Conference 7.286::dcu

    
    I sent a request for confirmation of the receipt of petitions, and
    confirmation of the meeting date, also stating the assumption that DCU
    was already late in announcing the date, accurding to NCUA's
    interpretation of the bylaws.
    
    I received a reply asserting that NCUA had not interpreted the
    bylaws with regard to the timing of the meeting.
    

    
    I have submitted NO requests of DCU since their BoD-PP was implemented.
    I have no interest whatsoever in paying them more unwarranted fees.
    
    I had requested copies of the auditors notes prior to August 30th but 
    decided to formalize the request with this mail to the BoD.
    
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From:	GUFFAW::GRANSEWICZ   "Phil DTN 264-1680 TTB1-2/B1 pole 2A3" 30-AUG-1991 14:23:59.36
To:	@BOD
CC:	GRANSEWICZ
Subj:	Open access to complete financial statements


	DCU Directors,

	As a member of Digital Employees' Federal Credit Union, I have
	requested copies of the financial reports for DCU (including
	auditors notes) from Harry Goralnick, Director of Finance and
	Operations.  He has stated that it is not within his authority to
	give me copies of the auditors notes.

	The auditors notes are required for DCU members to accurately
	read and interpret DCU's financial statements.  I have personally
	been allowed to go to DCU headquarters to read them and note
	statements and information which are contained within them.  There
	is no information in those notes that could be consider proprietary.
	One note concerning DCU's dealings with Digital was excluded.
	I will trust Harry's judgement on the withholding of this information.

	However, the rest of the information should be readily accessible
	to every DCU member that requests it.  Requiring members to use their
	personal time, and the time of DCU's senior management, to view this
	information is a needless waste of everybody's time.

	DCU has published the auditor's notes to their financial statements
	in the past.  Why has the disclosure of this vital information
	stopped or been severly restricted?  I will conclude this request
	with a quote from Page 13 of the 1984 Annual Report published by DCU.

	"The accompanying notes are an integral part of these financial
	 statements."

	Thank you for your timely response to this request.


	Regards,

	Philip Gransewicz
	DCU member
    
    ----------------------------------------------------------------------
    
    To date I have received no reply to this mail.
    
    
    I also requested copies of the independent auditors reports for the BoD
    elections from 1988-1990.  According to Mary Madden the information was
    gathered and was supposed to be sent out around Sept. 24th.  She then
    started with the "it's under review" song and dance.  Quickly followed
    by the BoD-PP.  They have not released any of this information.
    
    
    I will reiterate what I have said before regarding this policy.  The
    "jusification" they have given to the membership for the imposition of
    this policy is a complete lie and an attempt to paint justified
    requests for information in a negative light, pitting member against
    member (they are costing all of us money).  Whether one or a hundred
    people are requesting this information is irrelevant.  What is relevant
    is whether the people requesting the information have a right to it and
    a reasonable reason for asking for it.  For an institution whose
    policies over the last several years has been to tell members only what
    they think we need to know,  I'm sure these requests for information are
    alarming.  It indicates an interest in the affairs of OUR credit union
    that has not been seen before.  This interest threatens the way in
    which they have become accustomed to doing business.  If DCU isn't
    comfortable with this new found interest of the membership, then we
    need people on the BoD that have a more open way of thinking and
    dealing with the membership.  We aren't stupid.  We can do without the
    marketing B.S. and conclusions made for us.  Give us real facts and
    information and let us make our own decisions based on the
    unadulterated facts.  It's so simple, yet so difficult for the BoD to
    understand.  Guess you either believe in the membership's abilities and
    rights or you don't.
    

    I requested information, but in a more general way.  I asked for some
    specifric information, my letter is posted else where.  It was more of
    a `Why did you...', to which I received a form letter reply.
    
    I did not ask for any more information.  I did get copies of information from
    other people, which saved me from having to ask.  Maybe DCU should give
    it to some of the DCU members so they can distribute it!
    
    	- mark

        I requested specific information, only as a result of their
        "Information Protection Policy". One of the things I requested was
        a copy of the information protection policy itself. Prior to that
        I had not hastled them for anything.
        
        It sounds to me that the "few individuals" were in fact one who
        was getting too close to finding the truth. Keep at it, Phil.

On September 26, I requested the following:


	o  complete annual reports, including the statement of 
	   the auditors, from 1985 through the most recently 
	   completed fiscal year.

	o  a copy of the current charter and bylaws.

	o  all election results from 1985 through the most recent 
	   election, including any statements made by the 
	   independent auditors.

	o  a copy of the Digital Employees Federal Credit Union 
	   bylaw, policy or procedure which requires this written 
	   request.

I got a copy of the infamous Information Protection Policy in 
return.

On October 8, I requested the following information:

	o  copies of the minutes of all Board of Directors 
	   meetings at which the participation loans were
	   discussed. 

	o  a copy of the Attorney Client agreement with Bingham, 
	   Dana and Gould, including, but not limited to, the fee
	   schedule.

	o  copies of the minutes of any meetings with the above 
	   legal firm.

In response I got a bill for $132.

    If everybody chipped in 50� or $1 then we could pay the fee and get the
    info (is that how it really works?) and then make copies for whoever
    wanted it?
    
    
    Chad
    

    
    I, for one, will not pay a penny to DCU for information which it has
    wrongfully withheld from the membership.  I would prefer to focus my
    money on a legal challenge to the BoD-PP in a court of law.  Given what
    has happened at DCU in the past, our "business reasons" and right to
    the information requested is a very easy thing to document.  Their past 
    history of concealment of significant information from the membership
    has been well established.  Add to this the statements made by the BoD
    that were in direct contradiction of what DCU was actually doing at
    the time and I'm sure a judge would have an easy time of it.
    

    Re: .-1

    Then the DCU BoD has won.  I personally will reimburse people (up to a
    total of $50 out of my pocket) to people who want to get DCU
    documentation.  The only requirement is that the documentation has to
    be made freely available.

    I will pay upon my getting a DCU receipt for the charges.  Consider
    this a promissory note.

    RE: .8
    
    I wouldn't say the BoD has won anything.  Their information control
    policy has shown many members what the BoD thinks of their rights as
    members of DCU.  What I was trying to say was that long-term, money 
    spent on establishing our rights to information via court would be less 
    costly and set a precedent.  If we allow ourselves to dance to the BoD
    tune, then when they change the tune (higher fees, lawyers cost thrown
    onto items that they want to make too costly to obtain, etc.), we'd
    better be willing to keep coughing up our money for what we have a
    right to see.
    
    In short, I see playing by these rules as admitting they have the right
    to deny us information.  I have not conceded that point yet.  IMO, your
    $50 is better spent on "DCU Members Vs. DCU BoD".  But again, that's
    just my opinion.

        I suggest both of you hold onto your hard earned money, at least
        until the morning of November 13th (gosh, Friday the 13th falls on
        a Wednesday next month!). Then you may each do as you think
        necessary, depending onthe outcome of the meeting. 
        
        Pooling resources is a good idea thou. One lawsuit on behalf of
        DCU members vs. DCU BoD makes more sense than hundreds of them. Do
        remember, however, that the BoD has the best defensive financial
        law firm in Boston already sitting in their corner, regardless of
        whether they retain their jobs or are removed from office. Also
        realize that according to the DCU ByLaws (Article XIX, Section
        8(a)), that the DCU will be picking up their legal tab, again even
        if removed from office in two weeks.

    They are not actually denying information.  They may be discouraging
    access to that information, but it is available if you pay for it.

    Unless, of course, they don't approve of your business reason.

   I submitted  two  requests  for  information  (back BoD minutes, auditor
   notes  for  the  annual  report  and  1988  election),  and  other  than
   confirming  in  writing  the  fact  of  the  delivery of the petition (I
   personally   observed  Chuck  and  Mark  accepting  the  petitions),  my
   information  request was denied.  They didn't give me an estimate of the
   charge so I take that to mean the request was denied.