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ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED

ANNUAL REPORT

October 01, 2018 to

September 30, 2019

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The Prayer Of SainT franciS Of aSSiSi

Lord, make me an instrument of thy peace.

Where there is hatred, let me sow love; Where there is injury, pardon; Where there is doubt, faith;

Where there is despair, hope; Where there is darkness, light, and

Where there is sadness, joy.

O, Divine Master, grant that I may not

So much seek to be consoled as to console; To be understood as to understand;

To be loved as to love; For it is in giving that we receive;

It is in pardoning that we are pardoned; And it is in dying that we are born to eternal life.

Endeavour Co-Op Credit Union LimitedANNUAL REPORT 2019

This favourite prayer of Saint Francis of Assisi is often usedBy Credit Union members at the beginning or at the end of

their meetings. It is even referred in some places as the“Credit Union prayer”

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Prayer of St. Francis of Assisi 2

Vision and Mission Statements 5

Corporate Information 6

ListofDirectorsandOfficers 7

Notice & Agenda 8

Minutes of Annual General Meeting 9

Report of the Board of Directors 23

Report of the Credit Committee 29

Report of the Supervisory Committee 32

Standing Orders 35

Financial Statements 37

Independent Auditor’s Report 38

Balance Sheet 41

Statement of Changes in Equity 42

Statement of Comprehensive Income 43

Statement of Cash Flows 44

Note to Financial Statements 45

Schedule of Other Operating Expenses 56

cOnTenTS


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“To Create and sustain an environment where our members can grow and develop

to their fullest potential by providing quality financial services and education

utilizing sound co-operative principles”

“Together with our members we aspire to climb to higher heights”

MiSSiOn STaTeMenT

ViSiOn STaTeMenT


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cOrPOraTe infOrMaTiOn

REGISTERED OFFICE

Harrison RoadBelmont Road

St. Michael

BANKERS

Republic Bank Barbados LtdBroad StreetBridgetown

AUDITOR

Peter J. Carter & Co.Chartered Accountants

P.O.Box 78WRDProfessional Business Centre29 George Street, Belleville

St. Michael

ATTORNEYS-AT-LAW

Vincent WatsonLegis Chambers

Upper Collymore RockSt. Michael

STAFF

GeneralManager- PaulaBanfieldAccounting Assistant - Henneth Clarke-WilliamsMember Services Representative - Sabrina NewtonOfficeAssistant- VeldaBascombe


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BOARD OF DIRECTORS

Left to right back - Glenroy Hackett Chairman, Jennifer Williams Vice Chairman

Left to right front - Tricia Small Asst Secretary, Janet Grannum Member Missing Liza White-Romain

SUPERVISORY COMMITTEE

Left to right - Delano Ashby Member, Carlos Gilkes Chairman and Sheleane Smith Secretary

CREDIT COMMITTEE

left to right Damien Springer Vice President, Carol Bovell Treasurer, Susan Fitt President and Courteney Knight Secretary

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endeaVOur cO-OPeraTiVe crediT uniOn LiMiTedHarrison Road, Belmont Road, St. Michael

Tel: 427-2908/426-3693 Fax: 228-4585Email: [email protected]

NOTICE

Notice is hereby given that the thirty-fifth (35th) Annual General Meeting of the Endeavour Co-operative Credit Union Limited will be held on Saturday, 7th December 2019 at 4:00 pm at the Lloyd Erskine Sandiford Centre.

AGENDA

01. Ascertaining of Quorum/Call to Order

02. Prayers

03. Welcome

04. Apologies

05 Acknowledgement from other Societies/Organizations

06. Minutes of 34th Annual General Meeting

07. Matters Arising out of the Annual General Meeting

08 Reports:

(1) BoardofDirectors

(2) CreditCommittee

(3) SupervisoryCommittee

(4) Auditors

09. Resolutions

10. Appropriation of Surplus

11. Fixing of Maximum Liability

12. Appointment of Auditors

13. ElectionofOfficers

14. Any Other Business

15. Termination/Adjournment

REFRESHMENTS WILL BE SERVED

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Courteney D. Knight Secretary Board of Directors


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Minutes of the 34th Annual General Meeting of

endeaVOur cO-OPeraTiVe crediT uniOn LiMiTed

For The Period Ending September 30, 2018

1.0 ASCERTAINING OF QUORUM /CALL TO ORDER

1.1 The President and Chairman established that a quorum was met and informed the members present, that having received notice of the meeting in accordance with the By-Laws of the Credit Union, the 34th Annual General Meeting was declared to be duly constituted and properly called to order at 4:30 PM for the transaction of business.

2.0 PRAYERS

2.1 Sis Rosemary Tannis prayed for the evening’s proceedings and then led the membership in the prayer of St. Francis of Assisi.

3.0 WELCOME

3.1 The President extended a sincere welcome to all the members of the Credit Union and thanked them for making a special effort to be present at the 34th Annual General Meeting. In addition, the President also expressed appreciation to the invited guests visiting from other Credit Unions, who took the time out to share in our evening’s proceedings.

4.0 APOLOGIES

4.1 There being no apologies received for any members,theChairmanconfirmedthattheBoard of Directors was not in receipt of any apologies of absence.

5.0 ACKNOWLEDGEMENT FROM OTHER SOCITIES / ORGANIZATIONS

5.1 Best wishes and sentiments were expressed to the Board of Directors, members and staff of the Credit Union on the success of their 34th Annual General Meeting proceedings, on another productive year ended and continual accomplishments in its endeavours by the representatives of various Credit Unions present, as follows:

• Bro. Keith Jones on behalf of BARTEL

Co-operative Credit Union Ltd. and the Barbados Co-operative Credit Union League Ltd.

• Bro. Kelvin Whittaker on behalf of Barbados Light & Power Co. Ltd. Co-operative Credit Union Ltd and Co-operators General Insurance Co. Ltd.

• Sis. Joan Waithe on behalf of United Enterprise Co-operative Credit Union Ltd.

• Bro. Rolric Branch on behalf of BET Co-operative Credit Union Ltd.

• Bro. Troy White on behalf of the Barbados Public Workers Co-operative Credit Union Ltd.

• Bro. Dalton Medford on behalf of Barbados Workers Union Co-operative Credit Union Ltd.

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• Sis Sybil Lovell on behalf of St. Barnabas Co-operative Credit Union Ltd.

6.0 MINUTES OF THE 33RD ANNUAL GENERAL MEETING

6.1 The Chairman of the meeting invited all members present to read and review the minutes of the 33rd Annual General Meeting held on December 9, 2017.

6.2 Bro. Delano Ashby moved that the minutes be taken as read and this was duly seconded by Sis. Gloria Coward. There being no objections, the motion was duly carried.

6.3 The minutes of the 33rd Annual General Meeting held on December 9, 2017, were readandconfirmedbythemembers.

6.4 The minutes were carefully reviewed by the members present and Sis. Susan Fitt then moved a motion that the minutes of the 33rd Annual General Meeting be adopted and accepted as a true record of the proceedings held at the meeting. The motion was seconded by Sis. Sheleane Smith. There being no objections, the motion was duly carried.

6.5 THEREFORE IT WAS RESOLVED that the minutes of the 33rd Annual General Meeting held on December 9, 2017 be accepted and approved, and that the said minutes be signed as a true record of the meeting by the President and Secretary of the that meeting.

7.0 MATTERS ARISING OUT OF THE ANNUAL GENERAL MEETING

7.1 No matters were raised from the minutes of the previous meeting held on December 9, 2017.

8.0 REPORTS

8.1 BOARD OF DIRECTORS

8.2 A motion was moved that the Board of Directors report be taken as read by Sis. Susan Fitt and seconded by Sis. Marcia Storey.

8.3 The motion was duly carried as there were no objections.

8.4 The President of the Credit Union, Bro. Oswald Burnett delivered the presentation from the Board of Directors report to the membership.

8.5 The presentation covered areas such as the attendance at the thirteen (13) meetings,two (2) jointmeetings and nine (9) extra-ordinary Credit Committee meetings convened during the past year. The President confirmed that membership stood at fivehundredandeighty-one(581)membersatSeptember 30, 2018, with a decrease in the juniorsaversbyone(1)memberfromsixty-four (64) to sixty-three (63) as that juniorhas now become an adult saver.

8.6 Discussions on the implementation of the full requirement for the Financial Services Commission regarding the nomination procedure was also highlighted, where nominations will no longer be received from the floor. Another new implementationwas the International Financial Reporting Standards 9 on the loan portfolio, as this restricted the Credit Union in providing a more competitive return to its members due toanadverseeffectonitsprofitmargin.

8.7 The strategic plan for the 2018 to 2020 period adopted in March 2017 was reviewed. This included the creation of Facebook and Instagram pages for the Credit Union, to

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offer a better communication platform for its loan products and impactful activities to its members, and for greater presence in the community to attract additional membership.

8.8 In addition, the Board of Directors sought to implement the reduction in the delinquency of its loan portfolio, to ensure it remains below the acceptable Pearls Benchmark Standard. The President confirmed thatthe delinquency rate of the Credit Union was below that standard this year at approximately 4.7% and he congratulated alltheOfficersandstaffforajobwelldone.

8.9 The Credit Union highlighted its successful implementation of the Sexual Harassment Policy in compliance with the Employment SexualHarassment (Prevention)Act,2017on June 7, 2018.

8.10 The President also addressed the acceptance of the amendments to By-Laws 40,56 and 68 by the FSC in relation to the guidelines and protocols of the Nominations Committee. These amendments allow for Officers onthe Credit and Supervisory Committees to hold twoconsecutive three (3) year termson the respective committees. However, a review of By-Laws numbers 14 and 39 were rejected and must be once again be amended based on comments received from the FSC.

8.11 Bro. Burnett praised the Credit Union for its continuous growth, despite the economic challenges being faced by the country. The President noted that there was a 10.6% increase in the net income earned at the end of the financial year, realizinga total net income of $ 333,571.00 from $301,411.00.

8.12 Member loans increased by approximately

5.8% and total assets moved from $ 8,757,6669.00 to $ 9,261,684.00.

8.13 A4.0%increasewasreflectedinthesavingsof the Credit Union, where savings moved from $ 6,687,402.00 to $ 6,976,210.00.

8.14 The President informed the members that due to a variation to an existing loan product, there was an increase in the loans outstanding and these increased from $ 6,497,353.00 to $7,073,643.00, an 8.9% increase over the previous year.

8.15 A gain on investments earned an increase on the existing investments held by the Credit Union and this provided an increase of $ 16,131.00.

8.16 The President took the opportunity to remind the members of the need to remain committed to any loan payments they undertake, as there are still too many delinquent accounts. The Delinquency Reportconfirmedthattherewerefifty-three(53) accounts actively being pursued bytwo(2)debtcollectoragenciesattheendofthefinancialyearend.Three(3)delinquentaccounts were however settled during the currentfinancialyear.

8.17 During the previous financial year theCredit Union sought to recruit a Member Services Representative to assist in the succession planning of the institution, after the positionofClericalOfficerwasmaderedundant. Ms. Sabrina Newton joined the Credit Union team filling the position asMember Services Representative.

8.18 The President highlighted the various training undertaken by members during the year for the personal development of its staff and members. Training was completed in the following areas:

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• Attendance at the 17th Annual Leadership Conference held in Panama from May 25 to 28, 2018. The Credit Union was represented by Bros. David Bowen, Damien Springer and Sis. Henneth Clarke-Williams, where “Overcoming new challenges, celebrating our Authentic Difference”, was the theme discussed.

• Bros. Oswald Burnett and C. David Knight attended the 61st Annual C.C.C.U Convention held in Trinidad and Tobago under the theme “Credit Unions: The power to change the future”.

• The Barbados Light & Power Credit Union hosted a seminar entitled “Anti-money Laundering” at the Accra Beach Hotel and Spa and the Credit Union was represented by Bro. Oswald Burnett and Sis. Susan Fitt.

• Members, officers and staff tookthe opportunity to participate in the training courses offered by the Barbados Co-operative Credit Union League Ltd. A full list of the courses can be reviewed in the Board of Directors Report.

8.19 Congratulations were extended to Sis. Henneth Clarke-Williams on the successful completion of the “Advance Banking and Finance” course through the Barbados Institute of Management and Productivity. The President also confirmed that allstaff attended a seminar on “Sexual Harassment in the work place as required by the legislation. In addition, Sis. Paula BanfieldattainedherBachelor’sdegree inAccounting from the University of the West Indies.

8.20 The Social / Educational Outreach committee planned and implemented several activities during the year which included:

• Community Service – Soroptimist Village.

• Church Service – Carrington Wesleyan Holiness Church.

• Fun Walk – Folkestone Park.• Give Back Fete – Blackwood Screw

Docks.• Health Fair – Queen’s Park.• 35th Anniversary Dinner and Awards –

Accra Beach Hotel & Spa.• Olga Watts Annual Scholarship – Credit

Union’sOffice.

In addition to the above activities, the Credit Union assisted the following organisations:

• Myasthenia Gravis.• St. Ambrose Primary School – Track &

Field Uniforms.• Lions Club.• Grace Baptist Church.• SUSU Magazine.• Cancer Support Services• Dominica Hurricane Relief.

8.21 The President lauded the efforts of the Marketing Committee which comprised of Bros. PatrickWilliams (Chairman) and C.David Knight and Sis. Roseann Eastmond, Aldeen Scott, Henneth Clarke-Williams and Beverley Mayers. The Committee submitted various proposals which the Credit Union can engage in. These were mainly through the support to various surrounding schools and assisting members with funeral expense loans, purchasing of water tanks as well as the purchasing of a building for the Credit Union.

8.22 The President emphasized the need for the Credit Union environment, to continually pay close attention to the implementation of the fiscal measures and their impactto the future of the Credit Union. The President reiterated that the Credit Union will continue to be guided by its strategic plan with the implementation of the goals set.Heencouragedmembersandofficers

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to play an active role in the movement, and to utilise the opportunities of training and seminars offered, especially within the financial services sector. He stressed theimportance of all members to stay up to date with the new decisions, policies and regulations imposed on the sector, to ensure the continual growth of the Credit Union. The President reminded the members of the Credit Union’s commitment to remain steadfast to its members, provision of financial guidance and to assist eachmember in achieving their goals.

8.23 Condolences were expressed from the Board of Directors, Committee Members and Employees extending deepest sympathy to any member who lost their loved ones during the year in review. The President also asked God to continue to comfort those families during this time of bereavement.

8.24 The President concluded by offering sincerest gratitude to the Board of Directors, Credit Committee, Supervisory Committee, other appointed Committees, staff, the Management of the National Conservation Commission, members and all those who assistedandinfluencedtheCreditUnioninany way during the year, and thanked them for their hard work and commitment.

8.25 Bro. Carlos Gilkes moved a motion to adopt the Board of Directors Report as presented and this was duly seconded by Bro. Damien Springer.

8.26 There being no objections to the Board of Directors report, the motion was duly carried.

8.27 THEREFORE, IT WAS RESOLVED that the Report of the Board of Directors be accepted and approved as presented.

8.28 CREDIT COMMITTEE

8.29 Bro. David Bowen, Chairman of the Credit Committee was invited to present the Credit Committee report to the membership. Bro. Bowen took the opportunity to thank all the members for allowing him to serve in the capacityasChairmanoverthepastthree(3)years.

8.30 Bro. Alfred Burnett moved a motion that the report be taken as read and duly seconded by Bro. Delano Ashby.

8.31 Bro. Bowen opened the presentation by highlighting the frequency of convened regular and extra-ordinary meetings held and the attendance of the committee members at each meeting during the concludedyear.TheCommitteemetonfifty(50)occasionstocompletetheapprovalofloanstomembers,staffandofficers.

8.32 The Credit Committee Chairman made mention of the increase in loans approved over the previous year, in the categories of debt consolidation and domestic loans. However, it was important to note that home improvement, vehicle repairs and mortgages reflected no increase whencompared to the previous year.

8.33 The Chairman noted that for regular loans, sevenhundredandninety-four(794)loansequating to $ 2,360,099.56 were approved outoftheeighthundredandthirteen(813)loans requested. In addition, eighteen (18) loans valued at $ 134,765.22 weredenied while seven (7) loans valued at $ 155,134.00 were cancelled. At the close of the financial year, only one (1) loanremained outstanding in the amount of $ 200,000.00.

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8.34 Bro. Bowen confirmed that one hundredand twenty-one (121) Christmas loansvalued at $ 429,300.00 were requested and the Committee approved one hundred and twenty(120)loanstotalling$420,800.00.Onlyone(1)loanvaluedat$3,600.00wasdenied.

8.35 The Chairman of the Credit Committee offered some valuable advice to the members during his presentation, where he advised members to always inquire with the Officers when a loan is denied,as this information is beneficial to eachmemberfortheirfuturefinancialplanning.He recommended that if a satisfactory response is not received from theOfficer,a meeting with the Credit Committee can be requested, to receive an update on the denial of the loan. He encouraged members to think of owning a “piece of the rock” and review the option of obtaining more land loans as this is a great investment. Finally, he reminded members of the Credit Union, to prepare by way of saving, in the event that the government’s retrenchment program affects their Statutory Corporation.

8.35 A full listing of all loan types and the disbursements for the period were detailed onpagesthirty-four(34)andthirty-five(35)of the 2018 Annual Report.

8.36 A motion was made for the acceptance of the Credit Committee Report by Bro. Delano Ashby and seconded by Sis. Marcia Storey.

8.37 There were no matters arising from the Report of the Credit Committee.

8.38 THEREFORE IT WAS RESOLVED that the Report of the Credit Committee be accepted and approved as presented.

8.39 SUPERVISORY COMMITTEE

8.40 In the absence of the Chairman of the Supervisory Committee, the President invited Bro. Glenroy Hackett, Assistant Secretary of the said committee, to present the Committee’s report to the membership.

8.41 A motion was moved by Sis. Jennifer Williams for the report to be taken as read and seconded by Sis. Susan Fitt.

8.42 Bro. Hackett summarised the areas of the report including the role of the committee, attendance and frequency of meetings, the relationship amongst the Board of Directors and Management with the Committee, execution of the Committee’s responsibilities, Corporate Governance, examination of the Financial Reporting System, risks, control procedures and the quarterlyreportfilingsrequiredbytheCo-operativeSocietiesActCap.378A(“ACT”),internal controls, education and training and communication with members.

8.43 Bro. Hackett encouraged all members of the Credit Union to attend the training programs provided by the Barbados Co-operative Credit Union League Ltd. Members were also assured of the Supervisory Committee’s pledge to facilitate any member experiencing difficulties, asthey can rest assure that their concerns will be dealt with on an individual basis and withthestrictestconfidence.

8.44 The Supervisory Committee acknowledges the dedicated service of the Board of Directors, Management, Credit Committee and staff of the Credit Union and thanked themembers for placing their confidencein the committee over the last year.

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8.45 A motion was made for the acceptance of the Supervisory Committee Report by Bro. Alfred Burnett and seconded by Sis. Rosemary Tannis.

8.46 ANY MATTERS ARISING FROM THE REPORT OF THE SUPERVISORY COMMITTEE.

8.47 Sis. Susan Fitt raised the following questions:

1) Under Internal Controls, it wasmentioned that improvements are needed in some areas. She inquired of the areas which needed to be improved?

2) UnderCommunicationwithmembers,whoinvestigatesthefindingsrelatedtothe difference on Members’ accounts and which Committee will it be reported to?

8.48 Sis. Jennifer Williams advised that concerns of members should be dealt with at the level of the Supervisory Committee. The Committee is requesting that any concerns raised should be in a formal manner and submitted through the office via aSuggestion Box.

8.49 Bro. Patrick Williams also responded by recommending that with all the training available through the Barbados Co-Operative Credit Union League, the Supervisory Committee should be more prepared to engage and entertain questions and concerns from members, work closely with the auditors, have a better working knowledge of the operations and procedures of the Credit Union to ensure they can efficientlyreportonwhattranspiredwithinthe Credit Union.

8.50 Bro. Damien Springer sought to bring clarity on the complaint process and how they should be dealt with based on

the By-Laws of the Credit Union. This states that complaints from members for staff should be reported to the Board of Directors, complaints for the Supervisory Committee should submitted to the Board of Directors. It is encouraged that the Supervisory Committee should engage in dialogue with the Credit Committee or the Board of Directors to then have a thorough investigation into the matter to have a balanced inquiry.

8.51 There were no more matters arising from the Report of the Supervisory Committee.

8.52 THEREFORE IT WAS RESOLVED that the Report of the Supervisory Committee be accepted and approved as presented.

8.53 AUDITORS AND TREASURER’S REPORT FOR THE FINANCIAL YEAR ENDED SEPTEMBER 30, 2018

8.54 The President invited the representatives of Peter J. Carter & Co. Chartered Accountants to make their submission on the Auditor’s Report for the year ended September 30th, 2018.

8.55 Ms. Alisia Holder, Accountant with the Auditor, presented the Independent Auditor’s Report on their opinion and findings, after review of the accounts oftheCreditUnion andhighlighted thefirst(1st)two(2)paragraphsofthereportfoundonpageforty-four(44)ofthe2018AnnualReport.

8.56 Bro. Carter then also addressed the Credit Union by informing the membership of the IFRS that requires rotation of audits at different levels within the Partnership.

8.57 Bro. Carter referenced page fifty-seven(57), Note 10 (c), related to SubsequentEvent, which speaks to the responsibilities

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of management and those charged with governance. Management is required to make judgements and this note refers to the debt restructuring exercise undertaken by the Government of Barbados, subsequent to the date of the balance sheet. Bro. Carter proceeded to explain the implementation of the Barbados Economic Recovery and Transformation(BERT)programbutadvisedthat the Government Debentures listed aboveNote 10 (c), was now outdated asthe interest rates have been reduced. He explained how the revised interest rates will apply with the new BERT program, with the Debentures earning interest over the next three (3) years at 1%, in the fourth (4th)year,2.5%andthenforthenexteleven(11)years interest at 3.75%.

8.58 Bro. Carter reminded members that the invested funds are still there, just reinvested for a while longer, with the interest rates significantly reduced, and the funds notavailable in the short term.

8.59 Bro. Carter drew members attention to page fifty-five (56), Note 7 in relation tothe IFRS 9 which addresses among other things the provision for bad debts. A bad debt provision is now a requirement for those members unable to repay their loans, even if the member had a good repayment history. Going forward, this standard must be instituted on the balance sheet for loan provisions, as all loans must be accounted for, including Line of Credits. Thisnewstandardmayimpactthefinancialstatements negatively, as a Bad Debt expense must be created for all loans and will subsequently reduce the net income.

8.60 Therewere no questions on the financialstatements directed to Bro. Carter.

8.61 Following the Auditor’s report, the President invited the Treasurer, Sis. Carol Bovell, to

deliver the Financial Statements for the year ended September 30, 2018 on behalf of the Board of Directors found on pages forty-seven(47)tofifty(50)intheAnnualReport.

8.62 A motion was moved by Sis. Susan Fitt that the report be taken as read and seconded by Sis. Gloria Coward.

8.63 The Treasurer proceeded to deliver the report and highlighted areas of great improvements for the Credit Union on the balance sheet. It was important to note, that giventhedifficulteconomicsituationfacedin Barbados, the Credit Union’s position remained strong, with a steady growth of assetsovertheyear.Ofgreatsignificance,was the Credit Union’s ability to realise the highest net income in the past decade.

8.64 The Treasurer confirmed an increase of5.8% in assets and an 8.9% increase in savings. The savings increase was as a result of new product offerings to members. Investments rose by BBD$ 16,131.00 due to the gain realized on the investments.

8.65 On the Statement of Income, the Treasurer highlighted the 2.64% increase in the net interest income earned as a result of loan interest. On the other hand, the Treasurer also noted that expenses increased by BBD$ 95,641.00 or a 19% increase during the year. This increase was attributed to an increase in staff cost with the recruitment of two (2) additional employees duringthe year. The Credit Union’s net income increased by BBD$ 32,170.00 or 10.06%.

8.66 With the completion of the presentations of the audited financial statements andTreasurer’s report, a motion was made for the acceptance of the Audit Report and Audited Financial Statements for the period ended September 30, 2018 by Bro. Delano Ashby and seconded by Sis. Susan Fitt.

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8.67 There were no matters arising from the Audit and Treasurer’s Reports.

8.68 IT WAS THEREFORE RESOLVED that the Audited Financial Statements as at and for the year ended September 30, 2018 be accepted and presented to the Board of Directors; and

8.69 IT WAS FUTHER RESOLVED that the signing of the Balance Sheet by the President and Treasurerbeherebyacknowledged,ratifiedandconfirmed.

9.0 RESOLUTIONS

9.1 There were no resolutions proposed by the membership for approval during the meeting.

10.0 APPROPRIATION OF SURPLUS

10.1 The Board of Directors proposed to the membership their recommendation of a Patronage Refund to be paid in the amount of eight percent (8%) on interest totallingBBD$75,273.57andonepercent(1%)onsavings totalling BBD$ 68,988.00.

10.2 Sis Roseann Eastmond proposed a Patronage Refundof thirtypercent (30%)on interestandonepercent(1%)onsavings.

10.3 The President responded to Sis. Eastmond’s recommendationandconfirmedthatbasedon a quick calculation, a Patronage Refund of 30% on interest and 1% on savings to members will totally deplete the surplus of the net income, given the Credit Union’s operational expenses.

10.4 Bro. Damien Springer added, that the percentage being offered for the Patronage Refund was carefully reviewed by the Board of Directors and if the Board was in a position to offer a higher percentage,

the Board would have extended this to its members.

10.5 Bro. Patrick Williams requested a summary of how an increase Patronage Refund would exceed the net income. The President confirmedthattheBoardandManagementsat and reviewed various proposals and determined that the 8% on interest and 1% onsavingswouldbebeneficial.TheBoardconfirmsthata30%PatronageRefundisanunrealistic proposal.

10.6 Sis. Susan Fitt also made a valuable contribution to the discussion, where she concurred that a Patronage Refund of 30% would exceed the surplus. She explained that the Credit Union has to make provisions for the following expenses:

• Barbados Co-operative Credit Union League Education Fund – 3% on Net Income.

• Barbados Co-operative Credit Union League dues.

• Regulator License Fee.

Sis Fitt concluded that not paying such a high patronage refund would be correct as we need to build the Credit Union’s Balance Sheet.

10.7 Bro. Patrick Williams made a counter offer of a Patronage Refund of 20% and 1% interest.

10.8 Sis. Susan Fitt also reminded the members of the provisioning requirements for Bad Debts for any unsecured loans under IFRS 9 as referenced by the Auditors, which will also aid in the reduction of the Net Surplus.

10.9 Sis. Susan Fitt countered the motion and proposed that the Board pays a 15% Patronage Refund.

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PATRONAGE & FOR AGAINST RESULT SAVINGS

13% & 2% 9 28 Proposal Rejected

15% 34 31 Proposal Accepted

10.10 The members engaged in robust discussions after review of the Board’s recommendation aswellasrecommendationsfromthefloorand based their opinions on the improved performance of the Credit Union over the year, and its ability to offer a higher Patronage Refund. The President explained to the members the increased operational costs, commitments and expenses of the Credit Union and to offer a higher Patronage Refund can have the potential to erode the savings of the institution. The membership ensued in intense debate over the recommendation and shared many views.

10.11 The members proposed various recommendations to the Board of Directors for consideration for the Refund Patronage as follows:

• Sis Roseann Eastmond proposed a Patronage Refund of thirty percent (30%)towardsinterestandonepercent(1%) towards savings. This proposalwas not seconded.

• Bro. Patrick Williams proposed a Patronage Refund of twenty percent (20%) and one percent (1%) towardssavings. This was seconded by Sis. Gail Alleyne.

• Sis. Susan Fitt counter proposed a Patronage Refund of fifteen percent(15%) and thiswas secondedbyBro.Verden Seale.

• Bro. Allan Bristol countered with a proposed Patronage Refund of thirteen percent (13%) and two percent(2%) savings. Sis. Jennifer Williamsseconded this proposal.

10.12 Voting ensued on the three proposals and the results were as follows:

10.13 THEREFORE IT WAS RESOLVED that the Patronage Refund to be paid members will beatarateoffifteenpercent(15%).

11.0 FIXING OF MAXIMUM LIABILITY

11.1 The Board of Directors recommended that the maximum liability remained at BBD$ 1.5M and this was seconded by Sis. Joan Weekes.

11.2 Voting ensued:

FOR AGAINST ABSTAIN38 0 47

11.3 IT WAS THEREFORE RESOLVED that the

maximum liability of the Credit Union for the financial year ending September 30,2019 remained at BBD$ 1.5M.

12.0 REAPPOINTMENT OF AUDITORS

12.1 The Board of Directors proposed the reappointment of Peter J. Carter & Co. as the Auditors of the Credit Union for the financial year ended September 30, 2019and the motion was seconded by Bro. David Bowen.

12.2 Voting commenced:

FOR AGAINST ABSTAIN33 4 48

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12.3 After conclusion of the voting, the members approved that Peter J. Carter & Co. would be reappointed as the Auditors for the CreditUnionfortheensuingfinancialyear.

12.4 IT WAS THEREFORE RESOLVED that Peter J. Cater & Co. be reappointed as Auditors for the ensuing year.

13.0 ELECTION OF OFFICERS

13.1 The President invited Bros. Damien Springer, Chairman and Carlos Gilkes, member of the Nominating Committee topresent theirfindingsof thecandidatesavailable to serve in the vacancies created.

13.2 The Chairman acknowledged that the Committee met after receiving nominations from the Secretary for the positions to be filled.Theeligibilityandwillingnessoftheindividuals were reviewed and discussed, and the Committee was satisfied that tothe best of their knowledge and belief, the nomineesarequalifiedtoserveandfillthevacancies on the Board of Directors, Credit Committee and Supervisory Committee. The biographies of all nominees were presented by Bro. Carlos Gilkes.

13.3 Thereweretwo(2)vacanciesfortheBoardof Directors and the nominees were as follows:• Susan Fitt• Patrick Williams• David Bowen• Roseann Eastmond

13.4 The President invited Bro. Kelvin Whittaker of the Barbados Light and Power Co. Credit Union, Bro. Keith Jones of the BARTEL Credit Union, Bro. Peter J. Carter of Peter J. Carter & Co. Chartered Accountants and Sis. Holder to supervise the elections. Voting ensued and the results were as follows:

13.5 After the completion of the voting, Sis. Susan Fitt and Bro. David Bowen were elected to the Board of Directors for three (3)years.

13.6 IT WAS THEREFORE RESOLVED that Sis Susan Fitt and Bro. David Bowen have been duly elected to serve on the Board of Directors of the Credit Union for a three (3) year term or until such time as theirsuccessors shall be named.

13.7 One(1)vacancyexistedontheSupervisoryCommitteetobefilledfortheensuingyearand the candidates were as follows:

• Roseann Eastmond• Janet Grannum

13.8 Voting ensued and the results were as follows:

NOMINEES Susan Patrick David Roseann Fitt Williams Bowen EastmondVOTES 39 38 39 16

NOMINEES Roseann Eastmond Janet Grannum

VOTES 37 46

13.9 After the voting process was completed, Sis. Janet Grannum was declared as the member elected to serve on the Supervisory Committee.

13.10 IT WAS THEREFORE RESOLVED that Sis. Janet Grannum was elected to serve on the Supervisory Committee for a three-year term until such time as their successors shall be named.

13.11 There was one vacancy to be filled forthe Credit Committee and one nominee, Sis. Sheleane Smith. There being only onenomination tofill thevacancy for the

20


Credit Committee, Sis. Sheleane Smith was declared duly elected to serve in the capacity as a member on the Credit Committee.

13.12 IT WAS THEREFORE RESOLVED that Sis. Sheleane Smith serves on the Credit Committee for a three-year term until such time as her successor shall be named.

13.13 After the conclusion of the voting process, the President took the opportunity to thank Bros. Kelvin Whittaker, Keith Jones and Peter J. Carter and Sis. Holder for their roles and assistance with the election process.

13.14 The President addressed the newly elected members and reminded them of the importance of membership within the Credit Union movement. He stressed that democracy is integral to the movement and welcomes all members to their respective positions.

13.15 Sis. Susan Fitt addressed the members and expressed her gratitude to the members who voted for her and congratulated the other successful candidates. She emphasised that the work has now begun and that there will be many long hours if the success of the Credit Union should continue.

13.16 Bro. Patrick Williams thanked the members of the Credit Union for their support and expressed appreciation and cooperation going forward.

14.0 ANY OTHER BUSINESS

14.1 Having completed the main agenda items, thePresidentopenedthefloortomembersfor any other business to be discussed.

14.2 Sis. Carol Bovell used this opportunity to present Bro. Oswald Burnett, the outgoing President of the Board of Directors, with

a token of appreciation on behalf of the membership. Bro. Burnett was deeply grateful and expressed his gratitude to the members.

14.3 The President advised the members of the door prize draws to commence. Prizes were won by the following members:

• #12 – Janet Grannum• #55 – Agatha Corbin• #11 – Elaine Fitt• #53 - Charles Sealy• #18 - Pauline Pilgrim• #17 – Kaye Watts• #9 – Elnita Carter• #35 – Fabian Best • #23 – Jason Shepherd• #28 – Beverley Phillips• #21–HazelGriffith• #60 – Gillian Lorde-Layne

14.4 The President congratulated all winners

and also took the opportunity to wish all members and their families a merry Christmas and a prosperous New Year on behalf of the Board, Staff and Management of the Credit Union.

15.0 TERMINATION / ADJOURNMENT

15.1 There be no further business to come before the meeting, the 34th Annual General Meeting was duly terminated at 7:30 p.m.

CHAIRMAN SECRETARY

READ AND CONFIRMED THIS day

of , 2019.

21


Appendix I

MEMBERS IN ATTENDANCE AT THE ANNUAL GENERAL METTINGHeld on December 8, 2018

MEMBERS PRESENT AT THE 34th A.G.M.

Gail Alleyne Valarie Alleyne Jacqueline Andwele Jadisa Andwele Delano Ashby Milton Bancroft Carol Bovell David Bowen Denis Boyce Allan Bristol Kathy-Ann Browne Alfred Burnett Maurice Bynoe Erskine Callender Richard Campbell Norma Carew Elnita Carter Maria Clarke Agatha Corbin Gloria Coward Rose Ann Eastmond Donna Farley -Austin Elaine Fitt Keitha Fitt Susan Fitt Darcy Forde Roger Forde Travis Forde Beverley Giles-Broomes Carlos Gilkes Janet Grannum Keisha Grannum Carvin Gray Sherry-AnnGreenidge AndriaGriffith HazelGriffithChloe Hackett Glenroy Hackett Heather Haynes Susan Herbert Oneal Holder Antoinette Howard Anthony Howell Courteney David Knight Othneil Layne Donna Lewis Gillian Lorde-Layne Michael Marshall Kizzy Marville Beverly Mayers Tyrone Mayers Margaretta Maynard Joysce Noel Beverley NowellCorlene Perch-Brome Beverley Phillips Mark Phillips Pauline Pilgrim Denise Prescod Tynichia Rawlins Verden Seale Charles Sealy Earleen Sealy Jason Shepherd Shevon Small Tricia Small Cornetta Smith Sheleane Smith Damien Springer Ingrid St. Hill Marcia Storey Rosemary Tannis Denneil Trotman Sheldene Victor Veronica Walcott Jerry Ward Kaye Watts Joan Weekes Liza White-Romain Alonzo Wilkinson Jennifer Williams Patrick Williams Hyacinth Young

22


Nyack Alleyne Cyana Austin Nyasha Hinds Jhaykwan Holder Rashante Noel Shamaria NoelFabiane Springer Sheydon Victor Danielle Watson Ohkwan Watts Brianna Webster Aiden Worrell Destiny Newton

JUNIOR SAVERS PRESENT AT THE 34th A.G.M.

Troy White Barbados Public Workers Co-op Credit Union Alisia Holder Auditors Peter J. Carter Auditors Rolric Branch BET Co-op Credit Union Joan Waithe United Co-op Credit UnionKelvin Whittaker Light & Power Employees Co-op Credit UnionEric Trotman Light & Power Employees Co-op Credit UnionDalton Medford BWU Co-op Credit UnionKeith Jones BARTEL Credit UnionSamuel Alleyne St. Barnabas Co-op Credit UnionSybil Lovell St. Barnabas Co-op Credit UnionLana Dates Professional Services- Minute Taking

VISITORS PRESENT AT THE 34th A.G.M.

PaulaBanfieldHenneth Clarke-Williams

Sabrina Newton Velda Bascombe

AliciaSelman(Temporary)

STAFF PRESENT AT THE 34th A.G.M.

23


rePOrT Of The BOard Of direcTOrS ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED

for the PeriodOctober 01, 2018 to September 30, 2019

The Director’s attendance at meetings for the period under review is recorded below:

Attendance from October 01, 2018 – December 09, 2018

Names

Oswald Burnett

Patrick Williams

C. David Knight

Carol Bovell

Damien Springer

Position

President

Vice President

Secretary

Treasurer

Director

Possible Attendance

04

04

04

04

04

Attendance

04

01

04

04

04

Excused

--

03

--

--

--

Names

Susan Fitt

Damien Springer

C. David Knight

Carol Bovell

David Bowen

Position

President

Vice President

Secretary

Treasurer

Director

Possible Attendance

13

13

13

13

05

Attendance

13

12

13

13

02

Excused

--

01

--

--

03

Attendance for the period December 10, 2018 – September 30, 2019

MEETINGS

TheBoardofDirectorsheldseventeen(17)meetings,(2)jointmeetingsandeight(08)extra-ordinarycreditcom-mittee meetings during the period under review.

MEMBERSHIP

Total membership at the end of the reporting period stoodatfivehundredandseventy-eight (578)aminordecline from the previous year. Junior savers increased bysix(06)fromsixty-three(63)tosixty-nine(69).

24

OVERVIEW

The Board of Directors of the Endeavour Co-operative Credit Union are once again please to report the perfor-manceofthecreditunionforthefinancialperiodwhichended September 30, 2019.

For the year under review the performance of the credit union can be viewed as reasonable. Given the chal-lengeswhichwerefacedbymostofthefinancialsector,as the country continued to feel the effects of the Inter-nationalMonetaryFundprogramme(BERT)whichthegovernment introduced during the latter part of 2018.

During the period under review the economy saw in-creased taxation, bus fares and continued rising prices, which impacted our members’ disposable income. This environment meant that the Board was forced to put in extra efforts in order that the credit union’s growth can be sustained. However, the fact that the government’s retrenchment of public sector employees has not yet reached the National Conservation Commission, this can be considered as a saving grace for the credit union.

The Board also found dealing with the implementation of IFRS9 to be challenging. Despite our best efforts we were forced to accept a qualified audit as themodelprovided, proved near impossible to manipulate.

The financial sector and regulations are constantlychanging, change is inevitable, but we must adapt to change, or the credit union will be left behind. To this effect the Board strives to ensure that the Endeavour Co-opCreditUnionevolvestothebenefitofitsmem-bers.

CORPORATE GOVERNANCE/POLICY DEVELOPMENT

During the reporting period the Board of Directors amended and adopted the Loan Policy in April 2019. A Benevolent Fund Policy and The Global Training Policy was also designed, approved and adopted in June 2019 and September 2019 respectively. The Disaster Man-agement Policy was also discussed and strategized, and

thiswillbecompletedandadoptedintheensuingfinan-cial year, along with some other policies that will need revising and upgrading.

The Annual Strategic Plan review session was convened in June 2019, the plan included initiatives to promote marketing, increase the loan portfolio, expand member services, revaluate the organisational structure and re-view management reporting. Some of the main con-cepts achieved included managing social media pages, minimising the waiting period for loans to new mem-bers, training for loan administrators, review of the loan policy annually and the attainment of benchmarks. The Credit union will continue to work assiduously on other key areas and by the next review anticipate achieving majority of our goals.

Once again, the nominations and delinquency commit-tees were established to perform the relevant duties.

LEGAL MATTER

The Board received correspondence dated December 17, 2018 from Attorney-at-Law Mr. Alvan Babb acting on behalf of Mr. Patrick Williams. Mr. Williams’ claim wasthattheBoardofDirectorshadaffixedhissignatureto the Board of Directors Report for the period October 01, 2017 to September 30, 2018 without his knowledge, consentorpermission. Further, thathefirsthad sightof the said report on December 08, 2019. This letter threatened criminal and civil action against the Credit Unionanditsofficersifresponsibilitywasnotaccepted.

The Board engaged the services of Attorney-at-Law Mr. Vincent Watson and a legal opinion was requested. The Board was advised to accept responsibility for its ac-tions, and offer an apology to Mr. Williams. This was done via correspondence dated February 13, 2019.

In spite of that apology, by letter dated April 02, 2019 Mr. Williams’ attorney-at-law, submitted a claim for the sum of $50,000 claiming defamation of character. The sum of $7,500.00 was also claimed as legal fees. After much negotiations The Endeavour Co-operative


25

Excused

201920182017201620152014

700000

600000

500000

400000

300000

200000

100000

0

Net Income

Column 1

Credit Union agreed to pay the sum of $17,500 to Mr. Patrick Williams as compensation for the damages to his character. The total sums paid out for this matter is as follows:-

Mr. Patrick Williams $17,500.00Mr. Alvan Babb - Attorney-at-law $ 2,625.00Mr. Vincent Watson – Attorney-at-law $ 2,625.00Legal Opinion $ 2,500.00Total $25,250.00

Given this substantial expenditure, the Board felt duty bound to fully disclose the facts surrounding this matter, as we aspire to be ever transparent in our responsibility to you, our members.

FINANCIAL PERFORMANCE

The society has continued to show signs of growth in the face of the current economic programme in place. We realized a net income of $520,129 an increase of 55.9% from the previous year, this is a result of a gain on shares with Co-operators General Insurance.

ASSETSTotal Assets moved from $9,261,685 to $9,698,840 this is approximately an increase of 4.7 from last year and is caused by an increase in current assets and the value of investments.

201920182017201620152014

Assets

10000000

9500000

9000000

8500000

8000000

7500000

ASSET GROWTH


26

20192018

ARREARS NO AMOUNT NO AMOUNT

3 to less than 6 months 32 231,807 11 11,785

6 to less than 12 months 20 88,919 23 58,330

12 months and over 43 225,195 49 265,044

Total 95 545,921 83 335,159

DELINQUENT ANALYSIS

TOPIC

Credit Committee Orientation 02

Board of Directors Orientation 01

ACCA – Financial and Management Accounting 2 & 3 01

Managing Financial Performance 2 & 3 01

Leader’s Insight – AML Border Security for Credit Union Managers 01

Developing your Business Enterprise 01

Developingyourskillsasafinancialcounsellor 01

Officers and staff also attended courses offered by the league:

SAVINGS

Savings moved from $6,898,801 to $6,944,084 this re-flectsa0.66percentageincreasefromthepreviousyear.

LOANS

Loans outstanding moved from $7,073,643 to $7,056,134 a decrease of $17,509 or 0.25%. The re-quest and the dollar value of the loans decrease for this periodsinceBERTandotherfiscalpolicieswereimple-mented.

INVESTMENTSDuring the reporting period the investments increased by $264,067 which was due to the gain on shares in-vested in CGIL.

DELINQUENCY REPORT

The Delinquency Committee for the period consisted ofSis.CarolBovell–Chairperson,Sis.PaulaBanfield-Secretary and Bro. Carlos Gilkes-Member. Sis Susan Fitt attendedthesemeetingsasanex-officiomember.

The Committee held meetings during the period to ex-amine the delinquent loan portfolio and make recom-mendations to the Board.

Attheendofthefinancialyeartherewerethirty(30)ac-counts being pursued by MPQ debt collectors. Twenty-five(25)accountsweretransferredformA.JDukeDebtCollectors to Mr. John Kinch, debt collector.

TRAINING

Sis. Susan Fitt, Sis. Tricia Small, Sis. Carol Bovell and Sis.PaulaBanfieldattendedthe62ndCCCU/WOCCUconvention held at the Atlantis Resort, Paradise Island, Bahamas.

We were also invited by the Light & Power Employees Credit Union to a training session regarding Loan pro-cessing, Sis. Sheleane Smith and Sis. Henneth Clarke-Williams represented the Endeavour Credit Union.

Officersandstaffalsoattendedcoursesofferedby theleague:


NO. OF ATTENDEES

27

The Credit Union offered sessions in the following;

Sexual Harassment Act 08

Anti-money Laundering and Compliance 12

Estate Planning 20

Supervisory Orientation 05

TOPICNO. OF

ATTENDEES

SOCIAL OUTREACH

The Board of Directors planned the following events to celebrate the 36th Anniversary:

A Church Service was held at the Calvary Moravian Church, Roebuck Street, St. Michael.

To remain in our ongoing effort to advocate a healthy lifestyle, a fun walk was also held, which started at the creditunion’sofficeandproceededtowardsthegarrisonareaandreturningtheoffice.Fivestudentswhosatthisyear’s common entrance exam were awarded the An-nual Olga Watts Scholarship; we wish them best of luck on their future endeavours.

In continuing with our social responsibility, the credit union supported the following organizations:Alexandra SchoolSt. Philip Primary SchoolSt. Joseph Primary SchoolParalympic AssociationMyasthenia GravisRotary ClubSUSU MagazineBahamian Hurricane Relief

THE FUTURE

There is a worldwide change as it relates to the use of technology. This is all good for the future, but the board will be mindful of its membership base and its capabili-ties. It involves gearing our members to manipulate the computerbeitforfinancialmattersoranAGMmeeting.

Therefore, we will educate our members towards being equipped for this ever-changing world.In light of our maturing membership, this is the time for the youth to be involved in the movement. It is our in-tention to embrace this sector rigorously as this is the wayforward.Beingmindfultheboardwillhavetofindinnovative ways to make the credit union attractive to them.

CONDOLENCES

The Board of Directors, committee members and em-ployees would like to take this occasion to extend con-dolences to those who have lost loved ones during the year. The credit union dealt with the loss of Bro. David Bowen who was elected to the Board of Directors but only served three months. We especially extend condo-lences to his family. May the departed rest in peace and may the Lord comfort the all relatives and friends.

ACKNOWLEDEMENTS

The Board wishes to express its sincerest appreciation to the Supervisory, Credit and Ad-hoc committees, staff, members and the management of the National Conser-vation Commission. All those mentioned have been sig-nificantinsupportingwiththeendeavoursofthecreditunion, we truly appreciate your boundless efforts.

President Vice President

Secretary Treasurer

Director


28

Description September September September Benchmark 2017 2018 2019

PROTECTION

Capital/Total Assets 23.2 24.3 27.1 8% or greater

EARNINGS

Net Income/Avg. Assets 3.5 3.7 5.49 1% or greater

Operating Exp./Gross Income 57.6 59.5 45 50% or less

ASSET QUALITY

Delinquent Loans/Total Loans 5.3 4.7 7.7 5% or less RATE OF GROWTH 1.9 4 0.66 10-20%

Savings Growth Rate

Loan Growth Rate 1.6 8.9 -0.25 8-15% LIQUIDITY

Loans/Total Assets 74 76.4 72.7 70-85%

STRUCTURE

Non-earning Assets/Total Assets 10 7.3 17.5 6% or less

PEARLS Analysiss at September 2019


29

rePOrT Of The crediT cOMMiTTee ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED

for the PeriodOctober 01, 2018 to September 30, 2019

Attendance for the period October 01, 2018 to December 09, 2018

Attendance for the period December 10, 2018 to September 30, 2019

David Bowen Chairman 10 09 01

Carlos Gilkes Secretary 10 10 --

Delano Ashby Member 10 10 --

Carlos Gilkes Chairman 45 45 --

Sheleane Smith Secretary 45 43 02

Delano Ashby Member 45 45 --

NAMES

NAMES

POSITION

POSITION

POSSIBLEATTENDANCE

POSSIBLEATTENDANCE

ATTENDANCE

ATTENDANCE

EXCUSED

EXCUSED

Meetings

Forthereportingperiodtherewerefifty-five(55)regularmeetings and eight (08) extra-ordinary credit commit-teemeetingsheld.Theattendanceoftheofficersofthecredit committee is noted above.

Overview

Incomparisontothepreviousperiodtherewasasignifi-cant decline in the number of loans requested and ap-proved. The value of the loans approved and requested, also represents a decreased amount. Similarly, with the

previous year, Debt Consolidation and Domestic loans were the best performers.

Regular Loans

Five hundred and fifty (550) loans valuedat $2,215,377.17 were requested. Of these five hundred and thirty-seven (537) valued at$2,087,035.14 were approved, eight (08) loansweredeniedandfiveloans(05)werecancelled.


30

Home Improvement 55 147,395.66 54 120,354.41

Debt Consolidation 32 913,505.85 31 870,756.82

Domestic 406 783,417.42 398 763,565.67

Vehicle Used 14 78,057.91 14 78,057.91

Mortgage 01 124,000.00 01 124,000.00

Medical 21 26,660.74 20 26,160.74

Household Items 08 11,849.97 07 10,149.97

Education 09 11,500.00 09 11,500.00

Small Business 01 5,000.00 01 5,000.00

Vehicle New 03 113,989.62 02 77,489.62

TOTAL 550 2,215,377.17 537 2,087,035.14

NotesI No.ofloanspending(00)valued$0.00II No.ofloanscancelled(05)valued$40,700.00III No.ofloansdenied(8)valued$67,383.53

Chairman

Date

Category No NoAmount

RequestedAmount

Requested

Report of the Credit Committee For the Period October 01, 2018 to September 30, 2019


31

Christmas Loans

OneHundred and twenty-one (121) Christmas Loansvalued$244,029.00wererequestedandofthese(120)valued$239,029.00wereapprovedandone(1)valued$5,000.00 was denied.

Back to School Loans

One Hundred and thirty-seven (137) Back to SchoolLoans(BTSL)valued$130,447.00wererequestedandall were approved.

Lines of Credit

For theperiod (823)LinesofCreditvalued$379,993were disbursed.

Conclusion

We acknowledge another challenging year, and look forwardtoaprosperousnewfinancialyear,andasal-ways, the Credit Committee will be here to assist the membership. We thank you for your commitment and dedication and take this opportunity to wish all other committees, staff and the membership, Happy Holidays.

Chairman Secretary

Member

$450,000.00

$250,000.00

$350,000.00

$150,000.00

$400,000.00

$200,000.00

$300,000.00

$100,000.00

$50,000.00

$0.00LINE OF CREDIT

2017 2018 2019

CHRISTMAS

LINE OF CREDITS


32

rePOrT Of The SuPerViSOry cOMMiTTeeENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED

for the PeriodOctober 01, 2018to September 30, 2019

Liza White-Romain Chairman 02 02 --

Rosemary Tannis Vice Chairman 02 02 --

Jennifer Williams Secretary 02 02 --

Glenroy Hackett Asst. Secretary 02 02 --

Tricia Small Member 02 01 01

Glenroy Hackett Chairman 10 10 --

Jennifer Williams Vice Chairman 10 09 01

Liza White-Romain Secretary 10 08 02

Tricia Small Asst. Secretary 10 08 02

Janet Grannum Member 10 09 01

NAMES

NAMES

POSITION

POSITION

POSSIBLEATTENDANCE

POSSIBLEATTENDANCE

ATTENDANCE

ATTENDANCE

EXCUSED

EXCUSED

Attendance for the period December 11, 2018-September 30, 2018

Attendance for the period October 01, 2018-December 09, 2018

Introduction

The Supervisory Committee within a Credit Union is critical to its success and its role is articulated in the Co-operatedSocietiesActCap.378A(“ACT”)aswellastheregulations and By-laws of the Credit Union.

The mandate of the Committee includes but is not lim-ited to the following:

• Examining the books of the Credit Union• Confirming cash instruments, property,

securities and ensuring that the assets are properly protected

• AttesttothereturnsfiledwiththeFinan-cial Services Commission in accordance withsection127(2)theAct

• Receive and investigate any complaints made by members of the Society

Meetings

For the reporting period there were ten (10) regularmeetings,eight(8)extraordinarymeetingsandtwo(2)joint meetings.


33

Corporate Governance

During the year the Committee was able to execute its responsibilitywith little difficulty and having found intheir opinion that the Credit Union continues to operate in the best interest of our membership.

Examination

During the year under review we the Supervisory Com-mittee examine the Control Procedures, all aspects of the Financial Reporting and the Policies of the Credit Union. The Committee can also attest to the quarterly reportfiledinaccordancewithSection127(2)oftheAct.The review included:

• Loan Application

• Disbursement Vouchers

• The Minutes of the Board of Directors

• The Minutes of the Credit Committee

• Review of the Delinquency Policy

• Petty Cash

• Review of cash instruments

• Bank Reconciliation

Internal Controls

The Committee is generally satisfiedwith the internalcontrols and procedures within the Credit Union. How-ever, looking to the future they should always be the need to improve, in order to maximize performance. Therefore, the Committee continues to pledge its com-mitment to work with the Board and Management to achieve its endeavours.

Education and Training

Persons should constantly improve their knowledge and skills especially those who were elected to the various Committee within the Credit Union. Training programs undertaken by Committee members are:

• Supervisory Committee Orientation• Anti-Money Laundering

• Estate planning• Managing Financial Risk• Developing Your Skill as a Financial Coun-

sellor

Communication

The Supervisory Committee is here to assist members of the Credit Union who have concerns and are expe-riencingdifficultieswithoperationalmatters.Oncere-ported we can attest they will be investigated and dealt with in the most professional manner.

Appreciation

The Supervisory Committee wishes to thank The Board of Directors, The Credit Committee and Staff of the Credit Union for their dedicated service. To you the members of the Credit Union we thank you for the con-fidenceyouhaveplacedinustheSupervisoryCommit-tee. We would like to take this opportunity to wish you and yours a Blessed Christmas and a Prosperous and Healthy New Year as we look forward to serving you. Thank you.

Chairman Vice Chairman

Secretary Assistant Secretary

Member


34

nOMinaTiOn cOMMiTTeeENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED Report of the nomination committee for the Annual General Meeting 2019

The members of the Nominating Committee appointed by the Board of Directors for the period were:

Mr. Damien Springer - ChairmanMs. Sabrina Newton - MemberMs. Alicia Selman - Member

The Committee received the nominations from the Sec-retaryasperBy-Law39(2)onOctober25,2019.

The Committee met on October 28, 2019 and consid-ered thepositions tobefilled. Further theCommitteeascertained the eligibility of the individuals nominated tofillthepositions,andtheirwillingnesstoserveifelect-ed.Therewerethree(3)nomineesfortheBoardofDi-rectors,four(4)nomineefortheCreditCommitteeandthree(3)nomineesfortheSupervisoryCommittee.

TheCommitteeissatisfiedthattothebestofitsknowl-edgeandbelief,allthenomineesarequalifiedpursuantof Section 57 of the Act, the Regulations and the By-Laws.

ThefollowingaretheCommittee’sNomineestofillthepositions on the Board and other Committees:

BOARD OF DIRECTORSBro. Oswald Burnett Bro. Carlos Gilkes

Sis. Jennifer Williams

SUPERVISORY COMMITTEESis. Jennifer Williams Bro. Bradley Forde Bro. Levi Broomes

CREDIT COMMITTEBro. Carlos Gilkes

Bro. Oswald Burnett Bro. Levi Broomes Bro. Bradley Forde

Submitted by the Members of the Committee

Damien Springer Sabrina Newton

Alicia Selman


35

STandinG OrderSENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED

1. (a) Amembertostandwhenaddressingthechair. (b) Speechestobeclearandrelevanttothesubjectbeforethemeeting.

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) TheMoverofaMotion-whohastherightofreply. (b) Heraisestoobjecttoorexplain(withthepermissionoftheChair).

5. ThemoverofaProceduralMotion-(Adjournmentlaidonthetable,Motiontopostpone)tohave no right of reply.

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

7. Amemberrisingon“pointofOrder”tostatethepointclearlyandconcisely.(A “Point of order” must have relevance to the “Standing Order”.

8. (a)Amembershouldnot“call”anothermember“toOrder”-butmaydrawtheattentionoftheChair to a “breached of order”.

(b)InnoeventcanamembercalltheChair“toOrder”

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”, “Proceed 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 taken 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 to a “casting vote”.

13. If there is equality of voting on an amendment, and if the Chairman does not exercise his cast-ing vote, the amendment is lost.

14. ProvisiontobemadefortheprotectionbytheChairmanfromvilification(personalabuse).

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


37



FINANCIAL STATEMENTS

SEPTEMBER 30, 2019

PJC Chartered Accountants

Barbados

“we reckon but people count”

38

Since 1990 P.O. Box 78WRD Professional Business Centre

29 George Street, Belleville, St. Michael BB11114 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’ Report

The Members Endeavour Co-operative Credit Union Limited Opinion We have audited the financial statements of Endeavour Co-operative Credit Union Limited, which comprise the Balance Sheet as of September 30, 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. International Financial Reporting Standards, in particular IFRS9, set out the manner in which an entity should determine the amount required as impairment provision in respect of its loans receivable. As set out in Note 11(c), Management recognizes that it has not been able to implement the provisions of IFRS9, which took effect from the current year, in determining the impairment provision. We are unable to determine what would have been the effect on these financial statements had the provisions of IFRS9 been implemented as required and, accordingly, we qualify our audit opinion in that respect. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Credit Union as of September 30, 2019, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) , except for the matter described in the preceding paragraph. 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 Statements Management 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.

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Since 1990


3

Chartered Accountants

PJC

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. As 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.

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Since 1990


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Chartered Accountants

PJC Other information Management is responsible for any other information that is presented or distributed with the audited financial statements. Other information may comprise, for example, the content of a Company’s Annual Report except for the financial statements and our Auditors’ Report thereon. Our opinion on the financial statements does not cover any other information and we do not express any form of assurance on any 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 such other 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. Other Matter This report is made solely to the Members of Endeavour Co-operative Credit Union Limited, 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 the Members as a body, for our audit work, for this report, or for the opinion we have formed. PETER J. CARTER & CO. Chartered Accountants Barbados November 13, 2019

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ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED Balance Sheet September 30, 2019 Expressed in Barbados dollars

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2019 2018 Assets Current assets Cash and cash equivalents - Note 8 1,608,643 1,421,557 Accounts receivable and prepayments - Note 9 44,615 41,536 Current investments - Note 10 444,786 434,998 2,098,044 1,898,091 Non-current assets Non-current investments - Note 10 500,968 246,689 Loans to members - Note 11 7,061,134 7,073,643 Plant and equipment - Note 12 38,694 43,262 Total assets 9,698,840 9,261,685

Liabilities and Equity Liabilities Accounts payable and accruals - Note 13 52,672 39,043 Deposits and non-qualifying shares payable - Note 14 6,944,081 6,898,801 Qualifying shares - Note 15 76,540 77,410 Total liabilities 7,073,293 7,015,254 Equity Undivided earnings 1,534,283 1,285,324 Statutory reserve 1,091,264 961,107 Total equity 2,625,547 2,246,431 Total liabilities and equity 9,698,840 9,261,685 See notes to financial statements. Approved by the Board of Directors, November 13, 2019, and signed on their behalf by: ______________________________ ______________________________

President Treasurer

Endeavour Co-Op Credit Union LimitedBaLance SheeTSeptember 30, 2019Expressed in Barbados dollars

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ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED Statement of Changes in Equity Year ended September 30, 2019 Expressed in Barbados dollars

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Statutory

reserve Undivided

earnings Total

Equity

Balance - September 30, 2017 877,529 1,159,974 2,037,503

Loan interest rebate - 8% - (67,628) (67,628) Savings bonus- 1% (57,200) (57,200) Entrance fees 185 - 185 Net comprehensive income for year - 333,571 333,571 25% of net income 83,393 (83,393) 0

Balance - September 30, 2018 961,107 1,285,324 2,246,431

Loan interest rebate - 15% - (141,137) (141,137)

Entrance fees 125 - 125

Net comprehensive income for year - 520,128 520,128

25% of net income 130,032 (130,032) 0

Balance - September 30, 2019

1,091,264

1,534,283

2,625,547

See notes to financial statements.

Endeavour Co-Op Credit Union LimitedSTaTeMenT Of chanGeS in equiTyYear ended September 30, 2019Expressed in Barbados dollars

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ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED Statement of Comprehensive Income Year ended September 30, 2019 Expressed in Barbados dollars

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2019 2018 Interest earned Loans to members 988,842 945,091 Cash and cash equivalents 8,776 9,671 Investments 13,908 15,281 Total interest income 1,011,526 970,043

Interest expense Deposits and non-qualifying shares - 1% p.a. (prior year 1%) 67,440 65,790 Qualifying shares - 5% p.a. (prior year 5%) 3,564 3,870 Total interest expense 71,004 69,660 Net interest income 940,522 900,383

Other income Dividends received 2,895 3,675 Sundry income 1,577 21,411

4,472 25,086 Other expenses Depreciation 11,263 13,970 Staff costs - Note 6 193,238 199,538 Other operating expenses 466,002 378,390

670,503 591,898 Net income for year 274,491 333,571 Other Comprehensive Income Fair value gain on equity shares - Note 10 245,637 0

Net comprehensive income for year 520,128 333,571 See notes to financial statements.

Endeavour Co-Op Credit Union Limited.

STaTeMenT Of cOMPrehenSiVe incOMeYear ended September 30, 2019Expressed in Barbados dollars

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ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED Statement of Cash Flows Year ended September 30, 2019 Expressed in Barbados dollars

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2019 2018 Cash provided / (used) by: Operating activities Net comprehensive income for year 520,128 333,571 Add item not involving cash Depreciation 11,263 13,970 531,391 347,541 Change in non-cash operating items Accounts receivable and prepayments (3,079) 59,570 Accounts payable and accruals 13,629 6,279 Deposits and non-qualifying shares payable 45,280 296,319 Qualifying shares (870) (7,510) Net cash provided by operating activities 586,351 702,199

Investing activities (Increase) / decrease in: - Loan to members 12,509 (576,290) - Investments (264,067) (16,131)

Purchase of plant and equipment (6,695) (6,670) Net cash used by investing activities (258,253) (599,091)

Financing activities Entrance fees 125 185 Loan interest rebate (141,137) (67,628) Savings bonus 0 (57,200)

Net cash used by financing activities (141,012) (124,643)

Increase / (decrease) in cash and cash equivalents 187,086 (21,535)

Cash and cash equivalents - start of year 1,421,557 1,443,092

Cash and cash equivalents - end of year 1,608,643 1,421,557

See notes to financial statements.

Endeavour Co-Op Credit Union LimitedSTaTeMenT Of caSh fLOwSYear ended September 30, 2019Expressed in Barbados dollars

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ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED Notes to Financial Statements September 30, 2019 Expressed in Barbados dollars

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1. Registration Endeavour Co-operative Credit Union Limited was registered on September 30, 1983 in accordance with the Co-operative Societies’ Act, Cap 378. The Society was continued on September 13, 1994 under the Co-operative Societies’ Act 1990. The principal place of business is located at Harrison Road, Belmont Road, St. Michael.

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 accounting

These 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 uncertainty The 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 basis The measurement basis used is historical cost except for equity investments that are classified as fair value investments and are stated at fair value.

Endeavour Co-Op Credit Union LimitednOTeS TO financiaL STaTeMenTSSeptember 30, 2019Expressed in Barbados dollars

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3. Significant accounting policies - continued (d) Changes in accounting policies

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

(f) Depreciation

Depreciation 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 useful lives in the business. The annual rates being used are: furniture - 10%; computer equipment - 33.33% and other equipment - 12.5%.

(g) Investments

Investments 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. 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.

(h) Statutory reserve 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 Society equals ten percent (10%) of the total assets of the Society, in accordance with the Co-operative Societies’ legislation. Similarly, Entrance Fees are taken to a Reserve Account.

(i) Education Fund A 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.

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nOTeS TO financiaL STaTeMenTSSeptember 30, 2019Expressed in Barbados dollars


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3. Significant accounting policies - continued (j) Impairment provision

Under IFRS9 the 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. Management has agreed to adopt IFRS9 but has not yet been able to implement its requirements for reasons explained in Note 11(c) below. In the circumstances, the impairment provision was determined after a review of all delinquent loans and provision was made based on the period of arrears. The provision represents Management’s best estimate of the amount which is unlikely to be collected.

(k) Foreign currency transactions

Monetary assets and liabilities expressed in foreign currencies are translated into Barbados dollars at the exchange rate ruling at the Balance Sheet date. Transactions arising during the year involving foreign currencies are translated into Barbados dollars at the rate of exchange prevailing on the date the transactions occurred. Differences arising from fluctuations in exchange rates are included in the Statement of Comprehensive Income.

(l) Income recognition Interest and other income are recognized on the accrual basis of accounting. Dividend income is recognized when it is declared by the investee company.

(m) Cash and cash equivalents Cash and cash equivalents comprise cash on hand, bank deposits and other deposits on call.

(n) Financial assets, financial liabilities and equity instruments Financial assets are recognized in the financial statements when the entity becomes a party to contractual provisions of the instruments. Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement. An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.

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4. Fair value of financial instruments (a) Financial Instruments

Financial instruments consist of financial assets and liabilities. Financial assets include cash and cash equivalents, accounts receivable and prepayments, loans to members and investments. Financial liabilities include accounts payable and accruals, and deposits and shares payable, and qualifying shares.

(b) Fair Value

Fair 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 for which it is practical to make an estimate. The fair values of the financial instruments are estimated to be not materially different from their carrying values in the financial statements.

(c) Credit Risk

Credit 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 financial institutions. Loans 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 Risk Liquidity 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 Risk Market 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 which is the risk of fluctuations in interest rates. The Credit Union’s exposure to interest rate risk on its financial instruments is disclosed in the Notes 8, 10 and 11.

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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) The Credit Union has a related party relationship with its directors and its key management personnel. As at the Balance Sheet date, balances with directors were as follows: 2019 2018

Loans 233,042 204,620

Shares and deposits payable 65,259 91,827

(c) Honoraria paid to related parties is included in Other Operating Expenses, as follows: Honoraria 40,600 42,250

(d) Key management personnel remuneration is included in Staff Costs. Transactions and

balances with key management personnel were as follows:

Remuneration 95,018

91,268

Loans outstanding 96,093 98,986

Deposits and shares payable 37,889 31,155

6. Staff costs 2019 2018

Employee benefits 193,238 199,538

The average number of employees during the year was four (prior year - six).

7. Commitments 2019 2018

Loans approved but not yet disbursed 403,725 342,896

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8. Cash and cash equivalents 2019 2018

Current account 764,730 586,989 Savings account - 0.05% p.a. (prior year 0.05%) 559,074 558,864 Barbados Co-operative & Credit Union League Ltd.: - Ordinary shares - 2.86% p.a. (prior year 3%) 152,180 152,180 Central Fund Facility Trust: - Statutory Reserve deposits - 1.5% p.a. (prior year 3%) 59,825 59,825 - Ordinary deposits - 1% p.a. (prior year 2.75%) 62,339 59,929 Cash on hand 10,495 3,770

1,608,643 1,421,557

9. Accounts receivable and prepayments 2019 2018

Interest receivable 54,441 52,706 Other receivables 105 1,675 Less: Impairment provision (37,355) (32,355) Security deposits and prepayments 27,424 19,510

44,615 41,536

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10. Investments 2019 2018

Current investments Held to maturity Barbados Public Workers Co-operative Credit Union Ltd. - 2.25% p.a. (prior year 2.50%) 444,786 434,998 444,786 434,998

Non-current investments Held to maturity Government securities - 6.625% p.a. 0 50,000 Government securities Series - B 51,380 0 Government Saving Bonds - 5.5%, redeemable 2020 57,941 53,409

Available-for-sale Co-operators General Insurance Co. Ltd.: - 1,255 ordinary shares (prior year 1,242) 391,447 143,080 Barbados Co-operative & Credit Union League Ltd.: - 20 Membership shares 200 200

500,968 246,689 945,754 681,687

(a) The Credit Union adopted the International Financial Reporting Standard #9 (IFRS9),

which took effect for accounting periods beginning on or after January 01, 2018. Accordingly, the available-for-sale, unquoted equity investments are shown at their fair value and the resulting unrealized gain is included in the Statement of Comprehensive Income. 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, 2018 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.

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10. Investments - continued

(b) In September 2018, the Government of Barbados (GoB) announced the launch of an

exchange offer open to holders of Barbados dollar-denominated debt issued by the GoB and certain state-owned enterprises (SOEs), as part of its Comprehensive Debt Restructuring. As at October 01, 2018, the old securities were exchanged for new securities which were issued in special Series based on the holders of such securities. The Credit Union’s old securities were exchanged for new Series B. Series B securities consist of eleven (11) amortizing strips with maturities ranging from five (5) to fifteen (15) years. Interest is payable quarterly from December 31, 2018. Interest rates are 1% p.a. for the first three (3) years, 2.5% p.a. for year four (4) and thereafter 3.75% p.a. until maturity. The principle of each strip will be repaid in four equal quarterly instalments commencing one year prior to the maturity date of that strip.

(c) The maturity profile of the Government securities is shown below:

Maturity Profile 2019 2018

Greater than one to five years 3,848 50,000 Greater than five to ten years 21,559 0 Greater than ten to fifteen years 25,973 0

Total 51,380 50,000

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11. Loans to members 2019 2018

Regular 6,243,611 5,973,094 Line of credit 1,197,523 1,431,304

7,441,134 7,404,398 Less: Impairment provision (380,000) (330,755) Net value of loans 7,061,134 7,073,643

(a) Regular loans bear interest at 7%, 9%, 10% and 12% p.a. (prior year 7%, 9% and 12%

p.a.) and are repayable in monthly installments of blended principal and interest. Other loans are unsecured, bear interest at 15% and 18% per annum (prior year 15% and 18% per annum) and are repayable in monthly installments of blended principal and interest. Interest charged on these loans is computed on the reducing balance basis.

(b) Impairment provision 2019 2018

Balance - start of year 330,755 350,306 Balances written off 0 (1,783) Increase / (decrease) in provision 49,245 (17,768)

Balance - end of year 380,000 330,755 (c) The impairment provision in respect of loans receivable has not been calculated in the

manner required to comply with International Financial Reporting Standards, in particular IFRS9 which took effect from the current year. The Credit Union is part of a group of credit unions that has worked with the Barbados Co-operative and Credit Union League Limited to develop an appropriate model to enable the necessary calculations to be performed. The model was developed by a professional services firm. Up to the date of reporting, the calculations have not been completed. In the circumstances Management used its best judgement to determine the appropriate level of impairment.

(d) Maturity profile of loans 2019 2018 Amount due in: One year or less 999,629 1,014,077 More than one year and up to five years 3,299,231 3,358,015 Over five years 3,142,274 3,032,306

Total 7,441,134 7,404,398

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12. Plant and equipment 2019 2018 2017

(a) Gross carrying amount

Cost 236,775 230,080 223,411 Accumulated depreciation (198,081) (186,818) (172,849)

Net book value - end of year 38,694 43,262 50,562

2019 2018

(b) Reconciliation of Net Book Values Balance - start of year 43,262 50,562 Purchases 6,695 6,670 Depreciation charge for year (11,263) (13,970)

Balance - end of year 38,694 43,262 13. Accounts payable and accruals 2019 2018

Interest payable 3,827 3,870 Other accounts 48,845 35,173

52,672 39,043 14. Deposits and non-qualifying shares payable 2019 2018

Regular shares 6,247,403 6,174,898 Members’ deposits 696,678 723,903

6,944,081 6,898,801 (a) There is no predetermined rate of interest payable on deposits and non-qualifying shares.

The rate of interest is determined by the Directors from time to time. Interest on deposits and non-qualifying shares is paid on a quarterly basis.

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15. Qualifying shares 2019 2018

76,540 77,410 (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) There is no predetermined rate of interest payable on qualifying shares. The rate of interest is determined by the Directors from time to time. Interest on qualifying shares is paid on an annual basis.

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Endeavour Co-Op Credit Union LimitedScheduLe Of OTher OPeraTinG exPenSeSSeptember 30, 2019Expressed in Barbados dollars

ENDEAVOUR CO-OPERATIVE CREDIT UNION LIMITED Schedule of Other Operating Expenses Year ended September 30, 2019 Expressed in Barbados dollars

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2019 2018

Advertising and promotion 2,692 990 Anniversary celebrations 1,779 42,558 Bad debts - collection fees 0 50 Bad debts - write-offs 2,272 0 Bank charges 4,986 6,537 Conventions and seminars 47,742 35,431 Dispute settlement costs 22,750 0 Donations 4,750 4,180 Education Fund 8,489 10,316 Financial Services Commission 2,918 0 Honoraria 40,600 42,250 Impairment provision - increase / (decrease) 54,245 (17,768) Insurance 1,531 4,047 League membership dues 6,978 6,922 Meetings 41,892 41,507 Member relations 8,453 5,879 Miscellaneous 4,166 1,652 Mutual Benefits Plan assessments 60,272 58,441 National Development Fund 796 778 Office supplies 16,720 8,862 Olga Watts scholarship 2,000 901 Postage 2,800 5,150 Professional fees 20,321 28,269 Rent 42,000 42,000 Repairs and maintenance 11,032 10,148 Software support 5,934 0 Stationery 13,528 15,763 Training 8,428 904 Utilities 25,928 22,623

466,002 378,390

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