Valley State Employees Credit Union

Nonprofit profile at a glance

EIN
381538668
IRS 990 coverage
2010–2016
Forms available
Form 990 2016
Location
Saginaw, MI, USA
Phone
9897935943
Rating
72
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Credit Unions

Official website

Reported finances

Revenue
$864,993
Expenses
$2,927,064
Assets
$19,817,961
Liabilities
$19,241,276

Source: IRS Form 990. Selected filing: tax year 2016. Amounts in USD.

Leadership & pay

9 people listed

Executive titles in this filing

  • STANLEY D HAYES (PRESIDENT/CEO)

Highest reported compensation

  • STANLEY D HAYES (PRESIDENT/CEO): $53,253 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2016. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

Provide financial services and products to members. Valley state credit union (vscu) was placed into conservatorship by the state of Michigan, department of insurance and financial services on august 17, 2016 due to unsafe and unsound practices. The state of Michigan department of insurance and financial services subsequently appointed the national credit union administration as conservator on november 9, 2016. As conservator, ncua is working to resolve unsafe and unsound operating conditions at the credit union. The vscu board of directors and the ceo, stanley hayes, was dismissed on august 17, 2016 after the Michigan department of insurance and financial services conserved vscu.

What it reported doing in 2016

The credit union provides a variety of loans to members including real estate, credit card, vehicle and other. The total number of loans outstanding at 12/31/2016 was 1,602.

Operating model

Revenue model
Earned-program. 92% of the money available for current operations came from fees and other program revenue.
Distribution model
Direct operator. The filing allocates 100% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - A large share of available resources goes toward mission work and the filed numbers largely add up. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 89
  • Transparency & Controls: 90
  • Accountability: 26
  • Sustainability: 35
  • Growth: 40

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 100%; rating input score 100
  • Program expense ratio: 100%; rating input score 100
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 62nd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: Limited
  • Major donor itemization: Limited
  • Related-party transparency: Limited

Accountability

  • Independent voting board: Limited
  • Governance controls: 5 of 8 controls in place; rating input score 62
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Pass
    • CEO compensation review process: Pass
    • Other executive compensation review process: NotApplicable
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Missing
    • Independent financial-statement audit: Fail

Sustainability

  • Operating margin: -238.4%; rating input score 0; 0th percentile among comparable filings
  • Total-asset coverage ratio: 6.77; rating input score 89; 89th percentile among comparable filings
  • Liabilities to assets ratio: 0.97; rating input score 8; 8th percentile among comparable filings
  • Officer compensation ratio: 1.8%; rating input score 65; 65th percentile among comparable filings

Growth

  • Program expense growth: 120% per year; rating input score 100; 99th percentile among comparable filings
  • Revenue growth: -0.2% per year; rating input score 0; 26th percentile among comparable filings
  • Asset growth: -0.2% per year; rating input score 0; 30th percentile among comparable filings

Details

  • Where the money goes: 100% of revenue deployed · 100% of spending went to programs
  • Governance: 5 of 8 filing controls reported
  • Programs: 2 filed program accomplishments
  • Leadership: top reported pay $53K · 9 people listed
  • Consistency: 32 of 32 current checks pass
  • Schedules: 2 filed schedules
  • Filing history: 7 filing years from 2010 to 2016
  • Contacts: How to reach this organization
  • Money network: 1 filed money-flow record
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Review — Accountability: Governance controls: 2 of 7 not reported.
  • High — Sustainability: Operating margin scored 0/100.
  • High — Growth: Revenue growth scored 0/100.
  • High — Growth: Asset growth scored 0/100.
  • High — Sustainability: Liabilities to assets ratio scored 8/100.