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TRANSCRIPT
VISION
Palo Seco Credit Unionas the premier
Credit Union Co-operative Society in Trinidad and Tobago
MISSION STATEMENT
To transform Palo Seco Credit Unioninto a leading Co-operative Institution
providing the best financial servicesto its members,
through the prudent management of their financial resourcesWhile continuously developing its Human Resources in keeping with the Co-operative philosophy and principles of the Credit Union Movement.
PALO
SEC
O C
RED
IT U
NION CO-OPERATIVE SOC
IETY LIMITED
REG.
49
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TABLE OF CONTENTS
NOTICE OF MEETING 3
AGENDA 4
STANDING ORDERS 5
PRESIDENT’S ADDRESS 6-7
MINUTES OF THE 65th ANNUAL GENERAL MEETING 8-15
REPORT OF THE BOARD OF DIRECTORS 17-22
REPORT OF THE CREDIT COMMITTEE 27-28
REPORT OF THE SUPERVISORY COMMITTEE 30-31
REPORT OF THE EDUCATION COMMITTEE 33-36
TREASURER’S REPORT 40-41
AUDITOR’S REPORT 45
BALANCE SHEET 46
STATEMENT OF INCOME AND EXPENDITURE 47
STATEMENT OF APPROPRIATED FUNDS 48
STATEMENT OF CASH FLOWS 49
NOTES TO THE FINANCIAL STATEMENT 50-65
RESOLUTIONS 66-67
• Appointment of Auditors
• Distribution of Surplus
• Honoraria
• Maximum Liability
RECEIPTS AND PAYMENTS 68-70
NOTICE OF DECEASED MEMBERS 71
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NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 66th. Annual General Meeting of the Palo Seco Credit Union Co-operative Society Limited will be held on Wednesday 15th April, 2015 at the Palo Seco Credit Union’s Auditorium, 856-858 Siparia Erin Road, Los Bajos from 4:30 p.m.
AGENDA
1. Reading and confirmation of minutes of 65th Annual General Meeting
2. Matters arising from the Minutes.
3. Consideration and Acceptance of Reports
4. Reading and Consideration of Resolutions.
5. Election of Officers
6. Conduct of General Business.
Registration begins at 3:00 p.m. and ceases at 7:00 p.m.
____________________________CARL BONNETTHON. SECRETARYBOARD OF DIRECTORS
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AGENDA
1. Call to Order
2. National Anthem
3. Invocation
4. Reading of Notice
5. Welcome
6. President’s Address
7. Greetings
8. Adoption of the Standing Orders
9. Motion on Rising Time
10. Minutes of the 65th Annual General Meeting held on 9th April, 2014
11. Correspondence
12. Reports:
a. Board of Directors b. Credit Committee c. Supervisory Committee d. Education Committee e. Treasurer’s Report f. Report of the Auditor and Audited Financial Statements
13. 2015 Budget
14. Resolutions
15. Election of Officers: a. Supervisory Committee b. Credit Committee c. Board of Directors
16. General Business
17. Vote of Thanks
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STANDING ORDERS
1. A member shall stand when addressing the chair. Speeches shall be clear and relevant to the subject before the meeting.
2. A member shall address the meeting when called upon by the Chairman to do so.
3. No member shall address the meeting except through the Chairman.
4. A member may not speak twice on the same subject, except:a. The mover of a motion, who has the right to reply.b. He rises to object to, or explain (with permission of the Chair)
5. No speeches shall be made after the question has been put and carried or negated.
6. The mover of a “procedural motion” (adjournment, lay on the table, motion to postpone) shall have no right to reply.
7. A member rising on a “Point of Order” shall state the point clearly and concisely. A point of order must have relevance to the Standing Orders.
8. A member shall not “call” another member “to order” but may draw the attention of the Chair to a “breach of order”. On no account can a member call the Chair “to order”.
9. Only one amendment shall be before the meeting at one and the same time.
10. When a motion is withdrawn, any amendment to it falls.
11. The Chairman shall have the right to a “casting vote”.
12. If there is an equality of voting on an amendment and if the Chairman does not exercise his casting vote, the amendment is lost.
13. Provision shall be made for protection of the Chairman from vilification (personal abuse).
14. No member shall impute motives against another.
15. Only members and specially invited guests would be admitted.
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PRESIDENT’S ADDRESS
Notwithstanding the issues impacting the major global economies, Palo Seco Credit Union had another successful year ended December 31, 2014. We have remained committed to our Stated Goal of, ‘Providing a rate of return of more than the Core inflation rate’; as we continued our focus on capital preservation and the prudent management of our investment portfolio. The second half of 2014 saw a significant decline in oil prices, which affected all oil producing economies; Trinidad and Tobago did not escape the effects. Although we have not felt the full impact of the declining oil prices, we must put measures in place to cushion the impact to our members.
The Management and Board of Directors have completed a preliminary review of our Loans Policy and are in the process of communicating with our internal stakeholders, before the final approval. The primary objective of our review is to provide optimum benefits to our members.The 2014 financial year saw an improvement in our overall performance, which has afforded the Board of Directors the opportunity to propose a dividend of 5.5%.The Credit Union recorded growth in all the key areas:
- Membership increased by 5.64% - Members’ Shares increased by 12.18%- Loan Portfolio increased by 12:27%- Income increased by 16.10%- Assets increased by 12.09%- Dividend increased by 0.75%
I would like to take this opportunity to thank the Palo Seco Credit Union team for its support and cooperation in implementing the structural changes, which have resulted in a seamless transition in the Administrative Management of the Credit Union. At July 31, 2014 Ms. Victoria Ashby retired from the employ of Palo Seco Credit Union, after nineteen (19) years of committed service. On May 01, 2014, Ms. Marcia Brown took up the position of Manager, Palo Seco Credit Union.
I would like to take this opportunity to publicly thank, Ms. Ashby for her unwavering support, resilience and sterling contribution to the growth and development of Palo Seco Credit Union. I would also like to take this opportunity to formally introduce to the membership, Ms. Marcia Brown, Manager, Palo Seco Credit Union.
ACHIEVEMENTS
In 2014 Palo Seco Credit Union returned to our winning ways at the Co-operative Credit Union League of Trinidad and Tobago Annual Awards Ceremony. We received the award for the best performing Credit Union Very Large – Human Resource Management.We have completed the purchase of a property on Milford Road, Bon Accord, Tobago, in close proximity to the A.N.R. Robinson International Airport. The Board has further agreed to its renovation, for use as a commercial Guest House, an opportunity to earn another source of income to the Credit Union.Renovations were completed for the accommodation of Spin Bike sessions at the Virginia Haynes Fitness Centre; as a consequence all fitness activities are now accommodated at the Fitness Centre.
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OUTLOOK FOR 2015
The outlook for the Trinidad and Tobago economy is dependent on the oil and natural gas prices. The Central Bank Governor has advised that the T&T economy is more dependent on the production and sale of natural gas than on oil. The predictions from some Oil Analysts are for natural gas to average between US $2.25 to US $2.40 per mmbtu and WTI crude oil to average between US $40 to US $50 per barrel. This would result in a revenue shortfall and consequently cuts in Government spending, which would have a rippling effect throughout the country and in particular the communities in South Trinidad, which are heavily dependent on crude oil and natural gas production activities.Financial Analysts have predicted both the local and US fixed income markets to remain relatively flat or even decline marginally.The local, regional and international equity markets are uncertain and bring with them a greater degree of risk. One ray of hope on the local equity market is the pending Initial Public Offering (IPO) of Phoenix Park Gas Processors. However, the outlook for natural gas prices could affect the timing and success of the offering.I remain optimistic that our stated goal of declaring a dividend of above the Core inflation rate will be achieved. Towards this end, our focus will be on a comprehensive review of our investment portfolio, to provide for an increase in our loan interest income.The Credit Union movement in Trinidad and Tobago is faced with one of the greatest challenge in our history. The Government has tabled the Credit Union (Amendment) Bill, 2014 and the Co-operative Societies (Amendment) Bill, 2014 in the Senate on November 18, 2014. This was done, notwithstanding, a commitment given by the Minister of Finance and the Economy, for the Credit Union Movement to complete an in depth impact analysis of the proposed Legislation on the Movement before the Legislation is tabled in Parliament. The impact assessment is yet to be completed, as a team from Palo Seco Credit Union met the consultants on March 06, 2015, to solicit our views on the proposed amendments. The consultants have advised that the target completion date is April 30, 2015.The Palo Seco Credit Union is in support of enhanced Legislation to govern the operations of Credit Unions. However, in its present configuration, these Bills are inimical to the best interest of the Credit Union movement and its members. As such, Palo Seco Credit Union is demanding that proper consultation must be held with the Leadership of the Credit Union Movement, to arrive at Bills that are beneficial to the Credit Unions and their members.
ACKNOWLEDGEMENT
As we look forward to a new and exciting financial year, I want to recognize the continued support and guidance of the Board of Directors, the counsel of the Credit Committee, the encouragement of the Supervisory, Education, Gym and Nomination Committees, all of whom have contributed to the success of our Credit Union. I would also like to thank the Management and Staff for an excellent effort under challenging circumstances, for your commitment to our members, customers and wider communities. To our investment brokers, I would also like to express our sincere thanks for your advice during these challenging times. Finally, to our shareholders, thank you for the confidence you have reposed in Palo Seco Credit Union as your preferred choice of financial institution.
The Palo Seco Credit Union team will continue to work assiduously to ensure, your Credit Union remains the premier financial institution where member expectations are exceeded and shareholder value increased.
___________________________ALVIN STEPHENSONPRESIDENT
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There were 157 Members present at the start.
1.0 CALL TO ORDER
The President called the Meeting to order at 5:00 p.m and welcomed all Members and Guests. He introduced the Meeting’s Chairman, Mr. Jerome Hamilton. Mr. Hamilton asked members to stand for the National Anthem and this was followed by the recitation of the Credit Union Prayer.
2.0 WELCOME OF GUESTS
Mr. Hamilton then welcomed Invited Guests as follows:-• Ms. Diane Joseph - Representative from the Credit Union League• Officers of the Co-operative Division• Mr. Wayne Cordner – CUNA Representative• Mr. Ronald Jones – President, TECU Credit Union• Mr. Fitzgerald Jeffrey – Member of Parliament for La Brea
3.0 READING OF NOTICE OF MEETING
The President invited the Secretary, Mr. Carl Bonnett to read the Notice of the Meeting.
4.0 PRESIDENT’S WELCOME AND ADDRESS 4.1 The President welcomed Members and Guests to the 65th Annual General Meeting and proceeded to read
the President’s address.
4.2 The President read his address which highlighted the accomplishments of the Credit Union. He touched on the goings on in the world economy and again reminded members that Palo Seco Credit Union was intent on capital preservation. In commenting on the highlights the President said that the Credit Union was on the correct course, he thanked the members for giving the Board the opportunity to serve.
4.3 A safety briefing to the membership was given by Mr. Hamilton who then passed the meeting back to the President.
4.4 The President invited the President of the Co-operative Credit League, Mr. Joseph Remy to bring greetings on behalf of the League.
4.5 Mr. Remy congratulated the Credit Union and noted that Palo Seco Credit Union was one of the leading Credit Unions in the country.
MINUTES OF THE 65TH ANNUAL GENERAL MEETING OF THE PALO SECO CREDIT UNION CO-OPERATIVE SOCIETY LIMITED HELD AT THE AUDITORIUM ON 2014, APRIL 09TH
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5.0 STANDING ORDERS
The President then assumed control of the meeting and invited a member present to move a motion for the adoption of the standing orders.Mr. Neville Navarro moved the motion and it was seconded by Mr. Selvon Grant.
6.0 MINUTES OF THE 65TH ANNUAL GENERAL MEETING
6.1 Business Arising out of the Minutes
6.1.1 Correction; Education Committee Report: Page 9, para. 4.1 Ms. Paula Thomas should read Ingrid Paula Thomas.
6.1.2 In referring to paragraph 5.4.2., Ms. Pearl Lewis Browne asked for an update re; social media.
The President said that this was happening at the point in time and that Mr. Baird (the Treasurer) headed a committee.
6.1.3 Ms. Pearl Lewis Browne asked for a time line.
The President responded that there were two (2) providers who had submitted information to the Credit Union.
6.1.4 Ms. Ayanna Stroude asked about the lateness of the AGM brochure.
The President said that it was the intention to have the brochures readily available by March 28 but the printer had experienced some problems and they arrived later than expected.
The Minutes of the 65th Annual General Meeting were approved on a motion moved by Learie Reason and seconded by Osbert Creese. All members present voted in favour.
6.2 REPORT OF THE BOARD OF DIRECTORS
6.2.1 Page 13; 4th paragraph – Ms. Pearl Lewis Browne asked if there was not something that could be done to encourage members to access loans the Credit Union should be marketing more.
The President thanked her and said that the Credit Union would pursue the initiative.
6.2.2 The President brought to the attention of the membership an error in the attendance record of the Board.
6.2.3 Ms. Pearl Lewis Browne suggested that the Credit Union list the names of those members who have died, she felt that the House could have stood for a moment of silence.
The President said that it would be listed in the Credit Union’s Newsletter following which the President requested the house to stand for a moment of silence in tribute to members who died during the year.
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6.3 CREDIT COMMITTEE REPORT
6.3.1 Mr. Lester Blades made a correction to the spelling of the name in item 14. • 54th should be 64th • Laurin Hall should be Laurine Hall • Serril Pyrus should be Cyril Cyrus • Lennox Gould – Chairman
Ms. Verna De Govia moved a motion for the acceptance of the report and it was seconded by Learie Reason. All voted in favour.
6.4 SUPERVISORY COMMITTEE
6.4.1 Ms. Pearl Lewis Browne asked about the attendance record of the Committee. She said that something seemed to be missing from the report.
The President noted her query and invited the Chairman of the Supervisory Committee to answer the question about the attendance of its members.
6.4.2 Ms. Antonia Billy in responding to the question said that there were ten (10) meetings with three (3) members and six (6) meetings with two (2) members. She said that when things were found they were brought to the attention of the relevant persons.
The President thanked Ms. Billy and noted that the report could have had more details.
A motion was moved for the acceptance of the Supervisory Committee’s report by Herman Taylor and seconded by Festus Thomas. All voted in favour.
6.5 EDUCATION COMMITTEE REPORT
6.5.1 Ms. Pearl Lewis Browne pointed out errors in dates in 16.2 re: 2014 should read 2013.
A motion to accept the Education Committee’s Report was moved by Selvon Grant and seconded by Ms. Eleanor Paul. All voted in favour.
6.6 TREASURER’S/AUDITOR’S REPORT
The Auditor’s representative, Mr. Said Mohammed read the Auditor’s Report.
6.6.1 Theophilus Henry wanted to know the significance of the words ‘Loans to Members’ under the 2nd paragraph.
The President explained the meaning to the member.
6.6.2 Curtis Carzu wanted to know if it was over the 2012 period.
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6.6.3 Mervyn Allan asked about the liability due to deceased members.
The Treasurer, Mr. Richard Baird answered the question.
6.6.4 Ms. Serene Phillip Haggard asked about what would become of her money in her account when she died.
The President explained the issue and spoke about the Letters of Administration.
6.6.5 Ramkaran Singh suggested that the Credit Union encourage Joint Accounts.
The President explained that the Credit Union has to abide by the Law
6.6.6 Ms. Verna De Govia asked if she did not make a will if her daughter would not get the money.
The President explained the workings of the Law on the issue.
6.6.7 Osbert Creese asked if the $5,000 had anything to do with the Family Indemnity Plan (FIP).
The President explained to the member that they were two (2) different things.
6.6.8 Curtis Carzu wanted to know the purpose of having a beneficiary if a will still had to be done.
The President explained the item.
6.6.9 Ms. Ingrid Thomas noted that there was no programme held in 2013 on Wills and Intestacies. She hoped that in 2014 a programme would be held.
The President noted the comment.
6.6.10 Theophilus Henry sought to explain that it was the Law and the Credit Union that was saying there was a limit.
6.6.11 Wayne Alphonso said that TECU had Joint Accounts.
The President said that the Officers from the Co-operative Division who were present could explain. They declined.
6.6.12 Mervyn Allan felt that email messages should be sent to members to alert them about meetings.
The President said that this was being looked at.
6.6.13 Ms. Kelly Bates felt that with the increase in loans she would have expected to see a similar increase in interest.
The President explained that the issue was not directly proportional.
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6.6.14 Theophilus Henry asked for an explanation re: page 45 – Exceptional Items.
The Treasurer pointed to page 58 Note 13 and explained that it would have been income that would have come in later and which was not recorded in the accounts.
6.6.15 Osbert Creese asked about depreciation as he saw that it went up.
The Treasurer explained the depreciation process and pointed out that the figure went up since the Credit Union had purchased assets eg. Computers.
6.6.16 Ms. Kelly Bates asked about the printing and stationery figure which had increased.
The President explained that it was a reflection of the growth of the organisation.
6.6.17 Ms. Appolonia Bathulia said that she had not received a statement and a pass book.
The President explained that members could come into the office to collect a statement. He said that the Credit Union would ensure that all members get statements and that members should update information.
6.6.18 Ms. Arlene Ramdeo asked about Bad Debt Expenses.
The Treasurer explained how the Credit Union treats with the issue of provisioning for bad debts.
The President added that the ideal should be zero bad debts.
6.6.19 Anton Vargus asked if he could stay and participate since he just came from offshore.
6.6.20 Theophilus Henry asked about the water rate difference on page 59 Also on legal fees as it had tripled.
The President said that the fees were partly for legal assistance in terms of CLICO
6.6.21 Phillip Salazar asked about the MTS Security and whether the Credit Union was satisfied.
The President advised that the Credit Union had engaged a security management consultant and would consider the findings when they are presented.
A motion was moved for the adoption of the Financial Statement by Herman Taylor and seconded by Selvon Grant. All members present voted in favour.
A motion to accept the Treasurer’s Report was moved my Patrick Browne and seconded by Wayne Diaz.
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7.0 BUDGET
7.1 GYM INCOME
7.1.1 Ms. Adanna Squires asked if the funds would come from the additional spin bikes.
The President said that it was the intention to increase the activity in the gym.
7.2 Mervyn Allan asked about the increase in the Family Indemnity plan.
The President explained the increase and encouraged members to come into the office to make arrangements.
7.3 Ms. Shimilia Bathulia asked about what would happen since the new Law says that Credit Unions cannot own things like that (referring to the Fitness Centre).
The President responded to her questions and said that a company could be formed to manage the asset.
The Gym Budget was accepted as part of the Financial Statement on a motion moved by Herman Taylor and seconded by Selvon Grant.
8.0 RESOLUTIONS
8.1 RESOLUTIONS 1: AUDITORS
8.1.1 A resolution to have Hakeem Ahamad & Company be the Auditor for 2014 was moved by Richard Prince and seconded by Wayne Diaz.
All voted in favour.
8.2 RESOLUTION 2: DIVIDEND
8.2.1 Moved by Richard Prince and seconded by Ms. Verna De Govia. All voted in favour.
8.3 RESOLUTION 3: HONORARIA
8.3.1 Moved by Richard Prince and seconded by Herman Taylor. All voted in favour.
8.4 RESOLUTION 4: MAXIMUM LIABILITY
8.4.1 Moved by Richard Prince and seconded by Ms. Eleanor Paul. All voted in favour.
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The President thanked members and passed on the meeting to the officers of the Co-operative Division to conduct the election of officers.
9.0 ELECTION OF OFFICERS
9.1 SUPERVISORY COMMITTEE
1. Ms. Bevon Lord - Nominated by Aldwin Ferguson, seconded by Ms.Peaches McNish.2. Festus Thomas – Nominated by Ms. Ingrid Paula Thomas and seconded by Owin Voisin.3. Wayne Diaz – Nominated by Llewellyn Gervais, seconded by Raul Thompson.4. Stephen Gill – Nominated by Ms. Leslie Ann Phillip-Harris, seconded by Devernie Monsegue.
9.2 CREDIT COMMITTEE
1. Desmond Haynes – Nominated by Lester Blades seconded by Patrick Browne.2. Lennox Gould – Nominated by Desmond Haynes, seconded by Patrick Browne.3. Lester Blades – Nominated by Desmond Haynes, seconded by Patrick Browne.4. Patrick Browne – Nominated by Lester Blades, seconded by Lennox Gould.5. Ms. Laurine Halls – Nominated by Lennox Gould seconded by Patrick Browne.6. Ms. Adanna Squires – Nominated by Lennox Gould, seconded by Lester Blades.
9.3 BOARD OF DIRECTORS
1. Carl Bonnett – Nominated by Ms. Denise Lawrence seconded by Ms. Rhonda Clement.2. Aldwin Ferguson – Nominated by Ms. Susanna Marchan Neverson seconded by Lennox Whiteman.3. Ms. Naila Haynes – Nominated by Carl Bonnett, seconded by Richard Baird.4. Ronald Prince – Nominated by Ken Hankey, seconded by Larry Joseph.
A motion was moved for the acceptance of the Nomination Committee Report by Mr. Bernard Despot and seconded by Festus Thomas.
9.4 NOMINATION FROM THE FLOOR
9.4.1 SUPERVISORY COMMITTEE
Ms. Antonia Billy – Nominated by Ms. Shimilia Bathulia and seconded by Phillip FortuneMs. Yvonne John – Nominated by Theophilus Henry and seconded by Herman Taylor
9.4.2 CREDIT COMMITTEE
Emilo Taylor – nominated by Theophilus Henry seconded by Lennox Gould.Theophilus Henry moved a motion that nomination should cease and the motion was seconded by Wayne Diaz.
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9.4.3 BOARD OF DIRECTORS
Theophilus Henry nominated by Ms. Yvonne John and seconded by Emilo Taylor A motion was moved for nomination to cease by Patrick Browne and seconded by Desmond Haynes.
10.0 DRAW FOR DOOR PRIZES
NO. NUMBER WINNER1. 50 Curtis Caseau2. 445 Chandrasingh Ramsingh3. 316 Darling Richards4. 584 Christopher John5. 368 Learie Reason
11.0 GENERAL BUSINESS
1. Mr. Theophilus Joseph suggested that the Credit Union should mail brochures to members for the AGM two (2) weeks before the meeting.
2. The Credit Union should give the findings of the last membership survey (satisfaction).
3. The next brochure should have a history of the Credit Union including the first and early officers of the organization.
4. The President agreed to comply as far as possible to the requests/suggestions of Mr. Joseph.
5. Dale Lambert enquired on the public relations training of the staff and suggested that the staff should be trained accordingly.
His point was noted by the President.
6. Theophilus Henry suggested that a numbering system should be implemented in the Credit Union to facilitate service to members.
7. The President informed the members of the new opening hours that were adopted to accommodate the members.
A motion to destroy the ballots was moved by Theophilus Henry and seconded by Ms. Arlene Ramdeo.All agreed.The President thanked Ms. Mohammed and her team for the efficient manner in which elections were conducted.Meeting closed at 9:50 p.m.
Respectfully submitted
_____________________CARL BONNETTHON. SECRETARY
NO. NUMBER WINNER6. 135 Lynnason Sanderson7. 28 John De Gannes8. 692 Shane Kirby9. 434 Helena Paul10. 881 Leroy St. Hillaire
THE BOARD OF DIRECTORS
Mr. Alvin stephensonPRESIDENT
Mr. Carl BonnettHON.SECRETARY
Mr. Richard PrinceASST. SECRETARY
Mr. Richard BAIRDTREASURER
Mr. Neil Derrick DIRECTOR
Ms. Naila Haynes DIRECTOR
Mr. Bernard Despot DIRECTOR
Mr. Aldwin Ferguson DIRECTOR
Mr. Jerome HamiltonVICE PRESIDENT
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12.0 REPORT OF THE BOARD OF DIRECTORS TO THE 66TH ANNUAL GENERAL MEETING
The Board of Directors takes great pleasure in presenting this report on its stewardship of the Credit Union for the consideration and approval of the Membership.
Conditions in the financial sector have changed rapidly over the last few years. Reporting and membership data capture requirements have been upgraded necessitating the revision of our membership and other data-capture forms. Forthcoming, will be a revision of our Bye-laws which will be necessary in order to provide the legal coverage to give effect to the changed requirements and for the better administration of the Credit Union.
The primary reason for these changes resides in the imperative for organisations like credit unions, banks, insurance companies, law firms, real estate companies, to name a few, through which transactions can be made that have the potential to facilitate illegal activities, to so conduct their affairs as to reduce or eliminate the possibilities of individuals who might be engaged in money laundering from using any of these organisations. These are international requirements to which the credit union has an obligation to conform.
Almost concurrent with the new international and national requirements are the ongoing activities associated with the revision of the Co-operative Societies’ Act. The laying of the Credit Union Bill in the national Parliament has caused great discomfort to the credit union movement since the Minister of Finance had given an undertaking to further engage in deliberations with representatives of the sector to address concerns, prior to laying the Bill in the Parliament.
The credit union movement considered these actions to have violated the trust reposed in the Ministry of Finance and so, rallied credit unionists from throughout the country to engage in activities to convey the hurt felt by the Credit Union movement. This, for the reason that the Bill, in its proposed form, has the potential to significantly and negatively impact credit unions in carrying out the wishes of their members, and putting at risk the ability to grant loans. The movement has pointed out that it is not opposed to the regulation of the sector, however, some of the provisions have the potential to be debilitating to the functioning of some credit union units, and could redound to the disadvantage of members’ ability to conduct business. Regarding the February, 2014 unfortunate incident of a breach in our security system, we have held meetings with top security officials and have been advised on measures that should be taken to enhance the security system of the organization. In this regard repair works have been conducted and certain avoidance strategies have been employed.The staff has been counselled to assist them with any residual issues stemming from the breach of security. The investigation into the incident is on-going. In April, 2014 the Credit Union embarked on the Palo Seco Credit Union’s fourth bi-annual cruise. On this occasion the journey took us to Miami, St. Thomas, Puerto Rico, as well as two days in Ft. Lauderdale, Florida. As always everyone expressed their satisfaction with the trip and many are enthusiastically planning to once again participate in the 2016 event. We encourage our wider membership to consider being a part of this wonderful experience.
The year continued with a notable change within the management of the organisation. In May 2014 we saw the smooth transition of the changing of Managers. Our Manager of nineteen (19) years, Ms. Victoria Ashby retired
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from the organization and was succeeded by Ms. Marcia Brown, who had been an understudy to Ms. Ashby. We take the opportunity to wish Ms. Ashby well on her retirement and to Ms. Brown, success in her functioning as the new Manager of the Organization.
Later in the year the credit union concluded the purchase of a property in Tobago which we believe would benefit the credit union and its membership. Refurbishment works are soon to be carried out on the property following which it will be available for access by Members and the Public.
12.1 FINANCIAL AND PERFORMANCE HIGHLIGHTS
The assets of the Credit Union increased by $38.359,615 which represents growth of 12.09%. Concommitant with this asset growth, income increased by 16.10 %.
12.2 CLICO AND BAICO INVESTMENTS
In keeping with our espoused mantra to protect the interest of the credit union and its members as a first priority, we have had communications with the Ministry of Finance, Central Bank, Supervisor of Banks and our Attorneys regarding our investment with CLICO. During the year we initiated processes to acquire relevant information about CLICO from the Ministry of Finance. The most recent information in this matter is that we are expecting communication of a date for the credit union to make its case for receipt of the information.
12.3 ATTENDANCE RECORD *
There was an increase in activities in the year under review which necessitated more meetings with service providers, brokers and Attorneys. In consequence the Board of Directors met for twelve (12) Statutory Meetings, seven (7) Special Board Meetings and eight (8) Executive Meetings. Joint Committee Meetings were less frequent, and in the order of two (2) were convened.
12.4 MEMBERSHIP
The Membership of the Credit Union grew to 14,020 Members. This increase speaks to the confidence that resides in the Palo Seco Credit Union brand, and a tribute to the effective and efficient functioning of the organisation. With an increase 752 Members during the year, the figure was adjusted for resignations (46), and the deceased (28), which, on a net basis increased the membership by 5.64%.
12.5 AUDITOR
The Board recommends that the firm of Shaffick Hosein and Company be appointed Auditors of the Credit Union for the year ending 2015, December 31, and would, at the same time, thank the credit union’s past external auditors, Hakeem Ahamad & Company Limited, Chartered Accountants, who provided the service over the last four (4) years.
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PALO SECO CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
The Table below shows attendance at these meetings:-
NAMES STATUTORY MEETING
12
SPECIAL BOARD
MEETING 6
EXECUTIVE MEETING
8
JOINT COMMITTEE
MEETING 2 Present Excused
Alvin Stephenson
PRESIDENT 12 0 6 8 2
Jerome Hamilton V. PRESIDENT
12 0 6 8 2
Carl Bonnett SECRETARY
12 0 6 7 2
Richard Baird TREASURER
11 1 6 7 2
Richard Prince ASST. SECRETARY
11 1 5 5 2
Neil Derrick DIRECTOR
11 1 5 2
Aldwin Ferguson
DIRECTOR 10 2 5 2
Naila Haynes
DIRECTOR 11 1 5 2
Bernard Despot DIRECTOR
12 0 5 2
Festus Thomas 1ST. ALTERNATE DIRECTOR
Not requested to attend
Not requested to attend
Pearl Lewis Browne 2ND. ALTERNATE DIRECTOR
Not requested to attend
Not requested to attend
12.4 MEMBERSHIP
The Membership of the Credit Union grew to 14,020 Members. This increase speaks to the confidence that resides in the Palo Seco Credit Union brand, and a tribute to the effective and efficient functioning of the organisation. With an increase 752 Members during the year, the figure was adjusted for resignations (46), and the deceased (28), which, on a net basis increased the membership by 5.64%.
12.5 AUDITOR
The Board recommends that the firm of Shaffick Hosein and Company be appointed Auditors of the Credit Union for the year ending 2015, December 31, and would, at the same time, thank the credit union’s past external auditors, Hakeem Ahamad & Company Limited, Chartered Accountants, who provided the service over the last four (4) years.
12.6 DIVIDEND
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12.6 DIVIDEND
The Board of Directors recommends approval of dividend of 5.5 % in keeping with the creditable performance of the organisation over the period in review.
12.7 HONORARIUM
The Board of Directors recommends payment of an Honorarium of $233,000 to Officers of the credit union as a token for the dedicated service rendered to the organisation over the period of review.
12.3 ATTENDANCE RECORD *
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12.8 OUTGOING OFFICERS 12.8.1 BOARD OF DIRECTORS Richard Baird Eligible for re-election Richard Prince “ “ “ Bernard Despot “ “ “
12.8.2 CREDIT COMMITTEE
Lennox Gould Eligible for re-election Desmond Haynes “ “ “ Lester Blades “ “ “ Laurine Halls “ “ “ Adanna Squires “ “ “ Patrick Browne “ “ “ Emilo Taylor “ “ “
12.8.3 SUPERVISORY COMMITTEE
Antonia Billy Eligible for re-election Yvonne John “ “ “ Bevon Lord “ “ “ Festus Thomas “ “ “ Phillip Salazar “ “ “
12.9 ACTIVITIES OF BOARD OF DIRECTORS IN REVIEW
12.9.1 TRAINING
Our Human Resources, including Staff and Officers continue to benefit from various types of training which are meant to enhance and improve performance, facilitation, service, efficiency and effectiveness in the various methods and means of interaction with and for the membership. Exposure to new and advanced programmes serve as refresher courses in some instances, but are also used to improve and develop the skills and aptitude of the office personnel and Credit Union officers.
Seminars and training programmes were hosted by various bodies and service providers and will continue to be patronized and, we are certain, appreciated by staff and officers alike. Members are also given the opportunity to participate in various programmes hosted by the Credit Union and other bodies.
Some of the programmes in which the Credit Union Personnel participated include:-
Credit Union League:-• Prevention & Detection of Fraud in Financial Institution.
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• Delinquency Management• Keeping our Human Resources at the centre of organization transformation• The importance of Credit Assessment• Effective Suspicious Transaction/Activity Reporting• Leadership Conference• CCCU Conference
Micro Software Designs• Arrears Management • Emmortelle Training
ICAAT (Institute of Chartered Accountants of Trinidad & Tobago)• Becoming Audit Ready
South West Regional Chapter • Wills and Intestacy/Co-operative Philosophy and Operations.
12.9.2 ANNUAL 5K RUN/WALK AND FUN RIDE
The Credit Union’s annual run/walk/ride celebrated its 18th Anniversary in 2014. As usual the events saw wide participation in the categories, with prizes being distributed in two such categories. The cycle event, being non-competitive, saw tokens being given out as a mark of appreciation for the efforts of the riders.
We believe that our activities would generate further interest in the occasion, and cement the Credit Union’s ‘bona fides’ as an institution intent on encouraging the holistic development of its members, inclusive of wise financial investment and healthy living.
12.9.3 CREDIT UNION MONTH OPENING AND CLOSING- 2014
Credit Union Month is celebrated annually in the month of October. The North West Regional Chapter hosted the event at Trinity College, Long Circular on Sunday October 12, 2014. The credit union provided the transportation for Credit Union personnel and Members who represented the Palo Seco Credit Union at the event.
The opening of Credit Union week, in itself, is a day when the Credit Union Units get together to participate in friendly competitions, all fours and other activities. Cultural performances and entertainment are also a part of the day’s activities. The Palo Seco Credit Union has supported this event for many years and we encourage the wider membership to take a more active interest in this social event. The closing ceremony, which takes place in Tobago, was very successful with training seminars adding value to the Credit Union’s discourse. Member Credit Unions present were energized to return to their units and implement or continue to work for the betterment of their respective units.
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12.9.4 LEADERSHIP CONFERENCE
The 14th Annual Leadership Conference was held in Curacao from 22nd May, 2014 – 25th May, 2014. The Conference has become an important and integral part of the credit union movement’s training calendar. Relevant areas of operation, management and strategic dynamics were covered, adding value for participants and, by extension, member-units. The conference drew participants from various units and countries.
12.9.5 CARIBBEAN CONFEDERATION OF CREDIT UNIONS CONFERENCE (CCCU)
In 2014 the 57th Annual International Convention and Annual General Meeting was held in Nassau, Bahamas. The theme of the conference was ‘Re-engineering Credit Unions for Success and Sustainability’.
The CCCU Convention is one that attracts participation from various countries around the world. The Palo Seco Credit Union Co-operative Society Limited sent a small contingent of officers who gained valuable insight from the programmes and training activities available.
12.9.6 FIRST NATIONAL CREDIT UNION
We continue our efforts to have our matter with the First National Credit Union resolved. Our communication with the Co-operative Division of the Ministry of Labour and Small and Micro Enterprise Development allows us to have updates on the status of like matters which are being overseen by the office of the Commissioner for Co-operatives.
12.9.7 CONDOLENCES
Our sincere condolences go out to all who had the misfortune to have lost a loved one or friend during the year since our last meeting. We are aware of the pain that surrounds such events and we commiserate with you on your loss.
12.9.8 ACKNOWLEDGEMENTS
The Board of Directors would like to convey its gratitude to the Membership, Staff, Management and Officers for their support, efforts and participation in the organisation during the past year. As we navigate through a year in which we anticipate challenges as a result of lower income for the national economy on account of lower energy prices, we anticipate your continued loyalty as, together, we weather the challenges.
Respectfully submitted
________________________ CARL BONNETTHON, SECRETARY
THE STAFF OF THE PALO SECO CREDIT
ADMINISTRATION
Ms. Marcia BrownGENERAL MANAGER
Ms. Molly Toppin AUDIT OFFICER
Mrs. Donna Jacob-Gervais ADMIN. ASSISTANT
Mrs. Erica Maison-AlexanderLOANS/COLLECTIONS SUPERVISOR
Mrs. Betty Ann Gardner RECOVERIES OFFICER
Mrs Cheryl Mitchell ARREARS OFFICER
Ms. Michelle Rodriguez Roberts RECOVERIES OFFICER 11
Ms. Josanne John ARREARS CLERK
Ms. Sharmin La Pompe LOANS OFFICER
Ms. Avalon Phillip Mrs. Nathalia Sanchez Ms. Atiya Maison
Ms. Yvette NyackLOANS OFFICER
Mrs. Rhonda Clement SECURITIES OFFICER
LOANS DEPARTMENT
COLLECTIONS DEPARTMENT
Mrs. Kathleen Prince-ThompsonOperations Supervisor
Mrs. Anesha Ramadhin Marketing Representative
Ms. Jody Elbourne Mrs. Precious Williams
Mrs. Anne Marie Stanislaus
Ms. Dayna Rampersad
Mrs. Peaches McNish
Mrs. Vonetta Regis
OPERATIONS DEPARTMENT
AUXILIARY STAFF
Mr. Albert Alphonso Mr. Anthony Cedeno
Mrs Georgia SerretteSENIOR ACCOUNTS CLERK
Mrs. Melissa Jeffrey
Ms. Andrea Lewis
Mrs. Divi Sookram ACCOUNTS CLERK 1
Ms. Desire’ Bonnett
Me. Richard Toussaint
Mrs. Denise Lawrence ACCOUNTS CLERK 11
Mrs. Janelle Mohammed
FINANCE DEPARTMENT
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13.0 REPORT OF THE CREDIT COMMITTEE TO THE 66TH ANNUAL GENERAL MEETING
13.1 The 65th Annual General Meeting saw the election of Messrs. Lester Blades, Lennox Gould, Desmond Haynes, Mrs. Laurine Halls and Ms. Adanna Squires as members, with Messrs. Patrick Browne and Emilo Taylor as Alternates.
Our first meeting after the Annual General Meeting was held on Thursday 10th April, 2014 and Mr. Lennox Gould and Desmond Haynes were returned as Chairman and Secretary, respectively. The Credit Committee had one new member in Mr. Emilo Taylor, who quickly got into stride towards being a competent member of the Credit Committee.
During the period under review, meetings were held to deal with the mandate established. There were also Joint Committee Meetings held to deal with Credit Union Business.
THE TABLE OF ATTENDANCES IS HERE PROVIDED
NAMES POSITION ATTENDANCE EXCUSEDLennox Gould Chairman 100 Desmond Haynes Secretary 97 3Lester Blades Member 96 4Laurine Hall Member 83 17Adanna Squires Member 49 51Patrick Browne Alternate 93 7Emilo Taylor Alternate 66
In the period under review 4,664 loans were granted totalling approximately $74,000,000.00 which was not significantly different from the preceding year. The Credit Committee continued to provide advice and counselling to members seeking loans.
13.2 LOANS REPORT
No. of Loans
9002751402539121
70914585
303388
Purpose of Loans
Housing, Maintenance & RepairsLegal FeesMedical ExpensesEducation and UniformPurchase Home ApplianceFuneral ExpensesPersonal ExpensesVacation Expenses Small BusinessConsolidation of DebtsMotor Vehicle Repairs
$Value of Loans22,393,637.31 778,828.84 1,176,445.62 2,188,240.28 921,075.41 154,700.00 4,030,222.03 2,013,000.00 3,216,982.74 2,947,136.61 3,171,552.95
%
30.18 1.05 1.59 2.95 1.24 0.21 5.43 2.71 4.34 3.97 4.27
28
828858
1624239
103375
112252594541
20434
4,664
Motor Vehicle InsurancePurchase of Used VehiclePurchase of New VehiclesMortgage Bill of SaleCeremonialHome FurnishingInvestmentsChristmas ShoppingLife InsuranceAgriculture/FinancePurchase of Land and DevelopmentPurchase of Credit Union Shares/BondsSpecial Computer LoansCruise LoansSplit LoansRefinance Loan ClearingDividend1st Mortgage
460,514.18 4,612,000.95 4,402,588.50 6,667,605.95 730,260.00 648,419.90 4.163,148.21 3,580,556.35 4,438.00 123,200.00 1,747,800.00 413,185.71 1,023,644.88 101,000.00 211,517.21 1,607.45 735,347.71 1,577,048.50
74,195,705.29
0.62 6.22 5.93 8.99 8.98 0.87 5.61 4.83 0.01 0.17 2.36 0.56 1.38 0.14 0.29 0.00 0.99 2.13 100%
Members were afforded the opportunity during the year to attend training seminars to gain a better understanding of their roles and responsibilities as Credit Committee Members.
The Credit Committee takes the opportunity to remind all Credit Union members to be vigilant and be prepared to take incisive action against the draconian legislation that has been proposed by the Parliament of Trinidad and Tobago to control Credit Unions to the detriment of Credit Union Members and the Credit Union movement as a whole.
Ms. Adanna Squires has indicated that due to work commitments and other personal reasons, it has become very difficult for her to give committed and dedicated service to the Credit Committee, at this point and as such would not be offering herself for re-election. She thanks the membership for the opportunity given afforded to her to serve and hopes that at some time in the future, when not so constrained, she may again be given the opportunity to serve the Credit Union in whatever capacity.
The Credit Committee wishes to thank the membership for having given us the opportunity to serve and also the management, staff, supervisory and other committees for your co-operation during the past period
Yours respectfully
_____________________Desmond HaynesSECRETARY
Mr. Lennox GouldCHAIRMAN
Mr. Patrick Browne
Mrs. Laurine Halls
Mr. Desmond HaynesSECRETARY
Ms. Adanna Squires
Mr. Lester Blades
Mr. Emilo Taylor
THE CREDIT COMMITTEE
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14.0 THE SUPERVISORY COMMITTEE REPORT
14.1 The Supervisory Committee is pleased to present its report on the supervision of the affairs of the Palo Seco Credit Union Co-operative Society Limited for consideration at the 66th Annual General Meeting. This report covers the period under review which ended December 31st, 2014.
14.2 STRUCTURE OF THE COMMITTEE
1. Bevon Lord - Chair-person2. Antonia Billy - Secretary3. Yvonne Henry-John - Member4. Wayne Diaz - 1st Alternate5. Festus Thomas - 2nd Alternate
The Committee convened its first meeting on 14th April, 2014. During the period of this review the Committee held seventeen (17) meetings and attended three (3) Joint Committee meetings.
14.3 ATTENDANCE AT MEETINGS
Bevon Lord - 17Antonia Billy - 11Yvonne Henry John - 11Wayne Diaz - 6 Festus Thomas - 13
14.4 OBJECTIVES
The objectives of the Supervisory Committee are as follows:-
a) To ensure compliance with the Bye-Laws and the Policies of the Organization in order to protect members against loss.
b) To review policies and procedures to ensure that the financial operations of the organization are properly conducted in accordance with set procedures.
c) To evaluate and audit the internal controls through meetings with management.d) To verify the existence of the Credit Union’s assets and liabilities as set forth in the Treasurer’s accounts and to
determine if these assets are properly protected and recorded.
14.5 INTERNAL AUDITS CONDUCTED
The Supervisory Committee executed its mandate in accordance with the Co-operative Act and the Bye-Laws of the Palo Seco Credit Union Regulation No. 49 and as such conducted the following audits:-
• Review of Officers and Staff Loans• Review of cash receipts
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• Review of the Fixed Asset Register• Recoveries/Delinquent Loans• Credit Committee Operations• Products and Service• Policies and Procedures• Cash Management Procedures• Review of Minutes of Board Meetings• Verification of Investments• Review loan applications and disbursements
14.6 OTHER ACTIVITIES
The Supervisory Committee attended and supported the following activities with a view of ensuring that the activities were conducted in accordance with the Credit Union’s Philosophy, Policy and Procedures:-
• Credit Union month activities• Scholarship Award Ceremony• Education Seminars• Children’s Christmas party• Board of Directors’ Dinner• Staff Christmas Party
14.7 OBSERVATIONS/RECOMMENDATIONS
1. The Committee would like to see the Scholarship Awardees more involved in the co-operative life because they are on the verge of adulthood.
2. A stronger presence of our Credit Union in the community through members of staff visiting schools and encouraging thriftiness.
3. A greater involvement of all members and staff in the activities of the Credit Union.
ACKNOWLEDGEMENT
The Committee wishes to thank the Board of Directors, other Committees, Management and Staff for their kind co-operation and assistance during the period under review. Last but not least our heartfelt thanks to you the general membership for giving us the opportunity to serve.
The past year was indeed very challenging, which served to deepen our resolve to the success and upliftment of our Credit Union. We embraced all of it with enthusiasm and commitment. We would like to encourage the membership to continue working with us to ensure that the Credit Union Movement remains a Private Financial Institution in Trinidad and Tobago.
Respectfully submitted ______________________Antonia Billy, Secretary
Ms. Bevan Lord CHAIR-PERSON
Ms Antonia Billy SECRETARY
Mrs. Yvonne JohnMEMBER
THE SUPERVISORY COMMITTEE
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15.0 EDUCATION COMMITTEE REPORT
The following members comprised the Education Committee for the period under review.
Neil Derrick - ChairmanBernard Despot - SecretaryRonald Prince - Committee MemberMelissa Vincent Jeffrey - Staff RepresentativeDivi Sookram - Staff RepresentativeAnesha Ramadhin - Staff Representative (Co-opted)Lennox Gould - (Co-opted)
We the members of the Education Committee of the Palo Seco Credit Union Co-operative Society Limited, extend greetings to all.
The Education Committee is pleased to report on its activities for 2014. The Committee held a total of sixteen (16) meetings for the said period. The activities undertaken were:-
• Scholarship Award Ceremony• Senior Citizens Day out• Annual Run/Walk & Fun Ride• Seminar – Wills and Intestacies• Seminar – Success with purpose• Seminar – Life Skills• Children’s Christmas Treat• Palo Seco Credit Union/Erin Zone Athletic Games• Protest Action – Draft Credit Union Bill
Five (5) of the above mentioned activities were held in the month of October 2014 in celebration of Credit Union Month.
15.1 SCHOLARSHIP AWARD CEREMONY
This was held on Saturday September 20, 2014. The awardees were selected from applications submitted by members and/or children of members of the Palo Seco Credit Union Co-operative Society Limited. A points system was devised for each category to create equity. A total of thirty two (32) awards were presented.
S.E.A. Awards - 25CXC/Advanced Level Awards - 5Tertiary Level Awards - 2
Present were Awardees, accompanied by their parents/guardians, principals, teachers and other distinguished guests. The feature speaker was Mr. Davanand Sinanan, President of the Trinidad and Tobago Unified Teachers’ Association (TTUTA). He gave both students and their parents/guardians very useful and practical advice as the students moved on to their next educational pursuits.
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The Palo Seco Credit Union through the President, Mr. Alvin Stephenson, wished the Awardees all continued success and thanked Mr. Sinanan for his inspiring presentation. The successful Awardees were:-
15.1.1 SECONDARY Entrance Assessment (S.E.A)
Sallisha Ali Chelsea Balgobin Sameera Beharry Sureka Bhola Justyn Caesar Triston Charles Diandra Collins Jada Dickie Tinique Dimsoy Tamika Gopaul Sade Greene Vincent Hinds Fay Ann John Sapphire Martin Grace Radgecoomar Rajiv Ramdhan Rondell Rampersad Rayana Renne Jessica Rooplal Kyle Samlal Alexia St. Bernard Nkosi Stanlaus Tirya Subnaik Kieyana Villafana Kristian Wilson
15.1.2 ADVANCE AND TERTIARY LEVELS
ADVANCED LEVEL TERTIARY LEVEL Angel Ashby Mandela Patrick Moesha Emberru Alyssa Mike Kershawn Franklyn Dennilene Pierre Shane Ramnarinesingh
15.2 SENIOR CITIZENS DAY OUT
This event was held on Friday October 03, 2014 and was a big day for our respected senior citizens. They were taken on a journey to the western peninsula including the Boardwalk and West Mall. The event came off incident free and all participants expressed their thanks for such a pleasurable event. They also hoped that this would be a continued event. Total number of participants on the trip were forty (40).
15.3 ANNUAL RUN/WALK & FUN RIDE
This year marked the eighteenth year of this event and it was held on Sunday October 05, 2014. The run/walk started at Quarry Village and ended at the entrance of the Palo Seco Credit Union Building. There were 105 entrants in this event. A decision was taken to bring the fun ride closer to home (it previously started at Pointe-a-Pierre) such that this year it started at the Palo Seco Credit Union, went through the Flyover Road to Point Fortin, then into Erin and ended at the Credit Union’s entrance. Keeping it ‘local’ was welcomed by all, and recommendations have been made for slight alterations to the route which will be considered for next time. There were a total of 28 cyclists in this event. Following are the results;-
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RUN WALKMALE FEMALE MALE FEMALECurtis Cox Jenelle Nedd Anthony Francis Marsha TaylorKevin Johnson Shaniah Francis Deodath Harrikissoon Rosean AntoineLionel Dandrade Christine Regis Jirmal Coutou Alicia Teesdale
15.4 WILLS AND INTESTACIES SEMINAR
This event was carded for Wednesday October 08, 2014 with the intention to assist members with their growing concerns about ‘named beneficiaries’ and the need for a clearer understanding of the importance of having a will. The Presenter was Ms. Keisha Khan, a partner with the firm Daltons, Attorneys at Law. Ms. Khan has acquired extensive experience in, among other areas of law, succession and probate, (contentious and non-contentious). She delivered a powerful presentation with full participation from the sixty (60) attendees, using a case history to enhance said presentation. The importance of making a will was duly emphasised.
15.5 SEMINAR – SUCCESS WITH PURPOSE
It is of great importance to pay attention to our youth because they are indeed our future Co-operators and of course, Directors and Officers. This seminar was held on Friday October 17, 2014 and targeted students from Secondary Schools in form five (5) and above. The Presenter was Mr. Ferose Abdool.
Among his topics were core values needed to succeed eg. honesty, high trust, humility, character, compassion, commitment and competence. He emphasized throughout his presentation the need for students to establish closeness with their maker. Schools participating were:-
• Siparia West Secondary• Fyzabad Secondary• Holy Faith Convent (Penal)• Siparia East Secondary• Fyzabad Anglican School
15.6 SEMINAR – LIFE SKILLS
This activity targeted young people who are now unemployed or looking to move on with their careers. It was held on Friday October 24, 2014 and the Presenter was Ms. Zita Emmanuel. She studied in London becoming a qualified nurse and then moved on to manage some of the noted health institutions in London. She is the author of a book ‘Kidney Disease – How to Fight and Win’.
After an introductory presentation of ‘Preparing your Resume’ by Ms. Atiya Maison, who is an employee of the Credit Union. Ms. Emmanuel went on to discuss ‘preparing for the interview’. This was wide ranging and participants benefited immensely from the presentation.
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15.7 CHILDREN’S CHRISTMAS TREAT
This annual event came off as planned on Sunday December 07, 2014 and a total of three hundred and sixty (360) children were treated. It was a fun filled day which included musical chairs, treat bags, drinks, balloon craft, cotton candy, popcorn, face painting and ice cream. Later in the evening after Santa’s arrival, gift wrapped toys were then shared to all the children. It was an exciting and well organized event.
15.8 PALO SECO CREDIT UNION ERIN ZONE ATHLETIC GAMES
This event carded for February 24th and 26th, 2015 was not completed at the time of print. The Palo Seco Credit Union, through the Education Committee met with the Erin Zone Games Committee and agreed to be the gold sponsor of this event.
15.9 PROTEST ACTION – DRAFT CREDIT UNION BILL
The Palo Seco Credit Union has given full support to the national body, the Co-operative Credit Union League of Trinidad and Tobago Ltd. in our struggle to protest the draft Credit Union Bill. It is believed that this bill, in its present form, will be detrimental to the survival of the Credit Union Movement. Among other things that will be affected are the supervision of Credit Unions (Central Bank), auditing and loan fees, dividend, term limits, choice of directors and officers.
Responding to a call from our present body (CCULTT), the Palo Seco Credit Union participated in protest action on Tuesday February 10, 2015 outside of Parliament. The education committee was successful in having 40 participants in this venture, which was inclusive of both staff and members of the organization.
Respectfully submitted
______________________BERNARD DESPOT for and behalf of NEIL DERRICKCHAIRMANEDUCATION COMMITTEE
2014 ANNUAL SCHOLARSHIP AWARD FUNCTION
MEMBERSHIP APPRECIATION DAY
2014 SEA Scholarship Recipients
President, Mr. Alvin presents one of the Tertiary Level Awards
Courts Unicomer Representatives display their products
The Police Service Booth was very popular with the Members
Mr. Davanand Sinanan, speaks with the Awardees
MEMBERSHIP APPRECIATION DAY
2014 ANNUAL 5K RUN/WALK/FUN RIDE
CUNA Representatives were on hand to give Members valuable information
Mr. Curtis Cox on his way to victory at the Annual 5K Run/Walk event
The First Cyclist arrives at the Credit Union entrance
Curious members inspect the products of one of the booths on display
A Participant being given his medal at the finish line
An Aerobics workout after the Main Event
2014 ANNUAL CHILDREN’S CHRISTMAS TREAT
Kids participate in the ever popular game of Musical Chairs
This Tiny Mite gets her face painted by a clown
The Children’s favourite – Bouncy Castles
Santa distributes treats to eager children
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REPORT OF THE TREASURER TO THE 66TH ANNUAL GENERAL MEETING
17.0 Overview
Mr. Chairman, Fellow Officers, Honoured Guests, Fellow Co-operators, Ladies and Gentlemen, I am pleased to report on the financial performance of the Palo Seco Credit Union Co-operative Society Limited for the Financial Year ended 2014 December, 31st.The following 2014 economic statistics for Trinidad and Tobago provides a background for the analysis provided,Prime Rate 07.50% Ordinary savings deposit 0.20%Core Inflation 03.00% Headline Inflation 8.50%CB Repo Rate 03.25% Discount Rate 5.25%
17.1 Assets
Total Assets grew by $38,359,615 or 12.09 % compared to the previous year increase of 10.67%. The items, which made the most significant contributions towards this increase, are members’ loans, which increased by 12.27%, fixed assets which increased by 45.28% and cash which increased by 129%.
(a) Loans to Members Members’ loan portfolio increased by 12.27% compared to the previous year’s increase of 13.42%. Total
number of loans granted in 2014 decreased by 200 but there was an increase of $2,084,787 or 2.89% in the dollar value.
It should be noted that our Shares now exceeds our loan portfolio by 43.03%, our goal is 20 - 25%. It should also be noted that our loan portfolio now represent 55.58% of total Assets, ideally this should be between 75% and 80% highlighting our ‘core’ business function.
(b) Cash Resources Cash Resources increased by $7,534,222 or 129%. This compares unfavourably with the previous year’s
increase of 0.05%, and reflects the high liquidity in the financial services environment and the challenges experienced seeking to maximize potential returns.
17.2 Liabilities
Total Liabilities increased by $2,248,150 or 13.56% compared an increase of 9.21% in the previous year due mainly to an increase in Members’ Deposits by $1,102,790 or 6.47%.
The proposed Dividends represent 61.82% of the Society’s total Revenue for 2014, compared to 53.78% in 2013.
17.3 Members’ Equity
Members’ Total Equity increased by $36,110,467 or 12.18%, confirming the continuing safety and soundness of our Credit Union. Members’ shares increased by $26,826,621 or 10.49% compared to $24,920,205 or 10.80% in the
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previous year. Members are urged to continue contributing meaningfully towards the development of the credit union
17.4 Income
Total revenue from ordinary activities increased by $2,745,985 or 12.80% over the previous year. Revenue from loans increased by $3,059,263 or 16.16% and from Fixed Deposits decreased by $139,937 or 16.87%. Revenue from Investment increased by $42,872 or 4.49%.
17.5 Expenses
Expenses increased by $224,010 or 03.04% compared to an increase of $640,707 or 09.51% in the previous year. The main contributor was a decrease in Employee Expenses 15.57%. Total Expenses is 31.41% of total Revenue compared to 34.38% in the previous year.
Ordinary Income before appropriation increased by $2,331,472 or 16.06% compared to an increase of $1,776.171 or 13.94% in the previous year.
17.6 Distribution of Surplus
Based on the aforementioned information, I recommend to the Board of Directors a proposed dividend of 5.5% to be paid and credited to the shares of members and subject to any limitations imposed on delinquent members.
17.7 Office operations and Staffing
We have continued our drive towards prudent financial management and constantly re-evaluated our operations throughout the year to ensure service efficiency and excellence evident by an analysis of our PEARLS ratios and 10-years graphical review (shown below). We hope you continue to enjoy the benefits of membership long into the future.
Respectfully submitted, ________________________RICHARD B. BAIRDTREASURER
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CCULTT- PEARLS RATIOS
HISTORICAL ANALYSIS
1
CCULTT- PEARLS RATIOS
HISTORICAL ANALYSIS
1
CCULTT- PEARLS RATIOS
HISTORICAL ANALYSIS
43
HISTORICAL ANALYSIS cont’d
2
HISTORICAL ANALYSIS cont…
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BUDGET 2015
Overview
The IMF in its World Economic Outlook for 2015 has forecasted a global growth rate of 3.8% . The Caribbean region and in particular the Trinidad and Tobago economy may experience lower levels during 2015. This projection is based on the level of activity projected within the Energy Sector and the level of Government activity expected in the construction industry. Our investment and fixed deposit portfolios should provide a return of approximately 6.0%. Although we have not had closure on one of our major investment in 2014, we are more optimistic about 2015 and our re-investment strategies would be able to meet our projected dividend rate of 5.50% for 2015.
The major areas of Income and Expenditure are shown below for review and approval.
INCOMELoan InterestInterest Fixed DepositInvestment IncomeInterest on Current/SavingsOther IncomeGym IncomeTotal Income
EXPENSEInterest ExpenseBank ChargesAdministrativeOfficersEmployeeGym ExpenseProvision for Doubtful LoansTotal Expense
SURPLUS
Exceptional ItemIncome before Appropriation
BUDGETED2015
25,000,000 750,000
1,075,000 25,000
550,000 250,000
27,650,000
475,000 25,000
3,900,000 400,000
3,750,000 350,000 100,000
9,000,000
18,650,000
18,650,000
Actual2014
21,984,874 689,511 997,499
8,817 292,006 223,044
24,195,751
445,306 23,677
3,067,583 311,259
3,604,418 151,110100,000
7,600,353
16,595,398
250,40216,845,800
BUDGETED2014
21,000,000 900,000
1,000,000 25,000
215,000 750,000
23,890,00
375,000 25,000
3,400,000 400,000
2,500,000 325,000 100,000
7,125,000
16,765,000
16,765,300
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INDEPENDENT AUDITORS’ REPORT
TO THE MEMBERS OFPALO SECO CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
We have audited the accompanying financial statements of Palo Seco Credit Union Co-Operative Society Limited which comprise the
statement of financial position as at 31st December, 2014, the statement of comprehensive income, appropriated funds and undivided
earnings, cash flows and receipts and payments for the year then ended and a summary of significant accounting policies and other
explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements in accordance with International Financial Reporting
Standards. This responsibility includes designing, implementing and maintaining internal control, relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying
appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with
International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurances whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the
entity’s preparation and fair presentation of the financial statements 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. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
Subject to note 16, in our opinion, the financial statements present fairly, in all material respects, the financial position of Palo Seco Credit
Union Co-Operative Society Limited as of 31st December 2014, and its financial performance and cash flows for the year then ended in
accordance with International Financial Reporting Standards.
18th March 2015
…. …..……………………………
Arima CHARTERED ACCOUNTANTS
46
PALO SECO CREDIT UNION CO-‐OP SOCIETY LIMITED STATEMENT OF FINANCIAL POSITION
FOR THE PERIOD ENDED 31 DECEMBER 2014
NOTES 2014 2013
ASSETS Cash on Hand 4 1,053,092 388,366 Cash at bank 4 12,325,482 5,455,986 Fixed Deposits 4 57,318,601 53,467,913 A/cs Receivable & Prepayments 5 941,231 2,028,515 Interest Receivable 6 14,861,692 14,750,602 Members Loans 7 197,554,347 175,961,342 Investments 8 62,568,136 59,050,869 Fixed Assets 9 9,113,589 6,272,962
355,736,171 317,376,555
LIABILITIES Due to Deceased Members 3,268,149 3,023,010 Special Deposit 12,353,366 11,303,659 Members Deposits 5,713,749 4,683,641 A/cs Payable & Accruals 1,304,610 1,516,842 Thrift Investment A/c 494,989 358,560
23,134,862 20,885,711
MEMBERS' ACCOUNTS Members Share Balance 11 282,566,052 255,742,431 Retained Earnings 19,026,884 16,082,410 Reserve Fund 19,647,341 17,962,009 Education Fund 4,481,995 4,106,400 Special Reserve Fund 178,513 30,461 Investment Revaluation Reserve 12 6,463,415 2,535,199 Supplemental Special Reserve Fund 237,109 31,935
332,601,308 296,490,844
355,736,171 317,376,555
49
Alvin Stephenson Richard Baird Antonia BillyPresident Treasurer Supervisory Committee member
47
PALO SECO CREDIT UNION CO-‐OP SOCIETY LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIOD ENDED 31 DECEMBER 2014
NOTES 2014 2013 REVENUE Loan Interest 21,984,874 18,925,612 Interest on Fixed Deposit 689,511 829,448 Investment income 997,499 954,626 Int on Current & Savings A/c 8,817 26,008 Fitness Centre Income 14 223,044 212,746 Other Income 292,006 501,327
TOTAL REVENUE 24,195,751 21,449,766 EXPENSES Depreciation 490,360 438,872 Administration & Other 15a 2,725,333 1,978,557 Officers 15b 311,259 297,853 Employee Cost 15c 3,604,418 4,269,376 Interest & Bank Chgs 15d 468,983 391,686
TOTAL EXPENSES 7,600,353 7,376,343
Net Surplus 16,595,398 14,073,423 Gain/(Loss) On Foreign Exchange (7,534) 299,328 Gain/(Loss) On Investments 14,412 -‐ Exceptional Item 13 243,524 141,576
INCOME BEFORE APPROPRIATION 16,845,800 14,514,328
48
PALO SECO CREDIT UNION CO-OP SOCIETY LIMITEDSTATEMENT OF APPROPRIATED FUNDS AND UNDIVIDED SURPLUS
FOR THE PERIOD ENDED 31 DECEMBER 2014
Reserve EducationSpecial Reserve Supplemental Undivided
Fund Fund FundSpecial Reserve Surplus
$ $ $ $ $
Balance as at January 1st, 2014
17,962,009 4,106,400
30,461
31,935
16,082,410
Add : Net Surplus for the year
16,845,800
10% to Reserve Fund 1,684,580
(1,684,580)
5% of the balance to Education Fund 758,061
(758,061)
Appropriation 250,000
100,000
(350,000)
19,646,589 4,864,461
280,461
131,935
30,135,569
Entrance Fees
752
Education Fund Expenses (411,857)
Education Fund Receipts
29,391
Supplemental Special Reserve Fund (93,011)
Supplemental Special Reserve Fund 198,186
Deceased Members
(101,948)
Dividend Paid 2014
(11,108,685)
Balance as at December 31st 2014
19,647,341 4,481,995 178,513
237,109
19,026,884
49
PALO SECO CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED DECEMBER, 2014
AUDITED AUDITED Dec-14 Dec-13 Undivided
Cash Provided by (used in) Operating Activities: Surplus
Net surplus after extraordinary items
16,845,800 14,514,328 $
16,082,410
Add/(deduct) items not involving cash: 16,845,800
Loan loss provision
100,000
100,000 (1,684,580)
Depreciation and armortisation
490,360
438,872
17,436,160 15,053,200
Increase/(decrease) in Non-cash Working Capital Amounts:
Decrease/(increase) in interest receivable
(111,090)
267,759 Decrease/(increase) in accounts receivable and prepayments
1,087,284
(1,138,958)
Increase/(decrease) in accounts payable and accruals
(212,232)
(126,508)
Supplemental Special Reserve Fund
105,175
(129,925)
Education Fund
(382,466)
(420,931)
Special Reserve Fund
(101,948)
(239,294)Increase/(decrease) in investment revaluation reserve
3,631,617
984,367
Increase/(decrease) in Reserve Fund
752
1,524
Undivided Surplus
-
- Increase/(decrease) in amounts due to deceased members
245,139
467,201
21,698,390
14,718,435
50
Cash Provided by (used in) Investing Activities:
Increase in members’ loans
(21,693,004)
(20,925,628)
Increase in fixed assets
(3,330,986)
(621,942)Decrease/(increase) in long-term investments
(3,220,668)
(8,702,601)
(28,244,659)
(30,250,171)
Cash Provided by (used in) Financing Activities:
Dividends paid
(11,108,685)
(10,463,086)
Increase in members’ shares
26,823,621 24,920,205
Increase in members’ fixed deposits
2,216,243
1,102,790
17,931,179
15,559,909
Increase/(decrease) in cash
11,384,910
28,173
Cash resources at beginning of year
59,312,265 59,284,092
Cash resources at end of year
70,697,175 59,312,265
Represented By:
Cash in hand and at Bank
13,378,574
5,844,352
Short Term Investments
57,318,601 53,467,913
70,697,175
59,312,265
51
NOTES TO THE FINANCIAL STATEMENTS31ST DECEMBER 2014
These notes are applicable to the Credit Union’s Financial Statements.
1. Registration and Objectives
The Society was registered under The Co-operative Society Act of Trinidad and Tobago on January 30, 1948
It operates as a Credit Union for the benefit of persons of good character who are residents of Los Bajos and environs, all employees of Trinidad and Tobago Petroleum Company Limited and of any industry or commercial enterprise operating within the area of operation of the Society, permanent employees of the Society and other registered co-operative societies in the Republic of Trinidad and Tobago.
It is governed by the Laws of the Republic of Trinidad and Tobago; and its Bye-laws as adopted by members, at resolutions, at general meetings.
2. Significant Accounting Policies
The significant accounting policies adopted in these financial statements have been applied consistently to all periods presented in the financial statements and are set out hereunder.
(a) Basis of Preparation
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board and are presented in Trinidad and Tobago dollars, which is the functional currency, and rounded to the nearest whole dollar.
The financial statements are prepared on the historical cost basis modified for the inclusion of investments at fair value through profit and loss, revaluation of property, plant and equipment and available-for-sale investments at fair value.
(b) Revenue Recognition
Interest income is accounted for on the accrual basis for investments. Interest on loans in accounted for on a cash basis, at the rate prescribed by the Bye-laws of this Credit Union.
(c) Foreign Currency
Transactions in foreign currencies are translated at the rate of exchange ruling at the transaction date. Foreign monetary assets and liabilities are translated at the exchange rate prevailing at the balance sheet date. Resulting translation differences and profits and losses from trading activities are included in the statement of income
(d) Financial Assets and LiabilitiesFinancial instruments carried on the balance sheet include cash resources, investments, loans, deposits and other liabilities. The standard treatment for recognition, de-recognition, classification and measurement of this Credit Union’s financial statements are noted in notes (i) to (iv).
Cash Provided by (used in) Investing Activities:
Increase in members’ loans
(21,693,004)
(20,925,628)
Increase in fixed assets
(3,330,986)
(621,942)Decrease/(increase) in long-term investments
(3,220,668)
(8,702,601)
(28,244,659)
(30,250,171)
Cash Provided by (used in) Financing Activities:
Dividends paid
(11,108,685)
(10,463,086)
Increase in members’ shares
26,823,621 24,920,205
Increase in members’ fixed deposits
2,216,243
1,102,790
17,931,179
15,559,909
Increase/(decrease) in cash
11,384,910
28,173
Cash resources at beginning of year
59,312,265 59,284,092
Cash resources at end of year
70,697,175 59,312,265
Represented By:
Cash in hand and at Bank
13,378,574
5,844,352
Short Term Investments
57,318,601 53,467,913
70,697,175
59,312,265
52
(i) Recognition
The Credit Union initially recognizes loans, advances and deposits on the date they originated. All other financial assets and liabilities (including assets and liabilities designated at fair value through profit or loss) are initially recognized on the transaction date on which this Credit Union becomes a party to the contractual provision of the instrument.
(ii) De-recognition
This Credit Union derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.
(iii) Classification
This Credit Union classifies its financial assets into the following categories: financial assets at fair value through profit and loss (held for trading); loans and receivables held-to-maturity and available-for-sale assets. Management determines the classification of its investments at initial recognition.
Financial assets at fair value through the income statement
This category includes financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when this Credit Union provides money directly to its members with no intention of trading the receivable.
Held to maturity
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that this Credit Union’s management has the positive intention and ability to hold to maturity. Were this Credit Union to sell other than a significant amount of held-to-maturity assets, the entire category would be compromised and re-classified a available-for-sale.
Available for sale
Available for sale investments are those intended to be held for an indefinite period of time, and may be sold in response to needs for liquidity or changes in interest rates, exchange rates or equity prices.
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
53
(iv) Measurement
Financial instruments are measured initially at cost, including transaction costs.
Subsequent to initial recognition, all financial assets at fair value through profit and loss and available-for-sale assets are measured at fair value, based on their quoted market prices, at the balance sheet date, without any deduction for transaction costs. Where the instrument is not actively traded or quoted on recognized exchanges, fair value is determined using discounted cash flow analysis.
Any available-for-sale assets that does not have a quoted market price in an active market and where fair value cannot be reliably measured is stated at cost, including transactions cost, less impairment losses.
All non-trading financial liabilities, originated loans and receivables and held-to-maturity assets are measured at amortized costs less impairment losses.Amortized cost is calculated on the effective interest method.
(e) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, deposits with banks and short term highly liquid investments with maturities of three months or less when purchased. These are shown at cost.
(f ) Investment Securities
Debt investments that this Credit Union has the intent to hold to maturity are classified as held-to-maturity assets. All other investments are classified as available-for-sale.
On disposal or on maturity of an investment, the difference between the net proceeds and the carrying amount is included in the statement of income. When available-for-sale assets are sold, converted or otherwise disposed of, the cumulative gain or loss recognized in equity is transferred to the statement of income.
(g) LoansLoans and advances granted by this Credit Union are stated at cost (amortized cost).
A loan is classified as non-accrual when principal or interest is past due or when, in the opinion of management, there is reasonable doubt as to the ultimate collectability of principal or interest.
Non-accrual loans may revert to performing status when all payments become fully current or when management has determined there is no reasonable doubt of ultimate collectability. Loans are written off after all the necessary legal procedures have been completed and the amount of the loss is finally determined.
The Credit Union maintains a loan loss provision, which in management’s opinion, is adequate to absorb all incurred credit-related losses in its loan portfolio. The loan loss provision is calculated using a formula method taking into account recent loss experience.
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
54
The provision for the year, less recoveries of amounts previously written off and the reversal of provisions no longer required, is disclosed in the statement of income as loan loss expense.
(h) Fixed Assets
Fixed assets are stated at historical costs or valuation. Depreciation is provided at the following rates considered appropriate to write off the assets over their estimated useful lives:
Building - 4% straight lineOffice, Furniture, Equipment & - 27½ % in the first year thereafterComputer Hardware & Software - 7½ % on the reducing balance
3. Credit Union Policies
The governance policies of this Credit Union include the following:
(a) Reserve Fund
In accordance with Bye Law 19 of the Society and The Co-operative Society Act, 1971, Section 47 (2), at least 10% of the net surplus of the Society for the year is to be transferred to a reserve fund. All bad debts or losses sustained through extraordinary circumstances over which the Credit Union has no control may, with the approval of the Commissioner of Co-operative Development, be written off, in the Reserve Fund.
(b) Education Fund
In accordance with Bye Law 19 of the Credit Union, an amount of not less than 5% of the net surplus of the year, after making provision for the reserve fund may be credited to an education fund. This fund is too be used for educational purposes.
(c) Dividends
Dividends are recommended by the Board of Directors and confirmed by the members at the Annual General Meeting. The dividend is computed on the basis of the average number of shares in issue throughout the year, the average being determined on the basis of the number of shares in issue at the end of each month. The Board of Directors has proposed a dividend of 5.50% - $14,310,376 for the year ended December 31st 2014 to be credited to members’ share balances when approved and paid.
(d) Special ReserveThis fund has been established in accordance with the authority given to the general meeting in accordance with Bye Law 19 (f ) of the Credit Union. It provides for a maximum of $24,000 per member and increasing shares of deceased members to a maximum of $9,600 per member in accordance with a specific ratio of shareholding of time of death/age.
(e) Stabilization FundThe Credit Union is no longer a member of the Stabilization Fund with effect from September 15, 2007.
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
55
(f ) Supplemental Reserve FundThis fund has been established in accordance with the authority given to the Annual General Meeting in accordance with Bye Law 7(d) of the Credit Union to increase the life savings and loan protection coverage of members to $25,000 and $50,000 respectively.
4. Cash on Hand and At Bank
Year ended 31st December 2014 2014 $ $ Current Account – Republic Bank 10,408,215 4,050,447 Multiplier Account 89 89 Current Account – RBTT Bank 581,668 361,914 U.S. Account 53,460 223,583 Current Account – First Citizens Bank - GYM 233,631 819,852 Current Account – First Citizens Bank 1,048,420 - Cash in Transit – Gym 736 1,015 Cash on Hand 1,052,356 387,351
13,378,574 5,844,352 Fixed Deposits 57,318,601 53,467,913 Cash Resources 70,697,175 59,312,265
5. Accounts Receivable and Prepayments
Year ended 31st December
2014 2013
$ $
Prepayment 28,114 28,114 Ministry of National Security 600 179,911 Ministry of Works & Transport 74,904 -
Ministry of Education 169,219 - Ministry of Health 131,145 204,263 Trinmar Limited 67,158 32,600 Petrotrin 166,815 144,237
Other 303,276 1,439,390
941,231 2,028,515
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
56
6. Interest Receivable
Interest receivable is stated at total amount of interest outstanding net of provision for possible uncollectible balances.
Year ended 31st December2014 2013 $ $
Outstanding interest receivable 22,329,218 22,218,127 Less: Provision for possible Uncollectible interest ( 7,467,525) ( 7,467,525)
14,861,692 14,750,602
7. Loans to Members
Loans to members are stated at principal outstanding net of a provision for loan losses. The provision for loan losses is based on management’s evaluation of the performance of the loan portfolio under current economic conditions and past loan loss experience.
Year ended 31st December2014 2013 $ $
Outstanding principal balances 199,854,347 178,161,342 Less: Provision for loan losses ( 2,300,000) ( 2,200,000)
197,554,347 175,961,342
8. (i) Investments
Held For Trading Year ended 31st December 2014 2013
$ $ Unit Trust First Unit Scheme 2,317,182 2,279,108 Unit Trust Second Unit Scheme 117,251 16,187 Unit Trust Money Market Fund 17,131 17,090 Unit Trust Chaconia Growth & Income 288,669 37,975 FCB El Tucuche Fixed Income Fund 8,756,452 8,659,640 Sheppard Securities (FCB) 1,867,713 1,764,399 AIC Energy 6.25% Note 4,237,505 4,237,505 Investment Wealth – Kijani (1) 1,898,422 - Investment Wealth – Kijani (2) 1,107,286 - KSBM Asset Management 5,906,020 4,895,633 25,513,631 17,770,032
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
57
Available for Sale Year ended 31st December 2014 2013 $ $
T.C.L. Shares 50,000 44,000 Republic Bank Shares 322,819 296,667 Scotia Bank Shares 1,047,194 1,234,946 Royal Bank Canada Shares 455,689 247,947 Neal & Massy Shares 2,038,013 1,791,959 AIC Financial GRP Class D 5% Preference Shares 2,000,000 2,000,000 AIC Financial GRP 4.5% Preference Shares - (1) AIC Financial GRP 6.5% Preference Shares 3,047,399 3,074,561 Sagicor New Preference Shares 351,598 365,229 Praetorian Property 230,000 230,000 National Commercial Bank Jamaica 115,000 111,000 CMMB Shares 3 3 Grace Kennedy 1,825 1,725 Guardian Holdings Limited 371,000 392,000 Bourse Brazil Latin Fund 605,597 635,180 Republic Caribbean Equity Fund 491,583 482,776 Jamaica Money Market Brokers 45,064 53,448 Sagicor Financial Corp 565,250 368,504 Scotia Investments Jamaica Ltd 145,000 150,000 National Enterprises Limited 348,400 351,000
12,231,434 12,151,190
Held to Maturity Year ended 31st December 2014 2013
$ $
US Dollar Life 252,106 252,106 Royal Skandia Life Assurance Ltd - 1,735,805 Generali International Limited - 935,857 Guardian Global Fund Solution 1,158,035 1,000,000 AIC Energy Med T/Note 3,762,395 3,762,395 Company’s Life Evolution Series 6,187,942 6,000,000 NIPDEC 19 Year TT Bond 5,412,479 5,412,479 Agostini 8% Bonds – Sheppard’s Security 6,163,237 5,100,000 Sagicor Financial Ltd 886,877 914,435
23,823,071 25,113,077
Total Investments 62,568,136 59,271,804
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
58
(ii) Investments At the date of the audit report on March 18th, 2014, the investments decreased in value by the sum of $ 4,137,664, as follows:-
Held for Trading Year ended 31 December 2014 2013
$ $
Unit Trust First Unit Scheme 2,317,182 2,279,108 Unit Trust Second Unit Scheme 117,251 116,187 Unit Trust Money Market Fund 17,131 17,090 Unit Trust North American Fund 288,669 40,975 FCB EL Tucuche Fixed Income Fund 8,756,452 8,683,203
Sheppard Securities - Cash and Cash Equivalent 1,867,713
1,764,399
Bourse Brazil Latin Fund 605,597 641,005
Scotia Bank Investment Jamaica 145,000 0
KSBM Asset Management 5,906,020 5,400,961
20,021,015 18,942,928
Available for Sale Year ended 31 December 2014 2013
$ $
T.C.L. Shares 50,000 46,000 Republic Bank Shares 322,819 323,304 Scotia Bank Shares 1,047,193 1, 234,095 Royal Bank Canada Shares 455,689 247,947 Neal & Massey Shares 2,038,013 1,979,784 AIC Fin Grp Class D 5% Pred Shares 2,000,000 2,000,000 AIC Fin Grp 4.5% Pref Shares (1) (1) AIC Fin Grp 6.5% Pref Shares 3,047,399 3,074,561 Sagicor New Preference Shares 351,598 368,604 Praetorian Property 230,000 230,000 National Commercial Bank Shares J’ca 115,000 117,000 CMMB Shares 3 3 Grace Kennedy 1,825 1,825 Guardian Holdings Limited 371,000 405,160 Republic Caribbean Equity Fund 491,583 482,776 Jamaica Money Market Brokers 45,064 47,160 Sagicor 565,250 368,604 Scotia Investments Jamaica Ltd 145,000 159,000
National Enterprises Limited 348,400 365,000
11,625,835 11,775,773
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
59
9. Fixed Assets
Cost At Addition/ Accum Depr. N.B.V. N.B.V. N.B.V.
01.01.14 (Disposal) 2014 2014 2013
$ $ $ $ $
Furniture & Equip 2,421,487 87,136 1,359,363 1,149,260 1,181,462
Computers 996,619 32,415 560,357 468,677 480,858Land & Buildings 7,332,096 3,211,435 3,047,879 7,495,652 4,610,464
10,750,202 3,330,986 4,967,599 9,113,589 6,272,784
10. Due to Deceased Members
This represents amounts owing to beneficiaries of deceased members and includes the excess of their share balances over loan balances plus any benefit due to them as per Note 3 (d).
11. Members’ Share Balances
Members’ shares consist of 56,513,210 shares of $5 each.
12. Investment Reserve Fund
This fund represents the decrease in the fair value of the Credit Union’s investments during the year.
13. Exceptional Item
Year ended 31st December
2014 2013 $ $
Prior Period Adjustment 243,524 141,576
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
60
14. Fitness Centre Income
Year ended 31st December2014 2013 $ $
Registration Fees 9,200 10,225 Membership Fees 207,455 191,590 Current Account Interest _______ 2,590
216,655 204,405
Sales 25,767 27,618 Purchases 19,378 19,277
6,389 8,341
Total Income 223,044 212,746
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
61
15. Expenses
(a) Administrative and Other Year Ended 31st December 2014 2013
$ $ Accounting Fees - 600 Advertising 164,062 89,013 AGM Expense 111,972 111,941 Audit Fees 30,000 25,800 Bad Debt Expenses 102,664 100,000 Building Repairs/Maintenance 48,550 35,500 Christmas Dinner 39,645 61,235 Cleaning & Janitorial Expenses 45,505 47,291 Consultant Fees 32,510 18,573 Donation 24,632 22,150 Electricity 96,084 96,366 Fumigation/Pest Control 18,751 16,967 Groceries & Toiletries 37,352 31,436 Insurance – Fidelity 3,207 3,207 Insurance – Money 15,671 9,461 Insurance – Public Liability 1,537 1,537 Insurance on Building 30,828 7,757 League Dues 49,594 49,594 Incidental Loss 133,894 - Legal Fees 336,807 78,548 MTS Contract 481,032 309,534 MTS Contract – GYM 151,110 151,110 Office Expense 207,010 172,453 Other 11,895 50,847 Other Repairs & Maintenance 217,877 105,439 Postage 54,665 19,900 Printing & Stationery 95,214 150,625 Professional Fees 5,175 5,175 Telephone 176,046 190,885 Transportation 13,883 10,994 Water Rates 2,859 4,381 Water Rates Boardroom & Fitness Centre 400 600
2,740,431 1,978,557
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
62
(b) Officers Year ended 31st December 2014 2013 $ $
Credit Committee Allowance 12,170 13,705Honorarium 210,600 216,566Other 33,813 33,813Refreshments 39,454 31,380Supervisory Committee 1,275 1,125Group Life Insurance 1,941 -Travelling 12,007 1,265
311,259 297,853
(c) Employee Costs Year Ended 31st December 2014 2013 $ $
Acting 15,148 11,460Backpay - 641,688Bonus & Incentives 36,493 38,405Bonus & Incentives – GYM 2,415 2,810COLA 460,970 497,506Employee Computer Subsidy 4,228 498Employee Group Life Insurance 32,886 -Employee Mortgage Subsidy 3,489 3,489Ex Gratis 9,000 3,800Group Health Plan 12,287 7,488National Insurance 222,090 207,051National Insurance – GYM 13,547 13,725Overtime 94,358 157,312Pension Plan 81,559 83,777Salaries & Wages 2,270,990 2,281,655Salaries & Wages – GYM 175,023 173,496Savings Plan 21,009 20,582Subsistence 14,100 20,321Training & Development 44,258 52,063Travelling Allowance 44,186 44,563Uniforms 42,269 7,453Workmen’s Compensation 4,111 685
3,604,418 4,269,376
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
63
(d) Bank and Interest Charges Year ended 31st December 2014 2013
$ $
Interest and Bank 23,677 23,531 Interest – Employee Saving Plan 4,253 3,466 Interest – Thrift Investment Plan 6,898 278 Special Deposit 434,155 364,411
468,983 391,686
16. CLICO Investments
Accrued interest receivable from CLICO Investments amounted to $19,240,257 as at 31st December 2011. The Minister of Finance in the Finance Act 2011 has indicated that interest will not be paid to CLICO investors. Consequently, due to discussions held with the credit union movement, he gave an undertaking to review this matter since many credit unions are adversely affected by his financial policy adoption. This matter is on-going; however, a Provision for Uncollectibility has been made for the interest receivable for 2011, in the sum of $6,079,134.
17. Adoption of New and Revised Accounting Standards and Interpretations
The Society has not applied the following standard which became effective, as it does not apply to the activities of the Society:
IAS 12 Income Taxes – Limited scope amendment (recovery of underlying assets)
The Society has applied the following standards, revised standards and interpretations that have been issued but are not yet effective as they either do not apply to the activities of the Society or have no material impact on its financial statements, except for IFRS 9 Financial Instruments:
IFRS 1 First-time Adoption of International Financial Reporting Standards – Government Loans (effective for accounting periods beginning on or after 1 January 2013).
IFRS 9 Financial Instruments: Classification and Measurement (effective for accounting periods beginning on or after 1 January 2015)
IFRS 9 Financial Instruments: Accounting for Financial Liabilities and De-recognition (effective for accounting periods beginning on or after 1 January 2015)
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
64
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
Adoption of New and Revised Accounting Standards and Interpretations
IFRS 10 Consolidated Financial Statements (effective for accounting periods beginning on or after 1 January 2013).
IFRS 11 Joint Arrangements Statements (effective for accounting periods beginning on or after 1 January 2013).
IFRS 12 Disclosure of Interest in Other Entities Statements (effective for accounting periods beginning on or after 1 January 2013
IFRS 13 Fair Value Measurement (effective for accounting periods beginning on or after 1 January 2013)
IAS 1 Presentation of Financial Statements – Amendments to revise the way other comprehensive income is presented (effective for accounting periods beginning on or after 1 July 2012)
IAS 19 Employee Benefits – Amended standard resulting from Post-Employment Benefits and Termination Benefits projects (effective for accounting periods beginning on or after 1 January 2013)
IAS 27 Consolidated and Separate Financial Statements – Reissued as IAS 27 Separate Financial Statements (effective for accounting periods beginning on or after 1 January 2013)
IAS 28 Investments in Associated – Reissued as IAS 28 Investments in Associates and Joint Ventures (effective for accounting periods beginning on or after 1 January 2013)
IAS 32 Financial Instruments; Presentation – Amendments to application guidance on the offsetting of financial assets and financial liabilities (effective for accounting periods beginning on or after 1 January 2014)
IFRIC Stripping Costs in the Production Phase of a Surface Mine (effective for accounting periods beginning on or after 1 January 2013)
The adoption of IFRS 9 Financial Instruments may result in significant changes in the Society’s classification and presentation of financial instruments.
18. Related Party Transactions
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial decisions. Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the Society.
A number of transactions are entered into with related parties in the normal course of business. These transactions were carried out on commercial terms at market prices.
65
Balances and transactions with related parties and key management personnel during the year were as follows:
31 December 2014 2013
$ $
Assets
Loans to directors and key management personsand related persons 1,224,359 1,294,899
Deposits and other liabilities
Deposits held by directors and key managementand related parties 137,417 118,971
Shares
Shares held by directors and key managementand related parties 3,023,894 2,849,299
Income
Directors and key management personnel and related parties 143,700 146,139
Interest/dividends and other expenses
Dividends – Directors and key management personnel and related parties 132,720 179,196
Key management compensation 379,200 442,636
NOTES TO THE FINANCIAL STATEMENTS 31ST DECEMBER 2014 cont’d
66
RESOLUTIONS
Resolution 1 – Appointment of Auditors
Whereas the Commissioner of Co-operative Development has drawn up a list of approved Auditors for the accounts for Co-operative Societies in accordance with section 51 of the Co-operative Societies Act and Regulations thereof:
And whereas Bye-Law 27 (j) of the Palo Seco Credit Union requires the Annual General Meeting to appoint an Auditor for the ensuing term from the list of Auditors approved by the Commissioner.
Be it resolved that Shaffick Hosein & Company has been appointed Auditors of the Palo Seco Credit Union for the financial years ending December 31st, 2015 to December 31st, 2017.
Resolution 2 – Distribution of Surplus
Whereas the Credit Union has realized a net surplus for the financial year ended December 31, 2014;and whereas Bye-Law 19 of the Society makes provision for the distribution of this surplus in accordance with the regulations of the Co-operative Societies Act,
Be it resolved that a dividend of 5.50% be declared on Members’ shares as at December 31, 2014 and credited to their share accounts,
And be it further resolved that for any account which is in arrears, the said sum credited to outstanding loan and interest.
Resolution 3 – Honoraria
Whereas during 2014 the Society’s affairs have been effectively managed by the Board of Directors, Credit, Supervisory and other appointed Committees;
And whereas the Society has realised a net surplus on its operations during the financial year,
Be it resolved that Honoraria of two hundred and thirty-three thousand dollars ($233,000.00), for the period April 01, 2014 to March 31, 2015, be distributed amongst Directors and Members of Committees, in accordance with the recommendations of the Board of Directors.
67
Resolution 4 – Maximum Liability.
Whereas Regulation 14 (1) (2) and (3) of the Co-operative Societies Act and Regulation of 1971, Chapter 81.03 of the Laws of Trinidad and Tobago provides that:-
1. Every Society shall, from time to time, fix at a general meeting the maximum liability it may incur in respect of loans or deposits whether from members or non-members.
2. The maximum liability fixed under sub regulation (1) shall be subject to the approval of the Commissioner, who may at any time reduce it.
3. No Society shall receive loans or deposits in excess of the maximum liability approved or fixed by the Commissioner.
And Whereas Bye Law No. 15 of the Palo Seco Credit Union Co-operative Society Limited specifies the manner in which deposits are received from members.
And Whereas Bye Law No. 27 (h) of the Palo Seco Credit Union Co-operative Society Limited specifies that one of the powers of the Annual General Meeting is to approve the Maximum Liability of the Society
Be it resolved that the Maximum Liability of Palo Seco Credit Union Co-operative Society Limited be increased to $30,000,000.00.
Resolution 5 – Amended Honoraria
Whereas the Society’s affairs are being effectively managed by the Board of Directors, Credit, Supervisory and other Committees.
Be it resolved that Honoraria of two hundred and thirty-three thousand dollars ($233,000.00), after statutory deductions for the period April 01, 2015 to March 31, 2016, be divided by twelve (12) and be distributed amongst Directors and Members of Committees, on a monthly basis, in accordance with the recommendations of the Board of Directors.
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PALO SECO CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
PALO SECO CREDIT UNION COOPERATIVE SOCIETY LTD. Erin Road Los Bajos Emortelle v9.00 868 649-5683 Run Date: 2015/03/20 012-501-ucp/000 Receipt & Payments 2014/01/01 - 2014/12/31 MOLLY@12:52:37 ---------------------------------------------------------------------------------------------------------- *** Consolidated *** RECEIPTS PAYMENTS ======== ======== 3200-55 INVESTMENT REVALUATION RESE 1,339,738.63 3100-01 SHARES 18,486,127.66 2100-05 FIP DEPOSIT 1,387,248.33 2100-01 ORDINARY DEPOSIT ACCOUNT 9,025,511.25 4100-02 INTEREST ON MORTGAGE LOANS 1,070,471.08 5200-20 BANK CHARGES 23,785.21 1200-02 MORTGAGE LOANS 2,210,875.24 2300-70 RETURNED CHEQUES 84,314.90 2100-01 ORDINARY DEPOSIT ACCOUNT 7,705,194.84 1200-01 PERSONAL LOANS 62,863,807.04 4100-05 INTEREST ON MBOS (VEHICLE) 1,206,685.87 1200-05 VEHICLE LOAN (MBOS) 7,629,004.16 1200-05 VEHICLE LOAN (MBOS) 3,565,275.15 5500-20 OFFICE EXPENSE 176,510.33 4100-01 INTEREST ON PERSONAL LOANS 8,024,688.97 2300-65 ACCRUED EXPENSES 196,093.97 1200-01 PERSONAL LOANS 20,767,754.36 2350-65 ACCRUED EXPENSES-GYM 23,985.19 3100-01 SHARES 38,360,262.60 2200-80 CREDIT UNION PAYMENTS 659,879.20 3200-30 ENTRANCE FEE 751.00 2300-35 UNPRESENTED CHEQUES 6,259,055.76 4200-80 NOMINATION FEES 748.00 2250-10 NIS PAYABLE - GYM 6,858.83 4200-20 RULEBOOK & PASSBOOK 749.00 5150-70 NATIONAL INSURANCE - GYM 13,717.66 2100-08 PAYMENT PROTECTOR 10,262.54 5500-25 TRANSPORTATION 13,882.50 1600-90 DUE FROM - TRINMAR LIMITED 635,682.00 5800-40 REFRESHMENT 34,710.50 1600-98 PAYROLL RECEIVEABLES 9,672,872.25 5550-16 OTHER-COST OF SALES 19,377.79 4100-40 DIVIDEND ON SHARE/BOND INVE 557,527.42 5500-15 INSURANCE - MONEY 15,670.50 2100-02 THRIFT INVESTMENT ACCOUNT 148,917.80 5500-14 INSURANCE - PUBLIC LIABILIT 1,537.00 1200-06 I.O.C 302,238.86 5500-13 INSURANCE - FIDELITY 3,206.50 4100-06 INTEREST ON INSTRUMENT OF C 287,118.15 1500-80 SUNDRIES DEBTORS 1,161,328.72 1200-03 SPECIAL COMPUTER LOANS 65,247.87 2100-05 FIP DEPOSIT 56,058.80 4100-03 INTEREST ON SPECIAL COMPUTE 3,307.25 2100-06 EMPLOYEES TIA 27,016.61 1600-70 DUE FROM - PETROTRIN 22,651,681.06 2200-95 BANK REMITTANCE 126,379.88 2300-35 UNPRESENTED CHEQUES 6,996,739.51 1200-03 SPECIAL COMPUTER LOANS 948,230.69 4200-50 SUNDRIES RECEIPTS 1,507,536.74 2200-90 INSURANCE PAYMENTS 1,453.20 4200-40 PHOTOCOPYING RECEIPTS 52.50 2200-70 ACCOUNTS PAYABLE-UNION DUES 6,714.00 2100-03 FIXED DEPOSIT INTEREST 550,640.27 2200-15 EMPLOYEES MEDICAL PLAN 6,943.00 2150-70 SUSPENSE/OTHER 1,331,360.78 5100-60 GROUP HEALTH PLAN 12,286.98 1600-93 DUE FROM - MINISTRY OF INDU 1,500.00 2200-65 EMPLOYEES PENSION PLAN 49,729.14 1600-15 DUE FROM - PUBLIC UTILITIES 8,905.31 5100-55 PENSION PLAN 75,280.66 1600-25 DUE FROM - WORKS AND TRANSP 36,726.20 2100-03 FIXED DEPOSIT INTEREST 19,486.35 1600-40 DUE FROM - LOCAL GOVERNMENT 29,525.60 2300-15 A/C PAYABLE - DECEASED MEMB 481,926.01 2300-98 OTHER SPECIAL HOLDING 87,870.20 5500-08 CLEANING & JANITORIAL SERVI 13,255.00 1600-80 DUE FROM - MINISTRY OF HEAL 267,670.03 1200-02 MORTGAGE LOANS 2,040,219.53 4100-75 OVERAGE / SHORTAGE 2,414.36 4100-75 OVERAGE / SHORTAGE 3,114.26 1600-94 DUE FROM - MINISTRY OF HOUS 400.00 5550-20 OFFICE EXPENSE 25,733.20 1600-68 DUE FROM - MIN PUB. ADMIN & 3,918.00 2200-40 HEALTH SURCHARGE 14,801.85 1600-64 DUE FROM - PLIPDECO 700.00 2200-30 PAYE 218,013.92 1600-75 DUE FROM - HALLIBURTON 14,996.55 5100-70 NATIONAL INSURANCE 218,084.96 1600-61 DUE/FR PENAL/DEBE REGIONAL 648.50 2200-10 NIS PAYABLE 109,042.48 4200-10 RENT INCOME 21,200.00 1600-93 DUE FROM - MINISTRY OF INDU 1,500.00 1600-45 DUE FROM - BOARD OF INLAND 4,786.20 5500-22 OTHER REPAIRS & MAINTENANCE 161,880.62 1600-76 DUE FROM-PIONEER CONSTRUCTI 200.00 1200-06 I.O.C 663,476.52 1600-65 DUE FROM - PSCU STAFF 20,994.00 2300-98 OTHER SPECIAL HOLDING 426,040.1 1600-50 DUE FROM - MINISTRY OF EDUC 169,914.42 5500-12 GROCERIES AND TOILETRIES 32,079.73 1600-67 DUE FROM - T&TEC 15,672.00 5500-16 OTHER 12,400.85 1600-87 DUE FROM - PORT AUTHORITY 441.00 2100-02 THRIFT INVESTMENT ACCOUNT 80,425.57 1600-35 DUE FROM - MIN OF LEGAL AFF 6,711.60 5100-90 EX GRATIS PAYMENT 9,000.00 1600-60 DUE FROM - SIPARIA REGIONAL 88,593.80 4200-50 SUNDRIES RECEIPTS 70,059.27 1600-91 DUE FROM - MINISTRY OF LABO 3,200.00 2300-97 DIB PAYABLE 18,652.95 1600-10 DUE FROM - JUDICIARY/MAGIST 16,282.00 2300-95 FIP PAYABLE 1,821,180.20 1600-89 DUE FROM - NATIONAL GAS COM 29,948.00 5550-22 OTHER REPAIRS & MAINTENANCE 51,746.86 1600-72 DUE FROM- ATLANTIC.L.G. CO. 18,000.00 5100-50 TRAINING AND DEVELOPMENT 46,508.37 1600-20 DUE FROM - NATIONAL SECURIT 56,426.60 5500-04 ADVERTISING 154,699.85 4200-90 OTHER 54,932.73 5500-26 POSTAGE 54,664.50 4100-30 FIXED DEPOSIT INTEREST 597,945.94 5550-12 GROCERIES AND TOILETRIES 5,037.23 1300-57 AIC FIN GRP 6.5% PREF SHARE 196,452.90 5500-21 PRINTING AND STATIONERY 96,068.70 1300-51 AIC FIN GRP CLASS D 5% PREF 99,178.08 5500-24 TELEPHONE 177,203.15 4100-10 SAVINGS ACCOUNT INTEREST 8,817.38 5600-55 M.T.S CONTRACT 395,862.80 4250-10 REGISTRATION FEE 9,200.00 5650-55 M.T.S CONTRACT-GYM 125,925.00 4250-20 MEMBERSHIP FEE 200,405.00 4200-10 RENT INCOME 8,500.00 4250-30 SALES-TOWEL,WATER,SPORT DRI 25,407.00 5500-11 DONATION 24,860.00
69
PALO SECO CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
5500-20 OFFICE EXPENSE 300.20 2200-50 SALARY CLEARING 303,311.16 1600-51 DUE FROM - TECU 15,285.00 5600-10 AUDIT FEES 8,000.00 2300-70 RETURNED CHEQUES 151,800.00 5900-20 FUMIGATION/PEST CONTROL 12,786.51 5500-16 OTHER 1,457.45 2100-30 MEMBERS' SPECIAL DEPOSIT 672,239.62 5500-18 MEETING AND CONFERENCES 1,800.00 5500-09 CREDIT UNION MONTH EXPENSES 73,065.99 5500-01 PRIOR YEAR ADJUSTMENTS 34,359.49 5900-50 BUILDING REPAIRS/MAINTENANC 32,100.00 1600-66 DUE FROM - TTPOST 19,796.00 5950-50 BUILDING REPAIRS/MAINTENANC 10,450.00 1600-55 DUE FROM - T & T DEFENCE FO 3,350.00 5800-10 CREDIT COMMITTEE ALLOWANCE 12,910.00 1600-79 DUE FROM-MINISTRY OF TOURIS 3,500.00 5600-20 LEGAL FEES 335,980.00 1600-85 DUE FROM - MINISTRY OF AGRI 1,100.00 5550-08 CLEANING & JANITORIAL SERVI 29,250.00 1500-80 SUNDRIES DEBTORS 140,000.00 5950-30 ELECTRICITY 35,500.46 4200-95 COMMISSION - F.I.P 31,331.52 5900-30 ELECTRICITY 61,150.82 5500-32 EDUCATION FUND EXPENSES 1,375.00 5950-40 WATER RATES 320.00 4200-45 SUPPLEMENTAL LOAN PROTECTIO 200,191.17 5550-24 TELEPHONE 8,109.90 5800-30 HONORARIUM 1,000.00 5950-20 FUMIGATION/PEST CONTROL 5,964.09 2300-15 A/C PAYABLE - DECEASED MEMB 1,881.68 2150-70 SUSPENSE/OTHER 421,860.87 5100-50 TRAINING AND DEVELOPMENT 500.00 1400-50 OFFICE FURNITURE & EQUIPMEN 87,136.00 5500-11 DONATION 1,100.00 5700-15 INCIDENTALS - LOSS 217,988.41 2200-50 SALARY CLEARING 1,639.16 5500-17 LEAGUE DUES 49,593.75 2300-10 SUNDRY CREDITORS 131.00 5500-05 AGM EXPENSES 104,472.45 5800-10 CREDIT COMMITTEE ALLOWANCE 740.00 3200-55 INVESTMENT REVALUATION RESE 512,434.39 5500-04 ADVERTISING 3,185.00 5600-30 CONSULTANT FEES 80,370.27 2200-95 BANK REMITTANCE 225.00 2300-10 SUNDRY CREDITORS 2,934.29 5800-20 SUPERVISORY COMMITTEE 225.00 5500-18 MEETING AND CONFERENCES 160,376.98 4100-70 GAIN/LOSS ON FOREIGN EXCHAN 13,018.21 5800-50 TRAVELLING 12,907.00 5800-30 HONORARIUM 195,008.34 5900-55 PREMISES MAINTENANCE-OFFICE 3,000.00 5900-40 WATER RATES 2,365.70 5100-96 EMPLOYEE GROUP LIFE INSURAN 32,886.00 1400-60 COMPUTER HARDWARE & SOFTWAR 32,415.27 5500-19 NEWSPAPER AND PERIODICALS 3,440.00 1400-15 BOARDROOM & FITNESS CENTER 104,634.99 5900-10 INSURANCE ON BUILDING & CON 46,391.44 2300-45 ACCOUNT PAYABLE - OTHER 21,884.12 5500-01 PRIOR YEAR ADJUSTMENTS 1,960.00 4100-30 FIXED DEPOSIT INTEREST 39,104.89 5100-45 UNIFORMS 42,269.00 5600-45 PROFESSIONAL FEES A.V.KNOWL 5,175.00 5500-32 EDUCATION FUND EXPENSES 182,552.70 1400-25 REMODELLING ADMIN OFFICE 1,727,270.90 5950-25 CONSULTANT FEES 1,250.00 5800-20 SUPERVISORY COMMITTEE 1,500.00 2100-20 INTEREST ON SPECIAL DEP PAY 8,323.99 5500-07 CHRISTMAS DINNER 34,245.02 4200-95 COMMISSION - F.I.P 7,930.91 5100-30 WORKMEN'S COMPENSATION 4,111.36 5550-21 PRINTING AND STATIONERY 357.85 5550-04 ADVERTISING 10,488.00 5800-66 OFFICERS GROUP LIFE INSURAN 1,941.00 5800-60 OTHER 32,912.50 5600-40 STIPEND 900.00 1300-68 ROYAL SKANDIA US DOLLARS 300,000.00 4100-70 GAIN/LOSS ON FOREIGN EXCHAN 20,552.22 ---------------- --------------- 133,090,902.35 121,705,991.64 ================ ================
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PALO SECO CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
*** Consolidated *** ACCOUNT OPENING BALANCES CLOSING BALANCES ======= ================================ ================ ================ 1100-10 CASH AT BANK 0.00 0.00 1100-15 TELLER ACCOUNT 1 0.00 0.00 1100-20 CASH IN TRANSIT 93,589.67 927,849.43 1100-25 TELLER ACCOUNT 2 0.00 0.00 1100-30 PAYROLL IN TRANSIT 0.00 0.00 1100-40 CASH IN HAND 281,134.33 106,415.92 1100-50 CASH IN HAND-GYM 12,626.86 18,090.86 1100-55 CASH IN TRANSIT-GYM 1,015.00 736.00 1130-01 REPUBLIC BANK 4,050,447.48 10,408,214.97 1130-02 ROYAL BANK 88.67 88.67 1130-03 RBTT CURRENT ACCOUNT 361,913.79 581,667.84 1130-04 FCB CURRENT ACCOUNT 0.00 1,048,420.00 1130-05 FIRST CITIZEN BANK-GYM 819,952.29 233,630.80 1140-10 SAVINGS ACCOUNT 0.00 0.00 1140-20 ROYAL US PLUS 223,583.44 53,459.71 1150-05 FIXED DEPOSIT - CLICO INSURANCE 28,501,138.86 28,501,138.86 1150-06 CLICO-CORE SERIES INVESTMENT-CSI 0.00 0.00 1150-07 CLICO INSURANCE 2,000,000.00 2,000,000.00 1150-10 FIXED DEPOSIT-ROYAL MER BANK 0.00 0.00 1150-15 FIXED DEPOSIT - FCB 0.00 0.00 1150-16 CMMB -0.00 -0.00 1150-20 FIXED DEPOSIT-RBTT / SIPARIA 0.00 0.00 1150-25 FIXED DEPOSIT-MARITIME FIDELITY 0.00 0.00 1150-30 FIXED DEPOSIT - REPUBLIC BANK 0.00 0.00 1150-35 FIXED DEPOSIT - SCOTIA BANK 0.00 0.00 1150-40 FIXED DEPOSITS- BANK OF COMMERCE 0.00 0.00 1150-41 FIXED DEPOSIT - FIRST NAT. C.U. 1,000,000.00 1,000,000.00 1150-45 FIXED DEPOSIT - CLICO INVESTMENT 0.00 0.00 1150-47 FIXED DEPOSIT-VENTURE CR. UNION 0.00 0.00 1150-50 POOL FUND { REPUBLIC BANK } 0.00 0.00 1150-55 FIXED DEPOSIT CR.UNION LEAGUE 0.00 0.00 1150-56 STABILISATION FIXED DEPOSIT 0.00 0.00 1150-57 FIXED DEPOSIT - C.F.F. 0.00 0.00 1150-58 CLICO POOL FUND INVESTMENT 0.00 0.00 1150-59 BRITISH AMERICAN INSURANCE CO -0.00 -0.00 1150-60 BRITISH AMERICAN-POOL BOND 0.00 0.00 1150-62 SAVINVEST US INVESTMENT INC FUND 486,000.00 510,647.39 1150-63 SAVINVEST STRUCTURED INV FUND 6,000,000.00 6,542,779.79 1150-64 AIC TT INCOME FUND-CLASS A(AM2A) 180,789.62 90,659.46 1150-65 AIC FINANCE LTD - TT$ 7,200,487.72 10,315,273.53 1150-66 AIC FINANCE LTD - US$ 0.00 0.00 1150-67 AIC FIN GRP GUARANTEED NOTE 3YRS 3,000,000.00 3,000,000.00 1150-68 AIC FINANCIAL GROUP -$TT T.NOTE 3,000,000.00 3,000,000.00 1150-69 AIC FINANCE LTD - US$ MCWTP #1-7 2,099,497.12 2,358,102.33 1150-70 KSBM GOV'T OF BARBADOS-FRB-US$ -0.00 -0.00 ------------ ------------ 59,312,264.85 70,697,175.56 ============ ============ *** Consolidated *** RECEIPTS & PAYMENTS SUMMARY OPENING BALANCES 59,312,264.85 + RECEIPTS 133,090,902.35 - PAYMENTS 121,705,991.64 = CLOSING BALANCES 70,697,175.56
71
Condolences are extended to the families who have lost loved ones in 2014.
DECEASED MEMBERS, 2014
1 Neil Cielto 15. Joyce Beharry
2. John Jules 16. Curtis Blunt
3. Semonies Nelson 17. Edmond Chinapoo
4. Vydol Sylvester 18. Harold Sampath
5. Jean Butan 19. Kenneth Maison
6. Bernice Dickson 20. Nicholas Gunness
7. Rohan Sookdai 21. Haroon Ali
8. Andrew Pajotte 22. Hilton Phillip
9. Isabella John 23. Anthony Wellington
10. Selwyn Simon 24. Myrna Marcus
11. Haimraj Bahadur 25. Joseph Vidal Harry
12. Joseph Bruce 26. Ethelin Stephenson
13 Helen Bristol 27. Joanan Thomas Archargee
14. Adustrius Billy 28. Ann Bernard
72
NOTES