2012 annual report - sydney credit union
DESCRIPTION
A review/overview of Sydney Credit Union's 2012 year.TRANSCRIPT
2012
2012
2012
2012 ANNUAL REPORT
A Year in Review
President’s Report .......................................... 2
Board of Directors .......................................... 5
Chief Executive Officer’s Report .................... 6
Management.................................................. 9
Patronage Rebate ......................................... 10
Staff ............................................................. 12
Part of Our Community ............................... 14
Cape Breton Cares Radiothon ................. 14
Fat Cat School Program ......................... 14
Sydney Credit Union Kidspree ............... 15
Walk the Walk: Stepping In
The Right Direction for Autism .............. 16
Christmas Parade ................................... 16
Sydney Credit Union’s Breakfast
For Learning Golf Tournament .............. 17
Island Skatepark Clean Up ...................... 18
CBU Frosh Week ..................................... 18
Share, Support and Recovery ................. 19
IYC Flag Raising Ceremony ................... 20
High School Outreach ........................... 21
Atlantic Business Ethics Award ................... 22
Sydney Credit Union Charitable
Foundation .................................................. 24
Applied Wealth Strategies ............................ 25
Independent Auditors’ Report ...................... 26
Statement of Financial Position .............. 27
Statement of Comprehensive Income ..... 28
Statement of Changes in
Members’ Equity .................................... 29
Statement of Cash Flows ........................ 30
Schedule of Expenses .............................. 31
CONTENTS
2012
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MISSION STATEMENTWe are a financial cooperative committed
to providing programs and services which
enhance the economic and social well
being of our members and our community.
VISION STATEMENT To be a leading, community focused,
cooperative financial institution.
CORE VALUES• Trust
• Service Excellence
• Community
• Collaborative Relationships
• CSR and Sustainability
• Cooperative Principles
CSR VALUE STATEMENTSydney Credit Union’s commitment to
Cooperative Social Responsibility defines
its recognition of stakeholders, while in
the pursuit of sustainable solutions, that
involve and balance the interests of our
organization, our members, our staff, our
community, our cooperative sector and our
environment.
Printed on 100% post-consumer product.
1
AGENDA
• Registration
• Call to order – establish quorum
• Period of silence in honour of deceased
members
• Welcome visiting dignitaries
• Approval of agenda
• Approval of annual meeting minutes
of April 25, 2012
• Business arising from the minutes
• Report of the Board of Directors
• Report of the Nominating Committee
• Report of the Auditors
• Report of the Chief Executive Officer
• New business:
• Appointment of Auditors for 2013
• Special Guest – Mr. Bernie O’Neil,
former CEO of Atlantic Central
• Drawing for door prizes
• Adjournment
• Refreshments
78th ANNUAL MEETING April 24, 2013
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TPRESIDENT’S REPORTOn behalf of the Board of Directors of Sydney
Credit Union, I am pleased to report on the
activities of your credit union for 2012. As
Chair of the Board, I am happy to report that
we enjoyed another very good year in terms of
overall growth in business. We strengthened
our balance sheet and our relationships with
members, the community, and the cooperative
family, in spite of 2012 being another year of
numerous local, regional and global economic
challenges.
Your Board continues to be very active by
contributing to the strategic direction of Sydney
Credit Union, while ensuring a conservative
level of risk is maintained. Your Board
supervises management’s execution of the
strategy and ensures metrics are in place to
effectively measure performance of the credit
union. With that in mind, the Board has spent
the last three years on an aggressive strategic
plan that focused on five main themes:
1) Strengthening and advancing our
approaches in the areas of member relations;
2) Advancing strategies to help us become a
leading sustainable organization;
3) Strengthening our human resource training
and development systems;
4) Attracting and retaining youth and
strengthening those youth relationships; and
5) Solidifying the effective use of IT services.
In October 2012, your Board met for the
purposes of updating the three-year strategic
plan. At that meeting it was decided to extend
the strategic plan for one additional year. Many
great things were accomplished in the three
years and it was decided to continue in the same
direction in order to enjoy the full benefit of
these strategies.
Your Board is responsible for practicing strong
corporate governance while ensuring that the
Board and senior management comply with
legislative and fiduciary obligations and exercise
the leadership required by our organization. We
strongly believe the strength of our governance
practices is a key factor in the success of Sydney
Credit Union. These strong governance
processes direct the Board and Management
in fulfilling their obligations to you, the
membership.
The mandate of the recently established Sydney
Credit Union Charitable Foundation is to
support initiatives that enhance the quality of
life through the advancement of community
health, financial literacy and environmental
protection. Through our Foundation, we are
pleased to have made a strong commitment to
the community this past year. In September
2012, the Cape Breton District Health Authority
partnered with New Dawn Enterprises and
our Foundation to create a new community
organization. This organization, temporarily
called Share, Support and Recovery, was created
to provide an integrated and coordinated range
of services and support to address the multiple
needs of individuals with mental health and
social challenges.
2012
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0
0.3
0.6
0.9
1.2
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
3.75
7.50
11.25
15.00
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
100,000
200,000
300,000
400,000
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
The partnership includes a $250,000
commitment from the Sydney Credit Union
Charitable Foundation, along with a $20,000
commitment and $30,000 of in-kind services
from New Dawn Enterprises. Also, as financial
literacy is considered to be a key component
in the management of the daily lives of those
living with mental health disorders and
addictions, we are pleased to offer our expertise
in financial literacy to those individuals
involved in the program.
The purpose of the partnership and new
community organization is to develop
opportunities for independence, education,
housing, employment and social engagement
for this group of vulnerable individuals in
Cape Breton. It makes perfect sense that these
three organizations, who all share similar
visions for our community, and similar views
of how to effect change, should come together
in partnership, to create something new and
unique for the betterment of our community.
Sydney Credit Union’s Board of Directors have
been very active over the past year, meeting
eight times to conduct regular business and once
to conduct special business. One membership
meeting was held during the year to conduct the
annual meeting for 2011. In addition to these
meetings, the Directors sat on various other
committees such as Executive, Audit, Policy,
Building, Cooperative Social Responsibility,
Credit, CEO Performance Management and a
new Governance committee. There were thirty-
nine various committee meetings throughout
2012. Other Directors, in their capacity as
voting delegates, have attended four District
meetings, and two Atlantic Central meetings in
Atlantic Canada. Your Chair, who also attends
other meetings, was present at two additional
meetings out of town in 2012.
From an educational perspective, your current
Board of Directors have taken 189 credit union
related courses and attended 72 educational
webinars in addition to the meetings they
have attended. You can see, a great deal of
personal time and effort has been committed
by your Directors and I thank them for that
commitment.
Your management team and staff are focused
on serving the membership and running the
day-to-day operations. Your Board of Directors
acts as stewards for you, the membership, in
setting the strategic plans and ensuring the co-
operative principles are maintained. We expect
the current economic climate to continue for
SURPLUS 2002-2012 ($ Millions) EQUITY 2002-2012 ($ Millions) PATRONAGE REBATE 2002-2012 ($)
We strongly believe the strength of our governance practices is a key factor in the success of Sydney Credit Union.
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at least another year. For Sydney Credit Union,
that may translate into slower growth, lower
returns and more national regulatory restrictions
being put in place, similar to the changes in
the mortgage market last year. With our strong
equity position and our proven track record,
we are confident we have the resources, both
monetary and human, to weather the storm
of economic uncertainty that all financial
institutions find themselves in today.
We are proud of the accomplishments of our
credit union and the commitment of our Board,
management and staff. It is evident from their
teamwork, leadership and confidence, that they
believe in the co-operative values of self-help,
self-responsibility, democracy, equality, equity
and solidarity.
I am very proud to report that during the 2012
year Sydney Credit Union was awarded the
prestigious 2012 Atlantic Business Ethics Award
in the 16-50 employee category. The award is
granted by the Better Business Bureau of the
Atlantic Provinces in recognition of businesses
that go beyond the average in maintaining high
standards of ethical behavior. Businesses are
evaluated in the areas of responsibility, ethical
decision making, ethical initiatives, ethical
leadership and environmental sustainability.
We interpret this as an accreditation to the
excellent work we do with our members, our
stakeholders and the community we serve.
I would like to take this opportunity to
acknowledge three Board members who are
completing their involvement with the Board of
Directors of Sydney Credit Union.
John MacEachern is completing twelve years
of service, three of which were as Chair of the
Board. Over the past twelve years John has
proven to be an inspiration and a true leader
who has freely shared his time, knowledge
and guidance for the benefit of the Board in its
decision-making. He often asked the pertinent
questions that assisted the processes of the
Board’s work.
Jim MacLean has completed nine years on the
Board. He has served on various committees
throughout this time and was Secretary on the
Executive Committee over the past year. Jim
has told us many “true” stories over the years
and through his sense of humor has lightened
the mood of many of the Board gatherings.
Jim’s wealth of knowledge and experience has
been a tremendous asset to the Board.
Lawrence MacDonald is also completing nine
years, three of which were as Chair of the
Board. His organizational skills, writing skills
and attention to detail have been noteworthy.
Lawrence has spent a tremendous amount
of time becoming knowledgeable of Board
procedures, protocols and governance issues,
and has left behind several written guidelines
for future reference. He has also been the
driving force behind District One meetings this
past year. To me especially, Lawrence has been
helpful as a mentor and a source of information
and inspiration.
Finally, I would simply like to state on behalf of
the Board, gentlemen, you will be missed.
In closing, on behalf of the Board of Directors, I
would like to recognize management, staff and
of course, you the members, for your continued
commitment and support throughout these
current economic times.
Respectfully submitted,
Doreen Burke, Chair2012
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2012DIRECTOR BOARD EXECUTIVE AUDIT BUILDING CREDIT CSR GOVERNANCE NOMINATING POLICY
Doreen Burke 8/8 10/10 1/1 3/4 6/7 1/1 1/2
Joe Legge 8/8 10/10 4/4 1/1
Jim MacLean 8/8 6/6 0/1 3/4 1/1 3/3
John MacEachern 8/8 7/7 1/1 1/1 3/3
Lawrence MacDonald 8/8 4/4 3/4 0/1 5/7 1/1 0/1
Donna Arseneau 8/8 4/4 1/1 1/3
Dan MacDonald 8/8 2/4 1/1 2/3 1/3
Blaise MacLean 8/8 1/1 1/1 3/4
Hugh MacKinnon 8/8 4/4 4/4 3/4
Jeanette Thompson 7/8 2/4 5/7 1/1 3/3As of May 22, 2012Lawrence MacDonald placed on Audit Committee, John MacEachern removed from Building CommitteeJim MacLean placed on Executive Committee, Hugh MacKinnon removed from CSR CommitteeBlaise MacLean removed from Audit Committee, Lawrence MacDonald and Dan MacDonald placed on CSR CommitteeLawrence MacDonald, Jim MacLean, John MacEachern and Jeanette Thompson placed on Governance Committee
Board of Directors - Directors’ Attendance Report
BOARD OF DIRECTORS
Top Row: (From left to right)
Doreen Burke, Chair Joe Legge, Vice Chair
Jim MacLean, Secretary John MacEachern
Middle Row: (From left to right)
Lawrence MacDonald
Donna Arseneau Dan MacDonald
Bottom Row: (From left to right)
Blaise MacLean Hugh MacKinnon
Jeanette Thompson
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TCHIEF EXECUTIVE OFFICER’S REPORTThe economy was once again front and
centre in 2012 and, it was inevitable
that the economic uncertainty would
eventually have an impact on Sydney Credit
Union. While the Canadian economy
performed relatively well, the performance
of our economy is still contingent on
the performance of the economies of
other countries. Unemployment levels
continued to creep up, consumer debt levels
remain at an all-time high and our federal
government has placed restrictions on
mortgage borrowing. The current interest
rates continue to remain low, for some
5 years now, supposedly in an effort to
stimulate the economy. As you know, the
bulk of the financial industry’s profitability
is the difference between what they earn
on loan and investment income and what
they pay out in interest to depositors.
With interest rates being so low for such
a long period of time, our ability to
generate consistent returns is increasingly
challenging.
Despite what’s been taking place in our
industry, I am pleased to report that
Sydney Credit Union continued to enjoy
strong asset growth and profitability, while
increasing equity levels. We ended 2012
with assets totaling $144,923,345. This
represents an increase of $9,432,923 or 7.0%
over the prior year. Asset growth was driven
by strong increases in our loan portfolio
which helped offset the $8,725,364 deposit
growth that took place. Our loan portfolio
increased $11,278,896 or 11.2%. All areas
of our lending portfolio showed very good
increases throughout the year. Contributing
to the loan growth was a decision to start
offering dealer financing for automobiles
and recreational vehicles. We started the
dealer finance program in September and we
were pleasantly surprised by the business we
did in such a short time. We are expecting
great results in 2013. Despite all the factors
at play in 2012, Sydney Credit Union
continued to maintain a high quality loan
portfolio.
The deposit portfolio grew by $8,725,364
or 7.3% in 2012. Good growth was
achieved in all areas with the exception of
Term Deposits which decreased by some
$835,059. The largest increases were felt
in Chequing, Savings and Tax Free Savings
Accounts. Members are favouring the
safety offered by Savings and Chequing
accounts rather than investing in Term
Deposits at such low rates.
Sydney Credit Union’s net income totaled
$840,973, a decrease of $15,655 or 1.8%.
The profitability results reflect the extremely
low interest rates, despite the exceptionally
strong loan growth we had in 2012. To put
this in perspective, while our loans grew by
2012
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0
30
60
90
120
150
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
26
52
78
104
130
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
30
60
90
120
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
$11,278,896 or 11.2% the interest earned
on loans for the same period only grew
by $130,150 or 2.3%. With that limited
revenue growth, we focused on managing
operating expenses, introducing new lending
products that would help offset the declining
margins and finding ways of increasing our
other income from partner organizations.
As a result, operating expenses totaled
$5,584,342, a decrease of $178,742 or 3.1%
lower than the prior year. Other income also
increased $287,799 or 18.4% over the prior
year. Other income comes from our system
partners such as CUWEALTH & INSURANCE
(which is transitioning to Applied Wealth
Strategies), Credit Union Insurance Services,
Concentra Financial and League Savings
and Mortgage Company. In summary, we
completed the year with total equity of
$14,453,819 or 10.0% of assets, an increase
of $841,408 or 6.2%.
As at December 31, 2012 our membership
stood at 12,982 compared to 12,979 for the
prior year-end. The youth component of
our membership is 4,602 or 35.5% of our
membership.
Sydney Credit Union remains one of
the strongest and safest credit unions in
Atlantic Canada, thanks to the strength of
our balance sheet, the substantial reserves
and our conservative risk appetite. As a
result we are once again paying a patronage
rebate based on strong financial results for
2012.
Our success is made possible by the fantastic
teamwork between Board, management and
staff. Without the cooperation of everyone
at all levels of the organization, we would
not have been able to grow our balance
sheet, return a patronage rebate to our
members and support our community in
the ways we do. Our success is underpinned
by the strong leadership position we take.
We strive to provide the best possible
experience when delivering our financial
services. This expertise has enabled us to
continue to grow and increase market share
year after year. With a competent, trained
staff, they have the confidence to be able to
address all your financial concerns. We call
these three attributes “TLC” and that stands
for Teamwork, Leadership and Confidence.
To remain successful, we as a credit union
and as part of the greater credit union
system, have to continually deal with
the challenges ahead. Interest rates are
expected to remain low, putting continuing
pressure on margins to produce surpluses
ASSETS 2002-2012 ($ Millions) DEPOSITS 2002-2012 ($ Millions) LOANS 2002-2012 ($ Millions)
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at a level that were enjoyed by many
financial institutions prior to the recession
of 2008. The emergence of aggressive
market penetration programs by financial
institutions, new competition from other
commercial interests such as grocery store
chains and big box store chains and the
emergence of social media as a service
delivery practice are changing the culture of
managing finances. The high debt load of
Canadian households is continuing to rise
causing regulatory changes to be considered
by government and regulators as a means to
correct this disturbing trend.
Credit Unions are viewed by the public
as a financial institution that is guided by
cooperative principles to help its members
with wealth management. Sydney Credit
Union views itself to be a progressive
community-minded credit union serving
the needs of its membership and further
recognizes it must adapt to the emerging
trends and become more aggressive in
seeking like-minded credit unions to
take advantage of new opportunities and
economies of scale. This is why the Board
of Directors of Sydney Credit Union and
management agreed to become involved in
a process which will see five like-minded
credit unions form a group, committed to
moving forward on initiatives to improve
financial, operational and leadership
effectiveness within the credit union
system in Atlantic Canada. This group,
referred to as the “Early Adopters” group,
will be instrumental in developing and
recommending practices and processes to
reduce costs, create efficiencies, become
more competitive and instill confidence
in the rest of the credit union system that
change is possible. The practices and
processes will then be modeled for the rest
of the Atlantic Credit Union system to
avail of. In keeping with the co-operative
principles, Sydney Credit Union feels it is
their responsibility to live the principles
of Cooperation Among Cooperatives and
Concern for Our Community. We feel
that our influence in directing solutions
in the early stages will have a significant
positive impact to Sydney Credit Union, its
membership and the credit union system in
general and will secure the sustainability of
the credit union system for the long term.
This unsettled economic climate will be
with us for quite some time to come. Who
knows what will happen half way around
the world and how it will impact the way
we do business here in Canada. With the
support of the Board, the skills of our staff,
the strength of our balance sheet, and our
participation in the Early Adopters group,
we will have the ability to change and
adjust our approach and strategy as the
circumstances demand it.
We will be working closer with our partners
to build stronger, more meaningful
relationships that will result in increased
product offerings for you, the membership.
We will look to find new revenue sources,
improve productivity and hopefully reduce
operating expenses even further. We will
cooperate and work with others effectively
to achieve work related objectives.
Most importantly, we will make every effort
to continue to build those relationships
with our members and key stakeholders in
the community.
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Most importantly, we will make every effort to continue to build those relationships with our members and key stakeholders in the community.
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I would like to take this opportunity to
thank all staff, board members, committee
members and the management team
for the support that you have all shown
me this past year. I thank the Board for
their commitment and confidence in our
management team when recommending
new directions and strategies. And of
course, the ability to change and serve could
not be accomplished without the continued
loyalty and support of the membership of
Sydney Credit Union. Thank you members,
for your loyalty and commitment to your
credit union.
Co-operatively yours,
R.A. (Bob) Coffin, Chief Executive Officer
MANAGEMENT
Above Photo
(Front row from left to right)
Carol Ripley, Manager of Operations
R.A. (Bob) Coffin, Chief Executive Officer
Leanne Boutilier, Marketing Manager
(Middle row from left to right)
Mary Wilson, Branch Supervisor
Jane Graham, Executive Assistant
Art Risk, Manager, Community Economic Development
Karen MacNeil, Accountant
Frances MacDonald, Commercial Lending Consultant
(Back row from left to right)
Denise Dezagiacomo, Branch Manager, Sydney River
Shane LeBlanc, Branch Manager, Sydney
Todd Day, Manager of Premises and Collections
Chris Parsons, IT Manager
Nancy Burke, Human Resources Associate
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TSydney Credit Union’s Five Star Success™ is a profit sharing
program which is unique to Sydney Credit Union. As a
cooperative financial institution, each year we share our profits with our five key stakeholders;
our credit union, our members, our staff, our community and our cooperative sector. We like
to call our stakeholders “our five stars”! At the end of each fiscal year, we apply a formula to our
bottom line which calculates the distribution of profit to each stakeholder group. Since 1997,
Sydney Credit Union has given over $5 million dollars back to its members alone, which is just
one stakeholder group in our Five Star Success™ program! Sydney Credit Union recognizes the
importance and value of its stakeholders and is guided by the grassroots cooperative philosophy
of ‘people before profits’.
Sydney Credit Union members just received their profit share on April 15th for the 2012 business
year. On your profit sharing statement you will see the products and services that earned you a
rebate. If you’re not using all eligible products/services, talk to us….we can get you set up to earn
more profit share for 2013!
At Sydney Credit Union, our members are our top priority. When it comes to banking and
managing your money, we are Focused On You and your financial well-being, and that means you
can always expect sound advice from our financial experts, with no obligations and no strings.
PATRONAGE REBATE
YOUR PRODUCTS AND SERVICES PROFIT SHARE CALCULATION
Deposit Interest - Bonus Interest
Savings & Chequing 3.40%
Term Deposits 3.40%
RRSPs & RRIFs 3.40%
TFSAs 3.40%
Loan Interest - Interest Rebate
Lines of Credit 3.40%
Loans 4.40%
Mortgages 2.45%
Other - Electronic Service Charges Rebate (per transaction)
Direct Deposit $0.05
ATM & Interac® Direct Payment $0.05
TeleService® & MemberDirect® $0.05
Preauthorized Payment $0.05
GLOBAL PAYMENT™ MasterCard® $0.05
Rebate calculated frominterest you paid for
the year.
Rebate calculated fromeach electronic transaction
you complete.
HOW DO WE CALCULATE YOUR SHARE OF THE PROFITS
Our
Organization Our
Members Our
Staff Our
Community Our
Cooperative
Sector
It pays to do business with Sydney Credit Union.
Bonus calculated frominterest earned on your
accounts for the year.
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Your 2012 Profit Sharing Statement
The more business you have with us, the larger your share of our profits for 2013
Your YourProducts RewardDeposit InterestSavings & Chequing ..................... $1.14Term Deposits ............................... $3.48RRSPs and RRIFs .......................... $15.58TFSAs ............................................ $2.49Loan Interest
Lines of Credit ............................ $23.48Loans .......................................... $47.24Mortgages ................................ $123.32Account ServicesDirect Deposit .............................. $2.38ATM & Interac® Direct Payment ... $3.54TeleService® & MemberDirect® .... $2.84Preauthorized Payment ................. $1.23GLOBAL PAYMENT™
MasterCard® ................................ $1.89Your 2012 Total Share........................ $228.61
Mark Twain123 Main StreetSydney NS B1S 2D3
Dear Mark Twain,
Thanks to you, we did it! Over the last sixteen years, we’ve shared more than $5 million of our profits with members just like you through our Five Star Success Program™. On April 15, 2013, the RRSP/RRIF/TFSA bonus was deposited into your registered account(s) and the balance was deposited into your 12345-12-3 account. Your profit sharing statement shows how your payout reflects the business you did with us throughout 2012. Some quick facts about our 2012 Five Star Success Payout are:
• Total payout - $333,000• Average member payout - $60 • Total members receiving rewards - 5,553Once again this year, you have the option of contributing your 2012 Five Star Success™ payout, or a portion thereof, to the Sydney Credit Union Charitable Foundation, in support of the many community giving projects we provide assistance to. You will receive a tax deductible receipt for your contribution. To make a contribution or for more information, please call 567-6532 or visit www.sydneycreditunion.com
Because we want to be your first and only choice in financial institutions, the more business you conduct with us, the greater your share of our Five Star Success™. Ask us how! Call 562-5593 for our Townsend Street branch or 539-1684 for our Kings Road branch.
April 15, 2013
Doreen Burke R.A. (Bob) Coffin President, Board of Directors Chief Executive Officer
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TSTAFF
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Middle Photo (Front row from left to right)
Bobbi-Ann Lanceleve, MSR
Stephen LeBlanc, Dealer Finance Representative
Cynthia MacLellan, MSR
Ashley Hillier, MSR
Tracy MacKinnon, MSR
Jaclyn Smithers , MSR
(Back row from left to right)
Annette Coakley, Chequing Clerk
Sharon Harnish, MSO
Shelley Murrant, MSR
Denise Mullins, MSR
Lisa Antinello-LeBlanc, Central Teller
Chris Larade, Financial Services Clerk
Carol Lee Carrigan, Teller Supervisor
Bob Gill, General Office Worker
Bottom Photo (From left to right)
Chris MacPherson, FSO
Barb Miller, FSO
Patsy Cantwell-Underhill, FSO
Jackie Young, FSO
Absent from Photos
Adrienne Collins, MSR
April Boutilier, Receptionist
Dana Tynski, Receptionist
Jennifer Griffin, Receptionist
Joline Vassallo, FSO
Krista Hooper, MSR
Laura Rykunyk, MSR
Laura Lee Arsenault, MSR
Top Photo (Front row from left to right)
Crista Currie, MSR
Lori Jessome, MSR
Lindsay MacNeil, ATM Clerk
Sarah MacIntosh, Administrative Assistant
Michelle Mugford, ATM Clerk
(Back row from left to right)
Muriel Jackson, MSR
Andrew Livingstone, MSR
Connie MacNeil, MSO
Kyle Peterson, MSR
Holly Johnston, MSR
Steven Rolls, Social Media Coordinator
Courtney Phillipo, MSR
Laurie Walker, MSR
Legend: Member Service Officer - MSO, Member Service Representative - MSR, Financial Services Officer - FSO
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TPART OF OUR COMMUNITY
CAPE BRETON CARES RADIOTHONSydney Credit Union is proud of its long
history of support for the Cape Breton
Regional Hospital Foundation (CBRHF),
having donated over $250,000 to date! It is
critically important to Sydney Credit Union
that members of our community obtain
professional medical services here at home.
In 2012, Sydney Credit Union continued with
its financial support as well as volunteering of
our time for fundraising initiatives in support
of our hospital.
The 5th Annual Cape Breton Cares Radiothon
was again a huge success, raising over
$571,000 in support of specialized services at
the Cape Breton Regional Hospital. Pledges
for the Radiothon were collected at both
branches of Sydney Credit Union and staff
volunteered their time at the event.
FAT CAT SCHOOL PROGRAM The Sydney Credit Union FAT CAT School
Program was launched in 1997 and now
includes seven elementary schools in our
community. Each year we welcome students
from our participating schools to visit Sydney
Credit Union to open a FAT CAT account.
A staff person from Sydney Credit Union
visits the schools every second week, meets
with the students and collects their deposits.
The program encourages children to develop
regular savings habits by providing a
convenient place for regular deposits, while
introducing the values and principles of
cooperation.
The schools involved in the Sydney Credit
Union FAT CAT School Program are:
• Brookland
• Sydney River
• Marion Bridge
• Harbourview
Montessori
• Cusack
• Mira Road
• Coxheath
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2012SYDNEY CREDIT UNION KIDSPREE
Our 3rd annual Kidspree event took place in
August 2012, as part of the CBRM’s Action
Week Festivities. This is an enormous event,
filled with fun for the entire family. The event
offers free admission and lots of activities,
with hundreds of families enjoying the day-
long celebration. Watch for Kidspree 2013
and come out and join us as we celebrate
family fun in our community!
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WALK THE WALK: STEPPING IN THE RIGHT DIRECTION FOR AUTISMSydney Credit Union was the Ambassador
sponsor of the Walk the Walk for Autism,
held in June 2012. The event included
approximately 1,600 walk participants
province wide. Sydney Credit Union staff
volunteered their time, both walking and
tallying donations, to help make the Cape
Breton event a huge success with $30,000
raised for Autism!
CHRISTMAS PARADE Spreading joy and season’s greetings is the
Sydney Credit Union Eco-Dasher, all decked
out for the holidays!
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2012SYDNEY CREDIT UNION’S BREAKFAST
FOR LEARNING GOLF TOURNAMENT Our 3rd annual golf tournament, in
partnership with the Cape Breton Victoria
Regional School Board, raised an incredible
$30,000 for the breakfast program in 2012!
The importance of feeding young hearts and
minds through our schools’ breakfast program
continues to be the winning force behind our
fun filled tournament.
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ISLAND SKATEPARK CLEAN UPIn 2004 Sydney Credit Union had the
privilege to donate $15,000 to Island
Skatepark (Coxheath) during their fundraising
efforts. In August 2012, some of the Sydney
Credit Union staff headed over to Coxheath
to show our continued support for the project
and help with their seasonal clean-up. It
was great to see so many families and young
people out to help with making their park
clean and safe.
CBU FROSH WEEKThis year during Frosh Week, CBU extended
the offer for local businesses to visit and
introduce themselves to the incoming
students and their families! Sydney Credit
Union jumped at the opportunity to meet
everyone, joined in this exciting time of new
beginnings, and set up an information table
to share some of our products and services
geared specifically at youth.
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SHARE, SUPPORT AND RECOVERY In 2011, Sydney Credit Union had discussions
with the Director of Mental Health Services
for the Cape Breton District Health Authority.
Patients of Mental Health Services often are
subjected to sub-standard housing, food
insecurity, minimal access to education,
virtually no access to employment, social/
geographical isolation, and exclusion and
marginalization. During discussions, the
need for an organization that would provide
all of the services necessary to improve the
quality of life for those in our community
with mental health and social challenges was
clearly identified.
Sydney Credit Union responded to the need
in partnership with the Cape Breton District
Health Authority and New Dawn Enterprises
for the creation of a new community
organization temporarily referred to as Share,
Support and Recovery. The purpose of which
is to create opportunities for independence,
education, housing, employment and social
engagement for this group of vulnerable
individuals in Cape Breton.
The partnership includes a $20,000
commitment and $30,000 of in-kind services
from New Dawn Enterprises and a $250,000
commitment from the Sydney Credit Union
Charitable Foundation. Share, Support
and Recovery will provide a broad range
of interconnected services for individuals
recovering from mental health disorders
and addictions. In addition to our financial
commitment, Sydney Credit Union will
facilitate its Financial Literacy program on an
on-going basis to the clients of Share, Support
and Recovery.
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IYC Flag Raising Ceremony The United Nations General Assembly
declared 2012 as the International Year of Co-
operatives, highlighting the contribution of
cooperatives to socio-economic development,
particularly their impact on poverty
reduction, employment generation and
social integration. On Thursday, July 5th at
12:00 pm, we were delighted to be joined
by Mayor John Morgan, CBRM councillors
and a great representation of co-operative
and credit union staff, members, and
supporters for an International Year of Co-
operatives flag-raising ceremony at the CBRM
Civic Centre in Sydney. “Co-operative
organizations help build and sustain
healthy communities in the Cape
Breton Regional Municipality; promote
jobs, stem the outflow of capital, and
enhance the quality of life for those
in our province, throughout the
country and the world” – excerpt from the
proclamation passed by CBRM council in support
of the IYC.
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For more community photos, follow us on Facebook.
/SydneyCreditUnion
HIGH SCHOOL OUTREACH This year, we continued out outreach to
Sydney’s High Schools with continued
support to Safe Grad, Riverview Red Cup,
and Juniour Achievement’s Pitch It event
where students got to pitch their JA business
ideas in front of a panel of local business
professionals. The schools have been so
appreciative of our support and especially our
efforts to participate where we can in their
events and celebrations.
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On November 7, 2012, Sydney Credit Union was awarded the prestigious 2012 Atlantic Business
Ethics Award in the 16-50 employee category. The award is granted by the Better Business
Bureau of the Atlantic Provinces in recognition of businesses that go beyond the average
in maintaining high standards of ethical behavior. Businesses are evaluated in the areas of
responsibility, ethical decision making, ethical leadership, ethical initiatives and environmental
sustainability.
Sydney Credit Union is honored to have been nominated by one of our members for this
esteemed award and are further honored to have been granted the award. Highlights from our
award submission are provided below.
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Above Photo
(center) R.A. (Bob) Coffin, CEO, Sydney Credit Union and Doreen Burke, President, Board of Directors, Sydney Credit Union, accept the 2012 Atlantic Business Ethics Award from (left) Paul Dewolfe, ScotiaBank District VP,
SWNS District and (right) Don MacKinnon, BBB President and CEO.
ATLANTIC BUSINESS ETHICS AWARD
Responsibility:
• Sydney Credit Union’s award winning
Five Star Success™ program. As a
cooperative financial institution
guided by the grassroots cooperative
philosophy of ‘people before profits’,
we share our profits annually with our
five key stakeholders; our credit union
(reinvested back into the organization
to fund growth and development),
our members (patronage rebate/profit
share program), our staff (profit share
program), our community (philanthropy)
and our cooperative sector (cooperative
development initiatives).
• Sydney Credit Union’s Customer
Relationship Management strategy which
governs our commitment to service
excellence and member satisfaction.
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• Our long standing and ongoing support
of our Cape Breton Regional Hospital
Foundation, having contributed over
$250,000 to date.
• Continued sponsorship of the Cape Breton
Fiddlers Run to promote physical fitness
and healthy living for people of all ages in
our community.
• Continued sponsorship of JA’s Pitch It!
An event which fosters entrepreneurship
and financial literacy skills for high school
students.
• Sydney Credit Union’s Breakfast For
Learning annual golf tournament, having
raised $56,000 for the Cape Breton Victoria
Regional School Board’s breakfast program
over the past two years.
Ethical Decision Making:
• Sydney Credit Union’s Purchasing Policy
which governs our corporate purchases,
with preference given to member suppliers,
local suppliers, recycled materials and so
on.
• Sydney Credit Union’s Financial Literacy
program exemplifies our ethical and social
responsibility to educate and empower
people within our community to make
wise financial decisions for their financial
future.
Ethical Leadership:
• Sydney Credit Union’s Microfinance
program supports small business
entrepreneurs who require access to
credit to finance their innovative business
ventures.
• Sydney Credit Union’s commitment
of $250,000 for the creation of a new
community organization, Share, Support
and Recovery, in partnership with the
Cape Breton District Health Authority and
New Dawn Enterprises.
Ethical Initiatives:
• Sydney Credit Union promotes ethical
behavior at all times and is part of a
national service, Integrity In Action, which
provides a means for staff to anonymously
report employee dishonesty.
• The creation of our Sydney Credit Union
Charitable Foundation whose mission is
“to be a catalyst for positive change by
supporting initiatives that enhance the
quality of life through the advancement
of Community Health, Financial Literacy,
and Environmental Protection”.
• Sydney Credit Union’s purchase of an Argo
for the Cape Breton Search and Rescue
team after a tragedy in our community
raised awareness of the importance and
need for sophisticated equipment in
emergency situations.
• Sponsorship of a Cooperative
Development Research Project, facilitated
through CBU. The project results will be
used by Sydney Credit Union to create
a Cooperative Development Initiative
within the CBRM for the benefit of local
cooperatives.
Environmental Sustainability:
• Sydney Credit Union’s Carbon Footprint
and Office Greening Program. As a result
of our Carbon Footprint Study in 2011,
we have developed an Office Greening
Strategy which includes upgrades to energy
efficiency lighting, green certified cleaning
products, and strategies to reduce water
and paper consumption.
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ANN
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on November 16, 2010 as part of Sydney Credit Union’s 75th anniversary celebrations. After
years of development, the Foundation has been established as a means for members, non-
members and the community at large to be able to leverage contributions to the Foundation
with the contributions of others, in support of programs that aim to better the lives of
those within our community. The Foundation also allows Sydney Credit Union the ability
to accumulate funds for specific community projects year over year, as well as the ability to
provide tax deductible receipts to members who contribute to the Foundation.
In addition to the support the Foundation receives from Sydney Credit Union, the Foundation
has also received numerous contributions from Sydney Credit Union members. We thank
you, our members, for supporting the Sydney Credit Union Charitable Foundation and for
believing that together we can enhance the economic and social well being of our members
and our community! To make a contribution, please visit one of our branches, ask anyone of
our staff or call 567-6532.
• Sydney Credit Union is a strong promoter
of the benefits of physical activity,
particularly when combined with the
beauty of our natural surroundings.
Sydney Credit Union has financially
supported our community’s three local
nature trails; the Baille Ard Trail, Coxheath
Mountain Trail and the East Bay Trail.
• Sydney Credit Union’s Like Your Bike
program has seen the distribution of
custom made bike racks at various
locations throughout our community,
promoting alternative means of
transportation.
• Both branches of Sydney Credit Union
are designated Idle Free Zones with
signage displayed in both parking lots to
encourage drivers to not idle their vehicles
while on Sydney Credit Union property.
• Sydney Credit Union is pleased to support
the New Dawn Cold Climate Greenhouse
Project. New Dawn Enterprises, in
collaboration with the Eskasoni First
Nation community, has designed and
constructed an innovative 1800 square
foot Cold Climate Greenhouse facility in
Sydney River.
MISSION
To be a catalyst for positive
change.
VALUES
• Integrity
• Empowerment
• Community Health
• Collaboration
MANDATETo support initiatives that
enhance the quality of life
through the advancement of
Community Health, Financial
Literacy, and Environmental
Protection.
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Applied Wealth Strategies (formerly
CUWEALTH & INSURANCE) is an
independent insurance agency offering
financial planning, investments including
GIC’s and mutual funds, and insurance
planning to members of Sydney Credit
Union and our community. At Applied
Wealth Strategies, we provide a broad range
of services, products and plans to meet the
diverse needs of our clients and credit union
members.
Although the Applied Wealth Strategies office
operates as a separate entity from Sydney
Credit Union, it operates with the same
values and community focus. You will receive
outstanding personal service and advice
tailored to your own situation. Managed by
Denise Gallant, Applied Wealth Strategies
provides professional wealth management
services, access to financial planning
expertise, asset management services
including mutual funds*, segregated funds,
annuities, and personal insurance products.
To speak with someone about your financial
future, simply contact Sydney Credit Union
to arrange a referral or contact Applied
Wealth Strategies directly.
*Mutual funds provided through FundEX Investments Inc.
APPLIED WEALTH STRATEGIES
Applied Wealth Strategies 336 Kings Road (Medical Arts Building) Suite 204, Sydney, Nova Scotia Phone: 567-2533 Email: [email protected] www.appliedwealth.ca
Above Photo (From left to right)
Kim Neville, Licensed Assistant, Denise Gallant, Certified Financial Planner, and Judy MacPhee, Marketing Assistant
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MGM & Associates Chartered Accountants Commerce Tower 15 Dorchester Street, Suite 500 PO Box 1 Sydney NS B1P 6G9
Telephone (902) 539-3900 Fax (902) 564-6062 Internet www.mgm.ca
INDEPENDENT AUDITORS’ REPORTON THE SUMMARY FINANCIAL STATEMENTS
To The Members ofSydney Credit Union Limited
The accompanying summary financial statements, which comprise the statement of financial position as at December 31, 2012, and the statements of comprehensive income, changes in members’ equity and cash flows and the schedule of expenses for the year then ended, are derived from the audited financial statements of Sydney Credit Union Limited for the year ended December 31, 2012. We expressed an unmodified audit opinion on those financial statements in our report dated March 19, 2013. Those financial statements, and the summary financial statements, do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements.
The summary financial statements do not contain all the disclosures required by International Financial Reporting Standards. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Sydney Credit Union Limited.
Management's Responsibility for the Summary Financial Statements
Management is responsible for the preparation of a summary of the audited financial statements in accordance with International Financial Reporting Standards.
Auditors' Responsibility
Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Auditing Standard (CAS) 810, “Engagements to Report on Summary Financial Statements”.
Opinion
In our opinion, the summary financial statements derived from the audited financial statements of SydneyCredit Union Limited for the year ended December 31, 2012 are a fair summary, in all material respects,of those financial statements, in accordance with International Financial Reporting Standards.
Chartered Accountants
Sydney, Canada
March 27, 20132012
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SYDNEY CREDIT UNION LIMITEDStatement of Financial Position
December 31, 2012, with comparative figures for 2011
2012 2011
ASSETS
Cash and cash equivalents $ 6,869,409 $ 10,646,070Investments and deposits 21,631,777 19,582,956Loans to members 112,443,694 101,164,798Income taxes receivable - 111,380Other assets 762,558 679,307Property, buildings and equipments 3,215,907 3,305,911
$ 144,923,345 $ 135,490,422
LIABILITIES
Liabilities to membersDeposits $ 128,954,470 $ 120,229,106Accrued interest on deposits 257,641 293,895Accrued patronage rebate 335,236 364,880
129,547,347 120,887,881
Liabilities to non-membersAccounts payable and accrued liabilities 640,101 617,180Provision for funding commitment 150,000 250,000Deferred income tax liability 118,600 122,950Income taxes payable 13,478 -
922,179 740,130
130,469,526 121,628,011
MEMBERS' EQUITY
Equity shares 75,820 75,385 Retained earnings 14,377,999 13,537,026 Accumulated other comprehensive income - -
14,453,819 13,612,411
$ 144,923,345 $ 135,490,422
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SYDNEY CREDIT UNION LIMITEDStatement of Comprehensive Income
Year ended December 31, 2012, with comparative figures for 2011
2012 2011
INCOME Interest on loans $ 5,748,644 $ 5,618,494 Investment income 380,333 942,718
6,128,977 6,561,212
INTEREST EXPENSE Interest on members' deposits 1,241,985 1,223,776 Loan interest and referral fees 56,025 327
1,298,010 1,224,103
Financial margin 4,830,967 5,337,109
Other income 1,853,084 1,565,2856,684,051 6,902,394
EXPENSES Personnel 2,608,313 2,501,301 Members' security (schedule) 129,632 120,149 General business (schedule) 1,940,036 2,274,877 Occupancy (schedule) 398,309 399,828 Provision for loan losses 311,124 278,420 Depreciation 196,928 188,509
5,584,342 5,763,084
Income before income taxes 1,099,709 1,139,310
Income taxes Current 263,086 263,032 Deferred (recovery) (4,350) 19,650
258,736 282,682
NET INCOME 840,973 856,628
OTHER COMPREHENSIVE INCOME - -
COMPREHENSIVE INCOME $ 840,973 $ 856,628
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SYDNEY CREDIT UNION LIMITEDStatement of Changes in Members' Equity
Year ended December 31, 2012, with comparative figures for 2011
Accumulatedother
Equity Retained comprehensiveshares earnings income Total
BALANCE, DECEMBER 31, 2010 $ 75,905 $ 12,680,398 $ - $ 12,756,303
Comprehensive income - 856,628 - 856,628Shares issued 5,230 - - 5,230Shares redeemed (5,750) - - (5,750)
BALANCE, DECEMBER 31, 2011 75,385 13,537,026 - 13,612,411
Comprehensive income - 840,973 - 840,973Shares issued 5,880 - - 5,880Shares redeemed (5,445) - - (5,445)
BALANCE, DECEMBER 31, 2012 $ 75,820 $ 14,377,999 $ - $ 14,453,819
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SYDNEY CREDIT UNION LIMITEDStatement of Cash Flows
Year ended December 31, 2012, with comparative figures for 2011
2012 2011
CASH FLOWS FROM OPERATIONSNet income $ 840,973 $ 856,628Items not involving cash
Depreciation 196,928 188,509Deferred income taxes (recovery) (4,350) 19,650Loss on disposal of equipment - 8,463Stock dividend received - (526,000)
Change in non-cash operating working capitalIncrease in loans to members (11,278,896) (4,137,394)Decrease (increase) in income taxes receivable 111,380 (45,439)Decrease (increase) in other assets (83,251) 190,608Increase in deposits 8,725,364 8,514,580Increase (decrease) in accrued interest on deposits (36,254) 50,033Increase in accrued patronage rebate 2,486 19,285Increase (decrease) in accounts payable and
accrued liabilities (9,209) 25,124Increase (decrease) in provision for funding
commitment (100,000) 250,000Increase in income taxes payable 13,478 -
(1,621,351) 5,414,047
CASH FLOWS FROM FINANCING ACTIVITIESIncrease (decrease) in equity shares, net 435 (520)
CASH FLOWS FROM INVESTMENT ACTIVITIESIncrease in investments and deposits (2,048,821) (1,337,811)Purchase of property, buildings and equipment (106,924) (104,358)Proceeds from disposal of leaseholds - 15,687
(2,155,745) (1,426,482)
INCREASE (DECREASE) INCASH AND CASH EQUIVALENTS (3,776,661) 3,987,045
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 10,646,070 6,659,025
CASH AND CASH EQUIVALENTS, END OF YEAR $ 6,869,409 $ 10,646,070
Supplemental cash flow informationCash paid during the year for:
Interest on members' deposits $ 1,326,741 $ 1,143,847Income taxes 138,228 308,471
Cash received during the year forDividends and interest on investments 344,566 397,934Interest on loans to members 5,352,029 5,223,771
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SYDNEY CREDIT UNION LIMITEDSchedule of Expenses
Year ended December 31, 2012, with comparative figures for 2011
2012 2011
MEMBERS' SECURITYBonding insurance $ 31,682 $ 28,662Loan insurance 573 1,075Deposit insurance 97,377 90,412
$ 129,632 $ 120,149
GENERAL BUSINESSAdvertising and promotion $ 189,394 $ 571,101Professional fees 33,914 35,654Data processing 283,756 296,883Educational 82,686 131,791Service fees and charges 751,820 668,554Central assessment and dues 206,844 199,565Miscellaneous 154,428 141,516Office and stationery 70,779 58,113Postage 44,997 48,368Service contracts and maintenance 40,436 36,213Scholarships 10,000 11,200Telephone 65,082 64,361Administrative fees - RRSP 5,900 11,558
$ 1,940,036 $ 2,274,877
OCCUPANCYHeat, lights and water $ 64,956 $ 63,108Insurance 28,924 31,214Municipal taxes 193,975 193,453Janitorial and cleaning supplies 60,322 51,418Repairs and maintenance 50,132 60,635
$ 398,309 $ 399,828
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www.sydneycreditunion.com
Make sure you look us up on your favourite social media site.
/SydneyCreditUnion
@SydCreditUnion
/CreditUnionSydney
Sydney
95 Townsend St
Sydney NS
(902) 562-5593
Sydney River
1280 Kings Rd
Sydney River NS
(902) 539-1684