December 13, 2013
Friday Edition
NCUA approves final charitable donation account rule

CUNA News Now reports that a final rule on charitable donation accounts has been approved during the NCUA open board meeting.

Under the final rule, credit unions will be permitted to invest in hybrid charitable and investment vehicles known as charitable donation accounts (CDAs). These CDAs will allow federal credit unions to make investments that are otherwise prohibited, provided that the proceeds are primarily for charitable purposes.

The rule includes a CUNA supported change that limits total investment in CDAs to five percent of the credit union's net worth for the duration of the account. A minimum of 51 percent of the total return from such an account would have to be distributed to one or more qualified charities. Distributions could be made to qualified charities no less frequently than every five years and when the account terminates.

CUNA Deputy General Counsel Mary Dunn said there is no requirement that a trust vehicle be used but if it is, the trustee must be regulated by the Office of the Comptroller of the Currency, Securities and Exchange Commission, or other federal or state agency. "We will be talking more with NCUA about this," she said.

Here is a full CUNA summary of the NCUA board meeting including a proposed rule that one board member voted against.

Return to Top
League board of directors hosts retiring NCUA Region III Director

LSCU & Affiliates board of directors hosted retiring NCUA Region III Director Herb Yolles in the Birmingham office Thursday. During his remarks, Yolles said that one of his biggest pieces of advice to credit unions is not to be stuck in the past. He cited that of the nation’s 6,620 credit unions 1,869 (28 percent) have posted a net loss as of the third quarter and he worries that some of those are stagnating and not providing services that are relevant to Gen Y and millennial consumers. “They are all about gadgets and electronics,” said Yolles as he encouraged credit union investment in technology.

Yolles shared that Interest Rate Risk and ALM will continue to be the top exam priority for the agency in 2014 and that Internal Controls and Audit will be a close second. He said that exams will be more focused on fraud and the systems that credit unions have in place to detect fraud. According to Yolles, 70 percent of losses come from fraud.

He talked about the agency’s reliance on CPA audits and cited three credit union failures in Cleveland that were in large part due to a non-reliable CPA audits. He said that the agency can no longer trust CPA audits as they have in the past. He cautioned that all audits should contain a reliable independent verification of assets, verification of member accounts, and a comprehensive evaluation of internal controls. Yolles also said that his number one choice for auditors is auditing services provided by leagues, including LEVERAGE's CU Audit and Compliance.

The board also hosted a dinner for Yolles, who officially steps down Dec. 31, Thursday night. Myra Toeppe will succeed Yolles on Jan. 1. Read a Q&A with her in the next edition of Signal magazine later this month.

Return to Top
WOCCU looking for nominations

World Council of Credit Unions (WOCCU) is looking for 2014 Distinguished Service Award nominations.The award honors individuals and organizations that have provided outstanding service to credit union development outside their home country. It is the international credit union system's highest honor.

"Since 1986, World Council has recognized key players in advancing the international credit union movement to where it is today through the Distinguished Service Award," said Brian Branch, World Council president/CEO. "The recipients each year remind us how important it is to extend financial access to people who need it most-not just at home, but around the world."

The award is not an annual honor, rather it is presented based on the proven achievements and worthiness of candidates according to the award committee's review. World Council presents up to one institutional and three individual awards in a single year. This year World Council will provide each DSA recipient with a complimentary conference registration and one companion registration for the 2014 World Credit Union Conference in Australia.

Nominations must be made by a WOCCU member organization. They are due Monday, March 3, 2014. Visit WOCCU's website to download a brochure and nomination form.

Return to Top
CU happenings

First Commerce Credit Union in Tallahassee observed E-Month (Enterpeneurship Month) by raising money for the FSU College of Business with the Power Forward Speaker Series. First Commerce presented a check for $5,526 from the proceeds of the first event in the Power Forward Speaker Series, which featured Barbara Corcoran of “Shark Tank” fame.

In support of Small Business Saturday and to welcome the Christmas season, San Antonio Citizens Federal Credit Union purchased gift certificates from local merchants in San Antonio, Dade City, and Zephyrhills (its branch locations). Dressed as Santa’s Helpers they gave away one each hour on Black Friday to members as they entered each of the credit union offices. 

America's First CU VP of Public Relations and Sales Phil Boozer, right, poses with Auburn football coach Gus Malzhan at the TV 24 All-Star banquet. The Birmingham-based credit union has helped to sponsor the banquet for eight years. Each year TV 24 picks the best high school football players in the area. Malzhan spoke at the event just days after winning the SEC title game and securing a spot in the national championship game.


Return to Top
In This Issue
Friday Edition
NCUA approves final charitable donation account rule
League board of directors hosts retiring NCUA Region III Director
WOCCU looking for nominations
CU happenings
LSCU & Affiliates Media


LSCU & Affiliates YouTube Page
Subscribe today to the LSCU & Affiliates YouTube page to stay connected to the League. You will be updated when new videos are posted.


The Disclosures
"Thank My Piggy Bank"

Upcoming League Events
Dec. 17 Reg E vs ACH Rules
Dec. 18 Questions Board Members Need to Ask
Jan. 8 Managing E-Sign/Statements/Disclosures
Jan. 9 Dormant Accounts/Unclaimed Property
Jan. 14 Real Estate Collections/CFPB Servicing
Follow Us

 
© Copyright, League of Southeastern Credit Unions & Affiliates
Phone: 866.231.0545
3773 Commonwealth Blvd | Tallahassee, Florida 32303
22 Inverness Cntr Pky, #200 | Birmingham, Alabama 35242
To ensure delivery, please add 'submissions@lscu.com' to your email address book or Safe Sender List. If you are still having problems receiving our communications, see our white-listing page for more details.

To safely unsubscribe from this group, click here.
Home Action Center Contact Us CU Job Center Forward to a Friend Back Issues Twitter Facebook YouTube