State Chartered Credit Unions in North Carolina

“LCCU had 55,808 member-owners in 2013.”

“LCCU's member-owners elect the board of directors at the annual meeting.”

“LCCU has a comprehensive process to review the 990. The 990 is first completed by the Finance Department after the organization's audited financial statements are complete. The 990 is then reviewed by the CEO and sent to the Board of Directors for their review before being submitted to the IRS.”

“LCCU's conflict of interest policy states that the responsibility for avoiding and disclosing both actual and potential conflicts of interest falls on the individual directors and committee members themselves. Failure to comply with LCCU policies concerning conflict of interest may subject the director or committee member to removal according to the by-laws of LCCU. A conflict of interest is present whenever a director or committee member has a material financial interest in a proposed contract or transaction to which LCCU may be a party. A conflict of interest may also exist where the private interests of a director or committee member and his or her official LCCU responsibilities conflict. The definition of a director or committee member also includes the individual's immediate family, which includes a person's spouse, parents, siblings, children, life partner and anyone living within the person's household as a family member. The Board of Directors, without the participation or vote of the director involved, will evaluate disclosures and any other information concerning actual and potential conflicts of interest and take the appropriate action in the best interests of LCCU. The Board may ask disinterested parties to review the actual or potential conflicts of interest and recommend a course of action based on statutes, regulations, by-law provisions and internal policies.”

“The process for determining compensation for LCCU's CEO is handled by the Board of Directors. The Board Chair distributes an annual review survey at the end of each fiscal year to all employees that are supervised by the CEO to determine job performance. The Board Chair presents this data to the full Board without the presence of the CEO. A new salary is decided based on job performance, credit union performance, and compensation data for similarly held positions, and is effective as of the start of the new fiscal year. This process is documented by the Secretary of the Board of Directors and the new salary is communicated by the Board Chair to the Human Resources department, which documents and implements the salary change. The last review was undertaken in 2014. The CEO is responsible for conducting reviews and salary changes for all other officers and key employees. LCCU did not have any other officers or key employees as defined by the IRS in 2013.”

“LCCU makes its governing documents and conflict of interest policy available to the public upon request. LCCU makes its financial statements available to the public by publishing a version of this on its website monthly and in its member statement bi-monthly. An extended version of its financials is available to the public upon request.”

“All loans for current officers are loans from the credit union made on the same terms as offered to other members of the credit union. Therefore, we are not required to complete Schedule L.”