2010-2011 Annual Report - SAC Federal Credit Union

SUPERVISORY COMMITTEE’S
REPORT
Each day brings new challenges to SAC Federal Credit Union. Their mission is providing the products and services to meet every stage of the
membership’s life events. The primary responsibility of the Supervisory Committee is to ensure that our Credit Union’s policies and practices are
satisfactorily protecting the assets of our membership and are in compliance with all applicable government regulations. It is also the responsibility of this
committee to ensure that our annual financial statements fairly and accurately reflect the financial position of our credit union.
The National Credit Union Administration (NCUA) recommends an independent quality assurance review of the Internal Audit Department be completed
every five years and this was completed in April 2011. Following the NCUA Audit, the Supervisory Committee completely revisited SAC FCU’s auditing
procedures. This resulted in an improved auditing program. The annual independent audit and statement verification audit were completed by the CPA
firm of Doeren Mayhew. There were no major concerns reported.
The Supervisory Committee oversees the quality and integrity of the credit union’s financial statements and evaluates the performance of the internal
audit function. The Committee reviews the internal control framework of the credit union to ensure the adequacy of internal controls surrounding assets
and computerized information systems, reviews Board of Directors minutes, participates in the strategic planning, remains vigilant to what is happening
in the credit union industry, and assists with member inquiries.
The Supervisory Committee are pleased to report that SAC Federal Credit Union continues to be well managed and financially sound. Be assured that
we will remain steadfast in our focus on safeguarding member assets.
I want to thank all of the Supervisory Committee Members and alternates for volunteering their time and service. A special thank you goes to Steve
Doty, my predecessor as Chairman, for his service and dedication to the Committee.
Finally, we want to thank the membership for their confidence in, and support of, SAC Federal Credit Union. We look forward to serving you, our
members, in 2012.
Steve Williamson
Supervisory Committee Chairman
TREASURER’S REPORT
I am very pleased to report that SAC Federal Credit Union has emerged from another tough economic year with strength and endurance. SAC Federal
Credit Union has maintained a capital ratio of 8.82% based on total capital of $45 million vs. $517 million in total assets. The credit union’s total assets
grew at a rate of 14% during the past year. As other institutions were tightening credit, we continued to meet the financial needs of our members.
The credit union has had the advantage of being located in the Midwest, where the Nebraska unemployment rate was 4.1% in June, 2011 vs. the
national unemployment rate of 9.2%. Lending has been weak on a national basis, and I am proud to report that SAC Federal Credit Union had loan growth
of 17.7% during the past year. In addition to achieving the strong loan growth, we maintained our loan quality. The National Credit Union Association
(NCUA) statistical records show that the ratio of delinquent loans to total loans is .52% for SAC Federal Credit Union vs. 1.49% for our peer average;
further, our net charge-offs to average loans is .47% vs. .94% for the peer average.
1985
First Mortgage Loans were offered.
A computerized audio response
system, “MONEY TALK”, was
installed.
1986
A discount brokerage program was
instituted.
Home Equity Loans were offered to
the membership.
An Automated Loan Application
System (the first in the U.S.) was
developed and installed at the C.U.
Credit cards were offered.
1988
The C.U. returned to its roots by
opening the Building 500 Branch
at Offutt AFB.
1989
Total assets of the C.U. were over
$100 million for the first time.
You can count on SAC Federal Credit Union to remain financially stable during this period of economic troubles. Our recent expansion of the counties
which we serve will allow us to bring our services to more members. We are committed to making a positive difference in our members’ lives by providing
the products and services that help them through their life events.
Joceslyn Boyd
Treasurer
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