lloyd erskine sandiford centre two mile hill, st. michael

Lloyd Erskine Sandiford Centre Two Mile Hill, St. Michael

July 18, 20203:30 p.m.

U.W.I (Cave Hill) Co-operative Credit Union Ltd.

STABILITY AND SERVICE

2019

U.W.I (Cave Hill) Co-operative Credit Union Ltd.

MEETING PROTOCOLSSafety first!!

All meeting attendees are required to wear a face mask.

All meeting attendees must sanitize their hands.

All meeting attendees must maintain a three-foot distance from each other unless they are a family unit.

Please be aware that temperature checks will be conducted for everyone entering the meeting room.

GEL

3 Feet

GEL

3 Feet

GEL

3 Feet

GEL

3 Feet

U.W.I. (Cave Hill) Co-operative Credit Union Ltd. | Annual Report 2019 1

Contents Page

Prayer of St. Francis of Assisi 2

Mission Statement and Objectives 3

Corporate Information 4

Credit Union Operating Principles 5

Board of Directors, Committees and Staff 6

Notice of Meeting 7

Minutes of the 33rd Annual General Meeting 8

Report of the Board Of Directors 26

Report of the Credit Committee 34

Report of the Supervisory Committee 39

Report of the Education And Membership Committee 42

Report of the Marketing Committee 46

Audit Report and Financial Statements 49

Report of the Treasurer 70

Standing Orders 86

2 U.W.I. (Cave Hill) Co-operative Credit Union Ltd. | Annual Report 2019

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 notSo 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.


MISSION STATEMENT

To be the best provider of opportunity for the improvement of the socio-

economic status and educational advancement of all members through

Credit Union products and services in accordance with Co-operative

philosophy and principles.

OBJECTIVES

• To enlighten members to the benefits of co-operation (and Credit

Union membership).

• To provide comprehensive financial services to members.

• To develop and maintain camaraderie and member loyalty.

• To improve our general community.


CORPORATE INFORMATION

BANKERS: Republic Bank (Barbados) Ltd.

One Barbados Place

Warrens

St. Michael

BARBADOS

RBC Royal Bank (Barbados) Limited

Broad Street

Bridgetown

St. Michael

BARBADOS

AUDITORS: Peter J. Carter & Co.

Chartered Accountants

P.O. Box 78 WRD

Professional Business Centre

29 George Street, Belleville

St. Michael

BARBADOS

MEMBER OF: Barbados Co-operative & Credit Union League Ltd.

1st Floor, Co-operators General Insurance Building

Upper Collymore Rock

St. Michael

BARBADOS


International Credit Union Operating Principles

Democratic Structure

Open and Voluntary MembershipMembership in a credit union is voluntary and open to all within the accepted common bond of association that can make use of its services and are willing to accept the corresponding responsibilities.

Democratic ControlCredit union members enjoy equal rights to vote (one member, one vote) and participate in decisions affecting the credit union, without regard to the amount of savings or deposits or the volume of business. Voting in credit union support organizations or associations may be proportional or representational, in keeping with democratic principles. The credit union is autonomous, within the framework of law and regulation, recognizing the credit union as a cooperative enterprise serving and controlled by its members. Credit union elected offices are voluntary in nature and incumbents should not receive a salary. However, credit unions may reimburse legitimate expenses incurred by elected officials.

Non-DiscriminationCredit unions are non-discriminatory in relation to race, nationality, sex, religion and politics.

Service to MembersCredit union services are directed to improve the economic and social wellbeing of all members.

Distribution to Members To encourage thrift through savings and thus to provide loans

and other services, a fair rate of interest is paid on savings and deposits, within the capability of the credit union. The surplus arising out of the operations of the credit union after ensuring appropriate reserve levels and after payment of limited dividends on permanent equity capital where it exists belongs to and benefits all members with no member or group of members benefiting to the detriment of others. This surplus may be distributed among members in proportions to their transactions with the credit union as interest or patronage refunds, or directed to improved or additional services required by the members.

Building Financial StabilityA prime concern of the credit union is to build the financial strength, including adequate reserves and internal controls that will ensure continued service to membership.

Social Goals

On-Going EducationCredit unions actively promote the education of their members, officers, and employees, along with the public in general, in the economic, social, democratic, and mutual self-help principles of credit unions.

The promotion of thrift and the wise use of credit, as well as education on the rights and responsibilities of members are essential to the dual social and economic character of credit unions in serving member needs.

Cooperation among CooperativesIn keeping with their philosophy and the pooling practices of cooperatives, credit unions within their capability actively cooperate with other credit unions, cooperatives and their associations at local, national and international levels in order to best serve the interests of their members and their communities.

Social ResponsibilityContinuing the ideals and beliefs of the cooperative pioneers, credit unions seek to bring about human and social development. Their vision of social justice extends both to the individual members and to the larger community in which they work and reside. The credit union ideal is to extend service to all who need and can use it. Every person is either a member or a potential member and appropriately part of the credit union sphere of interest and concern. Decisions should be taken with full regard for the interest of the broader community within which the credit union and its members reside.

These Credit Union Operating Principles are founded in the philosophy of cooperation and its central values of equality, equity and mutual self-help. Recognizing the varied practices in the implementation of credit union philosophy around the world, at the heart of these principles is the concept of human development and the brotherhood of man expressed through people working together to achieve a better life for themselves and their community.

Mrs. Angela Burton-Scott - Member Relations Officer Ms. Natasha Hackett - Member Relations Representative

Mrs. Janet Cox - Member Services Administrator Ms. Denise Holford - Assistant Manager

Mr. Ricardo Peterson - Accounting Assistant Mrs. Judith Baynes - General Manager

Ms. Krystle Moore - Member Services RepresentativeMs. Brenda Brathwaite - Administrative Assistant

Mr. Jermaine Bourne - ChairmanMs. Kimberley Yearwood - MemberMr. Kevin McCollin - MemberMr. Neil Broome - Member

Ms. Natasha Corbin – ChairpersonMr. Jermaine Bourne – Assistant Secretary

Ms. Alicia Graham – SecretaryMr. Ian Proverbs - Member

Ms. Anthea Hinkson – MemberMr. Julian McCollin – Member

Ms. Krystle Moore – Ex-Officio Member

Mr. Colin White – MemberMrs. Cheryl Mayers-Goddard – MemberMr. Julian McCollin – ChairmanMs. Ingrid Lashley – SecretaryMr. Ryan Headley - Member

Mrs. Roseanne Maxwell – SecretaryMr. David Myles - Chairman

Ms. Betty Thorpe – Member

Mr. Patrick E. McDonald – DirectorMs. Natasha Corbin – Vice PresidentMr. Neil Broome – DirectorMrs. Sharon Alexander-Gooding – TreasurerMrs. Jennifer Hinkson – PresidentMr. Owen Ellis – SecretaryMr. Ian Proverbs - Director

Board of Directors, Committees and Staff

BOARD OF DIRECTORS

SUPERVISORY COMMITTEE

CREDIT COMMITTEE

EDUCATION & MEMBERSHIP COMMITTEE

MARKETING COMMITTEE

STAFF


PRESIDENT: MRS. J. HINKSON TELEPHONE: (246) 417-4524/417-4539SECRETARY: MR. O. ELLIS FAX: (246) 424-0662TREASURER: MRS. S. ALEXANDER-GOODING EMAIL: [email protected]

June 29th 2020

Notice is hereby given that the 34th Annual General Meeting of the UWI (Cave Hill) Co-operative Credit Union Limited will be held on Saturday, July 18th 2020 at the Lloyd Erskine Sandiford Centre, Two Mile Hill, St. Michael commencing at 3:30 p.m.

AGENDA 1. Call to order2. Devotions 3. Approval of Agenda 4. Welcoming remarks 5. Greetings from other organisations6. Apologies for absence7. Minutes of the 33rd Annual General Meeting8. Matters arising 9. Reports: - Board of Directors

- Credit Committee- Supervisory Committee- Education and Membership Committee- Marketing Committee

10. Auditors’ Report, Financial Statements and Treasurer’s Report11. Allocation of Surplus 201912. Approval of 2020 Budget13. Fixing of Maximum Loan Liability14. Resolutions 15. Appointment of Auditor16. Elections - Board of Directors

- Credit Committee- Supervisory Committee

17. Any other business18. Presentations19. Vote of Thanks20. Termination

Owen Ellis (Mr.)Secretary

U.W.I. (CAVE HILL) CO-OPERATIVE CREDIT UNION LIMITEDP.O. BOX 64, BRIDGETOWN BB11000, BARBADOS


MINUTES OF THE 33RD ANNUAL GENERAL MEETING OF THE U.W.I. (CAVE HILL) CO-OPERATIVE CREDIT UNION LIMITED HELD ON SATURDAY, APRIL 6, 2019 AT THE WALCOTT WARNER THEATRE, ERROL BARROW CENTRE FOR CREATIVE IMAGINATION, THE UNIVERSITY OF THE WEST INDIES, CAVE HILL CAMPUS.

PRESENT:

MembersAlexander-Gooding, SharonAlleyne, CedricAlleyne, Charles A. O.Alleyne, Kenneth Alleyne, PamelaAlleyne, RuviniAnderson, SandraArthur, AnnBaynes, IanBaynes, JudithBaynes, RonaldBaynes, ShirleyBest-Delice, OmarBlackett, AmmoieBlackett, ShernellBourne, ElaineBourne, JermaineBradshaw, MarciaBrathwaite, BrendaBrathwaite, Joan A.Broome, NeilBrowne, DaisyBurton-Scott, AngelaCarrington, MaxineCarter, CherylCarter, FeliciaCharlemagne, GenefaClarke, DanielleClarke, GregoryClarke, StephanieCobham, GraftonCorbin, KeithCorbin, NatashaCorbin, PatriciaCox, JanetCox, MarvaritaCox, Zachary

Cumberbatch-Dawe, HeatherDawe, WayneDuguid, YvonneEdghill, JudyElcock, Brian C.Elcock, JeffreyEllis, FrancheroEllis, OwenForde, MatthewGraham, AliciaGrant, NidraGrant, RodneyGreene-Forde, AltheaGreenidge, DeniseHackett, NatashaHall, CynthiaHaynes, RogerHinds, KumarHinds, TitoHinkson, AntheaHinkson, JenniferHolder, CarlaHolford, DeniseIfill, GraceInniss, AnthonyJohnson, NicoleKnight, AndersonKnight, EmilyKnight, JoseannLashley, DanielleLashley, IngridLashley, RosalindLorde, SherryLovell, WendyLowe, ChristopherMaloney, BettyMaloney, Lynette


Maxwell, RoseanneMaynard, MariaMcCollin, JulianMcDonald, Patrick E.Meek, NormaMeek, TerryMoore, KrystleMoore, SarahMyles, DavidNurse, LinnellPeterson, RicardoPilgrim, AnthonyPinder, NicolePounder, NormelProverbs, IanProverbs, Sandra

Reece-McComie, PatReifer, MaxineReifer, Ria-Ashlee Robinson, JaniceSearles, ChulangShepherd, SabrinaSimmons-McDonald, HazelThomas, CharletteThorpe, BettyTull, YvetteWalters, KennethWellington, JuniaWhite, ColinWiltshire, HalcyonYawson, DavidYearwood, Kimberley

Junior SaversAlleyne, RehanaArthur, AsanBlackett, LatoncheCarter, JaydynClarke, KofiClarke, WayneCrichlow, JahnikaCrichlow, Zoey

Ellis II, FrancheroForde, DanielleForde, NathanGrant, MakaiGrant, MakaloMaloney, StormShepherd, Shemaya

GuestsAdams, Matthew VisitorAlleyne, Tamara Temporary employee, U.W.I. (Cave Hill) Co-op. Credit Union Carter, Peter Peter J. Carter & Co., AuditorsCrichlow, Anika VisitorCumberbatch, Duncan Shamrock Co-operative Credit Union Ltd.Edey, Andrea VisitorGrant, Gloria VisitorHall, Bernetta United Enterprise Co-operative Credit Union Ltd.Henry, Anderson Light & Power Co-operative Credit Union Ltd.Holder, Alfred VisitorHolder, Barbara VisitorJones, Keith Bartel Co-operative Credit Union Ltd.Lovell, Anton Co-operators General Insurance Company LimitedMedford, Bonita VisitorMoore, Carrol VisitorTrotman, Eden VisitorWhittaker, Kelvin Light & Power Co-operative Credit Union Ltd.


1. ASCERTAINMENT OF QUORUM AND CALL TO ORDER

The Thirty-Third Annual General Meeting of the U.W.I. (Cave Hill) Co-operative Credit Union Limited was called to order at 3:47 p.m. by the Chairperson, Mrs. Jennifer Hinkson, after ascertainment of a quorum; that being one-fourth of the membership (442) or 40 members whichever is less in accordance with By-Law 44(1)(a).

2. DEVOTIONS

2.1 Devotions were led by Mr. Owen Ellis, Secretary of the U.W.I. (Cave Hill) Co-operative Credit Union. This was followed by the reading of the Prayer of St. Francis of Assisi.

2.2 A moment of silence was observed in memory of those members who had passed since the April 1, 2018 Annual General Meeting.

3. APPROVAL OF THE AGENDA

3.1 The Chairperson asked for a motion for the approval of the Agenda.

3.2 A motion for the approval of the Agenda was moved by Mrs. Roseanne Maxwell and seconded by Mr. Chulang Searles. The motion was carried.

4. WELCOME REMARKS

4.1 The Chairperson, Mrs. Jennifer Hinkson, welcomed all members and visitors to the 33rd Annual General Meeting. She acknowledged their presence and thanked them for taking the time out of their busy schedule to attend the meeting.

4.2 The Chairperson reported that the past year was a challenging one for the country but the Credit Union continued to strive for excellence, and its performance could be described as strategic, insightful and committed as the team members worked towards a sustained and viable operation. The strength of the Credit Union was its strong leadership and management, and its robust internal controls and excellent customer service. The Board, Commitees and Management would continue to remain focused on the needs of the membership and respond to their suggestions.

4.3 The Chairperson introduced the members of the Board of Directors seated at the head table. Mr. Patrick E. McDonald, Treasurer; Mr. Owen Ellis, Secretary; Ms. Natasha Corbin, Vice President; Directors: Mr. Neil Broome, Mr. Ian Proverbs, and Mr. Charles A. O. Alleyne.


4.4 The Supervisory Committee was introduced to the membership: Mr. David Myles, Chairman; Ms. Betty Thorpe, Member and Mrs. Roseanne Maxwell, Secretary. The members of the Credit Committee present were also introduced to the membership: Mr. Julian McCollin, Chairperson and Mrs. Maria Maynard, Secretary.

4.5 The Education and Membership Committee was also introduced to the membership: Ms. Natasha Corbin, Chairperson, and members: Mr. Ian Proverbs, Ms. Anthea Hinkson, Mr. Julian McCollin, Ms. Alicia Graham and Mr. Jermaine Bourne. Mr. Bourne was also acknowledged as the Chairperson for the Marketing Committee along with members: Mr. Neil Broome, Ms. Kimberley Yearwood, Dr. Yolande Cooke, and Mr. Kevin McCollin.

4.6 The Chairperson specially thanked the General Manager, Mrs. Judith Baynes,

and her hardworking team. She expressed her gratitude for all that they did for the Credit Union.

5. GREETINGS FROM OTHER ORGANISATIONS

5.1 Mr. Kelvin Whittaker extended greetings on behalf of the Light & Power Co-operative Credit Union Ltd, and Co-operators General Insurance Company. He congratulated the Credit Union on a successful year and wished the Credit Union much success in the coming year.

5.2 Mr. Duncan Cumberbatch brought greetings on behalf of the Members and Committees of the Shamrock Co-operative Credit Union Ltd. He wished the Credit Union all the best for the meeting and conveyed blessings for the coming year.

5.3 Mr. Keith Jones extended greetings on behalf of the Bartel Co-operative Credit Union Ltd. and Barbados Co-operative & Credit Union League Limited. He congratulated the Credit Union on another successful year and wished the Credit Union continued growth.

5.4 Mr. Anderson Henry, President, Light & Power Co-operative Credit Union Ltd, brought greetings on behalf of the Board Members and Committees. He expressed his wishes for a successful annual general meeting.

6. APOLOGIES FOR ABSENCE

Apologies for absence were received on behalf of the following members:

Alleyne, JonathanAlleyne, JustinAlleyne, Lisa A. C. Belle, Andrew

Best, WinfieldBoyce, JosiahBradshaw, AddisonBrowne, John


Lendor, RomarioLeyshon, RobertMaxwell, KyleMaynard, Dr. Donna-MariaMcIntosh, AmariMongerie, MargaretPowlett, Marcia Proverbs, Paige Scantlebury, VilmaSealy, NicoleSmall, JeanSonny, SharonThomas, AndreaThomas, RyanWatson, Tonya

Burrowes, ShirleyClarke, ShirleyClarke-Boyce, CameletDalrymple, AnniceEllis, EthanEllis, DominiqueFranklin, DaleGooding, CheryseGooding, IanGooding, RyanGreene, SheldineHall, JamesHarding, KevinHarding, YvetteHarewood, HeatherHinkson, AnthonyJarvis, JaidynJarvis, Paula

7. MINUTES OF THE 32ND ANNUAL GENERAL MEETING

A motion to take the minutes of the Thirty-Second Annual General Meeting as read was moved by Mr. Neil Broome and seconded by Mr. Franchero Ellis. The motion was carried.

Errors and Omissions

There were no errors and omissions.

A motion for the adoption of the Minutes of the Thirty-Second Annual General Meeting was moved by Mr. Chulang Searles and seconded by Mrs. Sharon Alexander-Gooding. The motion was carried.

8. MATTERS ARISING

There were no matters arising from the minutes of the Thirty-Second Annual General Meeting.

9. REPORTS

The Reports of the Board of Directors, Credit, Supervisory, Education and Membership, and Marketing Committees may be read at pages 26 to 47 of the 2018 Annual Report.


9.1 BOARD OF DIRECTORS

9.1.1 A motion for the Board of Directors’ Report to be taken as read was moved by Mr. Patrick E. McDonald and seconded by Ms. Natasha Corbin. The motion was carried.

9.1.2 The President presented highlights from the Report of the Board of Directors for the year ended December 31, 2018. The report may be read in its entirety at pages 26 to 32 of the 2018 Annual Report.

9.1.3 The year under review was one of historic proportions for our country both politically and economically. However, the Credit Union was able to achieve another reasonably successful year of operations, notwithstanding a reduction in the Gross Operating Income for the first time in the Credit Union’s history.

9.1.4 The key performance indicators did not show year on year increases but the Credit Union continued to reward its members with very good returns when compared to other financial institutions inside and outside the Credit Union Movement.

9.1.5 Members were encouraged to avail themselves of the educational and development opportunities offered by the Barbados Co-operative Credit Union League Limited (BCCULL). They were informed that they could contact the staff of the Credit Union to obtain details of the courses that were offered yearly.

9.1.6 The Credit Union recorded an increase of 77 members for the year. At December 31, 2018 there were 1,820 as compared to 1,743 at December 31, 2017.

9.1.7 The implementation of the International Financial Reporting Standard #9 (IFRS 9) and the Government of Barbados Debt Restructuring Program (DRP) impacted the financial performance of the Credit Union during the year. It was expected that the DRP would have a negative impact on the performance of the Credit Union for the next fifteen (15) years.

9.1.8 The President informed those present that Total Assets were $63.343M compared with $54.161M at December 31, 2017 for an increase of 16.95%. Gross Income (excluding extraordinary gains) was $3.366M as compared to $3.465M at December 31, 2017 for a decrease of 2.86%. The Credit Union had to “Fair Value” its investments in Co-operators General Insurance Company Ltd (CGICL) and Co-operators General Management Company Inc. (CGMCI) which resulted in the extraordinary gain of $5.106M. The Net Surplus before appropriation was $556K for the year compared with $764K at December 31, 2017 for a decrease of 27.25%. Gross loans outstanding were $26.021M compared with $26.016M at December 31, 2017 for an increase of 0.20%.


9.1.9 The President reported that in order for the Credit Union to maintain its high operating standards there was a constant review of the current policies as well as the introduction of new ones. She highlighted those policies that were either revised or introduced. These policies can be found on page 30 of the 2018 Annual Report.

9.1.10 The Board continued to work with contracted professionals on the Information Technology project to provide online access for members. To achieve this the Credit Union made significant progress in the upgrade of its IT infrastructure during 2018. The project was expected to be completed in 2019.

9.1.11 The Credit Union implemented a “Performance-Related Bonus Scheme” during the year and continued to seek out persons to carry on the tradition of providing excellent customer service.

9.1.12 There were currently two groups of deposits left to mature under the Twenty Fiver Savings Plan. These were scheduled to mature December 31, 2019 and December 31, 2020.

9.1.13 The Board encouraged the members to use the services of the Credit Union as it continued to provide competitive savings and lending programs.

9.1.14 The Board expressed its sincerest appreciation for the cooperation and continued support of the Committees, members of staff of the Credit Union and fellow cooperators. The President also expressed thanks to the Regulators and Auditors who ensured that our standards, policies, and reports were delivered with honesty and fairness.

9.1.15 The President asked if there were any questions. Mr. Kenneth Walters requested an explanation to the statement that the DRP would have a negative impact on the Credit Union for the next fifteen (15) years. The President stated that the Treasurer would speak on this topic during the presentation of the Treasurer’s report.

9.1.16 A motion for the acceptance of the Board of Directors’ Report was moved by Ms. Betty Thorpe and seconded by Ms. Halcyon Wiltshire. The motion was carried.

9.1.17 The Chairman acknowledged Mr. Peter J. Carter, the Auditor, and expressed her condolences on the passing of his father. She then requested his assistance with the draw for the door prizes.

9.1.18 Prize Draws

Various door prizes were provided by Cheesecake Heaven, Colombian


Emeralds, Co-operators General Insurance, Courtesy Rent-a-Car, Hanschell Inniss, Healing Hands Spa & Wellness, SIR Water Management Ltd., and U.W. I. (Cave Hill) Co-operative Credit Union Limited.

The main door prize of a share certificate was won by Ms. Charlette Thomas who was the first of ten (10) members to arrive for the meeting.

Draw 1The lucky winners of the first draw were Ms. Normel Pounder, Mr. Christopher Lowe, Mr. Jermaine Bourne, Mrs. Patricia Reece-McComie, Ms. Daisy Browne and Mrs. Wendy Lovell.

9.2 CREDIT COMMITTEE

9.2.1 A motion for the Credit Committee’s Report to be taken as read was moved by Mr. Patrick E. McDonald and seconded by Mr. Ian Proverbs. The motion was carried.

9.2.2 Mr. Julian McCollin, Chairman of the Credit Committee presented highlights of the Report which may be read on pages 33 to 38 of the 2018 Annual Report.

9.2.3 During 2018 the Credit Committee held 49 meetings. The role of the Committee was to review applications and determine the suitability of approving them accordingly. In the past, the Credit Committee reported on disbursements but in the future, the Committee would only be reporting on approvals.

9.2.4 There was a 36% decrease in the loans disbursed and a 32% decrease in the Lines of Credit. Housing, Transport and Other Expenses were the top three (3) categories and these combined totalled $3.22M. During the year, Other Expenses replaced Real Estate in the top three (3) loan categories compared to 2017 when Real Estate, Housing, and Transport had a combined total of $5.68M.

9.2.5 The Medical Expenses loan category increased almost seven-fold from $26K in 2017 to $205K in 2018 to record the largest percentage increase of 674.63%. The Debts loan category also recorded an increase, moving from $122K in 2017 to $334K in 2018.

9.2.6 Loans approved recorded a 19% decrease in 2018 at $5.07M when compared

to 2017 at $6.26M, while the Line of Credit recorded a 3% increase at $347K in 2018 moving from $338K in 2017.

9.2.7 The Real Estate loan category was the largest single contributor and accounted for $1.21M for the year as compared with $1.73M in 2017 for a decrease of 30%. In the previous year, the Mortgage Checkup contributed to the increase


in loans, unfortunately, this product was no longer offered.

9.2.8 The Chairman expressed special thanks to those members who would have borrowed during the year.

9.2.9 A motion for the acceptance of the Credit Committee’s Report was moved by Mr. Jermaine Bourne and seconded by Mr. Chulang Searles. The motion was carried.

9.3 SUPERVISORY COMMITTEE

9.3.1 A motion for the Supervisory Committee’s Report to be taken as read was moved by Ms. Daisy Browne and seconded by Mrs. Maria Maynard. The motion was carried.

9.3.2 Mr. David Myles, Chairman of the Supervisory Committee presented highlights of the Report which may be read on pages 39 to 41 of the 2018 Annual Report.

9.3.3 The Chairman outlined the duties of the Supervisory Committee.

9.3.4 The Supervisory Committee was responsible for carrying out tests in several areas of the Credit Union to ensure that there were no significant discrepancies in its financial statements, and monthly and quarterly submissions to the Financial Services Commission (FSC).

9.3.5 The Committee conducted a members’ account verification exercise during the month of June 2018 where they mailed letters to one hundred and ninety-eight (198) members. The Committee expressed disappointment that only fifty-eight (58) responses were received from those members selected. The Chairman appealed to members that if they received a confirmation request from the Committee they should make a special effort to respond, to confirm the accuracy of their credit union records.

9.3.6 The Supervisory Committee found no discrepancies in the operations of the Credit Union which operated in compliance with the relevant By-Laws and Regulations.

9.3.7 The Chairman thanked the Board of Directors, the Credit Committee and the Staff for their continued support and co-operation during the year.

9.3.8 A motion for the acceptance of the Supervisory Committee’s Report was moved by Mr. Julian McCollin and seconded by Ms. Ingrid Lashley. The motion was


carried.

9.4 EDUCATION AND MEMBERSHIP COMMITTEE

9.4.1 A motion for the Education and Membership Committee’s Report to be taken as read was moved by Mrs. Roseanne Maxwell and seconded by Mrs. Cynthia Hall. The motion was carried.

9.4.2 Ms. Natasha Corbin, Chairperson of the Education and Membership Committee presented highlights of the Report which may be read at pages 42 to 45 of the 2018 Annual Report.

9.4.3 For the period under review, the Education and Membership Committee facilitated a number of successful educational events. These included Real Estate Planning, the Employment Rights Act, 2012-9 and the Employment Sexual Harassment (Prevention) Act, 2017-21.

9.4.4 The Committee presented awards to fourteen (14) students who successfully completed the Barbados Secondary School Entrance Examination. These students were awarded as a result of being Junior Savers in the Credit Union.

9.4.5 For the membership outreach, the Committee participated in the Cave Hill Campus Health and Wellness Day Event and attracted eleven (11) new members. They also celebrated International Credit Union Day and also participated in the University’s Open Day event.

9.4.6 During January 2019 a new initiative called the PennyWise Savers was launched to teach children, in a tangible and responsible way, about saving, budgeting and setting goals. The programme attracted eighty-five (85) registered Junior Savers.

9.4.7 The Chairperson encouraged members to take part in the educational sessions which were a central pillar in the democratic structure of the Credit Union. She indicated that the Committee would continue to provide exposure and training for its members to take up new roles and responsibilities.

9.4.8 The Chairperson expressed sincere thanks to the Board of Directors, Colleagues, Cell Leaders, Staff and the Committees for all their hard work. She also thanked members for giving the Committee the opportunity to serve them.

9.4.9 A motion for the acceptance of the Education and Membership Committee’s Report was moved by Mr. Chulang Searles and seconded by Ms. Yvette Tull. The motion was carried.


9.5 MARKETING COMMITTEE

9.5.1 A motion for the Marketing Committee’s Report to be taken as read was moved by Ms. Betty Thorpe and seconded by Mr. Patrick E. McDonald. The motion was carried.

9.5.2 Mr. Jemaine Bourne, Chairman of the Marketing Committee presented highlights of the Report which may be read at pages 46 to 47 of the 2018 Annual Report.

9.5.3 Mr. Jermaine Bourne indicated that the Marketing Committee was responsible for all marketing-related activities geared towards the enhancement of the U.W.I (Cave Hill) Co-operative Credit Union Ltd.

9.5.4 The Marketing Committee had tabled four (4) areas for consideration and

implementation which were driven by the Customer Satisfaction Report conducted in 2017.

9.5.5 The Mortgage Check-up programme was put on hold until further notice because of the prevailing economic environment which was compounded by the Government’s Debt Restructuring Programme.

9.5.6 The Student Loans were removed as a marketing priority since the Barbados Government had re-instituted the free tertiary education for nationals of Barbados.

9.5.7 The Committee continued to explore the possibility of utilizing the advertising screens located on Campus to advertise the products and services of the Credit Union. The Committee was in discussions with the University’s Marketing Department.

9.5.8 Mr. Jermaine Bourne requested that all members provide the Credit Union with their contact details, such as email addresses, telephone numbers, etc., especially where their contact details were changed. This was to ensure that the members were kept updated with any rollout of products or services. The members were also encouraged to keep engaged with the Credit Union by liking the Credit Union’s Facebook page and visiting its Website. The Committee would continue to raise awareness of the importance of consenting to electronic communication.

9.5.9 The Committee would continue to place a high emphasis on the promotion of the Credit Union’s scholarships by raising awareness of their existence, application process and timelines so that members could seek to take


advantage of these benefits.

9.5.10 The Committee thanked the Board of Directors, members of the other Committees, Management and Staff of the Credit Union for their assistance given in the performance of their duties during the last year.

9.5.11 Mr. Kenneth Walters stated that there were a number of in-house self-financed programmes, worth over $25K, on Campus that needed to be funded. He queried whether the student loans were no longer available because of the provision of free education for undergraduate studies.

9.5.12 Mr. Patrick E. McDonald explained that there was still an educational loan programme for those students who experience financial difficulty. He further explained that if the parents were willing to sign on behalf of the member then they would receive a special loan rate, an extended payback period and a special savings rate.

9.5.13 Mr. Kenneth Walters stated that Campus had a mandate to become a smart campus and so the Credit Union needed to become a smart Credit Union in the future. He suggested that the Credit Union look at developing an ATM system where members would be able to access their funds through the CARIFS system. He queried whether the idea had been abandoned.

9.5.14 Mr. Patrick E. McDonald indicated that the Barbados Co-operative & Credit Union League had been looking to put such a system in place for the Credit Union movement because of the high cost involved. He explained that during the last two (2) years the Credit Union was investigating the implementation of a platform to provide these types of services. Mr. Patrick E. McDonald futher stated that the IT hardware infrastructure was upgraded and the software infrastructure would be upgraded in 2019.

9.5.15 A motion for the acceptance of the Marketing Committee’s Report was moved by Mrs. Sharon Alexander-Gooding and seconded by Ms. Linnell Nurse. The motion was carried.

10. AUDITOR’S REPORT, FINANCIAL STATEMENTS AND TREASURER’S REPORT

10.1 Mr. Peter Carter of Peter J. Carter & Co., Chartered Accountants, presented the Auditor’s Report (page 50) and stated how it was ordered.

10.2 The Auditors conducted the audit and expressed an opinion that the financial statements present fairly in all material respects, in the financial position and financial performance of the U.W.I. (Cave Hill) Credit Union for the year ended December 31, 2018.


10.3 A motion for the adoption of the Auditor’s Report was moved by Mr. Kenneth Walters and seconded by Ms. Anthea Hinkson. The motion was carried.

10.4 Mr. Peter Carter expressed his appreciation to the Credit Union on their kind words on the passing of his father.

10.5 Draw 2The lucky winners of the second draw were Mr. Terry Meek, Mr. Neil Broome, Ms. Felicia Carter, Mrs. Sharon Alexander-Gooding, Mr. Brian Elcock and Mr. Kumar Hinds.

10.1 TREASURER’S REPORT

10.1.1 A motion for the Treasurer’s Report to be taken as read was moved by Mr. Charles O. A. Alleyne and seconded by Mr. Neil Broome. The motion was carried.

10.1.2 The Treasurer, Mr. Patrick E. McDonald, presented the Treasurer’s Report which may be read on pages 68 to 71 of the 2018 Annual Report.

10.1.3 The Treasurer indicated that for the last three (3) years he had tried to sensitise the membership about the Fit and Proper which would be used during the election process, and the International Financial Reporting Standard #9 (IFRS 9) which was used to prepare the financial statements.

10.1.4 The Treasurer reported that while the Comprehensive Income Statement was good, the underlying operating results were not as good as 2017. He explained this was as a result of the shares in Co-operators General Insurance Company Limited and Co-operators General Management Company Inc. being “fair valued” to satisfy IFRS 9. The Treasurer noted that until the shares could be recognised in cash a dividend could not be paid. The Credit Union would have to sell some of the shares. These shares, however, strengthened the Balance Sheet to give the Credit Union a source of capital.

10.1.5 The Treasurer told the membership that they should familiarize themselves with notes 3(g), 3(k), 10(a), 10(b), 10(c) and 16 which were detailed on pages 58 to 66.

10.1.6 The Treasurer indicated that the Total Assets of $63.473M at December 31, 2018 in the Treasurer’s Report should be corrected to read $63.343M.

10.1.7 The Credit Union’s assets increased to $63.343M from $54.161M in the prior year. A significant portion of this amount, $5.106M, was as a result of the fair valuing of the investments with Co-operators General Insurance Company Limited and Co-operators General Management Company Inc.


10.1.8 Members’ Savings continue to grow moving from $47.483M at December 31, 2017 to $51.334M at December 31, 2018. This was due to an increase in large deposits from members.

10.1.9 The Credit Union’s investment options were not good, because of the Debt Restructuring programme, and this would negatively impact the Credit Union over the next fifteen (15) years, however, equity was significantly high.

10.1.10 The Treasurer advised that the Credit Union carefully managed its loan portfolio because many persons were above their limit or at their limit in debt. The Loan Portfolio had a “flat” year but held level like the prior year. There was no significant increase in the loan portfolio but a significant decrease in the loans approved.

10.1.11 The Treasurer stated that the term Delinquency would be changed to Expected Credit Losses in the future. He explained that the Credit Union had a low delinquency rate but this would no longer be relevant as IFRS 9 did not recognize this rate. The calculation of the rate would be based on the loans approved but not yet disbursed as these had to be treated as a commitment.

10.1.12 The Credit Union had invested a large sum of money in Government Securities which caused some significant reduction in income.

10.1.13 Mr. Roger Haynes queried why there was no adjustment made to the 25er Savings Programme rates given the fact the other rates had been adjusted. The Treasurer explained that the Board agreed that the Credit Union should honour its contractual agreement.

10.1.14 The Treasurer expressed his appreciation to the Management and Staff, Mr. Shelstone Lorde and Committees for their continued support to the Credit Union.

10.1.15 A motion for the acceptance of the Treasurer’s Report was moved by Mr. Julian McCollin and seconded by Mr. Neil Broome. The motion was carried.

11. ALLOCATION OF SURPLUS

11.1 A motion for the adoption of a patronage refund/interest rebate of 8% for the year 2018 as recommended by the Board of Directors was moved by Mr. Julian McCollin and seconded by Mr. Jermaine Bourne. The motion was carried.

11.2 A motion for the adoption of a bonus on net savings of 0.5% as recommended by the Board of Directors was moved by Mrs. Sharon Alexander-Gooding and seconded by Mr. Gregory Clarke. The motion was carried.


11.3 A motion for the adoption of a dividend of 15% on permanent shares as recommended by the Board of Directors was moved by Mr. Julian McCollin and seconded by Mr. Anthony Inniss. The motion was carried.

12. APPROVAL OF 2019 BUDGET

12.1 A motion for the adoption of the Operating Budget for the year ending December 31, 2019 was moved by Mr. Chulang Searles and seconded by Ms. Daisy Browne. The motion was carried.

13. FIXING OF MAXIMUM LOAN LIABILITY

13.1 The Board of Directors proposed that the maximum loan liability remain at $5M.

13.2 A motion for the approval of the maximum loan liability to remain at $5M was moved by Mr. Julian McCollin and seconded by Mr. Gregory Clarke. The motion was carried.

14. RESOLUTIONS

14.1 There were no resolutions from the Board or members of the Credit Union.

15. APPOINTMENT OF AUDITOR

15.1 The Chairperson informed the meeting that the FSC had approved the appointment of Peter J. Carter & Co., Chartered Accountants as auditors for the U.W.I. (Cave Hill) Co-operative Credit Union.

15.2 A motion for the appointment of Peter J. Carter & Co., Chartered Accountants to serve as auditors for the Financial Year 2019 was moved by Mr. Patrick E. McDonald and seconded by Mr. Charles A. O. Alleyne. The motion was carried.

15.3 Draw 3The lucky winners of the third draw were Mrs. Cynthia Hall, Mr. Zachary Cox, Mr. Ricardo Peterson, Ms. Joseann Knight, Mr. Rodney Grant, Ms. Grace Ifill, and Mr. Kenneth Alleyne.

16. ELECTIONS

16.1 Mr. Anthony Pilgrim, Chairman of the Nominating and Credentials Committee, presented the report.

16.2 In accordance with the standards established by the Co-operatives Societies Act Cap 378 and the accompanying regulations and the Society’s By-Laws,


members desirous of being elected to the Board of Directors, Credit Committee and Supervisory Committee were required to meet the Fit and Proper criteria.

16.3 The Board of Directors appointed a Nominating and Credentials Committee to review all applicants for positions to the Board of Directors, Credit Committee and Supervisory Committee. The Board also approved a documented process to guide the work of the Committee.

16.4 The Nominating and Credentials Committee reviewed the documentation submitted by the seven (7) nominees who were all found to be Fit and Proper for the respective positions.

16.4 Mr. Patrick E. McDonald and Mrs. Sharon Alexander-Gooding were nominated for the Board of Directors; Ms. Alicia Graham, Ms. Ingrid Lashley, Mr. Colin White, and Ms. Kimberley Yearwood were nominated for the Credit Committee and Mr. David Myles was nominated for the Supervisory Committee.

16.5 Mr. Anthony Pilgrim acknowledged the kind assistance of the Management and Staff of the Credit Union.

16.6 The Chairperson requested that all nominees stand so that they could be recognised by the membership.

16.7 The Chairperson invited Mr. Kelvin Whittaker and Mr. Anthony Inniss, Chairman of Elections, to conduct the election process. They were assisted by Mr. Peter Carter, Auditor.

16.8 After the members had cast their ballots, Mr. Anthony Inniss declared the polls closed.

16.2 The Board of Directors

16.2.1 There were two (2) vacancies on the Board of Directors. One (1) vacancy at the end of the elected period for Mr. Patrick E. McDonald who was eligible for reelection, and one (1) vacancy at the completion of the term of office for Mr. Charles A. O. Alleyne who was not eligible for reelection.

16.2.2 The Chairman of Elections declared that Mr. Patrick E. McDonald and Mrs. Sharon Alexander-Gooding were duly elected to serve on the Board of Directors for a term of three (3) years.

16.3 Credit Committee

16.3.1 There was one (1) vacancy on the Credit Committee as Mrs. Maria Maynard’s term of office had ended and she was not eligible to be reelected.


16.3.2 The following persons were nominated to serve on the Committee: Ms. Alicia Graham, Ms. Ingrid Lashley, Mr. Colin White, and Ms. Kimberley Yearwood.

The results of the voting were as follows:

Mr. Colin White 74Ms. Ingrid Lashley 50Ms. Alicia Graham 44Ms. Kimberley Yearwood 25

16.3.3 The Chairman of Elections declared that Mr. Colin White and Ms. Ingrid Lashley were duly elected to serve on the Credit Committee for a term of three (3) years.

16.4 Supervisory Committee

16.4.1 There was one (1) vacancy on the Supervisory Committee at the end of the elected period for Mr. David Myles who was eligible for reelection.

16.4.2 The Chairman of Elections declared that Mr. David Myles was duly elected to serve on the Supervisory Committee for a term of three (3) years.

17. ANY OTHER BUSINESS

17.1 Mr. Patrick E. McDonald, the Treasurer, was invited to address the matter of accommodations for the Credit Union. He reminded the members that during the 2017 Annual General Meeting he had raised the matter of accommodation for the Credit Union, and informed them that during the year the Credit Union had considered other options as they had outgrown the present accommodation. Mr. Patrick E. McDonald stated that the Credit Union had made a presentation to its main benefactor, the University of the West Indies, and hoped to get a positive outcome. Once a response was received the members would be updated.

18. PRESENTATIONS

18.1 Mrs. Jennifer Hinkson, the Chairperson, invited Ms. Natasha Corbin to make presentations in the following categories:

2019 Barbados Secondary School Entrance Examination (BSSEE) - Jadyn Carter, Wade Clarke, Makalo Grant, Storm Maloney, Shemaya Shepherd

Highest Junior Saver - Rehana Alleyne

Youngest Junior Saver -Zoe Crichlow

Longest Saver - Jaidyn Jarvis


18.2 Cell Leaders AwardsMrs. Roseanne Maxwell – Gold Ms. Sheldine Greene/Mrs. Normel Pounder – Silver (tie)

18.3 Presentations were made to Mr. Charles A. O. Alleyne who had served on the Board of Directors and Mrs. Maria Maynard who had served on the Credit Committee.

18.5 Final DrawThe lucky winners of the final draw were Ms. Judy Edghill, Ms. Pamela Alleyne, and Ms. Sabrina Shepherd.

The Chairperson congratulated the winners and thanked the sponsors of the prizes.

19. VOTE OF THANKS

Mr. Charles A. O. Alleyne moved the Vote of Thanks.

20. TERMINATION

There being no further business the Thirty-Third Annual General Meeting of the U.W.I. (Cave Hill) Co-operative Credit Union was terminated at 7:22 p.m.


REPORT OF THE BOARD OF DIRECTORSFor the year ended December 31, 2019

“Let us not become weary in doing good, for at the proper time we will reap a harvest if we do not give up”. ~~ Galatians 6:9 (NIV)

INTRODUCTION

The Board of Directors of the UWI (Cave Hill) Co-operative Credit Union Limited is pleased to submit the Annual Report of the Credit Union for the financial year ended December 31, 2019.

While some of the challenges experienced in recent years have abated, there are continued pressures in the financial and economic environments of the country. Notwithstanding these circumstances, we are pleased to report that the financial year ended December 31, 2019 was another reasonably successful one. However, we must report that for the second consecutive year, the Credit Union did not achieve year on year increases in some of its key operating areas. We however gratefully acknowledge the unwavering support of our members; and the effective and efficient management of the Credit Union in achieving the results reported herein.

We are also pleased to report that our Credit Union continued to reward members with very competitive returns when compared to some of the other financial institutions both inside and outside of our Movement.

While the Barbados Credit Union Movement continues to make every effort to meet the needs of its members, the effort has in some ways been undermined by an avalanche of regulations, pressure on its competitive advantages and emerging technologies. Despite these challenges the Movement is taking steps to address and remove the many roadblocks that it faces.

The Barbados Credit Union Movement is therefore committed to helping its members cope with the challenging economic conditions and remains a strong partner with its members in their efforts to achieving financial inclusion and independence.

The UWI (Cave Hill) Co-operative Credit Union Limited is committed to helping the Movement succeed in its stated goals.


MEETINGS

The Board held fourteen (14) regular meetings and two (2) Joint Committee meetings during the period under review.

ATTENDANCE AT BOARD MEETINGS

A total of fourteen (14) meetings were held during the period January 1 to December 31, 2019 as follows;

Three (3) meetings were held during the period January 1 to March 31, 2019.

DIRECTORS TITLE PRESENT ABSENT WITH APOLOGIES

Ms. Jennifer Hinkson President 3 0

Ms. Natasha Corbin Vice-President 3 0

Mr. Owen Ellis Secretary 3 0

Mr. Patrick E. McDonald Treasurer 3 0

Mr. Charles A. O. Alleyne Director 3 0

Mr. Neil Broome Director 2 1

Mr. Ian Proverbs Director 2 1

At the Annual General Meeting held on April 6th 2019, Mrs. Sharon Alexander-Gooding was elected to replace Mr. Charles A. O. Alleyne whose term of office ended. Eleven (11) meetings were held during the period April 1 to December 31, 2019.

DIRECTORS TITLE PRESENT ABSENT WITH APOLOGIES

Ms. Jennifer Hinkson President 8 3

Ms. Natasha Corbin Vice-President 8 3

Mr. Owen Ellis Secretary 9 2

Mr. Sharon Alexander-Gooding Treasurer 8 3

Mr. Neil Broome Director 10 1

Mr. Patrick McDonald Director 9 2

Mr. Ian Proverbs Director 9 2


COMMITTEES

The composition of the Credit Committee was changed in 2019 as Ms. Ingrid Lashley was elected at the Annual General Meeting to replace Mrs. Maria Maynard whose term of office ended after serving for (2) consecutive terms.

The members of the Supervisory and Credit Committees are listed below.

Credit Committee:

Chairman Mr. Julian McCollin Secretary Ms. Ingrid LashleyMember Mr. Ryan HeadleyMember Mrs. Cheryl Mayers-GoddardMember Mr. Colin White

Supervisory Committee:

Chairman Mr. David MylesSecretary Mrs. Roseanne Maxwell Member Ms. Betty Thorpe

The Delinquency Committee was chaired by the Treasurer, Mrs. Sharon Alexander-Gooding.

EDUCATION

Ms. Natasha Corbin continued in the role as Chairperson of the Education Committee. She was supported by the following members;

Ms. Alicia Graham – SecretaryMr. Jermaine Bourne– Assistant SecretaryMs. Anthea Hinkson – MemberMr. Julian McCollin – MemberMr. Ian Proverbs – Member Ms. Krystle Moore – Ex-Officio

Information on the League’s courses up to July 2020 has been included in the Report. It is hoped that members would avail themselves of these educational and developmental opportunities. Members can contact the staff at the Credit Union to find out details of the courses for the remainder of 2020.


For the academic year 2019 to 2020, one (1) student was awarded the Credit Union’s Postgraduate Scholarship.

MEMBERSHIP

During 2019, the Credit Union’s membership increased by a total of 43 members. The membership at December 31, 2019 now stands at 1,863 compared to 1,820 at December 31, 2018.

RELATIONS WITH THE CREDIT UNION MOVEMENT

Our Credit Union continues to support the Barbados Co-operative and Credit Union League Limited (BCCULL), the umbrella organization for the Barbados Credit Union Movement. Mr. Patrick E. McDonald is currently serving as Second Vice President on the Board of Directors of the BCCULL. He is also a Trustee of the Central Fund Facility Trust (CFFT) operated by the BCCULL.

The Credit Union continued to benefit from the training programmes offered by the BCCULL.

Co-operators General Insurance Company Limited (CGICL), of which our Credit Union is part-owner, had a successful year in 2019. We are pleased to report that an increased dividend was declared and paid during the period under review. Our Credit Union is also a part-owner of Co-operators General Management Company Inc. (CGMCI), the company that owns and manages the building occupied by CGICL. In addition to the interest earned on the investment in this company, the company also declared and paid a dividend during the year. Mr. Patrick E. McDonald is currently serving on the Board of CGICL as Treasurer, and he also serves as Chairman of the Board of CGMCI.

Members are urged to use CGICL for their insurance needs.

PERFORMANCE REVIEW

The implementation of the International Financial Reporting Standard # 9 (IFRS 9) and the Government of Barbados Debt Restructuring Programme (DRP) continued to have a significant impact on the Credit Union’s financial performance for 2019. As indicated in the prior year report, the DRP will have a negative impact on our Credit Union’s income for the next fourteen (14) years.

Total Assets reached $67.334M at December 2019 compared to $63.343M at December 2018 for an increase of 16.95%.


Gross Income (excluding extraordinary gains) was $2.868M for 2019 compared to $3.366M in 2017 for a decrease of -14.81%. As required by IFRS 9, the Credit Union continued to ‘Fair Value’ its investment in CGICL and CGMCI. The result of this exercise produced an ‘Extraordinary Gain’ of $494K in the current financial year.

The Net Surplus before appropriations (excluding extraordinary gains) was $422K for the year under review compared to $530K in the prior year for a decrease of -20.51%.

Total loans outstanding at December 31, 2019 were $25.031M compared to $26.021M at December 31, 2018 for a decrease of -3.80%. Our Credit Union’s Capital, as set by policy, exceeded the legal requirement by $337K at December 31, 2019. This figure excluded Undivided Earnings of $5.254M.

Some key current and historical financial data for our Credit Union are set out in the table below:

Year Statutory capital & Retained Earnings

Members share savings

Members deposits

Total Loans outstanding

(net)Total Assets

2012 4,502,477 26,227,645 6,608,642 18,756,857 37,468,245

2013 4,808,910 30,616,620 6,425,614 20,708,426 42,023,055

2014 5,213,443 32,687,291 7,120,674 22,138,467 45,168,144

2015 5,443,737 34,605,478 7,372,754 21,759,545 47,558,391

2016 6,084,189 37,945,380 7,248,699 22,673,375 51,367,758

2017 6,561,403 40,310,680 7,172,158 25,789,606 54,160,603

2018 11,918,418 44,447,050 6,886,725 25,520,623 63,343,377

2019 12,484,222 47,919,624 6,780,991 24,678,489 67,333,748

The full financial details are shown in the Audited Financial Statements, Treasurer’s Report as well as the other Data Sheets and Commentary presented elsewhere in this booklet.

CUSTOMER SERVICE, OPERATIONAL IMPROVEMENTS AND PROJECTS

Operating Policies

In order to ensure that our Credit Union maintains its high operating standards, there continues to be a constant review of current Policies along with the introduction of new ones. During the year the following Policies were either revised or introduced:


1. A Vital Records Security and Disaster Preparedness Plan was developed and implemented.

2. The Credit Union’s Operations Manual was reviewed, expanded and updated.

3. There were continuous reviews and updates to other Policies.

Information Technology

The Board continues to work with contracted professionals on the project to provide online access for members to their accounts. In order to achieve this along with enhancing the Credit Union’s data security, the Credit Union continued the upgrade to its IT infrastructure during 2019. While work is still required in several areas, the project is expected to be completed in 2020.

The Credit Union continues to strive to eliminate paper statements in the future. There is a continued effort being made to encourage members to provide their email information to the office. This will facilitate the more efficient communication of quarterly statements and notices, as well as reducing operating costs with the ultimate result of greater returns for members. Members are asked to give their full support to this important aspect of our Credit Union’s operation.

Human Resource Management and Training

The Credit Union continues to build on tthe Human Resource Review and Implementation Programme which was started in 2017 and successfully completed in 2018. The focus has now moved to continuous training and Succession Planning.

During the year members of the Committees, Management and Staff participated in training programmes designed to enhance their knowledge and competence.

“Twenty Fiver” Savings Programme

There is currently one group of deposits left to mature under the “Twenty Fiver” Savings Plan. These deposits are scheduled to mature at December 31, 2020.

CREDIT UNION ACCOMODATION

After trying for several years to get the subject matter “off the ground” we are pleased to report that promising progress was made during 2019.


Meetings were held with the decision makers of the University and a path to achieving the goal of acquiring new and expanded accommodations has been laid.

While there is much work still to be done in achieving the desired goal, we are optimistic that the efforts required for its accomplishment will accelerate during the next fiscal year.

COMMUNITY OUTREACH

Our Credit Union continued its commitment to supporting the efforts of fellow Credit Unions, the wider community and our main benefactor, the University of the West Indies, according to Credit Union operating principles.

The following organizations were among the many that the Credit Union supported during the period under review;

• UWI Medical Students’ Association • Youth Martial Arts Championship• UWI Faculty of Social Sciences – African Awareness Treasure Hunt• Modern High School Old Scholars• UWISSA – Cave Hill• UWI Faculty of Medical Sciences – MBBS Class of 2019• UWI Department of Government, Sociology, Social Work & Psychology – Youth

Summer Programme• Barbados Association of Floral Artists• UWI Wellness Week• Kiwanis Club of Bridgetown• UWI Centre for Food Security & Entrepreneurship• UWI Annual Bazaar• Myasthenia Gravis Association (donation of Computer)• Bahamas Hurricane Relief

LOOKING AHEAD

As we end 2019 and move forward into 2020, there will be many uncertainties to face and challenges to overcome. Management and staff of our Credit Union are committed to the continuous improvement in the operations of our Credit Union. As


has been mentioned before, this will be pursued through a combination of focused leadership and management, robust internal controls and excellent member service. The Management and staff will continue to set high but realistic targets for achievement in the future.

Proactive and preventative measures to protect the savings of our members will continue to be the main goal of the Credit Union. This we will do by carefully responding to the needs of members while protecting the financial soundness of the Credit Union.

The regulatory and legal requirements of the Credit Union movement, has continued to be more onerous. However, our Credit Union will continue to take the steps necessary to ensure that its excellent track record in compliance is not compromised.

The Board encourages members to use the services of the Credit Union as it continues to provide competitive savings and lending programmes.

APPRECIATION AND ACKNOWLEDGEMENT

The Board wishes to express its sincerest appreciation for the cooperation and support given by the Committees and the members of staff as they assist in executing strategy and implementing policy that provided growth and decent returns for the owners of our Credit Union while ensuring the safety of their savings. In addition, we would like to thank you, our fellow co-operators, for your continued support and solidarity during the past year.

“For I know the plans I have for you,” declares the Lord, “plans to prosper you and not to harm you, plans to give you hope and a future.” ~~ Jeremiah 29:11 (NIV)

Jennifer Hinkson PresidentFor and on behalf of THE BOARD OF DIRECTOR


REPORT OF THE CREDIT COMMITTEEFor the year ended December 31, 2019

INTRODUCTION

During the last financial year, there was a 38.42% decrease in the value of loans approved when compared to 2018. The demand for loans and access to the Line of Credit (LOC) facility had a total approval of $3.52M for the financial year ending December 31, 2019, when compared with $5.42M approved for the year 2018, which recorded a decrease of $1.9M.

ATTENDANCE AT CREDIT COMMITTEE MEETINGS

The Committee continued to meet as scheduled once per week. A total of forty-seven (47) meetings were held during the year January to December 2019 with members’ attendance as shown in Table 1 below.

Table 1: Credit Committee Meeting Attendance

For the period January 2, 2019 – April 1, 2019

MEMBER TITLE PRESENT ABSENT WITH APOLOGIES

Julian McCollin Chairman 12 1

Maria Maynard Secretary 13 0

Ryan Headley Member 13 0

Colin White Member 12 1

Cheryl Mayers-Goddard Member 13 0


For the period April 8, 2019 – December 23, 2019


Julian McCollin Chairman 32 2

Ingrid Lashley Secretary 28 6

Ryan Headley Member 29 5

Colin White Member 30 4

Cheryl Mayers-Goddard Member 25 9

LOANS ANALYSIS

The role of the Credit Committee is to review loan applications and determine the suit-ability of an applicant for a loan. In the year under review, our reporting focused on the analysis of the types and number of loans approved, rather than loans disbursed.

A total of $3.12M ($5.07M – 2018) of regular loans was approved during the year under review. A value of $399K of lines of credit was approved compared to $348K for the corresponding period in 2018.

Housing was the number one category of loan approved at $968K and this was with an increase of $120K or 31.03% from 2018. Housing, Other Expenses, and Transport were the top three categories of loans approved for a combined total of $2.31M. Real Estate was eliminated from the top three categories by Housing for 2018, when Real Estate, Transport, and Other Expenses combined for a total of $3.12M.

Business, Funeral Expenses, Housing, Insurance, and Vehicle Repairs categories in-creased from 2018 while the other categories decreased.


Table 2 below shows an analysis of the loans approved by Category for 2019

Table 2: Regular Loan Approvals by Category for 2019

CATEGORY OF LOANS NO. OF LOANS AMOUNT % OF TOTAL LOANS

APPROVEDBusiness 3 36,000 1.15%Debts 9 175,685 5.63%Education 14 108,690 3.48%Funeral Expenses 3 31,241 1.00%Household Furnishing 0 0 0.00%Housing 55 968,434 31.03%Insurance 2 3,023 0.10%Investment 0 0 0.00%Medical Expenses 17 188,941 6.05%Other Expenses 144 912,880 29.25%Real Estate 2 258,306 8.28%Transport 13 423,796 13.58%UWI Tuition Loan 0 0 0.00%Vacation 3 9,090 0.29%Vehicle Repairs 2 4,800 0.15%Total 267 3,120,886 100%


See Table 3 below for the distribution of approvals by category of loan.

Table 3: Regular Loan Approvals by Category for 2019 with 2018 Comparisons

SUMMARY OF APPROVALS

2019 2018

CATEGORY OF LOANS NO. OF LOANS AMOUNT NO. OF

LOANS AMOUNT % Change in Value

Business 3 36,000 1 5,000 620.00

Debts 9 175,685 30 334,459 -47.47

Education 14 108,690 20 412,612 -73.66

Funeral Expenses 3 31,241 3 10,200 206.29

Household Furnishing 0 0 1 30,000 -100.00

Housing 55 968,434 64 848,128 14.18

Insurance 2 3,023 1 1,375 119.88

Investment 0 0 2 45,000 -100.00

Medical Expenses 17 188,941 11 197,660 -4.41

Other Expenses 144 912,880 173 948,264 -3.73

Real Estate 2 258,306 7 1,212,171 -78.69

Transport 13 423,796 23 963,954 -56.04

UWI Tuition Loan 0 0 1 5,788 -100.00

Vacation 3 9,090 8 49,649 -81.69

Vehicle Repairs 2 4,800 1 3,600 33.33

Total 267 3,120,886 346 5,067,859 -38.42

Line of credit 399,400 347,800 14.84

Please refer to the graphical illustrations of loan approvals showing the year by year comparisons.

APPRECIATION

The Credit Committee would like to express thanks and appreciation to the Board of Directors, Supervisory Committee, staff and all members of the Credit Union who have continued to support the Committee as we represented the interest of the Credit Union during the year 2019.

Julian McCollinChairmanFor and on behalf of the Credit Committee


Business1%

Debts5%

Education3%

Funeral Expenses1%

Household Furnishing

0%

Housing28%

Insurance0%

Investment0%

Medical Expenses5%

Other Expenses26%

Real Estate7%

Transport12%

UWI Tuition Loan0%

Vacation0%

Vehicle Repairs0% Line of credit

11%

PERCENTAGE OF LOANS APPROVED BY CATEGORY 2019

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

LOANS APPROVED - TWO YEAR SUMMARY

2019

2018


REPORT OF THE SUPERVISORY COMMITTEEFor the year ended December 31, 2019

Introduction

In accordance with the Cooperatives Act 1990-23, Sec 109 (1) and in furtherance of the U.W.I. (Cave Hill) Co-operative Credit Union Limited By-Law 82 (c) the Supervisory Committee is pleased to present its Annual Report for the year ending December 31, 2019.

The main objectives of the Supervisory Committee were to carry out appropriate tests for the purpose of ensuring adherence to the Regulations and compliance with the rel-evant By-Laws and regulations by the administration of the UWI (Cave Hill) Cooperative Credit Union Limited for the year under review.

Meetings

The Committee held twelve (12) meetings during the year with members’ attendance as shown below:


David Myles Chairman 12 0

Roseanne Maxwell Secretary 11 1

Betty Thorpe Member 12 0


Review of Operations

During the year the Committee reviewed and carried out tests in several areas, includ-ing the following:

• Loan Applications and disbursements• Delinquency management • Filing of reports with the Financial Services Commission• Securities of the Credit Union• Review of Minutes of the Board of Directors• Financial Statements• Bank Deposits

The Committee found no significant discrepancies in the stated areas.

Based on the Board’s minutes of its monthly meetings, the Committee was satisfied that the Board continued to be diligent in the discharge of its responsibilities in carefully and properly managing the affairs of the Credit Union.

Effective Financial Structure

The Committee examined the Credit Union’s monthly Financial Statements for consis-tency and stability. The Committee noted that the Board continued to ensure that the accounts of the Credit Union were well presented, and that the investment portfolio of the Credit Union remained diverse and secure. The Committee also carried out routine checks on the monthly and quarterly submissions to the Financial Services Commission and noted that the Credit Union had continued to comply with the requirements of the Financial Services Commission in all areas of its requests.

Loan Applications and Disbursements

The Committee made random checks on monthly loan applications and disbursements and found them to be in order. The Committee found that any actions taken were in keeping with sound portfolio management.

Delinquency Management/ Delinquency Reports

The Committee noted that the Credit Union continued to have a relatively low and manageable delinquency rate and that the majority of those members whose names appeared on the Delinquency lists were normally making payment, but in most instanc-es, after the payment due date. In addition, the Committee was satisfied that adequate follow-up was being done by the Credit Union management.


Members’ Account Verification

The Committee conducted the exercise during the month of June 2019 and sent verifi-cation request letters to one hundred and fifty-two (152) members who were randomly chosen from the full membership list. The response was disappointing with only six-ty-three (63) responses. Nonetheless, we take comfort from the fact that all responses were positive. The Committee would wish to appeal to members that when the ac-counts verification exercise is carried out that they make a special effort to return the in-formation, so that the Credit Union can be confident of the accuracy of the information held in respect of their accounts.

Opinion

The Supervisory Committee found no discrepancies in the operations of the Credit Union and is therefore satisfied to report that, in our view, the financial and other oper-ations of our Credit Union continued to be in compliance with the relevant By-Laws and Regulations mentioned earlier.

Appreciation

The Supervisory Committee wishes to thank the Board of Directors, the Credit Com-mittee and the Staff of the Credit Union for their continued support and cooperation during the year.

Respectfully submitted,

David MylesChairmanFor and on behalf of the Supervisory Committee


REPORT OF THE EDUCATION AND MEMBERSHIP COMMITTEE For the year ended December 31, 2019

COMMITTEE MEMBERS

Ms. Natasha Corbin - Chairman

Ms. Alicia Graham - Secretary

Mr. Jermaine Bourne - Assistant Secretary

Mr. Ian Proverbs - Member

Ms. Anthea Hinkson - Member

Mr. Julian McCollin - Member

Ms. Krystle Moore - Ex- Officio

The Education and Membership Committee continued in the year 2019 to carry out its mandate to educate and increase the membership of the Credit Union.

EDUCATION

The Committee organized two educational sessions during the year.

A session on “Disaster Preparedness” facilitated by Mrs. Judy Thomas was held on June 29, 2019 at the School for Graduate Studies and Research. The objective of this session was to improve hurricane preparedness and response in order to save lives and property. Some of the matters discussed are outlined below.

• What you need to know before and after a storm;• The risk and mitigation factors;• How to plan for different scenarios;• The things to include in a Disaster Preparedness Kit/Go-Bag; and• How to develop an Execution Plan


This session received less than the desirable attendance, which may have been at-tributed to several competing activities around the same time in Barbados. Eleven (11) members attended this seminar and expressed great appreciation for the information delivered.

The second session which was planned had to be postponed due to circumstances beyond our control. This session is now planned for early in 2020.

AWARDS

Junior Awardees for Barbados Secondary School Entrance Examination

For the year under review, nine (9) students were honoured for their success at the Barbados Secondary School Entrance Examination (BSSEE), more commonly known as the 11 PLUS or Common Entrance Examination. These awardees qualified for selection based on being active Credit Union members while completing the exam during the reporting period.

The BSSEE Awardees and the schools are listed below.

• Mr. Dominic Durant, Harrison College; • Mr. Kwabena Waterman, Seventh-Day Adventist School; • Miss Alyssa Boyce, The Ellerslie School;• Miss Kaianna Boyce, The Ellerslie School;• Miss Khalia Crookendale, The Lodge School;• Miss Amaris Nicholls, Queens College;• Miss Ashley Sealy, Queens College; and• Miss Kiara Gibson, Parkinson School

Highest Junior Saver as at December 31, 2019

To be eligible for this award, the individual must be a youth saver (16 years or under) depositing funds into the Credit Union on a continuous basis and have the highest accumulated savings at the end of the reporting period. The awardee for this category was:

• Mr. Dominic Wilson


Youngest Junior Saver as at December 31, 2019

The youngest saver with an individual account was Ms. Nikyro Hunte

Longest Junior Saver as at December 2019To be eligible for this award the member should not be older than sixteen (16) years and must have been saving with the Credit Union on a continuous basis. For this cate-gory, the award will go to Mr. Shaquon Jordon.

CELL LEADERS AWARDS PROGRAMME

This programme had been established as an incentive to encourage Cell Leaders to attract new membership for the Credit Union. The winner of this category was Mrs. Roseanne Maxwell.

MEMBERSHIP DRIVE

The Committee is committed to supporting efforts to increase membership and pro-mote the educational programmes and services of the Credit Union. Therefore, there will be continuous training and engagement with Cell Leaders to equip them with the necessary skills and information to attract new members.

MEMBERSHIP OUTREACHSome of the activities the Credit Union participated in during the year under review included the following:

• The Cave Hill Campus Science and Technology Festival held on March 14-15, 2019.

• The Cave Hill Campus Health Day Event on May 24, 2019. This event attracted two (2) new members.

• On October 17, 2019 the Credit Union celebrated the annual International Credit Union Day. The theme for this event was “Local Service. Global Reach”.

• The Credit Union also participated in the University’s Open Day event held on November 15, 2019.

PENNYWISE SAVERS INITIATIVEThe programme was launched in the first week of January 2019 as a competition pri-marily for children under sixteen (16) years of age. The sole purpose of this initiative was to encourage Junior Savers to be more financially responsible. Ninety- three (93) Junior Savers registered for the programme and the winners of the competition are listed below.


1st Place – Ethan Ellis2nd Place – Chioma Hunte3rd Place – Aaron Marshall

GENERAL REMARKSThe Education & Membership Committee is very appreciative of its role in serving our members and we will continue to be committed to the goal of keeping our members informed with current information and helping them in building a good financial foun-dation for themselves and their families. For the year 2020, we are proposing to exe-cute the initiatives listed below and look forward to your continuous support. Some of the programmes recommended for execution are as follows:

• Workshop on Home Improvement;• Workshop on a Journey to Better Health;• Involvement in the University’s Open Day Event 2020;• Involvement in the University’s Health Day Event 2020;• Participation in the New Staff Orientation Sessions of the University;• Participation in the Orientation for Graduate and Undergraduate Students; and• Continuous training for Cell Leaders

ACKNOWLEDGEMENTThe Chairman would like to express sincere thanks to the Board of Directors, Committee Members, the Cell Leaders, Management and Staff of U.W.I (Cave Hill) Co-operative Credit Union Ltd. for all the assistance given in the performance of the Committee’s duties during the last year.

Let us continue to co-operate during the coming year and well into the future.

Natasha CorbinChairpersonFor and on behalf of the Education & Membership Committee


REPORT OF THE MARKETING COMMITTEEFor the year ended December 31, 2019

Mr. Jermaine Bourne - Chairman

Mr. Neil Broome - Member (Board of Directors)

Ms. Kimberley Yearwood - Member

Mr. Kevin McCollin - Member

For the year in review, the Marketing Committee was represented by the above-mentioned members of the U.W.I. (Cave Hill) Co-operative Credit Union Ltd. Unfortunately, during the year, two members (Dr. Yolande Cooke and Mr. Marlon Woodroffe) tendered their resignations owing to increased work commitments. The Committee wishes to express sincere thanks and appreciation to them for their dedication and commitment to the Committee.

The purpose of the Marketing Committee is to spearhead all marketing-related activities geared towards enhancing the visibility of the U.W.I. (Cave Hill) Co-operative Credit Union Ltd. and the promotion of its products.

During the year, the Committee opted to pursue multi-media marketing using Social Media platforms, with Facebook as the main social media driver. In this regard, the Committee commenced the process of generating meaningful content to inform the membership and the social media followers. The process was geared strictly to stimulate both new and current membership interests.


The Committee is in the advanced stages of generating content on the following initiatives: -

o Why Borrow/Why Save/Why Join- Interest rates- Customer-focused- Lower fees- MBP benefits

o Credit Union’s scholarships (raising awareness of their existence)

- Application process (steps, where to go to access information, application deadline)

- Video testimonials/appreciation from past scholarship recipients

o Go Green (To push e-communication)- The benefits of going green- The more efficient the Credit Union, the more value is available to its

members.

o Student/Educational Loans - Targeting Post Graduate Students - Centre for Professional Development and Life-Long Learning

o Credit Union Convenience Options and Benefits (Use of UWI promotional/advertising screens on Campus)

To support the listed initiatives, and to promote the Credit Union and its services as a better option, the Committee will also be reviewing the existing information highlighting the services of the Credit Union and reproducing the targeted areas of emphasis as multimedia productions.

The Marketing Committee would like to thank the Board for its continued support.

Jermaine BourneChairmanFor and on behalf of the Marketing Committee


U.W.I. (CAVE HILL) CO-OPERATIVE CREDIT UNION LTD.

FINANCIAL STATEMENTS

DECEMBER 31, 2019

PJC Chartered Accountants

Barbados

“we reckon but people count”

U.W.I. (CAVE HILL)CO-OPERATIVE CREDIT UNION LTD.

FINANCIAL STATEMENTSDECEMBER 31, 2019



Financial StatementsDecember 31, 2019

1

CONTENTS

Independent Auditors’ Report………………………………………………………… 2

Financial StatementsBalance Sheet………………………………………………..…………………………….. 5Statement of Changes in Equity………………………………………………………….. 6Statement of Comprehensive Income…………………………………………………… 7Statement of Cash Flows…………………………………………………………………. 8Notes to Financial Statements……………………………………………………………. 9

Other Financial InformationSchedule of Other Operating Expenses……………..………………………………….. 20

Independent Auditors’ Report.................................................................. ............ 51

Financial StatementsBalance Sheet............................................................................................................ 54 Statement of Changes in Equity................................................................................. 55 Statement of Comprehensive Income........................................................................ 56 Statement of Cash Flows........................................................................................... 57 Notes to Financial Statements.................................................................................... 58

Other Financial InformationSchedule of Other Operating Expenses..................................................................... 69


Since 1990 P.O. Box 78WRD

Professional Business Centre29 George Street, Belleville, St. Michael BB11316

Barbados, W.I.Tel/Fax: (246) 429-7531

“We reckon but people count” Email – [email protected]

2

PJC Peter J. Carter & Co. Chartered Accountants

Independent Auditors’ ReportThe MembersU.W.I. (Cave Hill) Co-operative Credit Union Ltd.

Opinion We have audited the financial statements of U.W.I. (Cave Hill) Co-operative Credit Union Ltd.,which comprise the statement of financial position as of December 31, 2019, and the Statement of Changes in Equity, Statement of Comprehensive Income and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Credit Union as of December 31, 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Credit Union in accordance with the ethical requirements that are relevant to our audit of the financial statements in Barbados, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial StatementsManagement is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Credit Union’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Credit Union or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Credit Union’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Since 1990

Independent Auditors’ Report

3


PJC

Auditors’ Responsibilities for the Audit of the Financial Statements - continuedAs part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the entity to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Other informationManagement is responsible for any other information that may be distributed or otherwise provided along with the financial statements and our Auditors’ Report thereon, such as information that may be contained in an Annual Report.

Our opinion on the financial statements does not cover any other information and we do not express any form of assurance on the other information.

In connection with our audit of the financial statements, our responsibility is to read any other information as identified above and, in doing so, consider whether any such information appears to be materially misstated or inconsistent with the financial statements. If, based on the work we have performed, we conclude that there is a material misstatement in the other information, then we are required to report that fact. At the time of reporting we have not seen any other information and so we cannot offer any comment thereon.


Since 1990


4


PJC

Other MatterThis report is made solely to the Members of U.W.I. (Cave Hill) Co-operative Credit Union Ltd., as a body, in accordance with Section 123 of the Co-operative Societies Act of Barbados. Our audit work has been undertaken so that we might state to the Members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Credit Union and its Members as a body, for our audit work, for this report, or for the opinion we have formed.

------------------------------------ PETER J. CARTER & CO.Chartered AccountantsBarbados

March 11, 2020

Since 1990


4


PJC

Other MatterThis report is made solely to the Members of U.W.I. (Cave Hill) Co-operative Credit Union Ltd., as a body, in accordance with Section 123 of the Co-operative Societies Act of Barbados. Our audit work has been undertaken so that we might state to the Members those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Credit Union and its Members as a body, for our audit work, for this report, or for the opinion we have formed.

------------------------------------ PETER J. CARTER & CO.Chartered AccountantsBarbados

March 11, 2020



Balance SheetDecember 31, 2019Expressed in Barbados dollars

5

2019 2018AssetsCurrent assetsCash and cash equivalents - Note 7 5,098,466 1,953,794Accounts receivable and prepayments - Note 8 870,993 419,975Investments - Note 10 7,996,716 6,823,417

13,966,175 9,197,186Non-current assetsLoans to members - Note 9 24,678,489 25,520,623 Investments - Note 10 28,579,359 28,557,731Plant and equipment - Note 11 109,725 67,837

Total assets 67,333,748 63,343,377

Liabilities and equityLiabilitiesAccounts payable and accruals - Note 12 148,910 91,184 Deposits and non-qualifying shares payable - Note 13 54,700,616 51,333,775

Total liabilities 54,849,526 51,424,959

EquityQualifying shares - Note 14 186,300 182,000Other reserves - Note 3 &15 4,384,256 4,210,362Statutory reserve - Note 3(l) 1,884,833 1,884,213Equalization reserve - Note 3(l) 4,998,910 4,584,841Undivided earnings 1,029,923 1,057,002Total equity 12,484,222 11,918,418

Total liabilities and equity 67,333,748 63,343,377

See notes to financial statements.

Approved by the Board of Directors, March 11, 2020, and signed on their behalf by:



Statement of Changes in EquityYear ended December 31, 2019Expressed in Barbados dollars

6

Qualifying shares

Other reserves

Statutory reserve

Equalization reserve

Undivided earnings

Totalequity

Balance - December 31, 2017 174,300 50,000 1,883,083 3,629,480 824,541 6,561,404

Qualifying shares issued 7,700 - - - - 7,700Bonus on net savings - 0.5% - - - - (137,666) (137,666)Dividends - 10% - - - - (16,750) (16,750)Patronage refund - 8% - - - - (158,908) (158,908)

Entrance fees - - 1,130 - - 1,130Net comprehensive income for year - - - - 5,661,508 5,661,508

Transfer to Common Good fund -Note 15 - 10,000 - - (10,000) -Transfer to Equalization reserve - - - 955,361 (955,361) -Balance - December 31, 2018, as previously stated 182,000 60,000 1,884,213 4,584,841 5,207,364 11,918,418

Transfer Unrealized gains onunquoted securities - Note 15 - 5,105,723 - - (5,105,723) -Transfer to Equalization reserve - (955,361) - - 955,361 -Balance - December 31, 2018, as re-stated 182,000 4,210,362 1,884,213 4,584,841 1,057,002 11,918,418

Qualifying shares issued 4,300 - - - - 4,300Bonus on net savings - 0.5% - - - - (161,624) (161,624)Dividends - 10% - - - - (26,394) (26,394)Patronage refund - 8% - - - - (166,236) (166,236)Entrance fees - - 620 - - 620Net comprehensive income for year - - - - 915,138 915,138Transfer to Common Good fund -Note 15 - 10,000 - - (10,000) -Transfer to Interest on non-performing loans - Note 15 - 84,326 - - (84,326) -Transfer Unrealized gains onunquoted securities - Note 15 - 493,637 - - (493,637) -Transfer to Equalization reserve - (414,069) - 414,069 - -

Balance - December 31, 2019 186,300 4,384,256 1,884,833 4,998,910 1,029,923 12,484,222



Statement of Changes in EquityYear ended December 31, 2019Expressed in Barbados dollars

6

Qualifying shares

Other reserves

Statutory reserve

Equalization reserve

Undivided earnings

Totalequity

Balance - December 31, 2017 174,300 50,000 1,883,083 3,629,480 824,541 6,561,404

Qualifying shares issued 7,700 - - - - 7,700Bonus on net savings - 0.5% - - - - (137,666) (137,666)Dividends - 10% - - - - (16,750) (16,750)Patronage refund - 8% - - - - (158,908) (158,908)

Entrance fees - - 1,130 - - 1,130Net comprehensive income for year - - - - 5,661,508 5,661,508

Transfer to Common Good fund -Note 15 - 10,000 - - (10,000) -Transfer to Equalization reserve - - - 955,361 (955,361) -Balance - December 31, 2018, as previously stated 182,000 60,000 1,884,213 4,584,841 5,207,364 11,918,418

Transfer Unrealized gains onunquoted securities - Note 15 - 5,105,723 - - (5,105,723) -Transfer to Equalization reserve - (955,361) - - 955,361 -Balance - December 31, 2018, as re-stated 182,000 4,210,362 1,884,213 4,584,841 1,057,002 11,918,418

Qualifying shares issued 4,300 - - - - 4,300Bonus on net savings - 0.5% - - - - (161,624) (161,624)Dividends - 10% - - - - (26,394) (26,394)Patronage refund - 8% - - - - (166,236) (166,236)Entrance fees - - 620 - - 620Net comprehensive income for year - - - - 915,138 915,138Transfer to Common Good fund -Note 15 - 10,000 - - (10,000) -Transfer to Interest on non-performing loans - Note 15 - 84,326 - - (84,326) -Transfer Unrealized gains onunquoted securities - Note 15 - 493,637 - - (493,637) -Transfer to Equalization reserve - (414,069) - 414,069 - -

Balance - December 31, 2019 186,300 4,384,256 1,884,833 4,998,910 1,029,923 12,484,222




Statement of Comprehensive IncomeYear ended December 31, 2019Expressed in Barbados dollars

7

2019 2018Interest incomeLoans to members 2,070,951 2,111,435 Investments 602,503 1,127,809 Cash and cash equivalents 3,067 5,237

2,676,521 3,244,481Interest expenseDeposits - 0.5% to 5% p.a. (prior year 1% to 5%) 278,788 434,643 Non-qualifying shares - 1.25% to 3.50% p.a. (prior year 2% to 3.5%) 564,602 707,372

843,390 1,142,015

Net interest income 1,833,131 2,102,466

Other incomeDividends 185,369 119,249 Sundry 4,724 2,452 Bad debts recovered 1,050 -

191,143 121,701Other expenditureDepreciation 39,139 31,169Loss on disposal of plant and equipment - 843Net present value adjustment on GOB investment - Note 10(b) 273,000 -Staff costs - Note 6 730,176 693,058 Other operating expenses 560,458 943,312

1,602,773 1,668,382

Net income for year 421,501 555,785

Other comprehensive incomeGain on revaluation of unquoted securities - Note 10 (a) 493,637 5,105,723

Net comprehensive income for the year 915,138 5,661,508




Statement of Cash FlowsYear ended December 31, 2019Expressed in Barbados dollars

8

2019 2018Cash provided / (used) by:Operating activitiesNet comprehensive income for year 915,138 5,661,508Add items not involving cashDepreciation 39,139 31,169Loss on disposal of plant and equipment - 843

954,277 5,693,520Change in non-cash operating itemsAccounts receivable and prepayments (451,018) 367,766 Accounts payable and accruals 57,726 (25,178)Deposits and non-qualifying shares payable 3,366,841 3,850,938

Net cash provided by operations 3,927,826 9,887,046

Investing activitiesLoan repayments - net 842,134 268,982 Decrease in investments (1,194,927) (10,573,645)Purchase of plant and equipment (81,027) (17,353)

Net cash used by investing activities (433,820) (10,322,016)

Financing activitiesEntrance fees 620 1,130 Dividends paid (26,394) (16,750)Qualifying shares issued 4,300 7,700 Bonus on net savings (161,624) (137,666)Patronage refund (166,236) (158,908)

Net cash used by financing activities (349,334) (304,494)

Increase / (decrease) in cash and cash equivalents 3,144,672 (739,464)

Cash and cash equivalents - start of year 1,953,794 2,693,258

Cash and cash equivalents - end of year 5,098,466 1,953,794




Notes to Financial Statements December 31, 2019Expressed in Barbados dollars

9

1. RegistrationU.W.I. (CAVE HILL) CO-OPERATIVE CREDIT UNION LTD. was registered on January 29, 1986 in accordance with the Co-operative Societies’ Act, Cap 378. The Society was continued on June 15, 1994 under the Co-operative Societies’ Act 1990. The principal place of business is located at Cave Hill, St. Michael, Barbados.

2. Principal Activities

The principal activities are as follows:

(a) The provision of means whereby savings can be effected by members and whereby shares in the Credit Union can be purchased;

(b) The education of members in co-operative principles and methods and the efficient management of the Credit Union’s affairs;

(c) The creation, out of the savings of members and otherwise, of a source of credit available to members on reasonable terms and conditions.

3. Significant accounting policies

(a) Basis of accountingThese financial statements are stated in Barbados dollars and have been prepared in accordance with International Financial Reporting Standards (IFRS).

(b) Critical accounting judgments and key sources of estimation uncertaintyThe preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Key sources of estimation uncertainty include provision for impairment of loans,determination of appropriate rates for depreciation of plant and equipment and estimation of the fair value of unquoted equity investments. The credit union’s critical accounting policies and estimates, and their application, are reviewed periodically by management.

(c) Measurement basisThe measurement basis used is historical cost except for equity investments which are stated at their fair values.


Notes to Financial StatementsDecember 31, 2019Expressed in Barbados dollars

10

3. Significant accounting policies - continued

(d) Changes in accounting policiesManagement has reviewed the new standards, amendments and interpretations to published standards that are not yet effective and which the Credit Union has not adopted early. Management has assessed the relevance of all such new standards, amendments and interpretations and has concluded that no such amendments are likely to have a material effect on its financial statements.

(e) TaxationThe Credit Union is not required to pay taxes on its net income under Section 9(g) of the Income Tax Act of Barbados.

(f) Income recognitionIncome is recognized on the accrual basis of accounting. Dividend income is recognised when it is declared by the investee company.

(g) Cash and cash equivalentsCash and cash equivalents comprise cash on hand and at bank and call deposits.

(h) Impairment ProvisionThe level of impairment of the loan portfolio is determined using an Expected Credit Loss (ECL) Model. All outstanding loans are taken into account, as well as loan commitments.

(i) DepreciationDepreciation is provided on plant and equipment on a straight-line basis at rates designed to reduce the cost of assets to their residual value at the end of their usefullives in the business. The annual rates being used are: Furniture - 10%; Equipment -12.5% and 20%.

(j) InvestmentsInvestments are initially recorded at cost. For subsequent measurement, investments that are classified as being held to maturity are recorded at cost or amortized cost. Available-for-sale equity investments are shown at fair value and any resulting unrealized gain or loss is included in the Statement of Comprehensive Income, and thereafter are taken in the Statement of Changes in Equity through the Unrealized Gains reserve. All investments are subject to adjustment for any impairment of value. Impairment occurs where the estimated recoverable amount of an asset is less than its carrying value. Management makes an assessment of whether any assets are impaired in value as at each Balance Sheet date.




10


(d) Changes in accounting policiesManagement has reviewed the new standards, amendments and interpretations to published standards that are not yet effective and which the Credit Union has not adopted early. Management has assessed the relevance of all such new standards, amendments and interpretations and has concluded that no such amendments are likely to have a material effect on its financial statements.

(e) TaxationThe Credit Union is not required to pay taxes on its net income under Section 9(g) of the Income Tax Act of Barbados.

(f) Income recognitionIncome is recognized on the accrual basis of accounting. Dividend income is recognised when it is declared by the investee company.

(g) Cash and cash equivalentsCash and cash equivalents comprise cash on hand and at bank and call deposits.

(h) Impairment ProvisionThe level of impairment of the loan portfolio is determined using an Expected Credit Loss (ECL) Model. All outstanding loans are taken into account, as well as loan commitments.

(i) DepreciationDepreciation is provided on plant and equipment on a straight-line basis at rates designed to reduce the cost of assets to their residual value at the end of their usefullives in the business. The annual rates being used are: Furniture - 10%; Equipment -12.5% and 20%.

(j) InvestmentsInvestments are initially recorded at cost. For subsequent measurement, investments that are classified as being held to maturity are recorded at cost or amortized cost. Available-for-sale equity investments are shown at fair value and any resulting unrealized gain or loss is included in the Statement of Comprehensive Income, and thereafter are taken in the Statement of Changes in Equity through the Unrealized Gains reserve. All investments are subject to adjustment for any impairment of value. Impairment occurs where the estimated recoverable amount of an asset is less than its carrying value. Management makes an assessment of whether any assets are impaired in value as at each Balance Sheet date.




11


(k) Education fundA provision is made for Education as stipulated by the Barbados Co-operative & Credit Union League Ltd. The amount provided is three percent (3%) of net income or $15,000, whichever is the lesser.

(l) Statutory Reserve, Equalization Reserve and Qualifying SharesSection 197(2) of the Co-operatives Societies Act (the Act) prescribes that the Credit Union is required to establish and maintain reserves consisting of the greater of one half of one per cent (0.5%) of assets or twenty-five per cent (25%) of surplus until the capital of the Credit Union equals ten percent (10%) of the total assets of the Credit Union. Management has set a Capital Policy of ten and one half percent (10.5%) of total assets. For the purpose of Section 197(2) of the Act, the capital of the Credit Union includes the Statutory Reserve, Qualifying Shares and Equalization Reserve. Management has established an Equalization Reserve which is taken into account in arriving at the target of 10.5% of total assets, since it can only be used in similar manner to the statutory reserve required by the above-mentioned Section 197(2) of the Act. The Equalization Reserve is adjusted at each Balance Sheet date, as required, in order to maintain the target of 10.5% of total assets.

(m) Common Good fundThe Credit Union has established a Common Good fund which is credited annually with the greater of one percent (1%) of the net income or ten thousand dollars ($10,000).

(n) Reserve for interest on non-performing loansThis amount represents interest accrued on non-performing loans where certain conditions are met in accordance with IFRS 9 (2018 - IAS 39). The guidelines of Section 202(2) of the Co-operatives Societies Act Cap. 378A, do not allow for the accrual of such interest. The interest is therefore set aside in a reserve and is not available for distribution to members.



12

4. Fair Value of Financial Instruments

(a) Financial InstrumentsFinancial instruments consist of financial assets and liabilities. Financial assets include cash and cash equivalents, accounts receivable, loans to members and investments. Financial liabilities include accounts payable and accruals, and deposits and non-qualifying shares payable.

(b) Fair ValueFair value represents the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair value is best evidenced by a quoted market value. An estimate, based on assumptions, is made of the fair value of each class of financial instrument.

(c) Credit RiskCredit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. As part of the risk management process, bank deposits are placed only with reputable banking institutions. Loan limits are established and approved by Management and security is generally required for loans granted. Credit risk on accounts receivable is limited by the provision made for impairment.

(d) Liquidity RiskLiquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. It arises because of the possibility that the entity could be required to pay its liabilities earlier than expected. Management reviews the liquidity position of the Credit Union periodically to assess the availability of cash resources as compared to the projected cash outflows.

(e) Market RiskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes interest rate risk. Interest rate risk is the risk of fluctuations in interest rates. The Credit Union’s exposure to market risk on its financial instruments is disclosed in the Notes 7, 9, and 10.




12

4. Fair Value of Financial Instruments

(a) Financial InstrumentsFinancial instruments consist of financial assets and liabilities. Financial assets include cash and cash equivalents, accounts receivable, loans to members and investments. Financial liabilities include accounts payable and accruals, and deposits and non-qualifying shares payable.

(b) Fair ValueFair value represents the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair value is best evidenced by a quoted market value. An estimate, based on assumptions, is made of the fair value of each class of financial instrument.

(c) Credit RiskCredit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. As part of the risk management process, bank deposits are placed only with reputable banking institutions. Loan limits are established and approved by Management and security is generally required for loans granted. Credit risk on accounts receivable is limited by the provision made for impairment.

(d) Liquidity RiskLiquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. It arises because of the possibility that the entity could be required to pay its liabilities earlier than expected. Management reviews the liquidity position of the Credit Union periodically to assess the availability of cash resources as compared to the projected cash outflows.

(e) Market RiskMarket risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk includes interest rate risk. Interest rate risk is the risk of fluctuations in interest rates. The Credit Union’s exposure to market risk on its financial instruments is disclosed in the Notes 7, 9, and 10.




13

5. Related parties

(a) Related parties exist where one party has the ability to control or exercise significant influence over the financial or operating decisions of another party. Transactions with related parties may be entered into in the normal course of business. Any such transactions are undertaken on commercial terms and conditions and are conducted at market rates. The Credit Union has a related party relationship with its Directors and its Key Management Personnel.

(b) As at the Balance Sheet date, balances with Directors were as follows:2019 2018

Loans receivable 868,535 793,396Shares and deposits payable 1,188,303 1,086,618

Transactions with Directors during the year were as follows:

Reimbursable expenses paid to Directors 31,650 29,500

(c) As at the Balance Sheet date, balances with Key Management Personnel were as follows:

2019 2018Loans receivable 561,018 623,560Shares and deposits payable 81,312 81,809

Key management personnel remuneration is included in Staff Costs, as follows:Employee benefits 279,884 263,963




14

6. Staff costs 2019 2018

730,176 693,058

The average number of employees during the year was eight (prior year eight).

7. Cash and cash equivalents 2019 2018

Bank account - non interest earning 241,049 214,292

Bank account - 0.05% p.a. (prior year 0.05%) 1,472,215 1,388,856

Demand depositsCity of Bridgetown Co-operative Credit Union Limited 3,283,317 250,000Central Fund Facility Trust- Statutory Reserve deposit - 1.25% p.a. (prior year 3%) 15,000 15,000

- Ordinary deposit - 0.75% p.a. (prior year 2.75%) 52,085 50,846Barbados Co-operative & Credit Union League Ltd.:- Ordinary shares 34,800 34,800

5,098,466 1,953,794

8. Accounts receivable and prepayments 2019 2018

Consolidated Finance matured term deposit 510,000 -Interest receivable 221,817 239,171Premiums receivable 54,254 35,814Prepayments 84,922 144,990

870,993 419,975




15

9. Loans to members 2019 2018

(a) Total loans outstanding 25,031,489 26,020,623Less: Impairment provision (353,000) (500,000)

Net value of loans 24,678,489 25,520,623

(b) Movement on impairment provision 2019 2018

Balance - start of year 500,000 226,000(Decrease) / increase in provision (147,000) 274,000

Balance - December 31, 2019 353,000 500,000

(c) As of the Balance Sheet date, the outstanding loans included a total of $19,526,561(prior year $20,069,445) which carry interest at the rates of 6.5%, 6.6%, 6.9%, 7.2% and 7.5% per annum on the reducing balance basis. These loans relate to purchase of real estate. Interest on other loans is normally charged at rates between 5.5% and 15% per annum on the reducing balance basis.

(d) Maturity profile of loans 2019 2018Amount due in:Less than one year 254,817 248,603 One to five years 7,334,546 7,014,690 Over five years 17,442,126 18,757,330

Total 25,031,489 26,020,623

(e) IFRS 9 came into effect on January 01, 2018 and was implemented for the Credit Union’s 2018 financial statements. Special models have been developed (both internal and external) to facilitate the implementation of the Expected Credit Loss (ECL) Impairment requirements of the Standard. The outcome of these models is reflected in the impairment provision shown in the financial statements.

(f) Commitments 2019 2018

Loans approved but not yet disbursed 1,497,026 1,077,929




16

10. Investments (See also Note 3) 2019 2018Current investments Held-to-maturityTerm deposits - 1.25% to 2.6% p.a. (prior year 1.25% to 3%), maturing in one year 7,834,161 6,624,903Fixed Rate Bonds - 7.5% p.a. (prior year 7%) 162,555 150,914Government Savings Bonds - 47,600

7,996,716 6,823,417Non-current investmentsHeld-to-maturity Term deposit - 7% p.a., maturing May 2021 (prior year7%) 1,796,556 2,018,230Fixed Rate Bonds - 7.5% p.a.% (prior year 7.5%) 620,029 782,584 Net Government Restructured Securities - 1% to 3.75% p.a. 18,396,958 18,669,958

Available-for-saleBarbados Co-operative & Credit Union League Ltd.:- 20 Membership shares 200 200Co-operators General Insurance Co. Ltd.:- 11,550 common shares (prior year 11,204) 3,783,434 3,532,069Co-operators General Management Co. Inc.:- 25,442 common shares (prior year 23,485) 3,982,182 3,554,690

28,579,359 28,557,731

36,576,075 35,381,148

(a) The fair value of unquoted equity investments is based on a valuation done by the Consulting Division of the Cave Hill School of Business (CHSOB). CHSOB performed a valuation as at May 31, 2019 for each of these unquoted investments, using a range of generally accepted valuation models. The “best estimate” of the fair market value was estimated as the median value of the fair market values generated from the various models used. The valuation models used were Book Value, Market to Book, Trailing Price Earnings, Price to Sales, Price to Earnings Before Tax and Dividend Growth, Price to Earnings Before Tax, Depreciation and Amortization, Dividend Growth Model and Free Cash Flows to Equity. The Directors consider that the valuation of the unquoted equity investments arrived at by the process described above reflects their fair value as at the balance sheet date.




17

10. Investments (See also Note 3) - continued

(b) Government restructured securities comprise of Series B securities consisting of eleven (11) amortizing strips with maturities ranging from five (5) to fifteen (15) years. Interest is payable quarterly. Interest rates are 1% per annum for the first three (3) years beginning October 01, 2018 and ending September 30, 2021, 2.5% per annum for year four (4),beginning October 01, 2021 and ending September 30, 2022, and thereafter 3.75% per annum, starting October 1, 2022 unti4l maturity on September 30, 2033. The principal of each strip will be repaid in four equal quarterly instalments commencing one year prior to the maturity date of that strip. In keeping with generally accepted accounting policies and standards, Management has applied a Net Present Value (NPV) calculation to its holdings of the securities mentioned above. This calculation has resulted in a negative NPV adjustment of two hundred and seventy-three thousand dollars ($273,000).

(c) The maturity profile of the securities is as follows:Maturity Profile 2019 2018

One to five years 1,398,380 1,398,380Five to ten years 7,833,915 7,833,915Over ten years 9,437,663 9,437,663Gross Government restructured securities 18,669,958 18,669,958Net present value adjustment (273,000) -

Net Government restricted securities 18,396,958 18,669,958

11. Plant and equipment 2019 2018 2017

(a) Gross carrying amountCost 457,884 376,857 367,814Accumulated depreciation (348,159) (309,020) (285,318)

Net book value - end of year 109,725 67,837 82,496

2019 2018(b) Reconciliation of Net Book Values

Balance - start of year 67,837 82,496Purchases 81,027 17,353Loss on disposal of plant and equipment - (843)Depreciation charge for year (39,139) (31,169)

Balance - December 31, 2019 109,725 67,837



18

12. Accounts payable and accruals 2019 2018

Interest payable 2,349 990 Other accounts 146,561 90,194

148,910 91,184

13. Deposits and non-qualifying shares payable 2019 2018Demand depositsRegular deposits 5,695,675 5,811,186Special savings 941,323 888,902Share savings 42,969,348 37,051,733Tuition savings 42,738 41,274Term depositsTerm deposits, maturing in one year 99,419 142,064Term deposits, maturing in three years 44,574 44,574Twenty-fiver savings, current 4,907,539 2,552,510Twenty-fiver savings, non-current - 4,801,532

54,700,616 51,333,775

(a) There is no pre-determined rate of interest payable on call deposits and shares. The interest rate on these deposits and shares is determined by the Directors from time to time and is generally paid on a quarterly basis. Interest on fixed deposits is paid annually at a pre-determined rate. Interest on twenty-fiver savings is paid quarterly at a pre-determined rate.

14. Qualifying shares

(a) There is no limit to the number of shares that the Credit Union is authorized to issue. The number of shares held by a member does not determine the member’s voting rights since each member is entitled to one vote only at any general meeting.

(b) The Credit Union is required by its By-Laws to have at least one class of shares, namely qualifying shares, which shall be issued at a par value of $10. These shares shall be held by all members and shall be not withdrawable on demand but transferrable.




18

12. Accounts payable and accruals 2019 2018

Interest payable 2,349 990 Other accounts 146,561 90,194

148,910 91,184

13. Deposits and non-qualifying shares payable 2019 2018Demand depositsRegular deposits 5,695,675 5,811,186Special savings 941,323 888,902Share savings 42,969,348 37,051,733Tuition savings 42,738 41,274Term depositsTerm deposits, maturing in one year 99,419 142,064Term deposits, maturing in three years 44,574 44,574Twenty-fiver savings, current 4,907,539 2,552,510Twenty-fiver savings, non-current - 4,801,532

54,700,616 51,333,775

(a) There is no pre-determined rate of interest payable on call deposits and shares. The interest rate on these deposits and shares is determined by the Directors from time to time and is generally paid on a quarterly basis. Interest on fixed deposits is paid annually at a pre-determined rate. Interest on twenty-fiver savings is paid quarterly at a pre-determined rate.

14. Qualifying shares

(a) There is no limit to the number of shares that the Credit Union is authorized to issue. The number of shares held by a member does not determine the member’s voting rights since each member is entitled to one vote only at any general meeting.

(b) The Credit Union is required by its By-Laws to have at least one class of shares, namely qualifying shares, which shall be issued at a par value of $10. These shares shall be held by all members and shall be not withdrawable on demand but transferrable.




19

15. Other reservesCommon

Good fundUnrealized

Gains reserve

Reserve for interest on non-

performing loans

Total Other reserves

Balance - start of year 60,000 4,150,362 - 4,210,362Transfer from Undivided earnings 10,000 493,637 84,326 587,963Transfer to Equalization reserve - (414,069) - (414,069)

Balance - end of year 70,000 4,229,930 84,326 4,384,256

(a) The Common Good fund was established by the Credit Union to assist members who find themselves with catastrophic health and other significant negative life changing experiences. It is funded annually by the greater of one percent (1%) of the Credit Union’s net annual surplus or ten thousand dollars ($10,000).

(b) The Unrealized Gains reserve represents gains on the Credit Union’s holdings of unquoted equity investments. These reserves are not intended for distribution but may be used to support the capital of the Credit Union.

(c) The Reserve for interest on non-performing loans represents interest accrued on non-performing loans where certain conditions are met in accordance with IFRS 9 (2018 - IAS 39). The guidelines of Section 202(2) of the Co-operatives Societies Act Cap. 378A, do not allow for the accrual of such interest. The interest is therefore set aside in a reserve and is not available for distribution to members.

16. Comparative amounts

Certain of the comparative amounts have been reclassified to conform to the current year’s presentation.



Schedule of Other Operating ExpensesYear ended December 31, 2019Expressed in Barbados dollars

20

2019 2018

Advertising 9,381 24,856Bad debts expense 189 34,052Change in impairment provision (147,000) 274,000Bank charges 21,823 22,898Cleaning and office expenses 16,201 18,668Conventions and seminars 79,821 68,997Donations 17,525 9,143Education Fund provision 15,000 15,000Insurance 11,053 9,963League membership dues 38,952 34,050League Development Fund 4,889 4,227Meetings - Annual General Meeting 54,910 44,645Meetings - other 14,857 14,607Miscellaneous 5,698 2,158Financial Services Commission annual fee 17,489 -Mutual Benefits Plan assessments 153,230 152,884Office supplies 5,113 7,057Postage 5,430 6,237Professional fees 63,755 56,920Reimbursable expenses - directors 67,070 62,490Repairs and rental of equipment 25,475 7,075Scholarships 23,120 7,500Security 6,233 9,094Software maintenance 15,279 12,023Stationery 30,087 38,452Training - 1,874Utilities 4,878 4,442

560,458 943,312


REPORT OF THE TREASURERFor the year ended December 31, 2019

Notwithstanding the continued pressures in the financial and economic environments, we are pleased to report that the financial year ended December 31, 2019 was another reasonably successful one for the UWI (Cave Hill) Co-operative Credit Union Limited. However, we must report that for the second consecutive year, the Credit Union did not achieve year on year increases in its key operating areas. The following analysis and accompanying data provides details of the year’s operation.

BALANCE SHEET

Our Credit Union’s asset base continued to increase with Total Assets of $67.334M at December 31, 2019 compared to $63.343M in the prior year for an increase of 6.30%. It should be noted that the substantial increase in assets was mainly the result of Members’ moving funds from other financial institutions. Additionally, the shares in Co-operators General Insurance Company Limited and Co-operators General Management Company Inc. were once again fair valued to satisfy the International Financial Reporting Standard # 9 (IFRS 9). This exercise added $494K to the Credit Union’s Total Assets.

Members’ Savings grew by 6.56%, moving from $51.334M at December 31, 2018 to $54.701M at December 31, 2019.

The Policy Capital of the Credit Union exceeded the Mandated Capital by $337K at December 31, 2019.

See Tables 1(a) and 1(b).

STATEMENT OF COMPREHENSIVE INCOME

Gross Operating Income for the year under review was $2.868M compared to $3.366M in the prior period for a decrease of -14.81%. This is a continuation of the unfortunate situation which resulted from the lower interest being earned due to the Government of Barbados Debt Restructuring Program (DRP) in 2018. As indicated in a prior report, the DRP will have a negative impact on the Credit Union’s earnings over the next fourteen (14) years. Net Income before appropriations and Other Comprehensive Income was $422K or 20.51% below the 2018 figure of $530K.


Interest received on loans decreased by 1.92% falling from $2.111M to $2.071M.

The Credit Union had Other Comprehensive Income $493,637 resulting from the shares in Co-operators General Insurance Company Limited and Co-operators General Management Company Inc. being fair valued to satisfy IFRS 9.

See Table 2.

LOAN PORTFOLIO

The Loan Portfolio had a negative year. There was a decrease of -3.99% in the Net Loans outstanding at the end of 2019. Gross Loans outstanding decreased by -3.80%. These percentages clearly violate the goals of the PEARLS guidelines for loan growth rates. Total Loans approved in the year decreased by -35.01% from the prior year. Gross Loans decreased from 41.08% of Total Assets recorded in 2018 to 37.12% of Total Assets in 2019. This percentage is significantly below the lower end of the PEARLS ratio guidelines of 70%.

See Tables 3 (a) to 3 (d).

DELINQUENCY, IMPAIRMENT AND PROVISIONING

The Board and Delinquency Committee continued to monitor the late payment/delinquencies of some members.

The delinquency rate at the UWI Credit Union continues to be one of the lowest in the Credit Union movement in Barbados (1.30% 2019 and 0.85% for 2018). However, any level of delinquency is of concern to the Board, Committees and staff of the Credit Union. Therefore, adequate provision has been made in the Financial Statements to cover any potential losses identified at year-end.


Delinquency Table

2019 2018

Details Number Amount $ Number Amount $

6 to less than 12 months 35 93,469 35 64,935

Over 12 months 12 232,575 10 156,044

TOTAL 47 326,044 45 220,979

International Financial Reporting Standard # 9 (IFRS 9)

Expected Credit Loss (ECL)/Impairment Model

IFRS 9 came into effect on January 1, 2018 and was implemented for the Credit Union’s 2018 Financial Statements. Special models have been developed (both internal and external) to facilitate the implementation of the ECL/Impairment requirements of the Standard. The outcome of these models is reflected in the Impairment Provision of $353K shown in the Financial Statements (Notes 9 (b) and 9 (e)).

With the introduction of IFRS 9, the staff of the Credit Union will continue to work diligently to keep delinquency under control. While the initial Impairment Charge mentioned above seems significant, were it not for this effort the figure would have been higher. Their hard work has therefore helped our Credit Union to maintain one of the lowest delinquency rates in the local Credit Union movement.

Valuation of Unquoted Equity Investments

IFRS 9 has also required that unquoted equity investments be ‘fair valued’ and brought to account in the Financial Statements. Our Credit Union’s unquoted equity investments in both Co-operators General Insurance Co. Ltd. and Co-operators General Management Co. Inc. were therefore ‘fair valued’ by independent professionals and the resulting gain of $493,637 is shown in the Financial Statements under ‘Other Comprehensive Income’ (see Note 10 (a)). While this gain will be used to provide ongoing support for the Credit Union’s capital, due to the statutory restrictions place on these types of gains, there are no plans to distribute any of this amount in the near future.


OTHER MATTERSGovernment of Barbados Debt Restructuring Program (DRP) The Government of Barbados (GOB) implemented a DRP with effect from October 1, 2018. This program had a negative effect on the Credit Union’s 2018 Gross Operating Income in the last quarter of that year as well as a full year impact on the current fiscal year. As indicated earlier in this report, the impact of the DRP will continue to have a significant impact on the Credit Union’s earnings over the next fourteen (14) years.

The Credit Union has $18.670M in GOB investments which are affected by the DRP (See Note 10 (c).

In keeping with generally accepted accounting policies and standards, Management has applied a Net Present Value (NPV) calculation to its holdings of the securities mentioned above. This calculation has resulted in a negative NPV adjustment of $273K. (See Note 10(b)).

Returns to MembersOur Credit Union continues to provide members with competitive returns on their savings as well as very competitive lending rates. A comparative breakdown of returns to members is shown in Table 4(a) while Table 4(c) shows the rates used to calculate interest on members’ savings during the year. Table 4(b) shows the distribution of the Gross Operating Income.

CONCLUSIONGiven the continued economic challenges facing our country and the impact it is having on most businesses, the positive outcome recorded in the year under review is commendable. This demonstrates the unwavering support of our members. While every effort will be made to safely grow revenue, sensible expense control will be important more than ever. It is also very important that we continue to strengthen our Credit Union with proper systems and policies while at the same time provide opportunities to assist our members.

I would like to thank the Board, the Committees, staff and members for their continued support and cooperation during the year.

Sharon Alexander-Gooding Treasurer


TABLE 1

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDBALANCE SHEET ANALYSIS

YEAR ENDED DECEMBER 31, 2019

2019 2018 19 vs 18

TOTAL ASSETS 67,333,748 63,343,377 6.30% 3,990,371

CURRENT ASSETS 5,969,459 2,373,770 151.48% 3,595,690CASH AND BANK 5,098,467 1,953,794 160.95% 3,144,673

INVESTMENTS 36,576,075 35,381,148 3.38% 1,194,927GOVERNMENT SECURITIES 50.30% 18,396,958 18,717,558 52.90% -1.71% -320,600 TERM DEPOSITS 28.47% 10,413,301 9,576,631 27.07% 8.74% 836,670EQUITY SECURITIES 20.71% 7,576,509 7,086,758 20.03% 6.91% 489,751

LOANS OUTSTANDING (Gross) 25,031,489 26,020,623 -3.80% -989,134

IMPAIRMENT PROVISION (IFRS 9) -353,000 -500,000 -29.40% -147,000

LOANS OUTSTANDING (Net) 24,678,489 25,520,623 -3.30% -842,134

NET LOANS TO TOTAL ASSETS 36.65% 40.29% -3.64%GROSS LOANS TO TOTAL ASSETS 37.18% 41.08% -3.90%

CURRENT LIABILITIES 148,910 91,184 63.31% 57,726

MEMBERS' SAVINGS 54,700,616 51,333,775 6.56% 3,366,841SHARE SAVINGS 78.55% 42,969,348 37,051,733 72.18% 15.97% 5,917,614

CAPITAL & R/E TO TOTAL ASSETS 12.99% 18.82% -5.82%

NON-EARNING ASSETS TO TOTAL ASSETS (CA & FA) 4.00% 3.30% 0.70%

PEARLS GUIDE < 6%


TABLE 1 (a)

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDBALANCE SHEET ANALYSIS


2019 2018

CAPITAL:

TOTAL ASSETS 67,333,748 63,343,377 6.30%

MEMBERS' QUALIFYING SHARES 186,300 182,000STATUTORY RESERVE 1,884,833 1,884,213EQUALIZATION RESERVE 4,998,910 4,584,841

7,070,044 6,651,055 6.30%

10.50% 10.50%

MANDATED CAPITAL REQUIREMENT 10.00% (Of Total Assets) 6,733,375 6,334,338

RECOMMENDED CAPITAL (Policy) 10.50% (Of Total Assets) 7,070,044 6,651,055

EXCESS OF RECOMMENDED OVER MANDATED CAPITAL 336,669 316,717

PROJECTED RETAINED EARNINGS AFTER APPROPRIATIONS 645,814 608,421

TOTAL CAPITAL, R/E & OTHER RESERVES (EQUITY) 12,484,222 11,918,418

PERCENTAGE OF TOTAL ASSETS 18.54% 18.82%


TABLE 2

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDINCOME STATEMENT ANALYSIS


2019 2018 2019 % of GOI % of GOIvs 2018 2019 2018

GROSS OPERATING INCOME (GOI) 2,867,665 3,366,182 -14.81%OTHER INCOME - GAINS/(LOSSES) 493,637 5,105,723

INTEREST ON LOANS 2,070,951 2,111,436 -1.92% 72.22% 62.72%

INVESTMENT INCOME 796,713 1,254,746 -36.50% 27.78% 37.28%

INCOME FROM GOB INVESTMENTS 189,100 739,492 -74.43% 6.59% 21.97%

*** NET OPERATING INCOME BEFORE INTEREST EXPENSE 1,264,891 1,672,300 -24.36% 44.11% 49.68%

*** NET OPERATING INCOME AFTER INTEREST EXPENSE 421,502 530,284 -20.51% 14.70% 15.75%

*** GROSS OPERATING INCOME TO AVERAGE ASSETS 4.41% 5.73%

*** NET OPERATING INCOME TO AVERAGE ASSETS 0.65% 0.90%

RATE OF RETURN ON AVERAGE LOANS O/S 8.11% 8.12%

*** DOES NOT INCLUDE "FAIR VALUE" GAIN


TABLE 2 (a)

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDINCOME STATEMENT ANALYSIS


2019 2018

Loan Interest 2,070,951 2,111,436 -40,485 -1.92%

Interest on Members' Savings 843,390 1,142,015 -298,626 -26.15%

Net Interest Income 1,227,562 969,420 258,141 26.63%

Other Operating Income 796,713 1,254,746 -458,033 -36.50%

Gross Operating Income (After Interest Expense) 2,024,275 2,224,166 -199,891 -8.99%

Gross Operating Income (Before Interest Expense) 2,867,665 3,366,182 -498,517 -14.81%

Operating Expense (Excluding Interest Expense) 1,602,773 1,693,882 -91,109 -5.38%

TABLE 3

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDLOAN PORTFOILIO ANALYSIS


2019 2018 2019 Suggested vs 2018 Growth Rate

LOANS TO MEMBERS (Gross) 25,031,489 26,020,623 -3.80% 8% TO 15%

LOANS TO MEMBERS (Net) 24,678,489 25,520,623 -3.30%

NET LOANS TO TOTAL ASSETS 36.65% 40.29% -3.64%GROSS LOANS TO TOTAL ASSETS 37.18% 41.08% -3.90%

PEARLS RATIO (Guide) 70% TO 85% 70% TO 85%

AVERAGE LOAN BALANCE/Rate Of Return (2019) 25,526,056 8.11%

AVERAGE LOAN BALANCE/Rate Of Return (2018) 26,018,114 8.12%


TABLE 3 (a)



20192019 2018 vs 2018

LOANS APPROVED:

STANDARD LOANS 3,120,886 5,070,359 -38.45% -1,949,473

LINES OF CREDIT 399,400 345,900 15.47% 53,500

TOTAL 3,520,286 5,416,259 -35.01% -1,895,973

TABLE 3 (b)



KEY LOAN INTEREST RATES:Base Rate Interest Effective

Rebate Rate

Mortgage Rate 7.50% 8.00% 6.90%

Mortgage Rate (Special - $100K to $299K) 6.90% 8.00% 6.35%

Mortgage Rate (Special - >$300K) 6.60% 8.00% 6.07%

Loans within savings 6.50% 8.00% 5.98%

Lines of Credit 15.00% 8.00% 13.80%


TABLE 3 (c)



LINE OF CREDIT: 2019 2018 2019vs 2018

APPROVED FOR YEAR (COMMITMENTS) 399,400 345,900 15.47%

TOTAL OUTSTANDING END OF YEAR (COMMITMENTS) 3,055,440 2,777,040 10.03%

TOTAL OUTSTANDING END OF YEAR (DRAWN) 2,451,918 2,425,108 1.11%

TOTAL COMMITMENT to GROSS LOANS 12.21% 10.67%

TOTAL DRAWN to GROSS LOANS 9.80% 9.32%

TOTAL DRAWN to COMMITMENT 80.25% 87.33%

POLICY: COMMITMENT AS A % OF GROSS LOANS =< 15.00% 15.00%


TABLE 4

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDRETURNS TO MEMBERS


2019 2018 2019vs 2018

PAID TO MEMBERS:

INTEREST ON SAVINGS 843,390 1,142,015 -26.15%

PATRONAGE REFUND/INTEREST REBATE 165,676 168,915 -1.92%

NET SAVINGS BONUS 190,487 161,585 17.89%

DIVIDEND ON MEMBERSHIP SHARES 27,945 27,300 2.36%

TOTAL PAID TO MEMBERS 1,227,498 1,499,815 -18.16%

GROSS OPERATING INCOME (GOI) 2,867,665 3,366,182 -14.81%

PERCENTAGE OF GROSS OPERATING INCOME 42.80% 44.56% -1.75%


TABLE 4 (a)

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDDISTRIBUTION OF GROSS OPERATING INCOME:


2019 2019 2018 2018% of GOI % of GOI

TOTAL OPERATING EXPENSE 1,602,773 *** 55.89% 1,668,382 *** 49.56%

Members' Returns 1,227,498 42.80% 1,499,815 44.56%

CAPITAL 0 0.00% 0 0.00%

R/E & Other (Adj.) 37,393 1.30% 197,985 5.88%

TOTAL 2,867,665 100.00% 3,366,182 100.00%

GROSS OPERATING INCOME (GOI) 2,867,665 3,366,1820 -0

PEARLS OPERATING EXPENSE TARGET: *** < 50% *** < 50%


TABLE 4 (b)

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDSAVINGS RATES USED TO CALCULATE INTEREST PAID TO MEMBERS


2019 2018SHARE DEMAND SHARE DEMAND

SAVINGS DEPOSITS TUITION 25ER SAVINGS DEPOSITS TUITION 25ER

Q1 1.50% 0.50% 3.50% 5.00% Q1 2.00% 1.00% 3.50% 5.00%

Q2 1.25% 0.50% 3.50% 5.00% Q2 2.00% 1.00% 3.50% 5.00%

Q3 1.25% 0.50% 3.50% 5.00% Q3 2.00% 1.00% 3.50% 5.00%

Q4 2.00% 1.00% 3.50% 5.00% Q4 2.00% 1.00% 3.50% 5.00%

TABLE 4 (b)

UWI (CAVE HILL) COOPERATIVE CREDIT UNION LIMITEDSAVINGS RATES USED TO CALCULATE INTEREST PAID TO MEMBERS


2019 2018SHARE DEMAND SHARE DEMAND

SAVINGS DEPOSITS TUITION 25ER SAVINGS DEPOSITS TUITION 25ER

Q1 1.50% 0.50% 3.50% 5.00% Q1 2.00% 1.00% 3.50% 5.00%

Q2 1.25% 0.50% 3.50% 5.00% Q2 2.00% 1.00% 3.50% 5.00%

Q3 1.25% 0.50% 3.50% 5.00% Q3 2.00% 1.00% 3.50% 5.00%

Q4 1.50% 0.50% 3.50% 5.00% Q4 2.00% 1.00% 3.50% 5.00%


FINANCIAL DATA FOR YEARS ENDED DECEMBER 31, 2012 TO 2019

% Inc/(Dec)2019 2018 2017 2016 2015 2014 2013 2012 2019 vs 2018

Total Assets 67,333,748 63,343,377 54,160,603 51,367,758 47,558,391 45,168,144 42,023,055 37,468,245 6.30

Total Liabilities 54,849,526 51,424,959 47,599,199 45,283,568 42,114,654 39,954,701 37,214,145 32,965,768 6.66

Total Loans (Net of Provision) 24,678,489 25,520,623 25,789,606 22,673,375 21,759,545 22,138,467 20,708,426 18,756,857 -3.30

Total Investments 36,576,075 35,381,148 24,807,502 25,814,827 22,997,727 20,398,440 17,115,057 16,740,848 3.38

Capital & Reserves 12,484,222 11,918,418 6,561,404 6,084,190 5,443,737 5,213,443 4,808,910 4,502,477 4.75

Cash & cash equivalents 5,098,467 1,953,794 2,693,258 2,153,529 2,297,809 2,203,057 3,828,647 1,682,498 160.95

Current Assets 5,969,459 2,373,769 3,480,999 2,887,125 2,708,335 2,560,048 4,111,827 1,866,975 151.48

Current Liabilities 148,910 91,184 116,362 89,490 136,423 146,736 171,911 129,481 63.31

Total Income*** 3,361,301 8,471,905 3,465,148 3,278,534 3,172,912 3,025,633 2,756,166 2,496,258 -60.32

Net Income/Earnings *** 915,138 5,661,508 763,918 714,206 605,294 758,058 663,877 654,509 -83.84

Other Income*** 1,290,350 6,360,469 1,452,255 1,436,964 1,186,307 1,133,975 1,007,037 989,508 -79.71

Loan Interest Earned 2,070,951 2,111,435 2,012,893 1,841,570 1,871,240 1,791,481 1,643,975 1,506,750 -1.92

Total Borrowings 0 0 0 0 0 0 0 0 0.00

Members Qualifying Share Capital 186,300 182,000 174,300 171,000 162,400 158,900 153,500 148,100 2.36

Members Deposits & Non-Qualifying Shares 54,700,616 51,333,775 47,482,837 45,194,078 41,978,231 39,807,965 37,042,234 32,836,287 6.56

Retained Earnings (R/E) 1,029,923 1,057,002 824,541 679,754 420,106 470,788 396,490 568,294 -2.56

Total Equity (Excl. R/E) 11,454,299 10,861,416 5,736,863 5,404,436 5,443,737 4,583,755 4,258,920 3,786,083 5.46

Loans Disbursed 4,377,045 5,833,656 8,539,664 5,800,462 4,755,877 6,271,614 6,674,742 5,572,107 -24.97

Interest Expense (Members) 843,390 1,142,015 1,242,489 1,223,421 1,200,719 1,215,156 1,143,599 976,851 -26.15

*** 2019 data include un-realised gain of $493,637 (2018 - $5,105,723) resulting from the 'fair valuing' of 'un-quoted securities' as required by IFRS 9.


Dec-19 Benchmark Dec-18

CAPITAL /TOTAL ASSETS 18.54% > 8% 18.82%A measure of the Credit Union's ability to absorb losses.

** NET OPERATING INCOME/AVERAGE ASSETS 0.65% > 1% 0.90%** OPERATING EXPENSES/GROSS OPERATING INCOME 55.89% < 50% 50.32%

A measure of the Credit Union's ability to generate capitaland pay members a reasonable return on savings.

DELINQUENT LOANS/TOTAL LOANS 1.30% < 5% 0.85%Indicates the quality of the loan portfolio.

SAVINGS GROWTH RATE 6.56% 10% TO 20% 8.11%LOAN GROWTH RATE (Gross) -3.80% 8% TO 15% 0.02%LOAN GROWTH RATE (Granted in year) -35.01% -17.86%Indicates the success of the Credit Union providingservices to members.

GROSS LOANS/TOTAL ASSETS 37.18% 70% TO 85% 41.08%Indicates the success of the Credit Union providingservices to members.

NON-EARNING ASSETS/TOTAL ASSETS 4.00% < 6% 3.30%A high ratio would adversely affect the Credit Union'sprofitability.

** OPERATING INCOME, WHICH EXCLUDES EXRA-ORDINARY GAINS, IS USED IN THESE CALCULATIONS.

Structure

PEARLSProtection

Earnings

Asset Quality

Rate of Growth

Liquidity

UWI (CAVE HILL) CO-OPERATIVE CREDIT UNION LIMITEDPEARLS ANALYSIS FOR YEAR ENED DECEMBER 31, 2019

PEARLS is an analysis of a Credit Union’s performance.PEARLS is the acronym for: Protection, Earnings, Asset Quality, Rate of Growth, Liquid-ity and Structure.

The Credit Union’s PEARLS Analysis at December 2019 with 2018 comparison is shown below.


BUDGET2020 ACTUAL

2019REVENUE Interest on Loans 2,011,300 2,070,951 Interest - Bank & Call Deposits 900 854 Interest - Government Securities 186,700 189,100 Interest - Term Deposits & Fixed Rate Bonds 338,380 413,403 Dividends Received 192,000 185,369 Bad Debts recovered 3,000 1,050 Other Income 7,000 6,937 2,739,280 2,867,665 EXPENSES Advertising & Promotion 13,000 9,381 AGM Expenses 52,000 54,910 Bank Charges 23,000 21,823 Cleaning & Office Expenses 17,000 16,201 Conventions & Seminars 83,000 79,821 Credit Advice Services 12,000 - Depreciation 35,500 39,139 Development Fund 5,000 4,889 Donations 24,000 17,525 Doubtful Debt Expense - 189 Impairment Provision 30,000 30,000 Education Fund/Scholarship Expense 48,000 38,120 Equipment Rental, Repairs & Maintenance 12,000 25,475 FSC Fees 26,300 17,489 General Office Supplies & Expenses 11,000 10,812 Insurance Expenses 13,000 11,053 Interest on Deposits & Fixed Deposits 42,000 38,904 Interest on Share Savings 577,200 564,602 Interest on Twenty-Fiver Savings - 2020 78,000 238,420 Interest on Tuition Savings 1,500 1,464 League membership dues 41,000 38,952 Life Insurance 7,056 6,299 MBP Insurance assessment 154,800 153,230 Medical expenses 30,000 28,350 Meeting expenses 15,000 14,857 NIS expense 60,000 55,949 Pension & gratuities 56,950 54,162 Performance based bonus 18,000 17,243 Postage expenses 5,000 5,430 Professional fees 60,000 63,755 Reimbursable Expenses 67,100 67,070 Salaries & wages 600,000 551,598 Staff Separation costs - - 3,526 Security expenses 6,500 6,233 Software Maintenance 18,000 15,279 Stationery & supplies 33,000 30,087 Telephone 4,900 4,878 Training 5,000 - Travelling expenses 21,000 19,960 Uniforms/Employee Benefits 7,800 140 2,314,606 2,350,163 424,674 517,501

UWI (Cave Hill) CO-OPERATIVE CREDIT UNION LIMITEDIncome and Expenditure Budget for the Fiscal Year 2020


STANDING ORDERS

1. (a) A member to stand when addressing the chair. (b) Speeches to be clear and relevant to the subject before the meeting.

2. A member shall only address the meeting when called upon by the Chairman to do so, after which he shall immediately take his seat.

3. No member shall address the meeting except through the Chairman.

4. A member may not speak twice on the same subject except: -

a. The Mover of a Motion – who has the right to reply.b. He rises to object or to explain (with the permission of the Chair).

5. The Mover of a Procedural Motion – (Adjournment laid on the table, Motion to Postpone) to have no right to reply.

6. No speeches to be made after the “Question” has been put and carried or negatived.

A member rising on a “Point of Order” to state the point clearly and concisely.(A “Point of Order” must have relevance to the “Standing Orders”).

8. (a) A member should not “call” another member “to order” – but may draw the attention to 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 the vote if a member desires to speak on it or move an amendment to it – except, that a “Procedural Motion”, “The Previous Question”, “Proceeds to the Next Business” or the “Closure”: “That the Question be Now Put”, may be moved at any time.

10. Only one amendment should be before the meeting at one and the same time.

11. When a motion is withdrawn, any amendment to it fails.

12. The Chairman to have the right a “Casting Vote”.

13. If there is equality of voting on an amendment, and if the Chairman does not exercise his Casting Vote, the amendment is lost.

14. Provision to be made for protection by the Chairman from vilification (personal abuse).

15. No member shall impute improper motives against another member.


!"#$%#&"&'()*%+,-".%#/*"&-*012%(%$%3'*1#4*53-.%23'* 61/3*97*

You may have seen this symbol before, on our posters perhaps, or in our newsletters, or in a newspaper, or even on Credit Union Buildings island wide, but you may not know what it means.

We think it's important that you know and we'd like to give you a formal introduction. The “hands, family and globe” symbol, as it is called, stands for Credit Unions everywhere -

whether it's a Credit Union where you work or live, no matter if you work or live in Timbuktu or Barbados

Credit Unions are world-wide financial organizations. That's why we've included a globe as part of the overall symbol. As a matter of fact,

there are more than 38,000 Credit Unions all over the world

The four silhouettes represent the family unit - the family of mankind working for the mutual benefit of all. Care was taken in the actual design

to avoid differences between national dress or custom and other details because Credit Unions serve all people all over the world.

A pair of hands? The hands represent the self-help nature of all Credit Unions. When you become a Credit Union member you become

part of a group of people who save together and make low-cost loans plus several other services to each other from the

accumulated funds. Credit Unions engender democracy in the truest sense of the word - as a member you are part owner of the business and exercise control of its policies. It is your organization.

Altogether now.................. the “hands, family and globe” symbol was selected as a trademark that stands for

Credit Unions in any language, in any country. The theme is universal and conveys the image of all Credit Unions graphically, accurately and instantly.

So, when you feel the urge to save money or borrow money, think of the Credit Union - where you get low interest loans and all the surplus is returned to you.

Your Credit Union. It's where you belong!


I AM YOUR CREDIT UNION

I was born of human desperation, reared in the household of need and dwell amidst the little people of our time.

I have experienced war, famine, misery, depression and greed; daily I endure indifference and human selfishness.

I am clear of vision, firm of purpose and strong of heart and hand.

Despite those who would misuse or neglect me, I press ever onward to serve and to save those who need me.

I am democratic in organisation and operation and co-operative in action; obedient to the majority voice of you, my members and owners, in all I do.

I am, therefore, exactly what you make of me – poor, weak and inefficient if you are disinterested; but strong, virile and helpful if you properly use me.

I am anxious to help with your family budgets, your personal financial problems and your credit needs; I can help you to save and provide for your future – all on a neighbourly and confidential basis.

I am directed to serve all men (persons) without distinction of race, colour or creed; I neither favour the rich or refined, nor frown on the poor or bereaved.

I am pledged to teach thrift, encourage thrift and render thrift in financial service to you, my people and owners. Millions approve of my purpose; millions have proved that I can work.

I encourage you to build and use your own financial resources so as to better help yourself and your neighbours over the rugged places on the highway of life.

I rejoice to see you saved from the hand-to-mouth basis of daily existence, from those ever present who would keep you debtor de facto, and from the vicious spendthrift habits of your own making.

I am trustworthy. I have a remarkable record; financially, I have helped birth your babies, rear your children, educate your young men and women, build and furnish your homes, transport your families, hospitalize your ill and bury your dead. I am at hand to assist your family when you pass on. I am an ever present helper in the hour of your greatest financial need.

I am part of the great international credit union movement serving mankind. I am part of all who need me. To serve is my task

I AM YOUR CREDIT UNION


NOTES

NOW YOU CAN PAY YOURCO-OPERATORS GENERAL INSURANCE BILLS

THROUGH SUREPAY ONLINE AND AT SUREPAY OUTLETS (EXCEPT AT ALL COURTS LOCATIONS)

U.W.I (Cave Hill) Co-operative Credit Union Limited Caricom Research Building, The University of the West Indies, Cave Hill, St. Michael.Telephone: (246) 417-4524/39 Fax: (246) 424-0662Email: [email protected]

https://www.cavehill.uwi.edu/creditunion/home.aspx

mailto:%20creditunion%40cavehill.uwi.edu%20?subject=

lloyd erskine sandiford centre two mile hill, st. michael

Documents