August 2009 - Montana Credit Union Network

August 2009
Working Together to Make a Difference
CREDIT UNION PHILOSOPHY
Credit Union PHilosophy
Rural Montana Saves
CUre Card Project
pg 3
pg 7
pg 14
editorial & reports
From My Perspective
It may sound like an understatement, or it may
sound overused, but is there a more critical time for
utilizing, leveraging … or living the “Credit Union
Philosophy?” In a word, no.
cover story
The Principles Behind
CU Philosophy
page 3
Rural Montana Saves
IDA Program
page 5
Compilance Philosophy
Casserole
page 7
MCUL Health
Insurance Trust
page 9
CUre Card
Interview with
Brandi Melo
page 14
~ In Each Issue ~
page
Cover Story. . . . . . . . . . . . . . . . . . 3
Philosophy in Action. . . . . . . . 4,5
For Your Dues. . . . . . . . . . . . . . . 6, 7
League Service Group. . . . . . . . 8, 9
TSCCU Update . . . . . . . . . . . 10, 11
CUsource Update. . . . . . . . . . 12, 13
Recognition. . . . . . . . . . . . . . . . . 15
Chances are, if you’re reading this, you know what
CU Philosophy means. Most of us are aware of the
motto “people helping people,” but, credit union
philosophy goes beyond those impressive words. Because, while credit unions play such a critical role in
promoting economic growth, they also have a role in
promoting ethical values, which have been severely
challenged during this economic calamity.
That to me is our center, who we are … by the very
nature of our credit union principles and values we
are guided to do what is right. Meaning that we do
what is best for our stakeholders, our employees, the
environment, the communities in which we work,
and our members. By the means we use to conduct
our everyday business practices, we are acting in a
socially responsible manner … we are having a social
impact. The concern we hold for our communities
Beth Satre
Editor and Design/Layout
Photographer
Editorial Board
Tracie Kenyon, Tabitha Garvin,
Tracy Houck, Steve Howke,
Donya Parrish, Bob Pyfer,
Jeanne Saarinen, Karen Smith,
Ranel Smith, Tracy Thornburg
2—network news
These tenets or, in
orther words, cooperative principles
Tom Decker
and values are part
of the foundation of
the Credit Union Development Education Program.
The CUDE Program teaches the critical importance
of adherence to these principles and has been doing
so for over 27 years. This also means that the DE Program is instructing credit union people to be socially
responsible…to do work that has a social impact and
to live and breathe credit union philosophy.
As the National Program Director for the National Credit
Union Foundation’s CU Center for Social Impact
Management, Tom Decker oversees the Credit Union
Development Education (DE) Program.
T.K.O. (Tracie–Kathy–Outstanding!)
Tracie: Welcome Kathy (and readers) to our new
column—TKO!
Kathy: It’s absolutely
perfect for us …
Tracie: The “O”
could also stand for
“outrageous.”
Kathy: Or “over-the-top.”
Network News
Publication Staff
is intrinsic to our
business philosophy and the tenets
upon which we were
founded.
Tracie: That’s exactly how I feel! Can you tell me
one story that really sums up philosophy in action
for you?
Kathy: I have so many stories that
it’s hard to pick just one!
Tracie: I’ve heard the story about
you performing CPR on a member that collapsed in your office.
Kathy: Now that was scary. Let
me share with you one of my
Kathy: And it’s just
favorites—we have a member who
our first column … this
lives out-of-state and was buying
could be trouble …
a car. His down payment was deposited in the credit union, but he
Tracie: Or just orneriKathy Shea and Tracie Kenyon
was
(sadly!) using a national bank
ness! (Get it, another “O”
for the loan. Per his request, one of our employees
word?)
(Bev) took his deposit out of savings at the credit
Kathy: (Giggle) … what’s the theme this time?
union and deposited it in his bank. All this during
Tracie: We’re talking Credit Union Philosophy!
her lunch hour!
Tracie: We digress …
Kathy: Thanks for picking a theme that I can jump
right into! I’ve been involved with credit unions for
25 years now and love our unique philosophy.
Tracie: Wow—that’s credit union philosophy! Helping a member even when they’ve decided to use another institution for their loan.
Cover Story
The Principles Behind CU Philosophy
Cooperative values include self-help, self-responsibility, democracy, equality, equity, and solidarity.
Cooperative members believe in the ethical values of
honesty, openness, social responsibility, and caring for
others. Cooperative principles are guidelines by which
cooperatives put their values into practice.
Cooperative Principles Specific to Credit Unions
Because credit unions have their own rich history
and area of operations, they have expanded on these
“basic” cooperative principles. The preamble to the
International Credit Union Operating Principles (see
the box on the right) lays out the basic values behind
credit union existence and operations.
Credit union operating principles fall into three main
areas: Democratic Structure, Service to Members, and
Social Goals. Below are short overviews of these areas.
Democratic Structure
Credit unions are democratic, member-owned financial cooperatives. Each member, regardless of account
size in the credit union, may run for the board and
cast a vote in elections. As financial intermediaries,
credit unions finance their loan portfolios by mobilizing member savings and shares rather than using outside capital, thus providing opportunities for generations of members. Credit unions are non-discriminatory on all grounds, including politics. Credit unions
enjoy bipartisan support. This helps ensure that people
will continue to be able to choose not-for-profit financial cooperatives as their financial service provider.
Service to Members
A core principle of credit unions is to “encourage
thrift through saving” and to provide services that
“improve the economic and social well-being of all
members.” Montana’s credit unions excel in this
regard, whether it’s helping members balance their
checkbooks or offering special products like the
“Wealth Builder Account,” which encourages building savings or small, short-term loans that function as
alternatives to payday loans.
One of the reasons credit unions are so good at member service is the basic belief that any “surplus arising
out of the operations of the credit union…belongs to
and benefits all members with no member or group of
members benefitting to the detriment of others.” This
model is arguably the opposite of many of the practic-
es that created the economic upheaval of the past year.
Although credit unions are not for profit, they are also
not for charity—credit unions have a fiscal responsibility to their members. Building financial
International CU Operating
strength while adhering
Principles Preamble
to all of the cooperative
principles is the key.
Social Goals
This area of the operating principles addresses ongoing member
education, cooperation
among cooperatives,
and social responsibility. Education goes beyond helping the member with their financial
situation. Our founding
principles include education not only to members but to the general
public on the principles
of credit unions.
The[se] principles are founded
in the philosophy of cooperation
and its central values of equality,
equity, and mutual self-help,
recognizing the varied practices in
the implementation of credit union
philosophy around the world. At
the heart of these principles is the
concept of human development and
the brotherhood of man expressed
through people working together to
achieve a better life for themselves
and their community.
With 100% affiliation,
cooperation among
credit unions is clearly alive and well here in Montana.
Individual credit unions have also forged many strong
partnerships to make their community a better place.
For example, five credit unions are working together
to sponsor free tax filing sites in Butte; four credit
unions in Missoula and three in Helena are partnering to bring matched savings accounts to women survivors of domestic violence; and the credit unions in
the Midland Empire Chapter are pooling resources to
provide financial education classes in Billings.
These three, along with the many, many, other examples of credit unions working for their members
and also for their larger community, underscore the
importance that Montana’s credit unions place on
having their day-to-day operations reflect these guiding principles. Their cooperative structure and the
level of cooperation between credit unions facilitates
that effort; and, as the world changes, credit unions
can continue to rely on these timeless principles to
shape their, their members’, and their communities’
ongoing success.
network news—3
Philosophy in action
www.MontanaFreeFile.org
free tax filing awareness campaign sees astronomical growth
Who: MontanaFreeFile.org is a collaborative effort of
Montana Credit Unions for Community Development, Montana Legal Services Association, Rural
Dynamics Inc., and the Montana
Department of Revenue.
WHAT: MontanaFreeFile.org is a “one-stop”
website for Montanans seeking free tax
assistance. It lists local VITA and AARP
sites across Montana run by trained and
certified volunteers, as well as free on-line
“do-it-yourself” tax filing programs. Project partners fund a radio and television
public awareness campaign during tax season.
WHEN: The project began in 2006, and since then has
seen unprecedented growth—from 2,306 visitors in
2006 to 46,459 visitors this year!
Overall Visits to MontanaFreeFile.org
2008–09
46,459
2007–08
27,717
18,757
2006–07
2,806
2005–06
0
WHERE: Television and radio public service announcements ran state-wide educating Montanans on free
tax filing services and the MontanaFreeFile.org website. Across Montana the television PSA aired 8,989
times and the radio PSA aired 17,422 times during
tax season.
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
WHY: The free tax filing services listed on MontanaFreeFile.org are directed to low to moderate income
Montanans that can least afford a paid tax preparer.
Plus, if a free tax service is used, the taxpayer will
avoid the temptation of a high-cost refund anticipation loan at chain tax preparation companies. And,
finally, visitors to the website also learn about
Montana’s credit unions.
The campaign is paying off—usage of free tax
filing services has increased each year since the
campaign began. For example, the number of
Montanans using VITA and AARP sites increased from 8,851 in 2007 to 12,835 in 2009. The
number of Montanans using I-CAN EFILE (a
free on-line tax filing service in partnership with
Montana Legal Services) increased from 1,389 in
2007 to 6,165 in 2009.
Thanks Michael!
MCUCD Fundraisers!
Michael Park, an AmeriCorp*VISTA member who has
been working on MCUCD’s BSAFE Project in Missoula,
finished his year of service in July.
Thank you so much to everyone who participated in one of the
three fundraising events held during this year’s Annual Convention—MCUCD raised $12,970 for its programs!
Michael is pictured above on the far right after the Missoula Family Violence Council presented BSAFE with
an award this past spring. Joining him are Karen Smith
(MCUCD); Cindy Weese (Missoula YWCA); Chris Sisco,
Alita Billington, and Shawna Cowan (Montana 1st CU);
Kelly Hart (MT Legal Services); and, finally, Tina Schmaus
(Missoula Job Service).
The CUsource Charity Classic raised $6,000 (thank you
CUsource for paying the greens fees for all the golfers!), the
Balloon Hunt raised $610, CUNA Mutual Group’s Signs of
True Commitment raised $500, and the Silent Auction raised
$5,670. Overall the fundraising increased over 14% from last
year—proving that even in tough times, credit union people
have a giving heart!
4—network news
For more information on
BSAFE check out the web
site www.mtbsafe.org.
For a list of fundraiser contributors, go to MCUCD’s website
at www.MontanaCreditUnions.coop.
HOW: MCUCD’s
participation in
MontanaFreeFile.
org is made possible
by funds raised
through the Community Investment
Fund (see related
article on page 11).
Thank you to all
CIF investors for
making this beneficial public awareness campaign possible during the last
four tax seasons.
philosophy in action
Rural Montana Saves by Bruce day
It is amazing what dreams can be achieved with just
a little help. We get to witness such achievements
often at Rural Employment Opportunities. I think
about the single mother who completed a nursing
degree, went to work, and has significantly increased
the financial security of her family. Meanwhile, she
continues her nursing education with the goal of
increasing her employment prospects. It is just one
example of a personal dream realized through Rural
Montana Saves, a unique
personal development
program that started
three years ago.
Program Impact
The collective success of Rural Montana Saves is
evident by considering just a few pieces of data from
the first three years. Forty-eight individuals received
career planning services and opened an account with
a local credit union. Together, they made deposits
of almost $18,000 and qualified for a collective savings match of $100,000 and more than $73,000 was
expended on qualified education or career training.
Forty-eight participants received some financial education and counseling and more than 70% successfully completed their financial education course.
looking forward
Over the next 11 months, 100 qualified Montana residents will have a similar chance to seed and nurture
their own dreams as they take root and grow. This is
exciting! The opportunity is made possible, in part,
through funding from the Montana Department of
Public Health and Human Services. But the strong
partnership developed to provide Rural Montana
Saves participants with a blend of services and support is what gives the program heart and makes it
possible on a statewide basis. In addition to Rural
Employment Opportunities (REO), this partnership
includes Montana Credit Unions for Community
Development, the Student Assistance Foundation,
Montana State University–Extension and, importantly, local credit unions throughout Montana.
Credit Unions Contribute
The credit union role in services to Rural Montana
Saves participants is essential, and it goes beyond
providing account services for the Individual Development Accounts (IDA). Our experience during the
first three years has proven that when the connection
between Rural Montana Saves participants and their
local credit union is strong, it can have a big impact
on personal investment and progress. These connections are made
in a variety of ways—by taking an
interest in the participant’s financial
education, by assisting with credit
and budgeting, or by being the local advocate who will offer support
and cheers as a participant works
toward a goal. It’s something
that staff members of the local
credit unions can do in a way
that none of the statewide partner organizations can.
As we begin a new year with Rural
Montana Saves, we look forward
to enrolling a new “class” of participants. Eligibility requirements
and many program benefits have
changed. For example, participants will receive a three to one
dollar match on deposits they
make as part of the program—
paticipants can save up to $400,
which will then be eligible for a
maximum match of $1,200. They
will also have the opportunity to
access $1,200 in “quick start” payments for qualifying education or
job training expenses.
Many of the program features remain unchanged. Participants must
commit to making monthly or biweekly savings deposits of at least
$20, complete a financial education
course, participate in career counseling and maintain regular contact
with an REO staff member.
Program details are available at
www.montanacreditunions.coop.
ABOVE: Sarah Sommerfeld used her Rural Montana
Saves Individual Development Account to help her
complete her nursing degree. Below: Naomi Leifson,
REO’s Case Manager for Western Montana, explains REO’s
programs—including Rural Montana Saves—to a
potential participant.
Bruce Day is the Executive Director of Rural Employment
Opportunities (REO), a statewide non-profit organization
that provides education, employment, and training services
to individuals and families throughout Montana. REO is
online at www.reomontana.org.
network news—5
for your dues
Your Network Staff
Ask Compliance
Tracie Kenyon
Q: Do members have inspection rights if they ask for
President/CEO
[email protected]
Robert Coble
Program Support Coord., MCUCD
[email protected]
Clyde Dailey
Dir.–Government Relations
[email protected]
Tabitha Garvin
COO, Business Development
[email protected]
Kelly Johnson
Office Coordinator
[email protected]
Renee Lyman
Education Assistant
[email protected]
Donya Parrish
VP–Dues Supported Services
[email protected]
Bob Pyfer
General Counsel
[email protected]
Jeanne Saarinen
Executive Director, MCUCD
[email protected]
Beth Satre
Dir.–Communications/PR
[email protected]
Karen Smith
Dir.–Outreach Services, MCUCD
[email protected]
Ranel Smith
Education Services Director
[email protected]
a copy of our board minutes?
A: The short answer is yes, but there are conditions
and restrictions on the process depending on whether
your credit union is state or federally chartered.
Federal Credit Unions
NCUA adopted Part §701.3, effective November 2007,
detailing procedures for honoring requests for inspection of federal credit union records. The regulation
requires a FCU to allow inspection or provide copies of records, including board minutes, upon petition signed by 1% of the members with a minimum
of 20 and a maximum of 500 members. The petition
must state a “proper purpose for the inspection, that
is, a purpose related to the protection of the members’
financial interests in the credit union.” The petitioners must agree to pay the direct and reasonable costs
of inspection or copying, and the credit union must
respond to the petition within 14 days. If all or part
of the requested records will be withheld, the credit
union must explain the reasons.
The regulation prohibits disclosure of nonpublic
personal member information and information that
would violate employee privacy. The regulation also
prohibits divulging information that would cause
“predictable and substantial financial harm” to the
credit union, such as strategic, competitive, or proprietary information. Any such material would have to
be fully expunged from board minutes before release.
MCUN’s New Board of Directors
State Chartered Credit Unions
State chartered credit unions must look to state general corporation law at §35-1-1107, M.C.A. The statute states that: “(2) A shareholder of a corporation is
entitled to inspect and copy, during regular business
hours at a reasonable location specified by the corporation, any of the following records of the corporation
if the shareholder meets the requirements of subsection (3) and gives the corporation written notice of
the demand at least 5 business days before the date on
which the shareholder wishes to inspect and copy: (a)
excerpts from minutes of any meeting of the board of
directors …”
Subsection (3) specifies that “a shareholder may inspect and copy the records identified in subsection (2)
only if:
(a) The demand is made in good faith and for a
proper purpose;
(b) The shareholder describes with reasonable particularity the purpose and the records the
shareholder desires to inspect;
(c) The records are directly connected with the
shareholder’s purpose…”
A proper purpose under state law would have to be
in the overall best interest of the credit union and
not contrary to those interests. The credit union
could (and should) provide only those “excerpts” of
the minutes directly related to the proper purpose
stated in the written demand, rather than the entire
minutes. Divulging proprietary or strategic competitive information would not be a proper purpose
in the overall best interest of the
credit union. And any nonpublic
personal member information or
individual employee information
should be expunged to protect
individual privacy.
The Montana Credit Union Network elected a new
board of directors at their May meeting. Standing: Greg Strizich (Helena Community CU), Wally
Berry (Montana FCU), Bernie Neibauer (Russell
Country FCU), Tom Boos (Billings FCU), Bob
Bjelland (Fergus FCU), Leslie Hunter (Glendive
PE FCU). Sitting: Chris Sisco (Montana 1st CU),
Jeremy Presta (Park Side FCU), and Kathy Shea
(Heritage FCU).
6—network news
for your dues
Philosophy Compliance Casserole
philsophy in action is the recipe for success
Chair
Vice Chair
Tom Boos
Secretary
Greg Strizich
Credit union philosophy mixed with regulatory
compliance? At first blush these ingredients sound
about as compatible as ice cream and mustard. Fact
is, they are very closely interconnected and complementary in the organized credit union movement.
Credit unions intelligently leverage the value of their
dues dollars to avoid duplication and operate with
sound practices. The Montana Credit Union Network compliance hotline, TABs manual, webcasts,
regional training, and comprehensive member-only
Kathy Shea
Chris Sisco
Take one ounce philosophy, one ounce compliance. Mix
well. Add two heaping tablespoons cooperation. Bake at
medium high until golden and bubbling with success.
Trade Association
Just as credit union members band together to pool
their resources in order to serve each others financial
needs in the best “people helping people” tradition,
credit unions band together to support the leagues
and CUNA to serve their individual operational
needs. We are all well aware of the vast and ever
growing plethora of laws and regulations burdening financial institutions. Yet only credit unions have
the wisdom of cooperative philosophy driving sophisticated models of efficiency through their trade
associations.
League Board
Controller
Wally Berry
Director
Bob Bjelland
Director
Leslie Hunter
Director
Bernie Neibauer
Director
Jeremy Presta
Director
and credit
union lobbying, both
professional and grassroots, is unrivaled among the
various industries, thanks to the unwavering support
and participation by credit union people across the
state and nation.
Member Choice
Perhaps most remarkable is that credit unions have
not only maintained, but actually increased the level of cooperation after the
We are all too well aware of the vast and ever advent of overlapping fields of membership and competition between credit
growing plethora of laws and regulations
unions. Many of us remember the 1980s
burdening financial institutions. Yet only
and prior years when overlapping fields
credit unions have the wisdom of cooperative
were strongly discouraged. Generally,
a consumer could join only one credit
philosophy…
union and did not have a totally free
choice. Many felt that this was essenwebsite resources provide vital compliance support—
tial to the cooperation that made the movement so
a true testament to that cooperative philosophy.
strong in those days. Today, as much or more than
And, of course, compliance is not the only dues serany other state, Montana credit unions have adopted
vice driven by the credit union practical philosophy.
the community charter as the charter of choice, and
Numerous networking opportunities and educayet we also have one of the strongest leagues in the
tional events on a wide variety of pertinent topics
country. This clearly illustrates that cooperation isn’t
are provided. Public relations and media outreach
about regulatory restriction; it’s about a spirit.
enhance the credit union image. At the original core
of dues-based services is legislative and regulatory
The proof is in the pudding—philosophy in action is
advocacy. The League was created for this purpose,
the recipe for success!
LSG Board
Gerry Veis
Chair
Nancy Harris
Vice Chair
Ed Stofko
Secretary/Controller
Kathy Briggs
Director
Teri Krakowka
Director
Kathy Shea
Director
Chris Sisco
Director
network news—7
LSG Business
Partners
CO-OP Financial
Services
Counterfeit Cop
CUAdvantage
CU Auditing
CU Recovery
CU Succeed
CUNA Mutual Group
CUNA Strategic
Services
Empire Office
Machines
Fidelity Information
Services (formerly
Certegy)
ICUL Service
Corporation
John M. Floyd &
Associates
Mountain West
Benefits
PolicyWorks
Healthy You! Program
The Healthy You! Program started with a mission …
“To improve the health and well-being of Montana
credit union employees and their families by raising
awareness, providing information, and supporting
programs that promote healthy lifestyle choices.”
A healthy and happy workforce
offers numerous “wins” for a
credit union. The
Healthy You! program shows that
credit unions care
and appreciate their
staff, while lowering
employee absenteeism
and helping to control insurance costs.
This first year, Healthy You! is in its infant stages—
encouraging health awareness and activities as easy
as taking an online health assessment, engaging in a
walking program, or undergoing an annual screening. The concept is simple, has something for everyone, and offers fantastic rewards!
If a credit union is a participant in the MCUN Association Health Plan and achieves 50% participation (of
enrolled participants), it will receive a “premium holiday” in October. These credit unions will also receive
a 2% reduction in the standard base premium increase
when they renew their policy on January 1, 2010.
Many Montana credit unions have already adopted
the program, making it their own by offering individual employee incentives
and challenges. Program managers
can help show a credit union how
to adapt the program to their current situations.
Healthy You! Program managers
are looking forward to next year as
their “baby” moves into its toddler stage. Plans are
in place to help participants continue to learn, grow,
and take the steps to expand Healthy You! into an effort that changes the culture of their credit unions.
For more information about how your credit union
and credit union staff can benefit from the Healthy
You! Program, call Dara Anderson at Mountain
West Benefits (877-343-1060) or visit the Healthy
You! page on our website at www.mcun.coop/
Healthy_You_120.html.
Wolters Kluwer
Financial Services
IRS Changes use of Benefit Debit Card
Adding or
Reviewing
Services?
for quality
business
solutions
for your
credit union
call
Tabitha Garvin
800.745.5546 ext 132
[email protected]
8—network news
For many years, benefit debit cards have been a valuable asset to employees who participate in Flexible
Spending Accounts (FSAs). These cards allow participants to pay for health and medical expenses with
the swipe of the card.
retailers, such
as grocery stores and
discount stores, was limited to
those retailers who use an Inventory Information Approval System (IIAS).
The Internal Revenue Service has implemented
changes that modified how benefit debit cards can
be used. These modifications should make using
these cards a lot easier, but it is imperative to understand the rule changes.
As of July 1, 2009, healthcare-related retailers, such
as drug stores and pharmacies, must also implement
IIAS unless at least 90% of the sales at a particular
store are for medical care items.* If a drug store or
pharmacy depends on the 90% rule, additional substantiation requirements apply before a debit card
transaction will be final.
What has Changed?
As of January 1, 2008, participants were unable to
use benefit debit cards at every location selling or
providing health-related services and products. Instead, the use of benefit debit cards at non-healthcare
What is IIAS?
The IIAS software only accepts transactions that
are allowable for FSAs and health reimbursement
montana credit union league
Health Insurance Trust
Formed in 2007 as a cooperative effort by 24 credit
union organizations in the state, the Montana Credit
Union League Health Insurance Trust perfectly exemplifies the power of credit union cooperation. The
founding members hoped to use the Trust to build a
reserve, stabilize rate increases, and gain more control
over health insurance benefits.
Years two and three have been great for the Trust,
and those three goals are all being realized. We’ve
been able to build the reserves, obtain more benefits, and keep rate increases at lower levels. In addition, more credit union organizations have joined
the trust, bringing the total number of members up
to 30.
The Trust is governed by a five person board. Current
board members are
• Tracie Kenyon, MCUN, Chair
• Steve Grooms, 1st Liberty FCU, Vice-Chair;
• Ed Stofko, Rocky Mountain CU, Controller;
• Annamarie DeYoung, Sky FCU; and
• Rhonda Diefenderfer, Altana FCU.
Tabitha Garvin, COO of Business Development for
the League Service Group (LSG), coordinates all administrative services as the Trust Secretary. This group
arrangements (HRAs). When using the card with
an IIAS system, employees do not need to show
documentation or provide receipts to validate the
transaction.
Using the Card
The limitations imposed on retailers may cause confusion for people who purchase health-related items
such as bandages and cough syrup at retailers who
also sell non-health-related merchandise. Knowing
which retailers may accept benefit debit cards should
help reduce the confusion.
The following locations will accept benefits debit
cards after July 1, 2009:
• Healthcare, dental, and vision providers
• Retailers with the IIAS system
pays close attention to the
Trust, providing muchappreciated oversight.
The Trust also receives
services from several
businesses: LSG, administrative support; JCCS
of Great Falls adminisSteve Grooms (1st Liberty FCU), Tracie Kenyon (MCUN),
ters billing; Mountain
Annamarie DeYoung (Sky FCU), Rhonda Diefenderfer (Altana FCU),
West Benefits functions
and Ed Stofko (Rocky Mountain CU) serve on the board of the Montana
as the Trust insurance
Credit Union League Health Insurance Trust.
consultant, CUNA Mutual Group is the broker;
BlueCross BlueShield of Montana provides the insurance coverage; and Galusha, Higgins & Galusha of
Helena conducts an annual audit of the Trust. These
LSG services
businesses, working together, are keeping the Trust
on track and healthy, which benefits Montana’s credit
Human Resource
unions and their employees.
Management Service
Check out the article on the Healthy You! Wellness
Program on the previous page. Any credit union can
participate in the Healthy You! Wellness Program,
and almost all members of the Trust have opted to
participate. Maybe your credit union will be showcased at the System Conference on October 6-8, 2009.
• Healthcare-related retailers that have IIAS or
sell mainly medical care items.
Visit the website www.sig-is.org/en/resources/publications.asp to see a list of retailers who currently use the
IIAS system.
Stipulations
If participants choose to purchase health-related
items that qualify under FSA and HRA plans at
stores that do not have an IIAS system in place, they
may have to wait for additional substantiation for
the transaction to be final. Or, they may simply pay
for the expenses out-of-pocket and then file for reimbursement and send in a receipt.
For more information, contact your CUNA Mutual
Sales Executive at 1-800-356-2644.
Strategic Planning
Network Compliance
Service
NADA
Adding or
Reviewing
Services?
for quality
business
solutions
for your
credit union
call
Tabitha Garvin
800.745.5546 ext 132
[email protected]
network news—9
CEO Corner
It was approximately eighteen months
ago that the crisis in the credit markets started to pick up steam and
liquidity in the financial industry
started disappearing. At the same time,
credit unions began picking up the
slack in lending at a record pace while
other institutions were cutting back.
This, coupled with a decrease in confidence in corporate credit unions,
placed considerable strain on the corporate system
nationwide. This continued until January 28, 2009,
when it became apparent that potential investment
losses in the system were much greater than anticipated, prompting NCUA to initiate the Corporate
Credit Union Stabilization Plan (CCUSP). The
purpose of the CCUSP was to restore confidence
and stabilize liquidity in the Corporate Credit
Union system.
Steve Howke, President/CEO
Your TSCCU Staff
Steve Howke
President/CEO
(128
[email protected]
Sylvia Jackson
Director of Compliance
and Risk Management
(129
[email protected]
Tracy Thornburg
Director of Administration
and Operations
(139
[email protected]
Kara Connors
Financial Services Specialist
(137
[email protected]
Frances Calhoun
Member Service Representative
(125
[email protected]
Diane Halferty
Member Services Representative
(130
[email protected]
www.tsccu.org
10—network news
found a way to cooperate and provide the tools necessary to work through this financial mess. The processes and tactics employed by NCUA were vague,
confusing, and frustrating, to say the least, which
tested everyone’s patience and encouraged speculation and anger. The frustration and speculation
still continues. What is undeniable is the tools that
have emerged are invaluable, but the process used in
which they were forged was painful. It is also undeniable that the cooperative spirit between credit unions,
corporates, regulators, and members of Congress
have moved forward to provide stability for the individual members of credit unions. That is especially
true for Montana’s credit unions and Treasure State.
Once again, Treasure State thanks you for your continued support during these difficult times.
While NCUA’s actions were quick, confusing,
and frustrating, the tools that have emerged from
those actions have been very beneficial; especially
when U.S. Central and WesCorp were placed
into conservatorship on March 20, 2009. Liquidity and asset levels have stabilized in the corporate
credit union system as a result of NCUA’s actions,
increasing deposit levels in credit unions, and a
drop-off in loan demand.
Montana’s credit unions have continued to support Treasure State without blinking an eye. Even
during the most frustrating periods, deposits have
remained at record levels. Because of the continued and increased support of our membership,
Treasure State has been able to continue service
without missing a beat. The economic conditions
that exacerbated this financial crisis have somewhat leveled off rather than continue to spiral
downward. Unfortunately, economic recovery is
still in the future, and its speed is unknown. Uncertainty is the shackles of economic progress.
What is certain is that the cooperative spirit of
working together is what has avoided a total meltdown. Credit unions, corporate credit unions,
and yes, even NCUA, along with Congress have
Their money should find them!
Your members’ money should travel as far as their passports. With
Treasure State’s international payments program, you can provide them
the link to stay connected locally no matter where they are globally.
•
•
•
•
Guaranteed, competitive exchange rates
Low processing fees
Processing available in more than 90 countries
Experienced, service-oriented support
Safe, easy, low-cost ways to send your
members’ money internationally.
For comprehensive international payments services, contact
Treasure State Corporate at (800) 745-5546 or visit www.tsccu.org.
To view Treasure State’s exchange rates, go to
www.tsccu.org/international_wire_rates.asp
NCUA-Backed Community Investment Fund CD
Earn dividends while donating to MCUCD!
Consider becoming a shareholder in the Community Investment Fund (CIF). It not only
pays you a monthly dividend while donating
to MCUCD, your deposit will help reduce all
credit unions’ expenses for NCUA’s Corporate
Stabilization Program.
NCUA officials explained, “The more credit union funds placed in the corporate credit
union system, the less reliance there will be on
external borrowings ….”
If you haven’t already, join the award-winning
Community Investment Fund like your fellow
credit unions have. Call a Member Service Representative at Treasure State today.
When asked what natural person credit unions
can do to support Corporate Stabilization,
CIF Investors as of July 24, 2009
Fergus FCU
Mile High FCU
Rimrock CU
Altana FCU
Fort Peck Community FCU
Miles City FCU
Rocky Mountain CU
Badlands FCU
Gateway Community FCU
Missoula FCU
Russell Country FCU
Bear Paw CU
Glendive PE FCU
Montana FCU
SEG FCU
Billings FCU
Great Falls Teachers FCU
Montana CU League
Sky FCU
Butte Community FCU
Helena Community CU
Montana First CU
Southwest Montana FCU
EDTECH FCU
Heritage FCU
montana Health fcu
Treasure State CCU
Elkhorn FCU
High Peaks FCU
Park Side FCU
Trico commmunity FCU
EnerGComm FCU
Lincoln County CU
Ravalli County FCU
Wolf Point FCU
Family First FCU
McCone County FCU
Richland FCU
Credit unions invest in 1 of 3
1
CIF accounts at TSCCU.
Steve Grooms
Vice Chair • 1st Liberty FCU
Kathy Briggs
Secy/Treasurer • Family First FCU
Gary Clark
Director • Missoula FCU
Annamarie DeYoung
Director • Sky FCU
Paula Ruddock
Director • Rimrock CU
Asset/Liability
Committee
Brent Martin
Chair • Helena Community CU
Annamarie DeYoung
Sky FCU
Gary Clark
Missoula FCU
Al Vukasin
Bear Paw CU
Steve Howke and
Sylvia Jackson
TSCCU
CIF Flow Chart
1
Kevin Mayer
Chair • Richland FCU
Rhonda Diefenderfer
Director • Avanta FCU
1st Liberty FCU
TSCCU invests in
corresponding CIF
accounts at US Central.
Your TSCCU
Board of Directors
A portion of the CIF
dividend is returned to
the investor and a portion
2
goes to the NCUF.
Supervisory
Committee
Teri Krakowka
Chair • Southwest Montana
Community FCU
Deb Evans
Great Falls Teachers FCU
Dave Stenberg
Park Side FCU
2
Ultimately, credit
union members benefit
through outreach initiatives
funded by CIF.
1
NCUF national outreach projects
such as BizKid$
3
MCUCD state and local outreach projects
such as www.montanafreefile.org
2
3
¹⁄2 of NCUF’s portion is
2
applied to NCUF projects
and ¹⁄2 is given as a
3
grant to MCUCD
Treasure State Corporate Credit Union • National Credit Union Foundation • Montana Credit Unions for Community Development
Laura Scoville
Gateway Community FCU
network news—11
CUsource
Management Team
Shirley Bailey
President / CEO
[email protected]
Mary Lehman
Chief Financial Officer
[email protected]
Mark Mauler
Programer/Engineer
[email protected]
Kevin Hollingworth
Technical Services Manager
[email protected]
Brandi Holefelder
Software Services Manager
[email protected]
Kelly Calnan
Draft Services Manager
[email protected]
Mickey Kunnary
Print/Mail Services Manager
[email protected]
Tom Dedman
Product Development
[email protected]
Tracy Houck
Marketing & Business Development
[email protected]
CUsource, LLC
Corporate Office
501 Park Drive S, Ste 400
PO Box 3329
Great Falls, MT 59403
Great Falls: 800.823.2876
Helena: 800.430.0215
Billings: 800.528.6668
www.cusource.com
12—network news
Cooperatives Serving Cooperatives
Whether or not a cooperative is a non-profit, it is still
first and foremost a business. CUsource is a credit
union service organization owned cooperatively by
nine Montana credit unions. Established in 1988 as
a reseller and support for the Harland UltraData
Enterprise data processing platform, CUsource has
expanded operations to include print/mail, draft (including Check 21), and network security services.
Many cooperative businesses, like CUsource, gain
strength by combining efforts to meet specialized
needs and interests. CUsource’s cooperative business
model allows credit unions to pool their resources to
obtain software and technical skills that they need to
succeed but couldn’t afford on their own. Like many
other cooperatives, CUsource will face many
challenges in the coming years—increasing profitably, managing change, staying
competitive, and expanding membership, not to mention hiring, training
and working to retain employees.
Why Co-ops Form
Co-ops are formed when the marketplace fails to provide needed
goods or services at affordable prices
and acceptable quality. Cooperatives
empower people to improve their quality of life and enhance their economic opportunities through self-help.
Belonging to a purchasing or shared services
cooperative can be the key to prosperity and
even survival for many small businesses. This
was the philosophy behind the startup of CUsource. Credit unions wanted to be able to have the
best technology, support and service preferably
with a shared cooperative cost.
Throughout history, cooperatives have been
innovators and pacesetters, and this is just as
true of a purchasing/shared services cooperative as any
other. Members of these cooperatives have found that
they can adapt quickly to changing economic conditions rather than become victims of them. Through
these cooperatives, credit unions and CUSOs have
found they can reduce costs, respond better to competition, and improve overall performance.
credit unions that do business
with cusource range in size from
400 members with under $100,000 in
assets to over 80,000 members with
$1.2 billion in assets.
CUsource has shared their cooperative philosophy
with many other credit unions. Credit unions are invited to receive these economic benefits while maintaining the independence of their business. Just like
other cooperatives, CUsource relies on member economic participation.
Again, CUsource is like Montana’s credit unions in
that staff is motivated not by profit, but by service-to
meet their members’ needs for affordable and high
quality goods and services. Just like credit unions,
CUsource exists solely to serve its credit unions.
Cooperative Pricing
Cooperative benefits come not only from initial savings through group purchasing power, but also from
sharing the earnings of the cooperative based on the
patronage or use of the co-op.
CUsource is able to lower the prices of products
and services used by the credit unions by negotiating prices with vendors, coordinating the purchase
of supplies (like forms and preprinted statements),
and offering training and educational support on the
products and services.
Elements of Success
A successful cooperative has committed members and
effective leadership. CUsource is proud to have both.
The nine investing credit unions work to bring service
and solutions to all interested credit unions, big or
small, rural or urban.
Recent articles of the NCBA Cooperative Business
Journal have noted reasons for cooperatives successes
and failures. Membership is key to both. To ensure
success, members must actively participate in their
cooperative. Members need to participate, engage in
co-ops serving co-ops, cont. on page 13
First Annual CUsource Classic a Hit
In May 2009, CUsource sponsored
the first annual CUsource Charity Classic golf event at the Montana Credit Union Network’s Annual Convention and Exposition.
Sixty plus golfers braved some dark
clouds and cold breezes to raise
money for Montana’s Credit Unions
for Community
Development
(MCUCD).
Real Estate Office
Dan Eggen
Sr. Processing Specialist
[email protected]
Chandra Thronson
Sr. Processing Specialist
[email protected]
Audrey Arnold
Sr. Processing Specialist
[email protected]
Stacy Anderson
Processing Clerk
[email protected]
A lot of fun was
had by all and,
at the end of the
day, over $6000
was passed on
to support the
MCUCD’s work.
Your CUsource
Investors and
Board of Directors
Tom Boos
Chair • Billings FCU
Greg Strizich
Vice-Chair • Helena Community CU
Wally Berry
Secy/Treasurer • Montana FCU
Anna DeYoung
Director • Sky FCU
Co-ops Serving Co-ops, cont. from page 12
Rhonda Diefenderfer
Director • Altana FCU
services, attend meetings, and support the movement.
Members also have the responsibility to finance the cooperative and use its services. Often a cooperative fails when
directors fail to support their cooperative and members
who join don’t take full advantage of services and often
bypass it for a small gain elsewhere.
On the flip side, cooperatives thrive when they are focused on the needs of their members and not spread out
into other territories and industries, even if they are profitable. CUsource deploys products and services to credit
unions that are built for credit unions.
Our recent merger with UniPro Systems Ltd, has helped
our credit unions because it increased our ability to keep
administrative and overhead costs low. Our management
team works together and with industry leaders to aggressively position Montana credit unions for changes and opportunities in operations, markets, and member needs.
CUsource’s recent collective purchase will bring online
services to Montana including online account opening
and funding solutions, alert programs, and member- and
business-remote deposits.
Deb Evans
Director • Great Falls Teachers FCU
Tom Kiely
Director • EDTECH FCU
Bernie Neibauer
Director • Russell Country FCU
Chris Sisco
Director • Montana First CU
CUsource’s Tracy Houck took to the golf course with her camera
to document a few scenes from the greens during the CUsource
Classic. ABOVE LEFT: Gary Clark (Missoula FCU), Mark Lodine
(Missoula 1st CU) and Steve Steenson (CUNA Mutual Group) wait
for their start. ABOVE Right: Steve King (Montana FCU) ponders
his putt. Center Left: Golfers hit the driving range before the big
event. Center Right: Rhonda Diefenderfer (Altana FCU), Mike
Pingalore (Curtis 1000), and Paula Ruddock (Rimrock CU) discuss
the outcome at a hole while Bernie Neibauer (Russell Country FCU)
looks on. Bottom: Scott Jourdonnais (Curtis 1000), Jeremy Presta
(Park Side FCU), and Steve King (Montana FCU) watch to see if Scott
sunk his putt.
For more photos, email Tracy Houck at [email protected]
CUsource, LLC
Corporate Office
501 Park Drive S, Ste 400
PO Box 3329
Great Falls, MT 59403
Great Falls: 800.823.2876
Helena: 800.430.0215
Billings: 800.528.6668
www.cusource.com
network news—13
recognition
a plastic card with a social conscience …The CUre Card
A few years ago, Brandi Melo (Rocky Mountain CU)
was one of 30 young credit union professionals that
the Filene Research Institute chose to be a part of their
30-under-30 Project. As a participant, she worked
with three other group members to develop the CUre
So, what it is the CUre Card?
Brandi: CUre card is a credit union debit
card for ages 15-25 that donates interchange
income (10 cents per transaction) to a program that funds social entrepreneurs serving
their communities, in the spirit of the credit
union philosophy.
Brandi Melo
CUre Card
Info
website
www.CUreCard.org
Development Team
Mike Escudero
MBA Student USC
[email protected]
Brandi Melo
Rocky Mountain CU
[email protected]
Jill Jarman Nowacki
MAPs CU
[email protected]
Chad Warneke
Oregonians Credit Union
[email protected]
14—network news
Is 10 cents per transaction a lot to ask?
Brandi: The average debit card transaction is about
$40 and the average interchange income generated is
1.39%, which equals about $0.56 of income generated
per transaction for the credit union.
A donation of 10 cents per transaction will have minimal impact on the
bottom line, especially considering
contributions will only come from
the CUre Card—existing plastic card
programs will keep generating income
at current levels.
The CUre Card strikes me as a perfect “credit union” based
idea, one that reflects the credit union philosophy of “people
helping people,” while harnessing the power of cooperation.
Brandi: Yes, that’s exactly what we were trying to accomplish! By supporting the credit union philosophy of “not for profit, not for charity, but for service,”
CUre Card differentiates itself from other reward
cards while differentiating credit unions from other
financial institutions. At its best, this program will
highlight the tremendous accomplishments credit
unions can achieve through cooperation, while also
demonstrating credit unions’ commitment to providing for their communities in a sustainable way that
leaves a real impact.
Thinking conservatively, what kind of an impact do you think
the CUre Card might have?
Brandi: When CUre Card gets off the ground I think
it’s impact could be tremendous. In 2008, we surveyed
24 small, medium, and large credit unions in Oregon
Card—an idea that embodies credit union philosophy,
harnesses the power of cooperative action, and appeals
to members of the younger generations and stands to elevate credit unions in their minds. Brandi agreed to be
interviewed about the CUre Card for Network News.
and Montana about their interchance income. We
found that if each of those credit unions signed on
with CUre Card and offered it to their members who
were currently 15-25 years old, potential contributions
could be $230,000 each month. If only one of the largest credit unions in the country also offered the CUre
Card, the contributions for per month’s contributions
could easily increase to $525,000.
What will your project require of credit unions?
Brandi: At this time, it would be great if credit unions
could express their interest to one of the four members
of the CUre Card development team or to Filene Research Institute. Once there is an actual card, individual credit unions will need to sign up with their card
vendor and offer the debit card to their members.
Why should credit unions participate?
Brandi: CUre Card offers a way for credit unions to
reach out to an underserved population (15–25 yearolds) in a way they prefer. Generation Y in the U.S. is
comprised of over 70 million individuals born (roughly) between 1979 and 2000, and they already wield a
lot of spending power. As this generation ages, it will
continue to increase its spending power and influence
over the economy.
CUre Card and the grants it funds will also help increase credit union awareness by showing how credit
unions use a spirit of cooperation to make an impact.
CUre Card grants will help fund solutions to a number of social issues that relate to credit unions’ mission of economic empowerment, self-help, and people
helping people. The fund will also encourage social
entrepreneurs or future social entrepreneurs to consider how they can help solve problems in their own
communities, helping position people to create their
own economic success and develop assets.
How can people find out more information on the CUre Card?
Brandi: We have a website www.CUreCard.org or
they can contact me directly at [email protected].
recognition
Recognition
Montana Credit Union Awards
Each year Montana credit unions confer two special awards that are
designed to honor certain individuals whose work and dedication
stand out in Montana's credit union landscape. The recipients of those
awards—the Mitch Reed Credit Union Volunteer of the Year and the
Credit Union Professional of the Year—are nominated by their peers.
This year the awards committee selected Bob Bjelland, President/CEO
of Fergus FCU, as the Professional of the Year and Bryan Fox, long-time
member of the Russell Country FCU Board of Directors, as the Mitch
Reed Volunteer of the Year.
Bryan Fox ,
Montana’s CU Volunteer of the Year, stands in
the middle of Russell Country FCU’s delegation to the Annual Convention and Awards Dinner. Left to right: Kathy Bostic, Bernie Neibauer, Bryan Fox,
Mitch Martin, and Jim Balzer.
2009
professional of the year
Bob Bjelland, President/CEO of
Fergus FCU, has been named
the 2009 Montana Credit Union
Professional of the Year. The
award, conferred by his Montana
peers, recognizes Bjelland’s tremendous contributions to credit
unions and is one of the highest
honors bestowed in Montana’s
MCUN President/CEO Tracie Kenyon and Bob Bjelland,
credit union system.
Montana CU Professional of the Year, smile for the camera after the awards presentation.
While Bjelland has been Fergus
FCU President/CEO for 24 years, over the course of his (almost) 35-year
career he has touched many of Montana’s credit unions and credit union
organizations. He knows the financial services business inside and out
and strongly believes in credit unions and the credit union mission of
people helping people. Under his tenure as CEO, Fergus FCU has expanded services and assets and just completed the process of creating a
main street park for their community.
“Bob is incredibly respected in credit union circles,” said Tracie Kenyon, Network President/CEO. “He has been a steady, savvy presence
in the state’s credit union system for the past 35 years—his support,
leadership, and hard work have helped Montana’s credit unions weather
changes and increase the benefits they offer their members and their
communities.”
Over the course of his diverse career, Bjelland has both worked for and
served on various boards and key committees that benefit credit unions
around the state. Early in his career he worked at both the Credit Union
League and Treasure State Corporate Credit Union, both of which are
owned by and serve credit unions across Montana. He was just reelected
to another three-year term on the Montana Credit Union League Board.
2009 mitch reed volunteer of the Year
Montana credit unions honored Russell Country
FCU board member Bryan Fox for his unswerving commitment and countless contributions to his
credit union, and his community over the past 30
years by giving him the 2009 Mitch Reed Montana
Volunteer of the Year Award.
“Bryan’s 30 years of service to Russell Country FCU
have made him a seasoned board member, yet he
still maintains a desire to keep up on the newest
trends developing within the credit union industry,”
said Bernie Neibauer, Russell Country FCU President/CEO. “Bryan understands the need for change
in an ever-changing business climate; I appreciate his
insight and value his opinion on local, national, and
international financial topics.”
As a Russell Country FCU Board member, Fox donates his time and expertise. He started his credit
union service at the age of 21 by serving on a Supervisory Committee; at age 23 he was a board member. He has assisted in two successful mergers and
the implementation of credit and debit cards.
In addition to his tremendous service to his credit
union, Fox is the HR Officer for Montana’s Air and
Army National Guard and has served his country
with a tour to Iraq. Even though he now lives in
Helena, he continues his service to his credit union
in Great Falls.
In addition to his work in and on behalf of credit unions, Bjelland is also actively involved in a number of
Lewistown community organizations, serving on the Medical Center Board, Chamber of Commerce Board,
Rotary Board, Elks Board, and Country Club Board.
network news—15
Presort Standard
US Postage
PAID
Helena, MT 59601
Permit No. 221
1236 Helena Ave • Helena, MT 59601
An Adventure awaits You
at the
•Tim Lerew, Building a Culture of • Brad Miller, Association of Corporate
Ethics & Excellence
• Jim Stickley, Security Expert
• Steve Bullock, Attorney General
• Poverty Simulation
Credit Unions
• Yvonne Evers, Leadership Workshops
• Paul Drake, Federal Reserve Bank
• CU System Update
Registration for your safari will be available online in early August 2009
www.mcun.COOP
Montana
Credit Union
Network
1236 Helena Avenue
Helena, MT 59601
Phone
406.442.9081
800.745.5546
Fax:
406.442.9085
Web Site
www.mcun.coop
network news—16