Idaho`s Credit Unions Surpass Credit Union House Fundraising Goal

a publication of the Idaho credit union league
Gem
Gem
Idaho’s Credit Unions Surpass Credit
Union House Fundraising Goal
Idaho’s credit unions continue to show their commitment to the credit union movement’s
success on Capitol Hill by surpassing their 2012 fundraising goal for Credit Union House.
Idaho’s credit unions have raised $6,792 so far this year for Credit Union House, the
Washington, DC facility, which opened more than 10 years ago to provide credit unions
with a meeting and events space within blocks of the U.S. Capitol. Fifteen credit unions
and individuals contributed to Idaho’s fundraising success, reaching 255% of the state’s
annual goal — an impressive accomplishment at the mid-year point.
In partnership with every state league and AACUL, the Idaho Credit Union League
created Credit Union House as a permanent foothold on Capitol Hill for credit unions.
Since opening in late 2001, the facility hosts approximately 100 events annually, which
bring in thousands of visitors attending legislator receptions, education events, board
meetings, and political fundraisers.
July 2012
Idaho credit union representatives regularly attend activities coordinated by the Idaho
Credit Union League at Credit Union House. Last fall, advocates met with the entire
Idaho Congressional Delegation: Senators Mike Crapo and Jim Risch, as well as Representatives Mike Simpson
and Raul Labrador.
Planning Sessions....................6
“We sincerely appreciate the strong
support and involvement of Idaho’s
credit unions,” says
Credit Union House
Manager Sue McCue.
“The commitment
of Leagues, credit
unions, credit union
organizations, and
individuals ensures credit unions will maintain a permanent presence on Capitol Hill,
sending the message to our country’s leaders that credit unions are here to stay.”
World Council Auction............6
Visit the Credit Union House at their website: www.cuhouse.com. /
Inside
Legally Speaking........................2
“Members Matter Most”......3
Risky Business...........................3
CUs in the News..............4 & 5
Card Programs Help...............6
Visa Raises Limits....................7
WCMS Scholarship.................7
by Alan Cameron
League President/CEO
Many credit unions have foreign citizens
as members. These people, referred to as
“aliens” by the IRS, are in the U.S. for a variety of reasons, such as school and employment, and have the same need for financial
services as members who are citizens.
Aliens are categorized by the IRS as “resident” or “nonresident” and their treatment
under the tax code differs depending upon
how they are categorized. A foreign citizen is
considered to be a “resident alien” if they are
a lawful permanent resident of the U.S. and
have been issued an alien registration card
(known as a “green card”) or if they have
maintained a “substantial presence” in the
U.S. as determined by rather complicated
rules devised by the IRS. Any foreign citizen
who is not a resident alien is considered to
be a “nonresident alien.”
Generally, resident aliens are taxed just like
U.S. citizens, filing the same tax returns and
paying the same tax rates. For interest and
dividend reporting purposes, resident aliens
are treated just like any other account holder.
It has long been the rule that credit unions
must report interest or dividends paid to
nonresident aliens from Canada because
of the special relationship and tax agreements between the U.S. and Canada. Under
this rule, credit unions could, but were not
required to, report interest or dividends paid
to all nonresident aliens in the same manner.
Now, however, the IRS is changing the rule
to require reporting on nearly all nonresident
aliens.
Citing the need to be in a position to share
information about the earnings of citizens
from around the world in order to ensure
that U.S. taxpayers cannot evade U.S.
tax, the IRS last April issued final regulations providing updated guidance to credit
unions and other payers on the reporting of
interest paid to nonresident aliens.
The new regulations, which take effect with
interest paid to nonresident aliens on and
after January 1, 2013, nominally limit their
effect to citizens of certain countries to be
identified in a Revenue Procedure that will
be published by December 31, of each year.
The IRS explains that this is to satisfy the
concerns of commenters that a broader rule
would result in the IRS gathering unneeded
data on individuals from countries that do
not share information with the IRS. Only
the countries with which the IRS has in force
an information exchange agreement will be
listed on the annual Revenue Procedure.
However, acknowledging that this procedure may pose an undue burden on credit
unions and other interest payers, the rule
allows payers to elect to report interest payments to all nonresident alien individuals
to whom they pay $10 or more in interest.
This will clearly reduce the burden on credit
unions by allowing them to code all nonresident alien accounts in the same way.
If the credit union elects to limit its reporting to just citizens of listed countries, it
may determine the citizenship of individual
nonresident aliens from the permanent
residence address provided to them in Form
W-8BEN (“Beneficial Owners Certificate
of Foreign Status for U.S. Tax Withholding”), which nearly all foreign persons must
provide at the request of interest payers.
Note that Form W-8BEN is a form that is
not filed with the IRS; it is retained by the
interest payer.
Under the new rule, credit unions must
report interest of $10 or more paid to a
nonresident alien in a calendar year using
IRS Form 1042-S. All of the Forms 1042-S
filed by the credit union for a calendar year
must be submitted to the IRS with Form
1042-T (Annual Summary and Transmittal
of Forms 1042-S). If the credit union files
250 or more Forms 1042-S for a calendar
year, it must file electronically using the
IRS’s Filing Information Returns Electronically (FIRE) System. Refer to http://fire.irs.
gov for more information on FIRE.
The reporting deadline is March 15 of the
year following the calendar year in which
$10 or more in interest was paid to a
nonresident alien. Since the regulation goes
into effect on January 1, 2013, this means
that the first filing date under the new rule
will be March 15, 2014. By March 15 of
each year, credit unions must also provide a
copy of the Form 1042-S to the nonresident
alien individual, either in person or by first
class mail to their last known address, and a
statement to the effect that the information
on the form is being furnished to the United
States Internal Revenue Service.
Form 1042-S is a 5-part form; Copy A goes
to the IRS, copies B, C, and D go to the
nonresident alien, and Copy E is retained by
the credit union. The retained copies, along
with a copy of Form 1042-T and proof of
compliance with the regulation should be
kept by the credit union for at least three
years after the reporting due date. In lieu of
retaining paper copies, credit unions may
retain the data electronically if they have the
ability to reconstruct the data.
The IRS has issued this final regulation nearly two years before the first filing deadline to
give credit unions and other payers the time
needed to adapt their data processing and
reporting systems to the new rule. Now is
the time to begin that task.
To assist credit unions and other filers, the
IRS has launched a special page on their
website at www.irs.gov/form1042. Information about Form 1042-S and its instructions
can be found on this website, including any
future developments affecting the Form or
filing requirements. The instructions for
Form 1042-S change each year and the rules
relating to it do seem to be in flux, so it
would be wise for the affected credit unions
to review this site before preparing their
Forms 1042-S for the year. /
“Members Matter Most” — Theme of Int’l CU Day 2012
Credit Union National Association (CUNA) reveals the design for
International Credit Union (ICU) Day 2012, based on the World
Council of Credit Unions’ selected theme, “Members Matter Most.”
ICU Day will take place on October 18, 2012.
“Members are the focal point this year, just as they are every single
day in credit unions,” said Joanne Sepich, CUNA’s ICU Day coordinator. “While credit union staff always put members first, this is
an opportunity to remind members that credit unions are different
by design — members are what make credit unions unique and set
them apart as for-people, not-for-profit, cooperatively owned financial institutions.”
Credit unions have celebrated ICU Day on the third Thursday of
October since 1948. The day reflects upon the credit union movement’s history and promotes its achievements. It is a day to recognize the dedication of those working in the credit union industry,
appreciate current members and invite eligible consumers to join.
Historically, credit unions
and associations in every
part of the world celebrate
the day with open houses,
contests, picnics, fairs,
festivals, and parades; others
hold athletic competitions
and essay or art contests
for young members. Public
gatherings with visiting
dignitaries have effectively
attracted media attention
and public involvement, as
have educational and public
service events.
For celebration tools and additional resources about the 2012 ICU Day, visit cuna.org/icuday. /
Risky Business: Mobile Devices at Work
by Ken Otsuka, Senior Consultant for CUNA Mutual Group’s Risk Management team.
If your credit union allows mobile devices to be used for company busi- shore up security where needed.
ness, you should understand and prepare for a number of potential risks. Security Policy. First and foremost, you should develop and
Cell phones and smart phones, tablets and personal digital assistants
(PDAs) — just about everyone is using them to stay connected at
home, on the road and in the office. Mobile devices in the workplace, especially employees’ own personal devices, introduce security
risks to your credit union.
A Little Too Convenient?
Relatively inexpensive, accessible, user-friendly and easy to transport,
all this convenience is risky for your business. While it’s probably
not reasonable or even desirable to prohibit mobile devices at work,
the security risks are significant.
Lost or Stolen Devices. One of the most remarkable features of mobile devices — their diminutive size — also makes them easy to steal
or lose, rendering data stored on them vulnerable to theft.
Insider Theft. A dishonest employee could easily connect a mobile
device to the computer’s USB port to download large amounts
of sensitive data to steal or transmit this data via email. This is a
growing concern as clever fraudsters increasingly look to insiders as
partners in crime.
Intercepted and Decrypted Data. WiFi-enabled devices transmitting
data over unsecure networks are vulnerable to Man in the Middle
attacks, exposing not only the device but also potentially the credit
union’s network to hackers.
Viruses. Mobile devices offer fertile ground for hackers looking for
broadly used technology with limited security. Acts as seemingly innocuous as downloading apps or ringtones may invite malware into
the device and potentially your credit union’s network.
Managing the Risks of Mobile
As mobile device use at work continues to explode, so does your
risk. It’s important to examine your credit union’s vulnerabilities and
maintain a comprehensive IT security policy that addresses mobile
devices. This policy should be approved at the board level, and
reviewed and signed off on by employees annually.
Encryption. Encrypt sensitive data stored on the mobile devices
or when these devices are used to transmit sensitive data over the
Internet or in emails.
Control and Protect Devices. Require that mobile devices are password protected, locked at all times, and can be wiped clean remotely.
Enforce time-out features. Install anti-virus protection on all mobile
devices used for credit union business and prohibit downloading applications and/or software without the authorization/assistance from
the IT department.
Secure Network Connections. A Secure Socket Layer Virtual Private
Network should be established for employees to connect to the network using mobile devices. This protects data transmitted between
the network and mobile devices.
Don’t Mix Personal and Business Use. Credit union issued devices
are the safest option provided the necessary security features are deployed, but if you do decide to permit business to be conducted on
employees’ personal devices, investigate software designed especially
for devices used for both purposes. This software allows the businessside of the device to be protected and provides security measures
including password protection, encryption, anti-virus protection and
remote wipe capabilities.
Finally, even with the best security, the worst can happen. Cyber
Risk Hub, offered at no additional cost to CUNA Mutual Group
policyholders, provides the services of a data breach coach and other
key resources in the event of a breach. Cyber Risk Hub and other
data breach resources are available at the Protection Resource Center
at www.cunamutual.com. /
Credit Unions In the News . . .
Potlatch No. 1 FCU Community Activities
The P1FCU Community Fitness Trail, located in Lewiston, ID, is a city trail
that can be enjoyed by all members of the community. The scenery leads walkers and joggers out into the beautiful fields and rolling farmland of northern
Idaho. 
P1FCU participated in the
March of Dimes walk that
supports premature babies.
They also sponsored a checkpoint and had giveaways for
the 200+ walkers. 
The Culdesac branch
of P1FCU participated
and took 1st Place in
the Commercial Division at the Culdesac Parade. The Theme was “A Country Mardi Gras” —
P1FCU employees had loads of fun on their “Hee Haw” float.
Credit Union People Gather at Reception for Congressman Labrador
League CEO Alan Cameron and his wife Janet, and Simplot Employees CEO
Val Brooks and her husband Dick co-hosted a reception for Idaho Congressman
Raul Labrador. More than 30 credit union professionals and family members
visited with Congressman Labrador and
his wife Becca. The
Congressman heard
about the good work
credit unions in Idaho
are doing to help in
their communities,
and heard about the important niche credit unions fill for small business loans
members can’t obtain through banks and how credit unions in Idaho serve more
than 1/3 of the citizens in this state.
SW Chapter Community Shred Day & Stampede for the Cure Fundraiser
Southwest Chapter credit unions and
Shred-It partnered for the first Community Shred Day and Stampede for
the Cure fundraiser. Credit union
members were invited to bring in documents, which were safely destroyed. CU
employees volunteered to direct traffic,
carry boxes of documents, and collect
money for Stampede for the Cure. The
funds collected went to help find a cure
for breast cancer, encourage awareness,
and help provide screenings for breast
cancer. Thanks to the volunteers and
Shred-It Documents Destruction, about $300 was collected and 1500 pounds shredded.
Simplot Employees CU Participates in the Ronald McDonald House Sporting Clay Shoot Fundraiser
SECU Board Member Randy Hickman; SECU
CEO Val Brooks and husband Dick; Operations
Specialist Denise Lucero and daughter, Amanda,
all volunteered to help at the annual fundraiser
sponsored in part by the JR Simplot Company to
help raise funds for the Ronald McDonald House
in Boise. 230 shooters and 159 volunteers came
together to raise more than $40,000.
CU4Kids Program Makes Big Showing at Area Children’s Miracle Network Telethons
Not only did credit unions turn out to
present large checks on camera, they also
‘manned’ the phone lines for contributors
and worked behind the scenes entertaining
guests in Boise and Pocatello.
NEFE Train the Trainer Sessions in Twin Falls, Idaho Falls, Meridian & Lewiston Were a Hit
Nearly 100 teachers, credit union staff, and service organization professionals
came together to learn how to teach the NEFE financial education curriculum
held in four locations around the state. The Idaho Credit Union League’s LaRaye
O’Brien and University of Idaho Extension Service’s Lyle Hanson taught the
workshops. All aspects of the curriculum are free, and thanks to the sponsorship
of many Idaho credit unions, so are the workshops.
In an email received today, a participant sums up the value of the program
I attended the NEFE training last week at CapEd Credit Union and wanted to take
a moment to express my gratitude. Not only was the information empowering to
myself and my future
students, my name was
drawn for a gift bag. Inside were more goodies and TOOLS to use with my younger
students. So THANK YOU for lunch, materials, and powerful information. -- Gale
Dawn Scott, M.A.
We add our thanks to the following sponsoring credit unions: Capital Educators
FCU, Idaho Advantage CU, Icon CU, Magic Valley FCU, Pioneer FCU, Lewis
Clark CU, Advantage Plus FCU, Beehive FCU, East Idaho CU, Pocatello Railroad FCU, Potelco United CU, and Idaho State University FCU.
Card Programs Help Credit Unions of All Sizes
No matter how big or how small your credit union is, you can offer
your members debit and credit card services through our partnership
with the Illinois Credit Union League Services Corp. Its turn-key
programs fit the needs of nearly any credit union. Through the program you can offer debit and credit cards to your members without
adding staff.
Card programs are a win-win situation for credit unions and credit
union members. Card programs help credit unions:
• Attract new accounts and strengthen existing account relationships;
•
•
•
Generate visibility for the credit union by branding the card;
Provide non-interest fee income; and
Cross-sell opportunities for your credit union.
Credit unions that offer debit card programs can secure and reinforce their position as the member’s primary financial institution.
To find out how this relationship can strengthen your credit union’s
bottom line and deepen the relationship you have with your
members, please contact Gail Machos at (800) 627-1820 x 126 or
gmachos@idahocul.org. /
We Can Facilitate Planning Sessions
Whether you’re traveling around the world or just making your way
through everyday life, it helps to know where you’re headed. The same
can be said for credit unions. Mark Twain once said, “If you don’t
know where you’re going, any road will get you there.” That’s the
whole point of strategic planning — to try to understand which road
each particular credit union needs to take in order to achieve its goals.
Having that kind of road map is crucial as credit unions endeavor
to thrive, not just survive, in an increasingly competitive financial
marketplace. Now more than ever, it’s incredibly important for your
credit union to answer three questions:
1. Who are you?
2. Where are you?
3. Where do you want to go?
League Services, Inc. (LSI) can help you develop a road map for the
future by facilitating a strategic planning session for your credit union.
As an independent third party with no personal vested interest in the
plan, we can guide you through the process, while still bringing our
knowledge and expertise about credit unions to the table.
We offer a wide variety of planning sessions to fit the needs of your
credit union. We do not believe in a “one size fits all” approach to
the planning process. We do believe in getting to the core issues your
credit union needs to address and discussing strategies to meet those
needs.
Our price to facilitate a credit union strategic planning session is as
follows:
• CUs under $10M in assets
$500 plus expenses*
• CUs between $10M-20M in assets
$750 plus expenses*
• CUs over $20M in assets,
$900 plus expenses*
*Expenses means gas (not mileage), hotel and meals.
To find out more about the planning sessions we offer, contact
Kathy Thomson at (800) 627-1820 ext. 128 or kthomson@idahocul.org. /
Get Ready for World Council of CUs Online Auction!
World Council will hold its annual online auction July 9-17. They
are currently accepting donations. In the past, donated items have
ranged from sporting tickets, artwork, electronics and jewelry to
one-of-a-kind experiences and travel packages. If you have an item
to donate, please visit http://www.biddingforgood.com/woccu and
click on the Donate Now button. You may also email a picture and
description of the item you are donating to auction@woccu.org.
Then start bidding on July 9th.
Anyone can bid, so spread the word to your colleagues, friends and
family. The bidding starts on Monday, July 9. All proceeds go to the
Worldwide Foundation for Credit Unions, WOCCU’s charitable
arm, to support credit union development programs.
For more information about the auction, contact Valerie Breunig at
(608) 395-2055 or at auction@woccu.org. /
Raising Limit Increases Merchant Efficiency & Consumer Convenience
Visa Inc. announced plans to raise its Visa Easy Payment Service
“no signature required” limit from $25 to $50 for two key U.S.
merchant categories. Starting in October 2012, discount stores and
grocery stores/supermarkets in the U.S. can accept Visa cards for
transactions up to $50 without requiring a cardholder signature or
PIN, or providing a receipt unless requested by the cardholder.[1]
This change is designed to increase speed at the point-of-sale, cardholder convenience and operational efficiencies for a large number
of merchants.
“Visa is committed to delivering solutions to help our merchant and
financial institution partners better serve their customers, reduce
costs and grow their businesses,” said William M. Sheedy, Group
President, Americas, Visa Inc. “Visa Easy Payment Service has been
extremely popular with merchants and cardholders in busy retail
environments. As a result, merchants have asked us to expand the
program to purchases up to $50, so that they can more efficiently
support consumers’ growing preference to use cards instead of cash
or checks for everyday purchases.”
Previously known as the No Signature Required program in the
U.S., Visa Easy Payment Service allows merchants to eliminate
cardholder verification and receipts on qualifying smaller value
transactions. This helps make the payment process easier and more
convenient for both merchants and cardholders. The program has
been available to the majority of merchant categories in the U.S.
since July 2010, for purchases up to $25.
The changes to Visa’s Easy Payment Service will help merchants and
credit unions better serve their members and grow their respective
businesses with a more efficient payment option which will encourage more usage of their Visa card.
As the $50 limit is introduced, Visa will review merchant, cardholder and card issuer feedback and may expand this higher transaction
limit to additional merchant categories in the near future. Approximately 80 percent of face-to-face Visa consumer transactions in the
U.S. are under $50.[2]
Credit unions can inform their members that they will begin seeing
this change at the point of sale in October 2012 as a more efficient
means of payment.
[1] Applies to Merchant Category Codes (MCCs) 5310 (Discount
Stores) and 5411 (Grocery Stores & Supermarkets)
[2] Visa Inc. Data 2011 /
SOURCE Visa Inc
Idaho CU Employee Wins Full Scholarship
On behalf of the board of Western CUNA Management School,
Dr. James Likens approached the Idaho Credit Union League offering a scholarship to a first-year student from a League-affiliated
credit union. Alan Cameron requested recommendations from
CEOs. After careful consideration, Randi Swanson of SEI-US Employees FCU was awarded the scholarship to attend the credit union
leadership training at Pomona College later this month. According to Rob North, CEO of the SEI-US, Randi has proved she is a
dedicated and valuable employee. WCMS will give her the tools to
enhance her credit union career at SEI-US.
We wish Randi Swanson great success! /
Frontline Workshops Scheduled for October
During October, League CEO Alan Cameron and Compliance Specialist Will Hall, will provide training on accounts for the frontline.
They will cover a variety of topics, including:
•
•
•
•
•
•
•
•
Multiple-Party Accounts
Deceased Member Accounts
Entity Accounts
Powers of Attorney
Trusts
UTMA and UCTA Accounts
Garnishments and Levies
Representative Payee Accounts
All sessions will be held from 7 – 9:00 p.m. at the following locations.
October 9
October 10
October 16
October 23
October 24
October 25
Coeur d’Alene
Clarkston
Boise
Burley
Pocatello
Idaho Falls
Global CU
Quality Inn
League Offices
Burley Inn
Clarion Inn
Shilo Inn
More information will be emailed to affiliated and associated credit
unions. /
The Idaho Credit Union League is dedicated to the success of credit unions in Idaho. We help foster success by representing, serving and promoting
credit unions locally and nationally. In addition, we strive to be the most effective advocate for Idaho’s credit unions.
Gem
Volume 51, No. 7
© 2012 Idaho Credit Union League. The
Gem is a monthly publication of the Idaho
Credit Union League, 2770 Vista Avenue,
Boise, ID 83705, Tel (208) 343-4841, Fax
(208) 343-4869, www.idahocul.org.
Annual subscriptions are included in
League dues.
Board Chair
Brent Neibaur, Advantage Plus FCU
President
Alan D. Cameron
Editor
LaRaye O’Brien
POSTMASTER: Send address changes
to the Gem, P.O. Box 5158, Boise, Idaho
83705.
Certificates
JULY
IDAHO CREDIT UNION PHILOSOPHY CERTIFICATIONS
Beehive FCU
Kristin Deas
Sarah Galbraith
Aaron Groll
Tiffany Paynter
CapEd FCU
Dale Baum
Brittney Brannen
Geoff Conce
Andrea Kinslow
Shantel Murray
Melanie Richey
Amy Turner
Idaho Credit Union League
Mary Hudson
LCCU
Gretchen Kiely
Pioneer FCU
Mishay Anthony
Kevin Cox
Amanda Fortenberry
Potlatch No. 1 FCU
Taylor Hewett
Jacob Hopkins
Public Employees CU
Earlee Young
C a l e n d a r
2 Generational Differences QuickBite
10 Direct Lending: Seven Must Haves QuickBite
12 New SEGs, New Members, New Growth
TeleCourse
18 Due Diligence: Interacting with Your Members QuickBite
26 Why Y? Tactics to Reach Gen Y QuickBite
31 Digital Wallet - Mobile Payments QuickBite
AUGUST
2 ALM: 11 Key Ratios You Should Know
QuickBite
8 Check Fraud QuickBite
14 Decedent Accounts QuickBite
21 Conducting & Evaluating Consumer Reports
for Employment
28 Marketing with a Click & a Smile QuickBite
For CUNA Training, go to:
http://training.cuna.org/calendar.php
See the 2012 Calendar of Events at
www.Idahocul.org