41st Annual Defense Credit Union Council Overseas Subcouncil Meeting

April 29—May 3, 2014 Rome, Italy Co-Hosted by PenFed & DCUC 41st Annual DCUC Overseas Sub-Council Meeting Co-hosted by PenFed and DCUC April 29 – May 3, 2013 The Parco Dei Principi Grand Hotel Rome, Italy

Tuesday, April 29 Location

1200 – 1600 Registration Desk Open Lobby 1700 – 1900 Welcome Reception at the Parco Dei Principi Farnese (Level A)

Wednesday April 30

0730 – 0830 Registration Desk Open Level A 0830 – 0845 Opening Remarks & Welcome Orsini/Torlonia Mr. Arty Arteaga, President/CEO, Defense Credit Union Council Level A Mr. Frank Pollack, Immediate Past President/CEO, PenFed 0845 – 0945 Defense Issues Mr. Merrick Carey CEO & Founder of the Lexington Institute 0945 – 1030 Army Financial Operations Mr. James Watkins Deputy Assistant Secretary of the Army, Financial Operations 1030 – 1050 Networking Refreshment Break Corridor 1050 – 1130 Vision of a Changing Industry Ms. Mary Martha Fortney President/CEO, NASCUS 1130 – 1215 Shared Branching Industry Update Ms. Sarah Canepa-Bang President, CO-OP Shared Branching, FSCC, LLC 1215 – 1220 Morning Wrap-up…Mr. Arty Arteaga 1220 – 1315 Lunch for all delegates and guests Farnese 1330 – 1800 Networking & offsite activity Visit of the Vatican Museums and St. Peter’s Basilica Meet in Lobby 1830 Dinner on your own and evening to explore Rome

Thursday, May 1

0830 – 0835 Administrative Remarks 0835 – 0915 DFAS & Overseas Military Banking Program Update Orsini/Torlonia Mr. Bill Hawbecker Director, DOD Bank & Credit Union Operations, DFAS

Thursday, May 1 continued Location

0915 – 0950 Department of the Army Credit Union Liaison Update Orsini/Torlonia MAJ Emma Parsons Army Banking Officer, USAFMCOM 0950 – 1020 USAREUR Credit Union Liaison Update CPT Juan Pratts USAREUR Banking Officer, 266th Fin Mgt Center 1020 – 1040 Networking Refreshment Break 1040 – 1100 USAFE Credit Union Liaison Update MSgt Mario G. Gabor USAFE/AFAFRICA Command Travel Pay Policy Manager 1100 – 1125 NAVEUR Credit Union Liaison Update Dr. Luigi Amato Banking Officer, Navy Region Europe, Africa, Southwest Asia 1125 – 1215 ATM/POS Network Update Mr. John Broda President & CEO, Armed Forces Financial Network 1215 – 1330 Lunch for all delegates and guests Farnese 1400 – 1730 Networking & offsite activity Meet in Lobby Rome Baroque Walking Tour 1800 – 2000 Casual group dinner at I Quattro Fiumi on Piazza Navona

Friday, May 2

0830 – 0835 Administrative Remarks Farnese 0835 – 0915 Defense Credit Union Council Update Mr. Arty Arteaga President/CEO Defense Credit Union Council 0915 – 1015 Legislative Update Mr. John J. McKechnie III Partner, Total Spectrum 1015 – 1035 Networking Refreshment Break Corridor 1035 – 1115 CUNA Mutual Group Update Mr. John Slusher Vice President, CUNA Mutual Group 1115 – 1200 Overseas Subcouncil Executive Session Mr. Arty Arteaga 1200 – 1330 Lunch for all delegates and guests Farnese 1330 – 1800 Optional Activities on your own 1830 – 2200 Gala Dinner Meet in Lobby Coffee House – Palazzo Colonna

Saturday, May 3 0915 Meet in Lobby for Optional Tour 0930 – 1600 Optional Tour Villa d’Este in Tivoli with lunch at Taverna Il Falcone

Sunday, May 4 All Day ---- Final Departures 41st Annual DCUC Overseas Sub-Council Meeting Attendees Name (Last, First) Organization Position Guest Amato, Dr. Luigi Navy Region Europe BLO/CULO NAVEUR Bartelle, Michael Andrews FCU VP Overseas Operations Pamela Bartelle Bowman, Henry Andrews FCU Director Lana Bowman Breland, Martin Tower FCU President/CEO Constance Breland Broda, John AFFN President/CEO Canepa Bang, Sarah CO-OP Shared Branching - FSCC President/COO Steve Bang Cardile, Frank Andrews FCU Board Chair Barbara Cardile Carey, Merrick Lexington Institute CEO Melissa Carey Crane, William America's CU Board Chair Mara Lynn Crane DeMesme, Ruby Andrews FCU Director Donald DeMesme Fallis, Jack Global CU President/CEO Deana Daniels Fortney, Mary Martha NASCUS President/CEO Ken Fortney Gabor, MSgt Mario Dept. of the Air Force USAFE Liaison Goff, John Keesler FCU President/CEO Cyndee Goff Hanchett, David Service CU Board of Directors Hawbecker, Bill DFAS Director, DoD Banking & CU Hayes, James Andrews FCU President/CEO Yesceni Hayes Hollingsworth, James Keesler FCU Chairman Cheron Hollingsworth Hudak, Ronald PenFed CU Board Member Jane Hudak Joyce, Thomas Service CU VP Overseas Operations Kasold, Bruce PenFed CU Director Emeritus Patricia Kasold LaPointe, Robert Global CU Vice Chairman Karen LaPointe Leonard, Kenneth America's CU President/CEO Jae Leonard Lucio, Ed PenFed CU Supervisory Member Maria Lucio Angel Lucio McKechnie, III, John Total Spectrum Partner Martha Dodson Parsons, MAJ Emma Dept. of the Army Army Banking Officer Perrone, Jamie Keesler FCU Secretary Bob Perrone Petersen, Robert State Department FCU Vice Chairman Kyoko Petersen Pollack, Frank PenFed CU Immediate Past President/CEO Kathleen Pollack Pratts, CPT Juan Dept. of the Army USAREUR BLO/CULO Quinn, James Pentagon FCU Chairman Claudia Hume Roche, Jan State Department FCU President/CEO Schwartz, Marlene State Department FCU Chairman Kimberly Kasko Siegert, Bill PenFed CU Director Courtney Siegert Faye Siegert Simmons, Gordon Service CU President/CEO Linda Simmons Belinda Simmons Slusher, John CUNA Mutual Group Vice President Sales Vivian Slusher Spell, Tabitha Keesler FCU AVP Operations UK Jonathan Spell Stith, Lonnie PenFed CU Director/Treasurer Stryker, Bruce Navy FCU Regional Manager, Europe Loredana Stryker Tortorelli, Joe Global CU Chairman van Rossum, David Service CU Board of Directors Patricia van Rossum Vinson, Bill PenFed CU Vice Chairman Dorothy Vinson Watkins, James Dept. of the Army DASA (FO) Whiting, Joanne Service CU Board of Directors Russell Hilliard

DCUC Staff Arteaga, Arty DCUC President/CEO Carol Arteaga Gilda Dieringer Hernandez, Jennifer DCUC IT Specialist Krajnak, Lizette DCUC Administrative Assistant Sked, Janet DCUC Conference Manager

The Defense Credit Union Council wishes to thank our sponsors for their continued support 2014 CONFERENCE TOURS AND OFF-SITE EVENTS ROME, ITALY

WELCOME TO ROME

Since its foundation over 2,750 years ago on seven hills near the banks of the River Tiber, Rome has grown into a city of three million people covering 580 square miles. Contained within this area is the independent Vatican City State. Its history can be glimpsed in the crumbling columns of the ancient Empire where the Colosseum is currently under reconstruction and the Roman Forum, though primarily ruins, provides a view into thousands of years of history. The medieval alleys lined with Renaissance palaces such as Campo de’ Fiori, and charming Baroque fountains splashing on elegant piazzas casts a very different light on Rome’s evolution. Rome also has scores of museums, from the vast Vatican to compact collections like the Galleria Borghese (located near our hotel). There are hundreds of churches filled with great art, from tiny chapels to the great basilicas and St. Peter’s itself.

Above all, Rome is the world’s greatest historical city, filled with incredible history and art. As we all know, Rome was not built in a day, and our brief time here is a reminder that we can but glimpse and savor some of the highlights of this great city before returning home.

TUESDAY, APRIL 29 WELCOME RECEPTION

Once again, for your ease and convenience after a long travel schedule to Rome, this year’s Welcome Reception will be held at our conference hotel, the Parco dei Principi. If the weather cooperates, our goal is to enjoy some fresh air on their beautiful terrace while we network with friends old and new!

WEDNESDAY, APRIL 30 TOUR OF THE VATICAN

Emperor Constantine built the first basilica on the site where St. Peter was martyred and buried in AD324. Since then, the Vatican became the residence of all the popes who succeeded him. Sumptuously decorated with marble, mosaics and gold, it was pillaged during the barbarian invasions, but remained the central church of Christendom for over 1,000 years. The Vatican has been a sovereign state since February 1929, and the Great Basilica of St. Peter’s continues to draw pilgrims and guests from all over the world.

Although much of the Vatican is out of bounds to visitors, two of Rome’s greatest sights lie within its confines: the basilica itself and the Musei Vaticani (Vatican Museums), housed in the papal palaces. With the added attractions of Michelangelo’s Sistine Chapel and the Raphael Rooms, their wonderful collections of Classical sculpture make them the finest museums in Rome.

THURSDAY, MAY 1 GUIDED BAROQUE CITY TOUR

A motor coach will bring us from our hotel to a convenient location where we will begin our journey into Rome’s most beautiful piazzas and fountains and will help us to discover why the Eternal City is home to the Dolce Vita. This guided tour will lead us to the immortal Trevi Fountain, a Baroque Jewel, where we will have the chance to throw a coin into the fountain and ensure our return trip to Rome!

A short walk through the cobbled streets brings us to the Pantheon, a colossal monument, dating back 2,000 years and is still used as a working church to this day. Discover the secrets of the mystery behind the gaping hole in the ceiling and visit the tombs of Raphael and the kings of Italy. Next, the walk will head to Palazzo Madama, seat of the Senate of the Republic and then onward to Piazza Navona, where Bernini’s treasured “Fountain of the Rivers” proudly rises from the center of the piazza. This square is said to be the most beautiful in Italy.

THURSDAY, MAY 1 (Cont.) CASUAL GROUP DINNER at I QUATTRO FIUMI

At the conclusion of our Baroque Tour, there will be some free time at Piazza Navona to stroll through the square and its shops, take pictures or to simply stop for a coffee or glass of wine and relax and enjoy the ambiance of such a special place. Afterward, we will gather at I Quattro Fiumi for dinner. This restaurant is right in the center of Piazza Navona, where we will enjoy a casual, typical Italian meal overlooking the bustling square with views of Bernini’s 17th century masterpieces. Afterward, a bus will bring us back to the hotel.

FRIDAY, MAY 2 GALA DINNER at the COFFEE HOUSE at PALAZZO COLONNA

Rome's grandest family built itself Rome's grandest palazzo in the 18th century (though its construction began in the 14th century) —it is so immense, it faces Piazza Santi Apostoli on one side and the Quirinal Hill on the other. While still home to some Colonna patricians, the palace also holds the family picture gallery, open to the public just one day a week.

History of the Palazzo

The construction of the various wings of Palazzo Colonna lasted for five centuries. This has led to the overlapping of different architectural styles, interiors and exteriors, which characterize and reflect the different periods.

From 1300 to 1500 it acted as a family fortress. Oddone Colonna, elected Pope on November 11, 1417 under the name of Martin V, appointed the Palace as the Pontifical Seat and lived there from 1420 to 1431, the year of his death.

In those ten years, within the austere rooms of Palazzo Colonna, Pope Martin V designed and implemented a great plan for a cultural, urban and administrative rebirth of the city of Rome, which lay in devastating conditions after the period of papal exile to Avignon and the Western Schism. FRIDAY, MAY 2 (Cont.) GALA DINNER at the COFFEE HOUSE at PALAZZO COLONNA

In 1527, during the sack of Rome by the troops of Emperor Charles V, Palazzo Colonna was one of the few buildings that was not destroyed due to the good relationship of the family with the Empire. Instead, it offered a safe haven for more than three thousand Roman citizens.

Throughout the 1600s, the Palace took the form of a large Baroque palace at the will of three generations; the leading family members being Philip I, Cardinal Girolamo I and Lorenzo Onofrio, who relied on architects and artists of great skill and reputation.

The Coffee House of Palazzo Colonna (where our Gala Dinner is being held) is located in the Southeast pavilion of the building’s perimeter. It was built between 1730 and 1733, commissioned by Prince Fabrizio IV.

As for its artistic value, the pavilion is one of the best examples of the Roman Rococo, a style that in Rome is not as common as the Baroque. The interior of the Coffee House, described by Pinto as “the most delightful and delicate eighteenth-century space in Rome”, particularly stands out for its harmony.

Moreover, on the building’s walls you can find some ancient bas-reliefs, most of which date back to the most refined period of the Roman art, the one between Augustus’ and Hadrian’s reigns.

The decoration of the ceiling was made by painter Francesco Mancini, a student of the famous artist Guido Reni. It portrays the final and triumphal scene of the romantic myth of Psyche, the “Psyche’s Apotheosis”, commendably executed and perfectly preserved on the vaulted ceiling of the Coffee House.

SATURDAY, MAY 3 OPTIONAL TOUR – VILLA d’ESTE TIVOLI

Tivoli is located approximately 19 miles outside Rome and is perched among olive groves on a ridge of the Monti Tiburtini. In Classical times, it was a retirement town and summer retreat for wealthy Romans, including the emperor. Later Renaissance nobility built country villas throughout the town and surrounding area. The most famous of these is the Villa d’Este.

SATURDAY, MAY 3 (Cont.) OPTIONAL TOUR – VILLA d’ESTE TIVOLI

The Renaissance Villa d'Este was built in the 1550s for Cardinal Ippolito d'Este, the son of Lucretia Borgia. Built over a Benedictine convent, the palace was intended for entertaining and contains lavishly frescoed reception rooms. The main attraction for visitors, however, is the breathtaking garden. Designed to impress the Cardinal's guests, the Villa d'Este's gardens are composed almost exclusively of water features. Fountains of every description dazzle the onlooker, from the grand 'Fountain of the Dragons' and 'Hundred Fountains', to a miniature watery reproduction of Rome. The centerpiece, the gigantic Water Organ Fountain, cascades down a huge drop into quiet, shady pools.

Lunch will be included at Taverna Il Falcone.

After lunch, there will be time to wander the streets of Tivoli to indulge in some souvenir shopping and enjoying the views over Rome before we return to the city.

1600 Wilson Boulevard, Suite 900 Arlington, VA 22209 P: 703-522-5828 | F: 703-522-5837 le xingtoninstitute .org http://www.lexingtoninstitute.org/merrick-mac-carey/

Merrick “Mac” Carey

Chief Executive Officer

Merrick Carey is CEO and founder of the Lexington Institute, a public policy think tank established in 1998 and based in Arlington, Virginia. The Institute runs research, press efforts and policy forums to advance democratic capitalism and a strong national defense.

During the 1980s, Carey was Press Secretary to Representative Jack Kemp, Chief of Staff to Representative James Courter, and Director of Intergovernmental Affairs for New Jersey Governor Thomas Kean. From 1990-1993, Carey was Executive Vice President of the international economic advisory firm Johnson Smick International. He also served from 1989 through 1996 as an Intelligence Officer in the United States Naval Reserve and was a mobiliz ed reservist for Operations Desert Shield and Desert Storm (to Navy Headquarters, Europe), as well as an Air Intelligence Officer in 1996 preparing missions and flying with VP-11 in support of Operation Decisive Edge over Bosnia.

Carey has been published in Barron’s, Proceedings, the Richmond Times Dispatch, The San Diego Union Tribune, and numerous other publications. He has lectured at the Naval War College, Marine Corps University, George Washington University, the Heritage Foundation, and other business and government forums.

Carey has a B. A. in History and Political Science from Drew University in Madison, New Jersey. He is married to the former Melissa Coggeshall, and they have a twenty-one-year old son, Randy, a nineteen-year old daughter, Ellen, and an eleven-year old son, Merrick. They live in Arlington, Virginia. 4/21/2014

THE DEFENSE LANDSCAPE

Merrick Carey CEO, Lexington Institute

Defense Credit Union Council April 30, 2014

Threats Drive Defense Spending

Defense Spending as % of GDP

50% World War Two 40%

30% World War One 20% Korean War Spanish- Vietnam War 10% American War

0% 1890 1910 1930 1950 1970 1990 2010 Imperialism Fascism Communism Terror

• Defense is the only sector of the U.S. economy where demand is driven mainly be external, non-economic forces.

Defense Macro-Driver: Threats

• The modern defense department was made possible by an unusually protracted, urgent threat -- the Cold War. -- Peer industrial competitor -- Technological rivalry -- Predictable behavior -- Consensus on danger

Duration & Intensity of Threats

Cold War

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 Imperialism Fascism Communism Terrorism

• Today, there is no peer competitor, little predictability, and scant agreement on dangers -- signaling unstable future demand.

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Has the U.S. Defense Spending Pattern Changed?

• Since 1960, the buying power of the Pentagon budget has varied within a well-defined range.

$600B Carter Clinton ($2009) $300B Johnson Reagan Bush

• But in 2008, outlays broke out of the range on the upside, and hit nearly $700B per year. • This reflected the temporary cost of fighting two wars at once, and more durable factors such as the rising cost of the All Volunteer Force. • However, we have begun reverting to the postwar norm, due to receding threats, large deficits, and an ambitious domestic spending agenda.

Defense Macro-Driver: Economy

• Since 1950, the world’s biggest economy has generated whatever resources the Pentagon required, but that may be changing. -- Slow growth, budget debt, large welfare state. -- On average, the U.S. share of global output fell one percentage point every year 2001-2010.

U.S. Share of Global Output & Military Spending 41%

32% 33% 23%

Economic Military Economic Military Output Spending Output Spending

2001 2013

• U.S. shares of global economic output & military outlays have drifted out of alignment.

Defense Macro-Driver: Budget

• After four straight years of trillion-dollar deficits, the need for new federal borrowing has moderated. • However, CBO projections reflecting recent tax increases and spending cuts still indicate a structural deficit. • Average deficit 1974 to 2013 was 3.1%

Annual Deficits 900

700 804 680 722 627 500 576 492 536 $ Billions 469 300

100

-100 2013 2014 2015 2016 2017 2018 2019 2020

% of GDP 4.1% 2.8% 2.6% 2.8% 2.9% 3.0% 3.3% 3.5%

Congressional Budget Office: April 2014

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Federal Debt Held By The Public

Federal Debt

2014 = $12.7 trillion 2024 = $20.9 trillion

Interest Payments on Federal Debt 2014 $227 billion 2018 $491 billion 2024 $876 billion

Congressional Budget Office: April 2014

Military Spending In Last Downturn

(Billions of constant 2012 dollars) Functional 1985 1995 % change 2000 % change Category budget budget from 1985 budget from 1985 Military 142,330 106,485 -25% 97,030 -32% Personnel Operations & 163,394 139,513 -15% 138,067 -16% Maintenance Procurement 203,378 64,841 -68% 71,377 -65% Research & 65,790 51,448 -22% 50,505 -23% Development Other (milcon, 27,421 18,155 -34% 11,591 -58% housing, etc.) Total 602,313 380,443 -37% 368,570 -39%

• Procurement fell much faster and farther than other functions. • Military personnel decline reflected 30% cut in active-duty headcount 1985- 1995, and 36% cut 1985-2000.

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DoD Military & Civilian Endstrength, 1975-2013

Personnel: A Budgetary Time-Bomb

• The cost of military pay and benefits is increasing much faster than inflation.

• The after-inflation annual cost of each warfighter rose 45% in 12 Average Annual Cost of years. One Warfighter • Rising operations & maintenance costs are driven $160,000 largely by people outlays. $55,000 • If defense spending levels off while people costs keep 1998 2011 increasing, more weapons & technology will be squeezed out of the budget

A Large Bureaucracy

• OSD, Joint Staff, Combatant Commands, Defense Agencies. -- 240,000 people, $113 billion

• Joint Staff increase from 2,000 to 3,000 in Obama first term as fighting forces were reduced.

• AT&L: OSD’s Acquisition, Technology and Logistics directorate -- 46,000 people

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The Biggest Threats Are Far From Home… and expensive

Russia: Europe: oil-dependent aging population, economy, resurgent waning influence empire

Mexico: Middle East: China: narco-terrorism, 2/3 of world’s world’s most dynamic Africa: illegal migrants oil, center of economy fuels military failed states, fundamentalist expansion resource terrorism wars Latin America: Asian Littoral: rise of leftist WMD technology dictators spreading to Iran, Pakistan, India & N. Korea

Trends: National Security Threats 2014

Aggressive reassertion on Russia European stage Limited post-9/11 attacks on Terrorism CONUS Large military buildup, but China stable region Three national efforts stopped, WMD but concern about Iran, Proliferation Pakistan, North Korea

Russian Revanchism

Belarus is a de facto vassal Russian state.

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Russian Revanchism

6 Biography

Department of the Army

James J. Watkins Deputy for Financial Operations Office of the Assistant Secretary of the Army for Financial Management and Comptroller Washington, D.C.

Mr. Watkins is the Deputy Assistant Secretary of the Army for Financial Operations. He is the senior Army Financial Operations official responsible for all ongoing Army initiatives for policies, programs, systems, and procedures designed to implement and maintain the Army's accounting, finance, financial systems, management evaluation, internal review, internal management control programs and the Army's program to combat fraud, waste and abuse. He manages and directs the Army's worldwide financial operations programs, the accounting and finance, and the financial systems functions. These programs encompass approximately 15,000 military and civilian U.S. employees, worldwide with operating budgets of between 8 and 10 billion dollars, to include approximately 1,600 auditors and inspectors throughout the Army. He provides advice for financial management activities and administers a departmental-level quality assurance program; develops financial management program milestones; serves as the focal point for Army financial managers who report on cases of fraud, waste and abuse; is designated the Army’s focal point or representative to take follow-up action on all GAO and DoD Inspector General audit reports containing unfavorable or unsatisfactory findings with respect to financial management operations. Prior to his current assignment Mr. Watkins was the Director of Accountability and Audit Readiness. He was responsible for Army policies, programs, systems, and procedures designed to implement and maintain the Army’s financial accountability and audit readiness programs.

CAREER CHRONOLOGY:  Deputy for Financial Operations, HQDA  Director of Army Audit Readiness, HQDA  Project Manager, Resource Management Tool, HQDA  Chief of Staff, Family and Morale, Welfare and Recreation Command, Arlington, VA  Director of Executive Services, Defense Finance and Accounting Service, Arlington, VA  Chief Financial Officer, Dominican Sisters of Peace, Columbus, Ohio  Chief Operating Officer, Miller Orthopedic Clinic, Charlotte, NC  Commandant, US Army Finance School, Ft. Jackson, SC  Resource Manager, V Corps, Germany  Commander, 5th Finance Group, Germany  Branch Chief, Finance Branch, Army Personnel Command (now Human Resources Command)  Battalion Commander, 9th Finance Battalion, Ft. Lewis, WA  Executive Officer, Army Finance and Accounting Center (now Defense Finance and Accounting Service)

COLLEGE:  MBA, Syracuse University  BS, Business Administration (Major in Accounting), The Ohio State University  Industrial College of the Armed Forces  US Army Command and General Staff College

SIGNIFICANT TRAINING:  South Carolina Executive Institute  Federal Executive Institute  Infantry Officer Basic and Advanced Courses

CERTIFICATIONS:  Certified Public Accountant, State of Ohio since 1981  Certified Defense Financial Manager (CDFM)

AWARDS AND HONORS:  Legion of Merit with 2 Oak Leaf Clusters  Meritorious Service Medal with 5 Oak Leaf Clusters  Army Commendation Medal  National Defense Service Medal with Bronze Service Star  Army Service Ribbon  Overseas Service Ribbon with Numeral 2  Expert Infantryman Badge  Parachutist Badge  The Ohio State University ROTC Hall of Fame  Distinguished Member, Finance Corps Regimental Association

PROFESSIONAL MEMBERSHIPS:  Ohio Society of Certified Public Accountants  American Society of Military Comptrollers  Association of Government Accountants

4/21/2014

41st Annual DCUC Overseas Sub‐Council Meeting

30 April 2014 Office of the Deputy Assistant Secretary of the Army (Financial Operations) (DASA‐FO)

FY 14 Projected Tax Revenue, USG

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 1

Projected FY 14 Spending, USG

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 2

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Projected FY 14 Discretionary Spending, USG

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 3

Proposed FY 14 Mandatory Spending, USG

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 4

Projected FY 14 Total Spending, USG

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 5

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BCA Impact on DoD Budget

PB12 $700B (extended to $668B FY21) $656B $644B PB13 $650B $633B $622B (extended to $611B $616B FY21) $598B $600B $586B Estimate for $571B $567B Sequestration $554B $556B $546B $550B $534B $563B $531B $525B $536B $549B $497B $496B $524B $500B $511B Sequestration Impacts to Army $499B $488B $488B • End strength • Strategy Support $475B $450B • Readiness • Base Operations FY13 only: “American Taxpayer Relief Act of • Modernization • Soldier/Family Prgms 2012” reduces to ~$42B • Force Structure • Institutional Training $400B FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 . Black Line = Original Programmed Budget; FY 12‐16 . Yellow Line = Programmed Budget after Budget Control Act Reduction (‐$487B); FY 13‐17 . Red Line = Sequestration –the reduction from Yellow line required to comply with deficit reduction requirement… another $1.2T, or $52B /year for DoD . Green Line = Adjustments after Bipartisan Budget Act of 2013

In FY14 the BBA adds back ~$22B (Army ~$5.4B) and in FY15 add backs ~$8B (Army ~$2.3B) to DoD’s topline

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 6

Army Budget Trends FY 1999 – FY 2019 ($B)

OCO placeholder estimate; actual submission to be determined based on future decisions and Our Guiding Principle Must Be events Keeping Balance Among Readiness, End Strength, and Modernization

FY 15‐19 POM Request Enacted Execution

Numbers may not add due to rounding Given realities of constrained budgets, the Army must adapt, innovate, and make difficult decisions impacting the Total Force st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 7

Army Budget Trends

The Army’s base budget trend has declined since 2010, both driving, and deriving from, a reduction in end strength and force structure, while prioritizing near term training over long term investment. The overall total budget reduction ‐‐ base and OCO ‐‐ from a peak in 2008 reflects declines in OCO commensurate to reduced war operations. The bars through 2013 reflect actual execution; the FY 14 bar reflects the base budget enacted at $122B, with $3.1B shifted from base to OCO. The FY2015 Budget Request is $120.5B. The FY15 OCO budget is not submitted at this time but is clearly needed to support operations in Afghanistan and Reset of equipment returning from the Theater.

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 8

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FY 2012–FY 2015 Budget Summary

Adapting to fiscal and strategic environment requires balance among readiness, end strength, and modernization $137.1 $132.0 $129.7 $127.2 $127.4 $125.1* $120.5 FY13:  Budget reductions cut $7.6B from enacted levels . Overcame OCO shortfall late in year through * reprogramming actions ` . Cancelled CTC rotations and prioritized training resources . Civilian furlough and hiring freeze . Deferred maintenance and facility sustainment . Every investment program impacted FY14:  Budget reductions cuts $7.7B from the PB FY 2012 FY 2013 FY 2014 PB 2015 request * FY 2014 OMA Enacted includes . Beginning to build back lost readiness – CTC $3.1B realigned from Base to OCO Rotations . Risk incurred in modernization and construction

Research, Development, & Acquisition Military Construction, Family Housing, & BRAC Operation & Maintenance Other (CAMD, AWCF, JIEDDO, & ANC) Military Personnel

Our Guiding Principle Must Be Keeping Balance Among Readiness, End Strength, and Modernization

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 9

FY 2012 – 2015 Budget Summary

. This chart reflects the budgetary pressures in the base budget over the last three years. The Army received $135B in FY 12, the same amount requested in the FY13 Budget Request. FY 13 was a very difficult budget year with the implementation of Sequestration –a stark reduction that reduced the base budget by more than $7B. The Army also overcame a shortfall in Overseas Contingency Operations –OCO‐‐ funding that forced actions to curb spending in order to fund operations in Afghanistan until a solution was achieved later in the year. The Army cancelled CTC rotations, furloughed civilian employees and implemented a hiring freeze, and deferred maintenance and sustainment for equipment and facilities. The prescriptive nature of sequestration impacted every procurement and RDTE program. The end result is that we entered FY14 with only two BCTs fully ready above those deployed, next to deploy, focused on Korea or in the Global Response Force.

. FY14 appropriations total $122B in base, with $3.1B shifted from base to OCO, reflecting the Bipartisan Budget Act caps and a continued decline in Army funding. The predictability in funding affords planning lead times to rebuild readiness lost in FY13; however the Army is still adapting to budget declines occurring faster than we can draw down the force; and therefore, funding focuses readiness on select units –not all units.

. The FY15 Budget Request is the first one built under known budgetary caps. The budget reflects difficult decisions to accelerate draw down in end strength, prioritize near term readiness and take risk in modernization and facilities. While the Army’s guiding principle is keeping balance among readiness, end strength and modernization; the Army is not in balance in FY15.

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 10

FY 15 Base Request

Does not include OCO FY13 FY14 FY15  $120.5 B  Base Request ($B) Actuals Enacted Request Military Personnel 56.1 56.2 56.1 Operation and Maintenance/ERA * 43.1 43.8 42.0 Procurement/RDTE 23.1 21.4 20.1 Military Const/Family Housing/BRAC 3.4 2.1 1.3 Other (CAMD/AWCF/JIEDDO/ANC)** 1.6 1.6 1.0 Total 127.3 125.1 120.5

*FY14 enacted includes $3.1B Congressional realignment from Base to OCO funding ** FY15 Other: Chemical Agents and Munitions Destruction ($868M), Army Working Capital Fund ($14M), Joint Improvised Explosive Device Defeat Organization ($115M), and Arlington National Cemetery ($46M)

. Request supports end strengths of 490,000 for the Active Component and 552,200 for the Reserve Component . Civilians provide critical support to the operational needs of the Army . Plans for Decisive Action CTC Rotations and continued expansion of Regionally Aligned Forces . Brigade Combat Team Restructure completes in FY 15, bringing total number BCTs to 60 . Aviation Restructure Initiative to divest 898 helicopters from the fleet . Research, Development, and Acquisition continues to decline as the budget balances end strength and training to build readiness

“The Army's largest asset and greatest expense is, and has always been, its people.” -HON John M McHugh, Secretary of the Army, 13 February 2014

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 11

4 4/21/2014

FY 2015 Budget Base Request

. The FY 2015 Budget Request of $120.5 is comprised mostly of funds needed to support people and training that builds near term readiness. The chart shows that Military Personnel costs for all components comprise 46% of the budget, Civilian personnel comprise 20% of the Army base budget with current strength across all appropriations reflecting a 12% decline since 2010. In FY13, the Army reduced 16,000 civilians and is continuing to analyze future adjustments in light of drawdown beyond FY15. The Army is implementing Headquarters reductions, with initial reductions beginning in FY15. . Besides the drawdown in personnel, the Army is taking action to reorganize, realign and restructure forces. The Brigade Combat Team reorganization enhances brigade combat power by adding a third maneuver battalion to 47 BCTs (29 AC/ 18 NG) and reducing the total number of BCTs to 60 (32 AC, 28 RC) in the total force. . The Aviation Restructure Initiative will generate savings by divesting older aircraft that is more expensive to maintain, reducing Active Component Aviation brigades, and restructuring aviation formations to achieve a leaner, more capable forces that balances operational capability and flexibility across the Total Army. . The Research, Development and Acquisition accounts continue to decline in FY2015 to match force structure reductions. Most notably, the Ground Combat Vehicle program is concluded while the Army invests in RDTE for developing a new Infantry Fighting Vehicle, which remains a key requirement. . This budget requests $14M for the Working Capital Fund in support of combat weapons systems in the Army prepositioned stocks.

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 12

I IMCOMIMCOM-Europe‐Europe Transformation Transformation Strategy Strategy

Goal : Reduce the Cost of Stationing U.S. Forces in Europe while Improving QOL

4 Garrison Conversions Energy Partnership w/HN KMC Joint SP / MP Patrol Sponsorship Consolidate Functions  Flatten C2 Structure to 7 Brigade Level Garrisons Invest in the Future  Garrison Functions Consolidated @ Region  Soldier and Family Sponsorship . Religious ED / CTOF  Health promotion . Internal Review  Transition Services  Customer Service . Library Mgnt / Automation Spt  Workforce Leadership Development . Utility / Power Procurement  Energy Management / HN Partnerships . Overseas U.S. Postal Mgnt  Environmental Stewardship . AFH/UPH Furniture/ Appl Mgnt  Reduce redundancy within communities(GR,KL)

Divest Divest of Non‐Mission Critical Assets HQDA Environmental Award ‐ Graf AFH / UPH Furniture / Appl Mgnt  Reduce Region HQs overhead  Close under‐utilized Dining Facilities  Reduced Non‐Tactical Vehicles  Facility Demolition program (Self Funded)  Discontinuing NAF Warehousing / Partnered w/ AAFES delivery Closed Under‐utilized DFACs

st 41 ReduceAnnual NTV DCUC Fleet Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 13

FacilityFacility Transformation Strategy Strategy Consolidate, Divest, Invest Leased Sites USAREUR American USAG WIESBADEN Command & Control Arms Hotel (C2) Elements USAG Schweinfurt 27 mi USAG Bamberg CLOSE DARMSTADT

37 mi 59 mi Force Structure Changes Small, One‐Purpose Sites CLOSE CLOSE MANNHEIM HEIDELBERG C High Cost / Low Value Sites Divest Legacy Missions Sites O . 173rd ABCT (‐) Giessen @ Del Din N Dexheim Depot S USAG Vicenza O L . 2nd SCR Redundant Communications Site USAG Bavaria . Tactical Signal I . Tactical Eng USAG BENELUX USAG Bavaria . Tactical MPs D . Lease Reduction . Mission Facilities . Shape ES,MS,HS Schools . Training Range . Brussels M / HS Scool . Family Housing / Barracks A . NAF Lodging (2008) / OD Rec Ctr . Leased AFH USAG Wiesbaden . Graf Middle School addition . DA / DOD Agencies T . Mission Facilities/ACP . Garmisch E/MS School USAG . Theater CSS . Family Housing Baumholder . Medical E . Community Support . Ammunition . NAF Lodging (2007) USAG Ansbach Sembach . PX , Commissary Invest $ . Training Range Ramstein ROB Gruenstadt . ES, MS, HS Schools ( FY10-15) . Family Housing/ Barracks Kaiserslautern AFB KMC . Hainerberg E/MS . Community Support KleberArmy Depot . NAF Lodging (2008) / Auto Skills Miesau USAG Rheinland‐Pfalz . PX, Commissary Army Depot Landstuhl . Mission Facilities . MS,HS School Hospital . Barracks / Family Housing (BH) USAG Vicenza . Community Support USAG Stuttgart . Mission Facilities . Army Depot Renovations . AFH additions / GOFQ . Barracks Germersheim . Theater Hospital . NAF Lodging (2008) . Community Support USAG Rheinland‐Pfalz . Theater SATCOM . Boeblingen ES, HS Schools . Leased AFH Army Depot . Theater Confinement Facility . Patch ES , Robinson E/MS . High School st . ACP 41 Annual DCUC Overseas Sub‐Council Meeting . ES, MS, HS Schools (AF & BH) DASA(FO) Mr. James J. Watkins 14

5 4/21/2014

Europe Infrastructure Reduction Overview

Direct Report (0-6) Garrisons Garrisons converting to sub-sites Announced Closures of the parent garrison

IMCOM-Europe Region 118

USAG 12USAG 9 USAG 18 USAG 21 USAG 17 USAG 6 USAG 16 Vicenza Benelux Wiesbaden Rheinland-Pfalz Stuttgart Ansbach Bavaria Livorno Brussels Garmisch FY14USAG 9 InactUSAG 4 Community Community Baumholder FY14 Community Inactivated FY13 Bamberg Schinnen FY14USAG 2 9 4 Community InactUSAG Hohenfels FY14 Schweinfurt Soldiers IMCOM-E Reductions Supported 22 Garrisons $37.4B 143M 162K 10,517 Pn $2.37 B Annual 2006* (235 Sites) PRV Bldg Sq Ft Acres Workforce Operating Budget 54K

$1.1B 11 (123) $26.2 98.4M 133K 5,830 FY14 40K $1.3B $165M

75% 39% 52% 28% 59% 54% 45% 7 Garrisons 2018 $23B 9,318 Bldgs @ 68M 116K 4,324 Pn $1.1B ~58 Sites Target PRV Bldg Sq Ft Acres Workforce Budget 30K

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 15

IMCOM‐IMCOM-EuropeEurope Region Garrisons Region Garrisons 127,936 Total @ 11 Garrisons (118 sites)  Army Mil 27,116  Other Mil 5,203  DAC(APF) 7,322 USAG Benelux-1,393 Mil / 6,966 total  LN (APF) 8,822 Plus 24,496 (Mil Capacity ~1000 @ 4 Sites) Europe-based  Contractor 3,814 Retirees and Brussels Community (MIL Capacity ~400 @ 2 Sites)  Other Civ 15,405 Dependents

Schinnen Community (Mil Capacity ~800 @ 3 Sites)  Mil Dep 49,125  DAC Dep 11,129 Data Source TOTAL 127,936 ASIP COP 31 Jan 14

NETHERLANDS USAG Ansbach-2,904 Mil / 9,032 total NATO MIL Capacity ~3100 @ 6 Sites) USAG Benelux Schinnen (Chierves) USAG Bamberg - 150 Mil / 1,164 total BELGIUM Brussels (MIL Capacity ~3100 @ 4 Sites) FY14 LUX USAG Schweinfurt – 110 Mil / 1,114 total (Mil Capacity ~4000 @ 4 Sites) FY14

USAG Wiesbaden-3,173 Mil / 16,092 total (MIL Capacity ~3400 @ 18 Sites) USAG Bavaria - 8,355 Mil / 28,316 total Mission (Mil Capacity ~8500 @ 4 Sites ) Command Garmisch Community (Mil Capacity ~400 @ 12 Sites) Baumholder USAG Rheinland-Pfalz-4,876 Mil/ 23,071 total Kaiserslautern Grafenwoehr (MIL Capacity ~5500 @ 22 Sites) USAG Hohenfels-1,253 Mil / 4,584 total JMTC (Mil Capacity ~1500 @ 2 Sites) USAG Baumholder-1,618 Mil / 5,317 total Hohenfels (Mil Capacity ~4410 @ 9 Sites HQs Ansbach Air / Ground EUCOM / AFRICOM Maneuver Vicenza

USAG Stuttgart-4,455 Mil / 18,164 total Garmisch USAG Vicenza – 4,032 Mil / 14,116 total (Mil Capacity ~3800 @ 17 sites) (MIL Capacity ~4000 @ 5 Sites *) Livorno Livorno Community (Mil Capacity ~400 @ 6 Sites) USAREUR is 5% of the OSD Announced for In-activation / Closure As of Date ARMY’s Total MILPOP 11 Mar 14 st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 16

Stationing the Force in Europe – 2018

• Supports ~29K Soldiers plus ~3.4K Joint personnel • Avoids new MILCON; synchronized with patch chart NETHERLANDS • Baumholder required for ~2300 Soldiers now; adjust/reduce as necessary Brussels Schinnen • Keeps 173d RSTA and FA Bns north and fills Del Din w/ remaining units BELGIUM BENELUX • Fully utilizes recent MILCON at Grafenwoehr & Vicenza LUX • Return all sites in Mannheim/Heidelberg, Bamberg & Schweinfurt NLT 2015; reduce to 7 Direct Report Garrisons • Over 90% occupied; will continue to consolidate and gain efficiencies Mission Command Unfolding Strategic Environment: JMTC • Special Operations Forces Global basing Wiesbaden Grafenwoehr • Service/HQ reductions Baumholder Kaiserslautern Hohenfels • Quadrennial Defense Review Ansbach/ Illesheim • OSD European Infrastructure Consolidation Sustainment Medical Air/ Ground Stuttgart Maneuver

Vicenza

Livorno Army Main Operating Bases Joint/NATO Main Operating Bases Smaller Site Italy

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 17

6 4/21/2014

From Cold War to Expeditionary

Cold War 1989: 213K Soldiers 41 ASG/BSBs (~850 Sites) 2004 – 2 BCT (239 Sites) Decision

2006 54K Soldiers 22 Garrisons (235 Sites)

2008 – Hold on BCTs

2010 – QDR

2011 – 3 BCT Decision

2012 – 2 BCT Decision Expeditionary 2018: Today ~29K Soldiers ~29K Soldiers 11 Garrisons (119 Sites) 7 Garrisons (~*60 Sites) *Pending EIC

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 118

Fiscal Year 2014 DASA‐FO Goals . Assert General Fund SBA audit ready in September 2014 – Partner with DFAS to ensure all end‐to‐end processes have adequate controls and supporting documentation – Implement fund balance with treasury reconciliation tool – Correct Exam 3 Notice of Findings and Recommendations . Continue implementation of GFEBS – Harvest the power and capabilities of the Enterprise Resource Planning system, GFEBS – Expand the current use of GFEBS (Treasury disbursing, contract entitlement, reporting) – Complete the migration of military pay to GFEBS – Facilitate the deployment of other ERPs . Prepare AWCF for audit assertion (all four financial statements) – Continue work to ensure Logistics Modernization Program is a compliant financial system – Continue to implement corrective actions to ensure auditable processes . Close legacy systems – Continue the closure of STANFINS instances using the existing plan – Develop and implement a plan to close out SOMARDS . Update Policies and Procedures to support ERPs . Implement Financial Management Optimization Pilot study . Develop a professional, credentialed staff . Effectively and efficiently respond to requirements

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 19

USG Budget, in Dollars FY 12‐23

st 41 Annual DCUC Overseas Sub‐Council Meeting DASA(FO) Mr. James J. Watkins 20

7 Mary Martha Fortney President/CEO NASCUS

As president and CEO of the National Association of State Credit Union Supervisors (NASCUS), Mary Martha Fortney is a nationally recognized leader in the credit union industry and a highly respected advocate for the state credit union system. As a 21-year veteran of NASCUS, she has been a pivotal figure in the association's growth and development. Fortney joined NASCUS in 1993. She was selected NASCUS President and CEO in January 2004 after having served as acting President/CEO since August 2003. She has held various management roles in NASCUS, leading the accreditation, communications and government affairs departments during her tenure. Before joining NASCUS, she worked for nearly four years as the Director of Agency Liaison, Office of Presidential Correspondence for the Carter White House. Fortney also spent 12 years on Capitol Hill, where she was the legislative director for a member of the U.S. House of Representatives and the majority staff director for the Subcommittee on General Oversight and Investigations of the House Committee on Banking, Finance and Urban Affairs.

Fortney is actively involved with Women in Housing & Finance (WHF), an association of men and women who promote women in the fields of financial services and housing through professional enrichment and leadership enhancement. Fortney is currently WHF's Foundation President and has served in various other leadership roles.

April 2014

4/19/2014

Vision of a Changing Industry Mary Martha Fortney April 2014 41st Defense Credit Union Council Overseas Meeting

NASCUS: The Voice for the State Credit Union System •Founded in 1965 •Advances Strong, Vibrant State Credit Union System •Advocates to Protect Independent Authorities of States •Provides for Candid Dialogue

© 2009 NASCUS. All rights reserved.

July 6, 1993

© 2012 NASCUS. All rights reserved.

1 4/19/2014

1993

$89 million NCUA Annual Budget

$21.6 $270 million billion 12,435 Average Total credit assets FICUs union

45 Corporate credit unions

© 2012 NASCUS. All rights reserved.

Today  15 corporate credit unions  6,554 federally insured credit unions (12/31/14)  96.3 million members  $1 trillion in assets  Average credit union size = $162 million The pace of the credit union system consolidation continues unabated…

© 2012 NASCUS. All rights reserved.

Today In 2013 the credit union system lost:  240 credit unions to mergers  1 credit union to bank conversion  16 credit unions to regulatory actions

© 2012 NASCUS. All rights reserved.

2 4/19/2014

At a Crossroad  Regulatory Burden  Consolidating Industry  Changing Mission  Consequential Questions What future do we want for the credit union movement?

© 2012 NASCUS. All rights reserved.

Thoughts on the Future

“If everyone is thinking alike, then somebody isn't thinking.”

© 2012 NASCUS. All rights reserved.

Changes to the NCUSIF?

Administration ???

FDIC ??? Risk‐based pricing???

© 2012 NASCUS. All rights reserved.

3 4/19/2014

Expanding the NCUA Board

Deliberation

5‐ Communi‐ Member cation NCUA Responsiveness Board

Experience

© 2012 NASCUS. All rights reserved.

Greater Transparency at NCUA  In the NCUA Rulemaking Process  In NCUA Budget Decisions  In Material Loss Reviews  In the Appeals Process

© 2012 NASCUS. All rights reserved.

Final Predictions  Medicinal or recreational cannabis will be legal in virtually every state within 10 years  A Bitcoin‐like cryptocurrency will become common‐ place within 10 years  Credit unions will retain their tax‐exempt status  Compensated directors, although increasing, will remain rare  In 2020, there will be 4,800 federally insured credit unions

© 2012 NASCUS. All rights reserved.

4 4/19/2014

Thank You! Mary Martha Fortney NASCUS President and CEO 1655 N. Fort Myer Drive, Suite 650 Arlington, Virginia 22209 703.528.9688 (direct) www.nascus.org ‐‐ Twitter @TheNASCUS [email protected]

© 2012 NASCUS. All rights reserved.

5

Sarah Canepa Bang CO-OP Shared Branching/FSCC, LLC 9692 Haven Avenue Rancho Cucamonga, CA 91730 888.372.2669 ext 1205 [email protected]

Sarah Canepa Bang is President of FSCC, LLC. a division of CO-OP Financial Services, and Chief Strategy Officer of CO-OP Shared Branching. From 1999 through 2011 she was the President and Chief Executive Officer of Financial Service Centers Cooperative, Inc. (FSCC) the international shared branch network.

During her tenure, FSCC more than quadrupled the number of credit unions, branches, and states involved in shared branching. Today, over 49 percent of credit union members (46 million) have access to shared branching in all 50 states in the U.S. In addition, FSCC expanded traditional shared branching to five countries and expanded the technology to include full-service kiosks, mobile, call centers, disaster recovery, foreign currency exchange, and remote deposit capture. In June 2007, FSCC successfully implemented credit union shared branching on Vcom(r) kiosks in more than 2,200 7- Eleven® stores in the U.S.

In 2011, FSCC and CO-OP FS successfully completed discussions for a merger of the two companies, bringing the U.S. Credit Union Shared Branching movement under one roof. The combined shared branching networks provide over 7,200 locations to members today.

In 2007, Sarah joined a delegation of credit union leaders from the U.S. and Canada to support the World Council of Credit Unions (WOCCU) initiative in China. Sarah’s role was to describe U.S. shared branching; in less than one year, shared branching became part of the Chinese cooperative landscape.

Sarah is a frequent speaker at national credit union events on emerging technologies. She is the in studio expert on financial services technology for the Bravo channel’s 21st Century Business show. She has been a faculty member of the Western Intermediate Banking School and the Oregon Bankers’ Directors’ College. From 1990 to 1995, Sarah was a faculty member at Portland State University. Since 1999, Sarah has served on the Board of the Richard Myles Johnson Foundation supporting financial literacy in California. She is a director of the Applied Research Institute funding practical research projects for credit unions.

In 2007, Sarah was appointed to the KioskCom Self Service Expo Advisory Board, a group of technology experts overseeing the Self Service Expo and the Digital Signage Show. The Self Service Expo and Digital Signage Show is an event focused on Sarah Canepa Bang Page 2 of 2

showcasing the benefits of using self-service technology and interactive digital media, including kiosks, digital signage, self-checkout and other self-service technologies.

Sarah is a passionate supporter of the Credit Unions for Kids program. In June 2006, she was named to the board of the Credit Union Miracle Day foundation in Washington, DC which raises funds for the Children’s Miracle Network. In December 2006, she was appointed to the Credit Unions for Kids Advisory Board for the Children’s Miracle Network in Salt Lake City.

Prior to joining FSCC in 1999, Sarah was the Executive Vice President of the Oregon Credit Union League and Affiliates, where she oversaw the operations of the League trade association, its for-profit services corporation and insurance company. At the same time she was the Chief Operating Officer of CU ACCESS, an ATM and shared branch network, and Automated Item Management, the northwest’s largest and most successful check processing operation. Sarah also served as Chairman of the Association of Credit Union League Executives’ Fee Supported Services Committee.

Sarah began her career in 1983 at the Credit Union National Association in Madison, Wisconsin. During the mid-eighties, she served as Education Director for the Oregon Credit Union League. In the late-eighties, she joined Massachusetts CUNA and the New Hampshire Credit Union League as Vice President of Human Resources. She returned to the Oregon Credit Union League in 1990.

Sarah has received a number of awards including the National Society of Fundraising Executives Philanthropy award for CUs for Kids, the Credit Union Women’s Association’s Anna Read award, the American Society of Association Executive’s Golden Circle award, the Credit Union National Association’s Blockbuster award for community relations, and awards from the Public Relations Society of America for public relations and crisis communication.

In her spare time, Sarah is a filmmaker and professional artist with paintings in several galleries in the Northwest and private homes in the U.S. and as far away as Florence, Italy. Her work has been featured on the cover of Country Pleasures magazine.

Sarah holds multiple degrees from the University of Wisconsin, Madison. ### CO-OP Shared Branching 4/19/2014

CO-OP SHARED BRANCHING: Convenience, Continuity, Cooperation

Sarah Canepa Bang President, CSB/FSCC Chief Strategy Officer, CSB

[email protected] 888/372-2669 x 1205

April 2014 – DCUC Overseas Conference

Why Shared Branching?

• The role of Convenience and personal service in today’s retail financial services environment – bringing convenience to members

• Continuity of service through various challenges – natural disasters

• The credit union difference – you would not see banks doing this - Cooperation

CO-OP Shared Branching

The Opportunity- CO-OP Shared Branching in Today’s Economy

• Helps credit unions expand when other institutions are being forced to cut back • Cost of building one branch can soar over $2 million

• Capital allocated for branch construction can be put to other use – improving checking account penetration, attracting new members, adding tech services

• For credit unions closing branches, shared branching helps them avoid losing the member base while still reducing expenses

• Credit unions opening branches and adding NextGen ATMs will generate additional revenue

CO-OP Shared Branching

1 CO-OP Shared Branching 4/19/2014

What Kinds of Transactions are Possible?

• Access to all Accounts – not just checking or savings – Deposits – check and cash

– Withdrawals – check and cash

– Loan advances – check and cash

– Transfers – A2A, P2P

– Loan payments – check and cash

– And over 30 transaction sets are available

CO-OP Shared Branching

CO-OP Shared Branching at a Glance December 31, 2013 • Locations in all 50 states, 5 Countries & 2 U.S. Territories • 24 local networks • 7,204 total CSB locations – 5,178 Outlets and Standalones – 81 NextGen ATMs/Fast Branch locations – 1,945 Vcom Units at selected 7-Eleven stores

• 1,787 Credit Unions – 47.9 million members represented – Represents $545.3 billion in credit union assets

100.2 million Transactions Acquired through CSB (Shared branching transactions only)

• Acquiring over $42.2 billion in approved transactions for credit union members at Outlet and Standalone branch locations – Average deposit = $1,369; Withdrawal = $746; loan payment = $504; transfer = $1,393; Credit Advance = $1,071

• Acquiring over $279.2 million approved in transactions for credit union members through Self- Service kiosks - Vcom, NextGen ATM and Fast Branch – Average Deposit = $644; Withdrawal = $269; loan payment = $416; transfer = $466; Credit Advance = $233

CO-OP Shared Branching

Benefits of CO-OP Shared Branching

• CO-OP Shared Branching ranks FIRST ahead of the banks in the number of states that have locations • Provides credit unions the fourth largest branch network in the country • Strongly positions credit unions to compete against banks • Provides unprecedented convenience for credit union members – “Once a Member, Always a Member”

CO-OP Shared Branching

2 CO-OP Shared Branching 4/19/2014

CO-OP SHARED BRANCHING How CSB ranks with the banks! December 31, 2013

CO-OP Shared Branching

CO-OP SHARED BRANCHING “How CSB Ranks with the Banks! December 31, 2013

7,000 6,370 5,903 6,000 5,810 5,178 5,000

4,000 3,135 3,061 Branches 3,000 2,026 Vcom and Self Service 2,000 ATMs 1,000

0 Wells Bank of Chase CSB US Bank PNC Fargo America Bank Bank

CO-OP Shared Branching

HIGHLIGHTS FROM THE RADDON FINANCIAL GROUP CO-OP SHARED BRANCH SURVEY - FALL 2013

CO-OP Shared Branching

3 CO-OP Shared Branching 4/19/2014

Overview

The following study was fielded in the Fall of 2013 by Raddon Financial Group. A total of 25 Credit Unions participated, yielding nearly 20,000 responses. These 25 Credit Unions all offered the Shared Branch service.

The results that follow are all related to a full member survey sent to credit union members. This report segments the responses of this survey by how often the member indicated they use the Shared Branch service each month. The number of respondents per segment can be found below.

Responses Per Segment CO‐OP Financial Services

Segment Base Segment Base Not At All In Past 12 Months 13,673 ‐‐ ‐‐ Fewer Than 1 Time a Month 3,181 ‐‐ ‐‐ One to Two Times per Month 1,666 ‐‐ ‐‐ More Than 2 Times per Month 1,496 ‐‐ ‐‐ ‐‐ ‐‐‐‐ ‐‐

CO-OP Shared Branching

Generational Segments

Compared to the typical Credit Union member, those that do not CO‐OP Financial Services use shared branching at all, are Generational Segments much more likely to be a Ratio Traditional‐ Baby Gen Gen Segment Percentile ists Boomers X Y Traditionalist (19%, 87 pctl.*) Ratio 19% 42% 21% 18% Not At All In Past 12 Months Percentile 87 70 32 22 Ratio 11% 41% 26% 22% Fewer Than 1 Time a Month Although Gen Y may seem to “fall Percentile 26 62 76 50 Ratio 11% 37% 27% 25% off” after 2+ transactions, this is One to Two Times per Month Percentile 22 37 81 64 due to this young group being Ratio 7% 39% 32% 22% More Than 2 Times per Month compared to members that have Percentile 9489650 Ratio 16% 41% 23% 19% COOP‐‐Total been with their CU since before Percentile 69 67 55 31 the Gen Y were born. The best evidence of this is the obvious adoption of CO-OP Services by the Gen X segment, 32% of 2+ 30.0% 25% Users are Gen X, 96pctl. 25.0% 22% 22%

20.0% 18% Y Key Takeaways:

•19% of respondents were Gen Y, Gen 15.0%

yet 25% of those using Shared 10.0% Branching at least once per month are Gen Y. 5.0%

•23% of respondents were Gen X, 0.0% yet 26% use Shared Branching less than once per month, 27% more than once per month, and 32% more than twice per month!

*Percentile Ranks the respondents to the base of 159 Credit Unions and their 100,000+ members.

CO-OP Shared Branching

Primary Financial Institution Designation

Respondents were asked to indicate if their credit union is their primary financial institution.

PFI Status is a strong indicator of loyalty, and almost always leads to a greater share of wallet.

Key Takeaways: •Locational convenience leads to a higher PFI percentage • Members using Shared Branch tend to live further away from their credit union’s nearest branch •Despite the above, those “less convenient households” that use the Shared Branch the most, represent the higher % of PFI Households at 71%. •Those that don’t use a Shared Branch only have 57% PFI.

CO-OP Shared Branching

4 CO-OP Shared Branching 4/19/2014

Membership Engagement

Key Takeaways: CO‐OP Financial Services Engagement Segments •The most engaged credit union Ratio member, is the member that used Segment Percentile Devoted Fans Patrons Indifferent Ratio 18% 33% 33% 16% the shared branch the most. Not At All In Past 12 Months Percentile 53 45 46 43 •25% of the members using a Ratio 18% 37% 32% 14% Fewer Than 1 Time a Month shared branch more than twice Percentile 53 77 61 66 Ratio 21% 37% 28% 14% One to Two Times per Month per month are “Devoted.” This Percentile 77 74 83 65 Ratio 25% 32% 26% 17% percentage falls to 21% for 1-2 More Than 2 Times per Month times per month, and 18% for Percentile 92 31 93 38 fewer than 1 or not at all. •51% of members that do NOT use shared branching are either devoted or fans. This number 30.0% goes up to 55% for those that 25% have used Shared Branching. 25.0% 21% 20.0% 18% 18% Devoted

15.0%

Percent 10.0%

5.0%

0.0%

CO-OP Shared Branching

Deposit Loyalty

Key Takeaways: • The more a member uses Shared Branching, the more likely they will be to bring All of their future deposit business to their credit union.

CO-OP Shared Branching

Deposit Balance Control

Key Takeaways: • Deposit Balance Control increases significantly with increased Shared Branch Usage.

CO-OP Shared Branching

5 CO-OP Shared Branching 4/19/2014

Loan Product Usage

54.0% 53% Key Takeaways: 52.0% • Shared Branch Households are 51%

Usage 50.0% much more likely to be Auto Loan 48.0% 48% Product Borrowers, Consumer Loan 46.0% Loan Borrowers, end Equity Loan/Line 44% 44.0% Truck users. / 42.0% • Given the above, it is extremely Auto important for credit unions to 40.0% devise ways to get loan dollars 38.0% from these less accessible members.

/

CO‐OP Financial Services Loan Product Usage Ratio Auto/ Mortgage Home Equity Home Equity Overall Personal Other Segment Percentile Truck Loan Loan Loan Line Credit card Line of Credit Loan Ratio 44% 45% 14% 16% 75% 21% 17% Not At All In Past 12 Months Percentile 31 50 40 41 63 30 31 Ratio 48% 45% 15% 15% 76% 24% 21% Fewer Than 1 Time a Month Percentile 53 53 41 33 66 52 65 Ratio 51% 44% 16% 16% 73% 25% 23% One to Two Times per Month Percentile 71 41 59 45 53 60 79 Ratio 53% 43% 20% 18% 71% 30% 26% More Than 2 Times per Month Percentile 83 34 90 68 40 86 91 Ratio 46% 45% 15% 16% 75% 22% 19% COOP‐‐Total Percentile 43 47 48 41 61 43 46

CO-OP Shared Branching

Loan Balance Control

Members that use the Shared Branching the most, have the largest loan balances across all FI’s they do business with, $22,392. This makes this particular segment a more challenging target to acquire loan business because the competition is much greater. Generally, a small slice (balance control %) of this large pie ($22,392) results in more loan business than getting a large slice of a smaller pie from the other three segments.

Key Takeaways: •Members that do NOT use shared branching have lower overall loan balances ($6,364) than any of the other segments of shared branch users.

CO-OP Shared Branching

Summary

Overall this report has shown key correlations between shared branch usage and an improved member relationship.

The chart below is a simple rank for each segment compared to the others for the key metric. A lower average score indicates a favorable rating. The chart clearly shows, as transactions increase, member relationship will improve.

No Fewer than 1 1‐2 > 2 Transactions Transaction Transactions Transactions % Indicating PFI4321 % Devoted4421 % Will Bring All Dep.4321 Dep Bal Control %4221 % Will Bring All Loans.1422 Avg. CU Loan $/All HHs4123 Average Score 3.5 2.8 2.0 1.5

CO-OP Shared Branching

6 CO-OP Shared Branching 4/19/2014

CO-OP Shared Branching Whitepapers

• Maximizing the Shared Branching Investment: How Credit Unions are Generating a Positive Impact on the Bottom Line by Creating a Culture of Convenience. Download at: www.co-opfs.org/MaximizeSBInvestmentWhitePaper • Shared Branching Realities Revealed: Facts Every Credit Union Executive Should Consider – Misconceptions of SB. Download at: www.co-opfs.org/SharedBranchingRealities

CO-OP Shared Branching

Key CSB Initiatives 2014

• January 1, 2014 – Change in Patronage Dividends for CSB Credit Unions – moving from transactions to gross revenue calculation – consistency across all CO-OP FS

• July 1, 2014 – New CSB National Interchange Fee Pricing – Consistency in National interchange fees - $0.20 increase – Switch fees billed for issuer and acquirer transactions – Network access fees will be billed to credit unions – CSB Pricing Structure Changes • State Networks may have separate pricing based on the network requirements • Direct CSB credit unions will have separate pricing depending on contractual and business unit requirements

CO-OP Shared Branching

Key CSB Initiatives 2014

• August (Issuer to accept) and September (Acquirer to send and receive) 2014 – CO-OP Extended ISO 8583 specification mandates due for vendors to be certified – Key Changes • One specification for the core processors to code – eliminate the old FSCC and NGN specifications – gone • Member verification enhancements – Reverse look up – support book number, full DOB and last 4 digits of the SS number – Driver license field, Password field, memo tags, Call center password – Extend name field to 60 – Extend description to 30 – Loans » additional same day payoff amount » 10 day pay off amount CO-OP Shared Branching

7 CO-OP Shared Branching 4/19/2014

Key CSB Initiatives 2014

• August (Issuer to accept) and September (Acquirer to send and receive) 2014 – CO-OP Extended ISO 8583 specification mandates due for vendors to be certified – (continue) – Key Changes • Deposit/Check payment support – Extend number of checks deposited at the teller window – Add payroll deposit indicator • Enhance Statement Print/History – Transaction code and description data are usable – Search for check number – Support extended statement print • Account qualifier enhancements

CO-OP Shared Branching

CO-OP CONNECT (Operating on two Switches with one CO-OP Extended ISO Specification) CO-OP CONNECT

Third Third CO-OP Parties Parties CIMple NGN Solutions CUSA FiServ MPI MPI Switch Switch

FSCC CUSC/ CUS CUSW NGN SCC Switch Connection Switch CUs

Third Third SCC FSCC Parties CUs Parties CUs

CO-OP Shared Branching

Key CSB Initiatives 2014

• Moving Fast Branch credit unions to NextGen ATM before 2016 mandate • Continue to focus on adding branches – 5,350 branches • Add 80 net new credit unions to CSB • Deploy and sell 100 NextGen ATMs • Assist State Networks on selling CSB • Transaction growth – CSB transactions at branches – increase by 4% – CSB transactions at self-service (Vcom®, NextGen ATM) – increase by 4% • Utilizing one Mapping Software to be used by all of CO- OP CSB and EFT

CO-OP Shared Branching

8 CO-OP Shared Branching 4/19/2014

Who do I contact for questions regarding CSB when we have CUSC, FSCC and SCC?

• Customer support issues, sales leads and other questions, please use the email below:

• [email protected] – connection to CSB

• Our team will make sure the right CSB person is contacted. It will make your job and our job easier in serving our credit unions.

• We appreciate what you do for us, thank you!!!

CO-OP Shared Branching

QUESTIONS?

9 William E. Hawbecker, Jr.

Director, Department of Defense Banking and Credit Union Programs

Mr. William E. Hawbecker, Jr. is the Department of Defense (DoD) Director for Banking and Credit Union Programs, a position he has held since October 2010. In this role, Mr. Hawbecker is responsible for formulation of policy and procedures governing financial institutions on DoD installations worldwide. Additionally, he serves as the Program Manager for the DoD Overseas Military Banking Program.

Mr. Hawbecker is a 2011 graduate of the Defense Senior Leader Development Program (DSLDP). During this two-year program, he completed an assignment to the Office of the Secretary of Defense (Comptroller), senior-level professional military education, and executive training.

Prior to his selection to the DSLDP, Mr. Hawbecker served as both the Director for eThird Party Payments as well as the Director for eData Storage at the Defense Finance and Accounting Service (DFAS). In these roles he led DoD-wide and Agency-specific programs and initiatives to support DoD strategic initiatives and goals, to include program management activities for systems used to pay for commercial transportation of all DoD household goods and freight and direct oversight for DFAS imaging and workflow systems used to make payments to vendors.

Earlier in his career, Mr. Hawbecker served in several capacities throughout DFAS in Disbursing, Accounting, and Commercial Payment organizations. He earned the American Society of Military Comptroller’s 1998 National Intern of the Year award for his participation in implementing cost saving initiatives.

Mr. Hawbecker graduated with honors from Mount Vernon Nazarene University with a B.A. in Accounting. He also holds a Master’s Degree in Strategic Studies from the United States Army War College and is a Certified National Security Professional. MAJ Emma Parsons Army Banking Officer United States Army Financial Management Command USAFMCOM

MAJ Emma Parsons is from Palisades Park, New Jersey. She entered the Army as a Distinguished Military Graduate after receiving commission from The College of New Jersey (Trenton State College) ROTC program in 2003 as a Finance Officer. MAJ Parsons holds a liberal arts degree in history, a Masters in Education from University of Phoenix , Masters in Business Administration from University of Maryland and an AIB Military Banking and Financial Management and Operations Diploma with American Banking Association. Her military education includes Finance Officer’s Basics Course, Finance Captains Career Course, and Training With Industry. In January 2004, MAJ Parsons reported to the 176th Finance Battalion in Yongsan, Korea after completing the Finance Officer’s Basic Course. While assigned to 176th, she served as the Detachment Executive Officer, Officer in Charge of Internal Control and Disbursing Agent. In 2006, MAJ Parsons joined the Multinational Forces and Observers (MFO) team in Sinai, Egypt and served as the Finance Officer for 1st Support Battalion. In 2007, she became part of the 101st Financial Management Company in Ft Campbell, Kentucky. She was the Company Executive Officer and then deployed as the Deputy Disbursing Officer during Operations Iraqi Freedom 2008-2009. Afterwards, MAJ Parsons served as a Budget Officer for USAREUR G8 and a Detachment Commander in Heidelberg and Hohenfels, Germany. She currently works as the USAFMCOM Banking Officer in Washington D.C. Throughout her career thus far, she has managed over $85 million and her military awards and decorations includes the Bronze Star Medal , the Army Commendation Medal with two Oak Leaf Clusters, and the Multinational Forces and Observers Ribbon

MAJ Parsons is married to MAJ Brian Wesley Parsons of Fayetteville, North Carolina and has one daughter, Meghan Elizabeth.

February 2014 Army Banking Update Defense Credit Union Council Overseas Sub-Council Brief

MAJ Emma Parsons Department of the Army Banking Officer

1 May 2014

Agenda

• Army Banking Program • Partnerships • Initiatives Update • Theater Banking • Situational Awareness • Pacific Update • Credit Union Support • Way Ahead • Army Banking Officers Update • Questions

2

Banking Officer Responsibilities

• Advise ASA(FM&C) on Banking Issues - Specifically DASA(FO) • Work closely with Federal Agencies and Trade Associations • Training With Industry Banking Program • Domestic and OCONUS on-post financial institutions • Theater Banking Support • Overseas Military Banking Program • Train, facilitate and resolve banking issues

3

1 Regulations and Policies

• Department of Defense Financial Management Regulation (DoD FMR) 7000.14-R, Volume 5, Chapter 34 and 3, 12, 13, 14, 17, and 24 • Department of Defense Instruction (DoDI) 1000.11 • Liaison Officer Desk Guide • DoDI 1342.27 – Personal Financial Management for Service Members - Reissue DoDI 1342.22 – Military Family Readiness • DoDI 1344.07 – Personal Commercial Solicitation

4

Partnerships

5

Ongoing Initiatives

• Implementing metric for commanders’ financial institutions on post - Ensure commander’s have a current checklist based on DoDFMR 7000.14-R, Volume 5 - Better tools for the commanders to manage the on post financial Institutions • Financial education and training - Training With Industry Program - Quarterly Liaison Officer Training - Predeployment training - Cross train banking officers - Reserve and National Guard Banking training - ABA training 6

2 Ongoing Initiatives

• Installation Site Visits - USAFMCOM Commander and Command Sergeant Major’s site visits - Meets with Garrison Commanders and Liaison Officers • Overseas Military Banking Program - Contract renewal yearly - Changes in Europe - Changes in Pacific

7

Ongoing Initiatives

• Partnerships with other agencies - Military Lending Act - Predatory Lenders - Financial education programs are affective - Liaison with DFAS Policy, Treasury, E-Commerce, State Department Theatre Financial Management Support Centers (266th FMSC)

8

Theater Banking

• 266th Theater downrange • Facilitate vital banking services across the Theater in order to: - Support and protect coalition forces - Strengthen host nation banking systems - Fortify local economies - Resolve major issues before the possible draw down - Continue to maintain positive relationships with State Department, Treasury Agencies, and local vendors - Work on post closures

9

3 Situational Awareness

• Reduction of force - Less than 490K in active duty force by FY 2017 - Civilian forces are bound to go down with the force - Changes after a 12 year war; historically have been done before - All Army posts will be affected • Conflict resolution in different countries - Army is the executive agents for the Pacific - Different countries face different conflicts - Joint training exercises with other parts of the world

10

Reduction in Force

11

Conflict Resolution

12

4 Situational Awareness

• Pacific Expansion - Extensive training schedule - Deployments at moment’s notice - Army is currently the executive agent - Disaster relief has been their main priorities for the last year

13

Pacific Expansion

14

What can Credit Unions Do?

• Meet with the Garrison Leadership • Ensure Operating Agreement is updated and if there are changes to fees and products, let the Liaison Officers know • Build Relationship with CLO and Family Readiness Program Manager • Document all activities and requests from the command • Request to provide classes based on customer feedback • Provide financial education materials to ACS offices • Involvement in national campaigns such as Military Saves • DoD needs to utilize all departmental resources available

to educate and support our Service and Family Members 15

5 Way Ahead

• Army Banking Program - Expand the TWI Program so there is extensive Credit Union training - Expand partnerships with other agencies to share information and resources - Better advertise “good news stories” so the public is aware of the positive outcomes from the program - Maintain strong relationships with IMCOM G-9 corporate partners - Review all questions from the Liaison Officers and find permanent solutions (e.g., more policy memorandums which address an ongoing question)

16

Army Banking Officer

• MAJ Brian Stanley -Heads to Ft. Leavenworth, Kansas to be the next Training With Industry Officer for 2014-2015. -Replace MAJ Emma Parsons as the DA Banking Officer • CPT Ishak Owusu -Heads to Hawaii in July 2014 and will fall under 175th Financial Management Support Center in Fort Shafter, HI -Starts Credit Union training in August for two weeks -Scheduled to attend DCUC Annual Conference • CPT Juan Pratts -Will be Europe’s Army Banking Officer until 2016

17

Questions

Contact Information MAJ Emma Parsons [email protected] (703) 693-2698

18

6

United States Army Captain JUAN C. PRATTS USAREUR Banking and Credit Union Liaison Officer 266th Financial Management Support Center APO AE 09054 Since: June 2013

SOURCE OF COMMISSIONED SERVICE: ROTC

EDUCATIONAL DEGREES Interamerican University of Puerto Rico – BS – Electronic Engineering Technology Colorado Technical University – MS – Management

MILITARY SCHOOLS ATTENDED Mounted Officer Basic Course (Armor) Finance Captain Career Course

FOREIGN LANGUAGE(S): Spanish

PROMOTIONS DATE OF APPOINTMENT 2LT 05 Nov 05 1LT 02 Jul 07 CPT 29 Apr 09

FROM TO ASSIGNMENT

Jun 13 Present United States Army Europe, Banking and Credit Union Liaison Officer, 266th Financial Management Support Center, 21st Theater Support Command, Kaiserslautern, Germany Jun 12 May 13 Student, Training with Industry, Armed Forces Bank, Fort Leavenworth, Kansas Nov 11 Jun 12 Financial Management Support Operations, Plans Officer, 43rd Sustainment Brigade, 4th Infantry Division (Mechanized), Fort Carson, CO May 11 Nov 11 Deputy Comptroller, Combined Joint Special Operations Task Force – Afghanistan (OPERATION ENDURING FREEDOM), Islamic Republic of Afghanistan Aug 10 Apr 11 Commander, A Detachment, 230th Financial Management Company, 43rd Special Troop Battalion, 43rd Sustainment Brigade, 4th Infantry Division (Mechanized), Fort Carson, CO Jul 09 Jul 10 Internal Control Chief, Headquarters and Headquarters Detachment, 230th Financial Management Company, Fort Carson, CO and Islamic Republic of Afghanistan (OPERATION ENDURING FREEDOM) Jan 09 Jul 09 Student, Finance Officer Captain Career Course, Fort Jackson, SC Oct 07 Dec 08 Executive Officer, B Company, 3rd Battalion 60th Infantry Regiment, 193rd Infantry Brigade, Fort Jackson, SC Sep 06 Sep 07 Scout Platoon Leader, C Troop, 4th Squadron 7th Cavalry, 1st Heavy Brigade Combat Team, 2nd Infantry Division, Camp Hovey, Republic of Korea Jan 06 Jun 06 Student, Mounted Officer Basic Course, Fort Knox, KY

CPT Juan C. Pratts

SUMMARY OF JOINT ASSIGNMENTS DATE GRADE Deputy Comptroller, Combined Joint Special Operations Task Force (CJSOTF-A), Islamic Republic of Afghanistan May 11 - Nov 11 Captain

SUMMARY OF OPERATIONS ASSIGNMENTS DATE GRADE Deputy Comptroller, Combined Joint Special Operations Task Force – Afghanistan (CJSOTF-A), Islamic Republic of Afghanistan and OPERATION ENDURING FREEDOM May 11 - Nov 11 Captain Internal Control Chief, Headquarter and Headquarter Detachment, 230th Financial Management Company, Islamic Republic of Afghanistan and OPERATION ENDURING FREEDOM Jul 09 – Jul10 Captain

US DECORATIONS Defense Meritorious Service Medal Army Commendation Medal (with 3 Oak Leaf Cluster) Army Achievement Medal Joint Meritorious Unit Award

4/24/2014

UNCLASSIFIED//FOUO//

USAREUR Credit Union Liaison Update Defense Credit Union Council Overseas Sub‐Council Brief

CPT Juan C. Pratts USAREUR Banking and Credit Union Liaison Officer

1 May 2014 Rome, Italy

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG!

UNCLASSIFIED//FOUO// Purpose & Agenda

Provide an update of ongoing developments in the U.S. Army Europe (USAREUR) Area of Operations (AO) and Area of Responsibility (AOR). Purpose

. 266th Financial Management Support Center Update ‐Mission ‐USAREUR & USARAF Support

. USAREUR Transformation ‐Installation Closure ‐Manpower Reduction Agenda

. Topics of Interest/Concern ‐Advertisement of Off‐Base Financial Institutions ‐Art. X NATO SOFA Issue for Art. 72 SA Employees

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 2

UNCLASSIFIED//FOUO// 266th Financial Management Support Center Update

. 266th FMSC deployed to Camp Arifjan, Kuwait . COL. Thomas J. Seelig ‐ Director . SGM Tommy A. Byrd –Senior FM Advisor

. In Support of Operation Enduring Freedom (OEF); 1st Theater Support Command (TSC)

. Contingency Banking team deployed to Kabul, Afghanistan . 1LT Aaron Dermon ‐ OIC . SFC Steven J. Brooks ‐ NCOIC

. Civilian Deputy Director . Mr. Mark W. Jackson

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 3

1 4/24/2014

UNCLASSIFIED//FOUO// 266th Financial Management Support Center Update

Benelux Finance Office Italy Finance Office USARAF Area of Responsibility ‐Mauritania ‐Uganda ‐Senegal ‐Sudan ‐Mali ‐South Sudan ‐Burkina ‐Djibouti ‐Faso ‐Egypt ‐Niger ‐Lesotho ‐Chad ‐Kenya ‐Central African Republic

Germany Africa USAREUR Area of Responsibility ‐Romania ‐Slovakia ‐Poland ‐Hungary ‐Norway ‐Ukraine ‐Croatia ‐ Lithuania ‐Latvia ‐Estonia ‐Kosovo

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 4

UNCLASSIFIED//FOUO// US Army Europe Transformation

. FY06‐13 = 7 Garrisons / 112 Sites Closed

. 28,912 Acres, $11.21B Plant Replacement Value (PRV)

. FY14‐15 Returns = 2 Garrisons / 21 Sites

. 16,045 Acres, $6.854B Plant Replacement Value (PRV)

. USAG Bamberg & USAG Schweinfurt Closure (September 2014)

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 5

UNCLASSIFIED//FOUO// US Army Europe Transformation

2006 Returns - 7 Sites 2007 Returns - 29 Sites 2008 Returns - 26 Sites 2009 Returns - 20 Sites 2010 Returns - 8 Sites -211 Acres / PRV: $0.36B -2,986 Acres / PRV: $2.48B -11,305 Acres / PRV: $2.53B -7,816 Acres PRV: $2.72B -Acres: 608 PRV: $0.510 . Oberdachstetten Fam Hsg . Schwanberg DCS Site . W.O. Darby Kaserne . Bensheim Maint & Supply Fac . Sanem Site (LUX) . Daley Village Fam Hsg . Aschaffenburg Fam Hsg . Ernst Ludwig Kaserne . Hutier Kaserne . Anderson Barracks . Wuerzburg Trng Area . Giebelstadt Army Airfield . Cardwell Village Fam Hsg . New Argonner Fam Hsg . Dexheim Family Housing . Breitsol Comms Station . Giebelstadt DYA Camp . Buedingen Ammo Area . Grossauheim Kaserne . Coltano Comms Site (IT) . Eygelshoven Reserve Stor Area (NL) . Giebelstadt Tactical Defense Fac . Buedingen Army Heliport . Wolfgang Kaserne . Germersheim RTO site . RAF Hythe (UK) . Kitzingen Fam Hsg . Coleman Village Fam Hsg . Pioneer Village Fam Hsg . Neubruecke Hospital . Bettembourg Site (LUX) . Amberg Fam Hsg . Tiergarten Training Area . AG Pub & Trng Aids Ctr . Friedrichsfeld Storage Area . Pond Barracks . Fliegerhorst Airfield Kaserne . Pioneer Kaserne . Stem Kaserne Pre-IMCOM Returns by USAREUR . Brandhof Radio Relay . Wuerzburg Hospital . Kitzingen Trng Areas 2003-2005 (12) . HoheWarte LTA . Ray Barracks . Aschaffenburg Trng Areas 12 Sites, 412 Acres, PRV$.819B . Larson Barracks . Roman Way Village Fam Hsg . Camp Oppenheim Trng Area (Not included in above totals) . Harvey Barracks . Giessen Community Facilities . Idar Oberstein Fam Hsg • Regensburg Fam Housing . Birkenfeld Housing Facilities . Edingen Radio Receiver Fac . Griesheim Airfield • Rheinau Coal Point D1 . Friolzheim Comms Fac . John F Dulles Village Fam Hsg . Strassburg Kaserne • Massbach QRS Site . Gruenstadt Comms Fac . George Marshall Vill AFH . Lincoln Village Fam Hsg • Brunssum Pomms (NL) . Bonstetten Radio Relay Station . Armstrong Village Fam Hsg . Leighton Barracks • Vriezenveen Pomms (Almelo) (NL) . Babenhausen Kaserne . Armstrong Barracks . Jefferson Village Fam Hsg • Bad Aibling Kaserne . Babenhausen Fam Hsg . Pendleton Barracks . Kelley Barracks • Community Fac Kaiserslautern . Hohenstadt Radio Relay Station . Messel Small Arms Range . Dautphe Boy Scout Camp • George Gershwin Fam Hsg . Melibokus Radio Relay Station . Campo Pond Training Area . Hommertshausen Girl Scout Camp • Verona Riverside School (Italy) . General Patton Hotel . Langen Terrace Fam Hsg Area • General Von Steuben Hotel . Koenigstuhl Radio Relay Station . St. Barbara Village Fam Hsg • Frankfurt AFN Station . Heidenheim Radio Relay Site . Argonner Kaserne • Schloss Kaserne . Reinwarzhofen Radio Relay Site . Yorkhof Kaserne AFRC Site not included above . Stocksberg Comm Station . Butzbach Trng Area & Range • Chiemgau Recreation Area . Alvin York Vil Fam Hsg . Friedberg Trng & Stor Area . McArthur Place Fam Hsg . Faulenberg Kaserne Franconia . Turley Barracks Giessen Hanau Darmstadt Heidelberg 2011 Returns - 6 Sites Total 2012 Returns - 6 Sites 2013 Returns - 10 Sites FY14-15 Returns = 2 Garrisons / 21 Sites* -298 Acres // PRV - $0.512B -612 Acres // PRV - $.158B -5,076 Acres // PRV - $1.94B . Mannheim Class III site . Dannenfels Comms Station (Nov 11) . Lampertheim Tng Area (15 Jan 13) (16,045 Acres, $6.854B PRV) . Friedrichsfeld QM Service Center . Dexheim Missile facility (Jan 12) . Rottrdm Adm Lease (31 Jan 13) (NL) . Cambrai Fritsch Kaserne . Kilbourne Kaserne (May 12) . Schwetzingen TA (27 Feb 13) 2014 Future Returns - 10 Sites 2015 Future Returns - 11 Sites . Hammonds Barracks . Bamberg Airfield (Jun 12) . Tompkins Barracks (28 Feb 13) -759 Acres // PRV - $2.87B -15,286 Acres // PRV - $3.984B . Taylor Barracks . Rottershausen Stor Area (Sep 12) . Ben Franklin Fam Hsg (30 Apr 13) . Campbell Barracks . Coleman Barracks . Nathan Hale QM Area . Sulzheim TA (Sep 12) . Sullivan Barracks (29 May 13) . Heidelberg Army Air Field . Funari Barracks (+ Acquired Brunssum NIC Site Jun 12) . Edigheim Beacon Site (14 Jun 13) . Heidelberg Community Spt Ctr . Darmstadt Training Center (Dagger) . Heidelberg Hospital (17 Sep 13) . Mark Twain Village Fam Hsg . Bamberg Stor & Range . Heidelberg Golf Course (30 Sep 13) . Patrick Henry Village . Flynn AFH & TNG Area . Oftersheim Range (30 Sep 13) . Patton Barracks . Warner Bks . Spinelli Barracks . Warner AFH Mannheim Baden-Wurttemberg . American Arms Hotel . Askren Manor AFH . Giessen Army Depot (Complete) . Conn Bks (Note: Return Data updated as of 30 SEP 2013) . San Gottardo Signal Site (Italy) . Ledward Bks Bamberg . Schweinfurt TA FY06-13 = 7 Garrisons / 112 Sites Closed, (28,912 Acres, $11.21B PRV) Schweinfurt POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 6

2 4/24/2014

UNCLASSIFIED//FOUO// • US Army Europe Transformation

Manpower Reduction

.USAREUR HQ –40 % Reduction FY14

.21st TSC HQ –25 % Reduction FY15

“Right now the Army and USAREUR are in a time of transformation as we seek to reach our authorized end strength to meet the needs of the nation. As we transform, we must ensure that our actions enable us to build readiness and continue modernization for the future.” ‐ LTG Donald M. Campbell, USAREUR CDR

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 7

UNCLASSIFIED//FOUO// US Army Europe Transformation

Germany Belgium

.Gain ‐ 53 U.S. CIV .Gain –5 U.S. CIV and 3 MIL

.Loss – 554 LN and 93 MIL .Loss ‐ 25 LN

Netherlands Overall

.Gain ‐ 1 MIL .Net Increase ‐ 44 U.S. CIV

.Loss ‐ 14 U.S. CIV .Net Reduction – 579 LN and 89 MIL

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 8

UNCLASSIFIED//FOUO// US Army Europe Transformation (21st TSC)

Kaiserslautern, Germany Vilseck, Germany

.6966th Truck Transportation Terminal: .Maintenance Activity Vilseck: Loss –1 U.S. Loss –3 U.S. CIV and 63 LN. CIV and 42 LN. .Maintenance Activity Kaiserslautern: Gain –1 U.S. CIV. Loss – 330 LN. .Supply Activity Europe: Loss –1 U.S. CIV and 42 LN.

Grafenwoehr, Germany “The expected decrease in future workload requirements in conjunction with the posture .Joint Multinational Training Command changes announced by DoD in 2012 make (JMTC): Loss –9 U.S. CIV, 114 LN and 83 MIL. these changes necessary”.

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 9

3 4/24/2014

UNCLASSIFIED//FOUO// US Army Europe Transformation (IMCOM‐E)

Germany .USAG Bavaria: Gain –19 U.S. CIV. Loss –72 LN and 2 MIL. .Garrison Support Sembach: Gain –3 U.S. CIV .USAG Hohenfels: Loss –8 U.S. CIV, 59 LN and 3 and 4 LN. MIL. .USAG Ansbach: Gain ‐ 6 U.S. CIV. Loss –1 MIL .USAG Rheinland‐Pfalz: Gain –21 U.S. CIV, 179 LN and 20 LN. and 3 MIL. .USAG Baumholder: Loss –11 U.S. CIV, 154 LN .USAG Stuttgart: Gain –2 U.S. CIV, 91 LN and 2 and 8 MIL. MIL. .Small Site Garmisch: Gain –14 LN and 1 MIL. .USAG Wiesbaden: Gain –38 U.S. CIV and 32 LN. Loss –4 U.S. CIV. Loss –2 MIL.

Belgium Netherlands

.USAG Benelux: Loss –30 LN and 2 MIL. .Small Site Schinnen: Gain ‐ 1 MIL. Loss ‐ 14 U.S. CIV. .Small Site Brussels: Gain –5 U.S. CIV, 5 LN and 5 MIL.

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 10

UNCLASSIFIED//FOUO// Advertisement of Off‐Base Financial Institutions

Issue: Allegations of improper advertisement from the Exchange New Car Sales (ENCS) on behalf of off‐base financial institutions (FI).

DoDFMR Vol. 5 Ch. 34: “Off‐base financial institutions are not permitted to distribute competitive literature or forms on the installation”

“Installation activities, including Military Exchange Services and concessionaire outlets, shall not permit the distribution of literature from off‐base financial institutions if there is an on‐base financial institution”

Status: DoD Banking Office has established a dialogue with AAFES at senior levels.

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 11

UNCLASSIFIED//FOUO//

Art. X NATO SOFA Taxation Issues for Art.72 SA Employees Joerg C. Moddelmog, LL.M. (USA) Senior German Attorney‐Advisor

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4 4/24/2014

UNCLASSIFIED//FOUO// Art. X NATO SOFA Taxation Issues for Art.72 SA Employees

Non‐German Commercial Enterprises (Art. 72 SA)

. Are not part of the U.S. Forces, but if the enterprise EXCLUSIVELY serves the Forces, the civilian component, & their dependents, both the enterprise and its U.S. employees get certain SOFA based benefits/privileges. . Employees who EXCLUSIVELY serve the enterprise are treated as members of civilian component with SOFA status, except: . Art. 72 para. 5 (b) SA  Germans or person who were ordinary resident in Germany PRIOR to being hired don’t qualify for SOFA status

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 13

UNCLASSIFIED//FOUO// Art. X NATO SOFA Taxation Issues for Art.72 SA Employees

The Tax Benefit: Art. X para. 1 NATO SOFA

. Among the SOFA benefits available is exemption for certain German (host nation) taxes (Art. 72 para. 5 (a) SA  Art. X para. 1, NATO SOFA (taxation privilege)

. Article X paragraph 1 NATO SOFA reads: “Where the legal incidence of any form of taxation in the receiving State depends upon residence or domicile, periods during which a member of a force or civilian component is in the territory of that state BY REASON SOLELY of his being a member of such force or civilian component shall not be considered as periods of residence therein, or as creating a change of residence or domicile, for the purposes of such taxation. Members of a force or civilian component shall be exempt from taxation in the receiving State on the salary and emoluments paid to them as such members….”

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 14

UNCLASSIFIED//FOUO// Art. X NATO SOFA Taxation Issues for Art.72 SA Employees

Art. X para. 1 NATO SOFA . The German tax courts currently interpret the wording “by reason solely of” in Art. X to mean, to have the “intent to return” (to the US).

. The “Intent to Return” (or “Rückkehrwille”) test applies to uniformed members of the force and to members of the civilian component, and thus to Art. 72 employees.

. “Intent to Return” must exist during EVERY tax year, not just at the end of the contract.

. FULL burden of proof is on the “taxpayer” . merely presenting an alternative view of the facts is insufficient. (“Is the glass half full or half empty?”) . Problem: It’s a subjective standard and when in doubt, the Finance Office

POC Name wins (99% of the time). Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 15

5 4/24/2014

UNCLASSIFIED//FOUO// Art. X NATO SOFA Taxation Issues for Art.72 SA Employees

“Intent to Return” Some of the Criteria The Courts Consider: . overall duration of stay in Germany (“5‐year rule”) . real estate in the USA as opposed to real estate in Germany . (valid) American driver’s license . driving a car with US specifications . if you paid U.S. State income tax. . frequently traveling back to the USA . participation in U.S. elections (remaining ties to the USA) . German spouse (and the amount of German spouse’s income) . Kindergeld, attendance of German school; homeowner grants. . Witness testimony of neighbors and friends on your German (dis)likes . Case‐by‐case analysis, there is no one decisive factor ‐‐ Even an actual later return to the U.S. has been held to be inconclusive.

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 16

UNCLASSIFIED//FOUO// Art. X NATO SOFA Taxation Issues for Art.72 SA Employees

New / Latest Trick

Foreign Earned Income (FEI) and German Taxation . Germans see taking the FEI exemption as an indication to opt for a . German residence, triggering a lack of “intent to return” . Germans “interpret” US tax law –incorrectly(?) ‐ When using the FEI exemption, select the Physical Presence election. . Art. 72 para. 5 (a) SA misses a clause like Art. 71 para. 5 (a) (i) SA

Foreign Earned Income (FEI) and US Taxation . Rev. Rul. 72‐497, 1972‐2 C.B. 448, 1972 WL 29556 (IRS RRU) . “Indirect” government employee: “SOFA‐Land” means that Germany is not your residence for FEI or else taxation should be in Germany  USAREUR US tax attorneys still work this issue

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 17

UNCLASSIFIED//FOUO// Art. X NATO SOFA Taxation Issues for Art.72 SA Employees

What Happens if German Tax Authorities Determine “No Intent to Return”

. Generally, SOFA status remains unaffected, except Art. X tax exemption shield is gone. . World‐wide income subject to unlimited German taxation. . Risk of in kind income (e.g., VAT‐free shopping, gas‐coupons,…) being added to gross income.

. US/German Tax Treaty (TT) applies but provides no relief: . Art. 19 TT: Government Services does not apply to SCU employees. . Art. 15 TT: Personal Services: . Right of taxation rests with residency state (Germany) . Work is performed in Germany

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6 4/24/2014

UNCLASSIFIED//FOUO// Art. X NATO SOFA Taxation Issues for Art.72 SA Employees

What to do?

. If eligible, see a JAG local national legal assistance attorney for initial advice. . Attack settled case law on the interpretation of Art X. para. 1, sentences one and two. . Try new case law – Supplementary Agreement Re: Art. 68 para. 2 (a) – similar language to Art X.

. Keep and document extensive ties with the U.S. to show your “intent to return;” do not mark Bona Fide Resident on the IRS Form 2555 (FEI); do not accept German social benefits, especially if tied to residence.

. Last resort: inter‐governmental talks

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 19

UNCLASSIFIED//FOUO//

Questions?

POC Name Enter DSN UNCLASSIFIED//FOUO// As of: YYYY MM DD FIRST IN SUPPORT – READY STRONG! 20

7 MASTER SERGEANT MARIO G. GABOR USAFE/FM AFSC: 6F071, Financial Manager

Master Sergeant Mario G. Gabor is a Financial Manager assigned to the United States Air Forces in Europe and Africa Financial Management Staff as the Military and Travel Pay Policy and Procedures Manager at Ramstein Air Base, Germany. He is responsible for providing strategic guidance and policy oversight on all United States Air Forces in Europe/Africa bases. MSgt Gabor was born in Manila, Philippines on 03 January 1973. His family migrated to Oxon Hill, Maryland and attended National Christian Academy, graduating in 1992. After attending the University of Maryland, Baltimore County, MSgt Gabor entered the Air Force in April 1996 as a Financial Manager. His assignments include DFAS-Pacific in Hawaii, DFAS-Denver in Colorado, 51st Comptroller Squadron at Osan AB, Korea, 99th Comptroller Squadron at Nellis AFB, Nevada. He deployed in support of Operation Enduring Freedom to Kabul, Afghanistan in October 2010 as a Budget Analyst and in Bagram AB, Afghanistan in November 2012 as a Paying Agent and worked with Department of Treasury in the Eagle Cash program. He has extensive expertise in Financial Services, Financial Analysis, Paying Agent, Disbursing, and Quality Assurance. MSgt Gabor is currently pursuing his Masters’ Degrees in Business Administration. He is married to Melody M. Gabor and they have a son named Maori Kalani M. Gabor.

His military awards include the Air Force Commendation Medal (2OLC), the Joint Service Commendation Medal (3OLC), Air Force Achievement Medal, the Joint Meritorious Unit Award, Meritorious Unit Award, Air Force Outstanding Unit Award, the National Defense Service Medal, Afghanistan Campaign Medal (1 device), the Global War on Terrorism Service medal, the Korean Defense Service Medal, the Air Force Overseas short-tour ribbon (1OLC), the Air Force Overseas long-tour ribbon (1OLC), the Air Force Expeditionary Service ribbon with Gold Border, Air Force Longevity Service ribbon, Air Force NCO PME Graduate Ribbon, the Air Force Training ribbon, and the NATO medal. U.S. Air Forces in Europe

USAFE Update

OVERALL BRIEFING CLASSIFICATION: UNCLASSIFIED

MSgt Mario G. Gabor HQ USAFE/FMPF

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USAFE/FM Org Structure

USAFE FM Col Rodney Berk

FME (3) Enlisted Functional Manager CMSgt Christine Daniels

FMI (6) FMA (22) FMP (14) Audit/Accounting/QA Financial Analysis Financial Services Mr. Michael Witsman Lt Col. Trevor Matsuo Mr. Fred Springer

Total Manning = 46 - Military = 24 - US Civilian = 15 - Local National = 4 - Contractors = 3 (systems/programmers) - 4 Currently Deployed (included in manning #s)

FM Mission

• Directs financial management for USAFE's appropriated funding exceeding $1.2B annually. • Provides analysis of headquarter’s and field-level program budget execution. • Develops budget strategies and recommends funding priorities to the USAFE-AFAFRICA Council. • Presents and defends O&M budget execution plans to HAF's Operating Budget Review Committee. • Provides oversight and trend analysis of command accounting responsibilities. • Provides policy and guidance on financial services operations including military, civilian, and travel pay. • Provides financial management training and ensures compliance with regulations and public law.

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1 FY14 Budget Overview USAFE Funding Trend – O&M

1,600 203 1,400 193 131 1,200 207 166 1,000 800 1,357 1,421 600 1,417 1,106 1,214 OCO 400 Peacetime 200 0 FY10 FY11 FY12 FY13 FY14

Actuals/Obligations Distribution Jan 14

5

Finland Norway 48 FW RAF Lakenheath Wings (9) Sweden

Estonia GSUs (79) 100 ARW RAF Mildenhall Russia Latvia Denmark 52 FW Spangdahlem AB UK Lithuania 501 CSW RAF Alconbury Germany Belarus Netherlands Ireland

Poland Belgium

Czech Republic Slovakia Austria 86 AW RamsteinUkraine AB France Moldova Switzerland Hungary 435 AW Ramstein AB Slovenia Croatia Bosnia Romania and Serbia Herz. Italy Montenegro Kosovo Bulgaria

Spain Macedonia Albania

Greece Turkey Portugal 65 ABW Lajes AB Cyprus

31 FW Aviano AB 39 ABW Incirlik AB Israel

Finland 100 ARW RAF Mildenhall 48 FW RAF Lakenheath Norway Kolsas Wings (9) Sweden

Stavanger Estonia GSUs (79) 501 CSW RAF Alconbury Upwood Copenhagen

Menwith Hill Feltwell Russia Hohenfels Latvia Molesworth Waterbeach Denmark Bremerhaven Croughton Volkel 52 FW Spangdahlem AB UK Siegenberg Lithuania Fairford Kalkar Wiesbaden Sandhofen Frankfurt Main London Germany Belarus Netherlands Frankfurt Northwood Ireland Bann Darmstadt Buchel Schweinfurt RAF Welford Poland Mannheim Belgium Sembach Heathrow AP Heidelberg Czech Republic Amsterdam Slovakia Austria 86 AW RamsteinUkraine AB Rotterdam Paris Papa (HAW) France Patch Brks Moldova SwitzerlandStuttgart Hungary 435 ABW Ramstein AB Brussels Slovenia Bitburg Bucharest Chievres Brunssum IllesheimCroatia Baumholder SHAPE Kleine-Brogel KatterbachBosnia Romania Landstuhl Florennes Geilenkirchen Schweinauand Serbia Einsiedlerhof Herz. Italy Vilseck Vogelweh Linate Mihail Kogalniceanu GrafenwoehrMontenegro Kosovo Bulgaria Madrid Kapaun Spain Kaiserslautern Macedonia Istanbul Ghedi Lisbon Rhein Brks Albania Pirmasens Larisa Eskisehir Greece Turkey Ankara Camp Darby Naples Portugal Izmir Livorno Tanagra 65 ABW Lajes AB Athens Albacete Camp Ederle Cyprus Vicenza Souda Bay Moron Akrotiri Yumurtalik 31 FW Aviano AB 39 ABW Incirlik AB Tel Aviv Israel Note: GSUs include minor installations, forward operating bases, support sites, and detached activities

2 Unit Closures/Issues

Unit Closures Current Issues  Incirlik PFCU Closed (Dec  Alconbury Community Bank 2013) Branch Renovation ($280K) Recurring Issues  2013 Bank/Credit Union Awards  Banking Agreements  Nominations (8 banks and  Every 5 years 29 credit union nominations)  Spangdahlem ATM Issue - Installation being worked  Presentation is in Aug 2014  Lajes ATM Installation Request

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Readiness/Sequestration Impacts

New Perspective/Readiness  Offering B/CULO Quarterly training via teleconference—easier method to disseminate information due to fiscal constraints Sequestration  Travel restrictions- must define where travel is inevitable—must utilize video teleconference (VTC)/DCO as much as possible  Fy15 Budget proposed by the President calls for more rounds of Base Realignment and Closures (BRAC)  Could see more with the mission shift of troops returning from Afghanistan  Banks/Credit Union (offers aid in time of need)  Types of financial support provided:  Debt consolidation

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Readiness/Sequestration Impacts

 Banks/Credit Union  International Bill Pay (different currencies, utilities, etc.)  Mobile Banking & Web Deposits (managing accounts whenever and wherever) – Banking with convenience  GIROCard – Pin & Chip  Loans  Personal, Auto, Relocation, Disaster Relief Assistance  Financial Coaching  Military Saves campaign had 29,307 pledges (66% active duty); 3,153 were re-pledges  SAF/FM would like to pass and express their gratitude for all of the financial support/incentives that have been extended to all our troops

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3 USAFE-AFAFRICA/FM Point of Contacts

 MSgt Mario G. Gabor  MSgt Temeka Stewart  SSgt Maurice Morrell  HQ USAFE/FMPF

 DSN 480-0976/6528; Commercial: 0049-63-71470976/6528  [email protected]  [email protected]  [email protected]

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4

Dr. Luigi Amato Commander Navy Region Europe South West Asia Payroll Director Banking Liaison Officer and Credit Union Liaison Officer

Dr. Amato was born in Naples, Italy and graduated from University of Naples (Italy), where he earned a bachelor of Business and Finance in 2000. He also earned a Master in Corporate Finance & Banking from University of Milan, Italy (Bocconi) in 2004. In 2005, Dr. Amato completed his PhD in Economics and Finance of University of Naples Economics Department (Federico II), Naples‐ Italy. Since 2006, Dr. Amato also acts as a qualified member of professional accountancy body in Italy (Ordine dei dottori commercialisti e revisori contabili di Napoli, Italy) and his expertise is used by the Italian Government and also the EU for consultations on financial projects.

Dr. Amato, started to work with the US Navy in 1998 as a Budget Assistant and he was involved in the preparation of yearly budget plans for all Naval Support Activity departments in Naples. He was also responsible for preparing contingency plan reports for COMSIXTHFLT during Operation Iraqi Freedom and other military operations connected with the Gulf War . In addition he is involved in the end of year budget execution for the NSA command and active in drafting of NII (Navy Improvement Initiative program) in Naples.

In 2003 ,Dr. Amato was appointed in his current role as Payroll director for NSA Naples under Comptroller department.

In 2005, he earned the Senior Civilian of the Year award at the Naples installation for having saved the US Navy around $1 million for his negotiation with the Italian social security agency on the level of contributions payable and concluded such negotiations at the agreed rate following his successful presentation of his business analysis. Furthermore in the same year, Dr. Amato was able to also negotiate an agreement with the local Italian bank to provide its financial services at special rates to both Italian and US communities on base. One of the negotiated terms was to apply Zero commissions on all official banking transactions made by the US Navy which normally would attract banking charges for other employers under similar agreements.

In 2006 this function passed under the CNREURAFSWA theater and he is currently acting as Regional Payroll director & Banking liaison officer and Credit Union Liaison officer for the Navy Region. In this role, Dr. Amato is responsible for formulation of policies and procedures governing payroll functions on CNREURAFSWA installations and has represented the US Government in completing special projects, for instance, during 2013 spearheaded the centralization of Bahrain payroll to a single unified payroll office based in Naples. In addition, overhauled the timekeeping process to make it electronic based under a single system for both Bahrain and Italy. Since 2011 he has the role of Regional Banking Liaison Officer being the primary point of contact for all Navy installations with the Regional theater on any banking concerns or issues. 4/21/2014

41st Defense Credit Union Council Overseas Sub council Meeting Roma, Italy

Commander Navy Region Europe South West Asia update

presented by Dr. Luigi Amato NAVEUR BLO/CULO

Welcome to Italy

CNREURAFSWA Mission and Vision

1 4/21/2014

New Rear Admiral Naples

Rear Admiral John C. "Jack" Scorby, Jr. Commander, Navy Region Europe, Africa, Southwest Asia

Troy D. Terronez Kevin.F.Mooney Comptroller Executive Director CNREURAFSWA CNREURAFSWA

Locations

Commander Navy Region Europe, Africa, Southwest Asia is responsible for management of six installations across three continents

• Naval Support Activity Naples - Italy (Europe) • Naval Station Rota- Spain (Europe) • Naval Air Station Sigonella – Italy (Europe) • Naval Support Activity Souda Bay- Greece (Europe) • Naval Support Activity Bahrain – Bahrain (Asia) • Camp Lemonnier, Djibouti- Djibouti (Africa) • NEW BASES • Poland (Redzikowo) Estimated opening in FY18 (Europe) • Romania (Deveselu) Estimated opening in FY15 (Europe)

Actual Region Scenario

2 4/21/2014

Actual CNREURAFSWA Banking support

DOCPER Contractor Online Processing System

Logistical and Financial Challenges

• Djibouti as of 1st October 2014 become base line

• New Ballistic Missile Defense bases : Still on going Poland (Redzikowo) Estimated opening in FY18 • Romania (Deveselu) Estimated opening in FY15- first group of military and contractor will arrive in July-14

• ISA Air Force Base, Bahrain OCO base

• Importation of $ in Bahrain to support mission

• Short, Medium term Navy financial and military strategies with potentially new requirements, new installations and more people to cater for, especially in the middle eastern area.

3 4/21/2014

Aegis Ashore

Aegis Ashore Poland Installation establishment in FY18

Aegis Ashore Romania Installation establishment in FY15

Unclassified

South West Asia and Africa

NSA Bahrain

FLSS UAE – Port of Fujairah AV Unit Fujairah Port of Jebel Ali

CAMP LEMONNIER, DJIBOUTI

THE EU SINGLE MARKET-SEPA

The Single Euro Payments Area (SEPA) is a payment-integration initiative of the EUROPEAN UNION for simplification of bank transfers denominated in euro. The SEPA Regulation (EC 260/2012) adopted in 2012, aims to create true European Single Market for retail payments. The SEPA Regulation sets 1 February 2014 as the date at which all credit transfers and direct debits in euro will be made under the same format: SEPA Credit Transfers and SEPA Direct Debits. SEPA is where more than 500 million citizens, over 20 million businesses and European public authorities can make and receive payments in euro under the same basic conditions, rights and obligations, regardless of their location It also means better banking services for all: transparent pricing, valuable guarantees ensuring that your payments are received promptly and in full, and banks assuming responsibility if something goes wrong with your payment.

4 4/21/2014

Regional BLO/CULO tasks

• Be notified of any issues/changes in bank or credit union operations

• Applications reviewer on DOCPER Contractor Online Processing System for Navy federal Job applicants

• Support and coordinate with the installation BLO/CULO on any action to be taken

• Ensure branch managers are aware of their local BLO/CULO and that a working relationship is maintained • Review Operating agreement (valid 5 years) every year

• Ensure that any deficiencies in banking facilities and services are resolved in liaison with the banking manager. • Ref. FMR Vol.5 Chapter 34

Next steps to the way ahead

• Deal with local differences and HN rules on banking rules and regulations

• Make a strategy to support remote and isolated locations like Djibouti and Fujairah

• Improve the quality of banking services

• Improve technology especially for remote locations

• Be updated on the latest changes may impact the overseas banking program

• Set up a Community bank branch in Bahrain

Achievements

• Created a solid structure between local and regional BLO/CULOs POCs opening up the lines of communication with NFCU management

• Completed and signed the regional operating agreement to include a banking facility in the Djibouti camp

• Provided more info to US personnel about the banking service throughout the Region using media resources e.g. web, radio, attracting more attention from young consumers to give a positive outlook of the banking world especially after the recent European and world wide financial crisis.

• Disseminated info concerning SEPA payments • DON 2014 Awards nominations

5 4/21/2014

Conclusion

Banks and Financial institutions should always strive to “lighten the load” for their members. Navy Federal Credit Union provides a great example of a financial services company that has employed a mature, holistic approach to social engagement. They intently listen to their social communities, and know which customers spend more and more time on social.

Better our service to the community , focus on improving the quality and efficiency of services provided, giving the necessary support to the Credit Union to achieve this.

THANK YOU

[email protected] +0039 081 5685668 +0039 335 8257414

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Biography

Roland “Arty” Arteaga President and Chief Executive Officer

Roland “Arty” Arteaga has been serving as the President/CEO of the Defense Credit Union Council (DCUC) since 1 March 2000. In this capacity, he represents the interest of credit unions operating on military bases worldwide, serving as their primary liaison to the Pentagon.

Over the past fourteen years, Mr. Arteaga has worked diligently with the Department of Defense (DOD) on matters affecting credit unions operating on DOD Installations and the financial quality of life of DOD personnel. During the past year alone, Arteaga was engaged with the Department on such issues as, Financial Readiness (to include the impact of sequestration and budget reductions on DOD civilian and military personnel); overdraft protection; proposed changes to the Consumer Credit Provisions of the 2007 National Defense Authorization Act (the Military Lending Act); the Department’s Personal Commercial Solicitation policy; proposed changes to the DOD Financial Management Regulation; the DOD Installation Access policy; Morale Welfare and Recreation sponsorships; the One Credit Union/One Bank policy; the land lease policy; Credit Union Liaison training; and overseas credit union operations, to include the taxation of employees, base access, and the Army Air Force Exchange System (AAFES).

Aside from his primary duties, Mr. Arteaga has served and participated in a number of committees and campaigns focused on financial capability, such as the President’s Advisory Council on Financial Capability (PACFC). As a member of the PACFC, Arteaga and his fellow council members advised the President of the United States and Secretary of the Treasury on means to promote the financial capability of all Americans. During his tenure, Mr. Arteaga concurrently served as the Chairman of the Financial Access Subcommittee and as a member of the Partnership Subcommittee. The PACFC concluded its tenure in January 2013, rendering a final report to the President in February 2013.

Prior to joining DCUC, Mr. Arteaga served a short tour at Bank of America, as the Vice President of Government Card Services…and a long tour in the United States Army in various leadership positions, both as an Infantry Officer and a Finance Officer. Key among his military assignments were his tours of duty as the Battalion Commander of the 230th Finance Support Command, including duty with the 18th Airborne Corps during Operations Desert Shield/Desert Storm, and as a Principal Advisor and Senior Military Assistant to the Assistant Secretary of the Army for Financial Management at the Pentagon.

On 1 September 1999, Colonel Arteaga retired from the United States Army after 28 ½ years, closing his career as the Commander of the United States Army Finance Command.

Colonel (R) Roland “Arty” Arteaga has an undergraduate degree from St. Mary’s University, San Antonio, Texas, and a Masters degree from Webster University, St. Louis, Missouri (Fort Sam Houston). He and his wife, Carol, currently reside in Virginia.

4/21/2014

Defense Credit Union Council Update

“What’s On Our Radar Screen?”

On Our Radar Screen

 The Hill  troop/consumer friendly…”here to help!”  NDAA…pilot programs  amendments  Budget Cuts …second and third order effects  current (2014); near term (2015); future (2016 >)  downsizing/rightsizing  BRAC…not a matter of if; but when --- 2017?  no appetite in Congress…war-gaming? Title 10!  European Footprint  Re-capitalization…slowed?  changing…storm after the calm  Romania, Poland, Spain, Greece, Lithuania +  Belgium, Germany, Italy, Turkey, UK =

On Our Radar Screen

 CFPB…Office of Servicemember Affairs  European Visit  DOD issues  32 CFR Part 230 (DODFMR, Vol 5, Chp 34)…  One CU/One Bank  32 CFR Part 232 (Military Lending Act)…payday lending  taxation of Credit Union Employees OCONUS  AAFES…overseas car sales contract/FMR infractions  discretionary allotments  no cost land leases  MWR Sponsorships…off-base FIs/quasi military organizations  Commercial Solicitation  Credit Union Liaison Officer Training…TWI

1 4/21/2014

On Our Radar Screen

 Financial Readiness  campaign launched in 2003  1999 DMDC Study  2000 Rand Survey  Objective: increase personal readiness by reducing stressors related to financial problems  still an issue  FINRA Military Study (released Dec 2013)  troops doing better when compared to national norm, but…  Junior Enlisted personnel/senior NCO’s remain vulnerable…OPTEMPO a factor  Timing is everything…2014 is the time!  Drawdown in Afghanistan  Recapitalization in Europe

On Our Radar Screen

 Financial Readiness  DCUC Efforts  Financial Readiness Community of Practice (FRCoP)  DOD Financial Readiness Roundtable  Joining Forces Military Financial Capabilities Thought Leadership Symposium  Military Saves  BBB Military Line  Home and Family Finance  Concerns  Funding  Priorities  Too many Chefs in the kitchen  outside FIs and Foundations

Summary

 DCUC and Defense Credit Unions have a long rich tradition of supporting DoD  DCUs  stateside since 1928  overseas since 1967  DCUC  since 1963…“still going”  rock-solid on all fronts!  poised for the future  “Serving Those Who Serve Our Country!”  Questions?

2

John J. McKechnie, III Partner ______

John McKechnie joined Total Spectrum as a Partner in 2011. This follows five years in government as the Director of Public and Congressional Affairs at the National Credit Union Administration (NCUA), the federal agency that regulates and insures credit unions.

McKechnie’s career in the credit union industry began in 1987 as the Director of Political Action with the Credit Union National Association – the industry’s largest trade association – and culminated as the chief federal lobbyist for CUNA.

Among the highlights of his tenure at CUNA was John’s role in creating the nationwide grassroots campaign that created the momentum for passage of the landmark 1998 credit union membership legislation. McKechnie is also recognized for his work in passing bankruptcy abuse prevention legislation in 2005, and for propelling CUNA into the front ranks of Washington’s advocacy groups.

He left the private sector in 2006, when he became a Presidential appointee to the National Credit Union Administration. As Director of Public and Congressional Affairs for NCUA, McKechnie was responsible for media and congressional relations for this federal financial regulator during the recent economic dislocation. He was instrumental in the formulation and passage of key legislation that enabled the credit union industry’s federal insurance fund to remain solvent and stable, and also was the day-to-day manager of a multi-media campaign that netted over $5 million in donated advertising for NCUA.

Prior to joining the Credit Union National Association, McKechnie served as a congressional aide to Representative Stan Parris (R-VA), and as press secretary or organizational director for a number of gubernatorial and legislative campaigns throughout the Mid-Atlantic.

He is a 1983 graduate of Loyola College in Maryland, and he resides in Bethesda, Maryland with his son.

507 Capitol Court NE, #100 • Washington, DC 20002 • (202) 546-0900

www.totalspectrumsga.com John Slusher Vice President, Sales CUNA Mutual Group

John Slusher has been serving credit unions as a CUNA Mutual Group representative for 33 years, starting out as a Group Representative in Southwest VA from 1981 to 1991 and then in Northern VA/DC from 1991 until the present.

Over the years, he has served most of the credit unions in Virginia and all credit unions in the District of Columbia, as well as many larger credit unions in Maryland and North Carolina. In his current role as Vice President – Sales, John’s current responsibility involves the oversight of CUNA Mutual’s relationship for credit unions with approximately $1 billion dollars or more in assets that are located in VA, Southern MD, and DC.

John graduated with a BS degree in Business Management from Carson-Newman College in 1976.

He has been named to the CUNA Mutual President’s Council 12 times and has served as a member of the CUNA Mutual Leadership Forum. He has spoken to numerous credit union groups over the years and also contributes time and effort to many credit union and industry charitable functions and is currently servicing on the Race Committee of the CU Miracle Day Cherry Blossom 10 Mile Run.

John resides in Stafford, VA with his wife, Vivian and both enjoy traveling and golf.

April 2014 4/16/2014

2014 Defense Credit Union Council

CUNA Mutual Update European Sub-Council Conference Rome, Italy May 2, 2014

CUNA Mutual Group Proprietary Reproduction, Adaptation or Distribution Prohibited © CUNA Mutual Group 2013

The Credit Union Marketplace – Trends Since 1980

-68% Credit Union count decreased by 14,669

+1473% Assets increased by $1 trillion

+124% Membership increased by 55 million

2

The Credit Union Marketplace – By 2018

11% of credit unions will have …

76% of member assets and

67% of all credit union members.

3

1 4/16/2014

THE CREDIT UNION MARKETPLACE

Continuing Risks • The economy • Cuts to non-interest income • Spread compression • Regulatory dynamics Strategic Risks • Taxation • Change of Regulator • Remaining Relevant

Source: CUNA Mutual Economics

4

CUNA Mutual Group Update

• Jeff Post retires as President/CEO – Bob Trunzo named new President/CEO

• Capital reaches $1,795,000,000

• Lending operating revenue reflects growth of 5.6%

• CUNA Mutual exits Loan Protection/Life Savings and Employee Benefits markets, sells CMG Mortgage Insurance

• Revising our Debt Protection program to enhance benefits, enrollment, suitability to stay ahead of CFPB

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CUNA Mutual Group Update

• Retirement Plan assets reflects growth of 16%

• Members Capital Advisors - $12.7B in AUM

• CUNA Brokerage Services records $3.0B in deposits

• CMG spent $1,000,000+ in lobbying for credit union interests in Washington, DC and state legislatures * Recent UBIT decision by IRS in favor of credit unions following a 15 year litigation process – Congratulations to Mary Martha Fortney, who served on the UBIT Steering Committee!!

6

2 4/16/2014

CUNA Mutual Group - Benefits Update

$1,800,000,000 in benefits ~claims/annuities payments and Non-Interest Income payments ~ paid to credit unions and credit union members in 2013

–94,000+ Member Lending Protection claims –28,000+ Member TruStage claims –15,000+ CU Protection claims

7

CUNA Mutual Group – Benefits Update

• In 2013, the 9 credit unions attending this week’s conference and their members received the following benefits:

–Total Lending and TruStage Insurance claim benefits: $36,556,114

–Credit Insurance and TruStage Non-interest income: $11,363,476

–Debt Protection incomes are not included since the income is generated by the retail fee as opposed to a reimbursement

8

CUNA Mutual Group - Benefits Update

–Expedited claims processes for military and government workers during government shutdown and no act of war exclusions for Lending and Whole Life/Term Life insurance products

–Military Foreign Soil AD&D benefit with 50% benefit paid with war exclusion waived available to specially approved credit unions – Not a standard feature of the standard CMG AD&D program

–Created new Enhanced Defense Reimbursement Coverage that has covers any litigation that is not covered by any other available CMG policy

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3 4/16/2014

CUNA Mutual Group Strategies

• Invest in growth opportunities and exit products/services where we are not or don’t expect to be the market leader

• Partner or find other companies, market leaders - who can deliver what credit unions need – Liberty Mutual, State National, Digital Benefits Advisors

• Focus on core products: Lending, MemberCONNECT/TruStage/CUNA Brokerage, Retirement/401K plans, and CU Protection

10

CUNA Mutual Group Strategies

• Continued Support of Credit Union System and continuing to restrict our business to only credit unions and credit union members

• Continue providing time and resources (over 100,000 hours in 2013) for regulatory compliance research supporting credit unions

• Investing over $1,000,000 annually in providing resources and staff for supporting credit union issues in Washington and in state capitals

11

Our Consumer Brand

The Brand Promise TruStage insurance products empower credit union members to protect the achievements and aspirations of the people who matter most in their lives.

MC-0113-21D9

4 4/16/2014

TruStage Update

• 14,000,000 members currently enrolled in a TruStage insurance program

• CUNA Mutual is now the 3rd largest seller of Direct Life Insurance in the world

• Nearly 10 million members now have access to TruStage.com directly from their credit union’s website

MC-0113-21D9

TruStage Update • Online AD&D enrollment is now available for any credit union on TruStage

• TruStage.com optimized for mobile devices including smartphones and tablets

• TruStage.com is forecast to reach 25% of all traffic by the end of 2013

MC-0113-21D9

TruStage Update • Operating Revenue Growth of 12%

• New Business Growth of 36%

• AD&D Retention over 99%

MC-0113-21D9

5 4/16/2014

TruStage Update • 7x more AD&D business gained than lost

• $200 Million investment in Direct To Consumer (TruStage) over next 5 years

• TruStage Lifetime Income Plan (Single Premium Immediate Annuity) added as new product

MC-0113-21D9

CU Protection and Disaster Recovery

17

CU Protection and Disaster Recovery

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6 4/16/2014

CU Protection and Disaster Recovery

In 2013, when tornadoes struck Oklahoma, our Property & Casualty (P&C) Claims Disaster team was in contact with Tinker FCU in Moore, Okla., within 90 minutes of the tornado’s touchdown. In less than 24 hours, our Claims team was on-site assessing the damage, scheduling debris removal and preparing claims to be paid. This is a typical scenario for our P&C Claims Disaster Team and a telling example of the service we provide our customers in times of need.

19

CU Protection and Disaster Recovery

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CU Protection and Disaster Recovery

Tinker Federal Union was the first financial institution in Oklahoma City to reopen their damaged site - eight months after the tornado struck

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7 4/16/2014

Questions?

CUNA Mutual Group Proprietary Reproduction, Adaptation or Distribution Prohibited © CUNA Mutual Group 2013

Thank You

CUNA Mutual Group Proprietary Reproduction, Adaptation or Distribution Prohibited © CUNA Mutual Group 2013

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