New York State Chartered Credit Unions - Progressive Credit Union

“Each member is entitled to one vote for selection of appointment of Board of Directors.”

“The members are required to approve changes to the reporting organization's bylaws.”

“Form 990 is reviewed by management prior to filing.”

“The reporting organization's internal auditor annually reviews the completed conflict of interest response forms to identify and address potential insider transactions.”

“The reporting organization obtains comparables which the Board of Directors utilizes in establishing compensation of the CEO/Treasurer. This is contemporaneously documented in the Board of Director's minutes.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“FORM 990-T WAS FILED EXCLUSIVELY TO REPORT QUALIFIED TRANSPORTATION AND PARKING FRINGE BENEFITS, AND ANY ON-PREMISES ATHLETIC FACILITIES UNDER SECTION 512(A)(7). THE REPORTING ORGANIZATION IS AWAITING GUIDANCE FROM IRS BEFORE FILING 2018 AMENDED FORM 990-T TO REQUEST REFUND OF UNRELATED BUSINESS INCOME TAX PURSUANT TO H.R. 1865 THAT RETROACTIVELY REPEALED THE UNRELATED BUSINESS INCOME TAX ON QUALIFIED TRANSPORTATION FRINGE BENEFITS/PARKING UNDER INTERNAL REVENUE CODE SECTION 512(A)(7). FORM 990, PART VI, SECTION A, LINE 6: The reporting organization has an open charter to admit members and include all account holders.”

“Unrealized net actuarial pension losses.................$(294,351) reclassification adjustment for amortization of prior service cost and net loss included in pension expense....................................$ 484,868 transfer of net assets to penfed credit union..........44,945,044 total..................................................45,135,561”

“On January 1, 2019, the New York State Chartered Credit Unions Progressive Credit Union completed a merger with Pentagon Federal Credit Union Foundation ("PenFed") under the applicable provisions of Accounting Standards Codification ("ASC") 805, "Business Combinations". The merger was approved by the NCUA as an emergency merger on November 29, 2018, whereby PenFed, upon merger and in consideration for the assets of the organization acquired the liabilities of the organization, and assumed the Credit Unions open field of membership charter for its exclusive use. The operations of the organization are included with PenFeds consolidated balances at the merger date. Under this guidance, the assets acquired and the liabilities assumed by PenFed are recorded at their respective fair values at the merger date.”

“Progressive Credit Union ("PCU") was unable to timely file 2018 Form 990 as a result of significant delays in obtaining financial information and the issuance of audited financial statements. PCU filed Form 8868 to extend the filing deadline of Form 990 to November 15, 2019. As a result of the merger with Pentagon Federal Credit Union, PCU was required to obtain a valuation report required for its audited financial statements. The audited financial statements were issued December 30, 2019 because of additional audit procedures with the valuation report. The failure of PCU to file its final Form 990 was due to reasonable cause and not willful neglect. Additionally, PCU seeks penalty relief under Section 20.1.1 of the Internal Revenue Manual. It represents the following: 1. Progressive Credit Union didnt previously have penalties for the 3 tax years prior to the tax year in which they received a penalty. 2. Progressive Credit Union filed all currently required returns or filed an extension of time to file. 3. Progressive Credit Union has paid any tax due. (Note, Form 990 is an information return and has no tax liability.) Theres no need for Progressive Credit Union to take additional measures to help ensure timely filing of Form 990 as 2018 Form 990 is its final return.”