Credit Unions Chartered in the State of Michigan

“The credit union currently has approximately 77,000 members.”

“The members of the credit union are responsible for electing the board of directors.”

“The members of the credit union must approve a merger into another credit union. All other decisions are made by the board of directors.”

“Before the 990 was filed, an electronic copy of the draft was sent to the board of directors and vp of finance, via email, for their review. All of the board members were given the opportunity to contact the credit union's management with any questions or concerns they had regarding the form 990 return.”

“Audit link is a service we use to monitor all employee and board member accounts. Accounts are monitored weekly by audit link and a report is sent to human resources with the findings, human resources does a review of accounts and investigates if needed. Compliance with the conflict of interest policy is monitored through discussions at the board level. If a conflict arises the affected board member will abstain from voting.”

“The board of directors is aware of the use of the comp ease software for assisting with compensation for all employees. Compensation for the ceo, other officers, and key employees is approved by both human resources and the ceo or the board of directors. This process was last completed during 2017.”

“Governing documents and financial statements are available upon request.”

“Acquired equity on business acquisition 10,505,650. Bargain purchase gain 278,871.”

“The board of directors has established the supervisory committee which is responsible for the oversight of the audit review and the selection of an independent auditor. The supervisory committee approves an independent auditor each year and meets to review the independent auditor's report after the audit is complete. The process has not changed from the prior year.”

“Schedule l is not required for loans receivable balances on form 990, part x, line 5 if the loans are made by the credit union to the directors, officers, and key employees on the same terms offered to other members of the credit union. Therefore, the credit union has included approximately $2,697,000 and $1,687,000 of receivables from current officers, directors, trustees, key employees, and highest compensated employees for 2017 and 2016, respectively, within form 990, part x, line 7.”

“On april 1, 2017 the credit union acquired all of battle creek area federal credit union's (battle creek) assets and liabilities. On october 1, 2017 the credit union acquired all of post credit union's (post) assets and liabilities. The assumed assets and liabilities were recorded at fair value. The results of battle creek and post's operations have been included in the credit union's financial statements since the date of acquisition. No consideration was paid by the credit union for either acquisition. The fair value of the assets acquired in the battle creek merger was greater than the fair value of the liabilities and resulted in a bargain purchase gain of $197,219 (net of $3,238,121 recorded as an increase in members' equity from acquisition). The fair value of the assets acquired in the post merger was greater than the fair value of the liabilities and resulted in a bargain purchase gain of $81,652 (net of $7,267,529 recorded as an increase in members' equity from acquisition).”