ReportBoard of Directors

Board of Director’s Report

The Directors submit their report for the 2019 financial year.

I.

II.

III.

IV.

V.

VI. Successful financial year due in part to: a) Drive to increase equity shares, b) Staff

training in Credit Risk,

and Anti-money Laundering and Compliance, c) Hiring of an Assistant General Managerand d) Attractive mortgage loans package. Credit life insurance introduced to provide added protection for our loan portfolio. ATMs introduced which will allow

members the convenience to access their

funds outside of normal banking hours. New building to be constructed for the Micoud branch within the coming financial year while plans for eventual expansion to the North are being explored. All Committees continue to do a remarkable

job in the interest of helping to manage this Credit Union.

Social responsibility is being met in various forms specifically the annual scholarship program and support for cricket development in the community.

Mr. Dave Charlery

President

Mr. Kester Dornelly

Vice President

Mr. Daniel Jn Baptiste Director

Ms. Rufina Charlery

Treasurer

Mrs. Nigiel Jn Baptiste

Assistant Treasurer

Mrs. Cassienne Samuel

Secretary

Mrs. Agatha Charlery

Assistant Secretary

My fellow owners of the Mon Repos Eastern Co-Operative Credit Union 1968 Ltd. (M.R.E.C.C.U), it is with distinct honor that the Board of Directors graciously submits to you the annual report on our operational performance for the 2019 financial year. It is important for us to understand that it takes tenacity for a small lending facility to survive, or even thrive in an increasingly difficult global financial environment; but that is exactly what our Credit Union has achieved in the past year. To fully celebrate these achievements however, we must appreciate where we were and compare it to where we are currently. The M.R.E.C.C.U appointed its first General Manager in 2002. At the time, it was a one-branch organization with assets of $4.6 million and a staff complement of five (5) persons. Two years ago, the then President Mr. Henry Annelle, projected in his BOD report that we should reach $100 million in assets by 2023. It is intriguing to note however, that in 2020, three years before that projected date, we have realized an asset base of over $103 million, three (3) business branches and 28 staff members. Today, I aim to report on the operations, social responsibilities, and the way forward for this, our institution, which our collective contributions have built and taken us thus far.

OPERATIONS

With immense pleasure, I report that the 2019 Financial Year was another successful one in our Credit Union’s chronicle. We paid interest due on all accounts, including fixed deposits; we covered all our liabilities; we placed enough in the statutory reserves as required by the regulatory authority, and made a surplus. Details will be presented in the Treasurer’s report later. However, we must say that we attained these successes despite market anomalies. The BOD had to respond with several proactive measures, four of which I will elaborate on.

The first was a re-education drive,

strategically and successfully implemented to promote the purchasing of equity shares, a necessity for the stability of the Credit Union. The second measure was training afforded to both Staff and Directors in Credit Risk, and Anti-money Laundering and Compliance. These refreshers and training exercises are essential because they ensure that all Staff and Directors are brought up to par with industry protocols, which serve to further reduce the threat of financial loss. Thirdly, the amendment of our organizational structure to include a Deputy General Manager to provide greater oversight of our Credit Union’s finances. Finally, incredibly attractive and competitive loan packages were offered in 2019, which celebrate today. contributed to the milestones we

LOANSANDDELINQUENCY

We must admit that there were some setbacks in loans for the period under review. The number of actual loans by the end of the first half of the year was below projections. Thankfully, we were able to pick up in the last quarter, following a reduction in the interest rate on mortgage loans. During that time, we also introduced credit life insurance for loans up to $400,000. This insurance provides added protection for our Credit Union’s loan portfolio while at the same time giving members peace of mind, in the event of death or total disability by paying off the outstanding loan balance. It replaces the need for private insurance, which is more expensive, plus payment is due every five (5) years, thus saving you and your family money.

With regards to delinquency, I applaud our Loans and Recoveries Department for their hard work in keeping the delinquency ratio within the stipulated guidelines of 5%. I would like members to understand that it is important for us to service our loans on a timely basis and come in to talk with the staff as soon as there is a change in circumstances that could affect your payments. This is our institution and in order for it to continue to grow, our loans portfolio, which is the largest source of income, must be managed dutifully.

ATM

On another intriguing note, our long-awaited ATM machine was installed at the Mon Repos branch. It is one of four (4) ATM machines shared with the League, Laborie and Choiseul Credit Unions. Testing began in December and use of the machine by members was scheduled to commence in the first quarter of 2020. A total of 2,000 ATM cards was ordered for our members and those of you who have not signed up yet, please do so. I know firsthand how thankful I was for mine during the COVID-19 lockdown. In addition to our ATM, the software for online banking has been purchased and this service will be available to you in 2020.

EXPANSION

We move from speaking about ones and zeros to blocks and sand. The BOD has come to a final decision to begin construction of a Credit Union building for Micoud, on land previously purchased for that purpose. The Covid-19 pandemic caused us to delay construction, scheduled to commence in May of 2020. However, like the rest of the financial world, we are unsure how long the fallout from

the pandemic will last. Be assured though, that construction of this long-awaited building will commence as soon as it is safe to do so.

In 2015 we took the bold step to go National. This has seen exponential profits that we want to continue by further expansion to the north of the island. As we continue to grow, discussions of further expansion will continue but I want to assure you that such expansion will come only after all variables have been meticulously scrutinized for the continued safety and development of the Credit Union. Later in the meeting therefore we will be asking you to confirm by resolution the purchase of lands in Vieux Fort and the north of the island.

SUPERVISORY ANDCREDITCOMMITTEE

The Supervisory Committee did an outstanding job policing the operations of the Credit Union. Without bias, they ensured adherence to all departmental policies across branches. We also must applaud the Credit Committee for their long hours and the many loan approvals which serviced the needs of the “un-bank-able”. Through their efforts, we have transformed the dreams of so many into tangible realities.

EDUCATION COMMITTEE

The Education Committee went out of its way this year with new initiatives such as, Christmas donations to the less fortunate, primary school carol singing and community outreach walks. They have also continued celebrations in recognition of Credit Union month and Jounen Kwéyòl, as well as our esteemed scholarship award ceremony. We thank them and encourage persons to continue supporting the education drive.

I am pleased to announce that the BOD has discussed the expansion of our donation program and plan to increase the annual number from one (1) to three (3) beginning 2021.

SOCIAL RESPONSIBILITY

That takes us to the social responsibilities of the Credit Union. We aim to improve the socioeconomic welfare of the community. On that note, please join me in giving a round of applause to all our scholarship holders. They all continue to attain passing grades; and keep making us proud. The BOD has decided to engage current and future scholarship holders in an orientation exercise at the

beginning of each academic year. This will have the two-fold objective of motivating them for the academic wear while giving them the opportunity to meet their fellow recipients. The first orientation exercise will be held prior to the new 2020 academic year.

Our Pioneers cricket team won two games during the SPL tournament, but missed out of the semifinal by only nine (9) runs. Nonetheless, we had three (3) players called to the national senior trials and two (2) to the Under 19 team. The Credit Union also continued to support the community by donating to schools from the East to the South of the island, as well as donations to the development of sports and other social and fundraising activities in the community.

CONCLUSION

Let me conclude by reminding you that our Credit Union has progressed and continues to do so. We have seen economic growth; our Committees have served diligently, and we have fulfilled our social responsibility. We intend to continue supporting the communities less fortunate and increase the number of times per year. The Micoud branch will be up and running by our next AGM, barring any impediments due to the ongoing Covod-19 pandemic. We will continue to offer competitive packages and quality service to you the owners of this institution as we renew our commitment for a bigger, better tomorrow for members. We implore every member to commit to honor all loans as scheduled so we can wipe out delinquency altogether. The co-operative creed says, “I believe in the fair and just distribution of benefits and in working together with my fellowmen for my good and their good.” This is what we believe, this is what we stand for, and this is what we will do. I thank you.

__________________ Dave Charlery (Mr.)

PRESIDENT