Monday, July 24, 2023

About Those SECU Financial Statements Being No Longer Available to SECU Members ...


SECU is a state-chartered credit union, which simply means the credit union is licensed as a financial cooperative in North Carolina - and is subject to North Carolina state laws and regulations. The State Legislature is, of course, responsible for enacting credit union laws (such as H410!).  The North Carolina Credit Union Division of the N.C. Department of Commerce is responsible for monitoring the safety and soundness of state-chartered credit unions - and for assuring credit unions abide by state laws and regulations. The new Administrator of N.C. credit unions is Ms. Kristina Ray, who assumed the role on July 1, 2023. 

✅ Called Ms. Ray recently and asked if a couple of us could visit with her to discuss "the situation" at SECU, particularly the new Election Procedures and the recent by-law changes. Ms. Ray was courteous and highly responsive and we hope to meet with her this week. (More on that shortly). That North Carolina credit union folks have a local, engaged regulatory staff is one of the principal advantages of being state-chartered, as opposed to a D.C.-subservient federal charter.

😎 Will also be asking Ms. Ray's help with the matter of the SECU Board discontinuing the availability of monthly financial statements to SECU members. Here's what North Carolina credit union regulations say about that issue:

✔ 04 NCAC 06C .0306 DISPLAY OF FINANCIAL STATEMENTS Each credit union shall display at its main office and all branches, copies of its monthly financial statement. The statement shall be posted in a manner that is accessible for inspection by members.  

History Note:Authority G.S. 54-109.12;Eff. February 1, 1976;Readopted Eff. April 4, 1978;Amended Eff. October 1, 1983; Readopted Eff. February 1, 2018. [link to regs] 

"Shall" usually means just that under the law, no if's, and's, or but's  - nor any "we make our own rules here"  "this Board" attitude!)

Here was SECU's recent response to members' requesting the financial statements [link]. Pretty sure that Ms. Ray will advise SECU that some poppycock financial "trend reports" don't pass muster as financial statements under state law and under generally accepted accounting principles. 

Beware that if the SECU Accounting Department gets co-opted and chooses not to follow the law - everything is then "in play" at SECU. A minor matter or oversight ?- hopefully; a major cause for concern if not corrected? - definitely.

 Will let you know what Ms. Ray says...

... you would think with 3 lawyers on "this Board".... oh well, never mind!