Friday, April 5, 2024

Why Should It Be The Duty Of SECU Members To Make SECU Abide By North Carolina Law?

Why the Credit Union Commission must step up.

"Obedience to the law is not asked as a favor.

             - President Teddy Roosevelt

😎 A simple refresher on why the last year has been an ongoing struggle to get SECU to abide by the law...

Wednesday, June 7, 2023

To: Rex.Spivey , SECU CFO

Dear Rex Spivey,

Would like to follow up on the financials. What you provided was an abbreviated two-page "trend summary" of SECU's financial performance, which was helpful. I had hoped to receive the regular, full report normally published monthly in the past. Are these financial monthly reports still available to members? Or have restrictions been imposed?

Checked with former CEO Mike Lord to confirm that SECU financials were available to members under his administration, which was also my experience. He indicated that the financials were "published" internally to a data site available to staff - and could be printed off for members upon request. Is this still the acceptable practice at SECU?

The reason I ask for your help is that branch staff seem to be "hesitant" about readily providing this information. Seems to be some uncertainty about what "current policy" is on making financials available to member-owners. Would you please clarify? 

Additionally, there does not seem to be a set, committed schedule for timely publication of the reports. What is your anticipated, monthly publication target?

Again, thank you for your help, look forward to your response. As an aside, might I suggest that you publish the monthly financials on the SECU website? Go "digital"!  

Sincerely, Jim Blaine

✅  Friday, Jun 9, 2023 at 5:36 PM

Dear Mr. Blaine,

SECU provides updates on our financials to members in a number of ways:

 Detailed and audited annual financials in SECU’s Annual Report;

  1. Financial status report, updated quarterly, on our website; and
  2. Financial summaries shared quarterly in our Grassroots newsletter.

 We will provide monthly summary financial statements that include balances for the major categories of assets, liabilities, equity, income, and expenses, to members on request through the Finance Department after the monthly Board meeting.  The reports will be generally available the last week of the month.

We don’t get a high number of requests for these, so we’ll put a reminder out to our teams to make sure this is clear moving forward.

Sincerely, Rex Spivey

Wednesday, July 23, 2023

Dear Rex Spivey,

Good morning. Would you please send me complete SECU financial statements for year-end Dec. 31, 2022 and the month-end financial statements for Jan/Feb/Mar/Apr/May/June 2023.

You are required by North Carolina law to provide monthly financial statements to the SECU members. You may verify this requirement with the Administrator of  the North Carolina Credit Union Division.

 ✅ 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. 

As a CPA you are familiar with the AICPA industry standard definition of financial statements, so generally accepted accounting practices should apply. These are the same financial statements which you and SECU have been providing to the SECU membership for decades in accordance with State law - until this year.

Given that prior requests, over several months, have not been honored in accordance with State law, I must ask that you email these statements to me prior to the end of the day - July 26, 2023. Or if easier,  please provide confirmation you have sent them by overnight delivery to my home address of record with SECU.

Thank you, Jim Blaine

Wednesday, July 26, 2023
Dear Rex Spivey,

Thank you for the requested financial statements. Assume that members may once again obtain these statements through their local branch. Is that correct?
Sincerely,  Jim Blaine

Thursday, July 27, 2023
Dear Mr. Blaine,

Yes that is correct.

Sincerely, Rex Spivey

   President Roosevelt also said: "I believe that the officers, and, especially, the directors, of corporations should be held personally responsible when any corporation breaks the law." ... Interesting idea!