Commonwealth Central Credit Union

“Credit union depositors are considered members of the credit union. The field of membership is defined in the credit union's charter and bylaws. This generally consists of individuals who live or regularly work in the county of santa clara, california. In addition to a regularly qualified member, the spouse of a member, the blood or adoptive relatives of either of them, and their spouses may be members.”

“Board of directors are elected by the membership.”

“The form 990 is prepared by the organization's outside public accounting firm based on information provided by management. Once the draft of the return is prepared, it is provided to the organization for review with any changes being incorporated before it is reviewed by management. The form 990 is then provided to the governing body prior to filing.”

“In accordance with our board policy, personnel policies and non-disclosure/confidentiality agreement (that contains a conflict of interest clause), commonwealth employees are required to disclose the following information upon hire and at any time during their employment: - employee and relative accounts: upon hire and then on an annual basis, all employees are required to complete a form disclosing any member accounts belonging to them and/or their family members. - conflicting outside employment: in conjunction with their offer of employment letters, new employees are required to sign a non-disclosure/confidentiality agreement which includes a conflict of interest clause relating to outside employment. Additionally, new and existing employees are required to report to their manager any outside employment so that the ceo and vp of human resources can determine if a conflict of interest exists. - conflict of interest: as required by commonwealth's code of ethical conduct, all volunteers and employees must disclose and report to the president/ceo any possible conflict of interest in their business dealings. Furthermore, all employees are required to disclose to the president/ceo any gifts, gratuities, amenities, meals, entertainment, etc. To determine whether or not acceptance of such items would be deemed a conflict of interest.”

“Commonwealth retains an outside compensation consulting firm, balancedcomp, to assist in its salary administration efforts. Specifically, balancedcomp works with the president/ceo and the vp of human resource development to develop a comprehensive compensation structure that includes annual market evaluations, salary grade structure and an integrated job description database. The current compensation structure was initially developed and implemented in 2003. Since then, the structure has been maintained and administered by the credit union's human resources department with the assistance of balancedcomp using a compensation software package. On an annual basis, balancedcomp participates (on behalf of commonwealth) in at least 10 salary surveys for use in benchmarking pay data with market rates. The pay ranges are adjusted annually to reflect changes in market conditions and the ranges in corporate geographic wage differentials. The vp of human resources provides oversight to the human resources staff in salary administration practices by utilizing all of the above-mentioned resources provided by balancedcomp. Furthermore, the hr department administers compensation through the management of comparatios. (the comparatio is a mathematical calculation that identifies the relationship between actual pay and market rate for a person, department or the total credit union. For example, a 90% comparatio for an individual says that the individual is being paid at 90% of the prevailing market rate for his/her job. The comparatio is determined by dividing actual pay by the rate established as the mid-point for the grade.) as market conditions necessitate, a mid-year review of the compensation structure's market competitiveness is conducted with the assistance of balancedcomp. Executive compensation practices also employ the same methodologies as outlined above, and balancedcomp provides guidance and recommendations as needed. Pay grades and ranges are established for each senior management level position and comparatios are also used with such positions. Hrn performance solutions also provides consulting services for the ceo's compensation package by employing the same methodologies (i.e. Pay grade, pay range, salary surveys, comparatios, etc.) when working with the board's compensation committee members.”

“Governing doucments and policies are available upon request. Financial statements are publically available at www.ncua.gov and in our branch offices.”

“Cash surrender value changes on life insurance policies 293,685.”