LSCU 2009 Annual Report by LSCU MarComm

President’s Message The foundation of the League of Southeastern Credit Unions is built upon the established roots of the Alabama and Florida Credit Union Leagues. It was by these two organizations that the LSCU “seed” was planted and brought to fruition with a vote from both league’s membership. The year 2009 was a year of consolidation and transition for both leagues. In this report, we bring to you the actions and results of coming together as the League of Southeastern Credit Unions. After months of planning and consolidation meetings, the LSCU debuted legally and structurally in January 2010. I would like to thank the board for their leadership and vision in making the LSCU a success. I am proud of the hard work and commitment League staff has shown to enhance our service to member credit unions. The consolidation not only streamlines our operations, but most importantly it puts more emphasis on credit unions. We are proud to represent the more than 300 credit unions in both states and I believe they are beginning to see the renewed commitment the LSCU has shown to its members. The LSCU concentrates its advocacy efforts to credit unions through Governmental Affairs, Education, Communications, and Cooperative Initiatives. It’s through these four branches that the LSCU lobbies, communicates, trains and listens to credit unions. The LSCU has taken the strength of the two combined leagues to offer our member credit unions services that are second to none. Our website, www.lscu.coop, is already one of the best in the country. LEVERAGE, the new identity of our combined Alabama and Florida Service Corporations, continues to offer services and products that enhance credit union business, save them money, and provide members the innovation they’ve come to expect from their credit union. All of this would not have been possible without the support of our members. Thank you for your support in making this past year a productive one and the LSCU a best-in-class organization.

The consolidation not only streamlines our operations, but most importantly it puts more emphasis on credit unions.

Patrick La Pine President and CEO

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Chairman’s Message Looking back at the events of 2009, I am proud of the accomplishments we made to bring our members a best-in-class organization on which they can rely. As Because our foundation you can see, a lot has been done to make two great leagues into one. This time last year we were in the process of finalizing consolidation efforts and is one that is strong and picking our new president and CEO. How did this happen so quickly? It was from a established, the theme great vision by the leadership of the Alabama and Florida leagues and much hard of this report, “strong work from staff. When Patrick La Pine began as President and CEO in August, the vision began roots for future growth,” to take hold. We pulled together the best parts of both leagues to adopt a governance manual to continue appropriately describes the move forward. League departments have been restructured to allow staff to best serve our members. Our LSCU the path we are on. committees have been reorganized and are already functioning at a high level. Our chapters are active and running full steam. The infrastructure of the league is almost in place. Integrating communications, IT, and back office operations is not an easy task however both the Alabama and Florida offices are on the same network and phone system. Because our foundation is one that is strong and established, the theme of this report, “strong roots for future growth,” appropriately describes the path we are on. The LSCU will continue to grow as one entity and we are already seeing the fruits of our efforts. I look forward to what the future holds for the LSCU and its members.

Rich Helber Chairman League of Southeastern Credit Unions

League of Southeastern Credit Unions Board of Directors *Denotes directors that also served on the LSCU Service Group Board

Rich Helber - Chair*

Joe McGee - Chair elect*

Tropical Financial CU - FL

Legacy Community FCU - AL

Alvin J. Cowans , CCUE

John Hirabayashi

Brent Lister

McCoy FCU - FL

Community First CU of Florida - FL

First Florida CU - FL

R. Larry Scott Campus USA CU - FL

L E A G U E O F S OU THEASTERN CREDIT UNIONS

Deborah Seymour, CCUE

Bob Steensma

Darden EFCU - FL

Five Star CU - AL

Mary Ott Wood, CCUE Vice Chair

Tina Williams - Treasurer

Steve Swofford - Secretary

Ola Anise

Florida West Coast CU - FL

Mobile Educators CU - AL

Alabama CU - AL

Azalea City CU - AL

Pat Mason*

Greg Olmsted

Sun Credit Union - FL

North Alabama Educators CU - AL

Ron Summerall*

Linda Walker

Alabama Teachers CU - AL

Riverdale CU - AL

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In 2008, the Alabama Credit Union League and the Florida Credit Union League boards of directors entered into discussions to assess the opportunities for potential collaboration between the two organizations going forward. With the credit union market shrinking and expenses increasing, the discussions focused on the creation of an even stronger array of services for the members delivered by the highest quality staff in the most efficient manner possible. The collaboration would build on the strengths of the Alabama Credit Union League and theÂ Florida Credit Union League with the vision to create a new standard of excellence and efficiency for league services. From those initial discussions, the seed for a new association was planted, and in 2009, came to fruition in a strong, effective, efficient association for the credit unions of Alabama and Florida, the League of Southeastern Credit Unions (LSCU). With a strong foundation and established roots in both states, the LSCU is growing into a strong, healthy organization with the best interests of credit unions in mind.

L E A G U E O F S OU THEASTERN CREDIT UNIONS

To date, the LSCU represents 332 credit unions in Alabama and Florida with a combined total of $57 billion in assets and more than 6.3 million members.

United in Growth Early in 2009, memberships of both the Florida and Alabama Leagues approved combining their resources, knowledge, and expertise to offer credit union members the strongest voice possible. The LSCU will use its expanded resources to lobby state and federal issues to ensure credit union members’ voices are heard in Montgomery, Tallahassee, and Washington, D.C. Secondly, as the LSCU, opportunities for additional and expanded league-generated programs and services will be created, enabling member credit unions to be more competitive in the long term across the markets they serve. The LSCU represents 332 credit unions in Alabama and Florida with a combined total of $55 billion in assets and more than 6.3 million members.

Alabama

Florida

“Growing” Forth in 2009 In August of 2009, Patrick La Pine was chosen as the new LSCU President and CEO. With the members’ best interests in mind, La Pine began the steps needed to bring the LSCU to fruition. “Everything we do as a league will begin and end with keeping in mind what’s in the best interest of our member credit union,” said La Pine. “’Advocacy and Information’ (legislative, regulatory/ compliance, communications and education) will be the cornerstone of our new association.” With that, the reorganization of departments began to support LSCU’s main initiatives: advocacy and information. The “branches” of the LSCU would be Advocacy, Education, Cooperative Initiatives, and Communications. Town hall meetings were set up across both states to provide opportunities for credit unions to spend time with La Pine. The meetings allowed credit union management and staff to meet La Pine and for him to share LSCU’s vision going forward. The first LSCU Hike the Hill in Washington took place in December 2009. Nearly 40 CEOs, credit union managers, board members, and LSCU staff from Alabama and Florida attended. The group went to the Hill to discuss pertinent issues related to credit unions during visits with legislators. Issues discussed included: a fix to Section 106 of the CARD Act; overdraft protection; interchange fees; maintaining NCUA’s independence as a credit union regulator; preventing CRA from being applied to credit unions; and member business lending. The LSCU debuted two reports for member credit unions. The first, the Quarterly State Profile, provides insight into quarterly call report data

and covers many topics, such as population growth, unemployment rate, OFHEO Home Price Index, delinquent loans to loans, net charge offs, return on assets, new and used car loan growth, real estate loan growth, membership growth, and savings growth. The second, the Custom Performance Report, is a customized report for each credit union that provides financial information from each credit union’s peer group at state, regional, and national levels. The combining of education departments offered enhanced learning opportunities at lower costs and convenient venues. Examples include: the LSCU Development Conference offering high quality and informative educational sessions by Bill Hampel, Mark Sievewright, Tim Harrington, and David Reed, to name a few; and a plethora of webinars that provided “in-house” training at an affordable price. Florida credit unions now have access to a new process, faster service, and lower prices for STAR, MERIT, and VAP/VLP modules. The changes in the certificate program process for Florida credit unions include members receiving study materials, exams, program certificates, pins in a more timely manner, and lower purchase prices. The LSCU board of directors approved funding for the Small Asset-Sized (SAS) Credit Union Initiative Account Program, available to all affiliated credit unions with $35 million in assets or less. An account was created in each SAS credit union’s name in the amount of $400. Each credit union is able to use the money in its account toward the purchase of any LSCU or LSCU Service Corporation product and/or service.

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The LSCU secured a grant from the National Credit Union Foundation and its REAL Solutions program to bring a fun, non-threatening savings program (Save to Win) to credit unions in 2010. The program will appeal to current credit union members as well as the under- or un-banked segments of the public, showing the short- and longterm benefits of goal-setting and saving. Development of the new LSCU website began in 2009. The website will provide information in a timely manner as well as more resources for members. Members will have access to the latest news and information pertinent to Alabama and Florida credit unions, may register for and access educational conferences and webinars online, and can find relevant, strategic product solutions to help credit unions meet the needs of their members. Streaming video and news feeds will keep the website fresh and continual updates will ensure timely delivery of the information credit unions care about. Members also have access on the homepage to League InfoSight, a valuable compliance newsletter with an accompanying website populated with model policies. Through the Florida Credit Union Foundation, the Florida chapters handed out 39 scholarships of $1,500 to high school seniors across the state to use toward costs of attending a Florida college or university. Twelve scholarships were awarded to credit unions under $35 million in assets to attend educational conferences, seminars, and workshops. Four scholarships were awarded to small credit unions to attend CUNA’s Governmental Affairs Conference, and four small credit unions received grants to attend the Florida Credit Union League’s annual convention. Funding was also provided to the BizKid$ Project, a PBS program on youth financial education; the Florida Financial Literacy Council to help educate Floridians about important financial issues; and the Consortium of Florida Education Foundations, which provides support for public education through competitive classroom grants. The Alabama Credit Union League Educational Foundation funded 13 scholarships for credit union employees and support for five train-the-trainer sessions for the National Endowment of Financial Education’s High School Financial Planning Program. Sixty individuals completed the train-the-trainer program, including teachers, representatives from three community-based organizations, and representatives from 14 credit unions. Through the Alabama CU Charitable Foundation, disaster relief funds were sent for flooding in Ohio. The Alabama and Florida Service Corporations combined to bring enhanced/ expanded products and services by leveraging resources, relationships, and industry knowledge. Credit unions will now have access to a greater array of proven products and services that maximize financial performance. As a result of the consolidation efforts, the LSCU has saved almost $900,000 allowing the LSCU to give back to its members through enhanced products and services.

L E A G U E O F S OU THEASTERN CREDIT UNIONS

Branching Out for Members The League of Southeastern Credit Unions has four “branches” of focus: Advocacy, Education, Communications, and Cooperative Initiatives. Each branch is dedicated to reaching out to members with the support, information, and resources to help its members thrive in any economic environment. Advocacy

The LSCU Governmental Affairs (GA) Department develops indepth relationships with lawmakers and their staff members to serve as the voice of credit unions with the knowledge elected officials need when making decisions on issues of importance to credit unions. The GA department added staff to show a renewed commitment toward advocacy. A grassroots and political coordinator was hired for the first time in Alabama to make the LSCU PACs a major priority. The combined experience and collective knowledge of the LSCU’s expanded GA Department allows the LSCU to advocate a proactive legislative and regulatory issues agenda empowering Alabama and Florida credit unions to expand and grow their services to meet the needs of their members. A greater concentration of resources allows the LSCU to strengthen its localized grassroots advocacy efforts, providing more opportunities for credit union officials and legislators to build relationships and for credit union staff to be more engaged in the political process helping to affect change for credit unions. A new Governmental Affairs Committee has been formed to help shape a proactive legislative agenda and work to identify credit union friendly candidates during election years. Also part of the advocacy branch is regulatory advocacy. The LSCU is very much aware of the ever-increasing regulatory burden on credit unions. With regulatory and compliance staff in both LSCU offices, the LSCU is working to lessen the burden through regular contact and interaction with state and federal regulators before rules are written to decrease the operational impact on credit unions. Credit unions also receive timely communications from the GA Department making them aware of the challenges facing credit unions in the legislative and regulatory arenas and educating them on the impact of legislative and regulatory proposals and alerts to help credit unions use the LSCU’s grassroots strength to shape the public policies that affect our industry.

Education

The LSCU’s expanded educational offerings address the training needs of credit unions through relevant content which will give credit union staff and volunteers the tools they need to perform in their positions more efficiently. Expanded offerings address training needs of credit unions and are provided through a variety of venues including the Annual Convention & Exposition (AC&E), Conferences & Workshops, Distance Learning, and Leadership Councils. Relevant content, high quality instructors and favorable pricing are part of the educational offerings. ■■ The AC&E is a premier networking event that will showcase and celebrate the credit union movement with high quality industry speakers leading relevant education sessions, competitive pricing for participants and exhibitors, and a world class member experience ■■ Conferences and workshops held in Alabama and Florida enable credit union professionals to learn about the latest topics and trends from industry experts in a face-to-face environment ■■ Distance Learning through audio conferences, webinars, self-study courses, and online programming provide a flexible learning experience for credit union professionals who want the same quality training, but from remote locations ■■ Leadership Councils are designed to provide credit union professionals the opportunity to network with their peers, discuss timely issues concerning their professions, share best practices, and hear from industry experts. There are six councils: Chief Financial Officers, HR / Training & Development, Lending, Marketing & Business Development, Operations Sales & Service, and Technology Cooperative Initiatives

Cooperative Initiatives (CI) is a new department focusing on membership relations, small asset size (SAS) credit union development and support, chapter support, foundations, financial education, and international partnerships. Through a renewed emphasis on membership relations, the LSCU is working to build a bridge between the League and its member credit unions. The CI staff, as well as the entire LSCU staff, is focused on identifying and providing the services and tools that will enable credit unions to excel. Each affiliated credit union is assigned a liaison from the League staff. With an emphasis on chapters and SAS credit unions, member relations consultants provide an “in-person” representative from the LSCU who works to find and connect members with products/services that fit individual credit union needs.

CI is working with credit unions to empower the residents of Alabama and Florida to build wealth. LSCU partners with a variety of community-based organizations such as the Florida and Alabama Jump$tart Coalition to deliver financial education programs throughout both states. CI will continue to work with credit unions on their efforts to implement the National Endowment for Financial Education’s (NEFE) High School Financial Planning Program in schools across both states as well as the continuation of charitable contributions and scholarships to assist communities and credit unions. CI also acts as the liaison between the partnered credit unions and the World Council of Credit Unions (WOCCU). The LSCU looks forward to expanding the partnership in 2010 and facilitating relationships between Florida credit unions and Costa Rican credit unions. Communications

The LSCU wants to be the first source for information for its members. To do that, LSCU has streamlined the dissemination of relevant information to members through a variety of venues, using the latest technology to keep information interesting and current. The LSCU website (www.lscu.coop) provides the most up-to-date information that is easy to find. A quick login to League Infosight is on the homepage as well as the Education calendar which links directly to an event’s online registration. The LSCU’s premier quarterly publication is Signal. This flagship publication features articles, CEO profiles, news, advocacy and regulatory information, and issues important to Alabama and Florida credit unions. The LSCU’s weekly electronic newsletter, eSignal, provides top headlines and LSCU departmental news with stories that provide perspective on legislative activities at the state and national level, as well as the latest news in compliance and the industry as a whole. In one email, credit unions can feel connected to what’s going on locally and nationally within the movement. The LSCU utilizes the latest in social networking and technology to disperse information through Twitter, podcasts, and multimedia videos. The LSCU expects to add more communications channels throughout the year. Proactive media relations are a priority for the LSCU. Such efforts to engage local, state, and national media outlets will assist in highlighting the good works of credit unions by placing them in the spotlight as consumer-friendly financial institutions working to assist members and communities. The LSCU is currently working with task forces in Alabama and Florida to develop a statewide cooperative image campaign for credit unions for 2011.

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League Service Corporation Much like the Alabama and Florida Credit Union Leagues, the ACUL and the FCUL Service Corporations experienced a year of transition in 2009. While operating as separate entities, each continued to support league operations and credit unions by offering a myriad of solutions that created long-term value, combined purchasing power resulting in a reduced cost structure, and streamlined business processes that aided credit unions in focusing on more strategic initiatives.

Pinned POS, and ATM transactions for credit unions in both states. Because of the growth in the amount of transactions and the ability to do so, credit unions participating in the program were able to grow their transactions and create interchange income for their credit union. Debit continues to be in great demand by members and is still a significant source of revenue to the credit union. With the Falcon Real Time state-of-the art fraud prevention tool, our debit program is a safe and cost effective way to give members access to their accounts.

2009 Highlights The collaborative buying power of Office Depot’s National Credit Union Purchasing Program saved credit unions up to 70 percent on office supplies, break room supplies, promotional products, furniture, computers, and more in 2009. Credit unions on the Ventelligence program are in compliance with third party vendor management regulations and have improved their purchasing strategies resulting in an average of 25.5 percent savings on commodity purchases in 2009. Ventelligence is an automated system that provides a web-accessed contract database, third party vendor risk assessments, due diligence templates, and leading-edge procurement strategies. The partner relationship with Sprint Mobile Services placed more than $200,000 in non-interest income to credit unions on the program in 2009. In 2009, Alabama began promoting its relationship with CO-OP Financial Services and the CO-OP Surcharge Free ATM Network. The CO-OP Surcharge Free Network is an affordable solution to provide surcharge free access to members. Thirteen credit unions joined the CO-OP ATM Network increasing the number of Alabama CO-OP ATMs by 20 percent. More than 75 credit unions saved money through competitively priced audit and compliance services delivered by the certified audit and compliance field experts of the League’s Credit Union Audit & Compliance Experts (CU-ACE). Credit unions were able to choose from a comprehensive menu of financial and compliance audits to assist them in meeting regulatory requirements and staying compliant with services. The Alabama and Florida debit programs processed more than 60,873,000 signature,

L E A G U E O F S OU THEASTERN CREDIT UNIONS

“Growing” Forth as LEVERAGE In 2010, the Alabama and Florida Credit Union League Service Corporations came together as LEVERAGE, the LSCU Service Corporation. With the combined strengths of these two organizations, LEVERAGE will focus on providing access to best-in-class solutions, helping credit unions leverage buying power, and utilizing industry knowledge to increase credit union performance, reduce operating costs, and promote future growth. LEVERAGE offers a variety of strategic services and products to credit unions. Credit unions can look forward to innovative and proven business solutions from LEVERAGE’s partners which in return will maximize their financial performance. The auto lending programs will help credit unions simplify the auto lending process while providing them with volume discounts, multiple channels to choose from for the liquidation of vehicles, and much more. Best-in-class lending and credit card solutions will give credit unions a competitive advantage in the payment system and lending marketplace. LEVERAGE also will offer many other high quality products and services that benefit credit unions through its audit and compliance solution, CU-ACE, its third-party vendor management program, Ventelligence, and its executive recruiting program, HRx. Other operations solutions include business continuity solutions, charge back services, printing, security, and more.

League of Southeastern Credit Unions Financials

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Alabama Credit Union League, Incorporated and Subsidiary Consolidated Financial Statements and Supplementary Information December 31, 2009 and 2008

Independent Auditorsâ&#x20AC;&#x2122; Report

Consolidated Financial Statements Statements of Financial Position

Statements of Activities

Statements of Cash Flows

Notes to Financial Statements

Supplementary Information

A L A B A M A C R E D I T U NION LEAGUE

Independent Auditors’ Report To the Board of Directors of League of Southeastern Credit Unions (Formerly Alabama Credit Union League, Incorporated and Subsidiary) We have audited the accompanying consolidated statements of financial position of Alabama Credit Union League, Incorporated and Subsidiary (the “League”), as of December 31, 2009 and 2008, and the related consolidated statements of activities and cash flows for the years then ended. These consolidated financial statements are the responsibility of the League’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Alabama Credit Union League, Incorporated and Subsidiary as of December 31, 2009 and 2008, and the changes in their net assets and cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Birmingham, Alabama March 16, 2010

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Consolidated Statements of Financial Position

YEARS ENDED December 31

Alabama Credit Union League, Incorporated and Subsidiary 2009

2008

$4,171,720

$5,299,825

Assets Current assets Cash and cash equivalents Certificates of deposit

1,018,944

473,305

586,371

Prepaid expenses

79,979

94,886

Deferred tax asset

19,820

213,073

2,073,073

20,773

163,622

5,977,794

8,237,597

Accounts receivable

Investments Income taxes receivable Total current assets Fixed assets, net Total assets

A L A B A M A C R E D I T U NION LEAGUE

158,478

194,556

$6,136,272

$8,432,153

Consolidated Statements of Financial Position

YEARS ENDED December 31

Alabama Credit Union League, Incorporated and Subsidiary 2009

2008

Liabilities and net assets Current liabilities Current portion of long-term debt

$48,062

1,352,251

1,784,155

Deferred dues income

657,665

367,508

Deferred income taxes

7,007

2,009,916

2,206,732

187,819

Total liabilities

2,009,916

2,394,551

Net assets, unrestricted

4,126,356

6,037,602

$6,136,272

$8,432,153

Accounts payable and accrued expenses

Total current liabilities Noncurrent liabilities Liability for pension benefits

Total liabilities and net assets

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Consolidated Statements of Activities

YEARS ENDED December 31

Alabama Credit Union League, Incorporated and Subsidiary 2009

2008

Unrestricted support and income Membership dues

$923,658

$956,200

Other income

4,306,710

3,792,749

(12,466)

3,700

5,217,902

4,752,649

(5,007,712)

(4,118,940)

(271,973)

Gain on sale of fixed assets Total unrestricted support and income Functional expenses Pension changes other than net periodic pension cost Impairment of investments

(1,860,000)

Increase (decrease) in net assets before provision for income taxes

(1,649,810)

361,736

Current

248,623

247,653

Deferred

12,813

2,298

261,436

249,951

(1,911,246)

111,785

6,037,602

5,925,817

$4,126,356

$6,037,602

Provision for income taxes

Total provision for income taxes Net increase (decrease) in net assets Net assets, beginning of year Net assets, end of year

A L A B A M A C R E D I T U NION LEAGUE

Consolidated Statements of Cash Flows

YEARS ENDED December 31

Alabama Credit Union League, Incorporated and Subsidiary 2009

2008

$(1,911,246)

$111,785

Depreciation expense

69,561

77,323

Deferred income taxes (benefit)

12,813

2,298

(Gain) loss on sale of fixed assets

12,466

(3,700)

1,860,000

113,066

75,865

14,907

10,695

Income taxes receivable

142,849

(142,995)

Due from related parties

3,056

Accounts payable and accrued expenses

(431,904)

(242,240)

Liability for pension benefits

(187,819)

(643,820)

(91,216)

Operating activities Increase (decrease) in net assets Adjustments to reconcile increase in net assets to net cash provided (used) by operating activities:

Impairment of investments Decrease (increase) in operating assets: Accounts receivable Prepaid expenses

Increase (decrease) in operating liabilities:

Income taxes payable Deferred dues income Net cash (used by) operating activities

290,157

367,508

(15,150)

(475,441)

(71,468)

(57,554)

Investing activities Purchase of fixed assets Purchase of certificates of deposit Purchase of investments Proceeds from sale of equipment

(1,018,944)

(20,000)

25,519

8,175

(1,064,893)

(69,379)

Principal payments on long-term debt

(48,062)

(17,091)

Net cash (used by) financing activities

(48,062)

(17,091)

(1,128,105)

(561,911)

Net cash (used by) investing activities Financing activities

Net (decrease) in cash Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

5,299,825

5,861,736

$4,171,720

$5,299,825

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Consolidated Statements of Cash Flows Continued

YEARS ENDED December 31

Alabama Credit Union League, Incorporated and Subsidiary 2009

2008

Supplemental disclosure of cash flow information: Interest paid Income taxes paid

A L A B A M A C R E D I T U NION LEAGUE

$925

$2,215

105,774

439,070

Note 1 – Summary of significant accounting policies The accompanying financial statements include Alabama Credit Union League, Incorporated and its wholly-owned subsidiary, ACUL Corporation (collectively referred to as the “League”). All intercompany accounts have been eliminated. ACUL Corporation owns 100% of ACUBS, Inc., and has consolidated its activities in the financial statements. As of December 31, 2009, ACUBS, Inc., has ceased operations and is inactive. The Alabama Credit Union League is a trade association for credit unions in the state of Alabama. For purposes of cash flows, the League considers all highly liquid debt instruments purchased with an initial maturity of three months or less to be cash equivalents. For income tax purposes, the League is exempt from both federal and state income taxes, except for taxes on interest earned on intercompany advances (see Note 5). ACUL Corporation is subject to tax on its profits, if any. The process of preparing financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses. Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements. Accordingly, upon settlement, actual results may differ from estimated amounts. In accordance with Financial Accounting Standards Board (FASB) ASC No. 958, “Presentation of Financial Statements of Non-Profit Entities”, the organization reports information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. All of the League’s net assets at December 31, 2009 and 2008, respectively, are unrestricted. The assets, liabilities, revenues and expenses are recognized on the accrual basis of accounting. Fixed assets are recorded at cost. Depreciation is provided over the estimated useful lives of the fixed assets using the straight-line and declining balance methods. Advertising costs are expensed as incurred. Advertising expense for the years ended December 31, 2009 and 2008 was $82,303 and $55,353, respectively.

Note 2 – CAPITAL ACCUMULATION PLAN The Capital Accumulation Plan (“CAP Plan”), a defined contribution plan covering substantially all full-time employees, requires eligible employees to contribute at least 5% of their salary with the option to contribute up to 15% of their salary. The League matches participant contributions up to 10% of eligible salaries. The League contributed $128,271 and $134,961 to the CAP Plan for 2009 and 2008, respectively.

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NOTE 3 – DEFINED BENEFIT PLAN Substantially all full-time employees of the League are participants in the Alabama Credit Union League Defined Benefit Plan (the “Plan”), a noncontributory defined benefit plan. In September 2006, the FASB issued ASC No. 715, “Employers’ Accounting for Defined Benefit Pension and Other Post Retirement Plans” (“SFAS No. 158”). FASB ASC No. 715 requires that employers recognize the funded status of their defined benefit pension and other postretirement plans on the consolidated balance sheet and record as a component of the Statements of Activities, net of tax, the gains or losses and prior service costs or credits that have been recognized as components of net periodic benefit cost. The League adopted the recognition and related disclosure provisions of SFAS No. 158 in December 31, 2007. The Plan’s expected long-term return on plan assets is determined by applying historical average investment returns from published indexes relating to the current allocation of assets in the portfolio. Pension funds are invested entirely in fixed investments to safeguard the benefits promised to employees. E f fect s o f A pply i n g A S C No. 7 1 5 o n the con sol id at ed fin a nc i al s tat e m ent s: 2009

The League’s management elected to terminate the Plan effective December 31, 2009. A termination payment was made equal to the actuarial determination of the benefit obligation at the time of termination. Accordingly, the League will have no further responsibility for future obligations. A summary of the Plan activity for 2009 is as follows:

Asset value as of January 1, 2009

$4,796,161

Contributions, including termination payment

1,069,840

Investment earnings

157,778

Plan withdrawals

(2,684,995)

Asset value as of December 31, 2009 (pending termination payments to all participants)

$3,338,784

The trustee of the Plan’s assets is expected to make termination payments to all Plan participants in early 2010. 2008 Amounts recognized in the statement of financial position: (measurement ending December 31, 2008) Noncurrent assets

Current (liabilities)

Noncurrent (liabilities) Total amount recognized

A L A B A M A C R E D I T U NION LEAGUE

(187,819)

NOTE 3 - DEFINED BENEFIT PLAN (CONTINUED)

Amounts recognized in the statement of activities: Net loss

Prior service cost (credit)

(216,858)

Transition obligation (asset) Total amount recognized

1,693,602 -

1,476,744

141,829

Components of net periodic benefit cost: (Measurement Period Ending December 31, 2008) Net periodic benefit cost, January 1, 2008 to December 31, 2008 Total recognized in change in net assets Total recognized in net periodic benefit cost and change in net assets

271,973 $

413,802

4,430,785

O bl i gat ion s an d f u n d s tatus : Change in benefit obligation: (Measurement Period Ending December 31, 2008) Benefit obligation at beginning of year, January 1, 2008 Service cost

72,849

Interest cost

265,847

Actuarial loss

258,790

Benefits paid

(44,291)

Projected benefit obligation at end of year, December 31, 2008

$4,983,980

Change in plan assets: Fair value of plan assets at beginning of year, January 1, 2008

Actual return of plan assets

3,599,146 183,684

Employer contributions

1,057,622

Plan participantâ&#x20AC;&#x2122;s contributions

Benefits paid

(44,291)

Fair value of plan assets at end of year, December 31, 2008

4,796,161

Funded status (plan assets less than benefit obligation)

(187,819)

2 0 0 9 A N N U A L R E P O RT

NOTE 3 - DEFINED BENEFIT PLAN (CONTINUED)

Accumulate d be ne f i t o b l i gat i o n s, assum pti ons and cash f lo w s: Information for plans with accumulated benefit obligations in excess of plan assets: Projected benefit obligation at end of year, December 31, 2008

4,983,980

Accumulated benefit obligation at end of year, December 31, 2008

4,786,593

Fair value of plan assets at end of year, December 31, 2008

4,796,161

The following assumptions were used to determine the Leagueâ&#x20AC;&#x2122;s benefit obligations under the plan on December 31, 2008:

January 1, 2008

December 31, 2008

Weighted average discount rate

6.00%

Expected long-term rate of return on plan assets

6.50%

Rate of compensation increase

4.00%

Note: Net future periodic benefit cost is calculated on assumptions in effect at the beginning of the fiscal year.

Asset allocat i o n o f pla n assets : Asset allocations by asset category as of December 31, 2008: Equity securities

Debt securities

100%

Total

100%

Note 4 â&#x20AC;&#x201C; Operating leases The League leases its office facilities under an operating lease expiring in 2013. Rent costs are allocated between the League and its subsidiary based on square foot usage. The League also leases certain transportation and office equipment under operating leases. The rent expense under these leases for 2009 and 2008 was $294,903 and $301,140, respectively. The minimum lease payments by year and in the aggregate for these leases with initial or remaining non-cancelable lease terms in excess of one year are as shown in the following table. Minimum future rental payments under the leases are: Amount Office Equipment

Facilities Leases

Vehicle Leases

Total

2010

Year ended

19,844

320,432

9,709

349,985

2011

19,620

326,894

346,514

2012

264

333,589

333,853

2013 Total minimum future rental payments

A L A B A M A C R E D I T U NION LEAGUE

340,203

39,728

1,321,118

9,709

1,370,555

Note 5 – Income taxes The League incurs income taxes on its income earned from interest on advances to related entities. ACUL Corporation is subject to income taxes (see Note 1). For the year ended December 31, 2009, the taxable income and income taxes incurred are as follows:

Increase (decrease) in net assets before provision for taxes

League

ACUL Corp.

ACUBS, Inc.

Total

(362,235)

(1,288,245)

(925)

(1,651,405)

Taxable income

673,517

Income taxes – current

248,623

Deferred income taxes

12,813

The principal reasons for the difference in the effective tax rate and the federal statutory rate for the year ended December 31, 2009 for ACUL Corporation are as follows:

Statutory federal income tax rate

Amount

% of Pre-tax Earnings

(438,003)

(34.0)

Effect on rate of: State income tax expense, net of federal tax benefit

(10,046)

(0.8)

Deferred tax valuation allowance

690,181

53.6

Other $

19,304

1.5

261,436

20.30

Realization of certain deferred tax assets is dependent upon generating sufficient taxable income prior to their expiration. A valuation allowance to reflect management’s estimate of the temporary deductible differences that may expire prior to their utilization has been recorded during 2009. ACUL Corporation has recorded impairment losses on the write-down of certain equity investments in the amount of $1,860,000 which may be recognized for income tax purposes at a later date, and be deductible against the Company’s future taxable income, if any. For the year ended December 31, 2008, the taxable income and income taxes incurred are as follows: League

ACUL Corp.

ACUBS, Inc

Total

Increase (decrease) in net assets before provision for taxes

(366,728)

729,136

(672)

361,736

Taxable income

746,433

Income taxes – current

247,653

Deferred income taxes

2,298

2 0 0 9 A N N U A L R E P O RT

Note 5 – INCOME TAXES (CONTINUED)

Deferred taxes are provided for accumulated temporary differences resulting from the different methods of accounting for financial reporting and income tax purposes. The Corporation’s temporary differences are due to depreciation methods used and accrued vacation expenses not currently deductible, as well as the impairment of investments. Effective January 1, 2009, the Company implemented the new accounting requirements associated with uncertainty in income taxes using the provisions of Financial Accounting Standards Board [FASB] ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of December 31, 2009, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.

Note 6 – Investments Effective January 1, 2008, the League adopted FASB ASC 820, Fair Value Measurements, for all financial instruments and non-financial instruments accounted for at a fair value on a recurring basis. FASB ASC 820 establishes new framework for measuring fair value and expands related disclosures. Broadly, the FASB ASC 820 framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability that would be received for an asset or paid to transfer a liability (the exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. FASB ASC 820 establishes a three-level valuation hierarchy based upon observable and non-observable inputs. For financial assets and liabilities, fair value is the price the entity would receive to sell an asset or pay to transfer a liability in an orderly transaction with a market participant at the measurement date. In the absence of active markets for the identical assets or liabilities, such measurements involve developing assumptions based on market observable data, and in the absence of such data, internal information that is consistent with what market participants would use in a hypothetical transaction that occurs at the measurement date. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. Preference is given to observable inputs. These two types of inputs create the following fair value hierarchy: Level 1 – Quoted prices for identical instruments in active markets. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. Level 3 – Significant inputs to the valuation model are unobservable.

A L A B A M A C R E D I T U NION LEAGUE

Note 6 – Investments (CONTINUED)

The value of equity securities in non-public companies is not readily determinable in most cases since Level 1 and Level 2 inputs are not available requiring the use of unobservable inputs. The management of the League has reviewed available information for each of the investments, including such data as recent financial reports, latest equity position purchases by other parties, anticipated future cash flows and other items. In addition, management personnel utilize their knowledge concerning the current activities of those companies. As a result of this evaluation process according to the scope of FASB ASC 820, and without a clear determination of market value, management has determined that the equity investments in these non-public companies should be carried at cost, less reductions to reflect approximate market values as necessary. The League has the following investments at December 31, 2009 and 2008: Ownership % CUNA Strategic Services, Inc. EPL, Inc. Credit Union Business Services, LLC CUBS Resources, LTD Member Development, LLC Infosight, Inc.

.88%

2009 $

18,073

2008 $

18,073

4.20%

1,500,000

12.00%

270,000

2.41%

30,000

.84%

40,000

100,000

13.04%

75,000

CU Cooperative Sys., Inc.

2.26%

20,000

CU House, LLC

1.36%

Total

60,000 $

213,073

60,000 $

2,073,073

Note 7 – Concentration of credit risk At December 31, 2009 and 2008, the carrying amount of the League’s deposits in three financial institutions was $5,190,664 and $5,299,825, respectively, and the financial institution balances were $6,066,861 and $5,384,950, respectively. Account balances in each institution are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration up to $250,000 for 2008 and 2009. At December 31, 2009 and 2008, the League’s uninsured cash balances totaled approximately $3,765,292 and $4,080,029, respectively.

2 0 0 9 A N N U A L R E P O RT

Note 8 – Related parties Man a ge m e n t co n t rac t s

ACUL Corporation’s management contract with EPL, Inc expired in 2008 and was not renewed. ACUL Corporation’s management contract with CU Service Centers, Inc., expires January 3, 2014. Management fee revenues included in administrative and marketing fees income are as follows: 2009 EPL, Inc.

CU Service Centers, Inc.

2008 $

138,313

Total

138,313

20,833 148,867

169,700

12,254

R ecei va b les an d payab les

The schedule below reflects the related party transactions included in the accounts receivable and payable at December 31, 2009 and 2008. Due (to) from

2009 $

12,544

2008

Accounts receivable

CU Service Centers, Inc.

Accounts receivable

EPL, Inc.

9,093

36,727

Accounts receivable

ACULAC

9,869

Accounts receivable

CU Charitable Foundation

3,191

CU Vote

(5,775)

Accounts payable

EPL, Inc.

(23,187)

Accounts payable

CU Service Centers, Inc.

(33)

Accounts payable

Other

CU Service Centers, Inc. paid a total of $264,462 and $320,461 during 2009 and 2008, respectively, to the League and ACUL Corporation for training, marketing, forms, administrative salaries, and other items. The League received rental income from EPL, Inc. for furniture rental and office space during 2009 and 2008 in the amount of $2,664 and $35,280, respectively. The League received interest on a note receivable from EPL, Inc. in 2008 in the amount of $5,702. The League received management fees from CUBS, LLC in 2009 and 2008 in the amounts of $3,000 and $742, respectively. The League received rental income from CUBS, LLC for furniture and office space rental during 2008 in the amounts of $7,692. The League received rental income from CUBS Resources, Ltd. for office space rental during 2008 in the amounts of $2,568. The League received rental income from CUBS Insurance, Inc. for office space rental during 2008 in the amounts of $15,384.

A L A B A M A C R E D I T U NION LEAGUE

Note 9 â&#x20AC;&#x201C; Fixed assets Fixed assets at December 31, 2009 and 2008 are comprised of the following: 2009 Leasehold improvements

Furniture and fixtures

1,216,801

Automobiles Accumulated depreciation Fixed assets â&#x20AC;&#x201C; net

129,286

2008

210,166

290,852

1,556,253

1,633,500

(1,397,775) $

129,286 1,213,362

158,478

(1,438,945) $

194,556

2 0 0 9 A N N U A L R E P O RT

NOTE 10 â&#x20AC;&#x201C; SUBSEQUENT EVENTS Alabama Credit Union League and Florida Credit Union League voted to merge into a single organization known as the League of Southeastern Credit Unions, with the merger being effective on January 1, 2010. Management of the Company evaluates subsequent events through the date the financial statements were issued.

A L A B A M A C R E D I T U NION LEAGUE

Alabama Credit Union League Supplementary Information

2 0 0 9 A N N U A L R E P O RT

Consolidated Schedules of Other Income

YEARS ENDED December 31

Alabama Credit Union League, Incorporated and Subsidiary 2009

2008

Financial and transaction services

$2,379,422

$1,854,209

Administrative and marketing fees

697,348

837,889

Auditing services

584,666

549,480

Meetings and conference fees

429,562

276,722

Financial marketing services

122,635

76,473

Other

48,049

32,499

Interest on investments

39,364

103,811

Management fee - CUBS, LLC

3,000

742

Rent

2,664

60,924

$4,306,710

$3,792,749

Total other income

A L A B A M A C R E D I T U NION LEAGUE

Consolidated Schedules of Functional Expenses

YEARS ENDED December 31

Alabama Credit Union League, Incorporated and Subsidiary

Salaries Employee benefits and payroll taxes

2009

2008

$1,786,827

$1,955,180

1,324,003

555,762

Rent

275,564

277,478

Travel and entertainment

266,244

292,116

Meetings and conferences

254,612

150,181

Bad debt expense

171,799

Director and committee expense

142,265

155,735

Recruiting and staff training

95,797

17,177

Legal and audit

91,494

96,278

Telephone

87,092

92,037

Advertising

82,303

55,353

Consultants

73,250

88,343

Depreciation

69,561

77,323

Insurance

43,447

39,099

WOCCU support

34,467

30,912

Stationary and supplies

31,883

32,706

Subscriptions and dues

30,209

36,704

Miscellaneous

26,216

21,988

Data processing

20,468

24,043

Repairs and maintenance

20,431

14,961

Website development

20,325

27,390

Equipment rental

19,340

23,662

Postage

16,377

16,083

Publications

10,459

12,312

Equipment maintenance

8,333

8,608

Taxes

4,946

15,294

2,215

$5,007,712

$4,118,940

Interest expense Total functional expenses

2 0 0 9 A N N U A L R E P O RT

Alabama Credit Union Charitable Foundation

A L A B A M A C R E D I T U NION LEAGUE

Statement of Financial Condition

December 31, 2009

Alabama CU Charitable Foundation, Inc.

Assets Corporate America CU Corp Funds Corporate America CU Funds Advantage

9,977.66 66,000.00

Corporate America CU-Shares

7.43

Due from League

0.00

Other Accounts Receivable Total Assets

0.00 75,985.09

Liabilities & Net Assets Liabilities: Due to League Contributions Due to CMN

0.00 1,000.00

Due to CUNA Foundation

0.00

Other Payables

0.00

Net Assets: Unrestricted 12/31/08 Current Increase (Decrease) Total Liabilities & Net Assets

69,976.36 5,008.73 75,985.09

2 0 0 9 A N N U A L R E P O RT

Statement of Activities

YEAR TO DATE

Alabama CU Charitable Foundation, Inc.

Revenues & Other Support Contributions Fund Raising Activities Dividends-Corporate America CU Total Revenues & Other Support

941.00 6,692.95 203.03 7,836.98

Expenses Contributions Fund Raising Activities

2,100.00 0.00

CPA

628.25

Other

100.00

Total Expenses

2,828.25

Change in Net Assets

5,008.73

A L A B A M A C R E D I T U NION LEAGUE

Alabama Credit Union Educational Foundation

2 0 0 9 A N N U A L R E P O RT

Statement of Financial Condition

December 31, 2009

Alabama Credit Union League Educational Foundation

Assets Corporate America CU-Corporate Funds

18,469.18

Corporate America CU-Funds Advantage

85,000.00

Corporate America CU-Shares Mutual Savings CU-Shares Mutual Savings CU-Money Market Mutual Savings CU- CDs Accounts Receivable Total Assets

14.34 391.26 0.00 622,468.52 0.00 726,343.30

Liabilities & Net Assets Liabilities: Scholarship Obligations

0.00

Other Accounts Payable

0.00

Net Assets: Unrestricted

68,364.35

Permenently Restricted

657,978.95

Total Net Assets

726,343.30

Total Liabilities & Net Assets

726,343.30

A L A B A M A C R E D I T U NION LEAGUE

2009 Statement of Activities

YEAR TO DATE

Alabama CU Educational Foundation, Inc.

Revenues & Other Support Credit Union Contributions-Unrestricted

2,559.90

Credit Union Contributions-Restricted

20,789.10

NationalCU Foundation

38.77

Dividend-Mutual Savings CU

18,687.80

Dividend-Corporate America CU

318.53

Total Revenues & Other Support

42,394.10

Expenses Filene Reasearch Institute

0.00

NEFE / REAL Solutions

3,822.65

Scholarship

3,430.00

Other

34.86

CPA

1,000.00

Total Expenses

8,287.51

Change in Net Assets YTD

34,106.59

Net Assets December 31, 2008

692,236.71

Current Net Assets 2009

726,343.30

Revenues & Other Support Credit Union Contributions National CU Foundation Dividend-Mutual Savings CU

Unrestricted

Permanently Restricted

2,559.90

20,789.10

38.77

18,687.80

Dividend-Corporate America CU

318.53

Total Revenues & Other Support

21,605

20,789.10

Expenses Filene Reasearch Institute

3,822.65

Scholarship

3430

Other

34.86

CPA

1,000

NEFE / REAL Solutions

Total Expenses

8,287.51

Change in Net Assets YTD

13,317.49

20,789.1

Net Assets December 31, 2008

55,046.86

637,189.85

Current Net Assets 2009

68,364.35

657,978.95

2 0 0 9 A N N U A L R E P O RT

Florida Credit Union League, Inc. and Affiliates Consolidated Financial Statements and Supplementary Information December 31, 2009 and 2008

Independent Auditorsâ&#x20AC;&#x2122; Report

Consolidated Financial Statements Statements of Financial Position

Statements of Activities

Statements of Cash Flows

Notes to Financial Statements

Supplementary Information

F L O R I DA C R E D I T UN ION LEAGUE

Independent Auditorsâ&#x20AC;&#x2122; Report Board of Directors League of Southeastern Credit Unions and Affiliates Tallahassee, Florida

We have audited the accompanying combined statements of financial position of Florida Credit Union League, Inc. and Affiliates (the League) as of December 31, 2009 and 2008, and the related combined statements of activities, and cash flows for the years then ended. The combined financial statements are the responsibility of Florida Credit Union League, Inc. and Affiliatesâ&#x20AC;&#x2122; management. Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the combined financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall combined financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of Florida Credit Union League, Inc. and Affiliates as of December 31, 2009 and 2008, and the changes in their net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were made for the purpose of forming an opinion on the combined financial statements taken as a whole. The combining information in the accompanying supplementary information is presented for purposes of additional analysis of the combined financial statements rather than to present the financial position, changes in net assets, and cash flows of the individual organizations. Such information has been subjected to the auditing procedures applied in the audits of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the combined financial statements taken as a whole.

March 12, 2010

2 0 0 9 A N N U A L R E P O RT

Combined Statements of Financial Position

YEARS ENDED DECEMBER 31

Florida Credit Union League, Inc. and Affiliates 2009

2008

$6,523,747

$6,067,067

Donor restricted cash for temporarily restricted purposes

559,633

Cash held for others

184,138

825,318

Accounts receivable

698,258

942,520

10,978

12,619

Assets Current assets Cash and cash equivalents

Inventory Prepaid expenses

135,373

161,153

Total current assets

8,112,127

8,568,310

Property and equipment - net

1,949,630

2,025,064

Other assets Restricted cash for loan repayment

254,548

45,508

Certificates of deposit

122,869

118,877

Investments in stock

369,175

417,362

Intangible assets

150,000

Other assets Total other assets Total assets

92,753

58,222

989,345

789,969

$11,051,102

$11,383,343

Liabilities and Net Assets Current liabilities Accounts payable and accrued expenses

$105,305

$185,227

Deferred revenue

2,077,265

1,819,339

Other liabilities

188,018

829,995

2,370,588

2,834,561

90,593

149,579

Long-term debt, less current portion

750,000

Deferred income taxes

207,575

220,943

Total long-term liabilities

1,048,168

1,120,522

Total liabilities

3,418,756

3,955,083

7,122,713

6,918,627

509,633

Total current liabilities Long-term liabilities Accrued leave

Net assets Unrestricted Temporarily restricted Total net assets Total liabilities and net assets

F L O R I DA C R E D I T UN ION LEAGUE

7,632,346

7,428,260

$11,051,102

$11,383,343

Combined Statements of Activities

YEARS ENDED DECEMBER 31

Florida Credit Union League, Inc. and Affiliates

Unrestricted revenue Dues Management fees Commissions and promotional fees Sales Schools and conferences Convention income Servicing fees PAC contributions Other contributions Net assets released from restrictions Other Total unrestricted revenues Unrestricted expenses Program service: Mortgage support services Personnel services Financial management and processing services Shared facilities management Educational programs Business development Meetings, committees and convention Government affairs Member communications Foundation Political contributions Supporting services: General and administrative Total unrestricted expenses Change in unrestricted net assets before other unrestricted income (loss) and income taxes Other unrestricted income (loss) Equity in earnings of subsidiary Interest Total unrestricted other income (loss) Change in unrestricted net assets before income taxes Income tax benefit (expense) Change in unrestricted net assets Beginning unrestricted net assets Unrestricted net assets, end of year Temporarily restricted contributions Net assets released from restrictions Change in temporarily restricted net assets Temporarily restricted net assets, beginning of year Temporarily restricted net assets, end of year Total net assets, end of year

2009

2008

$2,257,338 123,212 2,350,894 1,077,019 90,058 532,833 162,542 407,637 224,796 31,239 7,257,568

$2,296,881 125,078 2,229,076 1,184,231 88,754 668,296 159,679 482,737 295,288 27,500 90,978 7,648,498

110,410 266,956 1,033,074 28,392 473,104 1,783,112 531,671 852,193 191,081 112,652 362,753

106,470 341,651 990,121 25,851 595,515 1,664,306 696,180 988,819 190,366 151,075 248,666

1,419,025 7,164,423 93,145

1,493,568 7,492,588 155,910

(69) 23,476 23,407 116,552 87,534 204,086 6,918,627 7,122,713 509,633 509,633 $7,632,346

(4,036) 111,657 107,621 263,531 23,899 287,430 6,631,197 6,918,627 49,567 (27,500) 22,067 487,566 509,633 $7,428,260

2 0 0 9 A N N U A L R E P O RT

Combined Statements of Cash Flows

YEARS ENDED DECEMBER 31

Florida Credit Union League, Inc. and Affiliates 2009

2008

$204,086

$309,497

244,822

130,000

Cash flows from operating activities Change in net assets Adjustment to reconcile change in net assets to net cash provided by operating activities: Bad debts Realized loss

48,117

4,036

(16,500)

217,171

229,636

Accounts receivable

(560)

(145,520)

Inventory

1,641

1,208

Loss on investment in subsidiary (Gain) loss on sale of property and equipment Depreciation and amortization (Increase) decrease in:

Prepaid expenses Other assets Cash held for others

25,780

53,206

(47,010)

641,180

143,841

(138,908)

(54,942)

Increase (decrease) in: Accounts payable and accrued expenses Deferred revenue Other liabilities Deferred income taxes Net cash provided by operating activities

257,926

18,492

(641,977)

(137,040)

(47,899)

8,763

811,448

497,667

(3,992)

(5,472)

Cash flows from investing activities Purchase of investments (rollover of certificates of deposit shown at net) Proceeds from sale of equipment

16,500

Purchase of property and equipment

(141,736)

(120,183)

Net cash (used in) investing activities

(145,728)

(109,155)

(209,040)

141,910

Cash flows from financing activities Restricted cash for loan repayment Net proceeds from borrowings on line of credit Net cash (used in) provided by financing activities Net change in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year

F L O R I DA C R E D I T UN ION LEAGUE

(9,479)

(209,040)

132,431

456,680

520,943

6,626,700

6,105,757

$7,083,380

$6,626,700

Combined Statements of Cash Flows Continuned 2009

2008

$7,650

$2,500

Supplemental disclosures of cash flow information Cash paid during year for: Income taxes

Non-cash transactions: During 2008, the Florida Credit Union League, Inc. and Subsidiaries exchanged $150,000 of common stock in Title Auctions for its contracts, customer lists and nonexclusive license to use the internet bidding platform. During 2008, the loan payable of $750,000 that matured in November 2008 was renewed until November 2011. Reconciliation of cash and cash equivalents to amounts reported on the combined statements of financial position:

Cash and cash equivalents Donor restricted cash for temporarily restricted purposes Total cash and cash equivalents

2009

2008

$6,523,747

$6,067,067

559,633

$7,083,380

$6,626,700

2 0 0 9 A N N U A L R E P O RT

NOTE 1 – NATURE OF OPERATIONS The following summary describes the significant accounting policies followed by the Florida Credit Union League, Inc. (the League), the FCUL Services Group, Inc. (the Service Group), the Florida Credit Union Foundation (the Foundation), and the Florida Credit Union Political Action Committee (the Committee) in the presentation of the accompanying combined financial statements. The League is a tax-exempt entity organized to coordinate and encourage the growth of the credit union movement in Florida, to promote the education of its membership and to render assistance in all matters affecting the welfare and development of credit unions within the state. In accomplishing these purposes, the League provides assistance to its affiliates, the Foundation, the Committee and local chapters. These local chapters are not considered financially-interrelated organizations and, accordingly, are not included in the accompanying combined financial statements. The Service Group is a for-profit, wholly owned subsidiary of the League organized to provide goods and services which will directly or indirectly enhance the credit union movement. These services include, but are not limited to, mortgage processing and promotion, financial analysis and publications. The Service Group owns 100% of the authorized and outstanding common stock of C.U. Mortgage Support Services, Inc., (CUMSS) a subsidiary for-profit entity which began operations on April 22, 1999. The Service Group’s financial statements reflect the results of CUMSS under the same principles described below. In accordance with the applicable provisions of the Internal Revenue Code, the Service Group is subject to income taxes on its net taxable income. The Foundation is a non-profit organization controlled by the League. The Foundation was formed to advance science, charity, education and other charitable purposes as they relate to the field of consumer credit with particular emphasis on credit unions and the credit union movement. The Foundation is not considered a private foundation. The Committee was organized as a committee of continuous existence under the Statutes of the State of Florida and is a political organization under the Internal Revenue Code. The Committee provides effective political action by supporting the election of candidates to any political office of statewide jurisdiction.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES P ri n ciples o f C o m b i n at i o n / C o n soli d ati on

The combined financial statements include the accounts of the League, Service Group, Foundation and Committee. All significant intercompany accounts and transactions have been eliminated in consolidation. The term “Organization” refers to the League and its combined affiliates. The combined financial statements include the combined statements of financial position, combined statements of activities, and combined statements of cash flows, as determined using the accrual basis of accounting. Accordingly, revenue and expenses are recognized as earned or incurred. Basis o f P resen tat i o n

The Organization prepares its financial statements under the guidance of Statement of Financial Accounting Standards (SFAS) Statement No. 117, Financial Statements of Not-for-Profit Organizations. As such, the Organization reports information regarding its financial position and activities according to three classes of net assets based upon the existence or absence of donor-imposed restrictions. The Organization also follows SFAS Statement No. 116, Accounting for Contributions Received and Contributions Made, whereby contributions received are recorded as unrestricted, temporarily restricted or permanently restricted support, depending on the existence and/or nature of any donor-imposed restrictions.

F L O R I DA C R E D I T UN ION LEAGUE

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: U n r e s t r i c t e d N e t A s s e t s – N e t a s s e t s that are not su bject to donor-imposed restrictions.

Temporarily Restricted Net Assets – Net assets subject to donor-imposed stipulations that may or will be met, either by actions of the Organization and/or the passage of time. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. This class of net assets represents funds restricted for disaster relief efforts. Permanently Restricted Net Assets – Net assets subject to donor-imposed stipulations to be maintained permanently by the Organization. The donors of these assets permit the Organization to use all or part of the income earned on any related investments for general or specific purposes. The Organization has no permanently restricted net assets. Ca s h a n d C a s h Eq u i va l e n t s

Cash and cash equivalents consist of cash on hand; checking, savings and money market accounts; and certificates of deposit with maturities of less than 90 days. For purposes of preparing the combined statements of cash flows, cash and cash equivalents include restricted cash related to the Foundation’s Hurricane Relief efforts, restricted cash for short-term loan repayment and cash held for others. Ca s h He l d f o r Ot h e r s a n d Ot h e r L i a b ilities

The Organization, through CUMSS, receives mortgage proceeds less various fees from a single mortgage investor and transfers the money less a servicing fee to the member credit unions issuing the mortgages. The Organization acts as a custodian of the cash received and therefore, has no discretion concerning the use of the cash. The amount held is represented by the asset, cash held for others, and the offsetting liability, included in other liabilities. The Foundation administers the hurricane relief efforts for the Mississippi credit union association. As the Foundation collects the donations on behalf of the out-ofstate association and disburses the funds based on its directives, the Foundation does not have control of the funds. As such, all unspent amounts collected on their behalf are recorded as the asset “cash held for others” with an offsetting liability “current liabilities” on the statements of financial position. Ac c o u n t s R e c e i vab l e

Accounts receivable consist primarily of fees, commissions and sponsorships. Accounts receivable are stated at their net realizable value. In v e n to r i e s

Inventories are stated at the lower of cost or fair market value. Cost is determined by the first-in, first-out method. P r o p e rt y a n d E q u i p m e n t

Property and equipment purchased with a cost greater than $2,500 are capitalized and recorded at cost. Furniture and equipment are depreciated over their estimated useful lives ranging from 2 to 15 years, using the straight-line method. Building and improvements are depreciated over their estimated useful life of 30 to 35 years, using the straight-line method. Vehicles are depreciated over their estimated useful lives ranging from 3 to 5 years, using the straight-line method.

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NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

R estr i cte d C ash f or L oan R epay me n t

Restricted cash for loan repayment consists of amounts on deposit with a local credit union, pledged as security for the loan described in note 7. In v est me n ts i n S toc k

Investments primarily consist of common stock of U.S. corporations whose shares are not publicly traded. Such investments represent 20% or less of the outstanding shares of the related corporate stock and, accordingly, are recorded at cost, except for the investment in Trisight, LLC and CU Members Management Group, LLC. The investments in Trisight, LLC and CU Members Management Group, LLC represent 33% of the members’ equity. As such, the investments in Trisight, LLC and CU Members Management Group are accounted for by the equity method. In tan g i ble A sse t s

Intangible assets include the rights to the operations of Title Auctions. The rights to the operations of Title Auctions were recorded at cost and reviewed for impairment on an annual basis in accordance with SFAS 142, Goodwill and Other Intangible Assets. Def erred R e ve n ue

Deferred revenue arises when future years’ revenues are collected in advance of being earned and is reported as a liability on the combined statements of financial position. In subsequent periods when revenue recognition criteria are met, the liability for deferred revenue is removed from the combined statements of financial position and revenue is recognized. R e v e n ue R ecog n i t i o n

Revenues are recognized when the earnings process is substantially complete and goods have been delivered or services performed. Educational program revenues are recognized when the educational course has been held or the educational materials have been delivered. Revenues from membership dues, management fees and commissions are recognized in the year to which they relate. In com e Ta x es

The League is a corporation exempt from income taxes under Section 501(c)(6) of the Internal Revenue Code, except for taxes on unrelated business income. The Service Group is a taxable corporation. The Foundation is a corporation exempt from taxes under code section 501(c)(3) of the internal revenue code, except for taxes on unrelated business income. The Committee is a political organization taxable under section 527(f) of the Internal Revenue Code. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. Current income taxes are based on the year’s income taxable for federal and state income tax reporting purposes. The Organization’s temporary differences are due to the use of accelerated depreciation and amortization methods for tax purposes, as well as a net operating loss carryforward. A d vert is i n g

Advertising costs are expensed as incurred. Advertising costs totaled $113,320 and $202,261 for the years ended December 31, 2009 and 2008, respectively. Accoun t i ng Es t i m at es

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make

F L O R I DA C R E D I T UN ION LEAGUE

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Su b s e q u e n t Ev e n t s

Subsequent events have been evaluated through the date the financial statements were available to be issued. R e c l a s s i f i c at i o n s

Certain reclassifications were made to the 2008 statements of cash flows to conform to the 2009 presentation. Additionally, the investment in the FCUL Service Group as recorded on the league’s individual financial statements was adjusted to its original cost. The adjustment has no effect on the combined financial statements.

NOTE 3 – ACCOUNTS RECEIVABLE Accounts receivable consist of the following: December 31, CUNA Mutual Trade accounts receivable CU Title of Palm Beach, LLC Accounts receivable

2009

2008

$362,106

$494,862

336,152

314,972

132,686

$698,258

$942,520

Included in trade accounts receivables are amounts due from the Florida Credit Union Shared Services, Inc., a related party (see note 5). These amounts totaled $18,323 and $18,728 at December 31, 2009 and 2008, respectively. Amounts due from CU Title of Palm Beach, LLC at December 31, 2008 included personnel and administrative expenses incurred by the Service Group on their behalf. The Service Group indirectly owned 10% of CU Title of Palm Beach, LLC’s members equity. During 2009, the investment in CU Title of Palm Beach, LLC was sold, and the Service Group’s receivable from CU Title of Palm Beach, LLC was written off. The Service Group incurred bad debts expense of $244,822 and $130,000 for 2009 and 2008, respectively. Management considers accounts receivable to be fully collectible. Therefore, no allowance for doubtful accounts has been provided.

2 0 0 9 A N N U A L R E P O RT

NOTE 4 – PROPERTY AND EQUIPMENT – NET Property and equipment consists of the following: December 31,

2009

2008

Land

$199,415

Building and improvements

2,769,040

2,761,241

Furniture and equipment

1,706,979

1,669,786

Vehicles Property and equipment

202,110

221,038

4,877,544

4,851,480

Accumulated depreciation

(2,927,914)

(2,826,416)

Property and equipment - net

$1,949,630

$2,025,064

2009

2008

Depreciation expense for the years ended December 31, 2009 and 2008 totaled $217,171 and $229,636, respectively.

NOTE 5 – INVESTMENT IN STOCK Investment in stock includes the following: December 31, Trisight, LLC

$77,163

$77,906

CUNA Strategic Services, Inc.

18,073

Florida C.U. Shared Service, Inc.

33,439

500

200,000

40,000

C.U. 24, Inc. C.U. House, LLC League InfoSight, LLC CU Members Management Group, LLC Total investment in stock

47,444

$369,175

$417,362

The shares of these organizations are not publicly traded. Because there are no quoted market prices for these investments, a reasonable estimate of their fair value could not be made. Management evaluated all cost-method investments for impairment. The fair value of all cost-method investments is not estimated as there were no identified events or changes in circumstances that may have a significant adverse effect of the fair value of the investment, and the Organization is exempt from estimating its value in accordance with SFAS 126, Exemption from Certain Required Disclosures about Financial Instruments for Certain Non-public Entities. The aggregate carrying amount of all cost-method investments was $292,012 and $292,012 at December 31, 2009 and 2008, respectively.

F L O R I DA C R E D I T UN ION LEAGUE

NOTE 5 - INVESTMENT IN STOCK (CONTINUED)

During 2009, CU Members Management Group, LLC liquidated its investment in CU Title of Palm Beach, LLC. The Service Group’s loss as a result of the liquidation was $48,117 and included in other income on the statements of activities. The Service Group retained a 33% ownership in CU Members Management Group, LLC; however reduced its fair market value to zero as a result of the liquidation of CU Title Palm Beach, LLC. Unaudited financial information related to investments accounted for under the equity method are as follows: As of and for the year ended December 31, 2009

Trisight, LLC (33% ownership)

Assets

$231,527

Liabilities

Results of operations - (loss)

$(2,231)

NOTE 6 – DEFERRED REVENUE Deferred revenue includes amounts collected in advance for: December 31, Annual dues Convention exhibits and sponsorships Total

2009

2008

$2,027,276

$1,677,921

49,989

141,418

$2,077,265

$1,819,339

NOTE 7 – LOANS PAYABLE Loans payable consist of the following: December 31, Loan payable to credit union, maturing in November 2011, fully collateralized by cash deposits, interest payable at a variable rate (0.95% at December 31, 2009). Total Less current portion Long-term portion

2009

2008

$750,000

750,000

$750,000

2 0 0 9 A N N U A L R E P O RT

NOTE 8 – RETIREMENT PLANS Def i ne d C o n t r i b u t io n Pla n

Substantially all employees of the Organization are eligible to participate in the FCUL Service Group, Inc. and Affiliates 401K Plan (the Plan), a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code and administered by CUNA Mutual Insurance Group. The Plan is a defined contribution plan for salaried employees who have completed one year of service and have attained age 21. The Organization currently contributes 5% of any participant’s effective salary plus a matching contribution equal to 100% of the first 5% of any employee’s matching contributions. The employees’ contributions are limited under Section 401(k) and 415 of the Internal Revenue Code. Pension expense amounted to $260,570 and $240,963 for the years ended December 31, 2009 and 2008, respectively.

NOTE 9 – INCOME TAXES The components of income tax expense are as follows: December 31,

2009

2008

Current

$(6,337)

$(11,479)

Deferred

78,906

30,598

72,569

19,119

(2,869)

14,965

7,649

14,965

4,780

$87,534

$23,899

Federal

Federal income tax benefit (expense) State Current Deferred State income tax benefit (expense) Total income tax benefit (expense)

The net deferred tax liabilities at December 31, 2009 and 2008, of $207,575 and $220,943, respectively, result from the use of different reporting methods for depreciation and amortization for financial accounting and income tax purpose. The deferred tax assets at December 31, 2009 and 2008, of $81,541 and $47,010, respectively, result from a net operating loss carryforward of approximately $202,000 for federal purposes and $250,000 for state purposes. The deferred tax asset is included in other assets on the combined statements of financial position. The carryforward will expire in 2029. During 2009, the Company received $45,127 related to the carryback of prior net operating losses. The Company’s effective tax rate varies from that which would be expected if the federal and state statutory rates were applied to income from continuing operations, primarily as a result of only the operations of the Service Group are taxable. The federal and State of Florida income tax returns of the Organization for 2006, 2007 and 2008 are subject to examination by the Internal Revenue Service, generally for three years after they were filed. Effective January 1, 2009, the Company implemented the new accounting requirements associated with uncertainty in income taxes using the provisions of Financial

F L O R I DA C R E D I T UN ION LEAGUE

NOTE 9 - INCOME TAXES (CONTINUED)

Accounting Standards Board (FASB) ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of December 31, 2009, the Company has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements

NOTE 10 – CONCENTRATIONS Significant concentrations are as follows: De m a n d a nd Ti m e D e p o s i t s

The Organization has no policy requiring collateral or other security to support its deposits, although all demand and time deposits with credit unions are federally insured for up to $250,000 under the National Credit Union Share Insurance Fund. The Organization had deposits with a local credit union in excess of federally insured limits at December 31, 2009. Ac c o u n t s R e c e i vab l e

The Organization has no policy requiring collateral or other security to support its receivables. Ma j o r Cu s to m e r

During 2009 and 2008, the Organization received approximately 19% and 22% of total revenue from one major customer.

NOTE 11 – FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing the various programs and activities have been summarized on a functional basis in the combined statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Allocated costs are charged in a consistent, rational manner. Allocation methods are evaluated and revised on a periodic basis. Revisions are made based on changes in the nature of programs and activities and on changes in the costs of supporting the specific programs and activities.

NOTE 12 – COMMITMENTS AND CONTINGENCIES At December 31, 2009, line of credit arrangements are as follows: The Organization had a line of credit totaling $1,000,000 with a single financial institution. Borrowings outstanding under the line of credit totaled $-0- at December 31, 2009 and 2008. Outstanding borrowings bear interest at a variable rate (3.0% at December 31, 2009) and are collateralized by all promissory notes collateralized by mortgages on one to four (1-4) family residential housing units made by the Organization using the proceeds of advances made under the line of credit. The agreement renews automatically each April.

2 0 0 9 A N N U A L R E P O RT

NOTE 12 -COMMITMENTS AND CONTINGENCIES (CONTINUED)

The Organization has two lines of credit totaling $600,000 with a single financial institution. Borrowings outstanding under the line of credit totaled $-0- and $-0- at December 31, 2009 and 2008, respectively. Outstanding borrowings bear interest at a variable rate (3.0% at December 31, 2009) and are collateralized by all equipment, furniture and fixtures, together with all repairs, improvements and accessions thereto and replacements and substitutions therefore, now owed or hereafter acquired by the Organization; all accounts of the Organization now existing or hereafter at any time acquired; all contract rights of the Organization now existing or hereafter at any time acquired; all proceeds of the foregoing; and all assets of the Organization. The agreement renews automatically each year. The Organization leases certain office equipment treated as an operating lease expiring in 2013. Total rent expense related to the lease was $10,584 and $7,938 for 2009 and 2008, respectively. Future minimum lease payments related to the lease until expiration is as follows: For years ending December 31, 2010

$10,584

2011

10,584

2012

10,584

2013

2,646

Total

$34,398

NOTE 13 â&#x20AC;&#x201C; RELATED PARTIES For certain entities in which the Organization holds an ownership interest, the Organization provides certain management functions at a fee. Those entities that owe the Organization amounts for services are discussed at note 3.

NOTE 14 â&#x20AC;&#x201C; OTHER LIABILITIES Other liabilities consist of the following: December 31, Cash held for others - CUMSS Cash held for others - Foundation Total

F L O R I DA C R E D I T UN ION LEAGUE

2009

2008

$126,379

$773,053

61,639

56,942

$188,018

$829,995

NOTE 15 – INTANGIBLE ASSETS Intangible assets consist of the ownership and rights to the contracts, customer lists, and non-exclusive license to use the bidding platform to Title Auctions. The ownership and rights were obtained in 2008 upon the exchange of $150,000 of common stock in Title Auctions. In accordance with SFAS 142, Goodwill and Other Intangible Assets, management reviewed the value of the rights for impairment during 2009. Management does not consider the value to be impaired at December 31, 2009.

NOTE 16 – MERGER WITH ALABAMA CREDIT UNION LEAGUE Effective January 1, 2010, the Florida Credit Union League and its affiliates merged with the Alabama Credit Union League. The new entity is named the League of Southeastern Credit Unions.

2 0 0 9 A N N U A L R E P O RT

Florida Credit Union League Supplementary Information

F L O R I DA C R E D I T UN ION LEAGUE

Combining Statements of Financial Position

DECEMBER 31, 2009

Florida Credit Union League, Inc. and Affiliates

Florida Credit Union League, Inc.

FCUL Service Group, Inc.

Florida Credit Union Political Action Committee

Florida Credit Union Foundation

Debit (Credit) Combining Entry

Combined Total

Assets Current assets Cash and cash equivalents Donor restricted cash Cash held for others Accounts receivable Intercompany accounts receivable Inventory Prepaid expenses

$3,263,021 7,735 55,057

$801,245 127,929 643,457 63,028 10,978 80,316

$1,181,008 559,633 56,209 47,066 -

$1,278,473 -

$(63,028) -

$6,523,747 559,633 184,138 698,258 10,978 135,373

3,325,813 51,462

1,726,953 1,898,168

1,843,916 -

1,278,473 -

(63,028) -

8,112,127 1,949,630

122,869 550,000 -

254,548 129,175 150,000 92,753

(310,000) -

254,548 122,869 369,175 150,000 92,753

672,869 $4,050,144

626,476 $4,251,597

$1,843,916

$1,278,473

(310,000) $(373,028)

989,345 $11,051,102

Current liabilities Accounts payable and accrued expenses Intercompany accounts payable Deferred revenue Other liabilities

$37,515 63,028 2,036,455 -

$67,790 40,810 126,379

$61,639

$(63,028) -

$105,305 2,077,265 188,018

Total current liabilities

2,136,998

234,979

61,639

(63,028)

2,370,588

25,962 -

64,631 207,575 750,000

90,593 207,575 750,000

Total long-term liabilities Total liabilities

25,962 2,162,960

1,022,206 1,257,185

61,639

(63,028)

1,048,168 3,418,756

Net assets Unrestricted Temporarily restricted Common Stock

1,887,184 -

2,684,412 310,000

1,222,644 559,633 -

1,278,473 -

50,000 (50,000) (310,000)

7,122,713 509,633 -

1,887,184 $4,050,144

2,994,412 $4,251,597

1,782,277 $1,843,916

1,278,473 $1,278,473

(310,000) $(373,028)

7,632,346 $11,051,102

Total current assets Property and equipment - net Other assets Restricted cash for loan repayment Certificate of deposit Investments in stock Intangible assets Other assets Total other assets Total assets Liabilities and Net Assets

Long-term liabilities Accrued leave Deferred income taxes Long-term debt, less current portion

Total net assets Total liabilities and net assets

2 0 0 9 A N N U A L R E P O RT

Combining Statement of Activities

AS OF DECEMBER 31

Florida Credit Union League, Inc. and Affiliates Florida Credit Union League, Inc. Unrestricted revenue Dues Management fees Commissions and promotional Sales Schools and conferences Convention income Servicing fees PAC contributions Other contributions Net assets released from restrictions Other Total unrestricted revenues Unrestricted expenses Program service: Mortgage support services Personnel services Financial management and processing services Shared facilities management Educational programs Business development Meetings, committees and convention Government affairs Member communications Foundation Political contributions Supporting services: General and administrative Total unrestricted expenses Change in unrestricted net assets before other unreOther unrestricted income (loss) Equity in earnings of subsidiary Interest Total unrestricted other income (loss) Change in unrestricted net assets before income taxes Income tax benefit (expense) Change in unrestricted net assets Unrestricted net assets, beginning of year, Prior period adjustment Reduce investment in FSG to cost Unrestricted net assets, beginning of year, as restated Unrestricted net assets, end of year Temporarily restricted contributions Net assets released from restrictions Temporarily restricted net assets, beginning of year Temporarily restricted net assets, end of year Total net assets 56

F L O R I DA C R E D I T UN ION LEAGUE

FCUL Service Group, Inc.

Florida Credit Union Foundation

Florida Credit Union Political Action Committee

Debit (Credit) Combining Entry

Combined Total

$2,257,338 50,780 90,058 532,833 43,340 2,974,349

$173,212 2,350,894 1,026,239 162,542 (12,101) 3,700,786

$224,796 224,796

$407,637 407,637

$(50,000) (50,000)

$2,257,338 123,212 2,350,894 1,077,019 90,058 532,833 162,542 407,637 224,796 31,239 7,257,568

331,293 473,104 531,671 852,193 191,081 -

110,410 266,956 701,781 28,392 1,783,112 -

112,652 -

362,753

110,410 266,956 1,033,074 28,392 473,104 1,783,112 531,671 852,193 191,081 112,652 362,753

439,400 2,818,742 155,607

1,021,263 3,911,914 (211,128)

112,652 112,144

8,362 371,115 36,522

(50,000) (50,000) -

1,419,025 7,164,423 93,145

10,856 10,856 166,463 166,463 4,519,142

(69) 3,316 3,247 (207,881) 93,871 (114,010) 2,798,422

5,040 5,040 117,184 117,184 1,105,460

4,263 4,263 40,785 (6,337) 34,448 1,244,025

50,000

(69) 23,475 23,406 116,551 87,534 204,085 9,717,049

(2,798,421) 1,720,721 1,887,184 $1,887,184

2,798,422 2,684,412 $2,684,412

1,105,460 1,222,644 559,633 559,633 $1,782,277

1,244,025 1,278,473 $1,278,473

50,000 50,000 (50,000) (50,000) $-

(2,798,421) 6,918,628 7,122,713 509,633 509,633 $7,632,346

Florida Credit Union Foundation

2 0 0 9 A N N U A L R E P O RT

Statements of Financial Position

AS OF DECEMBER 31

Florida Credit Union Foundation 2009

2008

$1,181,008

$1,055,005

559,633

Cash held for others

56,209

51,513

Contributions receivable

47,066

55,884

$1,843,916

$1,722,035

$61,639

$56,942

1,222,644

1,105,460

Assets (Amounts are linked to â&#x20AC;&#x153;Individual Financial Statementsâ&#x20AC;? grouping.) Current assets Cash Restricted cash

Total assets Liabilities and net assets Current liabilities Net assets Unrestricted net assets Temporarily restricted net assets Total net assets Total liabilities and net assets NOTE: Financial statements use different grouping within Engagement.

F L O R I DA C R E D I T UN ION LEAGUE

559,633

1,782,277

1,665,093

$1,843,916

$1,722,035

Statements of Activities

AS OF DECEMBER 31

Florida Credit Union Foundation 2009

2008

$224,796

$295,288

168,483

188,222

5,040

22,199

27,500

229,836

344,987

105,664

120,220

Unrestricted revenue Contributions NCUF concentration Interest and other income Net assets released from restrictions Total unrestricted revenue Unrestricted expenses Donations General and administrative

6,988

36,182

Total unrestricted expenses

112,652

156,402

Change in unrestricted net assets

117,184

188,585

Beginning unrestricted net assets

1,105,460

916,875

Ending unrestricted net assets

1,222,644

1,105,460

Temporarily restricted revenue Contributions

49,567

Net assets released from restrictions

(27,500)

Change in temporarily restricted net assets

22,067

Beginning temporarily restricted net assets

559,633

537,566

Ending temporarily restricted net assets

559,633

$1,782,277

$1,665,093

Total net assets

2 0 0 9 A N N U A L R E P O RT

F L O R I DA C R E D I T UN ION LEAGUE