Volume 27, Number 10                                            May 30, 2007

HEADLINE NEWS

Project Zip Code Plays Important Role in Credit Union Advocacy
     The Credit Union National Association (CUNA) and the Delaware Credit Union League have teamed up to offer a free program called Project Zip Code (PZC). The software program will help you better serve your members in many ways.
     By participating in PZC, credit unions of all shapes and sizes will enjoy another projectzipcodemarketing tool to continue their high level of service to members. PZC allows credit unions to match their membership to federal and state districts so the credit union can determine how many members live in specific geographic areas. The credit union can use this valuable information for internal marketing purposes like examining the feasibility of shared branching or determining the best locations for branch expansion and ATM services, based on the geographic concentration of membership.
     Not planning any shared branching, ATM expansion, or other marketing initiatives in the near future? No problem. PZC enables CUs, the League and CUNA to show state and federal elected officials exactly how many credit union members reside in their respective legislative district.
     This program is particularly helpful, since boundaries of postal zip codes and legislative districts often do not coincide.
     Your information is safe and secure with Project Zip Code, because PZC does not transmit member information. No personal data or individual member information leaves your computer. The counts, or number of credit union members matched, are uploaded to a secure section of CUNA’s website. All of your credit union member data remains confidential and secure on the computer where PZC is run. Project Zip Code is compliant to the privacy laws created in Gramm Leach Bliley.
     We need your numbers today! If you have any questions, please contact Alice Smith at the League office.

Plan Now for the Fall
     If you’re thinking about a strategic planning session for your credit union for the fall, we have a great facilitator for you. The Delaware League’s Strategic Planning Service facilitator, Jim Merrill, VP of business development, New Jersey Credit Union League, has been rated “fantastic” by credit unions that have used him.
     Fran Lally, chairman of New Castle County Delaware Employees Federal Credit Union, stated, “Jim did a fantastic job facilitating our planning session. He was able to analyze our credit union based on a peer group analysis, but then customize our needs based on our particular style and knowledge of the membership. I would definitely recommend him to other credit unions.”
     Susan Rodriguez, manager of Baker Federal Credit Union, Phillipsburg, NJ, agreed. “Jim Merrill facilitated our last two planning sessions. He did a fantastic job. We got more out of those sessions than we did from our last 20 sessions.”
     For more information on the Delaware League’s Strategic Planning Service, go to http://www.dcul.org/creditunions/cu_strategic_planning.htm or contact Jane Bailey at the League office.

Delaware League Offers BSA Compliance Reviews
     The Delaware League is offering Bank Secrecy Act (BSA) reviews through an arrangement with the Pennsylvania Credit Union Association’s Audit Services. The review assesses internal controls and procedures that maintain on-going compliance in accordance with the financial recordkeeping and reporting requirements of the Bank Secrecy Act, 31 C.F.R. Part 103. Also included is an independent testing of the Bank Secrecy Act, Office of Foreign Assets Control (OFAC), and member identification procedures. NCUA examiners look for this review. Contact Jane Bailey at jane@dcul.org for more information.

NCUA NOTES

NCUA Plan to Reincorporate Bylaws in Regs
     Federal credit union bylaws would be reincorporated into the National Credit Union Administration's (NCUA's) regulations under a plan proposed by the agency at its May board meeting. The agency also proposed a streamlined process for adopting bylaw amendments that previously have been approved by the NCUA for another federal credit union, and the addition of a bylaw on director succession.
     The NCUA proposal to bring bylaws back under its formal rules is intended to clarify that the agency has some teeth in bylaw disputes that threaten members' "fundamental rights," but is not meant to involve the regulators in most bylaw disagreements. Federal CU bylaws were removed from regulations in the early 1980s as part of a push for general deregulation and that policy "worked fairly well" over the ensuing years, according to agency staff.
     However, in recent years there have been some contentious situations that have forced members into state courts in attempts to force their credit union to abide by its bylaws. One such members' suit was filed last year against Michigan's DFCU Financial for failing to call a special meeting of members and for other allegations related to the credit union's ultimately failed attempt to convert to a mutual savings bank.
     The NCUA board also issued for comment a proposal that would add a statement to FCU bylaws that it is the responsibility of a credit union's Supervisory Committee to assume the responsibilities of the board of directors temporarily if, for any reason, an entire board of directors is simultaneously removed or unable to serve. The new provisions would not automatically become part of any federal credit union's existing bylaws, according to the agency, and in the event a credit union does not adopt the new bylaw, the NCUA would continue to follow guidance expressed in prior legal opinions.
     The NCUA will accept comments on its proposed changes to bylaw rules for 60 days after they are published in the Federal Register.

NCUA Announces Delay of Revised SAR Form
     NCUA has sent Regulatory Alert 07-RA-03 to all federally insured credit unions regarding the delay of the revised Suspicious Activity Report Form (SAR-DI), which was scheduled to be effective on June 30, 2007.
     FinCEN will establish new effective and mandatory compliance dates for this form. This delay does not affect the Bank Secrecy Act (BSA) filing requirements for suspicious activity reporting, and credit unions should continue using the current SAR form. 
     FinCEN’s press release and the Federal Register notice announcing this delay are found at http://www.fincen.gov/sar_revised_form_implementation.pdf.   

Small FCU Accounting Guidance for Grants
     NCUA has published Accounting Bulletin 07-2 to revise the Accounting Manual for Federal Credit Unions to address basic accounting for NCUA grants received by small credit unions. The Accounting Manual provides regulatory accounting policies (“RAP”) for credit unions with less than $10 million in total assets. 
     NCUA receives numerous inquiries from small credit unions regarding the proper way to account for grants and contributions. Many small credit unions do not have the resources to seek the advice of independent accountants to properly account for grants.
     NCUA’s Accounting Bulletin provides consistent regulatory guidance regarding the proper way small credit unions should account for grants and contributions. The bulletin includes steps to determine RAP accounting for grants.
     The accounting bulletin was effective upon issuance. It notes that financial statements for the quarters ending after its issuance should be adjusted prior to closing to eliminate all Donated Equity amounts (Miscellaneous Equity) on the Call Report.
     For a copy of Accounting Bulletin 07-2, go to http://www.ncua.gov/news/express/xfiles/ACCTBUL%2007-2.pdf.  

CU SYSTEM NEWS

Personal Finance Booklets Revised
     Credit union members can learn about the changes to a number of retirement investment options - including traditional and Roth IRAs and 401(k)s - with the help of two newly revised educational booklets from CUNA.
booklet    The updates to Your Retirement Guidelines and Goals reflect contribution limit changes and other adjustments to the aforementioned retirement options.This booklet also contains revised information about Social Security benefits and payments, and a new section explaining the Treasury and Federal Reserve's Go Direct Program for seniors.
     Your Investment Choices also includes the updated information regarding IRAs and 401(k)s and goes on to mention uses for Roth IRAs beyond retirement, such as for educational or first-time home buying purposes. The U.S. savings bonds section was modified to reflect changes to the program, and new charts and resources were added.
     The following booklets are part of the Fundamentals of Personal Finance series, sold to credit unions in bulk, which educate members on seven common financial topics:
* Your Insurance Options (25146) – Details common coverage plans for auto, health, long-term care, disability, life, homeowners, renters, and liability insurance and a number of factors to consider for each.
* Your Investment Choices (25147) – Outlines the basics of investing and investment options such as stocks, bonds, mutual funds, and cash.
* Your College Savings Answers (25148) – Discusses a variety of ways students, parents, and grandparents can fund the rising cost of college using different savings plans and accounts, investment options, loans, grants, and other aids.
* Your Retirement Guidelines and Goals (25149) – A guide to planning for retirement through various stages of your life that includes investment strategies, economic considerations, and a portfolio of funding options, such as Social Security, employer-provided and personal plans, and post-retirement employment income. 
* Your Budget Blueprint (25150) – A practical guide to financial planning that defines a variety of savings plans, using credit, indebtedness, evaluating experts, and financing options for major purchases.
* Your Path to Home Ownership (25151) – A step-by-step planner for prospective home buyers that begins by determining if ownership is a feasible option. Next, it provides tips for finding the right house, working with an agent, and making an offer, along with an explanation of the mortgage process, associated costs, and other considerations.
* Your Vehicle Buying Road Map (26825) –Details every phase of a vehicle purchase, from conducting research, buying new versus used, trade-ins versus private selling, and how to save the most money in financing a purchase.
     For more information on these offerings or to buy online, go to http://buy.cuna.org, and enter the stock number in the search box.  To order through CUNA Member Service, call (800) 356-8010, press 3, and refer to the stock number listed by the product. 

Mica One of Top Lobbyists
     Dan Mica, president/CEO of the Credit Union National Association (CUNA), has landed on the top for the third consecutive year – again named to The Hill newspaper's roster of Washington's top lobbyists. The Hill, a Washington-based, semi-daily newspaper that covers Congress, lobbying and the Capitol Hill community, circulates broadly among congressional offices and lobbying organizations. According to The Hill, the top lobbyist list is developed by the newspaper, based on conversations with members of Congress, key aides and other lobbyists. There are more than 25,000 registered lobbyists in Washington.

Second Presidential Coin Released
     The second coin in the Presidential $1 Coin Program, featuring John Adams, has been released by the U.S. Mint. The Mint launched the program in February with the release of the George Washington $1 Coin. The program, modeled after the 50 State Quarters Program, honors former U.S. presidents in the order in which they served. Also to be released in 2007 are Thomas Jefferson (mid-August) and James Madison (mid-November) coins. Each year through at least 2016, four presidential $1 coins will be released.
     Credit unions are encouraged to consider selling these coins to your members through the MPI Coin Program. For more information, call Alice Smith.

DELAWARE NOTES

Our condolences to the family and friends of Jean Sowell, a long-time employee of SOUTHERN DELAWARE POSTAL EFCU, who passed away on May 28 after a long illness.

Sharee Coleman, 2006 Credit Union Professional, wrote the following note after receiving her award at the League’s annual meeting, “I just wanted to thank everyone at the Delaware Credit Union League for selecting me as the Credit Union Professional for 2006. As you could tell by the look on my face, I was stunned, but extremely honored to receive such wonderful recognition from people that I truly respect and admire. I feel very fortunate to be involved in the credit union movement thru my job at Del-One and thru the Marketing Council sessions. I look forward to continuing the journey, and I’m very excited about all the opportunities that credit unions have on the horizon.”

George Fitzgerald, a member of DPL-FCU and the League Governmental Affairs Committee, continues to provide answers to consumer questions in The News Journal’s “Business Monday.” In response to a question regarding companies that offer to consolidate debt, George gave CUs a promotional plug by stating, “Credit unions (members) enjoy lower banking fees and favorable interest and loan rates. Also many CUs take the financial education of their member-owners very seriously.”

DEL-ONE, in conjunction with Document Security Inc. and Clear Channel Radio, sponsored its second annual Operation Delaware Shred campaign throughout the month of April. This year’s events were extremely well attended; over 700 vehicles lined up to participate in events held at the Dover Mall and at Del-One branches in New Castle and Milford. Operation Delaware Shred was an effort to combat identity theft by encouraging Delaware residents to shred their sensitive and confidential documents for free.
     Del-One will host a grand opening ceremony at their new corporate office on Wednesday, June 6. Festivities will be held between 10 a.m. and 2 p.m. at 270 Beiser Boulevard in Dover.

EDUCATIONAL OPPORTUNITIES

June QuickBites Teleconferences
One-hour sessions run from 11 a.m.-noon:
• 6/05  Payday Lending
• 6/12  Advance Branding
• 6/19  Why  Members Sue CUs and Win
Two-hour sessions run from 11 a.m.-1 p.m.:
• 6/14  Make Better Loan Decisions
     The fee for the one-hour session is $99; the two-hour session is $169. Deadline to register: one week prior to the session. Call Bernadette Hines to enroll.

Everything You Wanted to Know About NCUA But Were Afraid to Ask – Tuesday, June 5, from 9 a.m.-noon at the League office. Topics: how to prepare for the exam; the exam process; and the exit interview/joint conference. Fee: $50. Space is still available.

Bank Secrecy Act Training – Thursday, June 14, from 10 a.m.-noon. Fulfill your CU’s annual Bank Secrecy Act compliance training requirement by registering your staff. Instructor: John Kilduff. Fee: $70. Call Bernadette for seating availability.

CUNA Mutual Insurance Review Workshop – Monday, June 18, from 5:30-8:30 p.m. The discussion of a credit union’s insurance coverage and needs will be led by Heidi Hodgson and Tom McLane, sales representatives of CUNA Mutual, so this session is designed only for their clients. Each credit union attendee will receive a coverage review for his/her own CU, so we must identify those CUs who will attend by June 4.

Supervisory Committee & Internal Audit Conference – June 25-27 in Atlantic City, NJ. Don’t miss this opportunity to attend CUNA’s national training program in our area. Fee: $895. Individual day sessions: $375. Contact Bernadette Hines for a brochure, or register online at training.pcua.coop.

Mid-Atlantic Corporate FCU
Charity Golf Tournament & Annual Meeting – June 21-22, Gettysburg, PA

TOGETHER is published on the 15th and 30th of each month by the Delaware Credit Union League, 4 Quigley Boulevard, New Castle, DE19720. Information to be published should be sent or phoned into the League no later than the Monday of the week preceding the publication date. Telephone: (302) 322-9341 or (800) 292-7875. This newsletter can also be found on the League website: www.dcul.org. Hard copies of the newsletter will be mailed to each credit union CEO/manager for distribution to those without computer access. Readers can receive a reminder when the newest edition is posted to the Web by emailing susan@dcul.org. Editor: Alice Smith (alice@dcul.org).