2020-05-07T07:14:06-05:00 2018-12-31 KPMG LLP 345 Park Avenue New York NY 101540102 990 2018-01-01 135261470 Municipal Credit Union % JANE E DOBBS MUNI 2122383334 22 CORTLANDT ST 26TH FLOOR New York NY 10007 JANE E DOBBS CEO 2122383334 2020-05-06 true PHILLIP GROFF P01247783 2127589700 2020-05-05 167.68.102.5 13407320201285000001 2020-05-07 P B9219D9893D7360B27BECBB5A18415E0380C8F9D B6105065FC6BEAFA7E7CC82E85D30EB414BC8C3E 2018 2020-09-23 17:36:50Z Jane Dobbs 22 CORTLANDT ST 26TH FLOOR New York NY 10007 198217065 false X WWW.NYMCU.ORG X 1916 NY TO BUILD LIFETIME FINANCIAL RELATIONSHIPS WITH EACH MEMBER, PROVIDING COMPETITIVE PRODUCTS AND EXCELLENT SERVICES. 1 1 873 13 5239826 964169 0 0 174207026 185345642 8752991 12871423 0 0 182960017 198217065 263470 71000 4453512 0 84786384 82799594 0 0 0 75878649 104019086 165382015 186889680 17578002 11327385 2685788344 2863182574 2570009170 2753495301 115779174 109687273 X TO BUILD LIFETIME FINANCIAL RELATIONSHIPS WITH EACH MEMBER, PROVIDING COMPETITIVE PRODUCTS AND EXCELLENT SERVICES. false false SEE SCHEDULE O. false false false false false false false false false true true false false true true false false false false false false false false false false false false true true false false false false true false false false false false false false false false true 68709 0 true 873 true true true false false false false false false false X 1 1 false false false true true true true true true true true true true true true true true true false true false X JANE E DOBBS 2122383334 22 CORTLANDT ST NEW YORK NY 10007 X JAMES DURRAH BOARD CHAIR (END 6/22/2018) 6.0 0.0 X X 795 0 0 BERYL MAJOR 1ST VICE CHAIR (END 6/22/2018) 6.0 0.0 X X 374 0 0 LORETTA JONES 2ND VICE CHAIR (END 6/22/2018) 6.0 0.0 X X 131 0 0 C RICHARD WAGNER 3RD VICE CHAIR (END 3/2018) 1.0 0.0 X X 0 0 0 S NANA OSEI-BONSU TREASURER (END 6/22/2018) 5.0 0.0 X X 288 0 0 CAROLL DUNCANSON SECRETARY (END 6/22/2018) 5.0 0.0 X X 143 0 0 MARIO MATOS JR ASST TREASURER (END 6/22/2018) 6.0 0.0 X X 790 0 0 TESSA HACKETT-VIEIRA ASST SECRETARY (END 6/22/2018) 6.0 0.0 X X 81 0 0 TONY AHMAD SHARIF ABDALLAH DIRECTOR (END 6/22/2018) 3.0 0.0 X 192 0 0 MARK BRANTLEY ESQ DIRECTOR (END 6/22/2018) 4.0 0.0 X 3091 0 0 ELAN NIEVES ESQ DIRECTOR (END 5/10/2018) 1.0 0.0 X 0 0 0 JOY SCHWARTZ ESQ DIRECTOR (END 6/22/2018) 6.0 0.0 X 1634 0 0 Stella M Mendes BOARD administrator-SEE SCH O 40.0 0.0 X 0 0 0 KAM WONG END 52018 PRESIDENT/CEO 40.0 0.0 X 324729 0 121834 NORMAN KOHN EVP/CHIEF CREDIT OFFICER 40.0 0.0 X 516027 0 178228 RICHARD CASAMASSA EVP/CHIEF MEMBER SERVICE 40.0 0.0 X 385472 0 321978 KIM THOMPSON END 52018 EVP/CHIEF OFFICER OF HR/LR 40.0 0.0 X 191788 0 199387 LINDA LAMBERT END 52018 SVP/CHIEF FINANCIAL OFFICER 40.0 0.0 X 114330 0 260740 Mark Ricca President/CEO 60.0 0.0 X 164997 0 6550 Shannon Mashburn SVP, Chief HR Officer 60.0 0.0 X 67308 0 0 Lisa Mingoia SVP/CFO 40.0 0.0 X 41154 0 0 CAROLE PORTER SVP/CHIEF RETAIL BANKING 40.0 0.0 X 289703 0 510205 JANET E PERKINS SVP/CHIEF INNOVATION OFFICER 40.0 0.0 X 242190 0 305987 PHILIP J VELTRE DEPUTY COUNSEL (END 9/2018) 40.0 0.0 X 220348 0 633798 THOMAS G SICILIANO GENERAL COUNSEL 40.0 0.0 X 424039 0 61142 ROBERT SOLOWAY VP/INFORMATION TECHNOLOGY 40.0 0.0 X 232999 0 160706 AHMED CAMPBELL VP/LOAN OPERATIONS 40.0 0.0 X 283149 0 511456 STACY K RILEY AVP, RISK MANAGEMENT 40.0 0.0 X 217501 0 53359 JOHN PARRINELLO VP COLLECTIONS/LOSS PREVENTION 40.0 0.0 X 211476 0 623929 SREENIVAS RAYADURGAM PROGRAMMING MANAGER 40.0 0.0 X 190695 0 157922 JAMES ACAMPONE JREND 72018 MANAGING DIRECTOR, WEALTH MGT 40.0 0.0 X 187201 0 34105 4312625 0 4141326 92 false true false OCD MEDIA LLC 8 EAST 36TH STREET NEW YORK NY 10016 ADVERTISING 3291694 LOOMIS FARGO CO DEPT CH 10500 PALATINE IL 60055 ARMORED CAR SERVICE 3026855 DIEBOLD INCORPORATED PO BOX 643543 PITTSBURGH PA 152643543 ATM PURCHASES/MAINTA 2862009 NCP SOLUTIONS LLC PO BOX 11407 BIRMINGHAM AL 35246 QTLY/MTHLY STMT MAIL 2426831 FTI CONSULTING INC 750 THIRD AVENUE NEW YORK NY 10017 Management Services 2274999 105 0 LOAN INTEREST 900099 105661076 105661076 FEES & SERVICE CHARGES 522100 70053943 68870264 1183679 INSURANCE REIMBURSEMENT 522100 9111696 5055549 4056147 OTHER OPERATING INCOME 900099 518927 518927 185345642 12871423 12871423 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 198217065 180105816 5239826 12871423 0 71000 0 0 5990217 396140 46526851 11150484 14871841 3864061 0 2051601 1414985 0 0 0 6634220 6093597 11870880 5783071 0 15118260 375425 0 553198 0 0 10245157 871843 PROVISION FOR LOAN LOSS 17530815 DEBIT & CREDIT CARD EXP 11543958 PROVISION FOR UBIT 4859601 LOAN SERVICING EXPENSE 3971149 5101326 186889680 116185461 97076867 300838373 405469691 0 0 7394157 10417067 0 0 0 0 1762795404 1940319994 0 0 68661300 50856437 72116848 43141280 30358403 28975568 0 0 290193751 265447839 5852626 6351025 0 0 103508869 58268086 2685788344 2863182574 77241071 65086210 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2492768099 2688409091 2570009170 2753495301 X 0 0 0 0 115779174 109687273 115779174 109687273 2685788344 2863182574 X 11327385 -786054 -16633232 X false true X true false 27074797 11969930 15104867 45042051 31171350 13870701 28975568 AVAILABLE FOR SALE 40211853 F HELD TO MATURITY 225235985 F 265447838 0 MEMBER ACCOUNTS 2688409091 2688409091 X PART X, LINE 2: The Credit Union issued audited financial statements for an 18-month period ranging from January 1, 2018 to June 30, 2019. Accordingly the December 31, 2018 period is included in the issued audited financial statements for the 18-month period. The audited financial statements included the following footnote: The Credit Union is exempt from most federal, state, and local taxes under the provisions of the Internal Revenue Code and state tax laws. However, the Credit Union is subject to unrelated business income tax. The Income Taxes Topic of the FASB ASC clarifies accounting for uncertainty in income taxes reported in the financial statements. The interpretation provides criteria for assessment of individual tax positions and a process for recognition and measurement of uncertain tax positions. Tax positions are evaluated on whether they meet the "more likely than not" standard for sustainability on examination by tax authorities. Management has determined there are no material uncertain tax positions. However, the Credit Union is subject to unrelated business income tax. Part XI AND Part XII Reconciliation of Revenue and Expenses per the Audited Financial Statements and Return The Credit Union issued audited financial statements for an 18-month period ranging from January 1, 2018 to June 30, 2019. Accordingly the December 31, 2018 period is included in the issued audited financial statements for the 18-month period. However, the period from January 1, 2018 to December 31, 2018 is not separately stated and the Credit Union did not complete this section. true SCHOLARSHIPS 22 71000 PART I, LINE 2: Scholarship applicants must be a member, a child or grandchild of a member in good standing of Municipal Credit Union. The applicant must be a high school senior attending college for the first time of application. Scholarship funds must be used (1) for tuition and associated costs, (2) only at an accredited educational institution, and (3) the member agrees to use any scholarship fund awarded at an accredited educational institution only. To be eligible for the Public Relations & Marketing Council Scholarship, students must have their own account at Municipal Credit Union. Also, as a condition of receiving one of the MCU scholarships, students must attend an awards ceremony at MCU's corporate headquarters, 22 Cortlandt Street, New York, NY, and consent to MCU's use of their names, statements and likeness, without compensation, for promotional purposes in Credit Union publications, advertisements, and website. Judging will is based on both subjective criteria and weighted, objective criteria. These include academic achievements, extracurricular and community activities, essay, etc. X X X X false false X X X X false false false KAM WONG END 52018 PRESIDENT/CEO 282313 42416 106839 0 15528 0 447096 0 0 0 NORMAN KOHN EVP/CHIEF CREDIT OFFICER 375498 50000 90529 138572 0 40723 0 695322 0 0 0 RICHARD CASAMASSA EVP/CHIEF MEMBER SERVICE 341592 43880 282322 0 40724 0 708518 0 0 0 KIM THOMPSON END 52018 EVP/CHIEF OFFICER OF HR/LR 170651 0 0 0 21137 0 190046 0 10326 0 392160 0 0 0 CAROLE PORTER SVP/CHIEF RETAIL BANKING 280359 0 0 0 9344 0 470549 0 40724 0 800976 0 0 0 LINDA LAMBERT END 52018 SVP/CHIEF FINANCIAL OFFICER 114330 0 0 0 0 0 253993 0 7192 0 375515 0 0 0 JANET E PERKINS SVP/CHIEF INNOVATION OFFICER 241224 966 266853 0 41402 0 550445 0 0 0 PHILIP J VELTRE DEPUTY COUNSEL (END 9/2018) 187432 0 0 0 32916 0 595340 0 39897 0 855585 0 0 0 THOMAS G SICILIANO GENERAL COUNSEL 362317 0 0 0 61722 0 21487 0 40723 0 486249 0 0 0 ROBERT SOLOWAY VP/INFORMATION TECHNOLOGY 232999 0 0 121050 0 43784 0 397833 0 0 0 AHMED CAMPBELL VP/LOAN OPERATIONS 219421 0 44835 0 18893 0 471800 0 40724 0 795673 0 0 0 STACY K RILEY AVP, RISK MANAGEMENT 189841 0 17200 0 10460 0 36996 0 17260 0 271757 0 0 0 JOHN PARRINELLO VP COLLECTIONS/LOSS PREVENTION 173809 35703 1964 584274 0 40053 0 835803 0 0 0 SREENIVAS RAYADURGAM PROGRAMMING MANAGER 176811 12500 1384 126317 0 36478 0 353490 0 0 0 Mark Ricca President/CEO 114535 0 50000 0 462 0 0 0 6878 0 171875 0 0 0 JAMES ACAMPONE JREND 72018 MANAGING DIRECTOR, WEALTH MGT 103663 0 0 0 83538 0 0 0 34764 0 221965 0 0 0 PART I, LINE 1A: FIRST-CLASS TRAVEL FIRST-CLASS TRAVEL WAS INCURRED BY JAMES DURRAH, BOARD MEMBER, AND MARK BRANTLEY, BOARD MEMBER, FOR CONFERENCES AND MEETINGS ON BEHALF OF MUNICIPAL CREDIT UNION. THE AMOUNTS INCURRED OUT OF POLICY ARE TREATED AS TAXABLE INCOME TO THE INDIVIDUAL BOARD MEMBERS. TAX GROSS-UP PAYMENT TAX GROSS-UP PAYMENTS WERE RECEIVED BY KAM WONG, PRESIDENT/CEO. THE AMOUNTS RECEIVED WERE TREATED AS TAXABLE INCOME TO THE PRESIDENT/CEO. HOUSING Housing allowance was received by Stacy K Riley, AVP Risk management, Kim Thompson, EVP/Chief officer of HR/LR, and James A Campone, JR., Managing Director Wealth Management Services. The amounts received were treated as taxable income to each individual PART I, LINE 1B: WRITTEN REIMBURSEMENT POLICY THE CREDIT UNION DID NOT HAVE A WRITTEN REIMBURSEMENT POLICY IN PLACE FOR THE EXPENSES DESCRIBED IN PART I, LINE 1A. Brooke Remel Oliver Durrah SEE PART V 80420 EMPLOYEE COMPENSATION false Kevin S Vieira SEE PART V 55727 EMPLOYEE COMPENSATION false Nicole Siciliano SEE PART V 85568 EMPLOYEE COMPENSATION false William Siciliano SEE PART V 50679 EMPLOYEE COMPENSATION false David Kohn SEE PART V 89046 EMPLOYEE COMPENSATION false Robert Antonetti SEE PART V 34700 EMPLOYEE COMPENSATION false SCHEDULE L, PART IV Brooke Remel Oliver Durrah IS A FAMILY MEMBER OF James Durrah, BOARD MEMBER. Kevin S. Vieira IS A FAMILY MEMBER OF Tessa I. Hackett-Vieira, BOARD MEMBER. Nicole Siciliano and William Siciliano are FAMILY MEMBERs OF Thomas Siciliano, KEY EMPLOYEE. David Kohn IS A FAMILY MEMBER OF Norman Kohn, OFFICER. Robert Antonetti is a family member of Loretta Jones, board member. FORM 990, PART III - PROGRAM SERVICE, LINE 4A FOUNDED IN 1916 FOR NEW YORK CITY MUNICIPAL WORKERS, MUNICIPAL CREDIT UNION (THE CREDIT UNION) IS THE OLDEST CREDIT UNION IN NEW YORK STATE AND THE LARGEST METRO NEW YORK CREDIT UNION OFFERING A WIDE ARRAY OF financial services to its members. MCU is chartered under New York State Banking Law. The Credit Union currently provides services to over 550,000 members and manages over $2.9 billion in member assets. Membership is available to employees of the City of New York and its agencies, employees of the federal and New York State governments in the five boroughs, employees of hospitals, nursing homes and similar facilities which are located within New York State, and others who are eligible as specified in the Credit Union's bylaws. Form 990, Part IV, line 12A: The Credit Union obtained separate, independent audited financial statements for the 18-months ended June 30, 2019. THE reporting tax year for this tax filing of December 31, 2018 falls within the 18-month period for the audited financial statements. Form 990, Part VI, Section A, line 6: As disclosed on its Form 990 for FYE 2017, the credit union discovered a significant diversion of assets in 2018, prior to the time that Form 990 was filed. Through its ongoing investigations, the credit union has become aware of additional diversions of assets resulting from various embezzlement schemes and financial accounting improprieties. To date, the total amount of diverted assets is $135,729,207.47, with $18,298,148 being attributable to the embezzlement schemes and $117,431,059.47 being attributable to the accounting improprieties. The credit union has been placed under the conservatorship of the National Credit Union Association. The credit union also has carried out a comprehensive reorganization, including terminating all individuals identified as having been involved in the misconduct, if employed, engaging new senior executive management team, retaining a new accounting firm, implementing additional internal accounting controls, and adopting new governance policies and procedures. Additionally, state officials removed the board of directors and supervisory committee members in place during the time the misconduct occurred. As described below, federal prosecutors also have instituted criminal action against a number of credit union representatives, resulting in prison terms for certain individuals, as well as the indictment of the former chair of the credit union's board of directors. With respect to the embezzlement schemes, the credit union became aware prior to the filing of this tax return that certain credit union executives and other employees and representatives diverted assets through improper claims for business expense reimbursements, car allowance, long term disability insurance, dental expense reimbursements, personal leave, gift card purchases, petty cash requests, tax liability payments, and by entering into unauthorized contracts. With respect to the financial accounting improprieties, the credit union became aware prior to the filing of this tax return that certain former credit union executives having responsibility for accounting functions had improperly reported the credit union's investment income by failing to expense the premium on bonds payable, had improperly reported the credit union's loan origination expenses in order to positively manipulate the credit union's performance metrics, had improperly reported the credit union's loan origination expenses in order to positively manipulate the credit union's performance metrics, had engaged in improper accounting practices with respect to MCU's fixed assets, including underreporting and/or minimizing MCU's expenses, had used inaccurate information to inflate MCU's pension performance, and had improperly made loan modifications and/or deferments under the guise of member services. In addition to the comprehensive reorganization of its operations described above, the credit union has cooperated fully with criminal proceedings brought by the U.S. Attorney's Office for the Southern District of New York. In connection with those proceedings the credit union's former Chief Executive Officer has plead guilty to embezzling from the credit union and is now serving a federal prison sentence of sixty-six (66) months. As part of his guilty plea, he also agreed to forfeit at least $9,890,375. The former Supervisory Committee Chair and head of the Security and Fraud Department also recently has pleaded guilty to embezzling more than $400,000 from the credit union, and prosecutors have recommended a prison sentence of more than two years. In addition, federal prosecutors have indicted the former Chair of the credit union's board of directors for obstructing the criminal investigation of the former CEO's embezzlement scheme. Her trial is presently set to begin on October 19, 2020. The credit union has sought insurance coverage from its fidelity bond insurer for the losses discussed above. A lawsuit against that insurer is now pending in state court in Wisconsin. FORM 990, PART VI, SECTION A, LINES 7A AND 7B: THE CREDIT UNION IS COMPRISED OF APPROXIMATELY 550,000 MEMBER OWNERS, EACH OF WHICH HAS EQUAL RIGHTS. TO BECOME A MEMBER OF MUNICIPAL CREDIT UNION, A PERSON MUST BE ELECTED TO MEMBERSHIP, PAID FOR ONE OR MORE SHARES, PAID ENTRANCE FEES AS PROVIDED FOR IN THE BY-LAWS, AND MUST BE EMPLOYED (A) IN THE CITY GOVERNMENT OF THE CITY OF NEW YORK, OR (B) IN THE GOVERNMENT OF ANY OF THE COUNTIES WITHIN THE TERRITORIAL LIMITS OF THE CITY OF NEW YORK, OR (C) IN THE BOARD OF EDUCATION OF THE CITY OF NEW YORK, OR (D) IN THE BOARD OF HIGHER EDUCATION, OR (E) IN THE NEW YORK CITY HEALTH AND HOSPITALS CORPORATION, OR (F) IN THE NEW YORK CITY HOUSING AUTHORITY, OR (G) IN ANY SIMILAR AUTHORITY NOW OR HEREAFTER ORGANIZED AND EXISTING PURSUANT TO THE PUBLIC AUTHORITIES LAW, LAWS 1939, CHAPTER 870, OR ACTS AMENDATORY THEREOF, WHERE SAID AUTHORITY HAS JURISDICTION SOLELY OF FUNCTIONS WITHIN ANY OR ALL OF THE FIVE COUNTIES WITHIN THE TERRITORIAL LIMITS OF THE CITY OF NEW YORK, OR (H) IN ANY AGENCY OPERATING WITHIN THE GREATER NEW YORK CITY METROPOLITAN AREA AND WHICH IS, AT LEAST IN PART, FUNDED BY THE CITY OF NEW YORK, THE STATE OF NEW YORK, OR ONE OF THE AGENCIES, SUBDIVISIONS OR DEPARTMENTS THEREOF, OR (I) BY ANY INDIVIDUAL, EMPLOYER, AGENCY, PARTNERSHIP, CORPORATION, OR OTHER ENTITY WITH WHICH THE CREDIT UNION MAINTAINED A PAYROLL DEDUCTION TYPE RELATIONSHIP AS OF APRIL 10, 1986, OR (J) BY OR IN ANY HOSPITAL, NURSING HOME, HEALTH FACILITY, AND THEIR AFFILIATES, EITHER PRIVATE OR PUBLIC, LOCATED IN THE STATE OF NEW YORK, OR (K) BY INSURANCE COMPANIES WHO OFFER HEALTH RELATED INSURANCE IN THE STATE OF NEW YORK, OR (L) BY THE FEDERAL GOVERNMENT PROVIDED SUCH EMPLOYEE WORKS WITHIN THE TERRITORIAL LIMITS OF THE CITY OF NEW YORK, OR (M) BY COMPANIES THAT PRODUCE AND/OR SUPPLY HOSPITALS IN THE STATE OF NEW YORK WITH MEDICAL AND OTHER TYPE HEALTH CARE PRODUCTS, OR (N) BY PRIVATE COLLEGES LOCATED IN THE CITY OF NEW YORK AND PRIVATE AND PUBLIC COLLEGES IN THE COUNTIES OF NASSAU, SUFFOLK, WESTCHESTER, OR (O) BY ARAMARK CORPORATION AT NYACK HOSPITAL IN NYACK, NEW YORK, OR (P) EMPLOYEES OF THE CITY OF YONKERS, NEW YORK, OR (Q) BY THE CITY OF MT. VERNON, NEW YORK, OR (R) KAWASAKI RAIL CAR, INC., OR (S) MUNICIPAL CREDIT UNION, OR (T) AS CEMETERY WORKERS WORKING WITHIN THE CITY OF NEW YORK, OR (U) AS SOCIAL WORKERS AND COUNSELORS AT PRIVATE CENTERS AND NOT-FOR-PROFIT SHELTERS LOCATED IN THE CITY OF NEW YORK, OR (V) BY THE ARCHDIOCESE OF NEW YORK AND BROOKLYN, OR (W) AS TAXI DISPATCHERS FOR AIRPORTS IN THE CITY OF NEW YORK, OR (X) AS AIRCRAFT FUELERS AND MAINTENANCE WORKERS IN THE CITY OF NEW YORK, OR (Y) BY ST. PETER'S CHURCH IN YONKERS, NEW YORK, OR (Z) ANY ASSOCIATION OF SUCH EMPLOYEES. THE FOLLOWING ADDITIONAL PERSONS MAY BECOME MEMBERS: (1) ALL STUDENTS ENROLLED IN: (A) A COLLEGE, UNIVERSITY, SCHOOL, OR INSTITUTION, IN THE CITY UNIVERSITY OF NEW YORK (CUNY) EDUCATION SYSTEM; OR (B) ST. JOHN'S UNIVERSITY (ATTENDING CAMPUSES LOCATED IN NEW YORK STATE); (2) ALL MEMBERS OF ST. PETER'S CHURCH IN YONKERS, NEW YORK; (3) ANY ASSOCIATION OF EMPLOYEES WHICH ARE PRINCIPALLY COMPRISED OF INDIVIDUALS WHO ARE ELIGIBLE FOR MEMBERSHIP; (4) AN OFFICER OR EMPLOYEE OF THE STATE OF NEW YORK EMPLOYED IN THE CITY OF NEW YORK; (5) ANY OTHER CREDIT UNION ORGANIZED UNDER THE LAWS OF THE STATE OF NEW YORK. MEMBERSHIP IS NOT TERMINATED BY CESSATION OF EMPLOYMENT. ALL MEMBERS MUST MAINTAIN AT LEAST ONE SHARE ON DEPOSIT. MEMBERSHIP IS ALSO PERMITTED FOR THE FOLLOWING PEOPLE PURSUANT TO N.Y. BANKING LAW 451-A: (1) THE FAMILY MEMBERS OF PERSONS WITHIN THE FIELD OF MEMBERSHIP. "FAMILY MEMBER" MEANS A PERSON RELATED BY BLOOD, MARRIAGE OR LIVING IN THE SAME HOUSEHOLD WITH A PERSON WITHIN THE FIELD OF MEMBERSHIP AND THEIR LINEAL ANCESTORS AND DESCENDANTS INCLUDING PERSONS SO RELATED BY ADOPTION, SIBLINGS, STEPPARENTS, STEPCHILDREN AND STEPSIBLINGS; AND "HOUSEHOLD" MEANS PERSONS LIVING IN THE SAME RESIDENCE AND MAINTAINING A SINGLE ECONOMIC UNIT; OR (2) ANY EMPLOYEE OF THE CREDIT UNION; OR (3) ANY MEMBER WHO LEAVES THE FIELD OF MEMBERSHIP AND WHO HAS NOT WITHDRAWN OR BEEN EXPELLED MAY RETAIN MEMBERSHIP; OR (4) ANY INCORPORATED OR UNINCORPORATED ORGANIZATION COMPOSED PRINCIPALLY OF PERSONS ELIGIBLE TO MEMBERSHIP IN THE CREDIT UNION AND THAT ORGANIZATION'S EMPLOYEES; OR (5) ANY PERSON WHO IS ELIGIBLE FOR MEMBERSHIP BY REASON OF THE FACT THAT HE OR SHE IS AN EMPLOYEE OF A COMMON EMPLOYER OR OF A CREDIT UNION SHALL NOT BECOME INELIGIBLE, AFTER THE TERMINATION OF SUCH EMPLOYMENT, AS LONG AS HE OR SHE RECEIVES A PENSION OR ANNUITY FROM, OR UNDER, A PLAN OR OTHER ARRANGEMENT ESTABLISHED BY SUCH COMMON EMPLOYER OR CREDIT UNION. FORM 990, PART VI, SECTION A, LINES 7A AND 7B ELECTION OF MEMBERS TO THE BOARD OF DIRECTORS AND THE SUPERVISORY COMMITTEE TAKES PLACE AT THE ANNUAL MEETING. MEMBERS BECOME ELIGIBLE FOR ELECTION TO THE BOARD OF DIRECTORS OR THE SUPERVISORY COMMITTEE AFTER COMPLETING ONE YEAR OF MEMBERSHIP. THE CREDIT UNION INFORMS THE MEMBERSHIP NOT LESS THAN 10 DAYS AND NOT MORE THAN 45 DAYS PRIOR TO THE ANNUAL MEETING OF THE NAMES OF ALL CANDIDATES AND THE OFFICE FOR WHICH THEY ARE NOMINATED. ELECTIONS ARE HELD BY CLOSED BALLOT. FORM 990, PART VI, SECTION 1, LINE 9 THE FOLLOWING INDIVIDUALS LISTED IN PART VII, SECTION A CANNOT BE REACHED AT THE CREDIT UNION'S MAILING ADDRESS. THEIR ADDRESSES ARE AVAILABLE UPON REQUEST. - JAMES DURRAH - BERYL MAJOR - LORETTA JONES - C. RICHARD WAGNER - S. NANA OSEI-BONSU - CAROLL DUNCANSON - MARIO MATOS JR - TESSA HACKETT-VIEIRA - TONY (AHMAD SHARIF) ABDALLAH - MARK BRANTLEY, ESQ - ELAN NIEVES, ESQ - JOY SCHWARTZ, ESQ - STELLA MENDES - KAM WONG - NORMAN KOHN - RICHARD CASAMASSA - KIM THOMPSON - LINDA LAMBERT - MARK RICCA - SHANNON MASHBURN - LISA MINGOIA - CAROL PORTER - JANET PERKINS - PHILIP VELTRE - THOMAS G. SICILIANO - ROBERT SOLOWAY - AHMED CAMPBELL - JOHN PARRINELLO - JAMES A. CAMPONE JR. FORM 990, PART VI,SECTION B,LINE 11B: The Form 990 is prepared by an outside accounting firm and reviewed by the EVP. Once the FORM 990 IS REVIEWED by the EVP, the BOARD reviews and approves. A complete copy of the final Form 990 (including all required schedules) as ultimately filed with the IRS is provided to the full board. FORM 990, PART VI, SECTION B, LINE 12C: All employees are covered by the conflict of interest policy, as well as the acting board. Conflicts of interest are reviewed by the Chairman of the Board and transactions or requests are either approved or denied. persons with conflicts recuse themselves from participating in the governing body's deliberations and decisions in the transaction. Form 990, Part VI, Section B, line 13: The Credit Union did have a written whistleblower policy in place that was revised during 2018. Additionally, the Credit Union took the appropriate steps to establish a written policy in 2019 to encourage personnel to, in good faith, report any action or suspected action taken by or within the Credit Union that is illegal, fraudulent, or in violation of any Credit Union policy. FORM 990, PART VI, SECTION B, LINE 15A AND 15B: AFTER THE DIVERSION OF ASSETS WERE DISCOVERED, THE CREDIT UNION REVIEWED THE CEO AND KEY EMPLOYEE COMPENSATION WITH THE PRESIDENT/CEO, BOARD ADMINISTRATOR AND HUMAN RESOURCES. THE CREDIT UNION REVISED ITS COMPENSATION REVIEW PROCESS IN 2019 TO INCLUDE AN INDEPENDENT COMPENSATION EVALUATOR TO REVIEW ALL POSITIONS AND COMPENSATION GOING FORWARD, THIS INCLUDES REVIEWING COMPARABLE DATA FOR REASONABLENESS. THE REVIEW AND DECISIONS WILL BE CONTEMPORANEOUSLY SUBSTANTIATED. FORM 990, PART VI, SECTION C, LINE 19: FINANCIAL STATEMENTS ARE AVAILABLE ON THE WEBSITE. OTHER DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART VII, SECTION A, BOARD OF TRUSTEES ADMINISTRATION On June 22, 2018, the Superintendent of New York State Department of Financial Services removed the then-members of the MCU's Board of Directors pursuant to Sections 41 and 14(1)(p) of the New York Banking Law and Sections 301 and 303 of the New York Financial Services Law due to severe deficiencies and weakness in MCU's internal controls and the Board of Directors' oversight of the management of the affairs, funds, and records of MCU, in a manner that raised significant concerns regarding the oversight of MCU's operations and protection of its membership and for violations of Sections 470 and 471 of the Banking Law. Stella Mendes of FTI Consulting was appointed as the on-premises administrator to oversee the general management of the affairs, funds, and books and records of MCU and all matters coming before her. FORM 990, PART XI, LINE 9, CHANGES IN NET ASSETS: CHANGE IN PENSION BENEFIT ASSETS -16,633,232