2012-10-22T11:47:34-05:00 2011-12-31 420714325 MCGLADREY LLP 201 N HARRISON STREET SUITE 300 DAVENPORT IA 528011999 990 2011-01-01 366068452 DHCU COMMUNITY CREDIT UNION DHCU 3097967544 P O BOX 1550 MOLINE IL 61265 TERRY BRAHM 3097967544 2012-10-19 1 JOHN J ROMANO P00227323 5638884000 2011 2016-02-24 21:20:13Z TERRY BRAHM P O BOX 1550 MOLINE IL 61265 24447793 0 3149 X WWW.DHCU.ORG X 1935 IL WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 9 2 129 0 82769 -5243 0 0 15494976 15084653 2550718 2351676 5836493 6116006 23882187 23552335 37200 52182 0 0 6651514 7039089 0 0 0 14797310 13897893 21486024 20989164 2396163 2563171 429574005 437165945 390637090 395941334 38936915 41224611 WORKING TOGETHER TO IMPROVE THE ECONOMIC WELL-BEING AND QUALITY OF LIFE FOR ALL MEMBERS THROUGH EXCELLENT SERVICE. 0 0 PROVIDE CONSIDERABLE LOANS TO MEMBERS. TOTAL CONSUMER AND MORTGAGE LOANS PROVIDED WERE 8,096. PROVIDED DEPOSITORY SERVICES TO APPROXIMATELY 38,211 MEMBERS. PROVIDED CREDIT CARD SERVICES TO APPROXIMATELY 9,723 MEMBERS. 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 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 14715 0 1 129 1 1 1 0 0 0 0 0 X 9 2 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X TERRY BRAHM CEO 3097967544 1900 52ND AVENUE MOLINE IL 612661550 STEVE KRATZBERG 1.00 X X 0 0 0 TERESA VANDYKE 1.00 X X 0 0 0 ROBERT JECKS 1.00 X 0 0 0 WILLIAM RON TRICE 1.00 X 0 0 0 VINCENT PAPISH JR 1.00 X 0 0 0 FLOYD MITTON 1.00 X 0 0 0 WILLIAM LAUPER 1.00 X 0 0 0 JULIE GERMERAAD JAMES 1.00 X 0 0 0 ROBERT GOMEZ 1.00 X 0 0 0 TERRY BRAHM 40.00 X 338990 0 29183 KEVIN PIEPER 40.00 X 174422 0 26039 JAY ENGLAND 40.00 X 176670 0 26039 MATTHEW MCCOMBS 40.00 X 60625 0 5269 DENISA CAROTHERS 40.00 X 111891 0 6672 862598 0 93202 4 0 1 0 REFINERY DESIGN COMPANY 2001 ALTA VISTA STREET DUBUQUE IA 52001 SIGNAGE, PRINTING, & MAILING SERVICES 287638 DATAMAIL 747 EAST WHITCOMB AVENUE MADISON HEIGHTS MI 48071 STATEMENT PROCESSING SERVICE 142302 WEST MAINTENANCE 4235 KENNEDY DRIVE SUITE 2 EAST MOLINE IL 61244 MAINTENANCE SERVICES 130067 JACK HENRY ASSOCIATES INC PO BOX 503328 ST LOUIS MO 63150 IT SERVICES 123492 WESCORN RESOURCES GROUP 123 SOUTH MARENGO AVENUE PASADENA CA 91101 ONLINE SERVICES 120126 8 LOANS INTEREST 522100 13862000 13862000 LOAN FEES 522100 629894 629894 ATM FEES 522100 592759 509990 82769 15084653 1186881 1186881 713751 1346502 72002 823456 641749 523046 1164795 1164795 OVERDRAFT CHARGES 522100 2475403 2475403 DEBIT CARD INCOME 522200 1544305 1544305 VISA CHARGE INCOME 522200 715231 715231 1381067 1381067 6116006 23552335 21117890 82769 2351676 X 52182 837237 4378833 241394 1188960 392665 128357 61987 14326 949712 368278 460778 372269 15877 50082 148 995742 161907 DIVIDENDS PAID TO MEMBE 3711365 ATM EXPENSE 1106295 SERVICE CHARGES & VISA 1082152 NCUSIF EXPENSE 960218 3458400 20989164 124439223 92473554 1354429 1925468 248409083 301548631 2453413 3054098 21799565 7003783 15334242 14795782 5178069 9812574 32405546 13555838 429574005 437165945 4360792 6190753 386276298 389750581 390637090 395941334 X 0 0 0 0 38936915 41224611 38936915 41224611 429574005 437165945 X 2563171 -275475 X X 0 0 0 2187730 2187730 13354916 2619371 10735545 5750576 4114035 1636541 506343 270377 235966 14795782 MEMBER DEPOSIT ACCOUNTS 396177437 EFTS -6426856 389750581 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE CREDIT UNION IS EXEMPT FROM INCOME TAXES UNDER PROVISIONS OF THE INTERNAL REVENUE CODE AND STATES OF ILLINOIS AND IOWA TAX LAWS. MANAGEMENT HAS EVALUATED THE CREDIT UNION'S TAX POSITIONS AND CONCLUDED THAT THEY HAVE TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE ADJUSTMENTS TO THE FINANCIAL STATEMENTS. GENERALLY, THE CREDIT UNION IS NO LONGER SUBJECT TO U.S. FEDERAL OR STATE AND LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2008. OVER THE PAST FEW YEARS, THE INTERNAL REVENUE SERVICE (IRS) HAS ISSUED A NUMBER OF TECHNICAL ADVICE MEMORANDUM (TAMS) TO STATE-CHARTERED CREDIT UNIONS ADDRESSING THE ISSUE OF WHETHER INCOME FROM CERTAIN ACTIVITIES THE CREDIT UNIONS ENGAGED IN WERE SUBJECT TO UNRELATED BUSINESS INCOME TAX. EXAMPLES OF INCOME THAT THE IRS CONSIDERS SUBJECT TO UNRELATED BUSINESS INCOME TAX INCLUDE INSURANCE PRODUCTS (CREDIT LIFE AND DISABILITY, ACCIDENTAL DEATH AND DISMEMBERMENT, GAP, GROUP LIFE, HEALTH, CANCER AND DENTAL), SECURITIES AND INVESTMENT PRODUCTS AND FEES FROM NONMEMBER ATM USAGE. TAMS ARE ISSUED BY THE IRS NATIONAL OFFICE, WHEN REQUESTED, IF THERE IS A DISAGREEMENT BETWEEN A TAXPAYER AND A REVENUE AGENT OR APPEAL'S OFFICER AS TO HOW TO INTERPRET AND APPLY THE INTERNAL REVENUE LAWS TO SPECIFIC SET OF FACTS. ALTHOUGH THESE TAMS HAVE NO PRECEDENTIAL VALUE, THEY SET FORTH THE IRS' POSITION THAT CERTAIN SOURCES OF INCOME ARE NOT RELATED TO THE EXEMPT PURPOSE OF A STATE-CHARTERED CREDIT UNION AND ARE SUBJECT TO UNRELATED BUSINESS INCOME TAX (UBIT). THE CREDIT UNION FILED AN INCOME TAX RETURN FOR ITS UNRELATED BUSINESS INCOME BEGINNING WITH TAX YEAR ENDED DECEMBER 31, 2009. HOWEVER, THE TAXING AUTHORITIES HAVE THE ABILITY TO ASSESS TAXES, PENALTIES AND INTEREST FOR ANY YEARS FOR WHICH NO TAX RETURN WAS FILED. HOWEVER, RECENT COURT CASES HAVE RULED IN FAVOR OF CREDIT UNIONS AND CONCLUDED THAT THE SALE OF INSURANCE PRODUCTS, AND THE SALE OF FINANCIAL PRODUCTS AND SERVICES TO MEMBERS IS EXEMPT FROM UNRELATED BUSINESS INCOME TAX. FURTHERMORE, THE RECENT COURT CASES SUGGESTS THE IRS WOULD ONLY GO BACK SIX YEARS NOTWITHSTANDING THAT TAX RETURNS WERE NOT FILED FOR YEARS PRIOR. THE IRS HAS DECIDED NOT TO APPEAL THE FINDINGS IN THESE CASES. BASED ON THESE RECENT COURT CASES AND THE IRS DECISION TO NOT APPEAL THEM, MANAGEMENT DOES NOT BELIEVE THAT INCOME TAXES FROM ACTIVITIES DEEMED UNRELATED WOULD HAVE A MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL POSITION OR RESULTS OF OPERATIONS. VARIOUS LEGAL CLAIMS ALSO ARISE FROM TIME TO TIME IN THE NORMAL COURSE OF BUSINESS WHICH, IN THE OPINION OF MANAGEMENT, WILL HAVE NO MATERIAL EFFECT ON THE CREDIT UNION'S FINANCIAL STATEMENTS. 1 CITY OF EAST MOLINE 916 16TH AVENUE EAST MOLINE IL 61244 366005860 CITY OF EAST MOLINE 10000 CITY FIREWORKS DISPLAY - JULY 2011 UNITED WAY OF THE QUAD CITIES 3247 EAST 35TH STREET COURT DAVENPORT IA 52807 362725960 501(C)(3) 9495 GENERAL SUPPORT FAMILY MUSEUM 2900 LEARNING CAMPUS DRIVE BETTENDORF IA 52722 611508009 501(C)(3) 4500 GENERAL SUPPORT JUNIOR ACHIEVEMENT OF THE QUAD CITIES 800 12TH AVE MOLINE IL 61265 362684253 501(C)(3) 9549 GENERAL SUPPORT 4 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION ISSUES ALL FUNDS DIRECTLY TO THE RECIPIENT ORGANIZATION FOR USE AT THEIR DISCRETION OR TO THE APPLICABLE EDUCATIONAL INSTITUTION FOR APPLICATION TO THE STUDENT'S ACCOUNT. X X 1 1 X X X X 0 1 0 TERRY BRAHM 256938 0 53714 0 28338 0 13408 0 15775 0 368173 0 0 0 KEVIN PIEPER 141563 0 26348 0 6511 0 10264 0 15775 0 200461 0 0 0 JAY ENGLAND 141563 0 26348 0 8759 0 10264 0 15775 0 202709 0 0 0 PART I, LINE 1A DHCU PROVIDES THE FOLLOWING TO INDIVIDUALS REPORTED IN PART VII, SECTION A, LINE 1A: TRAVEL FOR COMPANIONS: THIS BENEFIT IS OFFERED TO THE PRESIDENT OF THE ORGANIZATION. THE ORGANIZATION INCLUDES THE AMOUNT IN REPORTABLE COMPENSATION OF THE PARTICIPATING INDIVIDUAL. HEALTH CLUB DUES: THIS BENEFIT IS OFFERED TO THE TOP MANAGEMENT OFFICIALS OF THE ORGANIZATION. THE DUES ARE INCLUDED IN THE REPORTABLE COMPENSATION FOR THE PARTICIPATING INDIVIDUALS. PART I, LINE 4B PART I, LINE 4B: THE FOLLOWING INDIVIDUALS PARTICIPATED IN A 457(F) PLAN IN 2011 SPONSORED BY DHCU: TERRY BRAHM - $127,800, JAY ENGLAND - $8,698, AND DENISE CAROTHERS - $4,068. THE DOLLAR AMOUNT REPRESENTS THE CURRENT YEAR CONTRIBUTION MADE BY DHCU ON BEHALF OF THE INDIVIDUALS TO THE PLAN IN 2011. STEVE KRATZBERG MORTGAGE X 205000 189853 0 1 1 TERESA VANDYKE MORTGAGE X 120500 116498 0 1 1 WILLIAM RON TRICE VEHICLE X 9000 6637 0 1 1 ROBERT GOMEZ HOME ADVANTAGE X 24000 21276 0 1 1 WILLIAM LAUPER MORTGAGE X 63000 54868 0 1 1 JULIE GERMERAAD JAMES MORTGAGE X 153000 148519 0 1 1 JULIE GERMERAAD JAMES VEHICLE X 16319 11077 0 1 1 VINCENT PAPISH VEHICLE X 30239 1681 0 1 1 DEE CAROTHERS VEHICLE X 38687 28057 0 1 1 KEVIN PIEPER MORTGAGE X 218558 190781 0 1 1 KEVIN PIEPER VEHICLE X 32054 19147 0 1 1 KEVIN PIEPER VEHICLE X 24800 23891 0 1 1 WILLIAM RON TRICE SHARE SECURED X 15181 8828 0 1 1 JULIE GERMERAAD JAMES BUSINESS MORTGAGE X 104000 100670 0 1 1 DEE CAROTHERS FIX EQUITY X 120000 74636 0 0 0 KEVIN PIEPER SIGNATURE X 6938 4919 0 1 1 KEVIN PIEPER SIGNATURE SPN X 36309 0 0 1 1 KEVIN PIEPER HOME ADVANTAGE X 41800 39279 0 1 1 TERRY BRAHM VEHICLE X 65000 53130 0 1 1 MATTHEW MCCOMBS VEHICLE X 19203 18040 0 1 1 MATTHEW MCCOMBS SPN X 350000 350000 0 1 1 MATTHEW MCCOMBS MORTGAGE X 429300 426994 0 1 1 JAY ENGLAND VEHICLE X 38375 36687 0 1 1 1925468 FORM 990, PART VI, SECTION A, LINE 6 DHCU HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7A DHCU HAS MEMBERS THAT HAVE THE RIGHT TO ELECT THE MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 MCGLADREY LLP, THE ACCOUNTING FIRM PREPARING THE 990 TAX RETURN FOR DHCU, WILL PRESENT THE FINAL FORM 990 TO THE BOARD OF DIRECTORS AND PROVIDE AN OVERVIEW OF THE INFORMATION REPORTED PRIOR TO THE FILING OF THE 990. FORM 990, PART VI, SECTION B, LINE 12C EXECUTIVES, MANAGERS, AND EMPLOYEES MUST AVOID ANY CONFLICTS OF INTEREST BETWEEN THEMSELVES AND DHCU. SPECIFICALLY, NO EXECUTIVE, MANAGER, OR EMPLOYEE SHALL MAKE ANY INVESTMENT, ACCEPT ANY POSITION OR BENEFITS, PARTICIPATE IN ANY TRANSACTION OR BUSINESS ARRANGEMENT OR OTHERWISE ACT IN A MANNER THAT CREATES OR APPEARS TO CREATE A CONFLICT OF INTEREST WITH DHCU UNLESS SUCH PERSON MAKES FULL DISCLOSURE OF ALL FACTS AND CIRCUMSTANCES TO, AND OBTAINS THE PRIOR WRITTEN APPROVAL OF THE VICE PRESIDENT OF HUMAN RESOURCES. ADDITIONALLY, DHCU REQUIRES ALL INTERESTED PERSONS DICLOSE ANNUALLY ANY RELATIONSHIP THAT COULD GIVE RISE TO A CONFLICT. FORM 990, PART VI, SECTION B, LINE 15A IN JANUARY THE EXECUTIVE COMMITTEE COMPLETES THE PRESIDENT/CEO'S ANNUAL REVIEW BASED ON TWO SECTIONS: 1. OBJECTIVE FACTORS BASED ON DHCU'S FINANCIAL PERFORMANCE, AND 2. SUBJECTIVE FACTORS BASED ON HOW THE EXECUTIVE COMMITTEE FEELS THE PRESIDENT/CEO HAS PERFORMED THE DUTIES AND RESPONSIBILITIES OF HIS POSITION. THIS PROCESS RESULTS IN A SUMMARY SCORE THAT IS APPLIED TO A SALARY RANGE TABLE THAT DETERMINES THE YEAR END BONUS PERCENTAGE AND ANNUAL BASE PAY INCREASE OF THE PRESIDENT/CEO. THE ENTIRE PROGRAM WAS DEVELOPED BY BAUSCHKE AND ASSOCIATES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC. ALL OTHER FUNCTIONAL EXPENSES FORM 990, PART X, LINE 24E PROVISION FOR LOAN LOSS EXPENSE: TOTAL EXPENSES 904,371. EQUIPMENT RENTAL & MAINTENANCE EXPENSE: TOTAL EXPENSES 482,247. BILL PAYER EXPENSE: TOTAL EXPENSES 317,150. REBATE EXPENSE: TOTAL EXPENSES 308,932. MISCELLANEOUS EXPENSE: TOTAL EXPENSES 277,908. DATA PROCESSING EXPENSE: TOTAL EXPENSES 212,349. MORTGAGE EXPENSE: TOTAL EXPENSES 176,461. FORECLOSED REAL ESTATE EXPENSE: TOTAL EXPENSES 141,171. LOAN RECORDING FEE EXPENSE: TOTAL EXPENSES 123,991. EDUCATION EXPENSE: TOTAL EXPENSES 80,909. SUPERVISION EXPENSE: TOTAL EXPENSES 67,108. CONSUMER CREDIT REPORT EXPENSE: TOTAL EXPENSES 63,732. FREE CHECK EXPENSE: TOTAL EXPENSES 61,853. LEAGUE DUES & OTHER EXPENSES: TOTAL EXPENSES 55,659. REAL ESTATE TAX SERVICE: TOTAL EXPENSES 50,403. FEDERAL TAX EXPENSE: TOTAL EXPENSES 48,468. CHECK LOSS EXPENSE: TOTAL EXPENSES 24,520. CHEX SYSTEM/SCREENING EXPENSE: TOTAL EXPENSES 17,452. ILLINOIS SALES TAX EXPENSE: TOTAL EXPENSES 17,342. SUBSCRIPTIONS & PUBLICATIONS EXPENSE: TOTAL EXPENSES 7,417. VEHICLES IN LIQUIDATION EXPENSE: TOTAL EXPENSES 6,796. FINANCIAL PLANNING EXPENSE: TOTAL EXPENSES 5,403. DHCU ERROR EXPENSE: TOTAL EXPENSES 2,877. BROKERS FEE EXPENSE: TOTAL EXPENSES 2,820. SAVINGS WRITE OFF EXPENSE: TOTAL EXPENSES 751. CASH OVER(SHORT) EXPENSE: TOTAL EXPENSES 310. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -275,475. FORM 990, PART IV, LINE 12A & PART XII, LINE 2B & 2D THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AUDITED ON A SEPARATE BASIS BY AN INDEPENDENT ACCOUNTANT. HOWEVER, THE STATEMENTS ARE AUDITED ON A FISCAL YEAR-END OF MARCH 31, 2012 WHILE THE ORGANIZATION'S TAX YEAR-END IS DECEMBER 31, 2011. FORM 990, PART X, COLUMN A, LINES 2, 12, AND 15 IN 2011, DHCU DETERMINED THAT IT WAS MORE APPROPRIATE TO INCLUDE IN COLUMN (B) (END OF YEAR) FOR LINE 2 (SAVINGS AND TEMPORARY CASH INVESTMENTS) CERTAIN ITEMS INCLUDED IN PRIOR YEAR FORMS 990 IN LINES 12 (INVESTMENTS - OTHER SECURITIES) AND 15 (OTEHR ASSETS), RESPECTIVELY. CONFORMING ADJUSTMENTS HAVE BEEN MADE TO THE 2011 BEGINNING OF YEAR AMOUNTS LISTED IN COLUMN (A) OF PART X.