to Paul Hughes, Federal Reserve Bank of Cleveland, at 216-579-2414.

Sincerely,
(signed)

Dolores S. Smith
Director