Sooper Credit Union DBA Climb Credit Union

“In 2015, the Credit Union's bylaws were amended to add persons who live or work in Jefferson County, CO to its field of membership.”

“Persons eligible of membership include employees (and family members) of King Soopers, City Market, and other businesses and members of associations generally in the Denver, Colorado Springs, and Grand junction, Colorado areas. Membership also includes persons 55 years and older living within 25 miles of a Sooper Credit Union branch. In 2015, the Credit Union added persons who live or work in Jefferson County, CO to its field of membership. A $5 minimum deposit is required for membership.”

“Board members are elected at the Credit Union's annual meeting.”

“Merger - Requires two thirds majority vote of voting members.Charter conversion - Requires two thirds majority vote of voting members.Dissolution and liquidation - Requires majorty vote of entire membership.”

“The Form 990 is prepared by an independent CPA Firm and then reviewed by the Credit Union's AVP Accounting before it is electronically filed.”

“Conflict of Interest statements are signed and reviewed annually.”

“The Executive Committee of the Board recommends the CEO's compensation package to the entire Board for acceptance. The compensation of other officers is reviewed annually by their supervisor, documented in the employee personnel file, and all compensation is approved in the budget process.”

“Documents would be made available to members for review at the Credit Union's offices.”

“Client Note 1 - UBIT REPORTING:In May 2009, a federal court jury in Wisconsin ruled in the Community First Credit Union case that credit life and disability insurance and GAP insurance coverage made available to member-borrowers by Community First Credit Union of Appleton, Wisconsin were "substantially related" to Community First's tax exempt purpose. The court granted a tax refund to Community First based on the jury's verdict, confirming that credit insurance and GAP were not subject to the unrelated business income tax (UBIT). The IRS did not appeal the case.In November 2009, in the Bellco Credit Union case, the U.S. District Court in Colorado ruled that commissions received by Bellco Credit Union of Greenwood Village, Colorado from the sale of financial products to Bellco members, were not subject to UBIT. The court ruled that the sale of those financial products to Bellco members was "substantially related" to Bellco's tax-exempt purpose of promoting thrift among its members, and the resulting income was exempt from UBIT.In April 2010, the court in Colorado issued its second and final decision in the Bellco Credit Union case, holding that (i) credit life and disability insurance was "substantially related" to Bellco's tax-exempt purpose of promoting thrift among its members, and (ii) Bellco income from AD&D insurance sold to members by an independent marketing company, where Bellco was essentially limited to allowing use of its name and brand, providing member contact information, and reviewing and approving (but not creating) the marketing materials, represented passive "royalty" income exempt from UBIT. On October 19, 2010 the U.S. Department of Justice abandoned its plan to appeal the federal judge's favorable credit union rulings in the Bellco case.The decisions in these court cases are now definitive statements of the law, are not subject to further review, and provide "substantial authority" that income from the sale of credit life and disability insurance, GAP coverage, financial products sold to credit union members, and AD&D insurance sold via direct mail is exempt from UBIT. As such, for 2015, Sooper Credit Union is not reporting these income sources as subject to UBIT, but is filing a Form 990-T to report income subject to UBIT from a pass-through entity.”

“The Credit Union participates in an indirect lending program that allows a member to obtain financing of a purchased automobile at the point of purchase at the dealership. CUILA, LLC (dba CU Direct Connect) is the entity that facilitates the indirect program for participating credit unions. The Credit Union's EVP is a Master Committee Member of CUILA, LLC. The fees paid to CUILA, LLC are the same fees that are paid by all participants in the program.”

“THE CREDIT UNION RECEIVES AUDITED FINANCIAL STATEMENTS PREPARED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. THE AUDIT IS CONDUCTED, HOWEVER, ON THE CREDIT UNION'S SEPTEMBER 30, 2014 and 2015 FINANCIAL STATEMENTS. THUS, QUESTION 2a IS ANSWERED "NO". THE CREDIT UNION DOES HAVE A COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT, BUT QUESTION 2c IS ANSWERED NO SINCE THE 12/31/15 FINANCIAL STATEMENTS WERE NOT AUDITED.”