Dubco Annual Report

DUBCO CREDIT UNION LIMITED

Annual Report & Accounts 2008

Credit Union

Together We’re Better

Credit Union Invocation 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 darkness, light; and where there is sadness, joy.

O Divine Master, grant that I may not so much seek to be consoled as to console; to be understood as to understand; to be loved as to love; for it is in giving that we receive, it is in pardoning that we are pardoned, and it is in dying that we are born to eternal life.

Achainí an Chomhair Chreidmheasa A Thiarna, déan díom uirlís de Do shiocháin Áit a bhfuil fuath, lig dom grá a chur; áit a bhfuil dochar déanta, pardún; áit a bhfuil amhras, creideamh; áit a bhfuil éadóchas, dóchas; áit a bhfuil dorchadas, solas; agus áit a bhfuil brón, áthas.

A mhaistir Dhiaga, deonaigh nach niarraim, chomh mór sólás; a fháil le sólás a thabhairt; a bheith tuigthe chomh mór le tuigsint a bheith agam; grá a fháil le grá a thabhairt; oir is ó bheith ag tabhairt a fhaighimíd; is ó phardún a thabhairt a fhaighimíd pardún, agus is trí bhás a fháil a saolaítear sinn don bheatha shíorraí.

Annual Report & Accounts 2008

Contents Directors at 30th September 2008 ........................................ 2 Chairperson's Report ............................................................ 3 Treasurer's Report................................................................. 4 Report of The Board of Directors .......................................... 7 Income and Expenditure Account.......................................... 8 Balance Sheet ........................................................................ 9 Notes to Annual Accounts and Financial Statements .........10 Independent Auditors’ Report .............................................17 Credit Committee Report .....................................................19 Membership (Education & Promotion) & Nominating Committee Report ........................................... 21 Planning and Development Report ..................................... 26 Credit Control Report .......................................................... 28 Audit, Compliance & Insurance Report .............................. 29 Supervisory Committee Report ........................................... 30 New Revenue Reporting Details...........................................31 Staff ..................................................................................... 32

1

Directors at 30th September 2008 George Finglas, Chairperson

Michael Comiskey (Retired Dublin City Council Staff)

(Dublin City Council, Housing & Residential Services)

Tom Corrigan (Retired Dublin City Council Staff)

Vincent Healy, Vice-Chairperson

Noel Cunningham (Dublin Fire Brigade)

(Dublin City Council, Housing & Residential Services)

Harry Rose, Treasurer (Dublin City Council, Housing & Residential Services)

Barry Fennell (Retired Dublin City Council Staff) James Garland (Retired Dublin City Council Staff) Valerie Lynch (Retired Dublin City Council Staff)

Monica Murphy, Secretary (Dublin City Council, Housing & Residential Services)

Carmel McGrane (Retired Dublin City Council Staff)

Sean Casey, Assistant Treasurer

Sean Murray (Retired Dublin City Council Staff)

(Dublin City Council, Law)

John O’Sullivan (Dublin City Council, Housing & Residential Services)

Margaret Muldoon, Assistant Secretary (Retired Dublin City Council Staff)

Board of Directors

2

George Finglas, Chairperson

Vincent Healy, Vice-Chairperson

Harry Rose, Treasurer

Sean Casey, Assistant Treasurer

Monica Murphy, Secretary

Margaret Muldoon, Assistant Secretary

Michael Comiskey

Tom Corrigan

Noel Cunningham

Barry Fennell

James Garland

Valerie Lynch

Carmel McGrane

Sean Murray

John O’Sullivan

Annual Report & Accounts 2008

Chairperson’s Report It is my privilege as Chairman of Dubco Credit Union to present to you the 31st Annual Report.

Since our last report to you the financial sector in which your Credit Union operates has experienced significant turmoil due to the global financial crisis.

I want to assure you that your Credit Union has performed very well during this period and is well placed to face the challenges that this crisis brings.

The financial and other reports included in this report demonstrate the strength of your Credit Union but let me assure you that Dubco • •

•

Has very strong financial reserves and provisions Will be recommending increased returns to members while also increasing the aforementioned reserves and provisions Has adopted prudent provisioning for and writing off of bad debts

At the time of our last AGM and Annual Report to you we as a Board were experiencing internal stress due to an impasse at Board level with respect to a commercial issue. This matter was investigated by professional independent consultants and the matter was resolved based on their report to the satisfaction of your Board and more importantly the Financial Regulator. Since then your Board has adopted the change process outlined to you at the last AGM to ensure that Dubco will continue to :

Give priority to ensuring your Credit Union at all times acts in a prudent and responsible manner in your best interest;

Research and introduce services and products that are of value to you;

Operate an open and voluntary membership within

This focus will ensure that Dubco, with its own resources or combined efforts with other like minded Credit Unions, business partners, etc, will build on the efforts of all former successes over the years since the founding of the Credit Union in 1977 to ensure the excellent brand name that is Dubco will continue and will at all times have the members interest to the forefront.

I wish to take this opportunity to thank the following people: Michael Comiskey for his unstinting service since 1993, whose term as a Director has come to an end and is not seeking re-election to the Board of Directors this year; members of the Board of Directors, the Management and Staff for their efforts during the year; the Supervisory Committee and especially Bridget O’Connor who resigned her position during the year and Raymond MacCarthy, whose term has come to an end and is not seeking re-election to the Committee, for their service throughout the year. Finally I would like to thank you the members for the confidence, not just this year but over the past number of years, you have shown by remaining loyal to Dubco.

Go mbeirimid beo ar an am seo arís.

the common bond and be democratically controlled by you;

Work ethically and in a socially responsible way in the provision of a professional service to all members.

George Finglas Chairperson

3

Treasurer’s Report I am honoured to present to you the Dubco Annual Accounts and Financial Statements for the year ended 30th September 2008, together with my own report and that of the Asset and Liability Management Committee.

OVERVIEW The past year has been fraught with turmoil and volatility on the financial markets seeing some of the largest financial companies collapse with others requiring bail out by national governments or central banks together with the biggest downturn since the Great Depression. Despite this and as a testament to our members, Board and Supervisors, Management and Staff your Credit Union has experienced further growth which can be ascertained in this Annual Report to members.

The main highlights of the year were: - Continued growth in Member Share and Loan balances; - In Excess of â‚Ź3 million returned to members; - Strengthening of reserves and provisions; - Establishment of a Development Fund; - Implementation of the Strategic Plan; - Development of New Savings/Lending Products to be launched in 2009; - Continued success of the Budget Scheme Operation The confidence of you the members in the Credit Union during this time has been a source of encouragement to the Board, Supervisors, Management and Staff to continue in our efforts to provide the best service possible.

REVIEW OF ACTIVITIES In 2008 all major contracts were subjected to competitive quotations and/or tendering processes which will continue so that value for money is achieved.

4

In 2009 the revenue budgeting systems will be enhanced to ensure continued controlling of costs, aid future planning and ensure the continued delivery of value for money services.

Senior Management Team appointments have been made in line with the Strategic Plan and a Development Fund has been established to implement further sections of the Plan.

The purpose of the Plan and these actions is to strengthen the Credit Union and place us in a position to grow the membership and loan book in future years. We are seeking to establish relations with like minded Credit Unions to avail of economies of scale and synergies to save on costs and provide improved services to all members.

During the year an examination was carried out with a view to restructuring our lending practices and our deposit facilities and these will be advised to you in early 2009.

In the current climate the Financial Regulator, the Registrar of Credit Unions and the Central Bank have been increasingly active in monitoring all financial institutions including our own. Earlier this year staff from the office of the Registrar of Credit Unions carried out an inspection of the Dubco investment portfolio and related policies & procedures. They advised following the inspection that they had no issues with how Dubco were investing surplus member funds.

As can be ascertained from the accounts we hold an AIB bond yielding 7.5% that was purchased in 2002 as a long term investment.

We have accounted for the value of this bond in accordance with best accountancy practice and in a prudent way by provisioning for it at market value as at 30th September 2008. It is the

Annual Report & Accounts 2008

Treasurer’s Report

Continued

intention to hold this bond to redemption as it yields a significant premium rate of return.

down in future regarding reserves and bad debt provisions.

The Revenue Commissioners introduced new reporting guidelines for returns to members in all financial institutions including Credit Unions with phased implementation dates, details of which were recently circulated and are included on page 31.

Credit Unions since 1/10/2008 have also to comply with the regulations that apply to the Minimum Reserve System operated by the CBFSAI (Central Bank) whereby Dubco will be holding with the Central Bank as part of our liquid funds an amount equivalent to 2% of our withdrawable savings with maturity of 2 years or less.

The strategy adopted by the Board of Directors and Committee ensured that at no stage in the year were member’s funds at risk. The coming year will see further implementation of the Strategic Plan and the introduction of our new products. To ensure the sound basis of lending it has been agreed to use the Irish Credit Bureau for credit checks to support the loan and credit control policies.

The Financial Regulator also issued guidelines in respect of Accounting, Investment and Distribution Policy and lately urged Credit Unions to introduce procedures for emergency liquidity funding.

The Government guarantee for member shares/deposits up to €100k is now in force but with it will come more and tighter regulation and trust it will bring about a new regulated/statutory SPS (Savings Protection Scheme) which we, together with like mind Credit Unions have sought for some time.

All of this regulation (which we fully comply with) goes to not only safeguard members funds but also ensures that methods of operating are sound and not expose our member funds to undue risks.

Costs of operations were managed so as to minimise our expenditure. Together with our professional advisors, investment income was maximised and our capital base is capable of meeting whatever regulatory requirements are set

Members can rest assured that their funds are well and truly secure as i) Appropriate reserves and insurances are in place; ii) The independent audits are carried out by our auditors, FMB; iii) Oversight is carried out by the Supervisory Committee; iv) The role of the Financial Regulator and the Registrar of Credit Unions includes inspections and monitoring on a regular basis.

MEMBERS RETURNS The Board of Directors recommend to the AGM:The payment of a dividend of 3.25% on all Shares together with a 5% rebate of loan interest paid during year ended September 2008.

• The return on Demand Deposit Accounts has been approximately 3% this year and was credited to accounts on 30th September 2008. It is, henceforth, intended to credit this interest quarterly beginning 31/12/2008. It is also planned that our new Fixed Term products when launched will pay an extra premium over and above the Demand Deposit Account rate.

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ACKNOWLEDGEMENTS

In conclusion I wish to thank you, the members, for your support and confidence in this Credit Union especially given the year we have experienced.

At this time I would like to express my appreciation to:i) The Board of Directors and the Supervisory Committee; ii) The Asset & Liability Management Committee and Consultants, FTI; iii) The Assistant Treasurer, Sean Casey; iv) The Management and Staff; v) Our Auditors, FMB.

Harry Rose Treasurer

for their support and assistance throughout the year.

The Balance Sheet (â‚Ź) 112,109,457

120,000,000

58,241,396

82,980,527

42,657,251

20,000,000

36,827,387

32,042,424

40,000,000

48,863,734

109,405,642

108,814,183

60,000,000

69,885,941

80,000,000

98,746,330

100,000,000

Total Assets

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Savings And Loan Balances at year End (â‚Źm) 100 90 80 70 60 50 40 30 20 10 0 1998

6

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Member Savings Balances at Year End

27

31

34

40

47

58

69

81

89

88

90

Member Loan Balances at Year End

26

30

33

34

38

43

48

52

57

60

66

Annual Report & Accounts 2008

Report of the Board of Directors The Directors present their report for the year ended 30th September 2008.

Principal Activity and Review of Business The principal activity during the year was the operation of a Credit Union under the terms of the Credit Union Act, 1997 as amended. The Credit Union has continued its growth pattern both in terms of loans granted and shares issued during the financial year.

Accounting Records The Directors believe that they comply with the requirements of Section 108 of the Credit Union Act, 1997 with regard to books of account by employing accounting personnel with appropriate expertise and by providing adequate resources to the financial function. The books of account of the Credit Union are maintained at the company's premises at Little Green Street, Dublin 7.

health and safety standards. The Safety, Health and Welfare at Work Act, 2005 imposes certain requirements on employers and the Credit Union has taken the necessary action to ensure compliance with the Act, including the adoption of a safety statement.

Statement of Directors' Responsibilities The Credit Union Act, 1997 requires directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Credit Union and of the income and expenditure of the Credit Union for that period. In preparing those financial statements, the directors are required to: • • •

Results and Dividends The results for the year are set out in detail in this Report. The Directors propose that a dividend of €2,517,950 (3.25%) be paid for the year and a loan interest rebate of €257,500 (5%) be paid to qualifying Members.

Events since the year end Events since year end are set out in Note 14 (Page 15).

Health and Safety The well being of the Credit Union's employees is safeguarded through the strict adherence to

George Finglas Chairperson

select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Credit Union will continue in business.

The directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at anytime the financial position of the Credit Union and which enables them to ensure that the financial statements comply with the Credit Union Act, 1997. They are also responsible for safeguarding the assets of the Credit Union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Harry Rose Treasurer

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Income & Expenditure Account For the year ended 30th September 2008 INCOME Interest on Members’ Loans Bank Deposit Interest & Investment Income Other Income

Schedule 1

TOTAL INCOME

2008 €

2007 €

5,418,218

4,964,531

2,046,354

2,163,862

223,307

228,692

7,687,879

7,357,085

EXPENDITURE Salaries & Staff Costs Management & Other Expenses

Schedule 2

982,431

976,129

2,352,037

2,419,820

Depreciation

343,882

342,524

Provision for Bad and Doubtful Debts

150,000

300,000

Bad Debts Recovered

-53,592

-53,208

Provision for diminution in value of Investments

754,195

0

TOTAL EXPENDITURE

4,528,953

3,985,265

EXCESS OF INCOME OVER EXPENDITURE FOR THE YEAR

3,158,926

3,371,820

Less:

-2,163,458

-1,806,368

-246,519

-351,280

Undistributed Surplus at 1 October, 2007

2,471,294

2,212,122

Transfer from Other Reserves

3,250,000

0

6,470,243

3,426,294

1,170,000

355,000

0

600,000

2,400,000

0

B

3,570,000

955,000

A–B

2,900,243

2,471,294

Dividend Paid Interest Rebate Paid

Add:

TOTAL: Less:

A Transfer to Statutory Reserve Transfers to Other Reserves Transfers to Dividend Reserve

UNDISTRIBUTED SURPLUS AT 30 SEPTEMBER 2008

These Financial Statements were approved by the Board of Directors on the 21st November 2008 Signed on behalf of the Credit Union

8

Treasurer: Harry Rose

Date: 21/11/2008

Member of Supervisory Committee: Tony Harnett

Date: 21/11/2008

Member of the Board of Directors: George Finglas

Date: 21/11/2008

Annual Report & Accounts 2008

Balance Sheet as at 30th September 2008 Notes

2008

2007

€

€

825,687 40,635,019 65,588,202 -925,000 5,162,179 823,370

1,713,256 42,642,567 60,012,486 -775,000 5,499,274 313,059

112,109,457

109,405,642

16

1,315,819 12,132,580 5,075,338 703,066

1,560,710 14,113,774 4,756,189 845,068

15 4(a) 4(b)

77,943,646 7,000,000 7,939,008

73,940,827 5,830,000 8,359,074

1

112,109,457

109,405,642

ASSETS Cash and Balances at Bank Bank Deposits and Investments Loans to Members Less: Provision for Bad and Doubtful Debts Tangible Fixed Assets Debtors, Prepayments and Accrued Income

17

3

TOTAL ASSETS LIABILITIES Bank Loans Member Deposits Member Budget Account Balances Other Liabilities, Creditors, Accruals and Charges MEMBERS’ RESOURCES Members’ Shares Statutory Reserve Other Reserves

TOTAL LIABILITIES

13

These Financial Statements were approved by the Board of Directors on the 21st November 2008

Treasurer: Harry Rose

Date: 21/11/2008

Member of Supervisory Committee: Tony Harnett

Date: 21/11/2008

Member of the Board of Directors: George Finglas

Date: 21/11/2008

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Accounting Policies & Notes to Annual Accounts & Financial Statements For the year ended 30th September 2008 1. Significant Accounting Policies for the year ended 30 September 2008 The results for the year have been determined and the Balance Sheet compiled in accordance with the following accounting policies :1.1 Historical Cost Convention The financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention and comply with financial reporting standards of the Accounting Standards Board, as promulgated by the Institute of Chartered Accountants in Ireland.

The Credit Union has consistently applied all relevant accounting standards.

1.2 Revenue Recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Credit Union and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received.

The following criteria must also be met before revenue is recognised:

Interest on Members' Loans Interest on Members' Loans is recognised when payment is received as specified in Section 110[1] [C] [i] of the Credit Union Act, 1997 (i.e. on a cash basis).

10

Investment Income Investment income is recognised when received or irrevocably receivable.

Investments are recognised at cost less any permanent diminution in capital value but ignoring any increase in capital value or encashment value until realised in the form of cash or cash equivalents.

1.3 Investments Bank deposits and other short term deposits These are valued at the deposit amount plus any accrued interest and interest income is recognised in the income statement on an accruals (time) basis.

Term deposits and fixed interest investment bonds Term deposits and fixed interest investment bonds with fixed maturity dates are valued at the lower of cost or encashment value and interest income is recognised in the income statement when it is received or irrevocably receivable.

Perpetual bonds Perpetual bonds are valued at the lower of cost or market value and interest income is recognised in the income statement when it is received or receivable. Decreases in the capital value of the bond are included in the income statement. Increases which reverse a previous decrease in the value of the bond

Annual Report & Accounts 2008

are included in the income statement and all other increases in excess of the cost of the bond are ignored until the bond is sold.

Unit funds and equity investments Unit funds, property funds and other stock market investments are valued at the lower of cost or market value and dividend or other income is recognised in the income statement when it is received or irrevocably receivable.

Increases in capital value are not recognised until the asset is sold or matures. Decreases in market value are recognised immediately.

Investments with return of capital guarantee Investments with return of capital guarantee are valued at the lower of cost or market value but not lower than the capital guaranteed amount and dividend or other income is recognised in the income statement when it is received or irrevocably receivable.

Bonds with guaranteed capital and variable interest rates Interest income is recognised as received.

Some bonds pay high rates of interest in early years and lower rates in later years. Paying higher amounts in early years reduces (impairs) the capital value of the bond. The capital value of the bond is tested annually for impairment and impairment losses are taken to the income statement. Impairment gains which reverse a previous impairment loss are taken to the income statement with any gains in excess of the cost of the product ignored until the bond matures.

1.4 Depreciation Depreciation is calculated to write off the original cost of the fixed assets, less their

expected residual value, over their estimated useful lives at the following annual rates: Premises Computer equipment Fixtures & fittings Equipment & Motor Vehicles

2% Straight Line 20% Straight Line 20% Straight Line 10/20% Straight Line

The carrying value of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

1.5 Pensions The Credit Union operates both defined contribution and target benefit schemes. The assets of the schemes are held separately from those of the Credit Union in independently administered funds. The pension charges represent contributions payable by the Credit Union to the schemes.

1.6 Bad and Doubtful Debts Bad debts written off are included in other Management Expenses. Bad debts recovered are included in the Income and Expenditure Account. A provision for doubtful debts is made against current loan balances in arrears as at 30th of September 2008 based upon the number of weeks a loan is in arrears.

An additional provision of â‚Ź362,600 is considered prudent by the Board of Directors.

1.7 Dividends and other returns to members Final dividends and other returns to members are accounted for as a liability after they are approved by the members in general meeting.

1.8 Comparative Figures The comparative figures have been rearranged where necessary.

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2. CASHFLOW STATEMENT Opening Cash and Investments

A

2008 €

2007 €

44,355,823

46,623,359

24,995,513

39,357,939

RECEIPTS Members’ Savings (Shares & Deposits) Members' SSIA Deposits

0

1,661,009

Members’ Loans Repaid

28,324,850

29,907,215

Members’ Loan Interest Received

5,418,218

4,964,531

Deposit & Investment Interest Received

1,543,065

2,170,584

53,592

53,208

60,335,238

78,114,486

22,973,888

27,680,564

0

14,602,141

33,900,566

33,256,678

369,220

536,427

2,163,458

1,806,368

246,519

351,280

4,582,545

3,396,354

6,787

258,617

-1,012,628

-1,506,407

C

63,230,355

80,382,022

A+B-C

41,460,706

44,355,823

Bad Debts Recovered TOTAL

B

DISBURSEMENTS Members’ Savings Withdrawn Members' SSIA Deposits Withdrawn Members’ Loans Granted Deposit Interest Paid Dividends Paid Loan Interest Rebate Paid Operating Expenses Fixed Assets Purchased (Increase)/Decrease in Other Disbursements TOTAL Closing Cash and Investments

12

Annual Report & Accounts 2008

3. TANGIBLE FIXED ASSETS

Premises

Computer

Fixtures & Fittings € 176,811 176,811

Equipment & Motor Vehicles € 354,735 3,146 357,881

€ 5,705,702 5,705,702

€ 646,444 3,641 650,085

€ 6,883,692 6,787 6,890,479

Depreciation At 1st October 2007 Charge for year Disposals

774,021 114,114 -

316,337 130,017 -

88,246 31,358 -

205,814 68,393 -

1,384,418 343,882 -

At 30th September 2008

888,135

446,354

119,604

274,207

1,728,300

Net Book Values At 30th September 2008

4,817,567

203,731

57,207

83,674

5,162,179

At 30th September 2007

4,931,681

330,107

88,565

148,921

5,499,274

Cost At 1st October 2007 Additions Disposals At 30th September 2008

Total

4. RESERVES (a) Statutory Reserve

Balance 1/10/07 € 5,830,000

Net Movement Balance 30/9/08 € € 1,170,000 7,000,000

(b) Other Reserves

Balance 1/10/07 € 0 5,425,000 450,000 12,780 2,471,294

Net Movement Balance 30/9/08 € € 2,400,000 2,400,000 (3,250,000) 2,175,000 450,000 985 13,765 428,949 2,900,243

Dividend Reserve General Reserve Bad Debt Reserve Special Reserves Undistributed Surplus TOTAL

8,359,074

(420,066)

7,939,008

Note: Included in the General Reserve is provision for a Development Fund (€300,000); Savings Protection Contribution (€350,000); and provision for future requirements (€1,525,000)

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5. PROPOSED DIVIDENDS AND LOAN INTEREST REBATE TO MEMBERS The Directors recommend the following distributions 2008 Dividend on Shares Loan Interest Rebate

Rate 3.25% 5%

Gross

€ 2,517,950 257,500

2007 Rate % 3% 5%

Gross

€ 2,170,350 248,250

6. HONORARIUM TO TREASURER The Directors recommend that the Treasurer be paid an honorarium for the year ended 30 September 2008 of €9,000.

7. RELATED PARTY DISCLOSURES Included in the annual accounts and financial statements are the following amounts relating to directors and members of the supervisory committee.

2008 2007 € € Aggregate amount of savings held 392,445 426,255 Aggregate amount of loans held 40,724 58,003 The aggregate amount of loans issued during the year was €67,800.

8. INSURANCE AGAINST FRAUD The Credit Union has insurance against fraud in the amount of €4,000,000 in compliance with Section 47 of the Credit Union Act, 1997.

9. CAPITAL COMMITMENTS There were no material Capital Commitments at Balance sheet date.

10. RATES OF INTEREST CHARGED ON MEMBERS LOANS The Credit Union currently charges 0.749% (9.37% APR) per month on outstanding loan balances for standard class loans. The rate per month is 0.666% (8.29% APR) for eligible vehicle loans and is 0.583% (7.22% APR) for eligible house purchase / bridging loans.

11. PENSIONS Pension premiums paid net of employee contributions were €169,695 (€189,974 - 2007).

14

Annual Report & Accounts 2008

12. CONTINGENT LIABILITIES All capital invested in bonds is guaranteed only if held to maturity or redemption. In the unlikely event of early encashment there may be settlement penalties.

In respect of professional fees and the redevelopment of Green Street there are possible liabilities of €225,000

13. BANK LOANS Bank Loans repayable within 1 Year Bank Loans repayable after 1 Year Total per Balance Sheet

2008 € 330,765 985,054 1,315,819

2007 € 330,765 1,229,945 1,560,710

14. POST BALANCE SHEET EVENTS In May 2002 an AIB Bond yielding 7.5% per annum was purchased costing €3,428,750. At 30th September this bond was valued at €2,674,555 and the difference has been provided for by way of provision for diminution in the value of investments in the income and expenditure account. A further valuation as at 21st November 2008 has shown it to have a market value of €1,708,746. This bond is part of the Dubco long term investment portfolio and the intention is to hold it in the longer term.

15. MEMBERS' SHARES Regular Share Accounts Special Share Accounts Medium Term Share Accounts Long Term Share Accounts Total per Balance Sheet

16. OTHER LIABILITIES, CREDITORS, ACCRUALS & CHARGES Revenue - D.I.R.T. Revenue - PAYE / PRSI Car Draw Other Creditors & Accruals Total per Balance Sheet

17. BANK DEPOSITS & INVESTMENTS Bank Deposits Corporate Bond Other Total per Balance Sheet

2008

2007

€ 46,508,401 27,930,204 1,746,926 1,758,115 77,943,646

€ 45,203,424 25,167,428 1,780,531 1,789,444 73,940,827

2008

2007

€ 73,829 4,350 159,210 465,677 703,066

€ 4,122 30,824 144,460 665,662 845,068

2008

2007

€ 37,958,048 2,674,555 2,416 40,635,019

€ 39,211,401 3,428,750 2,416 42,642,567

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SCHEDULE 1 - OTHER INCOME Insurance & Other Commissions Budget Account Fees & Charges

2007

€

€

51,742

46,364

64,098

66,091

Other Income

107,467

116,237

TOTAL PER INCOME AND EXPENDITURE ACCOUNT

223,307

228,692

SCHEDULE 2 – OTHER MANAGEMENT EXPENSES

2008

2007

€

€

Treasurer's Honorarium

9,000

6,000

Repairs, Rates, Security & Office Maintenance

165,222

192,472

Lighting & Heating

23,338

27,826

Stationery & Office Supplies

31,251

25,883

Postage and Telephone

61,938

62,791

Donations and Sponsorship

19,645

13,376

180,450

239,796

Promotion and Advertising

87,004

64,615

Convention, Training & Education Costs

63,610

55,621

Annual Report & AGM Costs

36,080

32,682

Board & Committee Costs

42,605

44,047

Bank Interest & Charges

132,303

133,207

Audit & Accountancy Fees

18,302

9,541

General Insurance

37,015

33,651

517,114

444,317

Legal, Regulatory Professional & Subscription Fees

Life Savings & Loan Protection Insurance Member Deposit Interest

369,220

555,217

Pension Costs

169,695

189,974

Computer & Office Machine Costs

128,972

177,262

Bad Debts Written Off

248,860

86,188

10,413

10,126

0

15,228

2,352,037

2,419,820

Third World Development Contribution Loss/ (Profit) on Asset Disposal TOTAL PER INCOME AND EXPENDITURE ACCOUNT

16

2008

Annual Report & Accounts 2008

Independent Auditor’s Report to the Members of Dubco Credit Union Limited We have audited the financial statements of Dubco Credit Union for the year ended 30 September 2008 which comprise of the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes.

These financial statements have been prepared under the accounting policies set out therein and the accounting standards issued by the Accounting Standards Board and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practices in Ireland).

This report is made solely to the Credit Union’s members, as a body, in accordance with Section 120 of the Credit Union Act, 1997. Our audit work has been undertaken so that we might state to the Credit Union’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Credit Union and the Credit Union’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Directors and Auditors As described in the Statement of Directors’ Responsibilities the Credit Union directors are responsible for the preparation of the financial statements in accordance with applicable law and generally accepted accounting practices in Ireland.

Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board in Ireland and the United Kingdom.

We report to you our opinion as to whether the financial statements give a true and fair view in accordance with Generally Accepted Accounting Practice, and are properly prepared in accordance with the Credit Union Act, 1997. We also report to you whether in our opinion, proper accounting records have been kept by the Credit Union and whether the information given in the Directors’ Report is consistent with the financial statements. In addition, we state whether we have obtained all the information and explanations necessary for the purposes of our audit and whether the Credit Union’s balance sheet and its income and expenditure are in agreement with the books of account.

We read the other information contained in the Annual Report and consider whether it is consistent with the audited financial statements.

This other information comprises only the Directors’ Report and Chairman’s Statement.

We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information.

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Basis of Opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board.

An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Credit Union's circumstances, consistently applied and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

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Accepted Accounting Practice in Ireland, of the state of the Credit Union's affairs as at 30 September 2008 and its income and expenditure for the year then ended and have been properly prepared in accordance with the provisions of the Credit Union Act, 1997.

We have obtained all the information and explanations we considered necessary for the purposes of our audit. In our opinion, proper books of account have been kept by the Credit Union. The financial statements are in agreement with the books of account.

In our opinion, the information given in the Directors' Report is consistent with the financial statements.

FMB Chartered Accountants Registered Auditor

Opinion

Longboat 56 Sir John Rogerson’s Quay Dublin 2

In our opinion the financial statements give a true and fair view, in accordance with Generally

Date: 21st November 2008

Annual Report & Accounts 2008

Credit Committee Report This year has once again been a very busy one for the Credit Committee with significant events occurring later in the year which affected the worldwide financial marketplace. Through the changes adopted in the Strategic Plan the Credit Committee has been able to meet those challenges.

The Credit Committee meets at least once a week, and during the financial year in review in excess of 8,250 loans were issued and almost €34m advanced to Members.

The Committee also continued its review of the Loan Application process as part of the wider Strategic Review Process undertaken by the Board of Directors, which is discussed further in the Planning and Development Committee Report. With this in mind and in light of the changed financial environment, lending policies in Dubco have been reviewed with new procedures and underwriting guidelines being put in place.

It is incumbent on Dubco to demonstrate that it: 1. is a responsible lender 2. has in place controls to safeguard member assets As such members should note that they maybe asked more questions than heretofore on household income and outgoings at loan application stage. Also, membership of the Irish Credit Bureau will be taken up in the near term. Due to the high level of unsecured personal debt amongst the population, the Committee feels that the joining of the Credit Bureau is a sensible approach to safeguarding

the interests of members and will assist in getting better information when assessing loan applications and meeting members borrowing requirements.

Members are also encouraged to think about their own borrowing requirements and to plan and budget accordingly. In the current changed environment we encourage members to be conscious of their personal debt levels.

Dubco like all lenders is required by the Financial Regulator to demonstrate good lending practices which further underpins the aforementioned reviews of procedures, etc.

Why our Members borrow from Dubco Once again we have seen an increase in lending this past year and this reflects well not only on the very competitive rates available from your Credit Union, which include lesser rates for specific purposes such as qualifying house purchase / mortgage redemption and motor vehicle purchase loans1, but also great features such as • No penalties for early repayment • No loan application fees • Free Loan Protection1 insurance on eligible loans, discharging outstanding loan balance in the event of death • Flexible repayment options – weekly, fortnightly or monthly, automatically from payroll2 or by direct debit • Flexible loan terms up to 15 years 1 2

subject to certain terms and conditions payroll facilities subject to employer availability

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Credit Committee Report - Continued The Credit Union Difference As the credit crunch bites, it is evident that members are returning to the Credit Union as a primary source of credit. There is a recognition that the Credit Union is “there” for members.

Members recognise that borrowing from your own Credit Union has clear philosophical, ethical and financial advantages over using the profit driven wider market place institutions. The Credit Union tradition of being a caring and friendly place to do business, where all Members are treated equally in terms of access and rate irrespective of status or income, and where people are put before profit contrasts sharply with the attitude /approach of much of the wider financial sector.

In the changed environment I would also stress the importance of contacting us immediately if your repayment circumstances deteriorate as such circumstances can be facilitated by the Credit Committee and a Member’s repayment history is a factor in considering future loan approvals.

Acknowledgements My sincere thanks to the Members of the Credit Committee who give so much of their time on your behalf. Thanks also to John and all the Staff and in particular Martina Kennedy, Catherine Healy, Jenny Staunton and David McAuley who assisted the Credit Committee so well throughout the year.

Loans Readily Available The Credit Union is very much open for lending unlike some competitors in the marketplace.

Therefore I would urge you all to approach Dubco in the first instance with any borrowing needs you may have. With the financial resources available to Dubco all applications are considered with over 97% approved. With our new Loan Team in place we expect that loan approval will now be even quicker.

On behalf of the Committee may I wish you all a happy and peaceful Christmas and thank you all for your support, confidence and understanding over the last year.

Thomas Corrigan Committee Chairperson

Loan Value Analysis for Year Ended 30/9/08

20

Annual Report & Accounts 2008

Membership (Education & Promotion) & Nominating Committee Report In September 2008 a new committee structure was approved by the Board of Directors. The Membership & Nominating Committee includes the functions of the following previously constituted committees:

Nominating ❏ To engage in the on-going planning of the Credit Union’s operations (with respect to nominations for incoming Directors & Volunteers)

Education & Promotion ❏ To approve applications for membership ❏ To organise relevant training courses for Directors and Officers ❏ To educate members on the ethos and nature of Credit Union ❏ To promote Credit Union Services to existing and potential members ❏ To deal with various sponsorship/donation requests

Membership 528 new members joined Dubco in the year under review, bringing the total membership at year end to 10,413. As part of our 2009 focus it is our intention to maximise membership levels within our core common bond, which includes: ❏ Staff and Retirees of Dublin City Council ❏ Administrative Staff of the CDVEC (City of Dublin Vocational Educational Committee), DIT (Dublin Institute of Technology) & Impact Union

❏ Staff of Local Government Services Boards, National Educational Welfare Board ❏ Staff of Dubco Credit Union Members of a qualifying member’s family residing with them are also eligible for membership of Dubco and it is our intention to maximise family membership.

Promotion & Sponsorship Dubco Credit Union is committed to actively supporting the communities in which our members live and work. We will provide resources to charitable, educational, and social outreach efforts that parallel our mission of financial education, social inclusion, and building better communities. During the 2008 financial year Dubco granted sponsorship and support of €20,000. The various initiatives supported were in line with the operating principles adopted by Dubco, specifically relating to on-going education (the Credit Union aims to educate its members, staff and the general public in the wise use of credit), co-operation among cooperatives and social responsibility.

The Car Draw continues to be very well received among the membership and again this year the prize fund increased with members winning cars-n-cash of almost €425,000.

Looking Forward In 2009 the Committee looks forward to the further implementation of Dubco’s strategic plan. Particularly we look forward to the development of marketing strategies focusing on

21

Membership (Education & Promotion) & Nominating Committee Report Continued the new products and services expected to be launched in the first quarter of the year. The continued development of Dubco’s products and services will remain a focal point for the Committee; we will continue to strive to identify, anticipate and satisfy member needs in an ethical and profitable manner.

As always, the education of members in the wise use of credit and the benefits of Credit Union membership remains a priority for Dubco. We will also strive to ensure members, and their families, are aware of the various initiatives Dubco support and are aware of how to apply for such sponsorship if appropriate. We look forward to the further development of member communications and will continue to update the membership via newsletters, which we will endeavour to produce quarterly.

Appreciation I would like to thank the various city council staff / sections for assisting with and facilitating Dubco inserts into First Post and uploads to DubNet. Also in the year under review Dubco and Dublin City Council further built upon their relationship and undertook joint communications initiatives in

22

the form of the You & Your Money publication and the 2009 Dubco / Dublin City Council Pocket diary and in this regard I would like to thank the working groups on both of these projects.

As always at this time of the year we remember our deceased Members, colleagues and friends, and sadly this year 64 passed to their eternal reward. Ar dheis DĂŠ go raibh a nanamacha.

Noel Cunningham Committee Chairperson

Annual Report & Accounts 2008

Rest in Peace NAME Edward Bethel Mark Branagan Philip Campbell Brendan Carey Mark Carney Norman Carroll Elsie Clarke Gerard Condron

Edward Corcoran George Coughlan George Cullen Patrick Cullen Thomas Cunningham Joseph Cunningham Anthony Daly Patrick Delaney Pierce Doyle Marie Doyle Patrick Duffy Joseph Duffy

Brian Dunne Richard Dwyer Tony Finlay

Mary Fitzgerald Maurice Flanagan Mary Imelda Flanagan Edward Flinter Gerard Flynn Martin Grehan Brendan Hall Padraig Hardiman

LOCATION Retired Staff, Dublin City Council Dublin Fire Brigade Dublin Fire Brigade Dublin Institute of Technology Parks Department, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Waterworks Department, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin Fire Brigade Retired Staff, Dublin City Council Retired Staff, Dublin City Council Family Member Rates Department, Dublin City Council Cleansing Department, Dublin City Council Retired Staff, Dublin City Council Family Member Cleansing Department, Dublin City Council Family Member Retired Staff, Dublin City Council Retired Staff, Dublin City Council Dublin Institute of Technology Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council

NAME George Harrison Thomas Healy Sylvia Holmes James Kirwan Patrick Lawlor Thomas Lynam Patrick Maguire Maria McCarthy David McCulloch Joseph McLoughlin John McQuillan Mary Meagher Mary Munroe Terence Murphy Gerald Murray Liam O'Briain Niall O'Connell Edward O'Connor Patrick O'Connor Gerard O'Donnell Bridget O'Shea Patricia Price Patrick Reid Fergus Ryan Olive Ryan James Sargent John Tiernan Michael Walsh William Walsh Patrick Walsh Agnes Watson Louise Whelan James Whelan

LOCATION Retired Staff, Dublin Fire Brigade Retired Staff, Dublin City Council Cleansing Department, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Blanchardstown Institute of Technology Retired Staff, Dublin City Council Retired Staff, CDVEC Retired Staff, Dublin City Council Family Member Family Member Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Dublin Fire Brigade Sewers & Main Drainage, Dublin City Council Retired Staff, Dublin City Council Internal Audit, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Family Member Retired Staff, Dublin Fire Brigade Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council Family Member Retired Staff, Dublin City Council Retired Staff, Dublin City Council Retired Staff, Dublin City Council

23

Co-operative & Sponsored Events 2007/8

L to R: Mary MacSweeney, Partnership Office, Kathy Quinn, Dublin City Council Head of Finance, George Finglas, Dubco Chairperson, former Lord Mayor, Cllr. Paddy Burke, John Kelly, Dubco Manager and Clodagh McCarthy, National Adult Literacy Agency at the launch of You & Your Money publication, 30th June 2008.

Former Lord Mayor, Cllr. Paddy Burke, speaking at the launch of You & Your Money in City Hall, 30th June 2008.

Dubco Chairperson, George Finglas, presents the Dublin Fire Brigade GAA team represented by Martin Williams and Robbie Kane, with new jerseys.

24

Tom Johnson (Incoming Captain of DLAGS) receiving his prize for the Dubco sponsored Match Play 2008 from George Finglas (Chairperson of Dubco) in the presence of Kevin O'Reilly (Outgoing Captain).

John Reilly of Dublin Fire Brigade is presented with the keys to his new Nissan Note (December 2007) by George Finglas, Chairperson.

Annual Report & Accounts 2008

Co-operative & Sponsored Events 2007/8

L to R: Siobhan Maher, Dublin City Council Press Office, William Harnett, Dubco Supervisory Committee Chairperson, Tom Doherty, QMP Publishist, former Lord Mayor, Cllr. Paddy Burke, John Kelly, Dubco Manager, City Manager John Tierney & his wife, Sadie, at the Lord Mayor’s Gala Christmas Concert – 12th December 2007 at The Mansion House.

Below are action shots from the event.

25

Planning & Development Report As you are aware the financial environment has suffered a number of unprecedented shocks in the last number of months. Dubco through the implementation of its Strategic Plan has adopted policies and procedures which have assisted Dubco to emerge unscathed during the initial period of this crisis. Our belief is that recent events will lead to increased regulatory and reporting requirements and Dubco will need to be ready for those challenges.

3. New staff structure with the Finance and Marketing sections being given additional resources

Set out below is a summary of the work carried out by this committee over the last twelve months.

During the period a review was performed on the Foreign Exchange service as provided and it was found that a. Foreign exchange rates from Dubco were no longer competitive for members

STRATEGIC REVIEW A meeting was held in Portlaoise in the Spring at which the Strategic Plan was adopted. As a result the new management structure has been agreed and appointments made. A new Operations Manager, Marketing and Services Development Manager and Head of Finance function have been appointed. As the environment for Credit Unions will change over the next few years, with increased regulation and compliance issues, these appointments will help Dubco to meet its legal and regulatory reporting requirements along with giving a professional service to members.

Amongst the changes since the adoption of the Strategic Plan have been: 1. Agreed new committee and corporate governance structures 2. Adoption of new loan procedures and policies

26

4. Existing IT platforms examined and areas for efficiency increases identified through better use of IT systems 5. Planning for audit and compliance requirements

b. The provision of the service was not cost efficient as only a small number of members utilised the service since the advent of the Euro and international use now of ATM/Laser cards when members travel.

As a result it was decided that the Foreign Exchange service would cease.

PARTNERSHIP WITH DUBLIN CITY COUNCIL Dubco’s special and mutually beneficial relationship with Dublin City Council is well established with meetings between Dubco & Dublin City Council continuing, in order to ensure the existing relationship is built upon and other avenues of co-operation / support are explored.

During the year Dubco in co-operation with Dublin City Council prepared a Financial

Annual Report & Accounts 2008

Planning & Development Report Continued Literacy booklet. This booklet has been well received amongst the Dubco membership.

REPRESENTATION Dubco is currently reassessing its position regarding membership of the representative organisations. In the meantime the Board utilises the services of expert organisations to assist it with issues as they arise.

face more intense scrutiny and regulation as the credit crunch impacts all sectors of the financial services world. We expect a busy year in 2009, however, our belief is that through the adoption of the strategic plan, we are equipped to meet those challenges.

Thanks to John Kelly and his staff for their support to me and the committee over the last 12 months.

Premises The maintenance of both Capel St and Green St premises is ongoing. With regards to Green St , a project is underway to address issues which members and staff have highlighted. This project will be ongoing in 2009 and members should see measures introduced which facilitate professional customer service and increase confidentiality.

Vincent Healy Committee Chairperson

CONCLUSION Finally, the implementation of the Strategic Plan over the coming year will be a tremendous challenge to all of us as we work together to take the Dubco success story forward into the future. It is anticipated that Credit Unions will

27

Credit Control Report Since the re-organisation of the Dubco structure the Credit Control Committee is now a sub committee of the Asset and Liability Management Committee but continues to ensure the protection of the Credit Unions main asset – its loan portfolio which is now comprised of almost €66m to over 5,000 members. The committee carries out this responsibility by ensuring members honour their commitments as agreed on their Credit Agreement.

We congratulate all borrowers who are honouring their commitments and as we are acutely aware that member circumstances change we urge members who are having genuine difficulty with making their repayments to contact our Credit Control Staff.

All genuine cases will be dealt with most sympathetically recognising the changed circumstances.

Bad debts totalling €248,860 for 23 members were written off this year in accordance with policies adopted by the Credit Union and best practice. While the write off is an increase on previous years it should be noted that it is less than four-tenths of 1% of the loan portfolio and that all the debtors are being vigorously pursued through the channels available to the Credit Union. Judgements or judgement mortgages are already in place for 8 of these debtors.

Dubco takes a serious view of defaulters, using the following measures to recover the funds depending on the level of arrears / non-contact: • Issuing of reminder letters to Members who have more than three weeks’ arrears of loan / interest repayments.

28

• •

Direct contact with Members at their home or place of employment.

Pursuit of debts through the necessary legal channels, ranging from requesting our solicitors to issue pre-legal proceeding demands to defaulting Members, to the instituting of full legal procedures resulting in the costs involved at this stage being passed on to the delinquent Member.

Again this year we had successful recovery of previously written off debts of €53,592 demonstrating our commitment to pursue these debtors to recover the savings of all other members they chose to keep for their own benefit.

As the size and scale of individual loans and that of our loan book in general is increasing we again take the opportunity to increase our bad debt provisions and reserves to provide against possible future bad debt write offs. This measure not only ensures our full compliance with Regulatory guidelines but further protects the Credit Union going forward.

In closing I wish to extend my thanks to the Credit Control team members, new and former, for all their assistance to the Committee during the past year.

George Finglas Chairperson

Annual Report & Accounts 2008

Audit, Compliance & Insurance Report Under the new governance framework of the Credit Union the Audit Committee will undertake the main roles of compliance, insurance and internal audit in conjunction with the Supervisory Committee, Auditors (FMB) and Consultants as required.

All Credit Union insurances and fidelity bonds for liability and property cover were reviewed and renewed to protect the Credit Union’s assets and to comply with all statutory obligations.

Data protection and money laundering policies and documentation are also fully compliant.

The main roles and responsibilities of the Audit Committee will include: •

• •

To ensure that proper systems, procedures, controls, accounting and reporting are in operation with a view to prevent fraud, negligence and serious error To have any alleged irregularities fully investigated To satisfy itself that all legal, regulatory and compliance requirements are adhered to

Sean Murray Chairperson Audit Committee

Over the coming year the Audit Committee will commence a review of internal procedures. This programme of work will concentrate on the statutory obligations of the Credit Union with the objective of achieving best practice. At present, Dubco is in the process of investigating Compliance and Risk Management Systems in conjunction with other like minded Credit Unions.

29

Supervisory Committee Report The Credit Union Act, 1997, requires the appointment of a Supervisory Committee which will oversee Directors in the performance of their functions, examine books and documents of the Credit Union and verify a sample of members’ balances.

The Dubco Supervisory Committee (Raymond MacCarthy, Secretary, Bridget O’Connor, myself and latterly Aidan Mullen, who was co-opted) held regular Committee meetings over the past year and attended all monthly and special meetings of the Board of Directors. We also held Statutory Quarterly meetings with the Board of Directors to review the performance of their functions.

The Supervisory Committee has carried out a number of checks and verifications within the Credit Union and found that the relevant records are being maintained in accordance with legislation and the Rules of your Credit Union.

During the past year, ten percent of Members

30

were circulated with audit verification notices for the purpose of verifying their account balances.

Approximately one third of those members responded and confirmed that all account details were in order. The Committee would like a full response from Members and urge you to reply to any verification notices and to raise any matters of concern or suggestions with the Committee.

One or more Committee members was in attendance at all car and other draws during the year and verified that correct procedures were used. The Committee would like to thank Bridget O’Connor for her loyal service on the Committee, as well as the Management and Staff of your Credit Union for their help and cooperation throughout the past year. .

William A Harnett Chairperson Supervisory Committee

William A Harnett,

Raymond MacCarthy,

Aidan Mullen

Bridget O'Connor

Chairperson

Secretary

Co-opted July 2008

Resigned July 2008

Annual Report & Accounts 2008

Revenue Reporting Credit Unions are obliged to report annually details in respect of dividend or interest payments to members in excess of €635; similar details also have to be reported on the first relevant dividend or interest payment on new accounts opened after 1st January 2008, irrespective of the size of the payment. These returns will include the following information: • gross interest or dividend payment • name • address • date of birth (tax reference number to replace date of birth for accounts opened after 01/01/2009) Also, from 1st January 2009, Credit Unions (like all financial institutions) will have to request PPS Numbers from members, and have them verified, when new accounts are opened. The new account and PPSN provisions will apply to existing members opening new accounts, for example if you open a deposit account in addition to your existing share account we will require your PPSN.

When will the reporting begin?

Dividends on share accounts existing at 01/01/2008 The first dividend payments to be reported will be those credited in respect of the Credit Union year ending 30 September 2009 and greater than €635. This first report on existing share accounts will be made in March 2010.

Interest on deposit accounts existing at 01/01/2008 Reporting for deposit interest payments will begin with payments made to deposit accounts during 2008 and greater than €635. This first report on deposit interest will be made in March 2009.

Dividends on new Share accounts For share accounts opened in 2008, the first relevant payment will be the dividend paid for the Credit Union year ended 30th September 2009 (i.e. not 2008). After this first payment is reported, further reporting will only take place if dividend for this share account exceeds €635.

This first report on new share accounts will be made in March 2010.

Interest on new deposit accounts For deposit accounts opened in 2008, the first relevant payment will be the first payment of interest made on the account. In most cases this was the interest payment for the Credit Union year ended 30th September 2008. After the first payment is reported, further reporting will only take place if interest for this deposit account exceeds €635. This first report on new deposit accounts will be made in March 2009.

Some important points to note: • •

•

•

Regulations do not apply to Loan Interest Rebates.

Regulations do apply to all share accounts (Regular, Special and Special Term) and to all deposit accounts.

The amounts to be reported are the gross dividend or interest, i.e. before deduction of DIRT (if applicable).

Reporting is on an account basis and not on a member basis, i.e. where a member has more than one account, these do not have to be added together, but are reported separately where the aforementioned requirements are to be complied with.

For further information contact the office or visit our website.

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Staff

John Kelly

David McAuley

Nicole Egan

Ben Gillick

Martina Kennedy

Manager

Operations Manager

Marketing & Services

Accounts Administrator

Projects Co-ordinator

Development Manager

Ingrid Lee Kin

Ann Behan

Janice Carter

Breda Chapman

Paul Corscadden

Lee Dowling

Ger Duffy

Olive Egan

Catherine Healy

Member Services Administrator

Ingrid Curley

32

Bronagh Maguire

Jane McBride

Michelle McLoughlin

Stacey Ryan

Jenny Staunton

Carol Walsh

Mary White

Caroline Wilkinson

Annual Report & Accounts 2008

Dubco Credit Union

*Available as part of the MEMBERSTM Financial Services Program in association with CMG (Ireland) Ltd

Registered Office Little Green Street, Dublin 7.

Main Bankers AIB Bank plc., 126 Capel Street, Dublin 1.

Solicitors Carney McCarthy & Co, 1 Clonskeagh Square, Dublin 14.

Auditors FMB, Chartered Accountants, Longboat, 56 Sir John Rogerson’s Quay, Dublin 2.

OFFICE HOURS: 10.00am – 4.30pm Monday to Friday Tel: 887 0400 Fax: 887 0499 Email: info@dubco.ie Web: www.dubco.ie Dubco Credit Union is regulated by the Financial Regulator

33

Dubco Credit Union Limited Tel: 887 0400

Little Green Street, Dublin 7 Fax: 887 0499 Email: info@dubco.ie

Web: www.dubco.ie

Together We’re Better Credit Union