THE ANNUAL REPORT OF THE CREDIT UNION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00498A000600070008-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 9, 2016
• Document Release Date: October 23, 2000
• Sequence Number: 8
• Publication Date: June 24, 1976
• Content Type: MF

Executive Reg-istiy
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24 June 1976
MEMORANDUM FOR: Deputy Director of Central Intelligence (Designee)
SUBJECT : The Annual Report of the Credit Union
1. A few months ago we called to Mr. Bush's attention a
particularly informative and thoughtful Employee Bulletin on
the status of the Agency-sponsored group life insurance pro-
gram. We are happy, here, to single out for praise another
document that hits the mark, the annual report of the Credit
Union. This report gives a brief, but revealing picture of
what is going on there. Depositors who want evidence that
their savings really are still there will find it. Those
seeking reassurance thata loan request will not be turned
down cold will find it. And those inherently suspicious of
everyone and everything will have to contend with the know-
ledge that, at most, only a small percentage of the profits
are being used to buy fast cars for the managers and to hire
pretty girls who can't type, count, or answer the phone.
2. The distribution of this report prompts us once again
to ask: Why is it that, in similar fashion, the annual reports
of EAA, EAF, and PSAS are not disseminated? For many years it
was taken for granted by the vast majority of CIA employees
that their compatriots could be counted on to reason and act
responsibly, with good judgment, and in tune with the times.
There was no need, here, for the type of policing that would
be normal practice in the control of the same activities in
other environments. The recent revelations have caused a
great many of us to question the wisdom of that blind faith--
trusts have been misplaced; silence is no longer acceptable
evidence that everything is OK. We recommend that the manage-
ment of the EAA, EAF, PSAS be urged to take notice of the fine
example set by the management of the Credit Union and do like-
wise.
THE MANAG MENT ADVISORY GROUP
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northwest
northwest federal credit union
spring 1976
president's message
1975 was a busy and significant year for
the Credit Union. Assets grew at a rate
substantially higher than the national
average, and total assets reached an all-time
high. As a result, our Credit Union clearly
has become a major financial institution. As
in all large institutions, the Board of Directors
faced a variety of problems and difficulties
this past year. Fortunately, however, Board
and Committee members have such a range
of expertise that we were able to resolve
various problems successfully.
A Modernization Committee was formed
in 1975 to examine various ways to improve
the Credit Union's systems and services.
Great progress was achieved, and we now
hope to install a significantly better system
sometime during 1976.
Overall, the Board is proud of Credit
Union achievements and performance in
1975 and is optimistic about 1976. We
promise to study better means of service to
you, the members, and to continue to review
interest and dividend rates to keep them at
the most favorable levels possible. We
assure you that all associated with the
management of your Credit Union are fully
aware that we are dealing with the life
savings of members entrusted to our
care-a most serious responsibility.
announcements
? E. Henry Knoche resigned from the Board
of Directors effective 1 May 1976. At a
special meetin on 3 May 1976 the Board
appointed who had the
next highest number of votes in the
previous election, to the Board to serve
until the next election.
? The Board of Directors declared a 6.5%
dividend plus a 5% interest refund for the
first quarter ending 31 March 1976.
? The Board introduced a new educational
loan plan called OELP (Omnibus
Educational Loan Plan) in September
1975.
? The Credit Union hours at Headquarters
are 9:00 to 4:00 daily.
? U.S. Bicentennial PROOF Silver Coin sets
are available at the Credit Union offices at
$12.50 per set.
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manager's report
distribution of income 1975
Borrowers & Share Insurance .........
120,428
2.06%
Reserve for Bad Loans ..............
292,432
5.00%
Salaries ...........................
572,745
9.79%
Computer Services ..................
28,993
.50%
Operating Expenses .................
203,904
3.48%
Dividends .........................
4,628,043
79.17%
Undivided Earnings .................
2,089
treasurer's report
Loans .............................................
42,127,603
36,958,158
Less: Allowance for Loan Losses ...................
50,000
....
Cash ..............................................
974,984
362,491
Savings & Loan/CD .................................
....
500,000
Federal Agency Securities ...........................
30,749,504
24,471,535
U.S. Government Obligations .........................
6,907,515
3,920,290
Common Trust Investments ..........................
3,838,634
1,637,239
Furniture, Fixtures & Equipment .......................
12,786
12,576
Accrued Interest ....................................
1,013,275
....
Loans to Other Credit Unions .........................
....
15,000
Other .............................................
3,352
960,510
Total ......................................... $85,577,653
$68,837,799
liabilities:
Shares ............................................
80,238,866
64,977,635
Regular Reserve ....................................
2,781,973
2,578,230
Reserve for Contingencies ...........................
108,281
108,281
Undivided Profits ...................................
64,285
50,729
Dividends .........................................
1,242,768
1,000,144
Other .............................................
1,139,340
120,716
Unclaimed Shares ..................................
2,140
2,064
Total ......................................... $85,577,653
$68,837,799
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supervisory committee report
The Supervisory Committee of the
Northwest Federal Credit Union (NWFCU)
has the responsibility for conducting
independent audits of Credit Union
operations which includes evaluating the
performance of elected officials and
employees. The Committee, during 1975,
performed these duties in accordance with
procedures established by the National
Credit Union Administration (NCUA).
A Report of Audit of the NWFCU for the
period 1 January 1974 to 31 March 1975
has been furnished to your Board of
Directors and to the NCUA. In addition,
Federal Examiners from the Administrator's
office conducted a review of NWFCU
operations for the period ended 31 July
1975.
Based on the results of our audit activities,
the Supervisory Committee is satisfied that
NWFCU assets are properly safe-guarded
and that results of financial operations are
accurately stated. In our judgement, your
elected officials, managers and staff of the
Credit Union qre performing their duties in
an efficient and businesslike manner.
Northwest Federal Credit Union
P.O. Box 663
Washington, D.C. 20044
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FUND CAMPAIGN PAMPHLET
Enclosed is your CFC/EAF/PSAS Consoli-
dated Fund Campaign pledge card. Return the
pledge card to your Keyperson whether or not
you make a contribution. Return of all pledge
cards is required for audit purposes and to en-
sure that no contribution is lost.
Consolidated Fund Campaign is the combi-
nation of the Agency's fund drive for the Edu-
cational Aid Fund and the Public Service Aid
Society being conducted concurrently with the
Metropolitan Washington Area's Combined Fed-
eral Campaign.
Combined Federal Campaign (CFC) repre-
sents many charitable organizations and agen-
cies. You may designate a specific agency or
agencies to receive your contributions by enter-
ing that Agency s assigned number in the box
on the back of the pledge card. A listing of CFC
organizations and agencies with assigned num-
bers are listed in the CFC contributor's leaflet.
HOW TO MAKE YOUR
CFC/EAF/PSAS CONTRIBUTION
1. Cash or Check: Contributions by check for
CFC, EAF, or PSAS should be made payable to
CONSOLIDATED CHARITIES only. Indicate
the dollar amount being contributed in the block
marked "Cash or Check" on the pledge card.
2. Payroll Deduction: Complete your pledge
card and return it to your Keyperson. In order
for the Payroll Branch to deduct your contribu-
tion each payday, you must sign the card.
a. When you use the payroll deduction plan,
you authorize the deduction of a specific
amount from your pay each pay period during
1976. This authorization remains in effect un-
less terminated by you in writing.
b. Indicate on your card the total annual
amount you wish to pledge and the amount
to be deducted each pay period. The minimum
deduction is 25? biweekly for a total annual
pledge of $6.50. A table showing various bi-
weekly deductions and the corresponding total
annual pledge is located on the last page of
this pamphlet.
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your annual pledge on your card and indicate
the amount in the box provided for Direct Billing.
Also print your room number in the box on the
top line. You may make payments on your pledge
any time during 1976. Quarterly statements will
be sent to you on the unpaid balance (April,
July, October 1976, and January 1977 prior to
closing our books).
4. Yqu may pay your pledge by a combination
of the/above plans.
EXAMPLE: A $25.00 pledge may be paid
by a deduction of 500 per pay period if you
are paid every 2 weeks and the remaining
$12.00 may be paid in cash or check during
the Drive, or by Direct Billing in quarterly
payments.
5. Personnel paid every four weeks may con-
tribute to CFC and/or EAF only by cash, check,
or Direct Billing.
CONTRIBUTIONS
1. Your contribution to PSAS may be made
either by check or cash. Payroll Deductions and
Direct Billing plans are not available for PSAS
contributions.
2. Checks are to be made payable to "CON-
SOLIDATED CHARITIES."
CONFIDENTIAL CONTRIBUTIONS
1. Enclose your pledge card with your contri-
bution in a sealed envelope. Write the control
number of the card on the envelope and turn
it in to your Keyperson. This envelope will then
be delivered, UNOPENED, to the Fund Drive
Coordinator.
1. The Fund Drive Coordinator will furnish
you a receipt for cash contributions to CFC,
EAF, and PSAS if you write "Receipt Requested"
and your name and office address.
2. Receipts for Direct Billing pledges will be
issued by the Office of the Fund Drive Coordi-
nator when payment is made in cash.
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Through the Educational Aid Fund, EAF, you
help the sons and daughters of deceased, retired,
and active Agency employees fulfill their hopes
and plans for further education. Your generosity
is a warm and friendly act, a manifestation of
faith in the future.
EAF awards come either in the form of direct
grants or interest-free loans, which are not repay-
able until after the student graduates. The vast
majority of awards are loans, and the principal
source of funds for the awards is the annual EAF
Campaign.
Factors taken into consideration in selecting
EAF awards are: financial need; academic
achievement; motivation, as demonstrated by
part-time work and extracurricular activities; and
a personal essay written by the applicant. All
applications are reviewed and considered in
anonymous form by the EAF Selection Commit-
tee and, in turn, the EAF Board of Trustees.
More than one member of the same family
may receive awards and awards may be given
to the same individual in successive years if the
student reapplies. Moreover, the EAF Board
within the past two years has instituted a new
policy of considering applications from students
entering or attending junior colleges and post-
highschool-vocational schools, rather than limit-
ing the awards to four-year college students as
in previous years.
The EAF also awards four special grants each
year:
The Matthew Baird Award is granted ex-
elusively tote student who demonstrates un-
usually high personal motivation through self-
help.
The John A. McCone Award is granted to the
student whose financial need is particularly
significant.
The Frank G. Wisner Scholarship is awarded
on the basis of outstanding academic and per-
sonal achievement.
The Lawrence K. White Award is granted to
the student who has demonstrated unusual
leadership qualities.
Last year, your contributions totaled $31,036.30
and helped make possible the awarding of 35
loans ranging from $750 to $1,000, 5 special
grants of $300 each and five special awards
totaling $8,500. In its eleven years of existence,
the EAF has given 406 awards valued at $244,400.
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mediate family.
? Relief from indebtedness under circum-
stances meriting assistance and beyond
individual's capacity for repayment in
normal period of time.
PSAS will not make loans that would normally
be obtained from the Credit Union, banks or
other sources, or for matters which are primarily
under the control of the individual for his per-
sonal economic convenience, such as financing
the purchase of personal property. The applicant
must demonstrate a pressing need and must have
exhausted every reasonable means of self-assist-
ance. Requests for assistance should be submitted
by the applicant directly to the Personal Affairs
Branch, Office of Personnel, Room 5 E 11 Head-
quarters, X-6081 or 6341. All such requests will be
handled in confidence.
SOURCE OF FUNDS
PSAS obtains its funds entirely through volun-
tary contributions. Such contributions are de-
ductible for income tax purposes. PSAS would
have been unable to achieve its objective without
the support it has received from many. individ-
uals. During the 1974-1975 Consolidated Fund
Campaign, PSAS received $9,412.84.
ADMINISTRATION
The Society is administered by a Board of
Trustees composed of officials from various
components of the Agency. The. Board meets
annually to consider policies and affairs. of the
Society and to elect officers. An Executive Com-
mittee is empowered to act for the Board in the
consideration and approval of requests for
assistance.
During the Fiscal Year 1975, eighteen loans
were approved for a total of $21,354.69.
LOAN ACTIVITIES AS OF
30 JUNE 1975
Loans receivable ..........
65
$94,366.34
New loans 1 Jan-30 June ....
9
10,112.43
Paid up loans 1 Jan-30 June ..
8
3,964.61
Payments received in 1975 ...
171
9,557.61.
Average monthly income from
loan repayments in 1975 ..
1,592.93
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PAYROLL DEDUCTION SCHEDULE
Listed below is a scale of biweekly deductions from 250 to $15.00 and the total annual value of each if deducted from
your salary every pay period for one full year. If you wish to have your pledge paid by payroll deduction, please deter-
mine the amounts you wish deducted each pay period from this scale and the corresponding annual pledge and record
these amounts in the appropriate spaces on the pledge card.
Biweek
Deduc.
Annual
'Pledge
Biweek
Deduc.
Annual
Pledge
Biweek
Deduc.
Annual
Pledge
Biweek
Deduc.
Annual
Pledge
Biweek
Deduc.
Annual
Pledge
Biweek
Deduc.
Annual
Pledge
$ .25 =
$ 6.50
$2.75 = $ 71.50
$5.25 = $136.50
$ 7.75 =
$201.50
$10.25 =
$266.50
$12.75 =
$331.50
.50 =
13.00
3.00 =
78.00
-5.50 =
143.00
8.00 =
208.00
10.50 =
273.00
13.00 =
338.00
.75 =
19.50
3.25 =
84.50
5.75 =
149.50
8.25 =
214.50
10.75 =
279.50
13.25 =
344.50
1.00 =
26.00
3.50 =
91.00
6.00 =
156.00
8.50 =
221.00
11.00 =
288.00
13.50 =
351.00
1.25 =
32.50
3.75 =
97.50
6.25 =
162.50
8.75 =
227.50
11.25 =
292.50
13.75 =
357.50
1.50 =
39.00
4.00 =
104.00
6.50 =
169.00
9.00 =
234.00
11.50 =
299.00
14.00 =
364.00
1.75 =
45.50
4.25 =
110.50
6.75 =
175.50
9.25 =
240.50
11.75 =
305.50
14.25 =
370.50
2.00 =
52.00
4.50 =
117.00
7.00 =
182.00
9.50 =
247.00
12.00 =
312.00
14.50 =
377.00
2.25 =
58.50
4.75 =
123.50
7.25 =
188.50
9.75 =
253.50
12.25 =
318.50
14.75 =
383.50
2.50 =
65.00
5.00 =
130.00
7.50 =
195.00
10.00 =
260.00
12.50 =
325.00
15.00 =
390.00
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1. Contributions to CFC, EAF, and PSAS are
tax deductible items.
2. Contributions to CFC and EAF paid by
payroll deduction may be deducted on your 1976
tax return. If you wish to deduct your contribu-
tions to CFC and EAF on your 1976 tax return,
you should pay the balance of your pledge in cash
or check before 31 December 1976.
3. If you are making a contribution by payroll
deduction, you should, retain your earning state-
ments to verify the amount to be used on your
tax return. You may obtain a statement of with-
holding from the payroll office if you are re-
quired by a tax authority to show proof of the
amount withheld for charitable purposes.
PUBLIC SERVICE AID SOCIETY
(PSAS)
The Public Service Aid Society is a non-profit
corporation organized under the laws of the
District of Columbia on 31 December 1955 for
the purpose of rendering assistance, financial
and otherwise, to eligible individuals in urgent
need of assistance who have exhausted every
reasonable means of self help.
POLICIES
The Public Service Aid Society assists de-
serving individuals through financial and other
means; each request is considered in confidence
on an individual basis.
Direct financial assistance is offered as a non-
interest bearing loan. Loans are generally made
on a deferred payment basis and with a level of
payment which takes into account the individual's
particular circumstances.
When financial assistance is not required, aid
may be in the form of advice and counseling or
guidance in contacting appropriate health or
other assistance organizations.
Typical of the needs for which PSAS has pro-
vided assistance are the following.:
? Emergency or unusually heavy medical or
hospital expenses, not covered by insurance.
? Emergency travel funds when critical ill-
ness or death occurs in the immediate
family.
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