ANNUAL REPORT
2016
63rd Annual General Meeting
VISION The Trintoc (Penal) Credit Union will be the preferred credit union providing maximum benefits to our members with heavy emphasis on transparency, accountability and equity in our relationships with all stakeholders.
MISSION In accordance with the Co-operative Societies Act chapter 81:03 of 1971 and our bye-laws, the mission of the Trintoc (Penal) Credit Union is to promote the holistic growth and development of our membership by rendering prudent financial management, continuous member education and sound advice and services which exceed expectations.
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The National Anthem Forged from the love of liberty In the fires of hope and prayer With boundless faith in our Destiny We solemnly declare Side by side we stand Islands of the blue Caribbean Sea This our native land We pledge our lives to thee Here every creed and race Find an equal place And may God bless our Nation Here every creed and race Find an equal place And may God bless our Nation
The Credit Union Prayer Lord, make me an instrument of thy peace Where there is hatred, let me sow love Where there is injury, pardon Where there is doubt, faith Where there is despair, hope Where there is darkness, light, and Where there is sadness, joy 0 Divine master grant that I may not So much seek to be consoled as to console To be understood as to understand To be loved as to love For it is in giving that we receive It is in pardoning that we are pardoned And it is in dying that we are born To eternal life
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ANNUAL REPORT
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63rd Annual General Meeting
Table of Contents Notice of AGM
4
Agenda
5
Standing Orders
6
Minutes of AGM 2016
7
The Office Staff
20
Board of Directors Report
21
Credit Committee Report
30
Supervisory Committee Report
33
Education Committee Report
35
Nominations Committee Report
40
Auditors Report
41
Statement of Financial Position
45
Statement of Comprehensive Income
46
Statement of Changes in Members’ Equity
47
Statement of Cash Flows
48
Statement of Receipts and Payments
49
Notes to the Financial Statements
50
Budget 2017
68
Resolutions
69
Products and Services
70
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Notice of the Annual General Meeting Notice is hereby given that the Sixty-Third (63rd) Annual General Meeting of the Trintoc (Penal) Credit Union Co-operative Society Limited will be held on: Date
:
Saturday 29th April, 2017
Time
:
3:00 pm
Venue
:
Gospel Deliverance Ministries Camp & Retreat Center
#106 Penal Quinam Road
Penal The main business of the meeting will be to: 1. Receive the Minutes of the 62nd Annual General Meeting 2. Receive reports for the Year 2016 as follows: a.
Board of Directors
b.
Credit Committee
c.
Supervisory Committee
d.
Nominations Committee
e. Auditors 3. Present the 2017 Budget 4. Propose Resolutions 5. Elect Board and Committee Members 6. Transact any other business Registration starts at 2:30 pm; annual brochures can be collected at our office from April 27th, 2017. For and on behalf of TRINTOC (PENAL) CREDIT UNION
CO-OPERATIVE SOCIETY LIMITED
SHARIDA ALI HON. SECRETARY Published on 14th April, 2017
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63rd Annual General Meeting
Agenda 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0
Call to Order Credential Report and Notice of the Annual General Meeting The National Anthem of Trinidad and Tobago The Credit Union Prayer HSE Advisory President’s Address Motion for Acceptance of the Standing Orders (to be taken as read) Motion for Acceptance of the 2017 Brochure (to be taken as read) Confirmation of Minutes of the 62nd Annual General Meeting held on April 23rd, 2016 and Business Arising
10.0
Adoption of Reports 10.1 Board of Directors 10.2 Credit Committee 10.3 Supervisory Committee 10.4 Education Committee 10.5 Nominations Committee 10.6 Auditors Report and Financial Statements for 2016
11.0 Budget Presentation 12.0 Resolutions 13.0 Election of Board and Committee Members 13.1
14.0 15.0 16.0 17.0 18.0
Supervisory Committee - Outgoing Mr. Camal Jagassar Ms. Adriana Vialva-Ralph Ms. Britney Johnson
13.2 Credit Committee
- Outgoing Mr. Peter W. David Mr. Rudolph Felix Mr. Kelvin Pustam Mr. Winston Samm Mr. Calvin Sargeant
13.3
- Outgoing Mr. Perry Jagdeo Mr. Ananias Johnson Mr. Imtiaz Mohamed
Board of Directors
Greetings from Guests Drawing of Door Prize Other Business Minute of Silence Vote of Thanks
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Standing Orders 1.
(a) (b)
A member shall stand when addressing the Chair. Speeches shall be clear and relevant to the subject before the Meeting.
2.
A member shall only address the meeting when called upon by the Chairman to do so, after which, the members shall immediately be seated.
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) Rising to object or explain (with the permission of the Chair).
5.
No speeches are to be made after the “Question” has been put and carried or negated.
6.
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 Order”).
7. (a) A Member shall not call another member “to order” but may draw the attention of the Chair to the “Breach of Order”.
(b) On no account can a member call the chair to “order”.
8.
Only one amendment shall be before the meeting at one and the same time.
9.
When a motion is withdrawn, any amendments to it fail.
10.
The Chairman shall have a right to a “casting vote”.
11.
If there is an equality of voting on an amendment, and if the Chairman does not exercise his casting vote, the amendment is lost.
12.
The Chairman shall make provision for protection from vilification (personal abuse).
13.
No member shall impute improper motives against another member.
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2016
63rd Annual General Meeting
Minutes of the 62nd Annual General Meeting held at the Penal Central Community Centre on Saturday 23rd April, 2016 1.0
CALL TO ORDER The meeting was called to order by the President/Chairperson, Mr. I. Mohamed at 3:05 p.m.
2.0
CREDENTIAL REPORT AND NOTICE OF THE ANNUAL GENERAL MEETING The Chairperson advised that at 3:05 p.m., there were sixty-five (65) members present and, therefore, the meeting was properly constituted. The Honorary Secretary, Ms. Sharida Ali, was invited by the President to read to the members present the Notice of the Annual General Meeting.
Present were members of the Board of Directors, Credit Committee, Supervisory Committee, Education Committee, seventeen (17) guests and three hundred and fourteen (314) members.
3.0
THE NATIONAL ANTHEM OF TRINIDAD AND TOBAGO The National Anthem was played.
4.0
CREDIT UNION PRAYER The Credit Union Prayer was recited.
5.0
HSE ADVISORY Mr. P. Jagdeo advised on the housekeeping aspects, safety procedures and muster point of the meeting’s venue.
6.0
PRESIDENT’S ADDRESS The President, in his opening address, extended a cordial welcome to all members, officers and special guests to the 62nd Annual General Meeting.
Following is a text of his discourse:“Fellow Co-operators – Do you know that every two minutes the energy reaching the earth from the sun
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is equivalent to the annual energy used by the entire world?
Distinguished Guests, Good Afternoon,
I stand here today to give my maiden address as the President of the Trintoc (Penal) Credit Union Cooperative Society Limited (TPCU) to you, the members.
My task this afternoon is to report on the performance of the Credit Union for the financial year 2015 and to present our plans for future development and sustainability.
Firstly, I must give thanks to Almighty God for giving me the opportunity to stand here at the helm of this blessed organization and to work with an exceptional and competent Management Committee (Board of Directors) and Staff.
OVERVIEW OF WORLD ECONOMY The IMF projection on the world economy is rather disappointing. The forecast for the rate of growth for 2016/2017 has been reduced to 3.4% and 3.6%. The growth projection for advanced economies is 2.1% only, while for emerging market is 4%. The growth rate for the world trade is assumed to slow down by 0.7%. Three attributing factors are China slow down, U.S. Monetary policy to raise interest rate and the continued crash in commodity prices.
Let us reflect at 2015 Year in Review • The TPCU faced some challenging times within the Management Committee (Board of Directors). However, we were able to rise above all of the difficulties presented to us during the year.
8
•
Our Vice President, Mr. Deonarine Jaggernauth, tendered his resignation in January 2015 to take up another position and Mr. Eric Forde was given the opportunity to serve in the capacity of Vice President.
•
Our former President, Mrs. Sandra D. Kelly, submitted her resignation in July, 2015 due to ill health and subsequently passed away on August 10th, 2015; two (2) weeks later.
•
In August 2015, Mr. Seunarine Surajbally was voted in as the interim President of the Organization. However, in September 2015, he resigned for personal reasons.
•
The mantle was then passed over to me to lead this dynamic organization in September 2015 following the resignation of Mr. Surajbally.
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•
In September 2015, our IT Technician, Mr. Adrian Mohammed tendered his resignation due to health issues and was temporarily replaced by an additional employee who also departed the organization to pursue her goals.
In spite of the many challenges we faced, the business of the organization continued to prosper. •
During 2015, our asset base increased by $20 million (9.8%).
•
The membership increased by one hundred and ten (110) new members (4.3%). We anticipated approximately one hundred and fifty (150) new members joining the Credit Union in 2015, however, that target was not accomplished. This could be due to Petrotrin’s reduction in hiring new employees. I believe that, in the future, we may have to open our bond to accept members external of the Petrotrin family.
•
Our total loans portfolio increased by $14 million (14.5%) and the total loans granted during the year was just over $51 million. Our target was $48 million and this was achieved by offering reduced interest rates on mortgages, vehicle and fully secured loans. During the last quarter of 2015, we saw a great demand for short term and vehicle loans.
•
As with any prosperous organization, when business increases, there is the possibility that the delinquency will increase, however, while our delinquency ratio has fallen to 1.75%, our provision for bad and doubtful debts was increased to $1.9 million. This is, nevertheless, an acceptable ratio as the benchmark for the Pearls Ratio is 5%.
•
Members’ shares increased by $17 million (10.0%). This was made possible by you – the loyal members, who have chosen us to be your preferred financial institution.
•
Despite the economic downturn, we have realized a net surplus of $9.3 million for this fiscal year 2015.
During the past year, numerous activities were carried out by the Education Committee including: • • • •
Thanksgiving Service in January 2015 Walk-a-Thon in March 2015 Defensive Driving Course Credit Union Day Celebration and many more
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Those who attended, found it to be very productive, informative and enjoyable. However, those who did not attend, missed out on a remarkable opportunity to socialize and interact with other members of the Credit Union. •
In 2015, TPCU became the proud sponsor of Shiva Boys’ College Junior Co-operative Entrepreneurship Programme (JCEP) and as a member of our Society. We take this opportunity to welcome them and wish them all success. TPCU also embarked on a Youth Arm and it is in the embryo stage; presently, we have seven (7) youth members who were invited to attend the Education Committee Meeting under the guidance of Mrs. Tahara Pustam.
•
The Co-operative Credit Union League of Trinidad and Tobago, in October 2015, hosted their awards function at Chaguanas, where the Trintoc (Penal) Credit Union captured the following awards: - HR Development (Medium) - Best Financial Performance (Medium) - Most Outstanding Credit Union (Overall)
This was made possible by the dedicated staff, past President – Mrs. Sandra D. Kelly and statutory committee members.
We, at the Trintoc (Penal) Credit Union, would also like to dedicate our great achievement to Mrs. Sandra D. Kelly (May Her Soul Rest In Peace).
10
•
In the latter half of 2015, while construction of a Fire Station commenced next to the TPCU’s Office, many of the members were of the impression that our building which was long overdue, had commenced. Although this is far from the truth, in the last three (3) years or so, Petrotrin vested ten (10) acres of land to UDECOTT, part of which represented a proposed site for our Credit Union. The Board has since set up a Committee to communicate with UDECOTT in relation to the Credit Union’s new proposed location.
•
On 12th April, 2016, we received communication from UDECOTT’s Senior Project Manager that UDECOTT sourced a Surveyor to commence pin-pointing the Credit Union’s boundaries as proposed. We are hoping to see the light at the end of the tunnel in the near future, regarding this matter.
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63rd Annual General Meeting
•
You will notice that the credit union will be requiring more information from you. We are asking that you comply with the office staff as these changes are now necessary for TPCU to report to external bodies, for example:- FIU, BIR, Central Statistical Office (CSO) and our Auditors. - - - - - - -
Financial Intelligence Unit Requirement Anti-Money Laundering Combating Financing Terrorism Source of Funds Application Form Deposit Policy Green Fund Levy which the Credit Union now pays
In conclusion, I want you to ponder over this statement made by the President of the Republic of Trinidad and Tobago – Credit Unions can push the Economic Policy for the Country. Thank You.”
7.0
MOTION FOR ACCEPTANCE OF THE STANDING ORDERS The motion was moved by Mr. S. Grant and adopted by Mr. P. David. The House agreed.
8.0
MOTION FOR ACCEPTANCE OF THE 2016 BROCHURE The President asked that the entire brochure be taken as read. Mr. W. Samm moved the motion and this was adopted by Mr. H. Ali. The House agreed.
9.0
CONFIRMATION OF THE MINUTES OF THE 61ST ANNUAL GENERAL MEETING HELD ON SATURDAY, 2015 MAY 09 The Minutes was confirmed by Ms. S. Felix and seconded by Mr. S. Grant.
9.1 General Meeting Omissions and Corrections Nil.
9.2 Business Arising out of Minutes Nil.
10.0 ADOPTION OF REPORTS 10.1 Board of Directors’ Report This was moved by Mr. S. Grant and seconded by Mr. A. Kelly. Matters Arising Nil. 10.2 Credit Committee Report This was moved by Ms. S. Felix and seconded by Mr. S. Grant.
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Matters Arising Mr. A. Dyer enquired about the reason for the increase in the bad and doubtful debts. Mr. N. Johnson stated that using the PEARLS recommendation, loans that are less than one (1) year and over one (1) year in debt must be provided for by 35% and 100% respectively.
Mr. C. Sargeant responded that bad and doubtful debts would include mortgage loans – value of the loans and ordinary loans which were reasonable. Many of these loans go through the Commissioner for review and a process is followed.
Mr. Dyer also asked whether ordinary loans are of a particular category. Mr. Sargeant responded that they are character loans, vehicle loans, mortgage loans and Christmas loans. To date, with regard to one particular mortgage loan, TPCU is going through a recovery process. In respect of an ordinary loan/character loan, there is a Lending Policy above the shares.
10.3 Supervisory Committee Report This was moved by Mr. H. Johnson and seconded by Mr. F. Callender.
Matters Arising Nil.
10.4 Education Committee Report This was moved by Mr. K. Pustam and seconded by Mr. H. Boodookay. Matters Arising
Ms. S. Felix said there is a lack of advertisement of the activities put on by the Education Committee. The programmes held during the July – August vacation period are not advertised on the Facebook Page nor the Website. She suggested that, in future, the Education Committee should use these media to advertise its activities.
Mrs. T. Pustam advised that a Committee has been set up to review TPCU’s Facebook Page. The Page should be “up and running” in a month’s time and all fees have already been paid to the service provider.
Ms. S. Felix also suggested that the Youth Arm should be in the 18 – 30 age group.
10.5 Nominations Committee Report This was moved by Mr. K. Pustam and seconded by Mr. G. Smith.
Matters Arising Nil.
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ANNUAL REPORT
2016
63rd Annual General Meeting
10.6 Auditor’s Report and Financial Statements as at December 31st, 2015 This was moved by Mr. S. Grant and seconded by Mr. C. Sargeant.
A representative from the Auditing Firm, Maharaj Mohammed & Co., Mr. Mohan Ramnath, read the Independent Auditor’s Report.
The acceptance of the Auditor’s Report was moved by Mr. K. Pustam and seconded by Mr. G. Smith.
Matters Arising Nil
The Treasurer then explained to the membership the Financial Statements as at December 31st, 2015.
This was moved by Ms. S. Felix and seconded by Mr. K. Pustam.
Matters Arising On page 41 of the brochure, Mr. H. Ali enquired on the following figures under “Provision for doubtful debts”: 2015 2014 $390,039 $90,950 Mr. N. Johnson explained that the majority of the loans were ordinary loans and these loans go through a process with the Commissioner. On page 44, Mr. A. Dyer noticed a drop in Salary: 2015 2014 $725,772 $743,958 Mr. N. Johnson gave a lengthy explanation on the General Expense. Mr. A. Dyer also asked about the Legal and Bailiff Fees: 2015 2014 $29,000 $119,300 Mr. N. Johnson said that the Legal Fees could be TPCU’s retainer fees.
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Mr. A. Dyer continued with the Bank Charges: 2015 2014 $139,774 $6,269
Mr. N. Johnson advised that the Investment portfolio increased.
Mr. A. Dyer also sought an explanation on Staff pension and NIS: 2015 2014 $232,633 $100,374
Mr. N. Johnson said that there was an increase in NIS and salary.
Mr. A. Dyer enquired on Tokens: 2015 2014 - $6,889
Mr. N. Johnson replied that TPCU did not give out any Christmas tokens for 2015.
11.0 PROPOSED BUDGET 2016 Mr. N. Johnson, Treasurer, presented the 2016 budget.
This was moved by Mr. P. David and adopted by Mrs. M. Johnson.
Matters Arising On Page 62, Mr. A. Dyer enquired on the provision for bad debt. Mr. N. Johnson said that there were huge delinquent loans in the Doubtful Debts and that $300,000.00 is provision for loans that TPCU may be unable to collect.
Ms. M. Rodriguez asked why there was no allocation for the Death Benefit Payment. Mr. N. Johnson advised that CUNA now handles the Death Benefit Payment which is $24,000.00.
Mr. A. Felix queried the Building Maintenance of $80,000. Mr. N. Johnson said that the cost of cleaning was included which involved a one-off payment of settlement with NIS with regard to the Janitor at TPCU.
12.0 RESOLUTIONS The President read the proposed resolutions:
Resolution 1 – Appointment of Auditors Whereas the Commissioner for Co-operative Development has drawn up a list of approved Auditors for the accounts of Co-operative Societies in accordance with Section 51 of the Co-operative Societies Act and Regulations thereof;
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63rd Annual General Meeting
And whereas Bye-Law 22 (k) of the Trintoc (Penal) 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 Maharaj Mohammed and Co. be appointed Auditors of the Trintoc (Penal) Credit Union Co-operative Society Limited for the financial year ending December 31st 2016. This was seconded by Mr. S. Grant and approved by the membership.
Resolution 2 – Distribution of Surplus Whereas the Credit Union has realized a net surplus for the financial year ended December 31st 2015; and whereas Bye-law 12 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 4.5% be declared on members’ shares as at December 31st 2015 and credited to their share accounts;
And be it further resolved that any account which is in arrears, the said sum be credited to outstanding loan and interest.
This was seconded by Mr. H. Johnson and approved by the membership.
Resolution 3 – Maximum Liability Whereas Bye-Law 22 (i) of the Society states that the Annual General Meeting can set the maximum liability of the Society:
Be it resolved that the maximum liability of the Society be set at Ten Million TT Dollars ($10,000,000.00).
This was seconded by Mr. K. Pustam and approved by the membership.
Resolution 4 – Building Fund Whereas Bye-Law 12 (g) of the Society states the balance of the net surplus may be used at the discretion of the General Meeting for the constitution of a building fund:
Be it resolved that $240,000.00 be transferred from the surplus to this building fund which represents a portion of the surplus for 2015.
This was seconded by Mr. C. Sargeant and approved by the membership.
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13.0 ELECTION OF BOARD AND COMMITTEE MEMBERS At this stage, Mrs. M. Santlal-Phagoo, Co-operative Officer, Co-operative Development Division was asked by the Chairperson to conduct the elections. All outgoing positions were declared vacant.
Mrs. Santlal-Phagoo reminded members that election of officers in any organization was very important and that before nominating a member to serve on any Committee, that member should be closely examined. Further, any member who served on the Supervisory Committee for three (3) consecutive years would not be eligible for re-election on the Supervisory Committee.
At 4:59 p.m. – 307 members were present for the voting process.
Election results were as follows:
13.1 Supervisory Committee Names No. of Votes Adriana Vialva-Ralph 154 Nominated by : Wazir Khan Seconded by : Ananias Johnson Camal Jagassar 146 Via the Nominations Committee Britney Johnson 139 Nominated by : Curland Christopher Seconded by : Keisha Felix Kimberly Pustam 117 (1st Alternate) Nominated by : Dave Lalchan Seconded by : Kelvin Pustam
Anna-Marie Whyte Nominated by : Julian Edwards Seconded by : Helen Burke-David
58 (2nd Alternate)
Mr. K. Pustam moved that nominations cease. 13.2 Credit Committee Names No. of Votes Winston Samm 182 Via the Nominations Committee Calvin Sargeant 182 Via the Nominations Committee
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63rd Annual General Meeting
Peter W. David 173 Via the Nominations Committee Rudolph Felix 171 Via the Nominations Committee Kelvin Pustam 157 Via the Nominations Committee
Haroon Ali Nominated by: Imtiaz Mohamed Seconded by: Frankie Samaroo
Mr. S. Grant moved that nominations cease.
80 (1st Alternate)
13.3 Board of Directors Names No. of Votes Eric Forde 124 Via the Nominations Committee Claudette Green-Lewis 86 Nominated by : Joseph Lewis Seconded by : Robert Singh Seunarine Surajbally 80 Nominated by : Eric Forde Seconded by : Kelvin Pustam Stacy Felix-Jacob 76 (1st Alternate) Nominated by : Ananias Johnson Seconded by : Stephanie Felix
Pearl Lewis-Browne Via the Nominations Committee
75 (2nd Alternate)
Sanatan Roop Persad 52 Via the Nominations Committee Christina Bahadoor-Hosein 48 Nominated by : Tahara Pustam Seconded by : Joy Antoine Wazir Khan 39 Nominated by : Aadam Khan Seconded by : Valentine Baptiste
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Omar Maraj 29 Via the Nominations Committee Mr. K. Pustam moved that nominations cease.
The Chairperson thanked Mrs. Santlal-Phagoo and her team for conducting the elections and congratulated the elected members.
Voting was carried out by ballots which were destroyed following a motion moved by Mr. W. Samm and seconded by Mr. S. Grant.
14.0 GREETINGS FROM GUESTS Mrs. Diane Joseph, Chief Operating Officer of the Co-operative Credit Union League brought greetings as well as Messrs. Simon Gowrie of CUNA Caribbean Insurance Society, Aldwin Ferguson Jr. of Palo Seco Credit Union, W. Guadeloupe of Antilles Employees’ Credit Union, Ms. Ann Tittle of the South West Regional Chapter and Mrs. Marsha SantlalPhagoo of the Co-operative Development Division. 15.0 DOOR PRIZE The following door prizes were drawn and $500.00 each will be credited to the Winners’ respective share accounts ~
Drawn By Winner Arcia Abdool Skye Ramnansingh #157 Tricia Lewis Britney Johnson #258 Hayden Louison Nikada Khan #140
16.0 OTHER BUSINESS` 16.1 Mrs. M. Johnson enquired why one must wait three (3) months to withdraw from his/her shares or otherwise pay a penalty. The President advised that this is in accordance with TPCU’s Bye-Laws. There is also a deposit account facility in TPCU which a member could quickly utilize for personal use.
She also suggested that the Calendar of Events for the whole year should be made available to the membership if participation is to be encouraged. With regard to the Walk-a-Thon, Mr. I. Mohamed advised that previously, it was held on Palm Sunday but that was since moved to the Sunday before Palm Sunday.
16.2 With regard to “Property maintenance, land rent and facilities” on page 60 in the brochure, Ms. K. Lewis enquired on the following: 2015 $171,828
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2014 $75,382
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63rd Annual General Meeting
Mr. I. Mohamed gave an explanation and clarified the matter. He said that NIS back-payments were paid for the Janitor who is now on contract. With regard to property maintenance, a Contractor cuts the grass around the building. 16.3 Mr. I. Mohamed said that TPCU’s Building Fund has now started with $240,000. The Notice for AGM 2016 was put in the Newspapers which also stated that members should collect their brochures from TPCU’s Office. 16.4 The President also noted that a Minute of silence was omitted at the beginning of the programme and this would be done before the Vote of Thanks. 16.5 Ms. Mary La Toya Johnson sought clarification of Bank charges on Page 44 in the brochure: 2015 2014 $139,774 $6,269
The President advised that the Investment portfolio increased.
17.0 MINUTE OF SILENCE A minute of silence was observed for those members who passed away. 18.0 VOTE OF THANKS The vote of thanks was moved by Mr. Perry Jagdeo. There being no further business for discussion, the Chairperson thanked the members for attending and declared the meeting closed at 7:00 p.m. Respectfully submitted
Sharida Ali Hon. Secretary
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MANAGER
ASSISTANT MANAGER
The OfямБce Staff
Mrs. Sharida Gaffar-Ramrattan
LOANS OFFICER
CUSTOMER SERVICE REP.
Mrs. Nadraka Persad
Mrs. Peaches Francis-Mc Nish
20
Mrs. Ann Marie Lee-Pulchan
TEMPORARY CLERK
CUSTOMER SERVICE REP.
Ms. Lazina Hosein
AGM 2017
Mr. Rawle Kanju
ANNUAL REPORT
2016
Board of Directors
Board Of Directors
SECRETARY
VICE PRESIDENT
PRESIDENT
63rd Annual General Meeting
Ms. Sharida Ali
DIRECTOR
ASSISTANT SECRETARY
TREASURER
Mr. Imtiaz Mohamed
Mr. Eric Forde
DIRECTOR
DIRECTOR
DIRECTOR
Mrs. Claudette Green-Lewis
Dr. Godfrey Ransome
Mr. Seunarine Surajbally
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Board of Directors Report Distinguished Guests, Fellow Co-operators, Members; the Board of Directors is pleased to present to the 63rd Annual General Meeting the report on its stewardship for the period, January to December 2016. The Board of Directors consists of the following members: Imtiaz Mohamed Perry Jagdeo Sharida Ali Neal Johnson Claudette Green-Lewis Eric Forde Ananias Johnson Godfrey Ransome Sanatan Roop Persad Seunarine Surajbally
- - - - - - - - - -
President Vice President Secretary Treasurer Assistant Secretary (from 2016 April 23) Director Director Director Director (until 2016 April 23) Director
Board Attendance Record The Board of Directors held twelve (12) Statutory Board Meetings, fifteen (15) Special Meetings and four (4) All Officers’ Meetings for the period. Statutory Meetings
Special Meetings
All Officers’ Meetings
Excused
Imtiaz Mohamed
11
14
4
2
Perry Jagdeo
7
10
3
11
Sharida Ali
12
13
4
2
Neal Johnson
12
13
3
3
Claudette Green-Lewis (from 2016 April 23)
7
11
2
3
Eric Forde
11
13
3
4
Ananias Johnson
12
14
4
1
Godfrey Ransome
11
14
2
4
Sanatan Roop Persad (until 2016 April 23)
4
2
2
-
Seunarine Surajbally
12
14
4
1
Director
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1.0 INTRODUCTION The Trintoc (Penal) Credit Union continued to deliver a good financial performance for the fiscal year 2016. Profitability increased despite the economic downturn and the subsequent decline in membership borrowing. In 2016, net revenue increased by approximately $2 million (from $9.4 million in 2015 to $11.4 million in 2016). Moreover, overall expenditure was reduced by 7% (from $4.3 million in 2015 to $4 million in 2016). This was achieved through prudent financial management and careful monitoring of all expenditure. During the year, the Co-operative Credit Union League of Trinidad and Tobago (CCULTT) has recognized the Trintoc (Penal) Credit Union for two consecutive years on its outstanding performance in the mediumsized credit unions in the following three (3) categories for the financial year 2015:• • •
HR Development (Medium) Best Financial Performance (Medium) Most Outstanding Credit Union (Overall)
We applaud the membership for selecting our credit union as their preferred choice of financial institution, the staff and committee members for their dedicated work and service in assisting us to receive these awards. Our work starts and ends with the member as we continue to move forward hand in hand. 2.0 FINANCIAL HIGHLIGHTS At the end of 2016, the total assets stood at $246 million representing an increase of 10.8% over the previous year’s figure of $222 million. The membership grew by 108 members to 2,760 compared to 2,652 for 2015. Loans to our members at the end of the year stood at $119 million after provision for doubtful debts. This represents an overall increase in the loan portfolio as we continue to grow steadily. In 2016, revenue from loans increased by about $1.1 million and investment income by $0.7 million. While the Trintoc (Penal) Credit Union is focused on increasing revenue, close attention is also paid to keeping our operating expenses under control. Our main emphasis is to lend quality loans with beneficial returns and to guarantee that the members’ funds are safeguarded. We continue to ensure that the credit union is in compliance with the Financial Intelligence Act (FIA) by carrying out the following:• • •
Retroactive due diligence on members personal information Update of the source of funds document Completed external audit review
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PROVEN PAST, FUTURE DRIVEN
In 2016, we initiated the first allocation of $240,000 towards the building fund, which was passed at the last annual general meeting. We have made some headway into acquiring land to construct our very own credit union office and are currently working with PETROTRIN and UDECOTT to acquire the necessary consent from the Local Authority to proceed with soil analysis. Performance Comparative for the period 2012 – 2016 2012 $’000
2013 $’000
2014 $’000
2015 $’000
2016 $’000
168,254
185,992
201,855
221,562
245,821
9,202
10,020
10,858
11,795
12,934
Members’ Shares
141,845
152,995
169,138
186,020
203,449
Loan Balances
85,854
87,283
95,213
108,898
119,463
Investment
52,556
74,555
78,051
87,937
103,593
Expenses
2,992
3,439
3,716
4,322
4,006
Income
10,184
11,612
12,087
13,662
15,382
Item
2012
2013
2014
2015
2016
Membership
2,331
2,442
2,542
2,652
2,760
Items Total Assets Reserve Fund
Reserve Fund 2012-2016
250
15
200
12 $Millions
$Millions
Total Assets 2012-2016
150 100
6
50
0
9
3
2012
2013
2014
2015
2016
$168
$186
$202
$222
$246
Total Assets
24
0
Reserve Fund
AGM 2017
2012
2013
2014
2015
2016
$9
$10
$11
$12
$13
ANNUAL REPORT
2016
63rd Annual General Meeting
Members Shares 2012-2016
Loan Balances 2012-2016
250
120 100 $Millions
$Millions
200 150 100
80 60 40
50
20
0
2012
2013
2014
2015
2016
$142
$153
$169
$186
$203
Members Shares
0 Loan Balances
Investments 2012-2016
2015
2016
$86
$87
$95
$109
$119
4
80
$Millions
$Millions
2014
5
100
60
3 2
40
1
20
Investments
2013
Expenses 2012-2016
120
0
2012
2012
2013
2014
2015
2016
$53
$75
$78
$88
$104
0
Expenses
2012
2013
2014
2015
2016
$2.99
$3.40
$3.70
$4.30
$4.00
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PROVEN PAST, FUTURE DRIVEN
Income 2012-2016
Growth in Membership 2012-2016
15
3000 2500 $Millions
$Millions
12 9 6
1500 1000
3 0
2000
500 2012
2013
2014
2015
2016
$10
$12
$12
$14
$15
Income
0
2012
2013
2014
2015
2016
2,331
2,442
2,542
2,652
2,760
Growth in Membership
3.0 DIVIDEND The Board of Directors proposes a dividend of 4.5% for ratification by members at this Annual General Meeting for the financial year ended December 31, 2016. 4.0 MEMBERSHIP Membership as at 1st January, 2016 2652 New members joined in 2016 116 Deaths 8 Resignations - nil Membership as at 31st December, 2016 2760 5.0 CONDOLENCES We offer heartfelt sympathy to the families of our departed members who have loyally contributed to Trintoc (Penal) Credit Union’s success over the years. • Kenneth Beatrice • Radhay Lutchman • Gregory Elbourne • Vindra Doone • Katie Soogrim
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63rd Annual General Meeting
• • • •
Wayne Price Devanand Soodeen Simon Seerajh Harold Jagdeo (past Board Member of TPCU)
6.0 CUNA CUNA Caribbean Insurance Society remains the primary insurance provider for our credit union and as such our professional relations remain intact. 7.0
DELINQUENCY CONTROL AND LOAN COLLECTION
Delinquent loans stood at $2,361,383 or 1.94% of our total loans for 2016; this represents an increase in bad debts for 2016 of $420,462 which is well within the Pearls Ration of 5%. Recovery efforts continue to be vigorously pursued by our Delinquent Loans Committee, office staff, and ultimately through the Commissioner for Co-operative Development. 2012
2013
2014
2015
Loan Portfolio
$ 87130,111
$ 88772,478
$ 96764,194
$ 110838,637
$ 121824,117
Provision for bad debts
$ 1276,147
$ 1489,932
$ 1550,882
$
$
1.49
1.71
1.6
Items
Delinquency %
2016
1940,922
2361,383
1.75
1.94
Performing and non-performing loans 1.9%
Performing Loans 98.1%
8.0
Non-Performing Loans
COMMUNITY CONTRIBUTIONS The Trintoc (Penal) Credit Union has continued to remain dedicated to charitable causes within the community and its immediate environs.
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PROVEN PAST, FUTURE DRIVEN
9.0 TRAINING AND DEVELOPMENT This Credit Union continues to invest in educating its staff and officers through their participation in seminars, training programmes and short courses which are conducted in-house or held by the Cooperative Credit Union League, the South West Regional Chapter and other external organizations. Officers and staff members also participated in seminars hosted by the Co-operative Credit Union League of Trinidad and Tobago including:• • • • •
AML/CFT Annual Training SAT/STR Reporting Workshop Fundamentals of Taxation Internal Audit Effects of Bribery, Fraud and Complacency
10.0 MANAGEMENT SYSTEMS
10.1 EMORTELLE (Credit Union Management Information System) The office staff continues to use the Emortelle system and it is supported by the software developer, Micro Software Designs Limited as required.
10.2 BYE-LAWS The Board of Directors is currently undertaking a comprehensive review of the bye-laws with the aim of seeking membership approval during 2017.
10.3 FINANCIAL INTELLIGENCE UNIT (FIU) TRAINING The Co-operative Credit Union League of Trinidad and Tobago was contracted by the Board to train the Credit Union’s officers and employees in Anti- Money Laundering (AML) procedures. The Credit Union’s Compliance Programme was also updated and submitted to the Financial Intelligence Unit.
10.4 ACH FACILITY This facility is now being offered at our Credit Union’s office. Members can request that their loans, deposit and shares withdrawals be sent to their bank account. For more information you can contact our office.
11.0 AUDITOR In keeping with our procedure, we hereby recommend to this House, the appointment of Maharaj Mohammed and Company Chartered Accountants, as Auditor for year ending December 31, 2017.
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ANNUAL REPORT
2016
63rd Annual General Meeting
12.0 ACKNOWLEDGEMENT The Board of Directors extends sincerest thanks to the Management of Petrotrin for the use of their building and fixtures. Our thanks as well, to the dedicated and hard-working officers, committee members and staff of the Trintoc (Penal) Credit Union for providing efficient and timely service to you the membership. We highly appreciate their efforts which remain and will continue to be a key factor in the development and stability of our Credit Union. For and on behalf of The Board of Directors
Sharida Ali Hon. Secretary
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PROVEN PAST, FUTURE DRIVEN
CHAIRMAN
SECRETARY
Credit Committee
Mr. Calvin Sargeant
MEMBER
Mr. Winston Samm
MEMBER
MEMBER
Mr. Peter W. David
Mr. Rudolph Felix
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ANNUAL REPORT
2016
63rd Annual General Meeting
Credit Committee Report The Credit Committee is pleased to report on its Loan Performance for period January to December 2016. The Committee comprises the following members:Winston Samm Calvin Sargeant Peter W. David Rudolph Felix Kelvin Pustam
- - - - -
Chairman Secretary Member Member Member
During the period under review, the Credit Committee held fifty-two (52) weekly meetings and was invited to attend three (3) Special Meetings and four (4) All Officers’ meetings. Attendances were as follows:Regular Meetings
Special Meetings
All Officers’ Meetings
Winston Samm
52
3
4
-
Calvin Sargeant
52
3
3
1
Rudolph Felix
52
3
4
-
Peter W. David
50
2
4
3
Kelvin Pustam
51
1
4
3
Name
Excused
A total of 1,657 loans amounting to $46,972,540.95 were granted. This total represented an 8.6% decrease in loans granted, when compared to $51,379,348.22 in 2015. This decline was anticipated due to the downturn in our economy. Members were observed borrowing loans of a lower value in three (3) main areas: 1) Business/Investments 2) Property/Repairs/Furnishings and 3) Vehicle & Vehicle Repairs Initiatives to motivate borrowing with lower interest rates were introduced such as Fully Secured Loans in May-August 2016, Vacation Loans in June-September 2016, Mortgage & Vehicle Loans in April-September 2016, Christmas and Carnival Loans in October 2016 – February 2017 and Share Builder Loans in October 2016 to current. These initiatives were well received by members as illustrated by an increase in members borrowing, from 1488 loans taken in 2015, to 1657 loans taken in 2016. The two largest categories of loans as shown on the pie chart, continue to be Vehicle & Vehicle Repairs and Property Acquisition which represent 24% and 33% of the total respectively. The Credit Committee has been very active during the year in review and has been meeting with members from time to time giving guidance in securing loans. Site visits were also carried out on homes under construction to ensure that loans borrowed were used for the purpose granted.
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PROVEN PAST, FUTURE DRIVEN
The Committee would like to encourage you, our members, especially our net savers, to make use of the loan facilities available at our Credit Union. Our success depends on you. We, the members of the Credit Committee, wish to thank the Board of Directors, Officers of the Supervisory Committee, Education Committee and Office Staff for their support and guidance during the past year. We would especially like to thank you, the members of Trintoc (Penal) Credit Union, for your confidence in electing us to serve you and look forward for your continued support in the upcoming term. COMPARISON OF LOANS DISBURSED FOR PERIOD JANUARY - DECEMBER 2015 & 2016 Statistical Data Related to Loans TOTAL $ (2015)
NO. OF LOANS (2015)
TOTAL $ (2016)
NO. OF LOANS (2016)
Business/Investment
4,646,886.35
51
3,655,554.06
72
Debt Consolidation/Legal
3,766,850.26
76
3,215,584.18
68
PURPOSE OF LOAN
Education/Computer
1,006,051.00
77
1,680,600.00
97
Property/Repairs/Furnishings
18,393,573.15
266
15,280,247.24
294
Travel/Vacation/Medical
2,878,200.00
168
3,361,575.28
168
Vehicle & Vehicle Repairs
12,518,522.85
216
11,272,360.87
233
Other
8,169,264.61
634
8,506,619.32
725
TOTAL
51,379,348.22
1488
46,972,540.95
1657
2016 LOANS DISBURSED 18%
8%
7%
4%
Business/Investment - 8% Debt Consolidation/Legal - 7% Education/Computer - 4%
24% 7%
32%
Property/Repairs/Furnishings - 32% Travel/Vacation/Medical - 7% Vehicle & Vehicle Repairs - 24% Other - 18%
Winston Samm Chairman
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ANNUAL REPORT
Supervisory Committee
CHAIRMAN
63rd Annual General Meeting
2016
SECRETARY
Camal Jagassar
MEMBER SECRETARY
Adriana Vialva-Ralph
Britney Johnson
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PROVEN PAST, FUTURE DRIVEN
Supervisory Committee Report
The Supervisory Committee is pleased to report on the affairs of the Trintoc (Penal) Credit Union (TPCU) for the year ended December 2016 for consideration at the 63rd Annual General Meeting. At the Annual General Meeting held on 23rd April 2016, three members and two alternates were elected to serve on the Supervisory Committee. An inaugural meeting of the committee was held and the following three (3) members were appointed:Mr. Camal Jagassar Ms. Adriana Vialva-Ralph Ms. Britney Johnson
-
Chairman Secretary Member
Attendance Record The Supervisory Committee held seven (7) regular meetings and were invited to attend four (4) All Officers’ meetings as follows:Name Camal Jagassar (Jan-Dec 2016) Adriana Vialva Ralph (May-Dec 2016) Britney Johnson (May-Dec 2016)
Regular Meetings 7 6 6
All Officers’ Meetings 4 4 4
Excused -
Wazir Khan (Jan-Apr 2016)
1
-
-
Pearl Lewis Browne (Jan-Apr 2016)
1
-
-
The Trintoc (Penal) Credit Union Supervisory Committee is responsible for independently assessing the soundness of the Credit Union operations and financial status. Internal controls and policies are evaluated by the committee through review of financial documents with management and against TPCU’S bye laws and best practices. Outlined hereunder are some of the reviews that were undertaken: 1. Mortgages 3. Loan applications and disbursement 5. Education Committee Reports 7. Cash Payment Vouchers 9. Authorization of Expenditure
2. Insurances on Fix Deposits 4. Delinquent Records 6. Donations and Sponsorships 8. Board of Directors Minutes 10. Policies and Procedures
Several recommendations were submitted to the Board of Directors for considerations. We are pleased to report that subsequent discussions were held and prompt actions were taken in line with the improvement of prudent decision making and effective management of TPCU operations. We wish to thank the Board of Directors, Manager and Office Staff for their support in achieving our objectives towards maintaining TPCU as a viable business entity. We would like to also thank the membership for the opportunity given to serve and your continued support and confidence in Trintoc (Penal) Credit Union.
CAMAL JAGASSAR Chairman
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ADRIANA VIALVA-RALPH Secretary
BRITNEY JOHNSON Member
ANNUAL REPORT
Education Committee
CHAIRMAN
SECRETARY
63rd Annual General Meeting
2016
Ms. Anna-Marie Whyte
MEMBER
MEMBER
Mr. Omar Maraj
Mrs. Sharida Gaffar-Ramrattan
MEMBER
Ms. Christina Bahadoor-Hosein
Mr. Rawle Kanju
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PROVEN PAST, FUTURE DRIVEN
Education Committee Report The Education Committee is pleased to report on its activities/programs during the year in review. We have been encouraged and motivated by the attendance and support from the members and assure the membership that we remain committed in our pursuit towards the education and development of the Credit Union members. During the year, Mrs. Tahara Pustam retired from the Education Committee. We were saddened to see her leave the committee and we wish her well in her endeavors. We also express our thanks to Ms. Adriana Vialva-Ralph for her contribution whilst on the Committee. Mr. Omar Maraj was appointed Chairman of the committee by the Board of Directors and we also welcomed two new committee members, Mr. Rawle Kanju and Ms. Anna-Marie Whyte. The Education Committee held twelve (12) regular meetings and attended four (4) All Officers’ meeting:Record of Attendance Name
Regular Meetings
All Officers’ Meetings
Excused
Tahara Pustam
5/5
2/2
0
Adriana Vialva-Ralph
4/4
2/2
0
Omar Maraj
12
4/4
0
8/11
2/3
4
Sharida Gaffar-Ramrattan
12
3/4
1
Rawle Kanju
7/7
2/2
0
Anna-Marie Whyte
7/7
2/2
0
Christine Bahadoor-Hosein
Interfaith Service
Our traditional Interfaith Service was held on January 10, 2016 at the Penal Community Centre.
The
National Anthem was performed by our very own young budding pianist, Miss Shana Ramrattan. We had inspirational messages from our religious leaders representing the Hindu, Muslim and Christian faiths. Melodies of praise and beautiful steelpan renditions serenaded the large gathering of members who took the time to give thanks and afterwards we were all treated to a scrumptious brunch.
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ANNUAL REPORT
2016
63rd Annual General Meeting
Walk-a-thon This year’s Walk-aThon was held on March 13, 2016. Accompanied by the St. Patrick Brigade Cadets, over 150 members and their families participated. In keeping with our health and wellness theme, we have several Health Service providers, inclusive of Petrotrin Wellness Caravan and Optometrists Today present at our event, to ensure that we touch on the various aspects of health and wellness. To ensure that we care for our members holistically, all
were treated to a healthy fruit breakfast and fish broth. Officers’ Training and Development Our officers participated in training and development programmes hosted both in-house and with external organizations. Dr. Godfrey Ransome – Director facilitated interactive sessions with the entire management committee and office staff in building and executing the TPCU’s Strategic Plan 2014 - 2017.
The Co-operative Credit Union League of Trinidad and Tobago’s (CCULTT) training included Anti- Money Laundering/Counter Financing of Terrorist Activity, Annual FIU Compliance Retraining and Annual Compliance Workshop. The Institute of Chartered Accountants of Trinidad and Tobago’s (ICATT) Audit Ready attracted some officers whilst Trinidad and Tobago Credit Union Deposit Insurance Fund session on FIU/Risk Management attracted others. The Co-operative Development Division conducted a session on The Role and Functions of the Board of Directors, Credit and Supervisory Committees. There was attendance to the Post Budget Forum hosted by the Co-operative Credit Union League of Trinidad and Tobago (CCULTT) and the Oil Field Workers Trade Union (OWTU). TPCU was also well represented at the opening and closing of Credit Union Month ceremonies which were held in Point Fortin and Tobago respectively. Summer Camp This year’s Summer Camp focus was on the physical development of our young members between the ages of 5 – 15 years. We offered the opportunity to participate in activities such as Tennis and Karate. These were official training programs that provided Certificates of Participation to all who attended the entire training sessions.
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PROVEN PAST, FUTURE DRIVEN
Family Day Getting our families together to celebrate is always an important event for our committee and this year our Family Day celebration was held on October 22, 2016. The day’s activities included not only our members but their families as well. The kids had enormous fun on the bouncy castle, face painting, treasure hunt, rock climbing, brand tub and much more. The adults also enjoyed the time with the kids and had their faces painted and indulged in the pop corn, cotton candy and ice cream to mention a few. We also had adult events which included the popular All Fours, Know Your Credit Union’ competition and TPCU Got Talent show.
TPCU Congratulates the Shiva Boys Hindu College TPCU having sponsored the Shiva Boys Hindu College in the JCEP program in 2015, would like to congratulate the Shiva Boys Hindu College’s Football team for their success in the Shell/First Citizens Secondary Schools Football League Premier Division. Young Achievers Children of members, who are themselves members, continue to excel in the field of sports and education. TPCU recognizes these performers who excelled in 2016 and they will receive their awards at a function in January 2017. The recipients are:National Scholarship • Venesh C. Arjoon • Simeon D. Ramkissoon • Karishma D. Ramkissoon • Kathryn D. Ramesar • Ariana S. Jaggernauth • Clint J. Singh CSEC (> 8 Distinctions) • Nishad Y. Mahabir • Shanaz S. Ramsaroop • • • •
SEA (top 200) Thea Jagdeo Kate Persad Leah Phillip Teeval Samlal
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ANNUAL REPORT
2016
63rd Annual General Meeting
Youth Arm of TPCU In an on-going effort to ensure the continued growth and development of our Credit Union, the Education Committee, under the guidance of the Board of Directors, undertook a project to develop a Youth Arm of TPCU. We started with a training session entitled, Credit Unions Made Simple where the focus was on the operations of the Credit Committee and we will continue to host these knowledge sharing sessions.
This initiative is open to interested members between the ages of 18 to 35 years. Currently we have a proposal and policy on the formalization of a TPCU’s Youth Arm with the Board of Directors for review. Marketing Products We continue to reach out to our members via social media and other forms of communication on financial matters that impact you and the forward movement of our institution. On the front burner is our continued drive to increase more borrowing by the membership. Together with the BOD, we continue to explore strategies to communicate to the members on new promotions such as reduced Mortgage rates, competitive Vehicle loans, Fully Secured Loans, Character Loans up to 200%, Vacation Loans, Share Builder and Christmas Loans. Membership Drive Membership drive is always a priority. Several years ago the Bye-Laws was revised to accommodate contract employees of Petrotrin Limited and was extended to Trinmar. During the period of 2016 May and 2016 June, the committee engaged in massive initiative to reach out to this target group and membership packages were distributed to prospective members. This project, along with the combined efforts of all officers and staff, has resulted in membership growth from 2,652 in 2015 to 2760 at the end of 2016. Conclusion The Education Committee recognizes that it has a crucial role to play in contributing to the strategic development of TPCU and as such remains committed to engaging the membership through programmes, newsletters, social media, TPCU website, SMS texts and all other necessary communication means to ensure that this Credit Union remains a cohesive entity.
Our gratitude goes out to the Board of Directors, the Credit and Supervisory Committees, the Office Staff and most importantly, you, the membership for allowing us the privilege to serve for another year. We remain committed to ensuring our credit union continues to move ahead in a positive direction.
ANNA-MARIE WHYTE Secretary
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PROVEN PAST, FUTURE DRIVEN
Nominations Committee Report The Board of Directors of the Trintoc (Penal) Credit Union appointed the following persons to serve on the Nominations Committee in accordance with section 26 of the Bye Laws of the Credit Union: Mr. Eric Forde Mrs. Desarie Barclay Mrs. Marva Johnson-Friday Mrs. Chanardaye Musrap
- - - -
Chairman Member Member Member
Mr. Seunarine Surajbally
-
Member
The Committee’s duties included the selection of qualified members who are willing to volunteer themselves to be considered for election to the Board, Credit and Supervisory Committee at the Annual General Meeting. In addition, the Committee had the responsibility of submitting for consideration and approval by the Board, the names of those volunteers who met the established criteria. In order to facilitate such, two (2) documents were used:
1. A Nomination Policy
2. A Nomination Form
A total of fourteen (14) persons applied to serve on the various committees. The panel reviewed all fourteen (14) Nomination Forms where special emphasis was placed on the “Fit and Proper Criteria” as outlined in the Credit Union’s Bye-Laws (26). The persons listed below have been deemed eligible by the committee to be considered for election. BOARD OF DIRECTORS: CREDIT COMMITTEE: SUPERVISORY COMMITTEE: Mr. Vade Cheddie Mr. Peter Winston David Mr. Camal Jagassar Mr. Perry Jagdeo Mr. Rudolph Felix Mr. Wazir Khan Mr. Ananias Johnson Mr. Kelvin Pustam Ms. Adriana Vialva-Ralph Mrs. Pearl Lewis-Browne Mr. Winston Samm Mr. Imtiaz Mohamed Mr. Calvin Sargeant Mr. Sewnarine R. Sirju ______________________ Eric Forde Chairman On behalf of the Nominations Committee
21st March, 2017
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AGM 2017
ANNUAL REPORT
2016
63rd Annual General Meeting
Auditors Report & Financial Statements as at December 31st, 2016
AGM 2017
Chartered Accountants 34 St. Vincent Street, San Fernando, Trinidad, W.I.TRINTOC (PENAL) CREDIT Tel: (868) 652 5245 Fax: (868) 653 6053 Email : info@maharajmohammed.com
UNIONDRIVEN CO-OPERATIVE SOCIETY LIMITED PROVEN PAST, FUTURE
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED Report on the Financial Statements We have audited the financial statements of Trintoc (Penal) Credit Union Co-operative Society Limited which comprises the statement of financial position as at 31st December 2016, statement of comprehensive income, statement of changes in equity, statement of cash flows and receipts and payments account for the year then ended, and incorporating summary of significant accounting policies and other explanatory notes, as stated on pages 5 to 27. Opinion In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of Trintoc (Penal) Credit Union Co-operative Society Limited as at 31st December 2016 and the results of its operations and cash flows for the year then ended, in accordance with International Financial Reporting Standards (IFRSs). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Society in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information Management is responsible for the other information. The other information comprises the information included in the Society’s annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard.
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AGM 2017
2
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
ANNUAL REPORT
2016
63rd Annual General Meeting
Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Society’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Society or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Society’s financial reporting process. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: ➢ Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. ➢ Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Society’s internal control. ➢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
3
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TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
PROVEN PAST, FUTURE DRIVEN
Auditors’ Responsibilities for the Audit of the Financial Statements (continued) ➢ Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Society’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Society to cease to continue as a going concern. ➢ Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. ➢ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. The engagement partner on the audit resulting in this independent auditor’s report is Mr. Rudranand Maharaj.
Maharaj Mohammed & Co. Chartered Accountants Trinidad & Tobago 14th March 2017
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4
ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Statement Of Financial Position STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2016 At 31st December 2016
63rd Annual General Meeting
Notes
2016
2016 $
2015 $
14,337,795 8,176,769
23,658,644 839,409
22,514,564
24,498,053
250,535 119,462,733 103,592,968
229,297 108,897,715 87,936,563
223,306,236
197,063,575
245,820,800
221,561,628
12,934,758 1,210,470 240,000 2,793,336 12,924,325
11,794,998 856,931 2,483,763 10,946,579
30,102,889
26,082,271
834,164
1,160,016
834,164
1,160,016
203,448,961 11,434,786
186,020,492 8,298,849
214,883,747
194,319,341
Total Liabilities
215,717,911
195,479,357
Total Liabilities and Shareholders’ Equity
245,820,800
221,561,628
ASSETS Current assets Cash and cash equivalents Accounts receivable and prepayments
5 8
Non-current assets Property, plant and equipment Members’ loans Investments
6 7 10
Total Assets MEMBERS’ EQUITY AND LIABILITIES Members’ equity Reserve fund Education fund Building fund Investment reserve Retained earnings
12 13 14 11
Current liabilities Accounts payable and accruals
9
Non-current liabilities Members’ shares Members’ deposits
17 15
The accompanying notes on pages 50 to 67 form an integral part of these financial statements. : President
: Treasurer
: Supervisory Chairman
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5
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED STATEMENT OF COMPREHENSIVE INCOME Statement Of DRIVEN Comprehensive Income PROVEN PAST, FOR THE YEAR ENDEDFUTURE 31 DECEMBER 2016 ST
For The Year Ended 31st December 2016 Note
2016 $
2015 $
Interest on loans Investment income Other income
11,681,315 3,539,445 160,848
10,605,320 2,831,214 225,675
Total
15,381,608
13,662,209
756,259 924,264 633,301 666,513 420,462 605,607
1,109,572 870,776 662,460 642,138 390,039 647,244
4,006,406
4,322,229
11,375,202
9,339,980
1,137,520 511,884
933,998 420,299
1,649,404
1,354,297
Revenue
Expenses Administrative and other Staff costs Officers’ CUNA insurance premiums Provision for doubtful debts Bank charges and interest
23 22 21 7.a
Net surplus for the year Appropriations Transfer to reserve fund (10%) Transfer to education fund (5%)
2 (h) 2 (i)
The accompanying notes on pages 50 to 67 form an integral part of these financial statements.
6
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AGM 2017
12,934,758 10,858,480 933,998 2,520 11,794,998
Balance at 31st December 2016
Balance at 1st January 2015 Operating surplus Appropriations Expenditure Membership fee Revaluation reserve Dividends paid
Balance at 31st December 2015
AGM 2017
856,931
887,846 420,299 (451,214) -
1,210,470
856,931 511,884 (158,345) -
Education Fund $
-
-
240,000
240,000 -
Building Fund $
2,483,763
2,893,863 (410,100) -
2,793,336
2,483,763 309,573 -
Revaluation Reserve $
10,946,579
10,223,410 9,339,980 (1,354,297) 451,214 (7,713,728)
12,924,325
10,946,579 11,375,202 (1,649,404) 158,345 (240,000) 61,802 (7,728,199)
Retained Earnings $
26,082,271
24,863,599 9,339,980 2,520 (410,100) (7,713,728)
30,102,889
26,082,271 11,375,202 2,240 309,573 61,802 (7,728,199)
Total $
63rd Annual General Meeting
47
The accompanying notes on pages 50 to 67 form an integral part of these financial statements.
11,794,998 1,137,520 2,240 -
Balance at 1st January 2016 Operating surplus Appropriations Expenditure Entrance fee Building fund Revaluation reserve Dividends paid in error Dividends paid
Reserve Fund $
STATEMENT OF CHANGES IN EQUITY For The Year FOR THE YEAR ENDED 31ST DECEMBER 2016
Statement Of Changes In Equity Ended 31st December 2016
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
ANNUAL REPORT
2016
7
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Statement Of Cash Flows PROVEN PAST, FUTURE DRIVEN STATEMENT OF For CASH FLOWS The Year Ended 31st FOR THE YEAR ENDED 31ST DECEMBER 2016 Operating activities
December 2016 Note
Net surplus for the year
2016 $
2015 $
11,375,202
9,339,980
Adjustment for non-cash items Depreciation of property, plant and equipment Revaluation of investments Loss on disposal of property, plant and equipment
49,500 309,573 11,091
Operating income before working capital changes
11,745,366
8,985,078
Movements in working capital Increase in members’ loans Increase in members’ deposits Increase in accounts receivable and prepayments (Decrease)/increase in accounts payables and accruals
(10,565,018) 3,135,937 (7,337,360) (325,852)
(13,684,404) 1,227,324 (77,512) 378,459
Net cash used in operating activities
(3,346,927)
(3,171,055)
Investing activities Purchase of property, plant and equipment Purchase of investments
(81,828) (15,656,405)
(28,828) (9,885,503)
Net cash used in investing activities
(15,738,233)
(9,914,331)
17,428,469 (7,728,199) 61,801 2,240
16,882,410 (7,713,728) 2,520
9,764,311
9,171,202
(9,320,849)
(3,914,184)
23,658,644 14,337,795
27,572,828 23,658,644
(9,320,849)
(3,914,184)
Financing activities Increase in members’ shares Dividends paid Dividends paid in error to deceased members Membership fee
20
Net cash provided by financing activities Net decrease in cash and cash equivalents
55,198 (410,100) -
Cash and cash equivalents - at the beginning of the year - at the end of the year
5
The accompanying notes on pages 50 to 67 form an integral part of these financial statements.
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ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Statement of Receipts And Payments RECEIPTS AND PAYMENTS ACCOUNT For The Year Ended 31st December 2016 ST
2016
FOR THE ENDEDMeeting 31 DECEMBER 2016 63rd YEAR Annual General RECEIPTS
2016 $ Payroll clearing account 30,340,715 Members’ shares 23,644,118 Loans 12,541,663 Accounts receivables 394,397 Investments 14,831,717 Deposit account 3,350,458 Interest from loans 3,876,331 Investment income 2,711,450 CUNA insurance claim 132,000 Early withdrawal fee 2,367 Sale of promotional items 15,105 Sundry expenses 3,195 Commission – CUNA 9,825 Stale dated cheques 10,703 Entrance fee 2,240 Members fixed deposit 252,405 Education committee -
2015 $ 29,515,482 23,384,312 14,893,825 402,925 11,968,332 1,765,186 3,447,780 1,869,712 288,000 8,515 11,345 1,391 6,199 31,088 2,520 1,945,098 5,845
92,118,689
89,547,555
PAYMENTS
2016 $ Loans 46,951,813 Investments 37,267,283 Members’ shares 9,377,168 Deposit account 2,857,757 Members fixed deposit 1,054,327 Salary 803,265 Board & committee 602,975 CUNA insurance premium 673,500 Education committee 165,131 CUNA insurance claim 142,342 Annual general meeting 109,496 Legal and bailiff fees 19,550 Building and repairs 84,921 CUNA FIP 713,220 Computer maintenance 37,710 Office stationery and supplies 98,918 Audit fees 36,563 Telephone and internet 19,479 Property, plant and equipment 35,481 League dues 25,150 Donation and subscription 35,513 Green fund levy 55,291 Security service – CIT 13,268 Advertising 17,506 Accounts payable 925 Bank charges 74,865 Sundry 4,815 Staff pension & NIS 161,306
2015 $ 50,922,313 22,287,163 12,220,065 2,565,647 1,696,841 725,772 652,457 639,225 461,033 288,000 109,505 29,000 99,472 68,112 57,988 72,167 37,375 35,855 14,574 37,125 42,669 14,444 7,580 139,774 4,950 232,633
101,439,538
93,461,739
Balance at beginning of the year:
Balance at the end of the year:
Petty cash USD savings account RBC current account Republic bank account
Float – Deposit withdrawal Treasury Petty cash USD savings account RBC current account Republic bank account
3,950 12,000 2,500 1,192,520 191,508 12,935,318
2,500 893,577 215,318 22,547,249
2,500 893,577 215,318 22,547,249
2,500 526,019 287,293 26,757,016
23,658,644
27,572,828
14,337,795
23,658,644
115,777,333 117,120,383
115,777,333
117,120,383
The accompanying notes on pages 50 to 67 form an integral part of these financial statements. 9
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TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To TheDRIVEN Financial Statements PROVEN PAST, FUTURE NOTES TO THE FINANCIAL STATEMENTS 31st December FOR THE YEAR ENDED 31STAt DECEMBER 2016
2016
1. Incorporation and principal activities Trintoc (Penal) Credit Union Co-operative Society Limited (“the Credit Union”) was incorporated in 1954 under the Co-operative Societies Act of Trinidad and Tobago. Its registered office and principal place of business is Clarke Road, Penal. It was formed in order to improve the economic and social conditions of its members, chiefly by promoting savings among its members, and providing loans to members at reasonable and legitimate rates of interest for provident and productive purposes. 2. Significant Accounting Policies The principal accounting policies applied to the preparation of these financial statements are set out below. These policies have been consistently applied to the years presented, unless otherwise stated. (a)
Basis of accounting These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board. These financial statements were prepared under the historical cost convention, except for the measurement at fair value of available-for-sale investments and certain other financial instruments. The Credit Union’s functional and presentation currency is Trinidad and Tobago dollars which is the currency that best reflects the economic substance of the underlying events and circumstances relevant to the Society.
(b)
Revenue recognition Interest income is accounted for on the accrual basis for investment. Interest on loans is accounted for on the accrual basis, at the rate prescribed by the Bye-Laws of the Credit Union.
(c)
Property, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation. Depreciation is provided on a reducing balance basis at varying rates to write-off the cost of the assets over their estimated useful lives. The following rates, considered appropriate to write-off the assets over their estimated useful lives, are applied: Furniture and fixtures Air conditioning Office equipment Computer equipment
50
10% 10% 20% 33.3% 10
AGM 2017
ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes STATEMENTS To The Financial Statements NOTES TO THE FINANCIAL 31st December 2016 FOR THE YEAR ENDED 31STAt DECEMBER 2016
2016
63rd Annual General Meeting 2.
Significant Accounting Policies (Continued) (c)
Property, plant and equipment (continued) The assets’ residual values and useful lives are reviewed at each reporting date, and adjusted as appropriate. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.
(d)
Financial assets and liabilities Financial instruments carried on the statement of financial position include cash resources, investments, loans, deposits and other liabilities. The standard treatment for recognition, de-recognition, classification and measurement in the Credit Union’s financial statements are noted in notes (i) – (iv). (i)
Recognition The Credit Union initially recognizes loans, advances and deposits on the date that they are originated. All other financial assets and liabilities (including assets and liabilities designated at fair value through the statement of comprehensive income) 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 The Credit Union de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the right 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 assets are transferred. The Credit Union de-cognises a financial liability when it contractual obligations are discharge, cancelled or expired.
(iii) Classification The Credit Union classifies its financial assets in to the following categories: financial assets at fair value through the statement of comprehensive income; loans and receivables; held-to-maturity and available for sale. Management determines the classification of its investments at initial recognition.
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TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To TheDRIVEN Financial Statements PROVEN PAST, FUTURE NOTES TO THE FINANCIAL STATEMENTS 31st December FOR THE YEAR ENDED 31STAt DECEMBER 2016
2016
2. Significant Accounting Policies (Continued) (d)
Financial assets and liabilities (continued) (iii) Classification (continued) Financial assets at fair value through the statement of comprehensive income: This category includes financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling the short term or if so designated by management. Loan 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 the 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 the Credit Union’s management has the positive intention and ability to hold to maturity. If the Credit Union were to sell a significant amount of held-to-maturity investments, the entire category will be compromised. 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 and equity prices. (iv) Measurement Financial instruments are measured initially at cost, including transaction cost. Subsequent to initial recognition, equity instruments are measured at fair value through statement of comprehensive income. Available-for-sale assets are measured at fair value, based on their quoted market price, at the statement of financial position date, without any deduction for transaction costs. Where the instruments is not actively traded or quoted on recognized exchanges, fair value is determined using discounted cash flow analysis. Any available-for-sales asset that does not have a quoted market price in an active market and where fair value cannot be reliably measure, is stated at cost, including transaction cost less impairment losses. Gains and losses, both realised and unrealised, arising from the change in the financial assets is recognised at fair value through the statement of comprehensive income and reported in other income.
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ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIAL STATEMENTS 31st December 2016 FOR THE YEAR ENDED 31STAt DECEMBER 2016
63rd Annual General Meeting 2.
2016
Significant Accounting Policies (Continued) (d)
Financial assets and liabilities (continued) (iv) Measurement (continued) All non-trading financial liabilities, originated loans and receivables and heldto-maturity assets are measured at amortised cost less impairment losses. Amortised cost is calculated on the effective interest method. On disposal or on maturity of an investment, the difference between the net proceeds and the carrying amount is included in the statement of comprehensive income. When available-for-sale assets are sold, converted or otherwise disposed of, the cumulative gain or loss recognised in equity is transferred to statement of comprehensive income.
(e)
Members’ loans Loans and advances granted to members by the Credit Union are stated at principal amounts outstanding net of allowances for loan losses. 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 of 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. Loan balances considered as doubtful and or uncollectable are written off to the statement of comprehensive income even though collections efforts continue. 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 the formula provided by the PEARLS Monitoring System. 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 comprehensive income.
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13
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To TheDRIVEN Financial Statements PROVEN PAST, FUTURE NOTES TO THE FINANCIAL STATEMENTS 31st December FOR THE YEAR ENDED 31STAt DECEMBER 2016 2.
2016
Significant Accounting Policies (Continued)
(f)
Cash and cash equivalents. Cash and cash equivalents comprise cash on hand and bank balances that are readily convertible to known amounts of cash which are subject to insignificant risk of change in value.
(g)
Accounts receivable Trade receivables are measured at cost. Appropriate allowances for estimated irrecoverable amounts are recognised in the statement of comprehensive income when there is objective evidence that the asset is impaired.
(h)
Reserve fund In accordance with Bye Law 12, the Credit Union and The Co-operative Society Act, 1971 Section 47 (2), at least ten percent (10%) of the net surplus of the Credit Union for the year is to be transferred to a Reserve Fund. All losses on investments, which are beyond the control of the Credit Union, are written off to the Reserve Fund.
(i)
Education fund In accordance with Bye Law 12 of the Credit Union, an amount of not less than five percent (5%) of the net surplus for the year, after making provision to the Reserve Fund, may be credited to the Education Fund. This fund is to be used for education purposes.
(j)
Building fund In accordance with Bye Law 12 (g) of the Credit Union, the balance of the net surplus may be used at the discretion of the General Meeting for the constitution of a Building Fund.
(k)
Members’ deposits A member may deposit money into his account in the Credit Union subject to the terms and conditions specified by the Board. (i) Members’ savings deposits Members’ savings deposits are stated at their current balance. (ii) Members’ fixed deposits Members’ fixed deposits are stated at their current balance. Interest on members fixed deposits is calculated generally at rates between 1% and 2%.
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ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIAL STATEMENTS 31st December 2016 FOR THE YEAR ENDED 31STAt DECEMBER 2016
2016
63rd Annual General Meeting 2.
Significant Accounting Policies (Continued)
(l)
Interest on members’ loans Interest on loans is accounted for on an accrual basis. The interest charged on loans is calculated at the rate of 0.5% to 1% per month on the reducing balance at the end of each month.
(m)
Unclaimed shares Under Bye Law 13, the Board may transfer any shares and or interest not claimed (net of any amounts due to the Society) within one year from the date of the last transaction of a member, whose whereabouts are unknown, to an Unclaimed Shares Account. Any sums remaining unclaimed for two (2) years may be transferred to the Reserve Fund.
(n)
Accounts payable Accounts payable are obligations on the basis of normal credit terms and do not bear interest.
(o)
Employee benefits / pension obligations The Credit Union operates a defined contribution plan and pays contributions to administered pension insurance plans. The group has no further payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or reduction in the future payments is available.
(p)
Provisions Provisions are recognised when the society has a present legal or constructive obligation as a result of past events. It is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the statement of financial position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
(q)
Foreign currency Foreign currency transactions during the year are translated into Trinidad and Tobago dollars at the exchange rates ruling at the dates of the transactions. Currents assets and liabilities denominated in foreign currencies are translated at the exchange rates prevailing at the balance sheet date. Gains or losses thus arising are included in the statement of income.
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15
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
To TheDRIVEN Financial Statements PROVEN PAST,Notes FUTURE NOTES TO THE FINANCIALAt STATEMENTS 31st December FOR THE YEAR ENDED 31ST DECEMBER 2016 2.
2016
Significant Accounting Policies (Continued)
(r)
Taxation The Credit Union is subject to Green Fund Levy based on the stipulated rate for the respective year.
(s)
Comparative Where necessary, comparative figures have been adjusted to take account of the changes in presentation in the current year.
3.
Financial Risk Management Financial risk factors The society is exposed to interest rate risk, credit risk, liquidity risk, currency risk, operational risk, compliance risk and reputation risk arising from the financial instruments that it holds. The risk management policies employed by the society to manage these risks are discussed below:
(a)
Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Society is exposed to interest rate risk through the effect of fluctuations in the prevailing levels of interest rates on interest bearing financial assets and liabilities, including investments in bonds, loans, customer deposits and other funding instruments. The exposure is managed through the matching of funding products with financial services and monitoring market conditions and yields. i)
Bonds
The Society invests mainly in medium to long term bonds consisting of both floating rate and fixed rate instruments. The market values of the fixed rate bonds are not very sensitive to changes in interest rates. The market values of the floating rate bonds are sensitive to changes in interest rates. The longer the maturity of the bonds, the greater is the sensitivity to changes in interest rates. As these assets are being held to maturity and are not traded, any changes in market value will not impact the statement of comprehensive income. The society actively monitors bonds with maturities greater than ten years, as well as the interest rate policies of the Central Bank of Trinidad and Tobago. ii)
Loans
The Society generally invests in fixed rate loans. These are funded mainly from member deposits and shares.
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ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIALAt STATEMENTS 31st December 2016 ST
FOR THEGeneral YEARMeeting ENDED 31 DECEMBER 2016 63rd Annual
2016
3. Financial Risk Management (Continued) (b)
Credit risk Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the Statement of Financial Position date. The Credit Union relies heavily on a written Loan Policy Manual, which sets out in detail the current policies governing the lending function and provides a comprehensive framework for prudent risk management of the credit function. Adherence to these guidelines is expected to communicate the Credit Union’s lending philosophy; provide policy guidelines to team members involve in lending; establish minimum standards for credit analysis, documentation, decision making and postdisbursement administration; as well as create the foundation for a sound credit portfolio. The Credit Union’s loan portfolio is managed and consistently monitored by the Credit Committee and is adequately secured by collateral and where necessary, provisions have been established for potential credit losses on delinquent accounts. Cash balances are held with high credit quality financial institutions and the Credit Union has policies to limit the amount of exposure to any single financial institution.
(c)
Liquidity risk Liquidity risk is the risk that arises when the maturity dates of assets and liabilities do not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Credit Union has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. The Credit Union is able to make daily calls on its available cash resources to settle financial and other liabilities. Risk management The matching and controlled mismatching of the maturities and interest rates of assets and liabilities are fundamental to the management of the Credit Union. The Credit Union employs various asset/liability techniques to manage liquidity gaps. Liquidity gaps are mitigated by the marketable nature of a substantial segment of the Credit Union’s assets as well as generating sufficient cash from new and renewed members’ deposits and shares. To manage and reduce liquidity risk the Credit Union’s management actively seeks to match cash inflows with liability requirements
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17
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
To TheDRIVEN Financial Statements PROVEN PAST,Notes FUTURE NOTES TO THE FINANCIALAt STATEMENTS 31st December FOR THE YEAR ENDED 31ST DECEMBER 2016
2016
3. Financial Risk Management (Continued) (d)
Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Credit Union’s measurement currency. The Credit Union is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States Dollar. The Society’s management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
(e)
Operational risk Operational risk is the risk derived from deficiencies relating to the Credit Union’s information technology and control systems, as well as the risk of human error and natural disasters. The Credit Union’s systems are evaluated, maintained and upgraded continuously. Supervisory controls are installed to minimise human error. Additionally, staff is often rotated and trained on an on-going basis.
(f)
Compliance risk Compliance risk is the risk of financial loss, including fines and other penalties, which arise from non-compliance with laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the Commissioner for Cooperative Development, as well as by the monitoring controls applied by the Credit Union.
(g)
Reputation risk The risk of loss of reputation arising from the negative publicity relating to the Credit Union’s operations (whether true or false) may result in a reduction of its clientele, reduction in revenue and legal cases against the Society. The Credit Union engages in public social endeavours to engender trust and minimise this risk.
(h)
Capital risk management The Credit Union’s objectives when managing capital are to safeguard the Credit Union’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.
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ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIALAt STATEMENTS 31st December 2016 ST
FOR THEGeneral YEARMeeting ENDED 31 63rd Annual 4.
DECEMBER 2016
2016
Critical accounting estimates and judgments The preparation of financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions in the process of applying the Credit Union’s accounting policies (see basis of preparation). Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Credit Union makes estimates and assumptions concerning the future. However, actual results could differ from those estimates as the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Changes in accounting estimates are recognised in the statement of comprehensive income in the period in which the estimate is changed, if the change affects that period only, or in the period of the change and future periods if the change affects both current and future periods. The critical judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows: i)
Classification of investments as held to maturity investments, available for sale or loans and receivables, ii) Classification of leases as operating leases or finance leases, and/or iii) Depreciation method adopted for property, plant and equipment. The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date (requiring management’s most difficult, subjective or complex judgements) that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: i) Impairment of assets Management assesses at each reporting date whether assets are impaired. An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment. Recoverable amount is the present value of the future cash flows. Provisions are made for the excess of the carrying value over its recoverable amount. ii) Plant and equipment Management exercises judgement in determining whether future economic benefits can be derived from expenditures to be capitalised, in estimating the useful lives, and in estimating residual values of those assets.
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19
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
To TheDRIVEN Financial Statements PROVEN PAST,Notes FUTURE NOTES TO THE FINANCIALAt STATEMENTS 31st December FOR THE YEAR ENDED 31ST DECEMBER 2016 5.
2016
Cash and cash equivalents Cash and cash equivalents consist of cash-on-hand and balances with banks. Cash and cash equivalents included in the statement of cash flows comprise the following statement of financial position amounts. 2016 2015 $ $ Petty cash Cash at bank
6.
2,500 14,335,295
2,500 23,656,144
14,337,795
23,658,644
Property, plant and equipment Office Furniture & Fittings $
Air Office Computer Conditioning Equipment Equipment $
$
Total
$
$
Cost Beginning of the year Additions Disposal
148,825 12,849 (3,150)
36,674 11,600 (21,678)
222,340 6,182 (1,725)
209,166 51,197 (23,954)
617,005 81,828 (50,507)
End of the year
158,524
26,596
226,797
236,409
648,326
Accumulated Depreciation Beginning of the year Charge for the year Disposals End of the year
75,852 7,476 (2,796) 80,532
19,787 1,076 (12,652) 8,211
138,052 17,749 (1,031) 154,770
154,017 23,199 (22,938) 154,278
387,708 49,500 (39,417) 397,791
Net book value 2015
72,973
16,887
84,288
55,149
229,297
Net book value 2016
77,992
18,385
72,027
82,131
250,535
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ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIALAt STATEMENTS 31st December 2016 ST
FOR THEGeneral YEARMeeting ENDED 31 63rd Annual 7.
2016
DECEMBER 2016
Members’ loans Ordinary Mortgage Vehicle Fully secured Short term Less: Provision for delinquent loans (See note 7 (a) below)
2016 $
2015 $
59,232,116 31,547,859 15,376,928 12,454,689 3,212,525
53,406,089 29,006,931 14,842,322 11,215,716 2,367,579
121,824,117
110,838,637
(2,361,384) 119,462,733
(1,940,922) 108,897,715
(7.a) Loans to members are stated at principal outstanding net of a provision for loan losses. The provision for loan losses is based on the formulas provided by the World Council of Credit Unions, PEARL’S monitoring system. Provision for delinquent loans
8.
Opening balance as at 1st January Provision for delinquency charged to surplus
1,940,922 420,462
1,550,882 390,040
Closing balance as at 31st December
2,361,384
1,940,922
Accounts receivable and prepayments Trade receivables Matured short term deposit Prepayments
9. Accounts payable and accruals Trade payables Accruals
2016 $
2015 $
925,316 7,051,551 199,902
836,657 2,752
8,176,769
839,409
2016 $
2015 $
698,271 135,893
706,940 453,076
834,164
1,160,016
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21
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
To TheDRIVEN Financial Statements PROVEN PAST,Notes FUTURE NOTES TO THE FINANCIALAt STATEMENTS 31st December ST FOR THE YEAR ENDED 31 DECEMBER 2016 10. Investments
2016
2016 $
2015 $
1,330,180 50,391,135 1,270,710 529,591 2,194,752 10,090,339 145,636
1,330,180 32,657,727 1,168,915 563,149 2,194,752 10,112,668 153,022
65,952,343
48,180,413
Republic Bank Limited Money Market Fund 2,714,855 nd Trinidad and Tobago Unit Trust Corp. 2 unit scheme 546,217 Trinidad and Tobago Unit Trust Corp - growth & income fund 5,794,728 First Citizens Bank Limited – Abercrombie fund 3,665,457 First Citizens Investment Services Limited – DBF Trinidad and Tobago Mortgage Finance Co. Ltd. 10,000,000 ANSA TT$ Income Fund 1,535,094 First Citizens Bank - IPO 5,294,922 T&T National Gas Ltd – IPO 640,794 Massy Wood group 2,210,558 First Citizens Bank – 2022 5,238,000
2,689,233 3,870,667 5,753,133 3,632,628 1,124,607 10,000,000 1,496,017 5,297,950 653,915 5,238,000
37,640,625
39,756,150
103,592,968
87,936,563
(a) Held-to-maturity ANSA secured fund Government of Trinidad and Tobago (GOTT) bonds Petrotrin USD Bond 2019 Petrotrin USD Bond 2022 Guardian Holdings Ltd 2015 Guardian Holdings Ltd 2019 Guardian Holdings Ltd 2023 (b) Available-for-sale
Total Investments 11. Investment reserve
In 2013 the Credit Union adopted IAS 39 (Financial Instruments: Recognition and Measurement). The effect of this was that the quoted investments are now recognized in the balance sheet at the market value rather than cost. This resulted in the Investment Reserve. The carrying amounts of the Credit Union’s Investment Reserve at the end of the reporting period is as follows: 2016 2015 $ $
62
Opening balance Net change in market value for the period
2,483,763 309,573
2,893,863 (410,100)
Ending balance
2,793,336
2,483,763
AGM 2017
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ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIALAt STATEMENTS 31st December 2016
2016
FOR THEGeneral YEARMeeting ENDED 31ST DECEMBER 2016 63rd Annual 12. Reserve fund
2016 $
2015 $
Opening balance as at 1st January Appropriations New membership fees
11,794,998 1,137,520 2,240
10,858,480 933,998 2,520
Closing balance as at 31st December
12,934,758
11,794,998
2016 $
2015 $
13. Education fund Opening balance as at 1st January Appropriations Expenditure for the period Closing balance as at 31st December
856,931 511,884 (158,345)
887,846 420,299 (451,214)
1,210,470
856,931
2016 $
2015 $
Opening balance as at 1st January Appropriations Expenditure for the period
240,000 -
-
Closing balance as at 31st December
240,000
-
14. Building fund
The amount of this fund represents a portion of the surplus for 2015.
15. Members deposits’ Opening balance as at 1st January Net increase for the period Closing balance as at 31st December
2016 $
2015 $
8,298,849 3,135,937
7,071,525 1,227,324
11,434,786
8,298,849
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23
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
To TheDRIVEN Financial Statements PROVEN PAST,Notes FUTURE NOTES TO THE FINANCIALAt STATEMENTS 31st December ST FOR THE YEAR ENDED 31 DECEMBER 2016
2016
16. 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. Balances and transaction with related parties and key management personnel during the year were as follows: 2016 2015 $ $ Loans
9,378,425
7,512,642
526,472
299,696
10,931,576
8,023,143
Stipend to directors and related committee members
495,200
528,800
Dividends
419,610
386,370
Key management compensation
416,905
397,095
Deposits and other liabilities Shares
17. Members’ shares In accordance with existing IFRSs and given the substance and the nature of Members’ shares, this balance is accounted for as a liability and not as equity of the Credit Union. The Credit Union Bye Laws allow for the issue of shares at $5.00 each. No member may hold at any time more than one fifth (1/5) of the total paid up share capital of the Credit Union. 18. Employees The number of persons employed at year end
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AGM 2017
2016
2015
7
6
24
ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIALAt STATEMENTS 31st December 2016
FOR THEGeneral YEARMeeting ENDED 31ST DECEMBER 2016 63rd Annual 19.
2016
Capital risk management The Credit Union manages its capital to ensure that it will be able to continue as a going concern while maximising the return to members, and providing value to its members by offering loan and savings facilities. The Credit Union’s overall strategy remains unchanged from previous years. The capital structure of the Credit Union consists of equity attributable to members, and comprises members’ shares, reserves and retained earnings.
20.
Dividends Dividends are recommended by the Board of Directors and are subject to confirmation 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 4.5% of the average value of members’ shares in issue throughout the year, for the year ended December 31, 2016. This dividend amounting to $9,155,203 (projected), (2015: $7,713,728), is not recorded as a liability in the Statement of Financial Position, consistent with IAS 10 - Events after the Reporting Period.
21. Officers’ expenses Board of directors/ committee Delinquency committee Entertainment
22. Staff costs Pension plan – employer contribution Insurance Medical plan – employer contribution National insurance – employer contribution Salaries and travelling Training Uniforms
2016 $ 591,178 18,169 23,954
2015 $ 599,093 29,528 33,839
633,301
662,460
2016 $
2015 $
61,482 7,961 16,653 55,861 758,311 16,506 7,490
60,535 8,020 13,376 50,297 711,860 10,288 16,400
924,264
870,776
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25
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
To TheDRIVEN Financial Statements PROVEN PAST,Notes FUTURE NOTES TO THE FINANCIALAt STATEMENTS 31st December ST FOR THE YEAR ENDED 31 DECEMBER 2016
2016
23. Administrative and other
Advertising and promotions Annual general meeting expenses and tokens Audit fees Bailiffs’, professional and legal fees Computer, software maintenance and support services Donations Education committee Green fund levy Insurance Loss on disposal of property, plant and equipment League dues Miscellaneous Depreciation Office supplies, stationery and postage Property maintenance, land rent and facilities Security fees Telephone and internet
2016 $
2015 $
17,808 110,668 36,563 52,900 42,573 32,285 158,345 41,654 22,825 11,091 24,550 6,213 49,500 42,284 69,582 14,472 22,946
2,185 110,897 38,125 29,000 48,363 12,575 451,216 13,643 22,825 37,125 8,687 55,198 56,561 171,828 14,444 36,900
756,259
1,109,572
24. Fair values Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arm’s length transaction. The existence of published price quotation in an active market is the best evidence of fair value. Where market prices are not available, fair values are estimated using various valuation techniques, including using recent arm’s length market transactions between knowledgeable, willing parties, if available, current fair value of another financial instrument that is substantially the same and discounted cash flow analysis. The following methods have been used to estimate the fair values of various classes of financial assets and liabilities: a) Current assets and liabilities The carrying amounts of current assets and liabilities are a reasonable approximation of the fair values because of their short-term nature.
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26
ANNUAL REPORT
TRINTOC (PENAL) CREDIT UNION CO-OPERATIVE SOCIETY LIMITED
Notes To The Financial Statements NOTES TO THE FINANCIAL STATEMENTS At 31st December 2016 ST
AT 31 DECEMBER 2016 63rd Annual General Meeting
2016
24. Fair values (continued) b) Members’ loans Loans are net of specific provisions for losses. These assets result from transactions conducted under typical market conditions and their values are not adversely affected by unusual terms. The inherent rates of interest in the portfolio approximate market conditions and yield discounted cash flow values which are substantially in accordance with financial statement amounts. c) Investments The fair values of investments are determined on the basis of quoted market prices available at December 31, 2016. d) Members’ deposits Members’ deposits bear interest at rates that are not significantly different from current rates and are assumed to have discounted cash flow values which approximate carrying values.
AGM 2017
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27
PROVEN PAST, FUTURE DRIVEN
Proposed Budget 2017
Budget 2016 Actual 2016 Variance Budget 2017 $ $ $ $ INCOME Interest on Loans 11,893,772 11,681,535 (212,238) 12,491,333 Income from Investments/Fixed Deposits 2,885,226 3,539,445 654,220 4,279,237 Other Income 250,000 160,848 (89,152) 175,000 TOTAL INCOME 15,028,998 15,381,828 352,830 16,945,570 EXPENDITURE All Officers Meeting/Social Events 40,000 23,954 (16,046) 30,000 Advertising 8,000 17,808 9,808 20,000 Annual General Meeting 120,000 110,668 (9,332) 120,000 Audit Fees 38,125 36,563 (1,563) 37,000 Bank / Finance Charge 490,000 456,807 (33,193) 475,000 Board & Committee Expenses 630,000 570,211 (59,789) 600,000 Building Maintenance 80,000 69,582 (10,418) 70,000 Capital Expenditure - Property, c 240,000 240,000 0 145,000 Computer & Office Equipment Maintenance/ACH Module, assets Credit Union League Dues CUNA LP/LS Depreciation Disposal of Assets Donations/ Sponsorship Education Committee Green Fund Levy Insurance & Pension Interest on Members Fixed Deposits & Savings Office Expense Professional Fees - IT, legal, compliance Provision for bad and doubtful debts Salary/Contract Labour Security fee (CIT) Subscriptions/sundry Telephone & Internet Training and Development TOTAL EXPENDITURE SURPLUS
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125,000 124,401 (599) 140,000 24,550 24,550 0 24,017 700,000 666,512 (33,488) 700,000 75,000 49,500 (25,500) 55,000 - 11,091 11,091 0.00 30,000 32,285 2,285 45,000 464,000 158,345 (305,655) 330,000 - 41,654 41,654 37,474 158,000 185,300 27,300 199,845 160,000 148,800 (11,200) 160,000 65,000 42,284 (22,716) 55,000 58,000 52,900 (5,100) 35,000 300,000 420,462 120,462 400,000 750,000 766,201 16,201 778,000 15,000 14,472 (528) 15,000 8,800 6,213 (2,587) 6,300 38,000 22,946 (15,054) 32,364 45,000 34,725 (10,275) 40,000 4,662,475 4,328,234 (334,241) 4,550,000 10,366,523 11,053,594 687,071 12,395,570
ANNUAL REPORT
2016
63rd Annual General Meeting
Resolutions Resolution 1 – Appointment of Auditors Whereas the Commissioner for Co-operative Development has drawn up a list of approved Auditors for the accounts of Co-operative Societies in accordance with Section 51 of the Co-operative Societies Act and Regulations thereof;
And whereas Bye-Law 22(k) of the Trintoc (Penal) 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 Maharaj Mohammed & Co. be appointed Auditors of the Trintoc (Penal) Credit Union Co-operative Society Limited for the financial year ending December 31st 2017. Resolution 2 – Distribution of Surplus Whereas the Credit Union has realized a net surplus for the financial year ended December 31st 2016; and whereas Bye-law 12 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 4.5% be declared on members’ shares as at December 31st 2016 and credited to their share accounts; And be it further resolved that any account which is in arrears, the said sum be credited to outstanding loan and interest. Resolution 3 – Maximum Liability Whereas Bye-Law 22(i) of the Society states that the Annual General Meeting can set the maximum liability of the Society:
Be it resolved that the maximum liability of the Society be set at Thirteen Million TT Dollars ($13,000,000). Resolution 4 - Building Fund Whereas Bye-Law 12 (g) of the Society, states the balance of the net surplus may be used at the discretion of the General Meeting for the constitution of a Building Fund.
Be it resolved that $600,000 be transferred from the retained earnings to this building fund which represents portion of the surplus for 2016.
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PROVEN PAST, FUTURE DRIVEN
Products and Services Term / Fixed Deposits Term/Fixed Deposits – where the member agrees to place a fixed amount of money for a specific period of time to receive an interest rate for the duration of that time period. TPCU interest rates vary between 1% - 2% per annum. Deposits are repayable on demand however penalties apply. Shares The Credit Union’s strength is represented by its Share Capital.
Members purchase shares which contribute to the pool of resources, members can then borrow in their time of need. The members accumulated shares increases the total resources of the Credit Union. As a shareholder you are part-owner of the Credit Union, entitled to benefit from all services provided by the Credit Union. Your share balance is considered in your eligibility for loans. Members are required to purchase at least one share (cost $5.00) each month in order to keep an active status. Benefits include: • Free loan protection and life savings insurance on shareholdings. • The use of Shares as collateral for loans • Dividends are paid annually on shareholdings on rates of interest as determined at Annual General Meetings Loans At TPCU, we provide a variety of personal loans for our members designed to help them achieve their short- and
long-term goals: • • • • • • • • •
Vehicle loans Mortgage loans Education loans Vacation loans Debt consolidation loans Carnival loans Life Event loans e.g. for weddings, christenings, funerals etc. Investment loans Insurance loans
• Miscellaneous loans. CUNA Caribbean Insurance is the leading provider of insurance protection and retirement solutions for credit unions and co-operative societies across the Caribbean. Trintoc (Penal) Credit Union has enjoyed a very long
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AGM 2017
ANNUAL REPORT
2016
63rd Annual General Meeting
and beneficial partnership with the company whose focus is to ensure that our members can have access to insurance products that they can trust and afford. As partners with CUNA Caribbean Insurance, we are able to provide a few of the insurance products to our membership. LIFE SAVINGS INSURANCE (LS) • Pre-approved insurance coverage can automatically double your savings upon death. • Your savings are insured up to a maximum of $30,000 • At no direct cost to you • Approval is automatic • You can leave your family an inheritance LIFE SAVINGS PLUS (LS PLUS) TPCU members are eligible to get coverage of a fixed death benefit of twenty-four thousand dollars ($24,000) upon death of the policy holder.
The plan cost one hundred and fifty dollars ($150.00) per annum Benefits to the Member: • Pass on a transition income to a family member • Allow for the lump sum from Life Savings to be invested or used to pay outstanding bills, while LS “PLUS” is income for a predetermined period • Life insurance with no medical or age requirements • Group term life that is affordable • One simple annual payment deducted from dividend or shares • Insurance covers members up to age 80 LOAN PROTECTION INSURANCE (LP) Leave your family an inheritance, not a debt. Enjoy the security of knowing that your family will be taken care of. • Get insurance coverage for your loan of up to a maximum of $60,000 if you become permanently disabled or pass away • Insurance coverage at no direct cost to you • Only your family will receive the benefits. THE FAMILY INDEMNITY PLAN (FIP) The Family Indemnity Plan offers peace of mind during a difficult time by providing a cash benefit to cover funeral expenses in the event of the member or his eligible family members’ death. Coverage is provided for a maximum of six eligible (6) family members as follows:
• • • • •
Member Spouse or significant other Children between the age 1through 25 Members’ parents below the age of 76 (any two (2) persons you choose from your parents and parents-in-law
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PROVEN PAST, FUTURE DRIVEN
Advantages of the Family Indemnity Plan: • No medical questions • One monthly premium covers up to 6 family members (including any two persons you choose from your parents and parents-in-law enrolled by age 76) • Full benefit is paid (per person) every time a claim is made • Payments for claims are made within 2 working days • Lifetime insurance coverage Choose the option that best suits you: Plan PLAN A PLAN B PLAN C PLAN D PLAN E PLAN F
Premium $52.80 monthly $79.20 monthly $105.60 monthly $158.40 monthly $211.20 monthly $343.20 monthly
Benefit $10,000 $15,000 $20,000 $30,000 $40,000 $65,000
We strongly recommend this plan to all members since it provides a measure of relief for bereaved families at a crucial time. THE FAMILY INDEMNITY PLAN WITH CRITICAL ILLNESS (FCI) We are happy to introduce a new solution designed just for you, a living benefit option for FIP Plan F. You can now access $25,000 as a partial payment of the Plan F face amount to help with medical expenses if you are diagnosed with one of the following critical illnesses: • Cancer • Heart Attack • Stroke • Paralysis • Major Burns Benefit • $25,000 – if primary insured/owner is diagnosed with a critical illness • $40,000 – in the event of the primary insured/owner death, the balance of the benefit is payed • $65,000 – in the event of the primary insured/owner death and no critical illness claim was submitted • $65,000 – coverage for all other dependents enrolled Premium • $400 – FIP Plan F with FCI ($343.20 Plan F + $56.80 CI) • The CI Rider premium ($56.80) would be refunded if the member dies before age 75 and did not submit a critical illness claim
Sign up today and give yourself a reason to be comforted in difficult times!
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Errata Sheet Page 49 Receipts and Payments Under PAYMENTS CUNA insurance premium CUNA insurance claim CUNA FIP
2016 $ 673,500 142,342 713,220
2015 $ 639,457 288,000 68,112
Should read CUNA death benefit CUNA insurance claim-FIP CUNA LP/LS Premiums
673,500 142,342 713,220
68,112 288,000 639,225
Page 68 Proposed Budget 2017 Capital Expenditure – Property, c
Budget 2016 240,000
Actual 2016 240,000
Should read Capital Expenditure – Property
240,000
0
Variance Budget 2017 0 145,000
(240,000)
145,000
The $240,000 was picked up as capital expenditure in error it should have been a transfer to the Building Fund Reserve Account (see resolution passed in 2015 below) 2015 Resolution 4 - Building Fund Whereas Bye-Law 12 (g) of the Society, states the balance of the net surplus may be used at the discretion of the General Meeting for the constitution of a Building Fund. Be it resolved that $240,000 be transferred from the retained earnings to this building fund which represents portion of the surplus for 2015.
Page 69 Resolution 3 – Maximum Liability Whereas Bye-Law 22(i) of the Society states that the Annual General Meeting can set the maximum liability of the Society: Be it resolved that the maximum liability of the Society be set at Thirteen Million TT Dollars ($13,000,000). Resolution 4 - Building Fund Whereas Bye-Law 12 (g) of the Society, states the balance of the net surplus may be used at the discretion of the General Meeting for the constitution of a Building Fund. Be it resolved that $570,000 be transferred from the retained earnings to this building fund which represents portion of the surplus for 2016. Should read Resolution 3 – Maximum Liability Whereas Bye-Law 22(i) of the Society states that the Annual General Meeting can set the maximum liability of the Society And whereas regulation 14 (1) of the Co-operatives Societies Act and Regulation of 1971 chapter 81:03 of the Laws of Trinidad and Tobago provides that 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. And whereas members deposits and accounts payables have increased to over the year. Be it resolved that the maximum liability of the Society be set at thirteen million TT Dollars (TT$13,000,000). Resolution 4 - Building Fund Whereas Bye-Law 12 (g) of the Society, states the balance of the net surplus may be used at the discretion of the General Meeting for the constitution of a Building Fund. And whereas the Credit Union shall set aside funds for a new building as we are fast out growing our current facility. Be it resolved that the sum of $600,000 be allocated from the net surplus as at December 31, 2016 to the Building Fund.