Michigan Credit Union League Home » Information Services » Publications » Contact » 2006 » 2nd Quarter » Statement of Activities

Consolidated Statement of Activities
and Changes in Members' Net Assets

2005 was an exceptional year for the MCUL and its members. The MCUL Board of Directors decided to distribute excess earnings in two ways. First, a one-time dues reduction of 24 percent — $500,000 — was given to credit unions. Second, additional expenditures of $1,192,000 were made to benefit the membership in areas of cooperative advertising, research, on-line learning, small credit union support and other initiatives.

Revenue from Sales, Programs and Service Fees increased by 4.6 percent due to higher-than-expected income from subsidiaries. MCUL membership fees of $1,537,000 were net of a reduction of 24 percent or $500,000 that benefited all credit unions. Members’ Net Assets fell below the $40,700,000 benchmark due to planned dues reductions and contributions to cooperative advertising, research, on-line learning, SAS credit union support and other initiatives. Additionally, the investment portfolio performed slightly below the 7 percent targeted return.

Cost of Sales, Programs & Services Provided included $1,000,000 for the cooperative advertising campaign designed to benefit credit unions, as well as $192,000 in new expenditures for research, on-line learning, small credit union support and other initiatives.

The MCUL/CUcorp Consolidated Statement of Activities and Changes in Members’ Net Assets reports a net decrease of $1,926,000 as a planned result of the MCUL Board’s decision to distribute excess earnings.

The MCUL and CUcorp are well positioned for the future. A financially strong League and service corporation will ensure the delivery of excellent products and services to credit unions in the years ahead.