2014-11-17T12:45:04-06:00 2013-12-31 410746749 CLIFTONLARSONALLEN LLP 20 E THOMAS RD STE 2300 PHOENIX AZ 85012 990 2013-01-01 910712539 WHATCOM EDUCATIONAL CREDIT UNION WHAT 3606761168 600 EAST HOLLY STREET BELLINGHAM WA 98227 JENNIFER KUTCHER PRESIDENT/CEO 3607567716 2014-11-12 1 JANIS ISAACSON P00089104 6022662248 2013 2015-11-30 17:44:51Z JENNIFER KUTCHER 600 EAST HOLLY STREET BELLINGHAM WA 98227 51530859 0 X WWW.WECU.COM X 1936 WA IT IS THE MISSION OF WHATCOM EDUCATIONAL CREDIT UNION TO PROVIDE THE MEANS FOR MEMBERS TO ACHIEVE THEIR DREAMS. 9 9 353 4 0 0 0 0 53852971 50040476 720777 840474 0 56198 54573748 50937148 0 0 0 0 18194350 19861907 0 0 0 19481646 17337305 37675996 37199212 16897752 13737936 883830603 977324219 727119759 806368475 156710844 170955744 X WHATCOM EDUCATIONAL CREDIT UNION (WECU) IS A MEMBER-OWNED FINANCIAL COOPERATIVE WHERE MEMBERS ARE ENCOURAGED TO SAVE AND BORROW RESPONSIBLY AT FAIR AND COMPETITIVE RATES, IMPROVING THEIR FINANCIAL WELL-BEING AND STANDARD OF LIVING. THIS STATE-CHARTERED CREDIT UNION IS A MEMBER OF THE NATIONAL CREDIT UNION ADMINISTRATION SHARE INSURANCE FUND, AND IS REGULATED BY THE NATIONAL CREDIT UNION ASSOCIATION, AND THE STATE OF WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS - DIVISION OF CREDIT UNIONS. WECU'S MAIN PRODUCTS ARE CONSUMER LOANS, REAL ESTATE LOANS AND COMMERCIAL LOANS TO MEMBERS, WHICH ARE PRIMARILY FUNDED BY DEPOSITS FROM MEMBERS. FINANCIAL EDUCATION AND COMMUNITY SERVICE ARE ALSO AN INTEGRAL PART OF WECU'S OPERATIONS AND SPIRIT OF SERVICE. 0 0 CREDIT CARD LOANS: WECU OFFERS A CREDIT BUILDER LOAN SOLUTION FOR CLASSIC VISA CARDS TO ASSIST MEMBERS WITH ESTABLISHING CREDIT. WECU OFFERS THREE TYPES OF CREDIT CARDS - CLASSIC, PLATINUM, AND BUSINESS. EACH CARD INCLUDES THE FOLLOWING: 1% CASH BACK ON PURCHASES, NO ANNUAL FEE, LOW FIXED ANNUAL PERCENTAGE RATE (APR), 25 DAY GRACE PERIOD, LOW MONTHLY PAYMENTS, TRAVEL ACCIDENT INSURANCE WHEN YOU PURCHASE TRAVEL TICKETS WITH YOUR WECU VISA, SECURE ONLINE SHOPPING WITH VERIFIED BY VISA, OPTIONAL PAYMENT PROTECTION, 24 HOUR ACCESS WITH E-MAX ONLINE BANKING, MOBILE BANKING AND TELE-MAX AUDIO RESPONSE, AND LOCAL SERVICE YOU CAN TRUST. WECU STRIVES TO EDUCATE YOUTH TO BE FINANCIALLY RESPONSIBLE. IN 2001, WECU LAUNCHED A STUDENT VISA PROGRAM WITH OUR CLASSIC VISA CARD. THE GOAL OF OUR STUDENT VISA PROGRAM IS NOT TO PROMOTE SPENDING, BUT RATHER TO PROVIDE KNOWLEDGE AND AN OPPORTUNITY FOR OUR YOUNG MEMBERS TO LEARN ABOUT MONEY MANAGEMENT AND MAINTAINING GOOD CREDIT. OUR PROGRAM IS DESIGNED FOR MEMBERS 16 AND 17 YEARS OF AGE, AND BEGINS WITH AN EDUCATIONAL SEMINAR. STUDENTS ARE REQUIRED TO ATTEND THE SEMINAR, AND WE STRONGLY ENCOURAGE LEGAL GUARDIANS OR PARENT(S) TO ATTEND. THE STUDENT VISA SEMINAR COVERS MANY TOPICS, FROM THE DEFINITION OF CREDIT, TO CREDIT SCORES, HOW LOANS WORK, MONEY MANAGEMENT SKILLS, THE BENEFIT OF A VISA CARD, AND WHAT TO DO IF YOUR CARD IS LOST OR STOLEN. UPON SUCCESSFUL COMPLETION OF THE STUDENT VISA SEMINAR, AND EITHER A COMPLETED APPLICATION WITH PROOF OF INCOME OR PARENT/LEGAL GUARDIAN AS CO-BORROWER, STUDENT MEMBERS WILL BE ISSUED A $250 STUDENT VISA. THE CARD IS GOOD UNTIL AGE 21. HOWEVER, IF THE LOAN IS IN GOOD STANDING AT THE AGE OF 18, STUDENTS CAN APPLY FOR A $500 CLASSIC VISA BY FILLING OUT A NEW APPLICATION WITH PROOF OF INCOME OR PARENT/LEGAL GUARDIAN AS CO-BORROWER. THIS PROGRAM HAS BEEN SUCCESSFUL, AND AS OF THE END OF 2013, WE HAVE 130 STUDENT VISA ACCOUNTS.WECU HAS APPROXIMATELY A 27% MEMBER PENETRATION IN OUR CREDIT CARD PROGRAM. AT YEAR-END, WE HAD OVER 12,000 NEW VISA ACCOUNTS FOR OUR MEMBERS, WITH NEW CREDIT LIMITS TOTALING OVER $4.9 MILLION. OTHER CONSUMER LOANS: WECU OFFERS A CREDIT BUILDER LOAN SOLUTION FOR AUTO LOANS TO ASSIST MEMBERS WITH ESTABLISHING AND/OR LIMITING CREDIT ACTIVITY. ALONG WITH CREDIT CARD LOANS, WECU OFFERS AUTO, BOAT, RV, PERSONAL, SECURED, TIMELINE, AND OTHER CONSUMER LOANS. WE HAVE VERY COMPETITIVE RATES, AND OFTEN FUND VERY SMALL LOANS THAT OTHER FINANCIAL INSTITUTIONS WOULD NOT. IN THIS CAPACITY, WECU FILLS A CRITICAL ROLE IN THE MICRO-LENDING ECONOMY. IN 2013, WE ISSUED 4,317 CONSUMER LOANS (EXCLUDING CREDIT CARDS) TO OUR MEMBERS, TOTALING $46 MILLION. WECU ALSO PROVIDES ACCESS TO THE BALANCE FINANCIAL FITNESS PROGRAM FREE OF CHARGE TO MEMBERS. PROFESSIONAL FINANCIAL COUNSELORS AT BALANCE PROVIDE DIRECTION AND SUPPORT TO ANY OF OUR MEMBERS WHO NEED HELP MANAGING THEIR DEBT AND GETTING THEIR PERSONAL FINANCES BACK ON TRACK. IN 2013, THERE WERE 1,091 INSTANCES OF MEMBERS USING THIS SERVICE. WECU OFFERS SEVERAL TYPE OF BUSINESS LOANS - COMMERCIAL REAL ESTATE, LINES OF CREDIT, COMMERCIAL TERM LOANS, LAND/LOT LOANS AND OTHERS. FOR COMMERCIAL REAL ESTATE LOANS WECU FACILITATES LOANS THROUGH THE SBA 504 LOAN PROGRAM, OFFERS LOANS FOR PROPERTIES IN WHATCOM AND SKAGIT COUNTIES, OFFICE BUILDINGS, CONDOS, 1-4 AND 5-FAMILY NON-OWNER-OCCUPIED PROPERTIES AND OTHERS. AT THE END OF 2013, WECU'S MEMBER BUSINESS LOAN PORTFOLIO CONSISTED OF 451 LOANS FOR A TOTAL OF $166 MILLION. WECU HAS SEEN A STEADY GROWTH IN ITS MEMBER BUSINESS LOAN PORTFOLIO SINCE ITS INCEPTION IN MAY 2001. THIS GROWTH SERVES AS EVIDENCE TO THE NEED FOR A LOCAL FINANCIAL INSTITUTION OFFERING BUSINESS LOANS WITH LOW FEES AND COMPETITIVE RATES. OUR BUSINESS MEMBERS CAN ALSO TAKE ADVANTAGE OF PROGRAMS LIKE FREE ONLINE BILL PAY - SCHEDULED, FAST AND FREE CHECK PAYMENT SERVICE.REAL ESTATE LOANS: WECU OFFERS RESIDENTIAL REAL ESTATE LOANS WITH VERY COMPETITIVE RATES AND LOW FEES, MEMBER EDUCATION SEMINARS RELATED TO BUYING A HOME, AND HOME $TART PROGRAM LOANS THROUGH THE FEDERAL HOME LOAN BANK OF SEATTLE. DURING 2013, WE FUNDED OVER 1,150 RESIDENTIAL FIRST MORTGAGES TO OUR MEMBERS. AT THE END OF 2013, WECU HAD OVER 2,585 RESIDENTIAL FIRST MORTGAGE LOANS OUTSTANDING WHICH EQUATES TO A HOUSEHOLD PENETRATION OF ABOUT 4.9% IN OUR MEMBERSHIP PORTFOLIO. HOWEVER, AS OF THE END OF 2013, WE WERE ALSO SERVICING AN ADDITIONAL 1,974 IN SOLD RESIDENTIAL FIRST MORTGAGES TO OUR MEMBERS, INCREASING OUR OVERALL REAL ESTATE PENETRATION TO ABOUT 8.7%. THE AVERAGE BALANCE OF RESIDENTIAL FIRST MORTGAGE LOANS BEING SERVICED BY WECU IS APPROXIMATELY $159,947. IN ADDITION, WECU PARTICIPATES IN HOME$TART. HOME$TART IS A JOINT PROGRAM THROUGH THE FEDERAL HOME LOAN BANK OF SEATTLE. THE PROGRAM PROMOTES HOMEOWNERSHIP BY HELPING HOMEBUYERS EARNING UP TO 80% OF THE AREA'S MEDIAN INCOME, ADJUSTED FOR FAMILY SIZE, PURCHASE A HOME. THE HOME$TART PROGRAM PROVIDES $3.00 FOR EVERY $1.00 OF A HOMEBUYER'S DEMONSTRATED FUNDS, UP TO $5,000. THE HOME$TART PLUS PROGRAM PROVIDES HOMEBUYERS CURRENTLY RECEIVING PUBLIC HOUSING ASSISTANCE WITH $2 FOR EVERY $1 OF THE HOMEBUYER'S DEMONSTRATED FUNDS, UP TO $10,000. HOME$START GRANTS MAY BE USED FOR DOWN PAYMENTS, CLOSING COSTS, OR REHABILITATION OF AN OWNER-OCCUPIED HOUSING UNIT. IN ADDITION TO HOME$TART WE PROVIDE FIRST TIME HOMEBUYERS EDUCATION COURSES ALONG WITH INDIVIDUAL COUNSELING SESSIONS. WE TAKE PRIDE IN ENABLING OUR NEIGHBORHOOD FAMILIES REALIZE THE "AMERICAN DREAM OF HOMEOWNERSHIP". COMMUNITY INVOLVEMENT: WHILE TECHNICALLY NOT A CHARTERED SERVICE, IT SHOULD BE HIGHLIGHTED THAT WECU'S PASSIONATE COMMITMENT TO COMMUNITY SERVICE IS MANIFESTED IN THE SUPPORT OF A LARGE NUMBER OF LOCAL EDUCATION, HEALTH, AND COMMUNITY CONCERNS. WECU'S DONATIONS AND SCHOLARSHIPS TOTALED OVER $290,911 IN 2013, AND WERE MADE TO APPROXIMATELY 200 ORGANIZATIONS.WECU IS A MAJOR PLAYER IN THE LOCAL ASSET BUILDING COALITION AND A MAJOR PARTNER WITH THE COMMUNITY ACTION AGENCY, OPPORTUNITY COUNCIL. PROJECTS INCLUDE FREQUENT FREE FINANCIAL EDUCATION PRESENTATIONS, PRODUCTION OF FREE FINANCIAL EDUCATION POSTERS AND BROCHURES PROMOTING FREE TAX FILING ASSISTANCE IN PARTNERSHIP WITH AARP. WECU'S SOCIAL RESPONSIBILITY COORDINATOR IS A CUNA CERTIFIED CREDIT UNION FINANCIAL COUNSELOR AND AVERAGED 6 FREE COMMUNITY PRESENTATIONS A MONTH WITH VARIOUS GROUPS.WECU'S TWO EDUCATION CENTERS OFFER SPACE IN WHICH LOCAL NON-PROFIT, OR NEIGHBORHOOD GROUPS, MAY MEET. THE FACILITIES SAW APPROXIMATELY 238 OUTSIDE USES BY 91 COMMUNITY GROUPS. IN ADDITION, WECU PROVIDES MANY FREE OPPORTUNITIES FOR NON-PROFITS TO ADVERTISE. THE SWEAT EQUITY TEAM VOLUNTEERED AT 15 EVENTS WITH 118 WECU STAFF AND BOARD MEMBERS VOLUNTEERING A TOTAL OF 248 TIMES. CHECKING ACCOUNTS/DEBIT CARDS: WECU TRULY STRIVES TO MEET THE NEEDS OF THE UNDERSERVED. OUR CREDIT UNION HAS BEEN DESIGNATED AS A "LOW INCOME CREDIT UNION" (LICU), RECOGNIZING THAT OVER 50% OF THE CREDIT UNIONS MEMBERSHIP ARE PART OF LOW-INCOME HOUSEHOLDS. CHECKING ACCOUNTS AT WECU OFFER MAXIMUM CONVENIENCE WITH NO OR FEW FEES. WE HAVE FIVE CHECKING ACCOUNT OPTIONS: REGULAR CHECKING WITH NO MONTHLY SERVICE FEES OR PER CHECK CHARGES, CHECK PLUS, WHICH IS DIVIDEND BEARING, AND IF YOU MAINTAIN A CERTAIN MINIMUM BALANCE EACH MONTH, THERE IS NO MONTHLY SERVICE FEE; MONEY MARKET CHECKING, BUSINESS ECONOMY CHECKING, AND BUSINESS BASIC CHECKING. CHECKING ACCOUNTS ARE MADE MORE CONVENIENT WITH OUR MOBILE BANKING, DEPOSIT TAKING ATM'S, VISA DEBIT CARD, AROUND THE CLOCK ACCESS WITH E-MAX AND TELE-MAX, DIRECT DEPOSIT, AUTOMATIC PAYMENTS, AND STOP PAYMENT OPTIONS. OVERDRAFT PROTECTION IS ALSO AVAILABLE ON ALL CHECKING ACCOUNTS. OUR VISA DEBIT CARD IS AN ATM CARD, A DEBIT CARD, AND AN ELECTRONIC CHECK ALL ROLLED INTO ONE. WITH THIS CARD, MEMBERS HAVE ACCESS TO MORE THAN 25,000 SURCHARGE-FREE ATMS THROUGHOUT THE UNITED STATES AND CANADA. OUR VISA DEBIT CARDS ARE ONLINE, SO PURCHASES OR WITHDRAWALS COME DIRECTLY OUT OF OUR MEMBERS' CHECKING ACCOUNT. WECU NOW OWNS 17 ATMS THROUGHOUT WHATCOM COUNTY, AND OUR MEMBERS HAVE SURCHARGE-FREE ACCESS TO ALL ATMS THAT DISPLAY THE CO-OP NETWORK LOGO. ABOUT 79% OF OUR ADULT MEMBERS HAVE A CHECKING SERVICE WITH WECU. IN ALL, THERE ARE OVER 52,863 MEMBERS WITH CHECKING SERVICE, AND OVER 45,397 VISA DEBIT CARD HOLDERS. 0 0 1 0 0 0 0 0 0 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 1 26851 0 1 353 1 0 0 0 0 0 0 X 9 9 1 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 X JENNIFER KUTCHER PRESIDENTCEO 3607567716 600 E HOLLY STREET BELLINGHAM WA 982279750 KRISTI LEWIS TYRAN DIRECTOR 4.00 X 0 0 0 CATHIE OBERG BOARD CHAIR 4.00 X 0 0 0 JAMES WALSH DIRECTOR 4.00 X 0 0 0 DAVID WASCHKE DIRECTOR 4.00 X 0 0 0 BRUCE BURPEE DIRECTOR 4.00 X 0 0 0 ASHOK KHANNA DIRECTOR 4.00 X 1569 0 0 PHILIP ISLE BOARD VICE-CHAIR 4.00 X 1857 0 0 DALE ZENDER BOARD SECRETARY 4.00 X 1788 0 0 HARTWELL BRESSLER DIRECTOR 4.00 X 2101 0 0 WAYNE LANGEI PRESIDENT/CEO 40.00 X 1342849 0 40080 ROBERT LANGEI EVP/CFO 60.00 X 207967 0 30468 KATHLEEN GAVIN SENIOR VP 40.00 X 310662 0 34492 JEFF DYKSTRA EVP/COO 60.00 X 202550 0 37620 JENNIFER KUTCHER EVP/CLO 60.00 X 199673 0 33487 LISA LANGEI VP/MARKETING & COMPLIANCE 43.00 X 152406 0 27822 COLIN NAYLOR VP/CIO 45.00 X 156529 0 32168 KENT BOUMA VP/BUSINESS SERVICES 50.00 X 131560 0 29366 2711511 0 265503 11 0 1 0 PEARSON CONSTRUCTION CORP 2034 FRANKLIN ST BELLINGHAM WA 98225 GENERAL CONTRACTOR 3265022 JACK HENRY & ASSOCIATES (JHA) P O BOX 807 MONETT MO 65708 VISA CARD PROCESSOR 776927 DIAMOND MARKETING 710 SW 34TH ST RENTON WA 98057 STATEMENT PROCESSING AND POSTAGE 714493 EN POINTE GLOBAL SERVICES LLC PO BOX 514429 LOS ANGELES CA 90051 COMPUTER HARDWARE AND SOFTWARE PROVIDER 703681 COMPLETE OFFICE 11521 E MARGINAL WAY S SUITE 100 SEATTLE WA 98168 OFFICE EQUIPMENT AND SUPPLIES 506828 24 PROGRAM SERVICE REVENUE 522100 50040476 50040476 50040476 840591 840591 593594 593711 -117 -117 -117 EXTRAORDINARY GAINS 900099 56198 56198 56198 50937148 50937148 0 0 2981092 10764600 2019769 3134551 961895 120627 194550 192470 453488 1067372 908278 258734 135080 3075293 1922699 610130 OTHER OPERATING EXPENSE 8398584 37199212 21010009 20221712 129038020 109651505 603983944 697610877 45975724 15062712 27513783 30913012 4281165 4788127 85320400 100735300 12683282 13403686 883830603 977324219 6381208 7740729 982469 1170334 719756082 797457412 727119759 806368475 X 0 0 0 0 156710844 170955744 156710844 170955744 883830603 977324219 X 13737936 506964 X X 0 1 X 1 0 10000 10000 1 NORTHWEST CREDIT UNION ASSOCIATION 33301 9TH AVE S STE 200 FEDERAL WAY WA 98003 910460483 10000 CREDIT UNION LEGISLATIVE ACTION COUNCIL 601 PENNSYLVANIA AVENUE NW SOUTH BU WASHINGTON DC 200042601 521154361 5730 PART I-A, LINE 1: CONTRIBUTIONS ARE MADE TO A POLITICAL ACTION COMMITTEE (PAC) AS PART OF WECU'S NORTHWEST CREDIT UNION ASSOCIATION (NWCUA) DUES. THE TOTAL CHECK IS PAYABLE TO NWCUA, AND THE PAC PIECE IS DISTRIBUTED BY THE NWCUA TO THE CREDIT UNION LEGISLATIVE ACTION FUND (CULAF), WHICH IS OUR WASHINGTON STATE PAC. CULAF'S FUNDS ARE RAISED FROM THE DUES INVOICES AS PART OF A VOLUNTARY "FAIR-SHARE" CONTRIBUTION LISTED FOR EACH STATE-CHARTERED CREDIT UNION. IN 2013, WECU COLLECTED $5,730.00 FROM EMPLOYEES IN CONTRIBUTIONS DESIGNATED FOR THE CREDIT UNION LEGISLATIVE ACTION COUNCIL (CULAC), WHICH IS OUR FEDERAL PAC, ADMINISTERED BY CUNA. THESE ARE CAMPAIGN CONTRIBUTIONS AT THE FEDERAL LEVEL, AND CULAC MAY ONLY RECEIVE PERSONAL CONTRIBUTIONS. THE CHECKS WERE PAYABLE TO CULAC, AND WE SENT THE CONTRIBUTIONS WEEKLY DURING THE MONTHS OF JULY AND AUGUST 2013 ALONG WITH A WASHINGTON CONTRIBUTOR DISCLOSURE SPREADSHEET. 0 1 10466656 10466656 18964498 3445540 15518958 586280 491383 94897 10705666 9312239 1393427 5252624 1813550 3439074 30913012 OTHER INVESTMENTS 98860000 C FHLB STOCK 1875300 C 100735300 OTHER LIABILITIES 6678942 MEMBER SHARE DRAFT 151309318 MEMBER IRA SHARES 26879938 SHARE AND IRA CDS 18194944 SHARE SAVINGS 592933009 ACCRUED PENSIONS AND PROFIT SHARING 1461261 797457412 X 50937148 0 50937148 0 50937148 37199212 0 37199212 0 37199212 PART X, LINE 2: THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2013 AND 2012. PART IV, LINE 2B: MONEY RECEIVED WITH MORTGAGE PAYMENTS THAT IS HELD IN ESCROW FOR REAL ESTATE TAXES. X 1 1 X X X 0 1 0 WAYNE LANGEI PRESIDENT/CEO 439625 0 87413 0 815811 0 28050 0 12030 0 1382929 0 0 0 ROBERT LANGEI EVP/CFO 172865 0 33392 0 1710 0 23018 0 7450 0 238435 0 0 0 KATHLEEN GAVIN SENIOR VP 173206 0 34789 0 102667 0 23209 0 11283 0 345154 0 0 0 JEFF DYKSTRA EVP/COO 164965 0 33392 0 4193 0 23294 0 14326 0 240170 0 0 0 JENNIFER KUTCHER EVP/CLO 164062 0 33212 0 2399 0 22977 0 10510 0 233160 0 0 0 LISA LANGEI VP/MARKETING & COMPLIANCE 124706 0 25885 0 1815 0 17434 0 10388 0 180228 0 0 0 COLIN NAYLOR VP/CIO 127869 0 26415 0 2245 0 17954 0 14214 0 188697 0 0 0 KENT BOUMA VP/BUSINESS SERVICES 107356 0 22515 0 1689 0 15210 0 14156 0 160926 0 0 0 PART I, LINE 4B SCHEDULE J, PART III, SUPPLEMENTAL INFORMATION. THE CREDIT UNION MADE CONTRIBUTIONS TO A 457 (F) PLAN ON BEHALF OF THE CEO, WAYNE LANGEI, AND THE EXECUTIVE VICE PRESIDENT, KATHLEEN GAVIN, IN THE AMOUNTS OF $508,253 AND $75,349, RESPECTIVELY. SHANNON DYKSTRA 1099 EIN 53-7043345 SPOUSE OF EVP/COO 7553 FEES PAID FOR JANITORIAL SERVICES. 0 FORM 990, PART VI, SECTION A, LINE 2 A SPOUSAL RELATIONSHIP AND A FATHER/SON RELATIONSHIP EXIST WITHIN THE EXECUTIVE MANAGEMENT GROUP. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION HAS MEMBERS. THE CREDIT UNION'S MEMBERS RECEIVE A SHARE OF THE ORGANIZATION'S PROFITS OR EXCESS DUES IN THE FORM OF CASH DIVIDENDS. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO ELECT ONE OR MORE MEMBERS OF THE ORGANIZATION'S GOVERNING BODY, WHETHER PERIODICALLY, OR AS VACANCIES ARISE, OR OTHERWISE. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS OF THE CREDIT UNION HAVE THE RIGHT TO APPROVE THE GOVERNING BODY'S ELECTION AND REMOVAL OF MEMBERS OF THE GOVERNING BOARD, AS WELL AS OTHER MATTERS THAT ARE SUBJECT TO THE APPROVAL OF MEMBERS OF THE CREDIT UNION AS THEY OCCUR. FORM 990, PART VI, SECTION B, LINE 11 OUR FORM 990 TAX FILING IS REVIEWED BY WECU'S ACCOUNTING MANAGER AND VP/CFO IN DETAIL. IT IS COMPARED TO OUR PREVIOUS YEAR'S RETURN, TIED BACK TO OUR FINANCIAL STATEMENTS AND OUR GENERAL LEDGER RECORDS. THEN, IT IS REVIEWED BY OUR PRESIDENT/CEO PRIOR TO FILING. A COPY OF FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C WECU'S CONFLICT OF INTEREST POLICY FOCUSES ON DEFINING AND PREVENTING CONFLICTS OF INTEREST. BEFORE ENGAGING IN ANY ACTIVITY, TRANSACTION, OR BEFORE ENTERING INTO ANY RELATIONSHIP THAT MIGHT GIVE RISE TO A CONFLICT OF INTEREST, EMPLOYEES MUST SEEK REVIEW FROM THEIR MANAGERS, THE INTERNAL AUDITOR, OR THE HUMAN RESOURCES DEPT. WECU'S HR DEPT., STAFF LIAISON, AND INTERNAL AUDITOR ARE RESPONSIBLE FOR ENSURING THAT NO CONFLICT OF INTERESTS OCCUR THAT COULD HAVE A NEGATIVE EFFECT ON WECU. IF ANYONE SUSPECTS A CONFLICT OF INTEREST, IT IS REPORTED TO MANAGEMENT, THE STAFF LIAISON, THE HR DEPT., OR THE INTERNAL AUDITOR. WECU HAS VARIOUS ANNUAL REVIEWS AND CONTROLS IN PLACE TO MONITOR SITUATIONS IN WHICH A CONFLICT OF INTEREST MIGHT ARISE, WHICH ARE PERFORMED BY MANAGEMENT, OR OUR INTERNAL AUDITOR. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR THE PRESIDENT/CEO IS DETERMINED BY THE DETAILS OF THE EMPLOYMENT CONTRACT SET FORTH BETWEEN THE BOARD OF DIRECTORS AND THE PRESIDENT/CEO. TO ENSURE THAT PAY RATES ARE COMPETITIVE WITHIN THE MARKETPLACE, THE CREDIT UNION PARTICIPATES IN A NUMBER OF INDUSTRY-SPECIFIC SALARY/COMPENSATION SURVEYS SUCH AS THOSE SPONSORED BY CREDIT UNION NATIONAL ASSOCIATION (CUNA), CREDIT UNION EXECUTIVE SOCIETY (CUES), AND THE WASHINGTON BANK AND CREDIT UNION SALARY AND BENEFIT SURVEY. UTILIZING DATA FROM THESE SURVEYS, WECU'S PRESIDENT/CEO AND EVP DETERMINE THE OVERALL SALARY STRUCTURE. FORM 990, PART VI, SECTION C, LINE 19 WECU HAS A MEMBER RIGHTS POLICY IN WHICH WE STIPULATE HOW OUR MEMBERS CAN REQUEST AND RECEIVE CREDIT UNION CORPORATE RECORDS, WHICH INCLUDE OUR ARTICLES AND BYLAWS, MINUTES OF MEMBERSHIP MEETINGS AND ANNUAL FINANCIAL REPORT, FINANCIAL REPORTS AND FORMS, CODE OF ETHICS, BOARD GOVERNANCE POLICIES, AND BOARD OF DIRECTORS AND SUPERVISORY COMMITTEE NAMES. A MEMBER REQUEST MUST BE SUBMITTED IN WRITING TO THE CREDIT UNION AND SPECIFICALLY IDENTIFY THE DISCLOSABLE RECORDS REQUESTED. THE CREDIT UNION MAY REQUIRE THE MEMBER TO SIGN A CONFIDENTIALITY AGREEMENT TO PROTECT THE CREDIT UNION FROM UNAUTHORIZED DISCLOSURE OF CERTAIN PROPRIETARY INFORMATION. IF ANY DOCUMENTS CONTAIN MEMBER INFORMATION, IT WILL BE EXPUNGED FROM THE DOCUMENT BEFORE BEING PROVIDED TO THE PUBLIC. FORM 990, PART XI, LINE 9: NET CHANGE IN UNREALIZED GAIN ON AFS INVESTMENTS 506,964. FORM 990, PART XII, LINE 2C: THE SUPERVISORY COMMITTEE ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDITED FINANCIAL STATEMENTS.