CU SERVICE CENTERS, INC. BOARD OF DIRECTORS MEETING THURSDAY, AUGUST 11, 2011 LSCU BOARDROOM AGENDA I. CALL TO ORDER - ROLL CALL II. CONSENT AGENDA A. Adoption of Minutes III. TREASURER’S REPORT IV. MANAGEMENT REPORT V. BUSINESS A. Introduction of New Board of Member/Officers B. Annual Meeting Recap C. Participant Survey D. Proposed CUSC Investment Policy E. 2011 Strategic Plan Update VI. UNFINISHED BUSINESS VII. ADJOURNMENT
CU SERVICE CENTERS, INC. BOARD OF DIRECTORS MEETING JW MARRIOTT GRAND LAKES HOTEL ORLANDO, FLORIDA FRIDAY, JUNE 17, 2011 ABRIDGED MINUTES The Board of Directors meeting of CU Service Centers, Inc. was called to order on Friday, June 17, 2011 at 3:55 p.m. by Chairman Patrick La Pine. APPOINTMENTS AND ROLL CALL Mr. La Pine appointed Ms. Teresa Gray as recording secretary. The following Directors were in attendance: Linda Cencula, Alabama Telco CU Mr. Monte Hill, Family Savings FCU Mr. Patrick La Pine, League of Southeastern CUs Mr. Joe McGee, Legacy Community FCU Mr. Shane Nobbley, Family Security CU The following Directors were not in attendance: Mr. Heath Harrell, Guardian CU Mr. Merrill Mann, APCO CU Mr. Ned McHenry, AL State Employees CU Mr. Steve Nix, First Educators CU CONSENT AGENDA The minutes of the April 21, 2011 CU Service Centers, Inc. Board of Directors meeting were presented for review and approval. Motion made by Ms. Linda Cencula and seconded by Mr. Shane Nobbley to approve the minutes of the April 21, 2011 CUSC, Inc. Board of Directors meeting as written and distributed. TREASURER’S REPORT Mr. Nobbley had presented a thorough financial update in the CUSC Annual meeting held prior to the Board meeting. BUSINESS A. Election of Officers
Motion made by Mr. Joe McGee and seconded by Mr. Monte Hill that current slate of officers continue to serve in their positions. UNFINISHED BUSINESS Discussion regarding Annual Meeting and best time and location that will generate higher number of attendees. ADJOURNMENT The meeting adjourned at 4:00 p.m. Respectfully submitted,
Teresa Gray, Recording Secretary For Steve Nix, Board Secretary
CUSC of Alabama Executive Summary of June 2011 Operations As of the end of June 30, 2011, CUSC of Alabama had assets totaling $3,391,056 cash and cash equivalents of $3,320,051 make up 97% of the total assets of the corporation. The net deficit in original capitalization is ($8,643) and the company is currently at 99.7% of original capitalization. CUSC’s year‐to‐date assets exceed its liabilities by $3,341,357 (net assets/equity) and year‐todate Return on Assets is 4.64%. Revenue for June was $43,527 as compared to a budget of $45,330. This resulted in a negative revenue budget variance for June of $1,803. Year‐to‐date revenue is tracking at $257,922 as compared to a budget of $269,730, resulting in a negative year‐to‐date budget variance of ($11,808) or (4.37%) while year‐to‐date total operating expense are tracking $47,818 below budget.
Total travel expenses and Management Service Fees were $8,881 lower than budget in June as the Management Company is in the process of designing the menu of services per the management agreement that are provided to CUSC. Advertising expenses were recorded for June in the amount of $2,519. These expenses were for signs and marketing collateral for the LSCU annual meeting in Orlando. Year‐todate advertising expense is tracking $2,508 below budget. We expect these expenses to be in line with budgeted expectations as we progress throughout 2011 and expenses are recorded for new marketing materials, costs for design of the new CUSC website (www.cusc‐al.com) and the network mapping software that will be purchased in July. CUSC of Alabama recorded net income for June of $30,959 as compared to a budgeted net income of $20,632, which was $10,326 higher than budget. Year‐to‐date, CUSC of Alabama has exceeded budgeted net income by $36,010. The majority of this positive net income variance is a direct result of the vacant position on the management company’s behalf that is part of the fees that would have been reimbursed to the management company. Respectfully submitted, G. Scott Morgan SR VP, Finance & Administration League of Southeastern Credit Unions & Affiliates
Credit Union Service Centers, Inc. Balance Sheet June 30, 2011
Page: 1
Current Assets Cash Regions Bank Corporate America C U
$2,452.39 3,317,598.95 -------------------------
Total Cash Accounts Receivable C.U. & Outlet Receivables Deferred Tax Deferred Tax Allowance
3,320,051.34
57,271.12 23,160.34 (23,160.34) -------------------------
Total Accounts Receivable Prepaid Expense Prepaid Insurance Prepaid Other
57,271.12
4,469.00 7,848.65 -------------------------
Total Prepaid Expense Fixed Assets Furniture & Equipment Furniture & Equipment Depr.
12,317.65
6,395.06 (4,979.54) -------------------------
Total Fixed Assets
1,415.52
Investment in Affiliate ------------------------Total Assets
3,391,055.63 ==============
Credit Union Service Centers, Inc. Balance Sheet June 30, 2011
Page: 2
LIABILITIES & EQUITY Accounts Payable Accrued Expenses CU Service Corp. Invoices Other Payable
$802.21 31,634.94 17,260.99 -------------------------
Total Accounts Payable Equity Common Stock Paid in Capital RETAINED EARNINGS Net Gain (Loss) Total Equity Total Liabilities & Equity
49,698.14
67.00 3,349,933.00 (166,288.67) 157,646.16 ------------------------3,341,357.49 ------------------------3,391,055.63 ==============
Credit Union Service Centers, Inc. Income Statement For the Six Months Ending June 30, 2011 June Actual OPERATING INCOME Non-Investor Fees Licensed Service Centers Interest Income Other Income Operating Income
June Budget
YTD Actual
YTD Budget
1,028.50 1,025.00 5,989.30 6,000.00 42,176.50 43,600.00 243,010.00 259,500.00 322.00 705.00 2,850.33 4,230.00 0.00 0.00 6,072.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------43,527.00 45,330.00 257,921.63 269,730.00
OPERATING EXPENSE ------------------------ ------------------------ ------------------------ -----------------------Benefits Group Insurance Total Benefits Training User/Outlet Training Total Training Travel Travel & Lodging Meals & Entertainment Variable Auto Costs Total Travel Outside Services Legal Services Data Processing CPA Services Management Service Fees Reports/Records Management Insurance/Bonds/O&S Other Outside Services Total Outside Services Communications Telephone Postage
Total Communications Advertising & Promotions Advertising & Marketing Total Advertising & Promotion
158.11 0.00 948.67 0.00 ------------------------ ------------------------ ------------------------ -----------------------158.11 0.00 948.67 0.00
0.00 200.00 942.87 1,650.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 200.00 942.87 1,650.00
0.00 670.00 1,185.97 4,020.00 17.04 420.00 351.93 2,520.00 0.00 570.00 718.07 3,420.00 ------------------------ ------------------------ ------------------------ -----------------------17.04 1,660.00 2,255.97 9,960.00
500.00 500.00 3,000.00 3,000.00 229.24 230.00 1,769.26 1,380.00 1,308.10 2,000.00 7,558.10 12,000.00 3,332.19 10,570.18 27,661.77 63,421.08 874.59 950.00 4,459.95 5,700.00 274.58 345.00 1,845.52 2,070.00 220.28 300.00 1,296.60 1,800.00 ------------------------ ------------------------ ------------------------ -----------------------6,738.98 14,895.18 47,591.20 89,371.08
143.98 193.09
200.00 370.00
651.07 1,501.77
1,200.00 2,220.00
------------------------ ------------------------ ------------------------ -----------------------337.07 570.00 2,152.84 3,420.00
2,519.06 5,027.50 27,519.06 30,027.50 ------------------------ ------------------------ ------------------------ -----------------------2,519.06 5,027.50 27,519.06 30,027.50
Credit Union Service Centers, Inc. Income Statement For the Six Months Ending June 30, 2011 June Actual Furniture & Equipment Furniture & Equipment Depr. Equipment/Lease Rental Personal Property Tax Software Fees & Maintenance Total Furniture & Equipment Facilities Insurance/POP Rent Total Facilities Materials & Supplies Operating Supplies Total Materials & Supplies Programs & Conferences Meetings & Conferences Total Programs & Conferences Miscellaneous Gain/Loss on Sale of Assets Total Miscellaneous Taxes & Fees Misc. Taxes & Fees Deferred Tax Expense Federal Income Taxes Total Taxes & Fees Total Operating Expenses Net Income
June Budget
YTD Actual
YTD Budget
99.39 80.00 596.34 480.00 826.75 827.00 4,960.50 4,962.00 143.94 130.00 802.21 780.00 0.00 135.00 0.00 405.00 ------------------------ ------------------------ ------------------------ -----------------------1,070.08 1,172.00 6,359.05 6,627.00
146.00 150.00 876.00 900.00 822.75 823.00 4,936.50 4,938.00 ------------------------ ------------------------ ------------------------ -----------------------968.75 973.00 5,812.50 5,838.00
34.98 200.00 271.49 1,200.00 ------------------------ ------------------------ ------------------------ -----------------------34.98 200.00 271.49 1,200.00
724.33 0.00 3,059.96 0.00 ------------------------ ------------------------ ------------------------ -----------------------724.33 0.00 3,059.96 0.00
0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 0.00 0.00
0.00 0.00 3,361.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 3,361.86 0.00 ------------------------ ------------------------ ------------------------ -----------------------12,568.40 24,697.68 100,275.47 148,093.58 ------------------------ ------------------------ ------------------------ -----------------------30,958.60 20,632.32 157,646.16 121,636.42
Credit Union Service Centers, Inc. Balance Sheet May 31, 2011
Page: 1
Current Assets Cash Regions Bank Corporate America C U
$12,480.90 3,272,107.93 -------------------------
Total Cash Accounts Receivable C.U. & Outlet Receivables Deferred Tax Deferred Tax Allowance
3,284,588.83
56,882.79 23,160.34 (23,160.34) -------------------------
Total Accounts Receivable Prepaid Expense Prepaid Insurance Prepaid Other
56,882.79
578.69 9,156.75 -------------------------
Total Prepaid Expense Fixed Assets Furniture & Equipment Furniture & Equipment Depr.
9,735.44
6,395.06 (4,880.15) -------------------------
Total Fixed Assets
1,514.91
Investment in Affiliate ------------------------Total Assets
3,352,721.97 ==============
Credit Union Service Centers, Inc. Balance Sheet May 31, 2011
Page: 2
LIABILITIES & EQUITY Accounts Payable Accrued Expenses CU Service Corp. Invoices Other Payable
$658.27 31,622.09 10,042.72 -------------------------
Total Accounts Payable Equity Common Stock Paid in Capital RETAINED EARNINGS Net Gain (Loss) Total Equity Total Liabilities & Equity
42,323.08
67.00 3,349,933.00 (166,288.67) 126,687.56 ------------------------3,310,398.89 ------------------------3,352,721.97 ==============
Income Statement For the Five Months Ending May 31, 2011 May Actual OPERATING INCOME Non-Investor Fees Licensed Service Centers Interest Income Other Income Operating Income
May Budget
YTD Actual
YTD Budget
1,077.40 1,025.00 4,960.80 4,975.00 41,685.00 43,600.00 200,833.50 215,900.00 328.96 705.00 2,528.33 3,525.00 3,192.00 0.00 6,072.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------46,283.36 45,330.00 214,394.63 224,400.00
OPERATING EXPENSE ------------------------ ------------------------ ------------------------ -----------------------Benefits Group Insurance Total Benefits Training User/Outlet Training Total Training Travel Travel & Lodging Meals & Entertainment Variable Auto Costs Total Travel Outside Services Legal Services Data Processing CPA Services Management Service Fees Reports/Records Management Insurance/Bonds/O&S Other Outside Services Total Outside Services Communications Telephone Postage
Total Communications Advertising & Promotions Advertising & Marketing Total Advertising & Promotion
158.11 0.00 790.56 0.00 ------------------------ ------------------------ ------------------------ -----------------------158.11 0.00 790.56 0.00
0.00 200.00 942.87 1,450.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 200.00 942.87 1,450.00
180.12 670.00 1,185.97 3,350.00 37.91 420.00 334.89 2,100.00 107.08 570.00 718.07 2,850.00 ------------------------ ------------------------ ------------------------ -----------------------325.11 1,660.00 2,238.93 8,300.00
500.00 500.00 2,500.00 2,500.00 233.95 230.00 1,540.02 1,150.00 1,250.00 2,000.00 6,250.00 10,000.00 3,331.85 10,570.18 24,329.58 52,850.90 150.00 950.00 3,585.36 4,750.00 274.58 345.00 1,570.94 1,725.00 286.80 300.00 1,076.32 1,500.00 ------------------------ ------------------------ ------------------------ -----------------------6,027.18 14,895.18 40,852.22 74,475.90
181.97 446.51
200.00 370.00
507.09 1,308.68
1,000.00 1,850.00
------------------------ ------------------------ ------------------------ -----------------------628.48 570.00 1,815.77 2,850.00
0.00 0.00 25,000.00 25,000.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 25,000.00 25,000.00
Income Statement For the Five Months Ending May 31, 2011 May Actual Furniture & Equipment Furniture & Equipment Depr. Equipment/Lease Rental Personal Property Tax Software Fees & Maintenance Total Furniture & Equipment Facilities Insurance/POP Rent Total Facilities Materials & Supplies Operating Supplies Total Materials & Supplies Programs & Conferences Meetings & Conferences Total Programs & Conferences Miscellaneous Gain/Loss on Sale of Assets Total Miscellaneous Taxes & Fees Misc. Taxes & Fees Deferred Tax Expense Federal Income Taxes Total Taxes & Fees Total Operating Expenses Net Income
May Budget
YTD Actual
YTD Budget
99.39 80.00 496.95 400.00 826.75 827.00 4,133.75 4,135.00 143.94 130.00 658.27 650.00 0.00 135.00 0.00 270.00 ------------------------ ------------------------ ------------------------ -----------------------1,070.08 1,172.00 5,288.97 5,455.00
146.00 150.00 730.00 750.00 822.75 823.00 4,113.75 4,115.00 ------------------------ ------------------------ ------------------------ -----------------------968.75 973.00 4,843.75 4,865.00
0.00 200.00 236.51 1,000.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 200.00 236.51 1,000.00
2,335.63 0.00 2,335.63 0.00 ------------------------ ------------------------ ------------------------ -----------------------2,335.63 0.00 2,335.63 0.00
0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 0.00 0.00
1.86 0.00 0.00 -----------------------1.86 -----------------------11,515.20 -----------------------34,768.16 ==============
0.00 0.00 0.00 -----------------------0.00 -----------------------19,670.18 -----------------------25,659.82 ==============
3,361.86 0.00 0.00 -----------------------3,361.86 -----------------------87,707.07 -----------------------126,687.56 ==============
0.00 0.00 0.00 -----------------------0.00 -----------------------123,395.90 -----------------------101,004.10 ==============
Credit Union Service Centers, Inc. Balance Sheet April 30, 2011
Page: 1
Current Assets Cash Regions Bank Corporate America C U
$23,798.44 3,228,147.71 -------------------------
Total Cash Accounts Receivable C.U. & Outlet Receivables Deferred Tax Deferred Tax Allowance
3,251,946.15
59,185.06 23,160.34 (23,160.34) -------------------------
Total Accounts Receivable Prepaid Expense Prepaid Insurance Prepaid Other
59,185.06
1,157.38 8,865.00 -------------------------
Total Prepaid Expense Fixed Assets Furniture & Equipment Furniture & Equipment Depr.
10,022.38
6,395.06 (4,780.76) -------------------------
Total Fixed Assets
1,614.30
Investment in Affiliate ------------------------Total Assets
3,322,767.89 ==============
Credit Union Service Centers, Inc. Balance Sheet April 30, 2011
Page: 2
LIABILITIES & EQUITY Accounts Payable Accrued Expenses CU Service Corp. Invoices Other Payable
$514.33 32,256.12 14,424.83 -------------------------
Total Accounts Payable Equity Common Stock Paid in Capital RETAINED EARNINGS Net Gain (Loss) Total Equity Total Liabilities & Equity
47,195.28
67.00 3,349,933.00 (166,288.67) 91,861.28 ------------------------3,275,572.61 ------------------------3,322,767.89 ==============
Credit Union Service Centers, Inc. Income Statement For the Four Months Ending April 30, 2011 April Actual OPERATING INCOME Non-Investor Fees Licensed Service Centers Interest Income Other Income Operating Income
April Budget
YTD Actual
YTD Budget
1,015.00 1,025.00 3,883.40 3,950.00 41,209.00 43,600.00 159,148.50 172,300.00 415.22 705.00 2,199.37 2,820.00 2,000.00 0.00 2,880.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------44,639.22 45,330.00 168,111.27 179,070.00
OPERATING EXPENSE ------------------------ ------------------------ ------------------------ -----------------------Benefits Group Insurance Total Benefits Training User/Outlet Training Total Training Travel Travel & Lodging Meals & Entertainment Variable Auto Costs Total Travel Outside Services Legal Services Data Processing CPA Services Management Service Fees Reports/Records Management Insurance/Bonds/O&S Other Outside Services Total Outside Services Communications Telephone Postage
Total Communications Advertising & Promotions Advertising & Marketing Total Advertising & Promotion
158.11 0.00 632.45 0.00 ------------------------ ------------------------ ------------------------ -----------------------158.11 0.00 632.45 0.00
130.38 200.00 942.87 1,250.00 ------------------------ ------------------------ ------------------------ -----------------------130.38 200.00 942.87 1,250.00
271.32 670.00 1,005.85 2,680.00 49.54 420.00 296.98 1,680.00 140.96 570.00 610.99 2,280.00 ------------------------ ------------------------ ------------------------ -----------------------461.82 1,660.00 1,913.82 6,640.00
500.00 500.00 2,000.00 2,000.00 232.56 230.00 1,306.07 920.00 1,250.00 2,000.00 5,000.00 8,000.00 3,380.73 10,570.18 20,997.73 42,280.72 971.34 950.00 3,435.36 3,800.00 274.59 345.00 1,296.36 1,380.00 246.32 300.00 789.52 1,200.00 ------------------------ ------------------------ ------------------------ -----------------------6,855.54 14,895.18 34,825.04 59,580.72
82.37 204.94
200.00 370.00
325.12 862.17
800.00 1,480.00
------------------------ ------------------------ ------------------------ -----------------------287.31 570.00 1,187.29 2,280.00
0.00 0.00 25,000.00 25,000.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 25,000.00 25,000.00
Credit Union Service Centers, Inc. Income Statement For the Four Months Ending April 30, 2011 April Actual Furniture & Equipment Furniture & Equipment Depr. Equipment/Lease Rental Personal Property Tax Software Fees & Maintenance Total Furniture & Equipment Facilities Insurance/POP Rent Total Facilities Materials & Supplies Operating Supplies Total Materials & Supplies Programs & Conferences Meetings & Conferences Total Programs & Conferences Miscellaneous Gain/Loss on Sale of Assets Total Miscellaneous Taxes & Fees Misc. Taxes & Fees Deferred Tax Expense Federal Income Taxes Total Taxes & Fees Total Operating Expenses Net Income
April Budget
YTD Actual
YTD Budget
99.39 80.00 397.56 320.00 826.75 827.00 3,307.00 3,308.00 128.58 130.00 514.33 520.00 0.00 135.00 0.00 135.00 ------------------------ ------------------------ ------------------------ -----------------------1,054.72 1,172.00 4,218.89 4,283.00
146.02 150.00 584.00 600.00 822.75 823.00 3,291.00 3,292.00 ------------------------ ------------------------ ------------------------ -----------------------968.77 973.00 3,875.00 3,892.00
101.63 200.00 236.51 800.00 ------------------------ ------------------------ ------------------------ -----------------------101.63 200.00 236.51 800.00
0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 0.00 0.00
0.00 0.00 3,360.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 3,360.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------10,018.28 19,670.18 76,191.87 103,725.72 ------------------------ ------------------------ ------------------------ -----------------------34,620.94 25,659.82 91,919.40 75,344.28
Credit Union Service Centers, Inc. Balance Sheet March 31, 2011
Page: 1
Current Assets Cash Regions Bank Corporate America C U
$43,766.02 3,177,350.20 -------------------------
Total Cash Accounts Receivable C.U. & Outlet Receivables Deferred Tax Deferred Tax Allowance
3,221,116.22
57,533.61 23,160.34 (23,160.34) -------------------------
Total Accounts Receivable Prepaid Expense Prepaid Insurance Prepaid Other
57,533.61
1,934.10 4,115.00 -------------------------
Total Prepaid Expense Fixed Assets Furniture & Equipment Furniture & Equipment Depr.
6,049.10
6,395.06 (4,681.37) -------------------------
Total Fixed Assets
1,713.69
Investment in Affiliate ------------------------Total Assets
3,286,412.62 ==============
Credit Union Service Centers, Inc. Balance Sheet March 31, 2011
Page: 2
LIABILITIES & EQUITY Accounts Payable Accrued Expenses CU Service Corp. Invoices Other Payable
$385.75 29,722.66 15,294.42 -------------------------
Total Accounts Payable Equity Common Stock Paid in Capital RETAINED EARNINGS Net Gain (Loss) Total Equity Total Liabilities & Equity
45,402.83
67.00 3,349,933.00 (166,288.67) 57,298.46 ------------------------3,241,009.79 ------------------------3,286,412.62 ==============
Credit Union Service Centers, Inc. Income Statement For the Three Months Ending March 31, 2011 March Actual OPERATING INCOME Non-Investor Fees Licensed Service Centers Interest Income Other Income Operating Income
March Budget
YTD Actual
YTD Budget
1,023.00 975.00 2,868.40 2,925.00 42,522.00 42,900.00 117,939.50 128,700.00 538.38 705.00 1,784.15 2,115.00 0.00 0.00 880.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------44,083.38 44,580.00 123,472.05 133,740.00
OPERATING EXPENSE ------------------------ ------------------------ ------------------------ -----------------------Benefits Group Insurance Total Benefits Training User/Outlet Training Total Training Travel Travel & Lodging Meals & Entertainment Variable Auto Costs Total Travel Outside Services Legal Services Data Processing CPA Services Management Service Fees Reports/Records Management Insurance/Bonds/O&S Other Outside Services Total Outside Services Communications Telephone Postage
Total Communications Advertising & Promotions Advertising & Marketing Total Advertising & Promotion
158.11 0.00 474.34 0.00 ------------------------ ------------------------ ------------------------ -----------------------158.11 0.00 474.34 0.00
558.20 650.00 812.49 1,050.00 ------------------------ ------------------------ ------------------------ -----------------------558.20 650.00 812.49 1,050.00
354.18 670.00 734.53 2,010.00 91.07 420.00 247.44 1,260.00 166.80 570.00 470.03 1,710.00 ------------------------ ------------------------ ------------------------ -----------------------612.05 1,660.00 1,452.00 4,980.00
500.00 500.00 1,500.00 1,500.00 529.25 230.00 1,073.51 690.00 1,250.00 2,000.00 3,750.00 6,000.00 3,316.05 10,570.18 17,617.00 31,710.54 821.34 950.00 2,464.02 2,850.00 340.59 345.00 1,021.77 1,035.00 280.00 300.00 543.20 900.00 ------------------------ ------------------------ ------------------------ -----------------------7,037.23 14,895.18 27,969.50 44,685.54
82.41 318.02
200.00 370.00
242.75 657.23
600.00 1,110.00
------------------------ ------------------------ ------------------------ -----------------------400.43 570.00 899.98 1,710.00
25,000.00 25,000.00 25,000.00 25,000.00 ------------------------ ------------------------ ------------------------ -----------------------25,000.00 25,000.00 25,000.00 25,000.00
Credit Union Service Centers, Inc. Income Statement For the Three Months Ending March 31, 2011 March Actual Furniture & Equipment Furniture & Equipment Depr. Equipment/Lease Rental Personal Property Tax Total Furniture & Equipment Facilities Insurance/POP Rent Total Facilities Materials & Supplies Operating Supplies Total Materials & Supplies Programs & Conferences Meetings & Conferences Total Programs & Conferences Miscellaneous Gain/Loss on Sale of Assets Total Miscellaneous Taxes & Fees Misc. Taxes & Fees Deferred Tax Expense Federal Income Taxes Total Taxes & Fees Total Operating Expenses Net Income
March Budget
YTD Actual
YTD Budget
99.39 80.00 298.17 240.00 826.75 827.00 2,480.25 2,481.00 128.59 130.00 385.75 390.00 ------------------------ ------------------------ ------------------------ -----------------------1,054.73 1,037.00 3,164.17 3,111.00
146.00 150.00 437.98 450.00 822.75 823.00 2,468.25 2,469.00 ------------------------ ------------------------ ------------------------ -----------------------968.75 973.00 2,906.23 2,919.00
24.46 200.00 134.88 600.00 ------------------------ ------------------------ ------------------------ -----------------------24.46 200.00 134.88 600.00
0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 0.00 0.00
0.00 0.00 0.00 0.00 ------------------------ ------------------------ ------------------------ -----------------------0.00 0.00 0.00 0.00
3,360.00 0.00 0.00 -----------------------3,360.00 -----------------------39,173.96 -----------------------4,909.42 ==============
0.00 0.00 0.00 -----------------------0.00 -----------------------44,985.18 -----------------------(405.18) ==============
3,360.00 0.00 0.00 -----------------------3,360.00 -----------------------66,173.59 -----------------------57,298.46 ==============
0.00 0.00 0.00 -----------------------0.00 -----------------------84,055.54 -----------------------49,684.46 ==============
Credit Union Service Centers, Inc.
TO: CUSC, Inc. Board of Directors FROM: Larry Rodriguez REF: Management Report DATE: August 11, 2011
Transaction Reports and Change Fund Report March and April Transaction Reports are included in the Board packet. Network Development Management would like to again welcome Monte Hill as the newly elected Director of the CUSC Board. Interest continues to generate with non-participating credit unions and acquirer interest from participating credit unions. TVA CU has shown interest and continued discussion with Azalea City CU in joining the AL network. In May 2011 the CUSC, Inc Board approved the new mobile branch of Alabama CU. Management continues to work with AL CU, CO-OP, and EPL to get this mobile branch setup and live in the event of a disaster. The South & Central AL Issuer/Acquirer training class went very well. There were about 50 attendees with about 15 credit unions represented. CO-OP Regional and Alabama policies and procedures were reviewed with credit union staff. Tameka has completed a total of 16 one on one credit union training classes from February to July 2011. Due to the July 2011 Reg CC changes CUSC Management will be adjusting the In-state check policy accordingly. CO-OP Shared Branching Update CO-OP Shared Branching will implement revised national network rules that will go into effect August 15, 2011. All Alabama issuers/acquirers have been notified of the upcoming new rules. We look forward to training all member Credit Unions on the changes/additions to the national network rules.
Credit Union Service Centers, Inc. Investment Policy Statement of Purpose The purpose of this Investment policy is to establish guidelines from which cash held and maintained by Credit Union Service Centers shall be managed. The management will solicit input at least annually from the Treasurer and Board of Directors on the existing cash balances, expected operating needs and how best to invest any excess balance. It is the intent of the Board of Directors to manage this cash in a way that creates the best benefit to the Credit Union Service Centers and adheres to established federal deposit insurance guidelines. Investment Authority By approving this policy management is authorized to implement the Investment Policy described below and as recommended by management and to execute all investment transactions within the policy guidelines. As we recognize that cash and investments are an integral part of the success of Credit Union Service Centers, management will seek professional investment advice as needed to assure that all cash assets are being invested properly. Priority of Investment Guidelines As cash becomes available, the following sequence of investment objectives will be followed:
Level 1 - will be to maintain an operating account that best fits the short term liquidity needs of Credit Union Service Centers. All operating cash will be retained in an interest bearing checking or savings account in one of the approved institutions listed in the table at the end of this document. Maximum cash levels for this purpose are defined as three months of average operating expenses from the preceding year. This would include patronage refunds/dividends and estimated income tax payments as part of these operating expenditures Level 2 - As cash balances exceed the “operating cash” needs per Level 1, Credit Union Service Centers will invest in short-term CDs in the approved institutions listed below. These investments will use a ladder approach using 3 month, 6 month, 9 month and 12 month CDs. Level 2 maximum cash balances are defined as 65% of net assets less the Level 1 cash balances. Level 3 - Once short-term investment goals are reached under level 2, and as cash flow allows, Credit Union Service Centers may purchase investments that limit exposure to moderate risk with a higher degree of return in the long-term. These long-term investments will adhere to the following guidelines: o Investment maturities shall not exceed two years. o Investments will be made with laddered maturities up to 2 years in equal increments. This will help reduce the risk of cash shortages, smooth out cash inflows and make expansion and larger scale projects more manageable in the future. o U.S. Treasuries and Agencies will be held in safekeeping by a Board approved corporate credit union or investment firm. o All investments made under the guidelines of Level 3 must be approved by the Treasurer or the Chairman of Credit Union Service Centers.
Approval of Investment Firms or Corporate Credit Unions 1
Investment firms and/or corporate credit unions shall be approved by the Board of Directors to conduct business with Credit Union Service Centers. Once approved, the Board will annually review them to ensure that they continue to meet the requirements. Approval for corporate credit unions requires the following:
Corporate rated A1 by Standard & Poors. Should a corporate drop below the A1 rating; no new investments may be made with that corporate unless approved by Credit Union Service Centers.
Audit Trail Investments will usually be handled by telephone or e-mail. Corresponding confirmation and verification must be received and maintained in the Credit Union Service Centers offices. All wire transfer notices initiated by the Credit Union Service Centers will be subsequently reviewed and approved by the Treasurer of the Credit Union Service Centers. Credit Union Service Centers checking account will be acknowledged in writing by approved institutions as the only receiving account to which Credit Union Service Centers funds shall be remitted or made payable. Credit Union Service Centers checking account depository shall acknowledge in writing that only institutions identified in writing over the signatures of at least two of the following: Chairman, Treasurer, and Vice-Chair shall be a recipient of outgoing wires. All investments and holdings will be audited at year-end for accuracy and confirmation letters will be sent to all approved investment firms and corporate credit unions. Report to the Board Management will provide the Board of Directors with a monthly report (if investments exist) listing all investment vehicles by name, yield, amount and maturity date.
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CREDIT UNION SERVICE CENTERS, INC. POLICY GUIDELINES TYPES OF INVESTMENTS CASH
SHORT-TERM
LONG-TERM
Term
On Hand
Up To 1 Year
Up to 2 years
Exposure to Risk
Extremely Low
Very Low
Low
Authorized Types
Interest Bearing Checking Accounts and Savings Accounts
Corporate Credit Union CD’s, Natural Peron credit unions and FDIC Insured Banks “A1” rating or better for the Financial Institution.
Ratings
NCUA Insured
Timing Of Maturity
N/A
Due within 12 months
Approved Investment Firms & Corporate Credit Unions
3
U.S Treasury Notes & Bills U.S. Agencies
“A” rating or Better for the Security Smooth-out maturing investments over 2 year period to provide more consistent cash flow