Lehigh Valley FCU & AARP Pact Produces Successful Tax Season
April 15 brought an end to tax season and concluded an arrangement between Lehigh Valley FCU and AARP. The credit union provides the use of its board room to AARP volunteers to prepare tax returns for members and non-members for four hours each Thursday. This year, the service was so successful that reservations were closed by mid-March, and dedicated volunteer tax preparers continued to process returns until 5:00 p.m. on April 15. More than 135 tax returns were completed through this service.
The credit union has already agreed to provide space for AARP for the 2011 tax season. However, next year, additional hours will be available, as the board room will be reserved for all day Thursday, from early February until April 15.
VITA Participation Totals
If your credit union participated in the VITA program, by donating time and trained tax preparers or by offering space for volunteers to prepare taxes, please share details and results of the recent tax season. Send your info to highway@pcua.coop.
Financial Counselor Certifications Issued
Amy Swonger, an MSR for MEADVILLE AREA FCU and Erie Chapter Youth Ambassador, recently earned the designation of Certified Credit Union Financial Counselor through CUNA.
Swonger was one of 28 credit union professionals throughout the country who earned the designation following CUNA’s Certified Financial Counselor School held in Boston, March 14-18. Throughout the four-day school, attendees learned the knowledge and skills needed to work with members that have financial problems, and discovered ways to help them prevent and solve future financial conflicts.
To become a Certified Credit Union Financial Counselor, participants must either attend CUNA’s Certified Financial Counselor School: Part I & II, or complete the self-study Credit Union Financial Counseling Certification Program (FiCEP) Module.
Association Volunteers Clean Up Highway
As part of its community service program, the Association participates in Pennsylvania’s Adopt-A-Highway program. The Association is responsible for the interchange of Rt. 22-322 and Linglestown Road (Rt. 39). The first clean-up for 2010 was conducted on Saturday.
The internal program is coordinated by Sandy Shenk, PaCUSC State Coordinator. Litter is picked up four times during the year: April, June, August, and October.
Knock On Wood …
Are you taking the “knock on wood” approach to stopping counterfeit checks presented at your financial institution? Still thinking the criminals won’t be at your front door tomorrow? Then take a look at the startling facts provided by the Financial Crimes Enforcement Network's recent SAR Activity Review-By the Numbers report:
Mid-year numbers for 2009 indicate a shifting focus of suspicious activity reports (SARs) with a 19% increase in check-fraud reports and a 36% jump in counterfeit check SARs filed by credit unions and other depository institutions.
“Knock on wood; we don’t have that problem here.” What you’re really saying is you think your current situation is under control and are hopeful you won’t get stung in the future. Are you doing everything you can today to protect your credit union from the growing problem of counterfeit checks?
Advanced Fraud Solutions (AFS) can help. Contact your Association Account Executive to see how an AFS solution can benefit your credit union.
Youth Week News
ARC FCU, Altoona, concluded Youth Week with a visit from the Altoona Curve’s mascot, Diesel Dawg. On Saturday, children enjoyed pizza and refreshments at ARC’s 7th Avenue branch while they hung out with Diesel Dawg. Other events throughout the week included a coloring contest and the National Saving Challenge. Throughout April, ARC supplied Quarter Saver Books to Kid’s Club members to encourage saving at a young age. During Youth Week only, any Quarter Saver Book deposit was matched, up to $5. ARC had a great response to Youth Week this year, opening 49 new Kid’s Club Accounts.
Erie Community Credit Union kicked off Youth Week by hosting a live radio remote on Saturday, April 17, with Bob FM. Youth were encouraged to stop by and toss their way to some fun prizes and register to win a sports themed basket. During Youth Week, sports-themed displays were set up at both branches. The credit union opened 23 new accounts and young members made 185 deposits totaling more than $20,000. Staff also visited Erie Insurance (a select employer group) for “Bring Your Kid to Work Day” on Thursday, April 22. The kids took turns tossing their way to some fun prizes, including ITunes gift cards, cash, candy, and a variety of other gift cards.
PALCO FCU, Muncy, got in the savings game for Youth Week by playing PLINKO. Every youth member that made a deposit into their account during the week played PLINKO for a chance to win a prize, including pictures of Hines Ward and Mike Mussina, $25 Dicks Sporting Goods gift card, or a sporty toy from the treasure box. A penny guess game was held with the winner receiving a sports bag filled with sports items. In addition, staff assisted children in filling out free child safe kits (provided by American Income Life) by taking fingerprints and DNA samples. PALCO paid the $5 membership fee for any new youth accounts opened during youth week. A hot dog sale raised $63 for the Special Olympics PA Lycoming County.
A complete wrap-up of Youth Week activities and photos will be published in the May 14 issue of Keystone Extra. There's still time to send your information to highway@pcua.coop.
Newsmakers
Newsmakers
The headquarters building of American Heritage FCU was transformed into The Grammys on Wednesday, April 14, as part of the credit union’s annual Employee Appreciation Day. The management team greeted staff dressed as Musical Artists, including Kiss, the Beetles, and Prince, while the employees received a gift bag containing a new credit union shirt and other goodies. The entire staff was divided into five teams and competed for prizes. Employees enjoyed Grammy trivia and word scrambles throughout the day, with Karaoke and a Guitar Hero contest during lunch. Management also cooked and served the employees lunch.
Cross Valley FCU, Wilkes-Barre, recently honored employee service milestones at its 2010 Annual Meeting. Board Chairman Richard Shields presented eight staff members with awards for their devotion and longevity to the credit union. Together these eight staff members represent 65 years of service: Five years – Kim Ermish, MSR; Liz Mack, MSR; Linda Moran, MSR; Colleen Phillips, VP of Marketing; Bryan Powell, AVP of Info. Tech; and Cheryl Tigue, Head Teller; 10 years – Dave Reed, VP of Lending; and 25 years – Lauren Dudick, Branch Manager.
Freedom Credit Union, Warminster, held its second Try Paperless! Sweepstakes, which ran during March, and featured a chance for 75 members to win $50 each. All paperless members were automatically entered to win, and winners were randomly chosen. During the period, 1,472 members made the conversion to paperless, bringing the credit union’s present paperless member count to 7,555. Freedom’s Tellers and MSRs helped 797 of those members make the switch during the Sweepstakes period. Members could also log on to Freedom’s website, www.freedomcu.org, and elect e-statements through Online Banking.
Lebanon FCU was the exclusive sponsor for the United Way of Lebanon County's Day of Caring held Saturday April 24. This year, more than 1,200 volunteers took to the street and to the 35-plus non-profit agencies to give their time, talents, and resources to make Lebanon County a better place.
National News
National News
CUNA summary: Recent UBIT cases could help CUs challenges
WASHINGTON (4/27/10)--According to a recent memo, state-chartered credit unions that are subject to unrelated business income tax (UBIT) may now "have a good defense against civil tax penalties" that the U.S. Internal Revenue Service (IRS) could try to impose on credit unions that do not declare UBIT due on income from the sale of credit life and disability insurance, Guaranteed Asset Protection coverage, and other financial products.
Credit Union National Association (CUNA) executive vice president and general counsel Eric Richard said that the memo, which was prepared at the request of and with the support of the UBIT Steering Committee, "should be helpful to credit unions in having a dialogue with their outside auditors about what, if any, UBIT liabilities need to be accounted for in their financial statements and in their tax filings."
The UBIT Steering Committee is comprised of CUNA representatives and members of the American Association of Credit Union Leagues, the National Association of State Credit Union Supervisors, and CUNA Mutual Group.
According to the memo from the law firm Foley & Lardner LLP, the recent decisions in federal court cases involving Bellco CU and Community First CU may give other credit unions "substantial authority" sufficient to not pay UBIT on sales of these products without being subject to tax penalties for maintaining a frivolous tax law position. Services such as mutual funds, stocks, and annuities, as well as income qualifying as "royalties," such as from a third-party vendor's sale of accidental death and dismemberment (AD&D) insurance policies to members, are also addressed by this decision.
In the U.S District Court for the District of Colorado, Judge Christine M. Arguello earlier this month ruled that Bellco CU's income derived from credit life and disability insurance, sold directly or indirectly, as well as royalty income from AD&D insurance should not be subject to UBIT. Arguello's ruling supplements a 2009 summary judgment ruling which found that Bellco CU's commissions from a vendor's sales of financial products and services such as stocks and annuities to its members were "substantially related" to its tax-exempt purpose and so therefore not subject to UBIT.
For a more thorough analysis of the Bellco ruling, use the resource link.
UBIT Memorandum
Eyes on reg reform debate's chances in Senate this week
WASHINGTON (4/27/10)—While the U.S. Senate on Monday did not approve officially beginning debate on financial regulatory reform, with a cloture vote failing, Senate leaders will continue to negotiate portions of the bill and will push to begin debate this week.
S. 3217, the Restoring American Financial Stability Act, would affect the credit union system by limiting the National Credit Union Administration's (NCUA) regulatory authority to credit unions with under $10 billion in assets. The regulatory reform package would also address many issues facing the broader financial services industry.
The Credit Union National Association (CUNA) has lobbied Congress not to limit the NCUA's oversight of credit unions, regardless of asset size. CUNA has also asked legislators to narrow the legislation's definition of remittances. CUNA is concerned that the current "overly broad" definition would essentially make it impossible for credit unions to continue to offer any form of international electronic fund transfer services to their members.
The Senate may debate a Food Safety bill if the regulatory measures are not brought to the floor this week.
Several hearings are also scheduled this week, with the House Financial Services Committee setting up markups of legislation that would alter the National Flood Insurance Program, among other items.
The House Judiciary Committee will also address financial issues on Wednesday by holding a hearing on H.R. 2695, the Credit Card Fair Fee Act of 2009, with the Electronic Payments Coalition, of which CUNA is a member, set to testify. H.R. 2695, which was offered by Reps. John Conyers Jr. (D-Mich.) and Bill Shuster (R-Pa.) last year, would permit merchants to negotiate fees with financial institutions via an antitrust exemption.
The House Financial Services Committee will also be busy on Wednesday, with various subcommittees holding hearings on legislative proposals to preserve public housing, reviewing the Financial Crimes Enforcement Network oversight reports, and promoting small enterprises in Haiti.
The role of banks and the U.S. Treasury in the housing market will also be discussed in a Senate Committee session this week.
Vt. card acceptance bill would endanger CU programs, league says
BURLINGTON, Vt. (4/27/10)--Association of Vermont Credit Unions (AVCU) President Joe Bergeron was among the first to testify Wednesday in front of the Vermont House Commerce Committee regarding a controversial credit card acceptance bill.
The bill, S. 138, would endanger how and where Vermont credit union members' credit and debit cards are accepted, AVCU said. Bergeron and Department of Banking, Insurance, Securities and Healthcare Deputy Commissioner Tom Candon testified, along with the primary representative of the Electronic Payments Coalition (Newslines Express April 23).
On Thursday, Vermont State Employees CU President/CEO Steve Post and New England FCU chief financial officer Sue Leonard also testified in favor of credit unions. They focused on the potentially detrimental effects of S.138 on their cardholders and credit union card programs.
"In line with testimony provided by Candon and me [Wednesay], Post and Leonard referenced the negative effects of possible surcharging by merchants, negativity of minimums and maximums, and unreliability of card functionality if S.138 is passed," Bergeron said in AVCU's newsletter. "Also referenced were the burden card issuers bear resulting from data breaches occurring at merchants and processors, and resultant fraud."
Of special note was testimony by MasterCard's Vice President of State Governmental Affairs Rich Santoro, whose participation Bergeron specifically requested.
"Visa and MasterCard are the primary recipients of much of the opposition's criticism and claims that network rules and interchange are restrictive, unfair and detrimental to small business," Bergeron said. "Taking the witness chair was a bit of an unknown that ultimately seemed to work out favorably."
All parties emphasized that the bill's verbiage would permit minimums and maximums on card purchases, and surcharging at different amounts on different types or brands of plastic, and perhaps differently by location. Although it was apparent at the start that legislators were confused by the interpretation that S. 138 would permit these practices by merchants, by the end of testimony there appeared to be agreement on the need for clarification, AVCU said.
Bergeron said a vote could be expected on the matter today or Wednesday, depending on floor actions.
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