20182018Annual ReportAnnual Report

You Serve the Community. We Serve You.

CORPORATE  VISION  

“To  be  the  financial  institution  of  choice  to  employees  in  the  law  enforcement  community,  their  families  and  associates.”  

CORPORATE  MISSION  

“To  be  a  leader  in  providing  a  superior  and  professional  level  of  financial  products  and  services  to  employees  of  the  law  enforcement  community,  their  families  and  associates.”  

CORPORATE  VALUES  

Honesty  and  integrity  Member  focused  Competitive  products  and  superior  service  and  advice  Innovative  spirit  Commitment  to  community  –  police  community  and  credit  union  system  Commitment  to  business  ethics  and  standards  Professional  conduct  in  all  dealings  with  members  and  suppliers  Commitment  to  co-­‐operative  principles    CO-­‐OPERATIVE  PRINCIPLES    Open  and  voluntary  membership  Democratic  member  control  Member  economic  participation    Autonomy  and  independence  Education,  training  and  information    Co-­‐operation  among  co-­‐operatives  Concern  for  Community    

November  28th,  2018  7:00  P.M.    Call  to  order  by  the  President  Establishment  of  a  quorum  Welcoming  of  guests  Tribute  to  deceased  members    Reading  of  the  minutes  of  the  68th  annual  meeting  Business  arising  out  of  the  minutes  Directors  report  (President)    Chief  Executive  Officer’s  report  and  Auditor’s  report  &  financial  statements.  Elections  of  directors  (No  election  incumbents  elected  by  acclamation)  Service  awards  presentation  Appointment  of  auditors  for  2019  Other  business  Adjournment    Winnipeg  Police  Credit  Union  –  Board  of  Directors    Lawrence  Klippenstein,  President  (2019)       Ron  Smolik  (2018)  Gordon  Gold,  Vice  Pres.  (2019)         Fred  Thomas  (2020)  Maurice  Sabourin,  Secretary  (2018)       Cory  Wiles  (2020)  Adam  Cheadle  (2018)           Andrew  Zurawsky  (2020)  Joe  Gallagher  (2019)    Dates  in  brackets  indicate  the  year  in  which  term  of  office  expires.      

Winnipeg  Police  Credit  Union  –  Management  and  Staff    

Management    Cal  Berzuk,  Chief  Executive  Officer  Brandy  Elliott,  FCSI,  CFP,  Chief  Operating  Officer  Heather  Kozubski,  C.I.M.,  C.Mgr.,  FCUIC,  Manager  of  Finance,  Corporate  Governance  and  Human  Resources  Kimberly  Caetano,  Manager,  Member  Relationship  &  Growth    Staff  –  300  William    Shaunna  Asselstine,  Senior  Loan  Administrator    Tyarra  Braun,  Investment  Administrator  Pamela  Carreon,  Financial  Service  Advisor  Kerri  Doepker,  Senior  Member  Service  Representative  Serena  Goebel,  Financial  Advisor  Diane  Hammerling,  Digital  Marketing  and  Member  Communications  Officer  Zaila  Khan,  Senior  Financial  Advisor    Evelyne  Olivier,  Internal  Audit  &  Administration  Officer  Tega  Osivwemu,  Controller    Cory  Papineau,  Wealth  Advisor    Irene  Sallee,  Loan  Administrator  Jill  Sinclair,  Member  Service  Co-­‐ordinator    Katy  Stamm,  Member  Service  Representative    

1

 HQ  Branch  –  230-­‐266  Graham  Ave  Laurissa  Mulvihill,  Financial  Service  Advisor  Quinn  Romaniuk,  Financial  Advisor  Joasia  Tawkin,  Member  Service  Representative          

Annual  Report  –  Inside  Information    

Page  1:    

Winnipeg  Police  Credit  Union  Annual  Meeting  Agenda  November  28th,  2018  7:00  P.M.    Call  to  order  by  the  President  Establishment  of  a  quorum  Welcoming  of  guests  Tribute  to  deceased  members    Reading  of  the  minutes  of  the  68th  annual  meeting  Business  arising  out  of  the  minutes  Directors  report  (President)    Chief  Executive  Officer’s  report  and  Auditor’s  report  &  financial  statements.  Elections  of  directors  (No  election  incumbents  elected  by  acclamation)  Service  awards  presentation  Appointment  of  auditors  for  2019  Other  business  Adjournment    Winnipeg  Police  Credit  Union  –  Board  of  Directors    Lawrence  Klippenstein,  President  (2019)       Ron  Smolik  (2018)  Gordon  Gold,  Vice  Pres.  (2019)         Fred  Thomas  (2020)  Maurice  Sabourin,  Secretary  (2018)       Cory  Wiles  (2020)  Adam  Cheadle  (2018)           Andrew  Zurawsky  (2020)  Joe  Gallagher  (2019)    Dates  in  brackets  indicate  the  year  in  which  term  of  office  expires.      

Winnipeg  Police  Credit  Union  –  Management  and  Staff    Management    Cal  Berzuk,  Chief  Executive  Officer  Brandy  Elliott,  FSCI,  CFP,  Chief  Operating  Officer  Heather  Kozubski,  C.I.M.,  C.Mgr.,  FCUIC,  Manager  of  Finance,  Corporate  Governance  and  Human  Resources  Kimberly  Caetano,  Manager,  Member  Relationship  &  Growth    Staff  –  300  William    Shaunna  Asselstine,  Senior  Loan  Administrator    Tyarra  Braun,  Investment  Administrator  Pamela  Carreon,  Financial  Service  Advisor  Kerri  Doepker,  Senior  Member  Service  Representative  Serena  Goebel,  Financial  Advisor  Diane  Hammerling,  Digital  Marketing  and  Member  Communications  Officer  Zaila  Khan,  Senior  Financial  Advisor    Evelyne  Olivier,  Internal  Audit  &  Administration  Officer  Tega  Osivwenu,  Controller    

BOARD OF DIRECTORS REPORT The 2018 Winnipeg Police Credit Union (WPCU) fiscal year will long be remembered as the year of change in many ways. The most significant change occurred when the full service WPCU HQ Branch at 230–266 Graham Avenue was officially opened for business on March 5th, 2018, becoming the second location for the WPCU, truly a historical moment in the 69 year history of the WPCU. The decision made by the WPCU Board of Directors to pursue a second branch was initiated four years earlier when it was learned the Winnipeg Police Service (WPS) would be moving out of the Public Safety Building (PSB) at 151 Princess Street to a new Headquarters (HQ) location at 245 Smith Street. The WPCU had been situated within a stone’s throw of the PSB for over 25 years for the convenience of its members. Therefore it was felt to be important to have a presence close to the new WPS HQ again in order for the WPCU to remain relevant to the target market, personnel of the WPS. The other changes in the WPCU were in two categories: the administrative changes which happened mostly behind the scene, and those changes that directly impacted members of the WPCU. Changes experienced by members included rising interest rates after over a decade of rates being relegated to the basement; a revised member referral program; a refreshed and vastly improved WPCU website with improved functionality; and a whole new suite of WPCU credit card options, one to suit every member. The WPCU also underwent a major organizational restructuring, in part to accommodate the staffing requirements of the HQ Branch, and on a larger scale, to accommodate the re-alignment of management and staff responsibilities, initiated to improve member services, and focused on delivering those services in the most efficient, effective and desirable way for the members. The reorganization brought about some staff changes and the Board welcomes all the recently hired WPCU staff, and extends congratulations and well wishes for the staff members who retired or moved on to pursue their careers elsewhere. One of the behind-the-scene changes involves an ongoing strategy spearheaded by the CEO to evaluate the operating expenses of the WPCU. The operating expenses are continuously reviewed by management and staff with the view to reducing them. The resulting reductions in operating costs in 2018 added a very significant dollar amount to the bottom line, and helped record a net profit well beyond the projections in the operating budget. The success of this strategy was delivered simultaneously with the increasing operating expenses being incurred from the new branch. The Board of Directors’ ongoing training program changed as well, with all training modules now being available online. The Board again reviewed the WPCU Strategic and Operational Plans with a view to remaining current in the delivery of all services and products to the members. From the Board’s perspective, the WPCU 2018 fiscal year was a successful year, which reflects the high level of satisfaction members have with the products, services and financial advice they receive from the credit union. The loyalty of members, along with their referrals of family, friends and law enforcement associates to the credit union are vital to the continuation of that success. The Board of Directors extends their gratitude to the WPCU management and staff for their excellent service to the membership. And most importantly, the Board of Directors thanks you, the members, for your continued confidence and support of the WPCU. Lawrence Klippenstein President Gordon Gold, Vice President Maurice Sabourin, Secretary Adam Cheadle, Director Ron Smolik, Director Joe Gallagher, Director Cory Wiles, Director Fred Thomas, Director Andrew Zurawsky, Director

2

3

Chief Executive Officer’s Report

I am pleased to report that the Winnipeg Police Credit Union (WPCU) had a very successful year overall, with growth in several areas. Although the credit union faced many challenges with a record number of major projects, management and staff worked together and delivered on all fronts.

In addition to opening a second location, WPCU launched a new online banking platform, complete with a mobile banking app, as well as an all new website. These updated technology platforms will not only provide enhanced security for members but allow the latest in mobile banking convenience that is ever so important in today’s fast paced society. The new Collabria/WPCU branded MasterCard and VISA cards have been a huge success with members. WPCU’s comprehensive suite of credit cards now offers one of the top reward and value combinations in the industry.

Financially, WPCU enjoyed a record year for profitability and improved on its already strong equity position. Highlights of the year include:

• Total assets increased by $4.4 million to $196 million (2.28% growth) • Member loans increased by $5.5 million to $167.6 million (3.39% growth) • Member deposits increased by $3.6 million to 182.7million (2.0% growth) • The credit union’s equity position increased to $12.5 million, or 6.38% of total assets.

WPCU looks toward 2019 to build on its already industry leading member satisfaction experience. The WPCU is very proud of the service we provide and recognize that members have the choice of where they do their banking. Management and staff are hopeful that members will continue to not only enjoy the full extent of this service but also refer their friends and family to WPCU as well.

At the heart of this success is the dedicated and talented staff of WPCU that worked tirelessly throughout the year to adapt to a historical amount of change.

In closing, I would like to thank the dedicated Board of Directors for their hard work and leadership, and mostly, you, our members, for your continued loyalty. It is our pleasure to serve you.

Sincerely,

Cal Berzuk, CEO

4

A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca.

1

Independent Auditors' Report

To the Members of Winnipeg Police Credit Union Limited:

The accompanying summary financial statements, which comprise the summary statement of financial position as at September 30, 2018, and the summary statement of comprehensive income for the year then ended are derived from the audited financial statements of Winnipeg Police Credit Union Limited for the year ended September 30, 2018. We expressed an unmodified audit opinion on those financial statements in our report dated November 13, 2018.

The summary financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Winnipeg Police Credit Union Limited.

Management’s Responsibility for the Summary Financial Statements

Management is responsible for the preparation of the summary financial statements on the basis described in Note 1 to the summary financial statements.

Auditors' Responsibility

Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements”.

Opinion

In our opinion, the summary financial statements derived from the audited financial statements of Winnipeg Police Credit Union Limited for the year ended September 30, 2018 are a fair summary of those financial statements, on the basis described in Note 1 to the summary financial statements.

Winnipeg, Manitoba

November 13, 2018 Chartered Professional Accountants

5

Winnipeg Police Credit Union LimitedSummary Statement of Financial Position

As at September 30, 2018

A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca.

2

2018 2017Assets

Funds on hand and on deposit 3,910,915 7,314,980

Investments 16,936,388 20,416,619

Members' loans 172,896,522 162,108,702

Prepaid expenses and deposits 202,974 153,623

Income taxes recoverable - 1,106

Property, equipment and intangible assets 2,448,161 2,012,756

196,394,960 192,007,786Liabilities

Members' savings and deposits 182,740,416 179,158,243

Income taxes payable 48,836 -

Accounts payable 1,052,093 765,813

Deferred taxes 64,976 65,419

183,906,321 179,989,475Members' equity

Members' shares 1,961,640 1,985,009

Retained surplus 10,526,999 10,033,302

12,488,639 12,018,311

196,394,960 192,007,786

Approved on behalf of the Board

signed “Gordon Gold”, Director

signed "Maurice Sabourin", Director

6

Winnipeg Police Credit Union LimitedSummary Statement of Comprehensive Income

For the Year Ended September 30, 2018

A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca.

3

2018 2017

Financial incomeInterest from members' loans 5,283,299 5,137,740Investment income 633,457 448,584

5,916,756 5,586,324

Cost of funds 3,223,697 2,950,390

Financial margin 2,693,059 2,635,934

Operating expensesAdministration 571,732 601,588Member security 175,840 167,113Occupancy 414,682 339,757Organizational 99,319 92,567Personnel 1,468,463 1,575,565

Gross operating expenses 2,730,036 2,776,590

Other revenue (628,084) (629,847)

Net operating expenses 2,102,952 2,146,743

Income from operations before provision for loan losses, patronage refund and income taxes 591,107 489,191Provision (recovery) for loan losses (46,633) 14,608

Income before patronage refund and income taxes 637,740 474,583Patronage refund 57,000 115,000

Income before provision for income taxes 580,244 359,583Provision for income taxes

Current 87,486 38,894Deferred (443) (496)

Provision for income taxes 87,043 38,398

Income and comprehensive income for the year 493,697 321,185

7

Winnipeg Police Credit Union LimitedNotes to the Summary Financial Statements

For the Year Ended September 30, 2018

A copy of the complete financial statements including significant accounting policies and other explanatory information is available from the credit union or at www.wpcu.ca.

4

1. Basis of the summary financial statements

Management has prepared the summary financial statements from the Credit Union’s September 30, 2018 audited financial statements which can be obtained at the Credit Union. The detailed notes included in the audited financial statements are not included in these summary financial statements.

2. Compliance with minimum capital and liquidity requirements

The Credit Union is in compliance with the capital and liquidity reserve requirements at September 30, 2018 established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba.

Readers of the summary financial statements are advised that in order to appropriately interpret the Credit Union’s capital and liquidity, the reader must refer to the audited financial statements and notes for the year ended September 30, 2018,which contain the information detailing the calculation.

8

Notes

In  Memoriam    

Evelyn  Bell  Jake  Bowbrick    Roy  Buchanan  David  Chalmers  Nancy  Cooper  Larry  Curtain    Joy  Dowhy  Steve  Dzikoski  Theodor  Felbel  Patrick  Gilbertson  Nancy  Hall  Margetta  Ham  George  Henderson  Theresa  Highet  Ronald  Hoglund  Eugenie  Hryshko  Anna  Klassen  Roger  Lapointe  Theresa  Lusty    Cora  Macpherson  Veerbala  Maniar  Mary  Marlow  Thomas  Marshall    Susan  McCaskill  Donald  McCaskill  Donald  Morrison  Janet  Oliver  Hattie  Pearson  Karen  Qua  Ella  Ramsay  Otto  Wai-­‐Lun  So  Walter  Stackiw  Joanne  Tinsley    Edgar  Valencia  Joan  Verhoeven  Lillian  Williams  Kenneth  Williams    

300 William Avenue, Winnipeg, Manitoba R3A 1P9

HQ Branch230-266 Graham Avenue (Skywalk)

Winnipeg, Manitoba R3C 0J8

www.wpcu.ca

You Serve the Community. We Serve You.