grenada teachers co-operative credit union annual report 2014
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Value Translation Team work - Let us work together
Honesty - Tell me what you really think
Risk Taking - Nothing ventured – nothing gained
Continuous Improvement - We are always looking to do things better
Pride - We are proud of our successes
Service - Giving our members what they need
Environment - We take it seriously
VisionTo be the financial institution of choice for members.
Mission StatementTo provide the best possible service to members while meeting their primary financial
needs as measured by achieving the highest standards in benefits and membership
satisfaction.
Core Values Commitment and Teamwork
Honesty and Integrity
An environment where innovation is encouraged and recognized
A commitment to continuously doing things better
Taking pride in outstanding performance
Provide first class service to our members
Fulfilment of our responsibility to the environment in which we operate
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Annual Report 2014
Table of Contents
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Page 04
Page 05
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Page 16
Page 24
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Page 35
Page 41
Page 69
Page 70
Page 71
Corporate Information
Notice of 31st Annual General Meeting
Standing Orders
Agenda 31st Annual General Meeting
President’s Message
Minutes of the 30th Annual General Meeting
Board of Directors’ Report
Credit Committee’s Report
Supervisory and Compliance Committee’s Report
Treasurer’s Report
Auditor’s Report
Resolutions
Terms of Office
Member Bill of Rights
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Annual Report 2014
Main OfficeCnr. Grenville & St. John’s Streets
St. George’s, Grenada, West Indies
P.O. Box 2040
Telephone: (473) 440-1354
Fax: (473) 435-6950
E-mail: [email protected]
Website: www.gutcu.com
Grenville BranchBen Jones Street
Grenville, St. Andrew’s
Phone: (473) 438-3526
Fax: (473) 438-4814
Grand Anse BranchLe Marquis Complex
Grand Anse, St. George’s
Phone/Fax: (473) 439-7228
Sub-OfficesVictoriaQueen Street
Victoria, St. Mark’s
Phone/Fax: (473) 437-1502
CarriacouMain Street, Hillsborough, Carriacou
Phone/Fax: (473) 443-7676
AuditorsPannell Kerr Forster
BankersGrenada Co-operative Bank
Republic Bank
RBTT
Solicitors/Attorneys Alban John
Scott Street, St. George’s
Lindo & Co.
Hillsborough Street, St. George’s
Executive OfficersPresidentKim Parris (Ms.)
Vice PresidentCarl Andall (Mr.)
SecretaryEgbert La Geer (Mr.)
Assistant SecretaryDavid Thomas (Mr.)
TreasurerDecima Blake-Thomas (Mrs.)
Assistant TreasurerAndre Martin (Mr.)
ManagementGeneral ManagerSamuel Britton (Mr.)
Deputy General Manager Retesha Smith-Boyd (Mrs.)
Financial ManagerDamani Brizan (Mr.)
Operations ManagerPaula Mc Meo (Ms.)
Loans ManagerNicole Roberts (Ms.)
Communication/Marketing ManagerCamille Goddard (Mrs.)
Manager - Grenville BranchAlice Mc Queen (Ms.)
Manager – Grand Anse BranchMatonia Cox-Munroe (Mrs.)
CorporateInformation
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Annual Report 2014
Notice of 31stAnnual General Meeting
TO: All Members of the G.U.T. Co-operative Credit Union Ltd.
FROM: Secretary: G.U.T. Co-operative Credit Union Ltd.
SUBJECT: 31st Annual General Meeting
DATE: 25th March, 2015
Fellow Members,
In compliance with Article 42 (1) of the Co-operative Societies Act 2011, notice is hereby given that
the 31st Annual General Meeting of the G.U.T. Co-operative Credit Union Limited will be held at the
St. Rose Modern Secondary School, St. John’s. The meeting will commence at 10:00 a.m. Thursday 9th
April, 2015 for the following purposes:
To receive the Report of the Board of Directors and other Committees for 2014
To receive the Audit Financial Report for 2014
To elect members to the Board of Directors and other Committees
To discuss and approve the Budget for 2015
Toappointauditorsandfixtheirremuneration.
To take action on such matters as may come before the 31st Annual General Meeting.
All members are invited to attend.
Yours sincerely,
Egbert La Geer
Secretary
Board of Directors
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Annual Report 2014
StandingOrders
1. (a) A member shall stand when addressing the Chair
(b) Speeches shall be clear and relevant to the subject before the meeting
2. A member shall only address the meeting when called upon by the Chair to do so, after which he/she
shall immediately take his/her seat.
3. NomembershalladdressthemeetingexceptthroughtheChair.
4. Amembershallnotspeaktwiceonthesamesubjectexcept:
(a) The mover of a motion who has a right to reply
(b)He/sherisestoobjecttoortoexplain(withpermissionoftheChair)
5. No speeches shall be made after the question has been put and carried or negated.
6. The mover of a procedural motion (adjournments, postponement, lay on table) shall have no right of
reply.
7. A member rising on a point of order shall state the point clearly and concisely. A point of order must
have relevance to the Standing Orders.
8. (a) A member shall not call another member to order but may draw the attention of the Chair to a
‘Breach of Order’
(b) In no event can a member call the Chair ‘to order’
9. A question should not be put to vote if a member desires to speak on it or move an amendment to
it–exceptthata“ProceduralMotion”,“thePreviousQuestion”,“Proceedtothenextbusiness”orthe
closure“Thatthequestionbeputnow”,maybemovedatanytime.
10. Only one amendment shall be before the meeting at one and the same time.
11. When a motion is withdrawn, any amendment to it fails.
12. TheChairshallhave,inadditiontohisordinaryvote,a“castingvote”inthecaseofequalityvotes.
13. Ifthereisanequalityofvotesonanamendment,andiftheChairdoesnotexercisehiscastingvote,the
amendment is lost.
14. TheChairshallmakeprovisionsfortheprotectionofmembersfromvilification(personalabuse).
15. NomembershallimputeimpropermotivesagainsttheChair,BoardofDirectors,Officers,oranyother
member.
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Annual Report 2014
Opening SessionCall to order
Invocation
Silent Tribute
Greetings from Sister Organisations
Remarks - President
- GCLL
- GARFIN
Business Session Ascertainment of a Quorum
Minutes of the last Annual General Meeting
Reports: Adoption and Discussion
- Board of Directors
- Credit Committee
- Supervisory and Compliance Committee
- Financial
i. Auditor’s
ii. Treasurer’s
iii. Budget
Nominating Committee’s Report and Elections Resolutions General Business Conclusion
31st Annual General Meeting Agenda
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Annual Report 2014
Fellow Members,
Aswereflectontheyear2014indicationsarethatwehave
experiencedsuccessesandchallengesalongtheway.Despite
the challenges, your management committees along with the
staff of G.U.T. Cooperative Credit Union were able to realize
accomplishmentsofwhichwearesatisfied.Theyear2014saw
the completion of the Strategic Plan which is the navigation tool
used to chart the way forward for our credit union, the hosting
ofourinauguralSecondarySchoolFinancialLiteracyQuiz,the
employmentofadditionalstaffandoverallsignificantgrowth.
Despite the gloomy economic conditions in which we operate,
we were able to realize growth in a number of areas. There was
a 14.13% growth in Total Assets, Equity shares grew by 12.36%,
Savings grew by 14.53 %, Loans grew by 10.71%, Membership
grew by 7.87%, Income grew by 7.43%, and there was an increase
of 47.84 % in surplus over 2013.
As we look toward the horizon, additional challenges are imminent
aswearebeingcalledupontoplayourpartinsharedsacrifice
and nation building. Consequently, it’s a time when we are
each being asked to claim GUTCCU as My Credit Union (I
am a member), to understand that it’s local (home grown), it’s
trusted(thecontinuedconfidenceIhaveplacedinthecredit
union over the years)and it’s making a difference (contribution
toward nation building, empowering the nation’s youth as well
as its members).
During the year under review we were able to host a number
of activities for our youth as well as organize empowerment
sessions for members willing to serve on various committees.
This initiative was undertaken to ensure that a pool of trained
members are readily available to serve on the various committees
whenever the need arises.
As we chart the way forward I implore all members to focus
on our watch words or theme for the year 2015, ‘My Credit
Union! Local, Trusted, Making a difference.’ You are urged to take
pride in your credit union, promote its products and services
to non- members, give of your time where necessary, play your
parttoreducedelinquency,utilizeasthefinancialinstitutionof
choice, and contribute to the success of this noble institution.
Indeed, this can only be achieved if we each remain committed
to the survival of our credit union. Your Board of Directors and
Management staff remain committed to working with Grenada
Authority for the Regulation of Financial Institutions (GARFIN)
and the recommendations put forward by the Supervisory
and Compliance Committee to ensure compliance is upheld.
The opportunity to serve as president of this noble institution
wasindeedarewardingexperience.Iwishtothankallmy
fellow Directors, members of the Supervisory and Compliance
Committee, Credit Committee, the Manager and staff, and
the general membership for your support and cooperation.
Let us all continue to cherish our credit union as the place
where we all belong.
Best wishes for a productive 2015 and beyond.
Yours Co-operatively,
Kim Parris (Ms.)
President
President’s
Message
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Annual Report 2014
1. Call to Order
1.1 Atapproximately10:25a.m.themeetingwascalled
to order by the chairperson, Ms. Elizabeth Peters,
who apologized for the delayed start which was due
totechnicaldifficultieswiththeP.A.system.
2. Prayers, National Anthem and Silence
2.1 Prayers were led by Ms. Marjorie Thomas, a member
of the Board of Directors. The Credit Union Prayer
was also recited. The National Anthem was then sung,
followed by a minute’s silence that was observed for
the deceased members.
3. Opening Remarks
3.1 The Chairperson, Ms. Elizabeth Peters, welcomed
everyone present including the President of the
Caribbean Confederation of Credit Unions (CCCU),
Mr. Aaron Moses; the President of the Grenada Co-
operative Credit Union League, Mr. Leroy Cadet; and
Mr. Alister Phillip, representative from GARFIN. She
stated that she was very happy to see the members
present, and reminded members that the Credit
Union’s business is their business.
3.2 Fraternalgreetingswereextendedonthebehalfof
the Communal Co-operative Credit Union which
congratulated the G.U.T. Co-operative Credit Union
on its 30th Annual General Meeting. Reference was
made to the theme, emphasizing the importance
of innovation in management for development in
these challenging economic times.
4. President’s Remarks
4.1 In her remarks, the President, Ms. Florina Thomas,
stated that she was pleased to address the 30th
Annual General Meeting of the G.U.T. Co-operative
Credit Union.
4.2 She made reference to the challenging times and the
financialcrisisthatourcountryisstillexperiencing.
She referred to the low room occupancy rate
in the hotel industry, the closing of branches of
commercial banks, reduced remittances from
relatives overseas and foreign investment in the
country, the last not being a reality.
4.3 Ms. Thomas stated that the implementation of the
three-year home-grown Structural Adjustment
Programme(SAP),tocombatthenationalfinancial
problems has negatively impacted on our members
throughtheintroductionofIncomeTax;increase
inpropertyandlandtaxes;andothertaxes.
4.4 ThePresidentreferredtothetheme,“Facing
ChallengingTimeswithInnovationandEnterprise,”
assheurgedmemberstoreflectonthegrowth
of the G.U.T. Co-operative Credit Union and to
continue to support the credit union, since it is a
soundfinancialco-operative.
Minutes of the 30th Annual General Meeting of the Grenada Union of Teachers’ Co-operative Credit Union Held at the St. Andrew’s Anglican Secondary School on the 23rd April, 2014
1.
2.
3.
4.
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Annual Report 2014
4.5 Reference was made to the Asset value of over one
hundred and one million dollars ($101,000,000.00)
- Income of seven point eight million dollars ($7.8m),
theLoansportfolioofseventyfivepointfourmillion
dollars($75.4m),Savingsofeightyfourpointsix
million dollars ($84.6m);and a membership of eight
thousandsixhundredandseventythree(8,673).
She further emphasized that this could only have
beenasaresultofsoundfinancialmanagementand
the vision of the Management of the credit union.
4.6 In looking forward, Ms. Thomas stated that a Small
Business Unit would be established; mortgage
interest rate lowered by 1%; and debt consolidation
on loans as initiatives geared towards increasing
the disposable income of members.
4.7 The President alluded to the aborting of plans
for Nishe Debit Card due to the reluctance and
tardiness of the other credit unions that were
on board with the venture. She however stated
that the Board of Directors will pursue other
avenues to make the Debit Card, ATM machines
and Internet Banking a reality for our members.
4.8 The President informed members that the
continuity of the credit union is important, hence
the continuation of the youth programmes like
the Financial Literacy Seminars; Smart Savers
accounts; the TAMCC Scholarship Fund; and the
Secondary Schools Junior Financial Co-operative.
Further to this, an audit of the Management Staff
and volunteers would be undertaken; training and
education programs would be introduced so as
to increase the capacity of staff and volunteers.
4.9 ThePresidentfinallytooktheopportunitytothank
the members of the Board of Directors; Credit
and Supervisory Committees; staff; and members
for their support during the time she served on
the Board.
5. Address: Grenada Co-operative League
5.1 Mr. Leroy Cadet, President of the Grenada Co-
operativeLeagueLimitedextendedgreetingsfrom
the League to the members of the G.U.T. Co-operative
Credit Union. He stated that he was honoured to
address the gathering and to bring greetings from
the Grenada Co-operative League and the Grenville
Co-operative Credit Union.
5.2 He congratulated the Credit Union on the hosting of
its 30th Annual General Meeting. He commended
the Credit Union on the choice of the theme in these
trying economic times.
He further applauded the credit union on its growth in
savings, loans, income, equity, assets and membership.
He went on to highlight the high level of attendance
of members of the Board of Directors to meetings
andthatthisreflectedtheirstrongcommitmentto
the credit union.
5.3 He further urged the Management of the credit union
to continue to use co-operation for the growth of the
credit union movement in Grenada. He admonished
members to continue to support the plans of the
G.U.T. Co-operation.
5.4 Mr. Cadet applauded the Credit Union for its
continuedsupporttotheLeague.Heexpressedhis
gratitude to the members of the G.U.T. Co-operative
Credit Union who are on the Board of the League,
for their support and service to the League.
6. Remarks: Caribbean Confederation of Credit Unions (CCCU)
6.1 Mr. Aaron Moses, the President of CCCU, brought
greetings from the 353 credit unions across
seventeen (17) Caribbean countries with 2.1 million
members.
5.
6.
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Annual Report 2014
6.2 He stated that it was quite pleasurable to
congratulate a successful credit union on its
successes over the past year. He further stated
that the G.U.T. Co-operative Credit Union is one
of the ‘Bright Stars’ within the credit union family
across the Caribbean.
6.3 He went further to recognize the ‘sterling work’ of
the Board of Directors for the continued successes
of the credit union.
6.4 He went on to say that in these challenging times
the credit union movement is a ‘unique organization’.
He referred to the core values and the philosophy of
thecreditunionashereflectedonthecontributions
that credit unions are making to the socio-economic
stability of members.
6.5 Additionally, he stated that credit unions are
institutionsthatprovidefinancialservicestothe
poor, disadvantaged and indigent. He went on to
mention that credit unions are the second largest
mobilizer of savings within the community and
that they assist all people in the creation of assets
through the coming together if its members in
groups and pooling their resources, thus allowing
small people to become credit worthy.
6.6 Finally, he urged members to defend the core values
and the philosophy of the credit union movement.
7. Remarks: GARFIN
7.1 Mr. Alister Phillip addressed the AGM on behalf
of GARFIN. He stated that it was his honour and
pleasure to bring greetings from the management
and staff of GARFIN to the G.U.T. Co-operative
Credit Union on hosting its 30th AGM.
7.2 He stated that the 30th AGM is a significant
milestone in the history of the credit union. He
went on to commend the credit union on this and
all other achievements and he emphasized that
the credit union is a successful and sustainable
business model for the future.
7.3 He went on to state that GARFIN has developed
its own regulatory framework with common
and effective tools and powers to tackle crises
preemptively, safeguarding national stability and
minimizingmemberexposurethroughlosses.
7.4 The framework consists of three main pillars:
Preparatory and Preventative
Early Intervention Measures
Resolution Tools and Powers
These measures are aimed at preserving national
stabilitybyprotectingpublicandmarketconfidence,
puttingpreventionandpreparationfirst,providing
creditable resolution tools, enabling fast and
decisive actions, reducing moral hazards and
minimizingtothefullestextentpossibletheoverall
cost to our members.
7.5 In closing, he alluded to the healthy relationship
between GARFIN and the G.U.T. Co-operative
Credit Union and he admonished Management
to focus on members’ best interests while
providing innovative products and services. He
finallycommendedmanagementandstafffortheir
commitment and strong leadership.
8. Vote of Thanks
8.1 Ms.KimParrisexpressedappreciationonthe
behalf of the G.U.T. Co-operative Credit Union to
all who made contributions to the formal opening.
7.
8.
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Annual Report 2014
8.2 ProfoundthankswereextendedtoMr.AaronMoses,
President of CCCU, for his insightful remarks. She
made reference to the admonishing words he
expounded,asheurgedmemberstoremember,
‘who we are and what we do’, as he reminded
members of the core values of the credit union.
8.3 GratitudewasalsoexpressedtoMr.AlisterPhillip,
for highlighting the achievements of the credit union
thus far, and for underscoring the importance of
adhering to regulations and advising the credit
union on the regulatory framework toolkit for crisis
management.
8.4 ThankswerealsoexpressedtoMr.LeroyCadetfor
his invaluable remarks that he shared today, and
fortheimportantwords,“saveregularly,borrow
wiselyandrepaypromptly”.
8.5 ThankyouwasalsoexpressedtothePresident,Ms.
Florina Thomas, for her inspiring and informative
remarksandforprovidinganin-depthexplanation
ofthefinancialenvironmentinwhichweoperate;
and for insight into the plans for the future.
8.6 GratitudewasalsoexpressedtoMs.Marjorie
Thomas, for invoking the presence of God; to
Ms. Akesha Ettienne for leading the National
Anthem; and to Ms. Elizabeth Peters for chairing
the morning’s proceedings.
8.7 The morning’s proceedings ended at 12:30 p.m.
9. Business Session
9.1 In accordance with the Section 40:1d of the
Bye-Laws of the Grenada Union of Teachers
Co-operative Credit Union, a quorum must be
ascertained before the business could proceed.
Based on the membership, the quorum should
be 300 persons. There were fewer than 300
persons present, and therefore permission had
to be sought from the Registrar of Co-operatives
(GARFIN), to conduct the meeting. Permission
was granted and the meeting duly proceeded.
9.2 ThefirstpartoftheBusinessSessioncommenced
at12:32p.m.Thisfirstpartwastoreceivethe
Auditors’ Report, and the Audited Statements.
10. Adoption of the Standing Orders
10.1 A motion for the adoption of the Standing Orders
for the Annual General Meeting was moved by
Ms. Janis Henry and seconded by Ms. Imogene
Howard. The motion carried.
11. Reports
11.1 A motion for the adoption of all reports was
moved by Ms. Magdalene Carmichael and was
seconded by Ms. Dulice Williams.
11.2 THE AUDITOR’S REPORT
(a) This report was presented by Mr. Khalil
Steele, a member of Pannell-Kerr Foster
(PKF)accountingfirm.Inhisreport,he
highlighted and gave an overview of the
auditors’ responsibilities in conducting
the audit. He further gave an overview
of the procedures that were employed.
These procedures were deemed to be in
accordance with International Standards.
11.3 THE AUDITED STATEMENT
(a) The Statement of Financial position as at
31st December 2013 was presented by the
Accountant, Mr. Damani Brizan.
9.
10.
11.
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Annual Report 2014
(b) In his presentation, he highlighted the following:
The total Earning Assets
($90,174,177.00)
Non-Earning Assets ($6,959,321.00)
Total Assets ($101,718,771.00)
Institutional capital ($11,627,457.00)
Funds and Reserves ($4,607,699.00)
Total Members’ Equity
($16,235,156.00)
Total Liabilities ($85,483,615)
(c) In the Statement of Comprehensive Income
the following were highlighted:
Net interest income and other income
($4,495,351.00)
GeneralandAdministrativeExpenses
($3,630,293.00)
Net Operating Surplus before
appropriation ($865,058)
Transfer to Reserve and Development
Funds ($216,265.00)
Net Surplus for the year ($648,793.00)
Total Comprehensive Income
($688,793.00)
11.4 Clarificationsweresoughtbymembersonthe
following:
The composition of Available for Sale
FinancialAssets.Theexplanationwason
page 56 of the AGM booklet, Note 6.
The policy on revaluation of investment
property. It was noted that the IAS-40
policy is followed where annual
revaluation is done.
12. Business Session
12.1 After the lunch break, the business session resumed
at 2:09 p.m. The presence of the members from
Carriacou was acknowledged by the President.
13. Minutes of the 30th Annual General Meeting
13.1 A motion that the minutes of the 30th Annual
General Meeting be taken as read was moved by
Ms. Judy Lewis-Joseph and was seconded by Ms.
Janis Henry. The motion carried.
14. Corrections and Omissions
14.1 In paragraph 23.3, the word ‘wereas’ should be
corrected to read ‘whereas’.
15. Confirmation of the Minutes
15.1 Amotionfortheconfirmationoftheminuteswas
moved by Ms. Glenis Belfon and was seconded
by Mr. Randy Boyke Cadet. The motion carried.
16. Matters Arising
16.1 Onememberexpressedconcernovertheabsence
of a quorum for the meeting. In response the
President told the meeting that the AGM was
advertised on radio and television, members were
senttextmessagesandthebookletsweredelivered
on time. She further stated that members need
to see it as their responsibility to attend meetings,
since the Board of Directors has done all in its
powers to inform members of the meeting.
13.
14.
15.
16.
12.
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Annual Report 2014
16.2 Another member asked for an update on the Nishe
Debit Card. The Manager in responding informed
the meeting that the idea was aborted. This was
as a result of the fact that two of the four credit
unions pulled out from plans. The plans for that
Debit Card are no more. However, the G.U.T. Credit
Unionwillbeexploringnewwaysofmakingthe
Debit Card a reality to our members.
16.3 A member questioned as to why the AGM booklet
was not sent to members in PDF format. The
meeting was informed that it was a suggestion
from last year, and that should be put forward in
a resolution. A vote was taken on the idea, and
the majority voted in favour of sending the AGM
booklets in PDF format online to members.
16.4 One member enquired as to whether the idea of
findinginsurancebesidesCUNAtoinsuremembers’
loans was feasible. The meeting was informed that
the Board is still looking at that possibility, so as to
get the best bargain for our members.
17. Board of Directors Report
17.1 The President, Ms. Florina Thomas tabled this
report.
17.2 Alistingoftheexecutiveandothermembersof
the Board of Directors and heads of the ad hoc
committees was presented.
17.3 The following were highlighted in the report:
Afinancialcomparisonofthedevelopment
of the G.U.T. Co-operative Credit Union
from 2009- 2013.
Major activities that were undertaken
during 2013.
Developmentsatthevarioussuboffices.
Delinquency rating.
Contributions and donations.
Attendances at board meetings.
Plans for 2014.
17.4 A member enquired as to the cost for implementing
components of the Strategic Plan. The meeting
was informed that the budget for 2014 is guided
bytheStrategicPlanandthatitisareflectionof
what is intended to be done during 2014.
17.5 One member enquired as to what method is used
to choose persons to attend training and seminars.
The meeting was informed that persons are chosen
dependent upon the topics that are dealt with at
the different sessions as it relates to their area of
responsibility.
17.6 Another member asked about the criteria which
are used to choose students for the TAMCC
Scholarship Award. The President informed the
meeting that it was advertised and persons applied
for the scholarship. Further to this, students and
parents were interviewed to determine the level
of need.
17.7 A member asked about the performance of the
TAMCC Scholarship Awardees. The meeting was
informed that the recipients were asked to submit
reports of their performance to the credit union.
Excellentperformerswouldhavethepossibility
of a second year award.
17.8 Another member inquired as to what would be
done with the building which housed the former
Tivoli Credit Union. The meeting was informed
that it would be put for rent or for sale.
17.9 A member of the Carriacou delegation asked about
training for the young calypsonians in Carriacou.
17.
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Annual Report 2014
The President told the meeting that serious
consideration would be given to this in the very
near future.
18. Credit Committee Report
18.1 This report was tabled by Ms. Retesha Smith-Boyd.
18.2 The following were the main points of the report:
A record of member’s attendance
A review of the Credit Committee’s work
A breakdown of the loans granted
according to purpose, value, by age and
gender.
Observations in relation to applications
for loans.
ExpressionofgratitudetotheBoardof
Directors, Supervisory and Compliance
Committee, Manager and Staff and
members of the Credit Committee for
their support and assistance throughout
the year.
18.3 One member suggested that members should
be encouraged to take loans for more productive
purposes, and that the interest rate for such loans
should be attractive.
19. Supervisory and Compliance Committee Report
19.1 This report was tabled by Mr. Abel Newton,
chairperson of the committee.
19.2 This report highlighted the following:
The composition of the committee.
Methods of operation.
Schedule of work
A review of Share Capital, Delinquency
Control, Institutional Capital, Key
performance indicators, Large Loans/
Investments, Internal Controls, and
Board, committee and Staff Members
Accounts.
Visitstooffices.
Expressionofgratitudeforthesupport
it received from the Board, Credit
Committee and Management and Staff
of the credit union.
20. Treasurer’s Report
20.1 This report was presented by the Treasurer, Ms.
Joslyn Augustus-LaTouche.
20.2 In the report she highlighted the following:
Anoverviewofthefinancialperformance
for 2013.
Incomeandexpenditureinrelationto
the 2013 budget.
Performance in relation to Assets,
Loans,Deposits,CapitalandExternal
Credit.
Actual performance in relation to the
PEARLS RATIO.
20.3 The Budget for 2014 was presented by the Manager,
Mr. Samuel Britton. He highlighted the following.
An Income of eight million, four hundred
twentyfourthousand,sixhundredand
seventysixdollars($8,424,676.00)was
projected.
18.
19.
20.
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Annual Report 2014
AprojectedExpenditureofseven
million,fivehundredfiftysixthousand,
four hundred and thirteen dollars
($7,556,413.00).
The projected Surplus was eight
hundredsixtyeightthousandtwo
hundredsixtythreedollars($868,
263.00).
BriefnotesfortheExpenditureitems
were also listed.
20.4 A motion for the adoption of the Budget for 2014
was moved by Ms. Imogene Howard and was
seconded by Ms. Marjorie Thomas.
20.5 The vote for the adoption of the 2014 Budget
was unanimous.
21. Nominating Committee’s Report
21.1 This report was tabled by Mr. Carl Andall, Head of
that Committee. The composition of the committee
was:
Mr. Carl Andall
- Board of Director - Chairperson
Mr.JamesAlexander
- G.U.T. Co-op Credit Union - Member
Mrs. Angela Pierre
- G.U.T. Co-op Credit Union – Member
21.2 Nominations were sought from the general
membership through advertisements in the
weekly newspapers and on the radio stations.
Nine nominations were received to serve in the
following areas:
Supervisory and Compliance
Committee - 2 persons
Board of Directors - 7 persons
21.3 Based on the established criteria, the following
persons were recommended:
Mr. Miguel A. Fortune
- St. Andrew - Board of Directors
Mr. Edison Francis
- St. David - Board of Directors
Mr. Andre Martin
- St. Mark - Board of Directors
Ms. Sobrina La Rose
- Supervisory and Compliance Committee
Ms. Lu-Melina Fortune
- Supervisory and Compliance Committee
Mr. Kelley Calliste
- Credit Committee
21.4 Therewerenonominationsfromthefloor.The
meeting agreed that the recommended persons
will form the Board of Directors, Credit and
Supervisory and Compliance Committees for
the recommended period of time.
22. Resolutions
22.1 The following resolutions were presented by the
Manager, Mr. Samuel Britton for approval by the
AGM.
22.2 Whereas as the Bye Laws, Article XI section 37 (2)
(h), mandate that the Budget should be approved
by the Annual General Meeting:
And whereas the Budget for 2014 is presented
to this Annual General Meeting;
Be it resolved that the Budget as presented be
approved by the Annual General Meeting.
21.
22.
15
Annual Report 2014
A vote for the approval of the Budget was taken. Members unanimously voted in favour of its approval.
22.3 Whereas the Bye Laws, Article XI section 37 (2)
(m), stipulates that the Annual General Meeting
mustsetthemaximumborrowinglimitforthe
Credit Union.
Beitresolvedthatthemaximumborrowinglimit
for the Credit Union for 2014 be $3,000,000.00.
Members voted unanimously in favour of the borrowing limit.
22.4 Whereas the Accounting Firm Pannell Kerr Foster
(PKF) continues to provide satisfactory service
to the G.U.T. Co-operative Credit Union as its
auditors;
Be it resolved that PKF be reappointed as the
auditors of the G.U.T. Co-operative Credit Union
for 2014.
ThisresolutionwassecondedbyMr.AugustineVesprey.
Unanimoussupportwasgiventothisresolution.Themotioncarried.
22.5 Whereas the G.U.T. Co-operative Credit Union
realized a surplus on its operation for 2013.
And, whereas the Institutional Capital of the
credit union has increased beyond 10% of the
Total Assets as recommended by the Pearls Ratio
Be it resolved that this Annual General Meeting
approve a dividend payment of 3% of the value of
members’ share account for 2013.
Afterlengthydiscussionsonthisresolutionbythe general membership, the dividend payment of3%wasamendedto3.5%.Themotionfortheamendment was moved by Ms. Pamela Adolphus andwassecondedbyMs.JudyLewis-Joseph.Twenty-nine(29)votedinfavourandtwentyfour(24)againsttheamendment.
22.6 The amended resolution reads:
Whereas the G.U.T. Co-operative Credit Union
realized a surplus on its operation for 2013
And, whereas the Institutional Capital of the
credit union has increased beyond 10% of the
Total Assets as recommended by the Pearls Ratio
Be it resolved that this Annual General Meeting
approve a dividend payment of 3.5% of the value
of members’ share account for 2013
Avotewastakenfortheamendedresolution.Forty(40)personsvotedinfavourofthenewresolution.Therewerenovotesagainst.Themotioncarried.
23. Adjournment
23.1 The meeting ended at 4:44 p.m.
Egbert La Geer Kim Parris
Secretary President
22.
16
Annual Report 2014
1. Composition
1.1 TheBoardofDirectorsduringthefirstquarteroftheperiodcomprisedthefollowingmembers:
Ms. Florina Thomas President St. Andrew
Ms. Elizabeth Peters Vice President Independent
Mr. Egbert La Geer Secretary Independent
Mr. David Thomas Assistant Secretary Independent
Ms. Joslyn Augustus-La Touche Treasurer St. David
Ms. Decima Blake-Thomas Assistant Treasurer Independent
Ms. Kim Parris Director Independent
Ms. Marjorie Thomas Director St. Mark
Ms. Janis Henry Director St. George
Ms. Alma Du Bois-Calliste Director St. John
Mr. Carl Andall Director Independent
Ms. Lystra Mark Director St. Patrick
Mr. Henry Stiell Director Carriacou
1.2 Thetermofofficeexpiredforsomemembersduringthefirstquarteroftheperiodbutsomewereeligiblefor
re-election.
Retired Members Replacement Region
Ms. Florina Thomas Mr. Miguel Fortune St. Andrew
Ms. Joslyn Augustus-La Touche Mr. Edison Francis St. David
Ms. Marjorie Thomas Mr. Andre Martin St. Mark
Ms. Decima Blake-Thomas Ms. Decima Blake-Thomas Independent
Board of Directors’
ReportThe Board of Directors is pleased to present to the 31st Annual General Meeting, its report on the
financial year 2014.
1.
17
Annual Report 2014
1.3 Composition of the new Board
The following members were elected during the
firstmeetingtofilltheestablishedexecutive
positions:
Ms. Kim Parris President
Mr. Carl Andall Vice President
Mr. Egbert La Geer Secretary
Mr. David Thomas Assistant Secretary
Ms. Decima Blake-Thomas Treasurer
Mr. Andre Martin Assistant Treasurer
Other members of the Board:
Ms. Elizabeth Peters
Ms. Janis Henry
Ms. Alma Du Bois- Calliste
Mr. Edison Francis
Ms. Lystra Mark
Mr. Henry Stiell
Mr. Miguel Fortune
1.4 Adhoc Committees
Committees were appointed to assist with various
duties and responsibilities. The Chairman for
each committee is as follows:
Committee ChairmanEducation Mr. Egbert La Geer
Staff Mr. Carl Andall
Investment Ms. Decima Blake-Thomas
2. Year in Review Thefinancialandeconomicchallengeswhichhave
been affecting economies of the world continue
to negatively affect the Grenadian economy.
Howeverthefiscalandeconomicpoliciesofthe
Government of Grenada, through the Home
Grown Structural Adjustment Programme with
the support of the International Monetary Fund
(IMF), would have brought some stability to the
economy, but at the same time has impacted
adversely on our credit union members.
Moreover, the credit union continues to operate
in an increasingly competitive environment.
Realizing this, the Board of Directors continued
with measures that would have a positive impact
on members, since it would allow members to
have more spending power. These included:
(i) The reduction of the interest rate on
mortgages by one percent
(ii) Implementing a special loan promotion
fordebtconsolidationthatwaivesthesix
month waiting period for new members
(iii) Extensionofloanrepaymentperiods
Overthefive(year)periodtherewasapositive
movement from a loss in 2010 and 2011 to a
surplus in 2012, 2013 and 2014.
2.
18
Annual Report 2014
140,000,000
120,000,000
100,000,000
80,000,000
70,000,000
60,000,000
40,000,000
20,000,000
0
Total Assets
2010 2011 2012 2013 2014
$73,994,251
$101,718,771
$116,095,097
$81,456,950
$91,098,838
In 2014, there was a 14.13% increase in Total Assets over 2013
There was a 56.90% increase in Total Assets from 2010 to 2014
12,000,000
10,000,000
8,000,000
7,000,000
6,000,000
4,000,000
2,000,000
0
Equity Shares
2010 2011 2012 2013 2014
$2,296,413
$8,688,332$9,762,414
$3,696,042
$7,398,812
In 2014, there was a 12.36% increase in Equity Shares over 2013
There was a 325% increase in Equity Shares from 2010 to 2014
3. Financial Highlights ThefollowingchartsshowthefinancialachievementsoftheG.U.TCo-operativeCreditUnionfortheperiod2010-2014:
12,000,000
10,000,000
8,000,000
7,000,000
6,000,000
4,000,000
2,000,000
0
Savings
2010 2011 2012 2013 2014
$64,349,887
$84,556,573
$96,842,152
$68,634,067
$77,090,777
In 2014, there was a 14.53% increase in savings over 2013
There was a 50.49% increase in savings from 2010 to 2014
90,000,000
80,000,000
70,000,000
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
0
Loans
2010 2011 2012 2013 2014
$52,110,855
$75,465,616
$83,550,178
$60,842,955
$68,992,638
In 2014, there was a 10.71% increase in Loans over 2013
There was a 60.33% increase in Loans from 2010 to 2014
3.
19
Annual Report 2014
In 2014, there was a 47.84% increase in Surplus over 2013
Over the five (year) period there was a positive movement from a
loss in 2010 and 2011 to a surplus in 2012, 2013 and 2014.
4. Supervision and Inspection
4.1 During the month of July, the Grenada Authority
for the Regulation of Financial Institutions
(GARFIN) assessed the credit union’s operations
and performance. Operational strengths as
wellasweaknesseswereidentified.Onematter
raisedbyGARFINisthatofourdeficiencyin
institutional capital. The Board assessed the report
and developed plans to address the issues, so as
to ensure full compliance with the regulations.
5. Strategic Plan
5.1 During 2014 the Strategic Plan that was developed
in2013wasreviewedandmodifiedtocushionthe
effects of the structural adjustment programme
on the credit union and our members. The Board
of Directors did this in conjunction with the other
committees and management staff of the credit
union. This strategic plan encompasses a three year
period (2014 -2016) and has been put into action.
10,000
8,000
6,000
4,000
2,000
0
Membership
2010 2011 2012 2013 2014
5763
86739357
6115
7995
In 2014, there was a 7.87% increase in membership over 2013
There was a 62.40% increase in membership from 2010 to 2014
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Income and Expenses
2010 2011 2012 2013 2014
Expenses Income
In 2014, there was a 7.43% increase in Income over 2013
There was a 56.11% increase in Income from 2010 to 2014
In 2014, there was a 1.83% increase in expenses over 2013
There was a 12.89% increase in expenses from 2010 to 2014
5.
4.
Surplus
2010 2011 2012 2013 2014
2,000,000
1,500,000
1,000,000
500,000
0
-500,000
-1,000,000
-1,500,000
-2,000,000 -$1,496,900
-$1,281,977
$1,854,186
$688,793
$1,018,335
$8,4
25,6
78
$7,1
05,7
49
$7,8
43,0
65
$6,9
78,0
07
$7,1
01,3
90
$6,3
10,3
07
$6,6
61,3
48
$6,3
04,6
50
$5,3
97,4
03
$6,2
94,3
03
20
Annual Report 2014
6. Delinquency
6.1 The year 2014 was a challenging one for the credit
union as delinquency continued to be of concern.
The Board employed a number of strategies to curb
the growth of delinquency among members. The
rate of delinquency for 2014 was 2.49% compared
with 5.56% in 2013.
7. Activities
7.1 Financial Literacy Quiz-Sixteen(16)secondary
schools participated in the inaugural Secondary
Schools’FinancialLiteracyQuizwhichstartedin
June and concluded in July. St. David’s Catholic
Secondary School was the winner of the competition.
7.2 Children Financial Seminar- The Smart Savers
Seminar was again held this year from August 15th-
21st, 2014. Four hundred and twenty four students
participated.
7.3 Pass the Torch Calypso Workshop- This programme
continued to assist students in developing their
skills in writing and performing calypso. The
workshop is facilitated by some of our top local
calypsonians. In 2014, a centre in St. George’s was
addedtosupplementthealreadyexistingcentres
in St. Andrew and St. David. Some of the young
calypsonians performed at the ICU Day Celebrations
at La Sagesse, and a larger number of them would
showcase their talents in an independence
extravaganzain2015.
7.4 Junior Financial Co-operative- Workshops for teacher
guides were conducted prior to the launch of the
Junior Financial Co-operative for students of
Secondary Schools. The launch of the Junior
Financial Co-operative would take place on
January 13th, 2015.
8. Member Education
8.1 Workshop for members – in the month of
November, a two-day training workshop was
held for members who were interested in serving
on the Board of Directors, Credit Committee
and Supervisory Committee. A total of thirty
four (34) persons attended.
9. Sponsorships, Scholarships and Grants
9.1 The TAMCC Necessitous Scholarship Fund
administered by the G.U.T Co-operative Credit
Union, assisted fourteen (14) students with
tuition fees.
9.2 The CPEA grant was given to one hundred (100)
members along with Smart Savers vouchers at
a total value of $25,000.
9.3 G.U.T Co-operative Credit Union continues
to provide major sponsorship for sporting
competitions and is the sole sponsor of the
following:
• Inter-Primary School Table Tennis
Championshipinwhichsixteen(16)schools
participated in 2014. It was the 4th year of
sponsorship.
• Magaret Dowe Netball Tournament which
was sponsored for the 5th year.
6.
7.
8.
9.
21
Annual Report 2014
10. Staffing
10.1 Ms. Karen Mapp was promoted to Senior Member
Service Representative
10.2 Ms.AliceMcQueenwasrepositionedasManager
of the Grenville Branch
10.3 Ms.MatoniaCox-Munroewasrepositionedas
Manager of the Grand Anse Branch
10.4 Ms. Yonette Roberts-Ross was repositioned as
Secretary to the Loans Department
10.5 Mr. Damani Brizan was repositioned as Financial
Manager
10.6 Ms. Paula McMeo was repositioned as Operations
Manager
10.7 There were several new appointments in 2014:
• Ms. Camille Goddard was appointed as the
Communications Manager
• Ms. Nicole Roberts was appointed as the Loans
Manager
• Ms. Retesha Smith-Boyd was appointed as the
Deputy General Manager
• Mr.NevionCoxwasappointedasMarketing
FieldOfficer
• Mr. Elwin James was appointed as Member
Service Representative
11. Human Resource Development
11.1 During the year, staff and committee members
attended workshops and seminars to develop
their knowledge and skills, in order to improve
the service offered to members.
• Ms. Donlyn Telesford successfully completed
the mortgage underwriting course. This course
was facilitated by the Eastern Caribbean Home
Mortgage Bank and the Real Estate Institute
of Canada.
• Four members attended the 12th Annual OECS
Summit in Antigua. They were Ms. Kim Parris,
Ms. Karen Mapp, Ms. Retesha Smith-Boyd and
Mr. Randy Boyke Cadet.
• Ms. Karen Mapp and Ms. Imogene Howard
attended a workshop on how to conduct an
effective fraud investigation.
• Ms.MatoniaCox-MunroeandMs.Retesha
Smith-Boyd attended a workshop in Barbados
onImprovingOperatingEfficiencies.
12. Sub-Offices
The Grenville Branch office was redesigned,
paintedinthecorporatecoloursandthefloor
wascarpeted.Thisupgrademakestheofficemore
member-friendly and provides an atmosphere
that is conducive to conducting business.
13. Donations and Contributions
13.1 Financial support was given to various charities,
non-profitorganisationsandcommunitygroups,
such as Grenada Girl Guides, Grenada Netball
Association, Grenada Red Cross, GRENSAVE,
Resource Centre for the Blind, The Salvation
Army, GRENCODA, among others. Contributions
were also given to numerous schools and some
needy individuals.
10.
11.
13.
12.
22
Annual Report 2014
14. Board Meetings
14.1 TheBoardofDirectorshadfourteen(14)ordinarymeetingsandfive(5)JointCommitteemeetings.
Names Board Meetings
Joint Committee
Total Attendance
Florina Thomas*
Elizabeth Peters
Egbert La Geer
Joslyn Augustus-La Touche*
Majorie Thomas*
David Thomas
Kim Parris
Decima Blake-Thomas**
Janis Henry
Alma Du Bois-Calliste
Carl Andall
Lystra Mark
Henry Stiell
Mr. Miguel Fortune***
Mr. Edison Francis***
Mr. Andre Martin***
4/4
9/14
14/14
4/4
3/4
14/14
14/14
14/14
14/14
13/14
13/14
10/14
11/14
6/10
10/10
8/10
2/2
4/5
5/5
2/2
2/2
5/5
4/5
5/5
5/5
5/5
4/5
4/5
3/5
3/3
3/3
2/3
6/6
13/19
19/19
6/6
5/6
19/19
18/19
19/19
19/19
18/19
17/19
14/19
14/19
9/13
13/13
10/13
* Demitted office at the last Annual General Meeting in 2014** Re-elected at the last Annual General Meeting in 2014*** Elected at the last Annual General Meeting in 2014
15. Condolences
15.1 ThemanagementandstaffoftheG.U.TCo-operativeCreditUnionextenddeepestsympathytothose
who have lost family and friends in 2014.
14.
15.
23
Annual Report 2014
16. Plans for 2015
• Launch of Junior Financial Cooperative in
Secondary Schools
• Expandingtheservicesofferedbythecredit
union including facilitation of bill payment
• RelocationofCarriacousub-officetoenhance
the services offered to members
• Improving the operations of the credit union
by providing additional training for staff
• Making the Debit Card a reality for members.
• Implementing Performance Appraisal for staff
members.
• Developing and implementing the Business
portfolio
• Online banking
• DevelopmentofHeadOffice
• Financial growth in:
Loans (10%)
Savings (10%)
• Institutional capital (20%)
17. Appreciation
• TheBoardofDirectorsextendsdeepgratitude
to all those who continue to contribute to
the success of the G.U.T Co-operative Credit
Union. Special thanks to the Directors, Credit
Committee and Supervisory Committee,
General Manager and Staff for their continued
hard work.
• Appreciation is extended to the general
membership for the opportunity to serve you
and for making G.U.T Co-operative Credit
Unionyourfinancialinstitutionofchoice.
Egbert La Geer Kim Parris
Secretary President
16. 17.
TeamworkLet us work it out together
24
Annual Report 2014
1. IntroductionThe Credit Committee is pleased to present, to the 31st Annual General meeting, this report of its activities for
the year 2014.
2. CompositionThe Credit Committee comprised the following members:
Chairman Kelley Calliste
Secretary Magdalene Carmichael
Member Kevin Andall
Member IrvaAlexander
Member Wayne Horsford
3. Attendance Records
MEMBERS Credit Committee Joint Committee
Meetings
Scheduled
Meetings
Attended
Meetings
Scheduled
Meetings
Attended
Kelley Calliste
Magdalene Carmichael
Kevin Andall
Retesha Smith-Boyd*
Joyce John*
IrvaAlexander**
Wayne Horsford**
27
27
27
18
18
9
9
24
25
9
18
8
9
7
5
5
5
4
4
1
1
4
4
3
3
2
1
1
*Member resigned from committee in 2014**Replaced members who resigned
Credit CommitteeReport
1.
2.
3.
25
Annual Report 2014
4. Year in Review In 2014, the Credit Committee held twenty-
seven (27) meetings. The purpose of these
meetings were to evaluate and process loan
applications, sign and ratify loan applications
already approved by the loans department,
assess and monitor loan delinquency and
evaluateexistingcreditpolicies.Fivehundred
andfifty-three(553)loanswereforwarded
to the committee for processing. These
loans were evaluated and three hundred and
seventy-four (374) were approved.
As part of the evaluation process, the
committee also conducted interviews with
loan applicants in cases where additional
informationorclarificationwasrequired
and also to provide financial counselling
to our valuable members. A loans manager
joined our organisation in September and
has proven to be immeasurably resourceful
in the evaluation process. Additionally, the
delinquency issue continues to be addressed
and is within acceptable parameters.
3004Loans
Granted
Value of LoansGranted
Increasein LoansGranted
$28.5m
25%
4.
Risk TakingNothing ventured – nothing gained
As at December 2014, the delinquency ratio was 2.49%
The total number of loans granted during the period was
three thousand and four (3004). Total value of loans
granted amounted to $28,505,575.37.
26
Annual Report 2014
Loan Report
LOAN PURPOSE DESCRIPTION COUNT TOTAL VALUE PERCENT
Computer
Education-back to school
Education -long term studies
Utility bills
Medical bills
Grocery bills
Legal & professional fees
Weddingexpenses
Funeralexpenses
Vehicle purchase
Vehicle repairs
Vehicleexpenses,licenseins
Household furniture/appliance
Refinancingloans
Livestock and farming
Consumer/personalexpenses
Travel/vacation
Debt consolidation
Mortgage/building construction
Building repairs/renovations
Catering & other services
House insurance
Christmas loan
Land purchase
Heavy duty equipment
Land development
Professional & other service
Business enterprises
Refinanceloanbalance
Ready money
Self-loan (education)
25
86
140
74
186
3
35
22
36
108
97
99
131
17
14
693
265
340
58
227
3
26
118
29
1
1
2
106
18
28
16
3004
54,556.00
139,970.09
648,983.98
70,166.78
469,592.68
2,500.00
195,514.83
110,655.02
108,117.65
3,270,395.39
309,730.49
301,696.60
584,909.28
938,973.59
42,600.00
1,455,551.46
1,101,142.99
7,261,953.40
4,669,078.46
1,926,140.86
17,100.00
483,517.30
831,621.71
1,938,657.26
2,000.00
4,000.00
5,992.19
721,816.64
491,022.20
211,644.28
135,974.24
28,505,575.37
0.19
0.49
2.28
0.25
1.65
0.01
0.69
0.39
0.38
11.47
1.09
1.06
2.05
3.29
0.15
5.11
3.86
25.48
16.38
6.76
0.06
1.7
2.92
6.8
0.01
0.01
0.02
2.53
1.72
0.74
0.48
27
Annual Report 2014
5. Observations
5.1 The number of loans has increased from two thousand
ninehundredandninety-five(2995)in2013tothree
thousandandfour(3004)in2014.Thisreflectsan
increaseof0.30%.Asignificantamountofmembers
continuetofaceunprecedentedfinancialchallenges:
shrinking disposable incomes mainly due to the
prevailingtaxburden,lossofjobsandtheuncertainty
that the future brings. Despite this however, the loan
value showed an increase over the previous year.
When compared to 2013, the value of loans granted
increased in 2014 by 25.25% from $22,758,603.38
to $28,505,575.37 compared with a 4.74% increase
from 2012 to 2013.
Thissignificantincreaseinloanvaluespeakstothe
confidencethatbothpresentandnewmembers
continuetobestowinthisfinancialinstitution.
5.2 Thesignificantincreaseinthetotalloanloansgranted
was primarily driven by a 154% spike in loans for
debt consolidation moving from $2,856,566.50 or
12.55% in 2013 to $7,261,953.40 or 25.48% in 2014.
The debt consolidation promotion which was the
flagshipinitiativeofthecreditunionin2014,realised
this overwhelming success through attracting new
members to the organisation due the attractive
interestrateandflexibilityitprovidescomparedto
otherfinancialorganisations.Thepromotiondid
have its challenges, nonetheless, and is presently
under review with the objective to produce an even
better product in 2015.
5.3 Mortgage/building construction and vehicle purchase
continuetoformasignificantpartoftheoverallloan
value as in previous years, with the former realising
a value of $4,669,078.46 or 16.38% and the latter
a value of $3,270,395.39 or 11.47%.
5.4 The majority of loans granted were to persons 45
years and under (67.6%); as well as the greater
percentage of the value of loans (70.9%). This is very
encouragingasitreflectsthesignificanteffortthe
creditunionhasplacedintofinancialcounselling
and getting our youthful population into early
financialsecurityandwealthaccumulation.
6. AppreciationProfoundgratitudeisextendedonbehalfofthe
Credit Committee to the Board of Directors,
Supervisory Committee, General Manager and
Staff for their invaluable assistance and continued
support in a year where loan value soar to a
newhigh,duringthefirstyearofthestructural
adjustment programme.
WeextendappreciationtoMrs.ReteshaSmith-
Boyd for her years of dedicated service to the
committee and congratulate her on her new
assignment as Deputy General Manager. We
also thank Mrs. Joyce John for her service to the
committee in the years spent with us.
The committee is forever cognisant of its role in
protectingthefinancialassetsofitsmembersand
eagerly anticipates deepening that resolve as we
continue to successfully forge ahead through this
mostcriticaltimeinourfinancialhistory.
Kelley N. Calliste
Chairman
5.
6.
28
Annual Report 2014
Composition and Meetings for the Period
At the 30th Annual General Meeting, Ms. Sobrina La Rose, and Ms. Lu–Melina Fortune were nominated and elected to
serve on the Supervisory and Compliance Committee. Subsequently, the committee was constituted on 2nd May, 2014
and Ms. Imogene Howard was elected chairman and Ms. Lisa Lewis as secretary.
Your esteemed committee comprises of the following members and particulars of attendances are concluded in the table
below:
Members Portfolio
Regular Meetings Joint Committee
Meetings
No. Of
Meetings
Times
Attended
No. Of
Meetings
Times
Attended
Imogene Howard
Lisa Lewis
Randy Boyke Cadet
*Sobrina La Rose
*Lu-Melina Fortune
**Abel Newton
Chairman
Secretary
Member
Member
Member
Member
11
11
11
8
8
3
10
11
10
8
6
3
5
5
5
3
3
2
5
5
5
3
3
2
*Elected in April 2014 **Term expired April 2014
The Supervisory and Compliance Committee submits this report
on its guardianship to its members at the 31st Annual General
Meeting of the G.U.T. Co-operative Credit Union. The report covers
the period, January to December 2014. This report provides an
assessment and reflection of work, activities, observations and
actions completed during the year under review.
Supervisory and ComplianceReport
29
Annual Report 2014
Method of Operation
YourCommittee’smainmandatewastopromotetheefficient
operation of our Credit Union. Our task was designed to
ensure that there were compliance with the Co-operative
Societies Act, the Credit Union Bye–Laws, other governing
policies and procedures; adherence to recommendations
provided by GARFIN, our regulatory authority, auditors
and other governing entities. Compliance was monitored by
reviewing documents and the systems, and making necessary
suggestion and recommendations for improvements. Our
work ensured that the integrity, soundness of management,
effectiveuseofresources,financialstability,soundinternal
control and other functions and values were maintained
and attained.
The schedule of work included:
1. Review of Minutes and Reports of the Board of
Directors, Credit Committee, and other committees
2. VerificationofMonthlyFinancialReports
3. Review of Auditors Statement and Report of Accounts
for 2013
4. Workshop and Training on Roles and Responsibilities of
the Supervisory and Compliance Committee , Emortelle
System and Risk Based Analysis
5. Review of Delinquency Control Unit and its operations
6. Visits and Re-visits to branches: Grenville, Tivoli, St.
Mark’s, Carriacou, Grand Anse
7. Review of Educational and Marketing programmes
8. Review of cash control, teller operations and loans
operations
9. Cash count visits
10. Examinationatrandom,samplesofloanapplications
andfiles(new,existingandlarge),andloansfilesof
delinquent members (large, old, new)
11. Compliance review of legal and regulatory procedures
and documents governing the Credit Union
12. Reviewofstaffaccounts,employeefilesandpayroll
listings
13. Review of membership listings
14. Assessment of human resource management
15. ReviewofCredit/loanspolicy,fixeddepositslistings
and investment portfolio
16. Review of general membership holdings, deposits,
loans and institutional investors/members
17. VerificationofAssetsRegisterManagementandAssets
Protection.
18. Review of Declaration of Fund Files
To enhance productivity and members’ involvement in
the organisation, your committee made the following
recommendations:
1. Update information of members that came from
TivoliCreditUnionandalsoexpandtheTivoli
officetoincludeotherservicessuchasbillexpress
2. TherelocationoftheCarriacouoffice
3. More incentive programmes for our Smart Savers
4. Showcaseofworkdone/sponsorshipinoffices
through pictorial displace on walls and in albums
5. Implementashiftsystemtofacilitatetheextension
of hours of operations
6. Develop and promote new products for members
7. Stimulate interest and encourage more member
participation in Credit Union activities especially
Annual General Meeting and Credit Union Day
Celebrations
8. More training opportunities for staff and committee
members
30
Annual Report 2014
9. Individual educational upgrade by staff members
10. Finding attractive and lucrative long term
investment opportunities
Financial Position
YourCommitteeexaminedtheFinancialStatements
submitted during the period under review and can
conclude that the Credit Union’s accounting records and
financialstatementstruly,fairlyandaccuratelyreflected
itsfinancialconditionandresultsofitsoperations.
Total AssetsTotal assets increased by 14.1 per cent, from $101,718,
771 at the end of December 2013, to $116,095,097
at the end of December 2014. The increase in total
assetswasmainlyduetoasignificantincreaseincash
and cash equivalent from $ 2,626,037 to $7,469,521.
Although cash is needed to provide a cushion to weather
unexpectedsituationssuchasashortfallinrevenue
andtocovershortormediumtermexpenses,thishigh
amount of liquidity suggested to your Committee, that
theCreditUnionneedstofindattractiveandlucrative
longer term investment opportunities to deploy some
of its cash reserves.
LoansandDepositsYour Committee recognised an improvement in the rate
of growth in Members Loans and Members Deposits.
Loans are the lifeblood of the Credit Union and they are
very important for the growth and sustainability of the
Credit Union. For the period ending December 2014,
Members Loans grew by 10.7 percent from $75,465,616
to $83,550,178. At the same time, Members Deposits
grew by 14.5 percent from $84,556,573 to $96,842,152.
800
600
400
200
0
The Level of GUTCCU Liquidity 2010 - 2014
2010 2011 2012 2013 2014
Membership Loans and Deposits Growth 2010 - 2014
2.0
15.0
10.0
5.0
0.0
2010 2011 2012 2013 2014
G
r
o
w
t
h
R
a
t
e
(%)
Members Loans Growth Members Deposit Growth
The Level of members’ Equity Shares2010 - 2014
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
02010 2011 2012 2013 2014
31
Annual Report 2014
Since the current economic environment in which the
Credit Union operates remains fragile, the growth
experiencedinDepositsandLoansiscommendable.
Your Committee encourages the Board of Directors to
remain steadfast in looking for ways to increase loan
volume while at the same time putting systems in place
in mitigating risks and potential losses. Additionally,
there is always a need to market the loan products
andtoeducateexistingandpotentialmembersonthe
advantages of doing business with the credit union.
Members Share CapitalThe Member Share Capital represents the money
members invest in the Credit Union. These monies
form part of the capital base of the Credit Union.
As at December 2014, Share capital accumulated
toNinemillion,sevenhundredsixty–twothousand,
four hundred and fourteen dollars ($9,762,414). This
represented a 12.4 percent increase compared to end
of the previous year where the share capital amount
waseightmillion,sixhundredeighty-eightthousand,
three hundred thirty two dollars ($8,688, 332).
InstitutionalCapitalOver the past three years, the Credit Union’s
Institutional Capital has been on a growth path. During
the year under review, Institutional Capital grew by
17.7 percent from $11,627,457 to $13,684,622. A
special point to consider is that, the Institutional
Capital as a percentage of Total Assets was recorded
at 11.8 percent, which remains above the industry
standard of 10.0 percent.
The Institutional Capital is critical since it provides a
basis for future growth and it ensures that the credit
union remains a going concern.
The Level of the GUTCCU Institutional Capital2010 - 2014
15,000,000
10,000,000
5,000,000
02010 2011 2012 2013 2014
ReviewoftheDelinquencyStatusYour committee reviewed samples of loan applications to determine
the adequacy and effectiveness of the internal control system. The
status of the delinquent accounts was also monitored throughout
the period under review. Procedures and structures were put
inplacetominimizetheflowofaccountsinsuchportfolio.In
reviewing the delinquent loans the committee opted to ensure
that; the approval procedures were adhered to, relevant supporting
documents and security were available and follow up actions were
taken by the Delinquency Unit.
As at December 2014, there were 101 delinquent accounts which
amounted to two million, three hundred forty-nine thousand, four
hundredandfiftyfivedollars($2,349,455).Thedelinquencyratio
achieved for the period under review was 2.49 percent.
TheInternalControlStructureYour committee reviewed the control structure and procedure
andfoundthattransactionsareexecutedinaccordancewith
management’sspecificauthorization;alltransactionsarerecorded
asnecessarytopermitpreparationoffinancialstatementsin
conformity with generally accepted accounting principles.
Board, Committee and Staff Members Accounts
The accounts of these departments were reviewed so as to ascertain
theleadershipandmanagement’sconfidenceandextentofbusiness
conducted by these members in the organisation.
32
Annual Report 2014
The table demonstrates an overview and gives a clear picture of committee members and management involvement in
the credit union.
Personnel No. Of Persons Shares
$
Savings
$
Loans
$
Board of Directors
Credit Committee
Supervisory Committee
Staff
Total
13
5
5
35
58
$68,186.99
18,955.01
15,967.83
93,430.94
196,540.77
385,574.89
269,362.73
96,498.89
542,395.78
1,293,832.29
445,314.10
284,875.19
315,290.93
2,091,346.65
3,136,826.87
Education and Marketing
The Credit Union operates for the purpose of promoting
thrift and providing services intended to support community
welfare and development. Your Credit Union has done its
part in such by successfully completing the following projects:
The G.U.T. Co-operative Credit Union National
SecondarySchoolsFinancialLiteracyQuiz
The Annual Smart Savers Financial Seminar
The distribution of the CPEA Grant
Granting of the TAMCC scholarship
Grenada Union of Teachers Co-operative Credit
Union Junior Calypso Monarch
GUTCCU Junior Calypso Workshops
Promotion of the Credit Unions in many ways:
Advertisements and Sponsorship
Training for staff and committee members
Training
Members of your committee organised and attended training
sessions to familiarise and obtain more knowledge on how
to use and manipulate the Emortelle system so as to monitor
it effectively. Risk Based Assessment and Investments
were also discussed and analysed so as to assist in making
recommendations and understanding the business and
financialaspectsinoperatingourcreditunion.Thisserves
to assist the committee in ably performing its functions
especially to ensure compliance at all times.
Visits to Various BranchesSt.Mark’sSub-OfficeThecommitteevisitedtheSt.Mark’sofficetoexaminethe
practices and requisite duties related to their operations
and made recommendations that seek to help improve the
overallaesthetics,efficiencyandsecurityoftheoffice.The
officewasalsorevisitedtoensurethatrecommendations
made were implemented. It was found that necessary
recommendations were being administered.
CarriacouSub-OfficeTheCarriacouofficehascontinuedtodeliverintermsofits
efficiencyandproductivity.Thereisacleardelineationof
tasksamongthetwoemployeesthere.Uponexaminationof
the physical condition of the building, we must commend the
workers for operating effectively under the strenuous and
decrepitconditions.Yourcommitteeisinfirmagreement
33
Annual Report 2014
withtheBoard’sdecisiontorelocatetheoffice.Theproposed
siteismorespaciousandislocatedincloserproximityto
the central business district. We deem this as a move that
willdefinitelymaximizeservicedelivery.
TivoliSub-OfficeAfterathoroughexaminationoftheoperationsatthis
relativelynewlocationyourcommitteeissatisfiedwithits
performance. The employee there must be commended for
her community oriented spirit. Recommendations to ensure
security and more effective functioning of this outlet were
made. This outlet can also facilitate other business ventures
suchasbillexpress.
GrenvilleOfficeTheGrenvilleofficecontinuestooperateefficientlyand
effectively and is aesthetically a model for the vision of our
Credit Union. This branch was visited on two occasions.
Your committee applauds the efforts of the staff for their
professionalism and for subscribing to the core values of
the Credit Union.
GrandAnseOfficeThe ambience is welcoming and comfortable. The attendants
and staff were very cordial, accommodating and assisted the
committee members in performing their task effectively. A
physical cash count was completed and it was evident that
the all monies reconciled with the necessary compared
documents.
The Credit Committee
We are pleased with the work of the Credit Committee.
The committee worked diligently in cohesion with the loans
department to ensure that our members have access to all
loan products offered. There have been some adjustments
to the committee, two members resigned including the
chairman, who was appointed a new position within in the
credit union thereby causing new members to join the team.
The committee from time to time looks for ways and methods
to enhance the performance of the loans department and
in so doing make recommendations. Your committee trusts
that these recommendations will be adopted to encourage
growth in the department and better service to members.
Management
Themanagementandstaffhaveworkedexceptionally
hard in regulating, monitoring and supporting the policies,
procedures, mission and vision of the credit union. They
must be commended for the commitment and dedication
and we encourage them to continue the good work.
Making a differenceDonation to pre-school
34
Annual Report 2014
Human Resource
One of the main objectives of the committee was to
conduct a thorough investigation into the productivity of
the credit union by monitoring the level of effectiveness
of the employees. The business world is dynamic and it is
imperative that we continue to align our workforce to the
mission and vision of the credit union.
ThecommitteeisextremelypleasedthattheBoardhas
appointedaDeputyGeneralManager,andanexperienced
Loans Manager. The continuous growth of our credit union
warrants the services of such individuals and we are truly
contented with their performance thus far. Similarly, we
applaudtheBoardintheeffortofsecuringaqualified
CommunicationsManagerandMarketingFieldOfficer;
the innovative ideas have surely promoted the image of our
credit union to date. However, there is still a dire need for the
recruitmentofanInternalAuditOfficer.Thisappointment
will surely strengthen the internal auditing capacity of our
credit union.
The committee appreciates the dedication of our staff and
their compliance to governing policies. We recommend that
the staff take full advantage of educational opportunities as
well as professional training that may arise. The job market
is a competitive arena and in order for our credit union to
maintain its prosperity, employees must constantly upgrade
themselves.
Conclusion
The Supervisory and Compliance Committee wishes to
expressgratitudeandappreciationforthe invaluable
assistance, guidance and commitment of the Board
of Directors, the Credit Committee, other committees,
manager, and staff in making it possible for this committee
to accomplish its task during its tenure.
Toyouthemembersweexpressourprofoundappreciation
foryourcontinuedconfidenceandsupportinourability;
to supervise and encourage transparency, accountability
and good governance in an atmosphere where honesty and
integrity,commitment,theprovisionoffirstclassserviceto
our members, which remain part of our core values.
Your committee will continue to play its pivotal role in the
overall corporate governance process. We will be diligent,
fair, assertive, observant and challenge, but at the same time
work with management and all stakeholders to ensure value
for money and ultimately, the development of our credit
union in making it the number one credit union in the tri-
island State of Grenada, Carriacou and Petite Martinique.
Imogene Howard
Chairman
Continuous ImprovementWe are always looking to
do things better
35
Annual Report 2014
Profitability
TotalIncomeof$8,454,066wasearnedduringthefinancial
year. This was 7.24% above the amount earned in 2013.
The total cost to carry out the operation of the credit union
during that period amounted to$ 7,105,752. This was
1.83% more than what was spent in 2013.
Surplus
The total income for the year was $1,018,335. This was
47.84% above what was earned in 2013. This achievement
mustbeviewedinthecontextoftheunfriendlyeconomic
conditionandthefiercecompetitionamongfinancial
institutions.
Assets Growth
The assets of the credit union increased from $101,718,771
in 2013 to $116,095,097 on 31, December 2014. This
representsgrowthof14.13%forthefinancialyear.This
growth is greater than what was achieved annually for
thepreviousfive(5)years.
Loans
A total amount of $28,546,421 was added to the net loan
portfolioforthefinancialyear.
Growth in this portfolio was driven by a surge in application
in the last quarter of 2014. An adjustment in the lending
policy of the credit union by the Board of Directors where
non members were encouraged to consolidate their many
loans with the credit union assisted in the growth in the
loans portfolio.
Savings
A total amount of $12,285,579 was added to the savings
portfolio during the year which resulted in a 14.53% increase
inSavings.Confidenceinthecreditunionismanifestedin
the amount of new money deposited in the credit union
for 2014.
Performance for 2014
The Board of Directors estimated targeted growth in the
key areas for 2014 as follows:
Areas Projected Growth
Actual Growth %
Loans
Savings
Members Equity
Assets
10%
10%
12%
10%
10.71
14.53
12.36
14.13
Treasurer’s
Report
36
Annual Report 2014
Below are tables highlighting the Credit Union’s performance in major areas.
Items Bal 2014 Bal 2013 Growth %
Loans
Savings
Liabilities
Capital
Assets
83,550,178
96,842,152
97,775,073
18,320,024
116,095,097
75,465,616
84,556,573
85,483,615
16,235,156
101,718,771
8,084,562
12,285,579
12,291,458
2,084,868
14,376,326
10.71
14.53
14.38
12.84
14.13
Description Actual2014
Budgeted2014
Variance Actual vs. Budget
Personnel
Interest Payment
Marketing
Governance
Administration
Sub Total
Net Operating Surplus add other comprehensive income
Transfer to Reserve and Development Fund
Total Comprehensive Income
TOTAL
Interest on Personal Loan
Interest on Second Loan
Interest on Loan 3
Interest on Loan four
Horizon Plaza Income
Other Income
Sale of Pass Books
Bill of Sale
League Deposit Interest
Interest on Investment
FixedDepositInterest
Other Comprehensive Income
Total
1,609,691
3,429,161
381,216
382,741
1,302,940
7,105,749
1,348,317
329,982
1, 018,335
8,454,066
5,986,177
1,095,129
667,621
119,312
83,381
85,709
3,063
21,670
35,319
86,894
241,402
28,388
8,454,066
1,506,708
3,810,000
350,000
858,300
1,031,405
7,556,413
866,263
216,566
649,697
8,422,676
6,295,000
750,000
700,000
140,000
48,000
118,000
2,000
15,000
66,994
81,000
206,682
8,422,676
( 102,983)
380,839
(31,216)
475,559
( 271,538)
450,661
450,661
(430,973)
121,102
(187,649)
7,565
(4,518)
29,504
685
2,337
1,585
(42,360)
56,639
(489,407)
TABLE 1
TABLE 2
37
Annual Report 2014
Products Bal 2014 Bal 2013 Growth % Growth
Regular Savings
Term Deposits
Special Savings
Solid Gold
School Accounts
Smart Saver
47,554,255
29,798,041
3,536,747
13,825,149
802,462
1,102,596
39,433,325
28,443,644
2,843,424
12,087,047
670,235
913,009
8,120,930
1,354,397
693,323
1,738,102
132,227
189,587
20.59
4.76
24.38
14.38
19.73
20.76
2014 2013
Earnings Data
Total Income
Total Comprehensive Income
8,454,066
1,018,335
7,883,063
688,793
PrideWe are proud of our
successes
TABLE 3
38
Annual Report 2014
Budget 2015
DESCRIPTION BUDGET 2014 ACTUAL 2014 BUDGET 2015
INCOME
Loan interest
Other income
Rental income
Horizon plaza income
Bill of sale
League deposit interest
Interest on investment
Fixeddepositinterest
Other comprehensive income
Total
ExPENDITURE
Personnel
Interest payments
Marketing
Governance
Administration
Sub total
Shortfall/surplus
Transfer to reserve/development fund
Total comprehensive income
Total
7,885,000
120,000
-
48,000
15,000
66,994
81,000
206,683
8,422,676
1,506,708
3,810,000
350,000
858,300
1,031,405
7,556,413
866,263
216,566
649,697
8,422,676
7,868,240
88,772
-
83,381
21,670
35,319
86,894
241,402
28,388
8,454,066
1,609,691
3,429,161
381,216
382,741
1,302,940
7,105,749
1,348,317
329,982
1,018,335
8,454,066
9,173,000
117,000
-
132,000
20,000
65,543
135,495
214,446
-
9,857,484
2,060,969
4,312,500
393,327
516,800
1,456,534
8,740,129
1,117,355
279,339
838,016
9,857,484
Description:The items under:
Personnel: Salaries, Allowances, Travelling, Pension Fund, Health Plan, Entertainment/Refreshments National Insurance,
security and uniforms
Interest Payments: Interest Payments
Marketing: Advertising and Training,
Governance: Insurance, Audit, Provisioning, Annual General Meeting and Statutory Requirements, bad debts, honorarium,
ICU day,League dues.
Administration: Utilities,OfficeSupplies,Rent,Depreciation,Tax,ComputerandOfficeMaintenanceandDonations.
39
Annual Report 2014
Pearls ratio comparison
Area Required Ratio
December Ratio 2013
December Ratio 2014
ProtectionDelinquent Loans greater than 12 months
Delinquent Loans less than 12 months
Effective Financial StructureNet Loans / Total Assets
Savings Deposit / Total Assets
Institutional Capital / Total Assets
Liquid Investment / Total Assets
Financial Investment / Total Assets
Asset QualityTotal Delinquent Loan / Loan Balance
Non-Earning Assets / Total Assets
Rates of ReturnTotalOperatingExpenses/AverageTotalAssets
Total Financial Investment Income / Average Fin Inv.
LiquidityLiquidity Reserves / Savings Deposit
Non-Earning Liquid Assets / Total Assets
Signs of GrowthGrowth in Loans
Growth in Savings
Growth in Members Shares
Growth in Total Assets
100%
35%
70%-80%
70%-80%
min 10%
max20%
max10%
Max5%
Max5%
Max5%
Market rate
Min10%
Max1%
Min10%
Min10%
Min12%
Min10%
106.80%
35%
74.19%
83.13%
11.42%
8.67%
7.71%
5.56%
6.84%
6.86%
3.96%
12.34%
1.91%
9.38%
12.61%
17.43%
11.66%
100.%
35%
71.97%
83.42%
11.79%
12.38%
8.66%
2.49%
5.93%
6.12%
2.64%
15.65%
7.48%
10.71%
14.53%
12.84%
14.13%
Conclusion
TheCreditUnionAssetscontinuetogrowandthatisatestamentofthevisiontobethefinancialinstitutionofchoice
formembers.Amidstthefinancialturbulence,2014wasamoreproductiveyearthan2013asseenbythenetoperating
surplus of $1,319,929 as compared to 2013 of $865,058. Our delinquency ratio has reduced from 5.56% in 2013 to
2.49% at the end of 2014.
TABLE 4
40
Annual Report 2014
G.U.T. Credit Union remains focused and committed and
would employ the necessary strategies to keep improving
on the credit union’s performance.
The Credit Union grew in all key areas surpassing the targets
set by the Board of Directors. Smart Saver accounts have
surpassed 1 million dollars and that is a milestone and
must be applauded.
The budget, which is enclosed, highlights the projections
for 2015.
Sincere thanks must be given to all for their support and
confidenceinthecreditunion.Thisismyfirstyearas
Treasurerandithasbeenalearningexperience.Thanksto
the General Manager and Staff of the Credit Union, my fellow
board members, Credit and Supervisory Committees and
to the general membership for the support, encouragement
and opportunity given to me.
Decima Blake-Thomas
Treasurer
ServiceGiving our members what
they need
41
Annual Report 2014
The Grenada Union of Teachers Co-operative Credit Union Limited
Audited Financial Statement for the year ended 31st December, 2014
41
42
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
WehaveauditedtheaccompanyingfinancialstatementsoftheCreditUnionwhichcomprisethestatementoffinancial
position at 31st December, 2014 and the related statement of comprehensive income, statement of changes in members’
equityandcashflowsfortheyearthenendedandasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.
Responsibility for the Financial StatementsThosechargedwithgovernanceareresponsibleforthepreparationandfairpresentationofthesefinancialstatementsin
accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and
maintaininginternalcontrolsrelevanttothepreparationandfairpresentationoffinancialstatementsthatarefreefrom
material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
Auditors’ ResponsibilityOurresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Weconductedourauditin
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements
andplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreeofmaterial
misstatement.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditor
considersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementinorderto
designauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopiniononthe
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation
ofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.
Opinion
Inouropinion,theaccompanyingfinancialstatementspresentfairlyinallmaterialrespects,thefinancialpositionofthe
CreditUnionasof31stDecember,2014andofitsfinancialperformanceanditscashflowsfortheyearthenendedin
accordance with International Financial Reporting Standards.
GRENADA:
February 18th, 2015 Accountants & business advisers:
Independent Auditors’ Reportto the Members’ of Grenada Union of Teachers Co-operative
Credit Union Limited
43
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Assets Notes2014
$2013
$
Earnings Assets
Investment property
Members’ loans
Loans and receivables financial assets
Available-for-sale financial assets
Total earnings assets
Non-Earning Assets
Property, plant and equipment
Other Assets
Accounts receivable
Inventory
Cash and cash equivalents
TOTAL ASSETS
MEMBERS’ EQUITY AND LIABILITIES
Institutional Capital
Members’ equity shares
Statutory reserve
Accumulated surplus
Other Funds and Reserves
Development fund
Revaluation reserve
Disaster Reserves
Other reserve
TOTAL MEMBERS’ EQUITY
Current Liabilities
Members’ deposits
Non-interest bearing liabilities
TOTAL LIABILITIES
TOTAL MEMBERS’ EQUITY AND LIABILITIES
4
5
6
6
7
8
9
10
11
12
13
14
15
16
8,015,200
83,550,178
6,902,560
2,040,860
100,508,798
6,881,081
1,208,758
26,939
7,469,521
8,705,218
$116,095,097
9,762,414
1,664,611
2,257,597
13,684,622
68,992
3,838,149
113,534
614,727
4,635,402
18,320,024
96,842,152
932,921
97,775,073
$116,095,097
6,864,800
75,465,616
6,197,901
1,645,860
90,174,177
6,959,321
1,939,856
19,380
2,626,037
4,585,273
$101,718,771
8,688,332
1,398,728
1,540,397
11,627,457
41,289
3,838,149
113,534
614,727
4,607,699
16,235,156
84,556,573
927,042
85,483,615
$101,718,771
The notes on pages 47 to 67 form an integral part of these financial statements
: Director : Director
Statement of Financial PositionAt 31st December, 2014
44
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Statement of Comprehensive IncomeAt 31st December, 2014
Notes2014
$2013
$
IncomeLoan interest
Interest on league deposits
Interest on bank deposits
Deduct: Interest on members’ deposits
Net interest income
Other income
Deduct:GeneralandAdministrativeExpenses(ScheduleA)
Net operating surplus before appropriation
Deduct: Transfer to reserve fund
Transfer to development fund
Net surplus for the year
Other comprehensive income:
- Gain on revaluation of investment property
-Revaluationofavailable-for-salefinancialassets
Total comprehensive income for the year
18
7,868,240
35,319
241,402
8,144,961
3,429,160
4,715,801
280,717
4,996,518
3,676,589
1,319,929
263,986
65,996
989,947
28,388
-
28,388
$1,018,335
7,372,725
36,585
184,143
7,593,453
3,347,714
4,245,739
249,612
4,495,351
3,630,293
865,058
173,012
43,253
648,793
78,000
(38,000)
40,000
$688,793
The notes on pages 47 to 67 form an integral part of these financial statements
45
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Mem
bers’Equity Shares
StatutoryReserve
Accumulated
SurplusO
ther Fundand Reserves
Total
Balance at 1st January, 2013
Net m
ovemen
t in sh
ares
En
trance fees
Total co
mpreh
ensive lo
ss for th
e year:
Netpro
fitforth
eyear–previo
uslyrepo
rted
Oth
er com
prehen
sive gain fo
r the year
Transfer fro
m o
peration
s
Transfer to
reserve fun
d
Paym
ent o
f fun
d to
league
League co
ntrib
utio
n to
Western
Cred
it Un
ion
Tivo
li Cred
it Un
ion
merger d
ifferences
Divid
end
s to m
emb
ers
Balance at 31st Decem
ber, 2013
Net m
ovemen
t in sh
ares
En
trance fees
Total co
mpreh
ensive in
com
e for th
e year:
Netpro
fitforth
eyear
Oth
er com
prehen
sive gain fo
r the year
Transfer fro
m o
peration
s
Transfer to
reserve fun
d
Paym
ent o
f fun
d to
league
Interest an
d pen
alty – so
lid go
ld
Divid
end
s to m
emb
ers
Balance at 31st Decem
ber, 2014
7,398,812
1,2
89
,52
0-------- -
8,688,332
1,0
74
,08
2------- -
$9,762,414
1,223,414-
2,3
02--
17
3,0
12---- -
1,398,728-
1,8
97--
26
3,9
86--- -
$1,664,611
1,020,123--
86
5,0
58
78
,00
0-
(26
8,1
56
)-
35
,07
1
(30
,31
8)
(15
9,3
81
)
1,540,397--
1,3
19
,92
9
28
,38
8-
(32
9,9
82
)-
5,5
53
(30
6,6
88
)
$2,257,597
4,590,108---
(38
,00
0)
43
,25
3
51
,89
1
(39
,55
3)-- -
4,607,699----
65
,99
6-
(38
,29
3)- -
$4,635,402
14,232,457
1,2
89
,52
0
2,3
02
86
5,0
58
40
,00
0
21
6,2
65
(21
6,2
65
)
(39
,55
3)
35
,07
1
(30
,31
8)
(15
9,3
81
)
16,235,156
1,0
74
,08
2
1,8
97
1,3
19
,92
9
28
,38
8
32
9,9
82
(32
9,9
82
)
(38
,29
3)
5,5
53
(30
6,6
88
)
$18,320,024
The notes on pages 47
to 67
form an integral part of these financial statem
ents
Statement of Changes in Members’ EquityAt 31st December, 2014
46
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Notes2014
$2013
$
OPERATING ACTIVITIESTotal comprehensive income for the year
Adjustments for:
Depreciation
Net movements in reserves and funds
Gain on revaluation of investment property
Operating surplus before working capital changesDecrease/(increase) in accounts receivable
Increase in non-interest bearing liabilities
(Increase)/decrease in inventory
Net cash provided by operating activities
INVESTING ACTIVITIESNet purchase of property, plant and equipment
Netincreaseinfinancialassets
Net cash used in investing activities
FINANCING ACTIVITIESIncrease in members’ equity shares
Increase in members’ deposits
Increase in members’ loans
Addition to investment property
Dividends paid
Netcashprovidedbyfinancingactivities
Net increase in cash and cash equivalents
Cash and cash equivalents - at the beginning of year
- at the end of year 9
1,018,335
304,123
299,139
(28,388)
1,593,209
731,098
5,879
(7,559)
2,322,627
(225,883)
(1,099,659)
(1,325,542)
1,074,082
12,285,579
(8,084,562)
(1,122,012)
(306,688)
3,846,399
4,843,484
2,626,037
$7,469,521
688,793
282,183
84,559
(78,000)
977,535
(842,476)
153,166
20,947
309,172
(44,909)
(1,826,391)
(1,871,300)
1,289,520
9,465,796
(6,472,978)
-
(159,381)
4,122,957
2,560,829
65,208
$2,626,037
The notes on pages 47 to 67 form an integral part of these financial statements
Statement of Cash FlowAt 31st December, 2014
47
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
1. CORPORATE INFORMATION
The Credit Union was registered on 3rd April, 1983, under the Co-operative Societies Ordinance as amended
by the Co-operative Societies Act No. 8 of 2011 for the purpose of affording members of the Grenada Union
of Teachers the opportunity to accumulate savings and to obtain credit for provident or productive purposes at
reasonable rates of interest.
The Credit Union employed on average thirty-seven (37) persons during the year (2013: 28).
2. SIGNIFICANT ACCOUNTING POLICIES
a. Basis of PreparationThesefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards
(IFRS)andareexpressedinEasternCaribbeanCurrencyDollars.Thefinancialstatementshavebeenprepared
underthehistoricalcostconventionmodifiedbytherevaluationoflandandbuildings.
ThepreparationoffinancialstatementsinconformitywithIFRSrequirestheuseofcertaincriticalaccounting
estimates.ItalsorequiresmanagementtoexerciseitsjudgmentintheprocessofapplyingtheCreditUnion’s
accountingpolicies.Theareasinvolvingahigherdegreeofjudgmentorcomplexity,orareaswhereassumptions
andestimatesaresignificanttothesefinancialstatementsaredisclosedinNote3.
b. New Accounting Standards, Amendments and Interpretations(i) Therearenonewstandards,amendmentsorinterpretationsthatareeffectiveforthefirsttimeforthe
financialyearbeginningonorafter1stJanuary,2014thatwouldbeexpectedtohaveamaterialimpact
ontheCreditUnionfinancialstatement.
(ii) Newstandards,amendmentsandinterpretationsissuedbutnoteffectiveforthefinancialyearbeginning
1st January, 2014 and not early adopted. These either do not apply to the activities of the Credit Union or
havenomaterialimpactonitsfinancialstatements.
Standard Description Effective for annual periods beginning on or after
IAS 1
IAS 16
IAS 16
IAS 19
IAS 27
Presentation of Financial Statements – Disclosure Initiative
Equity Method
Property,plantandequipment–ClarificationofAcceptable
Methods of Depreciation and Amortization
Property, plant and equipment – Bearer Plants
Employeebenefits
Separatefinancialstatements-InvestmentEntities
1st January, 2016
1st January, 2016
1st January, 2016
1st July, 2014
1st January, 2016
Notes to the Financial StatementsAt 31st December, 2014
48
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Standard Description Effective for annual periods beginning on or after
IAS 28
IAS 38
IAS 41
IAS 9
IFRS 10
IFRS 10
IFRS 12
IFRS 11
IFRS 14
IAS 36
IFRS 15
Investments in Associates and Joint Ventures – Sale or
Contribution of Assets between an Investor and it’s Associate
or Joint Venture
IntangibleAssets–ClarificationofAcceptableMethodsof
Depreciation and Amortization
Agriculture – Bearer Plants
FinancialInstruments–Classification,Impairment,Hedge
Accounting and De-recognition
Consolidatedfinancialstatements-SaleorContributionof
Assets between an Investor and its Associate or Joint Venture
Consolidatedfinancialstatements-ApplyingtheConsolidation
Exception
Disclosure of Interest in Other Entities – Applying the
ConsolidationException
Joint Arrangements – Accounting for Acquisition of Interest
in Joint Operations
Regulatory Deferral Accounts
Impairment of assets – Recoverable amount disclosures for
non-financialassets
Revenue from Contracts with Customers
1st January, 2016
1st January, 2016
1st January, 2016
1st January, 2018
1st January, 2016
1st January, 2016
1st January, 2016
1st January, 2016
1st January, 2016
1st January, 2016
1st January, 2014
1st January, 2017
c. Property, Plant and EquipmentLand and buildings are stated at 2010 valuation less subsequent depreciation on buildings. All other assets are
stated at cost less accumulated depreciation.
Subsequent costs are included in the assets carrying amounts or are recognized as a separate asset, as appropriate,
onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCreditUnionand
the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of
comprehensiveincomeduringthefinancialperiodinwhichtheyareincurred.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
b. New Accounting Standards, Amendments and Interpretations (continued)
49
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Increases in the carrying amount arising on revaluation of land and buildings are credited to revaluation surplus
in equity. Decreases that offset previous increases of the same asset are charged against the surplus directly in
equity; all other decreases are charged to the statement of comprehensive income.
Land and buildings are stated at 2010 valuation less subsequent depreciation on buildings. All other assets are
stated at cost less accumulated depreciation.
Subsequent costs are included in the assets carrying amounts or are recognized as a separate asset, as appropriate,
onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtotheCreditUnionand
the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of
comprehensiveincomeduringthefinancialperiodinwhichtheyareincurred.
Increases in the carrying amount arising on revaluation of land and buildings are credited to revaluation surplus
in equity. Decreases that offset previous increases of the same asset are charged against the surplus directly in
equity; all other decreases are charged to the statement of comprehensive income.
Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate
their cost or re-valued amounts to their residual values over their estimated useful lives. The rates used are as
follows: Per annum %
Freehold building 21⁄2
Furniture,fittingsandequipment 10-162⁄3
Computer equipment 162⁄3
Theassetsresidualvaluesandusefullivesarereviewed,andadjustedifappropriate,atthestatementoffinancial
position date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amounts. These are included
in the statement of comprehensive income. When re-valued assets are sold, the amounts included in revaluation
surplus are transferred to accumulated surplus.
d. Investment PropertyInvestment property is property held either to earn rental income or for capital appreciation or for both, but not for
sale in the ordinary course of business, use in the production or supply of goods or services or for administrative
purposes.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
c. Property, Plant and Equipment (continued)
50
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Investment property of the Credit Union comprises of land and building situated at St. John’s Street, St. George’s
andLanceAuxEpinesheldforlong-termrentalyieldsandwhichisnotoccupiedbytheCreditUnion.Investment
property is treated as a long-term investment and is carried at fair value.
e. Financial Assets TheCreditUnionclassifiesitsfinancialassetsintothefollowingcategories:Loansandreceivables,held-to-maturity
andavailable-for-sale.Managementdeterminestheappropriateclassificationofitsfinancialassetsatthetimeof
purchase and re-evaluates this designation at every reporting date.
Loans and receivables
Investmentsclassifiedasloansandreceivablesarenon-derivativefinancialassetswithfixedordeterminable
paymentsthatarenotquotedonanactivemarket.Theyareincludedincurrentassets,exceptformaturities
greaterthantwelve(12)monthsafterthestatementoffinancialpositiondate.Theseareclassifiedasnon-current
assets.TheCreditUnion’sloansandreceivablescompriseoftreasurybills,corporatebondsandfixeddeposits
which are stated at cost.
Available-for-sale
Investmentsareclassifiedasavailable-for-saleastheyareintendedtobeheldforanindefiniteperiod.These
investments may be sold in response to needs for liquidity or changes in interest rates or equity prices. These
investments are carried at fair value, based on quoted market prices where available. However, where a reliable
measure is not available, cost is appropriate. The majority of these investments continue to be carried at cost as
in almost all cases they are not traded on an active market and methods of reasonable estimation of fair value are
unavailable. Where available-for-sale investments are carried at fair value unrealized gains or losses are recognized
directly in equity until the investment is derecognised or determined to be impaired at which time the cumulative
gainorlosspreviouslyrecordedinequityisrecognizedinprofitorloss.Available-for-saleinvestmentsareincluded
in non-current assets unless management intends to dispose of the investment within twelve (12) months of the
statementoffinancialpositiondate.
Fair Value
Fairvalueamountsrepresenttheapproximatevaluesatwhichfinancialinstrumentscouldbeexchangedincurrent
transactionsbetweenwillingparties.However,thematurityoftheCreditUnion’sfinancialinstrumentslackan
available trading market and therefore it is not possible to determine independently the estimated fair values. In
thesecasesthefairvaluesofthefinancialinstrumentsarethereforeconsideredtoapproximatetheirbookvalue.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
d. Investment Property (continued)
51
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
f. Financial InstrumentsFinancialinstrumentsarecontractsthatgiverisetoafinancialassetofoneentityandafinancialliabilityorequity
instrument of another entity.
FinancialassetsandfinancialliabilitiesarerecognisedontheCreditUnion’sstatementoffinancialpositionwhen
the Credit Union becomes a party to the contractual provisions of the instrument.
Recognition and Measurement
Allregularwaypurchasesandsalesoffinancialassetsarerecognisedorderecognisedonthetradedatethatis
the date on which the Credit Union commits itself to purchase or sell an asset. A regular way purchase and sale of
financialassetsisapurchaseorsaleofanassetunderacontractwhosetermsrequiredeliveryoftheassetwithin
the time frame established generally by regulation or convention in the market place concerned.
Whenfinancialassetsarerecognisedinitially,theyaremeasuredatfairvalueoftheconsiderationgivenplus
transaction costs directly attributable to the acquisition of the asset.
Financialassetsarederecognisedwhenthecontractualrightstoreceivethecashflowsexpireorwheretherisks
and rewards of ownership of the assets have been transferred.
Impairment of financial assets
TheCreditUnionassessesateachstatementoffinancialpositiondatewhetherthereisobjectiveevidencethat
afinancialassetorgroupoffinancialassetsisimpaired.
Afinancialassetorgroupoffinancialassetsisimpairedandimpairmentlossesareincurredifandonlyif,thereis
objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the
asset(a“lossevent”)andthatevent(orevents)hasanimpactontheestimatedfuturecashflowsofthefinancial
assetorgrouporfinancialassetsthatcanbereliablyestimated.
Objectiveevidencethatafinancialassetsorgroupoffinancialassetsisimpairedincludesobservabledatathat
comes to the attention of the Credit Union about the following loss events:
(i) Significantfinancialdifficultyoftheissuerorobligator.
(ii) A breach of contract, such as default or delinquency in interest or principal payments.
(iii) Itisbecomingprobablethattheborrowerwillenterinbankruptcyorotherfinancialreorganization.
(iv) Thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficulties.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
52
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
(v) Observabledataindicatingthatthereisameasurabledecreaseintheestimatedcashflowsfromagroupof
financialassetssincetheinitialrecognitionofthoseassets,althoughthedecreasecannotyetbeidentified
withindividualfinancialassets,includingadversechangesinthepaymentstatusofborrowersintheCredit
Union or national or economic conditions that correlate with defaults on assets in the Credit Union.
TheCreditUnionfirstassesseswhetherobjectiveevidenceofimpairmentexistsindividuallyforfinancialassets
thatareindividuallysignificant.IftheCreditUniondeterminesthatnoobjectiveevidenceofimpairmentexistsfor
anindividuallyassessedfinancialasset,itincludestheassetinagroupoffinancialassetswithsimilarcreditrisk
characteristics and impairment and for which an impairment loss is or continues to be recognised are not included
in a collective assessment of impairment.
Impairment losses are recorded in an allowance account and are measured and recognised as follows:
(i) Financial assets measured at amortised cost
The difference between the asset’s carrying amount and the present value of the estimated future cash
flowsdiscountedatthefinancialasset’soriginaleffectiveinterestrateisrecognisedinthestatementof
comprehensive income.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related
objectively to an event occurring after the impairment was recognised (such as improvement in the debtor’s
creditrating).Thepreviouslyrecognisedlossisreversedtotheextentthatthecarryingamountofthefinancial
assetdoesnotexceedwhattheamortisedcostwouldhavebeenhadtheimpairmentnotbeenrecognised
at the date that the impairment is reversed. The amount of the reversal is recognised in the statement of
comprehensive income.
(ii) Financial assets measured at cost
The difference between the assets carrying amount and the present value of the estimated future cash
flows(excludingfuturecreditlossesthathavenotbeenincurred)discountedatthecurrentmarket’srate
ofreturnforsimilarfinancialassetsisrecognisedinthestatementofincome.Theselossesarenotreversed.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
f. Financial Instruments (continued)
Impairment of financial assets (continued)
53
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Financial Liabilities
Whenfinancialliabilitiesarerecognisedinitially,theyaremeasuredatfairvalueoftheconsiderationgivenplus
transaction costs directly attributable to the acquisition of the liability. Financial liabilities are re-measured at
amortised cost using the effective interest method.
Financialliabilitiesarederecognisedwhentheyareextinguished,thatis,whentheobligationspecifiedinthe
contractisdischarged,cancelledorexpired.Thedifferencebetweenthecarryingamountofafinancialliability
extinguishedandtheconsiderationpaidisrecognisedinthestatementofcomprehensiveincome.
g. Cash and Cash EquivalentsCash and cash equivalents comprises of cash on hand and at bank. Bank overdraft is included as a component of
cashandcashequivalentsforthepurposeofthecashflowstatement.Bankoverdraftisshownwithinborrowings
incurrentliabilitiesonthestatementoffinancialposition.
h. ProvisionsProvisions are recognised when the Credit Union has a present legal or constructive obligation, as result of past
events,ifitisprobablethatanoutflowofresourceswillberequiredtosettletheobligationandareliableestimate
of the amount can be made.
i. Revenue RecognitionRevenue comprises the fair value of the consideration received or receivable in the ordinary course of the Credit
Union’s activities. Revenue is shown net of rebates. Revenue is recognised as follows:
(i) Sales of services
Sales of services are recognised in the accounting period in which the services are rendered.
(ii) Interest and investment income
Interest income and investment income is recognized on an accrual basis using the effective interest method.
j. Shares EquityMembers’Ordinarysharesareclassifiedasequity.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
f. Financial Instruments (continued)
54
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
k. Trade payables Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
businessfromsuppliers.Accountspayableareclassifiedascurrentliabilitiesifpaymentisduewithinoneyearor
less, if not, they are presented as non-current liabilities.
Trade payables are recognised initially at fair value and subsequently measured at amortized cost using the
effective interest rate method.
l. BorrowingsBorrowings are recognised at fair value net of transaction cost incurred. Borrowings are subsequently stated
at amortized cost: any difference between the proceeds, net of transaction cost, and the redemption value is
recognisedinthestatementofcomprehensiveincomeovertheperiodofborrowings.Borrowingsareclassified
as current liabilities unless the Credit Union has an unconditional right to defer settlement of the liability for at
leasttwelve(12)monthsafterthestatementoffinancialposition.
m. Leases Assets leased out under operating leases are included in property, plant and equipment or investment property
inthestatementoffinancialposition.Theyaredepreciatedovertheirexpectedusefullivesonabasisconsistent
with similar property, plant and equipment. Rental income is recognized on a straight-line basis over the lease
term. Leases entered into by the Credit Union are all operating leases. Payments made under operating leases
arechargedtotheprofitandlossaccountinaccordancewiththetermsofthelease.
n. DividendsDividends that are proposed and declared during the period are accounted for as an appropriation of retained
earnings in the statement of changes in members’ equity.
Dividendsthatareproposedanddeclaredafterthestatementoffinancialpositiondatearenotshownasaliability
onthestatementoffinancialpositionbutaredisclosedasanotetothefinancialstatements.
o. Related partiesPartiesareconsideredtoberelatedifonepartyhastheabilitytocontroltheotherpartyorexercisesignificant
influenceovertheotherpartyinmakingfinancialoroperatingdecisions.Transactionsenteredintowithrelated
parties in the normal course of business are carried out on commercial terms and conditions during the year.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
55
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
p. Foreign currencies Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets
andliabilitiesdenominatedinforeigncurrenciesarere-translatedattherateofexchangerulingatthestatement
offinancialpositiondate.Theresultingprofitsandlossesaredealtwithinthestatementofcomprehensiveincome.
There are no foreign currency borrowings.
q. Finance charges Financechargesarerecognizedinthestatementofcomprehensiveincomeasanexpenseintheperiodinwhich
they are incurred.
3. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS IN APPLYING ACCOUNTING POLICIES
Thedevelopmentofestimatesandtheexerciseofjudgmentinapplyingaccountingpoliciesmayhaveamaterial
impactontheCreditUnion’sreportedassets,liabilities,revenuesandexpenses.Theitemsthatmayhavethemost
effectonthefinancialstatementsaresetoutbelow.
Valuation of property
The Credit Union utilizes professional valuators to determine the fair value of its properties. Valuations are
determined through the application of a variety of different valuation methods which are all sensitive to the
underlying assumptions chosen.
Impairment of loans
Provisionismadefordoubtfuldebtsbasedonthespecificidentificationofdoubtfulbalances.Asdebtsbecome
uncollectible they are written off against the provision.
Property, plant and equipment
TheCreditUnionexercisejudgmentindeterminingwhetherfutureeconomicbenefitscanbederivedfrom
expenditurestobecapitalizedandestimatestheusefullivesandresidualvalueoftheseassets.
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
56
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
4. INVESTMENT PROPERTY
Balance at 1st January,
2014
Addition/Revaluation
during the year
Balance at 31st December,
2014
Balance at 31st December,
2013
Horizon Plaza property
LanceAuxEpinesproperty
6,864,800
-
$6,864,800
36,000
1,114,400
$1,150,400
6,900,800
1,114,400
$8,015,200
6,864,800
-
$6,864,800
5. MEMBERS’ LOANS
2014 2013
Total loans
Less: Provision for doubtful debts
Balance at 31st December, 2014
84,743,822
(1,193,644)
$83,550,178
76,935,610
(1,469,994)
$75,465,616
6. FINANCIAL ASSETS
(i) LOANS AND RECEIVABLES
Grenville Co-operative Credit Union Limited
Clico International Life Insurance Limited
-ExecutiveFlexiblepremiumannuity
GrenadaCo-operativeBankLimited–Fixeddeposit
Public Service Co-operative Credit Union Limited
- Special savings account
-Fixeddeposit
Grenada Cooperative Credit Union League Limited
-Fixeddeposit
- Regular deposit
Grenada Electricity Services Limited – 10 year corporate bonds
Government of Grenada – 365 day Treasury bill
Government of Antigua & Barbuda – 180 day Treasury bill
Less: Provision for impairment
Balance at 31st December, 2014
787,500
2,000,000
1,584,576
260
1,991,016
1,118,861
298,312
93,750
520,760
507,525
8,902,560
(2,000,000)
$6,902,560
750,000
2,000,000
1,536,186
260
1,923,600
1,089,392
292,463
112,500
493,500
-
8,197,901
(2,000,000)
$6,197,901
57
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
(ii) AVAILABLE FOR SALE
2014 2013
4,500 preference shares in Anric Company Limited
8,320 ordinary shares in The Grenada Cooperative Credit Union League
Limited
59,840 ordinary shares in Grenada Co-operative Bank Limited
8,916 ordinary shares in RBTT Bank Grenada Limited
4,000 ordinary shares in Republic Bank (Grenada) Limited
24,376 ordinary shares in Grenada Electricity Services Limited – market
value
1,000 ordinary shares in Jonas Browne & Hubbard (Grenada) Limited
10,000 ordinary shares in Corporate Enterprise Finance Facility Limited
525,000
41,600
418,880
80,244
182,000
268,136
25,000
500,000
$2,040,860
630,000
41,600
418,880
80,244
182,000
268,136
25,000
-
$1,645,860
6. FINANCIAL ASSETS (continued)
58
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
7.
PR
OP
ER
TY
, PLA
NT
AN
D E
QU
IPM
EN
T
BuildingFreehold
Properties
Furniture,Fixtures and
Equipment
Computer
Equipment
Total
Balance at 1st January, 2013C
ost/valu
ation
Accu
mu
lated d
epreciation
NET BO
OK VA
LUE
For the year ended 31st Decem
ber, 2013O
penin
g bo
ok valu
e
Ad
ditio
ns fo
r the year
Depreciatio
n ch
arge for th
e year
NET BO
OK VA
LUE
Balance at 1st January, 2013C
ost/valu
ation
s
Accu
mu
lated d
epreciation
NET BO
OK VA
LUE
For the year ended 31st Decem
ber, 2014O
penin
g bo
ok valu
e
Ad
ditio
ns fo
r the year
Depreciatio
n ch
arge for th
e year
NET BO
OK VA
LUE
Balance at 31st Decem
ber, 2014C
ost/valu
ation
Accu
mu
lated d
epreciation
NET BO
OK VA
LUE
6,7
04
,40
4
(63
3,0
82
)
$6,071,322
6,0
71
,32
2-
(16
7,6
10
)
$5,903,712
6,7
04
,40
4
(80
0,6
92
)
$5,903,712
5,9
03
,71
2
55
,65
0
(16
9,0
01
)
$5,790,361
6,7
60
,05
4
(96
9,6
93
)
$5,790,361
67
8,2
55
-
$678,255
67
8,2
55-
-
$678,255
67
8,2
55
-
$678,255
67
8,2
55-
-
$678,255
67
8,2
55
-
$678,255
79
5,5
90
(48
6,9
47
)
$308,643
30
8,6
43
29
,63
5
(73
,27
1)
$265,007
82
5,2
25
(56
0,2
18
)
$265,007
26
5,0
07
74
,69
7
(80
,70
7)
$258,997
89
9,9
22
(64
0,9
25
)
$258,997
56
9,9
57
(43
1,5
82
)
$138,375
13
8,3
75
15
,27
4
(41
,30
2)
$112,347
58
5,2
31
(47
2,8
84
)
$112,347
11
2,3
47
95
,53
6
(54
,41
5)
$153,468
68
0,7
67
(52
7,2
99
)
$153,468
8,7
48
,20
6
(1,5
51
,61
1)
$7,196,595
7,1
96
,59
5
44
,90
9
(28
2,1
83
)
$6,959,321
8,7
93
,11
5
(1,8
83
,79
4)
$6,959,321
6,9
59
,32
1
22
5,8
83
(30
4,1
23
)
$6,881,081
9,0
18
,99
8
(2,1
37
,91
7)
$6,881,081
59
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
8. ACCOUNTS RECEIVABLE
2014 2013
Sundry debtors
Other receivable
Government of Grenada receivable
Balance at 31st December, 2014
113,640
313,961
781,157
$1,208,758
72,463
255,036
1,612,357
$1,939,856
9. CASH AND CASH EQUIVALENTS
Cash on hand
Republic Bank (Grenada) Limited
- Current account – St. George’s
- Current account – Carriacou
RBTT Bank Grenada Limited
- Savings account
- Current account
Grenada Co-operative Bank Limited
- School current account
- Current account
Government of St. Lucia – 91 day Treasury bill
Cashandcashequivalentsinthestatementofcashflow
1,437,600
35,971
917,618
3,255
48,707
704
4,530,029
495,637
$7,469,521
1,223,932
36,422
125,824
3,255
44,267
704
1,191,633
-
$2,626,037
10. EQUITY SHARES
Theseareofanominalvalueof$5.00whenfullypaidup.Eachmemberisrequiredtoownsixtysharesof$5.00
each, which are payableoversix(6)months.
11. STATUTORY RESERVE
Balance at 1st January, 2014
Add: Entrance fees
Transfer from operations
Balance at 31st December, 2014
1,398,728
1,897
263,986
$1,664,611
1,223,414
2,302
173,012
$1,398,728
60
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
In accordance with Section 125 (4) of the Co-operative Societies Act No. 8 of 2011, at least 20% of the surplus
for the year shall be transferred to a Reserve Fund. Entrance fees collected during the year are also credited to
this reserve.
12. DEVELOPMENT FUND
2014 2013
Balance at 1st January, 2014
Transfer from operations
Payment to league
Balance at 31st December, 2014
41,289
65,996
(38,293)
$68,992
37,589
43,253
(39,553)
$41,289
13. REVALUATION RESERVE
Balance at 31st December, 2014 $3,838,149 $3,838,149
The Credit Union’s property was revalued in March, 2009 by Leslie S. Barry (Barry’s Engineering) professional
valuator,usingtheopenmarketmethod.Thisrevaluationresultedinanexcessoverbookvalueof$3,838,149.
14. OTHER RESERVE
Thisamountrepresentsincreaseinthefairvalueofavailable-for-salefinancialassets.
15. MEMBERS’ DEPOSITS
Regular savings
Term deposits
Special savings
Miscellaneous savings
Solid Gold
Mortgage savings
School accounts
Smart saver
Balance at 31st December, 2014
47,554,375
29,798,041
3,536,247
222,157
13,825,149
975
802,612
1,102,596
$96,842,152
39,433,325
28,443,644
2,843,424
163,586
12,087,047
2,303
670,235
913,009
$84,556,573
11. STATUTORY RESERVE (continued)
61
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
16. NON-INTEREST BEARING LIABILITIES
2014 2013
Accrued interest – members’ savings and deposits
Other liabilities
Provision for audit
Balance at 31st December, 2014
712,630
207,791
12,500
$932,921
736,244
178,298
12,500
$927,042
Interest is payable on these amounts at rates varying between 3.25 and 6.5% per annum.
17. INCOME TAX
TheCreditUnionisexemptfromthepaymentofIncomeTaxunderSection25(P)oftheIncomeTaxAct1994.
18. OTHER INCOME
Dividends
Rental income
Sundry
86,894
83,381
110,442
$280,717
89,690
66,491
93,431
$249,612
19. PRIOR YEAR ADJUSTMENT
Interestexpenseunderstated $ - $99,208
20. FINANCIAL RISK MANAGEMENT
TheCreditUnion’sactivitiesexposeittothefollowingriskfromtheuseoffinancialinstruments:
Credit risk
Liquidity risk
Currency risk
Interest rate
Operational risk
62
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Risk management structureThe Board of Directors is responsible for the overall risk management approach and for approving the risk
strategies, principles, polices and procedures. Day to day adherence to risk principles are carried out by the
executivemanagementoftheCreditUnionincompliancewiththepoliciesapprovedbytheBoardofDirectors.
The Credit Union’s risk management policies are established to identify and analyse the risk faced by the Credit
Union, to set appropriate risk limits and controls, to monitor risks and adherence to limits. Risk management policies
andsystemsarereviewedregularlytodeflectchangesinmarketconditions,productsandservicesoffered.The
Credit Union through its training and management standards and procedures, aims to develop a disciplined and
constructive control environment, in which all employees understand their roles and obligations.
The Board has established two committees, the Credit Committee and the Supervisory Committee, which are
responsibleforthedevelopingandmonitoringtheCreditUnion’riskmanagementpoliciesintheirspecifiedareas.
Both committees report to the Board of Directors and their activities are as follows:
Credit CommitteeThe Credit Committee is elected by the members at the annual general meeting. This committee considers all
applications for loans and makes recommendations to the Board in respect of the applications and performs such
duties as prescribed in the articles of the Co-operative Act, the regulations and the By-Laws of the Credit Union.
Supervisory CommitteeThe Supervisory Committee is elected by the members at the annual general meeting. The supervisory committee
shallexaminethebooksoftheCreditUnion,confirmthedepositsofthemembersandperformsuchotherduties
as are prescribed by the Co-operative Act, the regulations and the By-Laws of the Credit Union.
Credit risk:CreditriskistheriskoffinanciallosstotheCreditUnionifamemberorcounter-partytoafinancialinstrumentfails
to meet its contractual obligations and arises principally from the Credit Union’s receivables from the inability of
members to repay loans, the inability of investments and cash and cash equivalents to be recuperated or interest
on them to be realized, and receivables to not materialize.
Management credit risk The Credit Union’s main objective as regards to credit risk is to protect against any unwanted counterparty credit
exposures,maintaincreditriskatamanageablelevelandidentifyandavoidmaterialcreditfailurethatwould
impart earnings.
TheCreditUnionmeasuresandmanagescreditriskonaaggregatebasisbyincludingallexistingrelationships
with a particular customer or related entity of the same corporate organization. When measuring credit risk, the
Credit Union takes a conservative view towards uncertainty and error in the direction of overstating the risk.
Loans Exposuretocreditriskismanagedthroughregularanalysisoftheabilityofborrowerstosettleoutstanding
balances and meet repayment obligations, and by changing lending limits when appropriate.
20. FINANCIAL RISK MANAGEMENT (continued)
63
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Other financial assetsWithrespecttocreditriskarisingfromtheotherfinancialassetsoftheCreditUnion,whichcomprisecashand
cashequivalentsandinvestments,theCreditUnion’sexposuretocreditriskarisesfromdefaultofthecounter-
party.TheCreditUnionseekstoholditsfundswithfinancialinstitutionswhichmanagementregardsassound.
The markets for investments are monitored regularly to ensure the returns are guaranteed.
Exposure to credit riskTheCreditUnion’smaximumexposuretocreditriskbeforecollateralheldandothercreditenhancementisas
follows:
2014 2013
Cash and cash equivalents
Financial assets
Accounts receivable
Members’ loans
7,469,521
8,943,420
1,208,758
83,550,178
$101,171,877
2,626,037
7,843,761
1,939,856
75,465,616
$87,875,270
Concentration of credit risk:
Cash and Cash
EquivalentsFinancial
AssetsAccounts
ReceivablesMembers’
Loans Total
Construction
Business
Land
Finance
Services
Education
Personal
Vehicle
Government
Balance at 31st December, 2014
-
-
-
6,973,884
-
-
-
-
495,637
$7,469,521
-
-
-
5,044,476
2,870,660
-
-
-
1,028,285
$8,943,421
-
10,500
-
199,615
28,057
-
217,485
-
781,157
$1,236,814
26,748,268
1,928,755
3,601,008
14,110,683
3,160,389
4,337,777
23,273,013
6,390,286
-
$83,550,179
26,748,268
1,939,255
3,601,008
26,328,658
6,059,106
4,337,777
23,490,498
6,390,286
2,305,079
$101,199,935
20. FINANCIAL RISK MANAGEMENT (continued)
64
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Cash and Cash
EquivalentsFinancial
AssetsAccounts
ReceivablesMembers’
Loans Total
Construction
Business
Land
Finance
Services
Education
Personal
Vehicle
Government
Balance at 31st December, 2013
-
-
-
2,626,037
-
-
-
-
-
$2,626,037
-
-
-
4,891,170
2,459,091
-
-
-
493,500
$7,843,761
-
-
-
111,520
50,107
-
165,872
-
1,612,357
$1,939,856
25,091,447
2,177,471
2,200,075
9,389,852
3,160,389
4,318,091
22,089,010
7,039,281
-
$75,465,616
25,091,447
2,177,471
2,200,075
17,018,579
5,669,587
4,318,091
22,254,882
7,039,281
2,105,857
$87,875,270
Theentityhascategorisedthecreditriskexposurefromthefollowingnon-performingfinancialassets.
Past due and impaired
Superior Desirable Acceptable Substandard Total
Balance at 31st December, 2014Members’ loans
Balance at 31st December, 2013Members’ loans
$759,102
$185,926
$553,028
$179,236
$271,459
$355,042
$765,866
$1,548,205
$2,349,455
$2,268,409
The loan categories are as follows:
Superior – Thesecounter-partieshavestrongfinancialpositions.Facilitiesarewellsecuredandthebusinesses
have a good track record.
Desirable – Thesecounter-partieshaveagoodfinancialposition.Facilitiesarereasonablysecuredandthe
underlying businesses are performing well.
Acceptable –Thesecounter-partiesareofaverageriskwithafairfinancialposition.Businessesmaybenewor
industry may be subject to more volatility, and facilities typically have lower levels of securities.
Substandard – Non-performing and individually impaired.
20. FINANCIAL RISK MANAGEMENT (continued)
Concentration of credit risk (continued):
65
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Analysisoffinancialassetsthatarepastduebutnotimpaired:
Past due and impaired
Neither past due nor
impaired
1-3 months
3-6 months
6-12 months
Over 1 year
Total
2014
2013
$81,200,723
$73,197,207
$759,102
$785,285
$553,028
$513,033
$271,459
$352,390
$765,866
$617,701
$83,550,178
$75,465,616
Analysisoffinancialassetsindividuallyimpaired:
Past due and impaired
Neither past due nor
impaired
1-3 months
3-6 months
6-12 months
Financial assets
Members’ loans
$2,000,000
$2,349,455
$2,000,000
$1,193,644
$ -
$1,155,811
$ -
$2,268,409
Write off policyThe Credit Union writes off a loan when it determines that the loan is uncollectible after considering information
suchastheoccurrenceofsignificantchangesintheborrower’sfinancialpositionsuchthattheborrowercanno
longermeettheobligation,andthatproceedsfromcollateralwillnotbesufficienttorecovertheentireexposure.
Provision for loan lossesAllowance for doubtful loans are based on the requirement of The Co-operative Societies Act – (Act. No. 20 of 1996)
andthePEARLSstandardswhichrecommendsthatdelinquentloanslessthanthreehundredandsixtyfive(365)
daysinarrearsareprovidedfortotheextentof35%whilethoseinexcessofthatperiodareprovidedforinfull.
CollateralThe amount and type of collateral required depends on an assessment of the credit risk of the counter-party.
20. FINANCIAL RISK MANAGEMENT (continued)
66
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
The Credit Union has guidelines that set out the acceptability of different types of collateral.
The types of collateral held by the Credit Union are registered mortgages over property, bills of sale on motor
vehicles and other assets, liens on deposits and shares, guarantees and promissory notes.
Estimates of fair value are based on the value of collateral assessed at the time of borrowing, and generally are
notupdatedexceptwhenaloanisindividuallyassessedasimpaired.
Liquidity risk:LiquidityriskistheriskthattheCreditUnionwillencounterdifficultyinmeetingobligationsfromitsfinancial
liabilities.
Management of liquidity riskTheCreditUnion’sapproachtomanagingliquidityistoensure,asfaraspossible,thatitwillalwayshavesufficient
liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Credit Union’s reputation. The Treasury department of the Credit Union is
responsible for the overall management of liquidity. In addition, liquidity and funding risk, and related processes
and policies are overseen by management of the Credit Union.
The management of liquidity of the Credit Union includes:
Holdingfinancialassetswherethereisaliquidmarketandthereforereadilysaleabletomeetliquidity
needs.
Holdingfinancialassetswhicharenottradedinaliquidmarket,butwhichcanbeexpectedtogenerate
cashflowsthatwillbeavailabletomeetcashoutflowsonliabilities.
Monitoringstatementoffinancialpositionliquidityratiosagainstinternalandregulatoryrequirements.
Maintainingdebtfinancialplans.
Monitoring depositor’s concentration in order to avoid undue reliance on large individual depositors
andensuringasatisfactoryoverallfundingmix.
Maintaining liquidity and funding contingency plans. These plans identify early indicators of stress
conditionsanddescribeactionstobetakenintheeventofdifficultiesarisingfromsystemicorother
crises while minimizing adverse long-term implications for the Credit Union.
Thecompany’sfinancialliabilityareallduewithinoneyear.
Currency rate risk:Currencyrateriskistheriskthatthevalueofcashflowsofafinancialinstrumentwillfluctuateduetochangesin
foreignexchangerates.TheCreditUnionoperatesprimarilyintheEasternCaribbeanDollarsandisthereforenot
subjecttosignificantforeigncurrencyrisk.However,someofitstransactionsareinUnitedStatesDollarsbutas
theEasternCaribbeanDollarispeggedtotheUnitedStatesDollar,therearenosignificantcurrencyriskexposure.
20. FINANCIAL RISK MANAGEMENT (continued)
Collateral (continued):
67
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
Interest rate risk:Interestrateriskistheriskthatfairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseof
changes in market interest rates.
Management of interest risk rateTheCreditUnion’sexposuretointerestriskismanagedthroughthematchingoffundingproductswithfinancial
services and monitoring market conditions and yields.
Exposure to interest rate riskFloatingrateinstrumentexposetheCreditUniontocashflowinterestriskwhereasfixedrateinstrumentsexpose
the Credit Union to fair value interest rate risk.
Operational risk Operational risk is the risk or direct or indirect loss arising from a wide variety of causes associated with the Credit
Union’sprocesses,personal,technologyandinfrastructure,andfromexternalfactorsotherthancredit,market
and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards
of good corporate behaviour. Operational risk arises from all of the Credit Union’s operations. The Credit Union’s
objectiveistomanageoperationalrisksoastobalancetheavoidanceoffinanciallossesanddamagetotheCredit
Union’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and
creativity. The primary responsibility for development and implementation of controls to address operational risk
is assigned to senior management. This responsibility is supported by the development of overall Credit Union
standards for the management of operational risk in the following areas:
Requirements for appropriate segregation of duties, including the independent authorization of
transactions
Requirements for the reconciliation and monitoring of transactions.
Compliance with regulatory and other legal requirements
Documentation of controls and procedures
Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and
procedurestoaddresstherisksidentified
Requirements for the reporting of operational losses and proposed remedial action
Development of contingency plans
Training and professional development
Risk mitigation, including insurance where this is effective
20. FINANCIAL RISK MANAGEMENT (continued)
68
Annual Report 2014
Notes to the Financial StatementsAt 31st December, 2014 (continued)
GENERAL AND ADMINISTRATIVE EXPENSES
SCHEDULE A
2014 2013
Salaries and wages
National Insurance contributions
Pension
League dues
Insurance
Stationery and printing
Rent
Subscriptions and donations
Uniforms
Audit and accounting fee
Legal and professional fees
Advertising
Annual General Meeting
Education and seminars
Entertainment
Interest and bank charges
Telephone, electricity and cable
Honorarium
Healthbenefit
Propertytax
Computer maintenance
Repairs and maintenance
Water rates
CreditUnionDayexpenses
Officesupplies
Depreciation
Officersallowance
Travel
Miscellaneous Security
HorizonPlazaexpenses
30th Anniversary celebrations
1,259,489
50,799
54,100
115,000
277,977
66,715
206,985
36,532
3,332
12,500
39,452
197,053
57,540
184,163
36,834
6,984
319,086
35,050
18,585
9,077
18,595
75,163
4,499
22,753
14,590
304,127
22,500
62,303
6,128
101,748
56,930
-
$3,676,589
1,093,488
47,044
50,170
115,000
286,828
50,252
204,359
34,216
17,140
15,289
81,664
203,874
85,038
161,387
29,650
55,175
280,841
35,800
19,658
8,763
19,930
30,103
9,267
15,289
14,457
282,183
22,500
44,491
4,647
96,682
38,661
176,447
$3,630,293
Schedule of General and Administrative Expenses At 31st December, 2014
69
Annual Report 2014
Resolutions
1. Approval of 2015 Budget
Whereas, the Bye-laws Article XI Section 37 (2) (h) mandate that the Budget should be approved by
the Annual General Meeting.
And whereas the Budget for 2015 is presented to this Annual General Meeting.
Be it resolved that the Budget as presented and/or amended be approved by this Annual General Meeting.
2. Approval for Borrowing Limit
Whereas, the Bye-Laws, Article XI Section 37 (2) (m) Stipulates that the Annual General Meeting must
setthemaximumborrowinglimitbytheCreditUnion
BeitresolvedthatthemaximumborrowinglimitfortheCreditUnionfor2015be$3,000,000.
3. Whereas the Accounting Firm Parnell-Kerr Forster (PKF) continues to provide satisfactory service
to the G.U.T. Co-operative Credit Union as its Auditors.
Be it resolved that PKF be reappointed as the auditor of the G.U.T. Co-operative Credit Union for 2015.
69
70
Annual Report 2014
Board of Directors
Year Name Term Expiration Region
2012
2012
2012
2012
2013
2013
2013
2013
2013
2014
2014
2014
2014
Janis Henry
Lystra Mark
Kim Parris
Alma Du Bois-Calliste
David Thomas
Carl Andall
Elizabeth Peters
Henry Stiell
Egbert La Geer
Decima Blake-Thomas
Andre Martin
Eddison Francis
Miguel Fortune
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
3 years
2015
2015
2015
2015
2016
2016
2016
2016
2016
2017
2017
2017
2017
St. George
St. Patrick
Independent
St. John
Independent
Independent
Independent
Carriacou
Independent
Independent
St. Mark
St. David
St. Andrew
Supervisory Committee2013
2014
2013
2014
2014
Lisa Lewis
Lu-Melina Fortune
Randy Boyke Cadet
Imogene Howard
Sobrina La Rose
2 years
1 year
2 years
3 years
3 years
2015
2015
2015
2017
2017
Credit Committee2012
2012
2012
2013
2014
*Joyce John
Magdalene Carmichael
Kevin Andall
*Retesha Smith-Boyd
Kelley Calliste
3 years
3 years
3 years
3 years
3 years
2015
2015
2015
2016
2017
*Ms. Joyce John resigned and was replaced by Mr. Wayne Horsford.
*Ms. Retesha Smith-Boyd resigned and was replaced by Ms. Irva Alexander.
71
Annual Report 2014
What’sgoodforyouisgoodforyourcreditunion.Becausecreditunionsarenot-for-profitfinancialservicecooperatives—
ownedandcontrolledbythepeoplewhousetheirservices—theyworkforthebenefitofmembers.Thatmeansyouropinions
andexpectationscount.Infact,memberneedsandstandardsdrivethecreditunion’sproductandserviceofferings,and
are the true measure of a credit union’s success.
Because you’re the force behind our credit union’s growth and prosperity, and because credit unions work for members,
youandfellowmemberscanexpect:
1. Afinanciallysecureinstitutioncomplyingwiththelawsandregulationsthatgovernit.
2. Asolidfinancialcondition;responsiblemanagementofmembers’financialresources.
3. Highly principled employees demonstrating integrity, professionalism, and ethical behavior.
4. Respectful, courteous, timely, and unbiased personal service.
5. Confidentialrecordsandtransactions.
6. The opportunity for your opinions to be heard and valued.
7. An equal vote with other members, regardless of account balance.
8. Volunteer credit union board and committee membership opportunities if you qualify and are elected.
9. Dividend/interest and loan rates that compete with and, whenever possible, offer advantages over other
financialinstitutions’rates.
10. Truthful advertising and disclosure of product and service rates, risks, charges, obligations, terms and conditions.
11. Timelynotificationandcorrectionofcreditunionerrorsorinaccuracies.
12. Timely response to loan requests, account problems, or suggestions.
13. Recourse appeal and fair resolution of problems.
14. Consumer information to help you make wise credit, saving, and purchasing decisions, and to effectively
manage your money.
Member Bill ofRights
72
Annual Report 2014
Notes
CREDIT UNION PRAYER(PRAYER OF ST. FRANCIS OF ASSISI)
Lord, make me an instrument of thy peace
Where there is hatred, let me sow love
Where there is injury, pardon
Where there is doubt, faith
Where there is despair, hope
Where there is darkness, light and
Where there is sadness, joy
O Divine Master, grant that I may not
So much seek to be consoled as to console
To be understood as to understand
To be loved as to love
For it is in giving that we receive
It is in pardoning that we are pardoned and
It is in dying that we are born to eternal life.
Bless, O Lord, our deliberations and grant that
Whatever we may say and do will have thy
Blessing and guidance through Jesus Christ Our Lord
Amen
With us there are no barriers ‘cause we are all the same
The more of us the happier the louder we’ll proclaim
That we are owners’ members our rule is honesty,
We are the Credit Union and all the world can see.
Chorus
Together we give together we receive
Together we help each other to achieve,
‘Cause in our world today, it’s not safe to be alone
Let’s make each other’s cares to be our own.
CREDIT UNION SONG
We all will be true savers though it be great or small
We will become shareholders providing loans for all,
So when great need arises there’s no uncertainty,
Once in the Credit union there’s help for you and me.
We pledge to be of service to better our land
We harbour no prejudice upon this theme we stand,
One man, one vote for members of high or low degree,
For in the Credit Union there’s pure democracy.
