2015-11-10T11:45:34-06:00 2014-12-31 410746749 CLIFTONLARSONALLEN LLP PO BOX 217 AUSTIN MN 55912 990 2014-01-01 410738787 ASSOCIATED HEALTHCARE CREDIT UNION ASSO 6512415598 360 SHERMAN STREET SUITE B-10 SAINT PAUL MN 55102 MICHAEL BERG VICE PRESIDENT FINANCE 6513834000 2015-11-04 1 TANYA MEDGAARDEN P01717240 5074347000 2014 2016-04-25 22:37:26Z THERESA MALONE 360 SHERMAN STREET SUITE B-10 SAINT PAUL MN 55102 9137579 0 X WWW.AHCU.ORG X CU 1953 MN TO PROVIDE LENDING, SAVINGS AND OTHER FINANCIAL SERVICES TO ITS QUALIFYING MEMBERS AT TERMS GENERALLY BETTER THAN AVAILABLE IN THE MARKETPLACE AND WITH A "SERVICE-BASED EMPHASIS" THAT RECOGNIZES THE MEMBERS' STATUS AS "OWNERS". 11 11 51 14 0 0 0 0 4490654 4577344 261316 382035 0 0 4751970 4959379 0 0 152049 133290 1868826 1720689 0 0 0 2717778 2396565 4738653 4250544 13317 708835 97957693 97248012 89958650 88443597 7999043 8804415 TO PROVIDE LENDING, SAVINGS AND OTHER FINANCIAL SERVICES TO ITS QUALIFYING MEMBERS AT TERMS GENERALLY BETTER THAN AVAILABLE IN THE MARKETPLACE AND WITH A "SERVICE-BASED EMPHASIS" THAT RECOGNIZES THE MEMBERS' STATUS AS "OWNERS". 0 0 THE CREDIT UNION PROVIDES A VARIETY OF DEPOSITORY SERVICES TO OUR MEMBERSHIP. WE HAD 14,604 MEMBER ACCOUNTS WITH DEPOSITS OF $88,110,893 AS OF DECEMBER 31, 2014. THE CREDIT UNION PROVIDES A VARIETY OF LENDING SERVICES TO OUR MEMBERSHIP. WE HAD 6,486 LOANS OUTSTANDING AS OF DECEMBER 31, 2014 WITH BALANCES OF $66,638,607. THE CREDIT UNION PROVIDES ACCESS TO MEMBERS TO THEIR ACCOUNTS VIA ELECTRONIC BANKING, ATM NETWORK, SHARED BRANCHING, AND IN PERSON. 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1230 0 1 51 1 0 0 0 0 0 0 X 11 11 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 X SYDNEY LEE 6513834003 360 SHERMAN ST B-10 ST PAUL MN 55102 JACK ROE TREASURER 1.00 X 130 0 0 JAMES VAN DRASEK DIRECTOR 1.00 X 160 0 0 THOMAS GAVINSKI CHAIR 1.00 X 200 0 0 PATTI ELLIOT-ALLEN DIRECTOR 1.00 X 110 0 0 DENNIS O'KEEFE DIRECTOR 1.00 X 140 0 0 MARK BORTNEM VICE CHAIR 1.00 X 180 0 0 MICHAEL NASS DIRECTOR 1.00 X 200 0 0 CHRISTOPHER MERZ DIRECTOR 1.00 X 220 0 0 ALICE PERRY DIRECTOR 1.00 X 90 0 0 LINDA ZDON SECRETARY 1.00 X 140 0 0 KATINA MCDUGLE DIRECTOR 1.00 X 160 0 0 JERRY ZIEGLER CEO (PART YEAR) 40.00 X 94838 0 13222 COLLEEN JOHNSON VP OPERATIONS 40.00 X 84119 0 29060 KERRI BARSNESS VP LENDING 40.00 X 79191 0 11345 MICHAEL BERG VP FINANCE 40.00 X 8173 0 139 THERESA MALONE CEO (PART YEAR) 40.00 X 47819 0 7945 315870 0 61711 0 0 0 0 FISERV 5600 CROOKS ROAD SUITE 101 TROY MI 48098 SYSTEM USED FOR ALL MEMBER SHARE, LOAN, 323794 1 LOAN INTEREST 900099 3178383 3178383 FEES/CHARGES 522100 754256 754256 OTHER INCOME 524298 644705 644705 4577344 380668 380668 4176042 3525 4171400 6800 4642 -3275 1367 1367 4959379 4577344 0 382035 133290 377581 1034842 55797 120564 131905 935495 356102 37001 555 121675 PROFESSIONAL/OUTSIDE 476205 LOAN SERVICE EXPENSE 227822 LOAN LOSS PROVISION 120297 EDUCATION/PROMOTION 70255 51158 4250544 1129042 1286248 39231901 23780118 52755196 66171185 100457 195531 983879 668119 180557 315760 2491867 3474668 968977 958780 304612 186589 795084 879133 97957693 97248012 102833 332704 89855817 88110893 89958650 88443597 X 0 0 0 0 7999043 8804415 7999043 8804415 97957693 97248012 708835 96537 0 X X 0 0 0 363252 208029 155223 620627 460090 160537 315760 SHARES 43825902 SHARE DRAFTS 11438128 CERTIFICATES 10748422 MONEY MARKET 19731128 IRA ACCOUNTS 2367313 88110893 X PART X, LINE 2: AS ALLOWED BY STATE REGULATORY AUTHORITIES, THE AUDIT IS DONE AS OF JUNE 30. THE REPORTING PERIOD FOR THE AUDIT, THEREFORE, DOES NOT MATCH THE REPORTING PERIOD FOR THE 990. PER FOOTNOTE 1 IN THE CREDIT UNION'S JUNE 30, 2014 FINANCIAL STATEMENTS, AHCU IS EXEMPT, UNDER IRC 501 (C) (14), FROM FEDERAL AND STATE INCOME TAXES. CERTAIN PRODUCTS AND SERVICES PROVIDED BY SELECT STATE CHARTERED CREDIT UNIONS HAVE BEEN DEEMED BY THE INTERNAL REVENUE SERVICE (IRS), IN TECHNICAL ADVICE MEMORANDUMS (TAMS) RELEASED IN 2007, TO BE UNRELATED TO THE SPECIFIC ENTITY'S EXEMPT PURPOSE. AS PRESENTED IN THE TECHNICAL ADVICE MEMORANDUMS THE NET TAXABLE INCOME FROM THESE PRODUCTS AND SERVICES WOULD BE SUBJECT TO INCOME TAXES. CREDIT UNIONS HAVE LITIGATED AGAINST THE IRS POSITIONS NOTED IN THE TAMS AND HAVE BEEN SUCCESSFUL IN HAVING COURTS DECLARE IN 2009 AND 2010 THAT REVENUE FROM INSURANCE PRODUCTS SOLD TO MEMBERS, HELPING THEM PROTECT THEIR FINANCIAL WELLBEING, QUALIFIES AS EXEMPT PURPOSE INCOME, CONTRARY TO THE IRS POSITION IN THE TAMS THE CREDIT UNION HAS FILED TAX RETURNS IN THE PAST FOR ACTIVITIES THEY HAVE DEEMED TAXABLE AND HAS A NET OPERATING LOSS CARRYFORWARD AS OF THE 2013 CALENDAR YEAR. THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. IN THE OPINION OF MANAGEMENT, ANY LIABILITY RESULTING FROM TAXING AUTHORITIES IMPOSING INCOME TAXES ON THE NET TAXABLE INCOME FROM ACTIVITIES POTENTIALLY DEEMED TO BE UNRELATED TO THE CREDIT UNION'S EXEMPT PURPOSE IS NOT EXPECTED TO HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. THE CREDIT UNION EVALUATED ITS TAX POSITIONS AND DETERMINED NO UNCERTAIN TAX POSITIONS EXIST AS OF JUNE 30, 2014 AND SEPTEMBER 30, 2013. THE CREDIT UNION'S 2010 THROUGH 2013 TAX YEARS ARE OPEN FOR EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. FORM 990, PART VI, SECTION A, LINE 6 THE CREDIT UNION IS COMPRISED OF A SINGLE CLASS OF MEMBERS, EACH OF WHICH HAS EQUAL VOTING RIGHTS AT THE ANNUAL MEETINGS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE CREDIT UNION HAVE THE AUTHORITY TO ELECT THE MEMBERS OF THE BOARD OF DIRECTORS FOR THREE-YEAR TERMS ON A ROTATING BASIS. THE BOARD OF DIRECTORS APPOINT VOLUNTEERS TO SERVE AS OFFICERS AND ON ANY COMMITTEES, SUCH AS THE SUPERVISORY COMMITTEE. FORM 990, PART VI, SECTION A, LINE 7B CHANGES TO THE GOVERNING DOCUMENTS (BYLAWS) MUST BE APPROVED BY THE MEMBER-OWNERS AFTER THEY HAVE BEEN APPROVED BY THE BOARD OF DIRECTORS AND THE REGULATORY AGENCY. APPROVAL OCCURS WHEN AT LEAST 50% OF THE MEMBER-OWNERS VOTE TO APPROVE. FORM 990, PART VI, SECTION B, LINE 11 PRIOR TO BEING FILED WITH THE IRS, A COPY OF THE IRS FORM 990 AND RELATED SCHEDULES ARE REVIEWD BY THE CEO, INCLUDING A CONFIRMATION OF THE ACCURACY. ALSO, A COPY WILL BE MADE AVAILABLE TO THE BOARD OF DIRECTORS VIA SECURE WEBSITE BEFORE FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS AND OFFICERS ANNUALLY COMPLETE A SURVEY RELATED TO LOANS, BUSINESS RELATIONSHIPS, AND FAMILY MEMBERS THAT COULD, OR DO, CREATE A CONFLICT OF INTEREST. THESE ARE SUMMARIZED AND MAINTAINED IN A DOCUMENT PRESENT AT EACH BOARD MEETING. CONFLICTS OF INTEREST ARE DETERMINED BY A REVIEW OF THE POTENTIAL CONFLICTS BY THE CEO AND THE BOARD OF DIRECTORS. IF A CONFLICT EXISTS, THEN THE CONFLICTED BOARD MEMBER OF OFFICER IS EXCLUDED FROM DISCUSSIONS AND VOTES RELATED TO ANY POTENTIAL OR EXISTING RELATIONSHIPS INVOLVING THE CONFLICT OF INTEREST. IF IT IS DETERMINED THAT A CONFLICT OF INTEREST WAS INTENTIONALLY HIDDEN BY A BOARD MEMBER, THEN THE SITUATION WOULD BE INVESTIGATED BY THE SUPERVISING COMMITTEE AND THE BOARD MEMBER COULD BE SUSPENDED AND SUBJECT TO DISMISSAL AT A SPECIAL MEETING OF ALL OF THE MEMBER-OWNERS. ADDITIONALLY, THE REMAINING BOARD MEMBERS AND OFFICERS WILL REVIEW, FOR FAIRNESS, ALL PAST TRANSACTIONS INVOLVING THE CONFLICT OF INTERESTS. IF A TRANSACTION APPEARS TO LACK ARMS-LENGTH, EITHER TO THE DETRIMENT OF THE CREDIT UNION, OR TO THE UNFAIR ADVANTAGE OF THE BOARD MEMBER, THEN ALL LEGAL REMEDIES WILL BE CONSIDERED. FORM 990, PART VI, SECTION B, LINE 15A THE PROCESS USED TO SET THE CEO'S ANNUAL SALARY IS BASED ON A COMBINATION OF COMPARISON TO COMPARABLE SIZED CREDIT UNIONS THROUGH USE OF CUNA'S ANNUAL COMPENSATION SURVEY AND ATTAINMENT IN THE CURRENT YEAR OF PREDEFINED PERFORMANCE OBJECTIVES SET FOR THE CEO PERSONALLY AND THE CREDIT UNION. THIS PROCESS IS PERFORMED BY A SUBCOMMITTEE OF THE BOARD AND PRESENTED TO THE FULL BOARD FOR APPROVAL. THIS PROCESS IS COMPLETED BY THE FIRST MONTH OF THE FOLLOWING YEAR AND IS APPROVED AT THE JANUARY BOARD MEETING. THE CEO REVIEWS THE PERFORMANCE AND GOALS OF OTHER OFFICERS AND KEY EMPLOYEES AND GRANTS ANY INCREASES WITHIN BUDGET THAT IS SET FOR THE YEAR. FORM 990, PART VI, SECTION C, LINE 19 THE CREDIT UNION'S FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC THROUGH POSTING IN CREDIT UNION OFFICES AND ALSO AT ANNUAL MEETINGS. THE CREDIT UNION'S CONFLICT OF INTEREST POLICY AND BY-LAWS ARE AVAILABLE TO THE PUBLIC THROUGH THE ORGANIZATION'S WEBSITE. FORM 990, PART XII, LINE 2B: THE AUDIT IS DONE AS OF JUNE 30. THE REPORTING PERIOD FOR THE AUDIT, THEREFORE, DOESN'T MATCH THE REPORTING PERIOD FOR THE 990.