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1GUT CREDIT UNION | 2018 Annual Report

"Nurturing goals, fulfilling dreams"

Vision, Mission, Values

Corporate Information

Board of Directors

Committees

Notice of 35th Annual General Meeting

Standing Orders

35th Annual General Meeting Agenda

President’s Message

Minutes Of The 34th Annual General Meeting

Board of Directors’ Report

Credit Committee’s Report

Supervisory and Compliance Committee’s Report

Budget

Pearls Ratio

Auditor’s Report

Member Bill of Rights

Resolutions

Terms of Office

Credit Union Prayer

Credit Union Song

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Table ofCONTENTS

2 GUT CREDIT UNION | 2018 Annual Report


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WHO WE ARE




MAIN OFFICECnr. Grenville & St. John’s Streets,St. George’s, Grenada, West IndiesP.O. Box 2040Tel: (473) 440-1354 Fax: (473) 435-6950E-mail: [email protected] [email protected]: www.gutcu.com

GRENVILLE BRANCHBen Jones StreetGrenville, St. AndrewTel: (473) 438-3526Fax: (473) 438-4814

GRAND ANSE BRANCHLe Marquis ComplexGrand Anse, St. GeorgeTel/Fax: (473) 439-7228

SUB-OFFICESVICTORIAQueen Street, Victoria, St. MarkTel/Fax: (473) 437-1502

CARRIACOUMain Street, Hillsborough, CarriacouTel/Fax: (473) 443-7676

AUDITORSPannell Kerr Forster

BANKERSGrenada Co-operative BankRepublic Bank RBTT

SOLICITORS/ATTORNEYS Alban John – Scott Street, St. GeorgeLindo & Co. – Hillsborough Street, St. George

EXECUTIVE OFFICERSPresidentANDRE MARTIN (MR.)

Vice PresidentJOSLYN AUGUSTUS LA TOUCHE (MRS.)

SecretaryMILIORA DA BREO (MRS.)

Assistant SecretaryEDISON FRANCIS (MR.)

TreasurerMIGUEL FORTUNE (MR.)

Assistant TreasurerKENRICK MC SWEEN (MR.)

MANAGEMENTGeneral ManagerRETESHA SMITH-BOYD (MRS.)

Deputy General ManagerRANDY FRANK (MR.)

Compliance ManagerJACQUELINE SALFARLIE (MS.)

Operations ManagerPAULA MC MEO (MS.)

Communication/Marketing ManagerCAMILLE GODDARD (MRS.)

Loans ManagerNICOLE ROBERTS (MS.)

Manager - Grenville BranchALICE MC QUEEN (MS.)

Manager – Grand Anse BranchANGELA JAMES (MRS.)

CORPORATEInformation

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JOSLYN AUGUSTUS LA TOUCHEVice-President

EDISON FRANCISAssistant Secretary

CORNICE JAMES MIGUEL FORTUNE Treasurer

FINLEY JEFFREY FLORINA THOMAS

KIM PARRIS

ANDRE MARTIN President

LOUIS WILLIAMS

KENRICK MC SWEEN

KEVIN ANDALL

MARY NOEL

MILIORA DA BREOSecretary

DIRECTORSExecutive Officers

Board Members





ASHA BAILEYLEON RADIXChairperson

GORDON WELSH

NATALIE RUFFIN SOBRINA LA ROSEChairperson

IRVA ALEXANDER

JENNER JAMES

NERISSA CELESTINE-JAMESANANIRA HERRY

CATHYANN ALEXANDER-PIERRE

COMMITTEESCredit

Supervisory & Compliance





TO: All Members of the G.U.T. Co-operative Credit Union Ltd.

FROM: Secretary: G.U.T. Co-operative Credit Union Ltd.

SUBJECT: 35th Annual General Meeting

DATE: June 14th, 2019

Fellow Members,

In compliance with Article 42 (1) of the Co-operative Societies Act No: 8, 2011, notice is hereby given that the 35th Annual General Meeting of the G.U.T. Co-operative Credit Union Limited will be held at the Grenada Trade Centre Annex, Morne Rouge, St. George. The meeting commences at 2:00 p.m. Friday 28th June, 2019 for the following purposes:

» To receive the Report of the Board of Directors and other Committees for 2018

» To receive the Audit Financial Report for 2018

» To elect members to the Board of Directors and other Committees

» To discuss and approve the Budget for 2019

» To appoint auditors and fix their remuneration.

» To take action on such matters as may come before the 35th Annual General Meeting.

All members are invited to attend.

Yours sincerely,

________________Miliora Da BreoSecretaryBoard of Directors

NOTICE OF 35TH ANNUALGeneral Meeting





Opening SessionCall to order

Invocation

Silent Tribute

Greetings from Sister Organizations

Remarks:

» President

» GCLL

» GARFIN

Business SessionAscertainment of a Quorum

Resolutions

Reports

» Adoption and Discussion

» Board of Directors

» Credit Committee

» Supervisory and Compliance Committee

» Financial

— Auditor’s

— Budget

— Pearls Ratio

Minutes of the last Annual General Meeting

Nominating Committee’s report and elections

General Business

Conclusion

35TH ANNUAL GENERAL MEETINGAgenda



1.


(a) A member shall stand when addressing the Chair

(b) 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 Chair to do so, after which he/she shall immediately take his/her seat.

3. No member shall address the meeting except through the Chairman.

4. A member shall not speak twice on the same subject except:

A. The mover of a motion who has a right to reply

B. He/she rises to object to or to explain (with permission of the Chair)

5. No speeches shall be made after the question has been put and carried or negated.

6. The mover of a procedural motion (adjournments, postponement, lay on table) shall have no right of reply.

7. A member rising on a point of order shall state the point clearly and concisely. (A point of order must have relevance to the Standing Orders).

(a) A member shall not call another member to order but may draw the attention of the Chair to a “Breach of Order”

(b) In no event can a member call the Chair ‘to order’

9. A question should not be put to vote if a member desires to speak on it or move an amendment to it – except that a “Procedural Motion”, “the Previous Question”, “Proceed to the next business” or the closure “That the question be put now”. May be moved at any time.

10. Only one amendment shall be before the meeting at one and the same time.

11. When a motion is withdrawn, any amendment to it fails.

12. The Chairman shall have in addition to his ordinary vote, a “casting Vote” in the case of equality votes.

13. If there is an equality of votes on an amendment, and if the Chairman does not exercise his casting vote, the amendment is lost.

14. The Chairman shall make provisions for the protection of members from vilification (personal abuse).

15. No member shall impute improper motives against the Chairman, Board of Directors, Officers, or any other member.

8.

STANDINGOrder




DR. ANDRE MARTINPresident

I wish to congratulate and extend heartfelt thanks to the members of staff of the GUTCCU, particularly the General Manager, Mrs. Retesha Smith- Boyd, who have risen above the blockages or resistance to consistently secure a sound financial position for the Credit Union. She has been instrumental in coordinating the Board of Directors’ vision with the dedicated efforts of the staff, Credit and Supervisory Committees to lead the Credit Union to position of high financial achievement.

There appears to be a global trend of movement away from principles such as honesty and integrity. We have observed the leader of the largest economy in the world being faced with numerous challenges, which suggests the absence of strong moral principles and practices. The banking sector has experienced the movement of customers from banks to credit unions. The message is clear from the customers. When your organization lacks probity and excessively practices unscrupulous behavior, people will seek alternatives ways to secure their finances.

It is imperative that the GUTCCU members become conscious of the

operations and operators within the credit union. We must make a stronger effort to attend the Annual General Meeting and exercise our democratic right to elect officers who share and uphold our core values.

The members and staff must lend support to all policies and practices that protect the good name or image of this noble institution, bearing in mind that there are also legislations and regulations that require members to give pertinent information, and for staff to ensure compliance at all times.

Additionally, in a fast-paced growing sector, we must be mindful of the challenges that confront us and change as the need arises. Growth is the process of responding positively to change. We all must ensure that our response to the technical, human and regulatory challenges lead to growth. The GUTCCU is a multi-million dollar financial institution and it requires a shift in thinking at all levels.

As President, I am proposing that we consider the research findings on effectiveness in business operations and organizational behavior. This points to the suggestion that we break away from traditional methods

with regards to governance. I wish to advocate that the number of directors and the specializations of these directors be considered in going forward. We must also contemplate the advent of new technology to keep abreast with compliance, the security and safety of our staff and of financial information with regards to location, hardware and software, and most importantly the professional development of the staff as they are the driving force behind the technology and the services offered by the credit union.

May God continue to bless our noble institution and may we continue to place our members first, as we strive towards the achievement of our vision: to become the institution of choice for all those who can benefit from our operations.

...................................Dr. Andre MartinPresident

PRESIDENT’SMessage

Greetings Brothers and Sisters:





1.0 CALL TO ORDER

1.1. The Chairman of the Open Session Ms. Joslyn Augustus La Touche, called the 34th Annual General Meeting of the Grenada Union of Teachers’ Credit Union to order at 2:26 pm. A warm welcome was extended, and she apologized for the late start.

1.2. Persons at the head table: Mr. Andre Martin, president of the GUTCCU, Mr. Phillip Telesford, president of the Grenada Co-operative League, and Mr. Alister Phillip, representative from GARFIN, were introduced to the meeting.

2.0 PRAYERS

2.1. The invocation was led by Ms. Angela James and was followed by the Credit Union’s prayer.

3.0 OPENING REMARKS

3.1. The chairman in her opening remarks highlighted the theme “Nurturing Goals, Fulfilling Dreams”, and briefly expounded on its relevance and its relations to the goals of the credit union. A special welcome was extended to Mr. Samuel Britton, former General Manager and other foundation members. Members were encouraged to participate in the decision making of the credit union.

3.2. A minute of silence was then observed for the members who would have passed.

3.3. Fraternal greetings were read on behalf of the Ariza Credit Union with reference to the theme Nurturing Goals, Fulfilling Dreams. Highlighted was the fact that the GUTCCU’s commitment to serving has had a ripple effect on the society, the credit union was commended for its hard work in building human capital, innovations, and commitment to training of staff and members.

4.0 PRESIDENT’S REMARKS

4.1. In his speech the president, Mr. Andre Martin, highlighted the following:

» Commendation and expression of gratitude to the members of the Board of Directors (BOD), committees, sub-committees, management, and staff of the GUTCCU for their dedication and hard work.

» Signs of growth shown by the GUTCCU in terms of membership, surpluses, and financial assets.

» The need for members to become more cognizant of the operations of the credit union and the various regulatory reforms, and to empower themselves with knowledge and skill that will enable them to make informed decisions which will affect the GUTCCU positively.

» GUTCCU should be mindful of the underlying principles of the movement where there is cooperation among cooperatives. He further highlighted that credit unions should work together to ensure a positive future for the movement.

MINUTES OF THE 34TH ANNUALGENERAL MEETING

Of the Grenada Union of Teachers’ Co-operative Credit Unionheld at the Grenada National Stadium on the 23rd May, 2018



» In closing the president implored upon members to continue attending the AGM of the GUTCCU since it is where important decisions are made. He encouraged them to be loyal to their credit union and continue making it their financial institution of choice.

5.0 ADDRESS: GRENADA CO-OPERATIVE LEAGUE

5.1. The president of the Grenada Co-operative League Limited, Mr. Phillip Telesford, noted the importance of the movement and assured members that the League takes AGMs seriously.

He further highlighted that:

» The League understands the importance of working together and the value of each credit union and its members.

» The theme of the GUTCCU is very pertinent in this season where credit unions are expected to build a platform to ensure the prosperity of members.

» The GUTCCU must be commended for its successes over the year 2017; its consistent signs of growth in all key areas.

» Credit Unions in Grenada are faced with many challenges especially the implementation of

IFRS9 and that the Grenada Co-operative League will give all its support to that this year.

» Management should make prudent decisions in key areas like investments, and compliance to regulations which will guide the credit union movement.

6.0 REMARKS: GARFIN

6.1. Representative from GARFIN Mr. Alister Phillip addressed the meeting. In his remarks, Mr. Phillip highlighted the following:

» The Credit Union movement is increasing in membership and GUTCCU’s assets have put it in a position to have a substantial political voice in shaping and protecting the future of the industry.

» The importance of compliance with existing regulations which must be comprehensive, robust and effective. He also implored the credit union to be aware of its competitors and the potential harm of de-risking.

» The plans of GARFIN to engage the Financial Intelligent Unit (FIU) and the credit unions to ensure efficiency within the movement.

New members at Welcome Meeting



» The importance of strategizing by the Board and Management to ensure that members’ assets are safe and to strengthen the areas of weaknesses.

7.0 VOTE OF THANKS

7.1. Ms. Florina Thomas, member of the GUTCCU’s Board of Directors, expressed gratitude to all who had made a contribution to the Annual General Meeting.

8.0 GIVEAWAY (No:1)

8.1. Ms. Camille Goddard, the Communication/Marketing Manager conducted a draw for the person who arrived first for the meeting (early bird). Ms. Denise J. Lewis was the winner of a spa treatment at Nirvanna Health and Treatment Clinic.

9.0 PRESENTATION BY THE LOAN’S DEPARTMENT

9.1. The presentation was done by Mrs. Matonia Cox-Munroe, Loans Supervisor of the GUTCCU. In her presentation she highlighted the following:

» The importance of making sound decisions when choosing a loan.

» The importance of enquiring about loan payments, requirements for loans, and the various fees.

10.0 GIVEAWAY (No: 2 & 3)

10.1. Give away number two (2) and three (3) were won by Ms. Althea Edwards (a pair of stylish glasses frame compliments Grenada Optical) and Ms. Annasia Toussaint (a Samsung mobile) respectively.

10.2. The Opening Session ended at 3:52 pm.

11.0 BUSINESS SESSION

11.1. Permission was granted by the Grenada Authority for the Regulations of Financial Institutions (GARFIN) for the continuation of the meeting since a quorum of three hundred was not established. The total number of members in attendance was one hundred and ninety-six.

11.2. The Chairman, Mr. Andre Martin, presided over the Business Session which commenced at 3:53 pm.

12.0 ADOPTION OF THE STANDING ORDERS

12.1. The motion for the adoption of the standing order was moved by Mr. David Thomas and seconded by Ms. Abiola Francis. The motion was carried.

12.2. The President, Mr. Andre Martin, presented the standing orders.

13.0 AUDITOR’S REPORT

13.1. Ms. Michelle Millet, a representative from the accounting firm Pannell Kerr Foster (PKF) tabled the report which commended the GUTCCU for successfully meeting financial international standards, and gave an overview of the roles and functions of the auditors.

14.0 AUDITED STATEMENT

14.1. The Treasurer, Mr. Miguel Fortune, presented the financial position of the GUTCCU as of December 31st, 2017.




A. Financials

Total Earning $ 149,518,596

Non-Earning Asset $ 8,044,049

Total Assets $ 171,769,148

Funds and Reserves $ 4,629,778

Institutional Capital $ 13,042,474

Total Membership Equity $ 11,022,301

Current Liability $ 141,655,044

B. The following were highlighted in the statement of comprehensive income:

Total Comprehensive Income $ 2,217,745

Net Interest Income and Other Income $ 8,566,968

General and Administrative Expenses $ 5,678,746

Net Operating Surplus before appropriation $ 2,888,222

Transfer to Reserve and Development Fund $ 750,938

Net Surplus for the year $ 2,217,745

14.2. Questions Arising From The Financials:

A. Mr. Abel Newton enquired as to why there was a decrease in provisions made for delinquent loans. The Finance Manager stated that loans that are delinquent for over 365 days (one year) are usually written off from on the books.

B. Mr. Newton further enquired as to why the provision for audit fees had increased. The Finance Manager explained that the auditing firm would have indicated that there will be an increase in their fees.

C. A question was also asked about the decrease in dividend. The meeting was informed that most companies would have reduced their dividend rates.

D. Mr. Justin Courtney sought clarity on the increase of the General and Administrative Expenses. The meeting was informed that the GUTCCU sticks within the budget, and tries to conserve, however the debit card would have incurred some expenses. An additional question was asked about other sources of income for the credit union and the meeting was informed that the only other source of income beside interest is captured under other income as rent from investment property, sale of foreign cash etc.

Participants of the 2018 G.U.T. Credit Union’s Financial Literacy Quiz



E. One member sought explanations as to the increase in rent charges, stipend, pension, and travel. The treasurer of the BOD responded that rent had to be paid for the ATM at GCNA complex, and for the officer from Grenada who is now employed at the Carriacou branch. He further explained that there hasn’t been an increase in stipend for over ten years and the BOD made a decision to do so. The pension had increased because of the increase in staff, and travel had also increased because more officers became travel officers and person had to travel to Carriacou and overseas to conduct business.

F. Mr. Abel Newton questioned the sale of mortgages to other institution and liquidity issues. The meeting was informed that the credit union did not have a liquidity issue. However, the success of the Freedom Loan led to an extension and in the best interest of the credit union the institution was approached.

G. Mr. Samuel Britton expressed his dissatisfaction with the explanation given for the question asked of the liquidity and sale of mortgages by the credit union. He further stated that his advice to the Board is that going forward, the credit union should ensure that the members are given information on how and when certain things are done.

H. A member noted that there was an increase in stipend however no break down was given. The meeting was informed that transportation and other costs have increased; the president further explained the difference between an honorarium and a stipend.

15.0 PRESENTATION BY THE AUDITORS (IFRS9)

15.1. The auditor, Ms. Michelle Millet, made the presentation and informed the meeting of the following:

» It is a new standard that will be implemented in 2018.

» The standard deals with financial assets and how they are classified and measured.

» Provisions have to be made in advance for all loans.

15.2. One member questioned the provision that had to be made since the credit union is not a bank and if it is part of the credit union funds that will be used for such. In response Ms. Millet indicated that the credit unions as well as all other financial institutions must comply.

15.3. Mr. George Sandiford enquired as to where all these changes came from; he was informed that the changes came from the International Standard Board.

16.0 PRESENTATION OF THE 2018 BUDGET

16.1. The 2018 budget was presented by the Finance Manager, Mr. Damani Brizan. The report highlighted the following:

Total Income $ 12,593,214

Total Expenditure $ 13,513,917

Total Comprehensive Income $ 1,645,156

16.2 Questions arising from the budget 2018:

A. Mr. Abel Newton noted that nothing was presented on capital budget. The Finance Manager explained that there is a capital budget, but it is not customary to present it at the Annual General Meeting, however it is 1.1 million dollars.

B. Mr. Newton also noted that since there is nothing for capital expenditure if the credit union needs to purchase a building for example, where does the money come from? It was noted that capital budget includes upgrade of software and equipment etc.



16.3. On page thirty-two (32) There were some changes in the figures of the 2018 Budget under the headings Governance and Administration from $649,032 to $1,216,150 and from $2,311,820 to $1,744,702 respectively.

17.0 MINUTES OF THE 33RD ANNUAL GENERAL MEETING OF THE GUTCCU

17.1. The minutes was tabled by the Secretary of the Board of Directors, Ms. Alma Du Bois-Calliste.

17.2. A motion for the minutes of the 33rd Annual General Meeting to be taken as read was moved by Ms. Joslyn Augustus La Touche and seconded by Ms. Althea Edwards. The motion was carried.

18.0 CORRECTIONS AND OMISSIONS

18.1. On page 13 under the sub-heading Launch of a New Product the interest rate of ‘8%’ should be corrected to read ‘8.5%’.

19.0 CONFIRMATION OF THE MINUTES

19.1. A motion for the confirmation of the minutes was moved by Ms. Karen Bubb and seconded by Ms. Cecilia St. Louis-Donald. The motion was carried.

20.0 MATTERS ARISING FROM THE MINUTES

20.1. A member needed clarity on page 12 under the sub-heading Audited Statement, for the figure for Institutional Capital ‘$20,420,272.00’. It was noted that it was an error and should be corrected to read ‘$8,575,954.00’.

20.2. A member referred to page 14, 20.5 and enquired as to whether consumer and personal expenses were merged as promised. The meeting was informed that they were and is now referred to as consumer and personal expenses.

21.0 GIVEAWAY (No:4)

21.1. Ms. Therese St. Paul won an evening of entertainment at Lavo Lane.

GUTCU representatives at the Grenada Credit Union Conference 2018



22.0 REPORTS (BOD; Credit Committee; Supervisory & Nominating Committee)

22.1. A motion for the adoption of all the reports was moved by Ms. Hermione Baptiste and seconded by Ms. Gloria Bonaparte. The motion was carried.

A motion for all of the reports to be taken as read was moved by Ms. Alma Du Bois-Calliste and seconded by Mr. Edison Francis. The motion was carried.

22.2. Board Of Directors’ Report

The report was tabled by the president of the Board, Mr. Andre Martin. The report highlighted the following:

» A listing of the Executive, other members of the Board of Directors, and heads of committees.

» The number of BOD meetings held and members’ attendance.

» A graphical presentation of the financial highlights of the GUTCCU during the period 2013 to 2017 in the areas of income and expenditure, institutional capital, and surplus.

» The strategic plan for the period 2017 to 2019.

» Scholarships, grants, donations and contributions awarded by the GUTCCU.

» The various activities conducted by the GUTCCU.

» Awards and recognition to the GUTCCU.

» Staffing, and human resource development.

» Plans and projections for 2018.

22.3. On page 20 of the Board report, the heading Surplus was changed to Total Comprehensive Income

There were no questions arising from the report of the Board of Directors of the GUTCCU.

22.4. Credit Committee:

The report was tabled by the chairman, Ms. Magdalene Carmichael.

The following were presented:

» The composition of the committee and attendance records.

» A description of the year in review which highlighted the number of loans granted, deferred and denied.

» A description of the loan purpose and its value.

» A description of the loans according to gender, type, age, and value.

» Observations based on loan applications and status of members in terms of knowledge and understanding of the loans process.

» Expression of appreciation and members who will be retired.

22.5. Mr. Samuel Britton enquired as to whether any of the fifty (50) loans that were deferred came back to the committee. The meeting was informed that most of them came back with information that was missing.

22.6. Ms. Magdalene Carmichael made reference to the presentation by Ms. Matonia Cox-Munroe and said that it is her hope that the credit union can put what Ms. Munroe said into a brochure form to be distributed to members. In closing she thanked the members for the opportunity to serve and informed the meeting that she and Mr. Wayne Horsford as members of the Credit Committee will be retiring at this Annual General Meeting.



22.7. Supervisory And Compliance:

The report was tabled by the chairman Mr. Randy Boyke Cadet. In his report he highlighted the following:

» The composition of the committee, number of meetings conducted, and members’ attendance.

» The methods of operation where minutes, auditors’ statements, and loan applications etc. were reviewed.

» Commendation to the members of the Credit Committee and the Marketing and Loans Department of the GUTCCU.

» The financial position of the GUTCCU and the need to strengthen its capital base.

There were no questions arising from this report.

22.8. Nominating Committee’s Report And Elections:

The report was tabled by Ms. Alma Du Bois-Calliste, head of the committee. The committee comprised of the following persons:

Ms. Alma Du Bois-Calliste

Board of Directors (Chairman)

Ms. Pamela Y. T. Duncan Member GUTCCU

Mr. Tyrone Buckmire Member GUTCCU

Nominations were sought from the general membership via advertisements in the weekly newspapers, radio announcements, and social media.

The recommended persons were as follows:

Ms. Miliora Da Breo Board of Directors

Mr. Jody Calliste Credit Committee

Ms. Cathyann Alexander-Pierre Credit Committee

Ms. Nerrisa Celestine-James

Supervisory and Compliance Committee

Ms. Ananira Herry Supervisory and Compliance Committee

Mr. Jody Calliste was absent from the meeting. As a result, nomination were taken from the floor and Ms. Asha Bailey was elected to replace Mr. Jody Calliste on the Credit Committee.

23.0 RESOLUTIONS

The Resolutions to the Annual General Meeting was presented by the President, Mr. Andre Martin.

A motion was moved for the approval of the resolution for the 2018 budget by Ms. Joslyn Augustus La Touche and seconded by Ms. Irva Alexander. The motion was carried.

Mr. Abel Newton suggested an amendment to the resolution of the borrowing limit. The amended resolution reads: be it resolved that the maximum borrowing limit for the credit union for 2018 be $10,000,000.00. The motion was moved by Mr. Lex Mc Bain and seconded by Ms. Rekisha Phillip. The motion was carried.

A motion was moved for the approval of the re-appointment of Pannell Kerr Foster (PKF) as the auditors of the GUTCCU Ltd. for 2018 by Ms. Gloria Bonaparte and seconded by Mr. Abel Newton. The motion was carried.

A member noted that according to GARFIN, auditors should be changed every five years and suggested that the resolution for the approval to keep PKF as the auditors of the GUTCCU be suspended since PKF has been used for a number of years. The General Manager informed the meeting that in discussion with GARFIN it was decided that all credit unions would keep their present auditors for the year 2018.

A motion was moved for the approval of payment of dividend in the amount of 3.5% to the members of the GUTCCU by Ms. Imogene Howard and seconded by Ms. Gloria Bonaparte. The motion was carried.



25.0 GIVEAWAY (No: 5-9)

There were five (5) other giveaways and the following were won:

» Ms. Judy Lewis-Joseph won a dinner at Sails Restaurant

» Ms. Jeanelle John, Ms. Linda Francis, Ms. Pamela Benjamin and Ms. Jacinta Cyrus-Penny won one (1) bottle of wine each.

With there being no other business to discuss, the meeting ended at 7:20 pm.

----------------------------------------Alma Du Bois-CallisteOut Going Secretary - BOD

A motion was moved for the approval of the quorum to be changed from 300 persons to 150 by Ms. Joslyn Augustus La Touche and seconded by Ms. Althea Edwards. The motion was carried.

A motion was moved for the qualifying shares to be a member to be sixty (60) shares at five dollars ($5.00) per share be formalized. The motion was moved by Mr. Edison Francis and seconded by Ms. Alma Du Bois-Calliste. The motion was carried.

A motion was moved for the approval of payment of qualifying shares to be bought and paid in full on becoming a member at the GUTCCU was moved by Mr. Abel Newton and seconded by Ms. Asha Bailey. The motion was carried.

24.0 GENERAL BUSINESS

» A member suggested that the credit union’s song be taught to members.

» Another member suggested that more advertisements be done for the Annual General Meeting (AGM) and the books be distributed one (1) week in advance prior to the AGM.

Booth at Sandals staff event



BOARD OF DIRECTORS Report

1.0 INTRODUCTION

The Board of Directors of the G.U.T. Cooperative Credit Union Limited is pleased to present to the 35th Annual General Meeting, its report for the financial year ending December 31, 2018.

The year 2018 was filled with increased financial demands for the credit union. With the constant introduction of new regulations, such as the IFRS9 more was required from the credit union. As a result, a number of policies were created, and implemented to adhere to these stipulated regulations within the cooperative sector. The introduction of IFRS9 has required the credit union to adapt to new standards. The Board actively and progressively looked for new ways to improve efficiency and capacity within the credit union through staff training and updating and creation of new policies and procedures.

The technological structure of the credit union was also assessed and with the increasing demand for more services and for more operational efficiency a new operational software was sought.

The credit union continued to perform credibly and for the first time the credit union loan disbursement reached and surpassed the $50 million mark. We commend the staff for their hard work and the members for their loyalty and confidence in their credit union.

The credit union also celebrated its 35th anniversary and commemorated this milestone with distribution of tokens and prizes for members in the branches and at the AGM and on social media. There was also media coverage and press release on the event. A special $35,000.00 Freedom Loan promotion was launched to mark the occasion which was positively received by the membership. A membership drive was also conducted as well as outreach to students to increase awareness of the credit union.

The growth of the credit union in terms of membership, loans, and savings gave rise to the demands for the provision of more efficient, adequate services. Therefore, the Board of Directors and management had to put adequate structures in place to strengthen its operational efficiencies, thus ensuring that the confidence of the membership is maintained. The GUTCCU utilized various methods and promotions to fulfil the needs of its members. In addition, the loans department at St. George’s was renovated to improve the comfort for both members and employees as well as improve the privacy for members while conducting business transactions.

2.0 GOVERNANCE:

2.1. COMPOSITION

The Board of Directors comprised the following during the financial year.

NAMES POSITION

PeriodJan – May

PeriodJun – Dec

Dr. Andre Martin President President

Ms. Alma Du Bois-Calliste Secretary

Mr. Miguel Fortune Treasurer Treasurer

Ms. Joslyn Augustus La Touche

Vice President

Vice President

Mr. Edison Francis Assistant Secretary

Assistant Secretary

Mr. KenrickMc Sween

Assistant Treasurer

Assistant Treasurer

Ms. Florina Thomas Director Director

Mr. Finley Jeffrey Director Director

Mr. Louis Williams Director Director



NAMES POSITION

PeriodJan – May

PeriodJun – Dec

Ms. Cornice James Director Director

Ms. Kim Parris Director Director

Mr. Kevin Andall Director Director

Mr. Mary Noel Director Director

Ms. Miliora Da Breo Secretary

2.2. The term of office expired for four (4) members during the period.

Retired Members Replacement Region

Ms. AlmaDu Bois-Calliste

Ms. Miliora Da Breo

St. John

Ms. Florina Thomas

Ms. Florina Thomas

Independent

Mr. Finley Jeffrey

Mr. Finley Jeffrey

St. Patrick

Ms. KimParris

Ms. Kim Parris

St. George

2.3. BOARD COMMITTEES:

The following shows the committees and their chairpersons:

Committee Chairperson

Education Ms. Florina Thomas

Staff Ms. Joslyn Augustus La Touche

Investment Mr. Miguel Fortune

Nomination Ms. Alma Du Bois-Calliste

Mrs. Boyd presents participation certificate for Member Market business training

Mrs. Munroe presents token to newly permanent teacher

Ms. Mc Queen presents token to newly permanent teacher



2.4. MEETINGS AND ATTENDANCE

The Board of Directors convened twelve (12) regular and five (5) special meetings, and five (5) Joint Committee Meetings. The average attendance for the Board was 84.3%.

Names Board Meetings Joint Committee Meetings

Total Attendance

Dr. Andre Martin 15/17 5/5 20/22

Ms. Joslyn Augustus La Touche 17/17 5/5 22/22

Ms. Miliora Da Breo 11/11 3/3 14/14

Mr. Edison Francis 16/17 5/5 21/22

Mr. Miguel Fortune 15/17 4/5 19/22

Mr. Kenrick Mc Sween 16/17 5/5 21/22

Ms. Florina Thomas 11/17 3/5 14/22

Mr. Finley Jeffrey 15/17 4/5 19/22

Mr. Louis Williams 15/17 2/5 17/22

Ms. Cornice James 15/17 5/5 20/22

Mr. Kim Parris 15/17 5/5 20/22

Mr. Kevin Andall 11/17 4/5 15/22

Ms. Mary Noel 8/17 3/5 11/22

Mrs. Alma Du Bois -Calliste 7/7 3/3 10/10

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3.0 FINANCIAL HIGHLIGHTS:

Institutional capital ratio continued to increase and reached 8%, while budgeted operating surplus was surpassed. This was a major milestone for the credit union thus enabling for the payment of dividend in 2018 after many years of not being able to do so. The credit union achieved an operating surplus of $3,218,780 which is a 9% increase. This year, the credit union was required to make impairment adjustments for the new IFRS9 standard.




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4.0 COMPLIANCE

Changes in regulations continue to affect the financial industry and in particular, credit unions. Increased focus on de-risking and anti-money laundering have resulted in heightened monitoring, increased member due diligence and adherence to AML regulations, Foreign Account Tax Compliance (FATCA), and Common

Standards on Reporting (CSR). During the year, all FATCA and CSR financial information were submitted to the Ministry of Finance as required. Due to the shifting realities, the credit union has had to strengthen its AML programme to ensure that it continues to minimise its risk in this area.

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5.0 NEW SERVICES

5.1. ATM/DEBIT CARD:

In order to provide improved member services, the credit union embarked on a major undertaking and launched its ATMs and CONNEX debit card facilities. This new service allows members to have more access to their funds and provides more convenience. The CONNEX debit card can be used at over 300 merchants throughout Grenada. The credit union now has ATMs located at:

» Head Office, St. George

» Victoria branch, St. Mark

» GCNA Complex on Kirani James Boulevard

6.0 MARKETING AND MEMBER OUTREACH

6.1. SCHOLARSHIP AND GRANTS

The Grenada Union of Teachers’ Cooperative Credit Union Limited continued its contribution towards the education of the nation’s children through its annual scholarship. Due to the tremendous need, the Board increased the number of recipients from ten (10) to eighteen (18).

A total of eighteen (18) scholarships (including one (1) renewal for 2017) to students of the T.A. Marryshow Community College, through

Recipients of the TAMCC Scholarship

Mrs. Denise De Coteau cuts ribbon at launch of ATM at GCNA Complex

the TAMCC Necessitous Fund. Each student was awarded $1000.00 towards tuition for the period 2018-2019.

One hundred and forty-four (144) students for 2018 Caribbean Primary Exit Assessment (CPEA) Exams were awarded a cheque in the amount of $250.00 and a voucher of $50.00 towards a Smart Saver Account.

6.2. MEMBER OUTREACH

The credit union engaged in various outreach activities to members and the public. During the year congratulatory packages were delivered to teachers who received permanent appointment.



The credit union participated in employee fairs facilitated by various employers. There was also participation in various community activities and trade fairs. Presentations on financial topics were also delivered to members and the public at various organisations and events. This is to assist with the improvement of the financial literacy among our members so that they can make the right financial decisions.

Meetings for new members who joined the credit union during the year were organised to welcome them to the GUTCCU family, orient them to the credit union and provide them with information about the credit union services. The event provided an opportunity for members to ask questions and seek financial advice.The inaugural Members’ Market and Fun Day was held at the Morne Rouge Playing field. This event has been created as part of the credit union’s mandate to improve the lives of members and the community in which it operates. Members had the opportunity to showcase their businesses to the public with the aim of increasing awareness of their products and growing their customer base. The event also provided an opportunity for persons to come together and socialize as one credit union family.

Prior to the Members’ Market, a workshop was held for members with businesses to develop their business skills. The workshop was facilitated by Grenada Investment Development Corporation and focused on assisting small businesses to develop themselves in areas such as pricing, promotion and packaging of their products. The Members’ Market was a tremendous success and proceeds of $3,000.00 were given to the Grenada Patient Kidney Foundation.

6.3. DONATIONS AND SPONSORSHIPS

GUTCCU continues to give financial support to various non-profit and voluntary organizations, schools and other community groups. The GUTCCU in 2018 was the proud sponsor of Spicemas Junior Calypso Monarch in which nineteen (19) of the twenty (20) participants were products of our Pass the Torch Calypso Programme. The credit union also sponsored other activities such as:

» G.U.T. Queen Show

» Science and Mathematics Quiz (Carriacou)

» National and District Science Fair

CPEA grant recipient collects award

Mrs. Boyd presents cheque and voucher to successful CPEA candidate

Outreach at St. Patrick’s Day celebrations



» Festival of the Arts

» Sporting and Educational Activities (Primary and Secondary)

» Youth Parliament (Carriacou)

6.4. EDUCATION ACTIVITIES

A. Financial Literacy Quiz The quiz which ran from April 4th – May 30th, 2018, had twenty (20) secondary schools participating. St. Joseph’s Convent (St. George) emerged the winner. One of the highlights was a video presentation by competing schools in which they had to speak on the importance of financial literacy and give reasons for their participation in the quiz. Bishop’s College won the video competition.

B. Junior Financial Co-operative The three (3) existing Junior Cooperative Societies received training in Microsoft Access System. The combined Junior Co-op now has a membership of 296 with savings of $42,468.79.

C. Past the Torch Calypso WorkshopThe workshop for students continue to develop the writing and performance skills

of participants. The annual calypso showcase was held at the Deluxe Cinema where students displayed their impressive talents.

6.5. AWARDS AND RECOGNITION

On October 19th, 2018 at the International Credit Union Day rally, the GUTCCU captured the march past trophy for the third consecutive year. The coveted trophy is now a keepsake. We commend the staff and members for their hard work.

7.0 HUMAN RESOURCE MANAGEMENT AND DEVELOPMENT

7.1. STAFFING

Ms. Sarafina Patrick and Ms. Diandra Pierre were employed as the Receptionist attached to the Grand Anse Branch and the Office Attendant/Cleaner attached to the Grenville Branch respectively.

7.2. TRAINING

In an effort to meet the financial needs of our members in an ethical, compliant and professional environment, the Board, committees, and staff received training in a number of areas as shown in the table below.

Students of Harvey Vale Government School learn about saving



DATE HOST TRAINING ATTENDEES

January 15th - 20th CARIBE DE Credit Union Development Education Yonette Ross

January 30th - 31st MAREP Credit AnalysisCandys Lewis, Marsha Douglas, and Angela James

February 22nd Edward FrederickBecoming the Exceptional Executive Assistant

Carmen DeRoche-McLawrence

March 3rd Universal Fire Security Ltd. Fire Safety Training Staff Members

March 27th - 28th CariCRIS Analyzing Banks Corporates & SMES Nicole Roberts

April 5th (ICAEC) Risk ManagementAlma Du Bois-Calliste; Retesha Smith-Boyd; Nicole Roberts

April 7th Edward Frederick Customer Service Staff Members

April 19th OSaC Grenada Emergency First Aid/CPR & AED Use Staff Members

May 9th - 11th ECSE/ICSADirectors' Education & Accreditation Programme

Alma Du Bois-Calliste; Retesha Smith-Boyd; Randy Frank; Nicole Roberts

June 13th Inland Revenue DepartmentIntroduction of the Common Reporting Standards

Jacqueline Salfarlie

June 15th-19thCaribbean Confederation of Credit Unions (CCCU)

CCCU ConventionRetesha Smith-Boyd; Miguel Fortune

June 25th – 26thGrenada Co-operative League Limited

Understanding Credit Union Laws & Regulations

BOD & Committee Members

July 4th Caribbean Credit Bureau Ltd. Credit Reporting in the ECCU Nicole Roberts

July 5th-6thCaribbean Credit Card Corporation Ltd

Operational and Product Marketing Seminar 2018

Donlyn Telesford

July 18th – 19thGrenada Co-operative League Limited

IFRS9 Implementation SessionRandy Frank; Nicole Roberts

July 19thGrenada Co-operative League Limited

De-Risking BOD; Committee Members & Supervisors

September 19th G.U.T. Credit Union Compliance Training Staff

September 19th Financial Intelligence Unit (FIU)

The Nature & Process of Money Laundering; Legal Obligation of all employees; Suspicious Activity Reporting

Staff

September 26th GrenadaptsClimate Change & the risks for the financial sector in Grenada

Nicole Roberts

October 15th Edward Frederick Customer Service Staff Members

October 3rd-5thGrenada Co-operative League Limited (GCLL)

GCLL ConventionBOD; Committee & Staff Members; & Members



7.3 STAFF DEVELOPMENT

Ms. Donlyn Telesford has successfully completed a Bachelor of Arts with Distinction in Business Management with Finance; Ms. Candys Lewis completed her Bachelor of Science in Business Administration with Human Resource Management. Congratulations is extended to them on their achievement.

8.0 PLANNING

8.1. STRATEGIC PLAN

The Board continues to be guided by the strategic plan for 2017-2019 which focuses on the following:

» Improving the current position of GUTCCU in the local financial market.

» Maintaining a safe and sound infrastructure.

» Strengthening our Institutional Capital to meet and surpass the desired ratio.

To assist in achieving the objectives of the plan, the credit union developed new products and promotions such as the Freedom Loan which has quickly become a member favourite. New policies and procedures have been developed in the areas of Information Technology, Operations, Loans and Compliance to strengthen controls. There have been increased staff training in areas such as customer service, AML and loan underwriting.

Technology and social media were incorporated in member outreach activities. In addition, a quarterly newsletter has been implemented to inform members of what’s happening at the credit union. An employee recognition and award programme has been developed to recognise the efforts of staff. The Board and management actively sought to manage expenditure and improve surplus to meet the required capital ratio.

8.2. PLANS FOR 2019

» Increased training for staff and committee members

» Continued improvement in operational efficiencies and member services

» New Headquarters

» Strengthening Compliance

9.0 CONDOLENCES

9.1. The Grenada Union of Teachers Cooperative Credit Union wishes to extend deepest sympathy to all those who have lost loved ones in 2018.

10.0 APPRECIATION AND ACKNOWLEDGEMENT

10.1. The Board of Directors takes the opportunity to extend a hearty thank you to the Management and Staff for their continued hard work and unwavering commitment in helping the credit union to achieve its goals.

Likewise, to the Directors, members of the Supervisory and Compliance and Credit Committees for the critical role you have played in ensuring that policies of the credit union are adhered to and members are treated in a fair and respectful manner.

10.2. The Board of Directors expresses thanks to the general membership for the opportunity given to serve and we look forward to continuing serving you.

............................................... ................................................Ms. Miliora Da Breo Dr. Andre MartinSecretary President



1.0 INTRODUCTION

The Credit Committee is pleased to present to the 35th Annual General Meeting this report of its activities for the year 2018.

2.0 COMPOSITION

The Credit Committee is comprised of the following members:

Chairman Leon Radix

Secretary Irva Alexander

Member Gordon Welsh

Member Asha Bailey

Member Cathy Ann Pierre

3.0 ATTENDANCE RECORDS

Credit Committee Joint Committee

Members Meetings Scheduled

Meetings Attended

Meetings Scheduled

Meetings Attended

Leon Radix 26 21 5 4

Irva Alexander 26 26 5 5

Gordon Welsh 26 25 5 5

**Asha Bailey 16 14 3 3

*Magdalene Carmichael 10 10 2 2

***Cathy Ann Pierre 16 16 3 3

*Wayne Horsford 10 9 2 1* Demitted office at the last Annual General Meeting (AGM) in May 2018 (expired terms)** Replaced Ms. Magdalene Carmichael in May 2018 at the last AGM*** Replaced Mr. Wayne Horsford in May 2018 at the last AGM

CREDIT COMMITTEEReport



4.0 YEAR IN REVIEW

4.1. The Credit Committee as mandated by the Corporative Societies Act, 2011 held twenty-six (26) meetings for the year 2018. At these meetings your committee implemented the approved Loan Policy and performed such duties as prescribed under the Corporative Societies Act, Regulations and Bye-Laws of the Credit Union. The following were executed: processing and evaluation loan applications, ratifying loans already approved by the Loans Department, collaborating with the Loan Department periodically to ensure adherence/compliance to the institution’s lending policies.

4.2. Five hundred and seventy-two (572) loans were forwarded to the Committee for deliberation. Upon evaluation four hundred and eighty-seven (487) were approved, forty-five (45) deferred and forty (40) denied.

Results of Evaluation of Loans Undertaken by the Credit Committee:

Loans Approved Loans Deferred Loans Denied Total

487 45 40 572

4.3. Loan Report

Loan Purpose Description Count Total Value Percentage

Consumer/Personal Expense 1589 14,466,155.23 27.09

Vehicle 332 7,363,365.05 13.79

Education 196 1,232,284.1 2.31

Professional Services 14 269,955.41 0.51

Debt Consolidation 505 12,469,581.8 23.35

Mortgage/Building Construction 331 14,815,741.8 27.75

Business Enterprise 164 1,911,825.62 3.79

Vacation And Travel 136 658,232.03 1.23

Home Furnishings 51 197,768.37 0.37

Total 3319 53,394,909.41



LOANS BY GENDER

Count Total Value Percentage

Male 1386 24,159,394.36 45.25

Female 1929 29,136,582.90 54.57

Undefined 4 98,932.15 0.19

Total 3319 53,394,909.41

LOANS GRANTED BY AGE

The highest loan value ($10,912,369.23) was granted to members between the ages 31 to 35.This represents 20.44% of the credit unions total loans being approved, during the financial year of 2018. Females represent 54.57% with a total of 1929 loans granted whereas, males represents 45.25% a total of 1386.

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Ms. Roberts presents cheque to St. Mark’s Organization for Development

Local tea booth at Member Market Fashion booth at Member Market



The Credit Committee believes that education loans for long-term studies, business enterprise as well as land purchase loans should be given more attention in 2019.

The Credit Committee will like to extend our appreciation to the Board of Directors, Supervisory and Compliance Committee, management and staff for their support, dedication and invaluable assistance throughout the year.

But most of all thanks to you our valued members for the confidence you have placed in us as we continue to work together to assist in supporting your financial needs and building a stronger credit union.

...............................Leon RadixChairman

5.0 OBSERVATIONS

The total number of loans granted in 2017 were 3341, whereas the total number in 2018 were 3319. Although, this shows a small decrease in the number of loans taken in 2018, it is important to note that the value of loans disbursed, increased from $47,167.589.67 in 2017 to $53,394.909.41 in 2018. This represents an increase of 11.66% and is indicative of members trust and loyalty to engage in continued business with the Credit Union.

The increase in the value of the loan was driven by Mortgage/Building Construction/Renovations with a value of 14,815,741.8(27.75%). This was followed by personal/consumer expense, with value of 14,466,155.23 (27.09%). This segment includes the very popular, Freedom loan, which represents 9,674,927.21 (66.88%) of the total value of Personal/Consumer expense portfolio.

The Freedom loan surpassed its target and continue to provide relief to our members with high debt service ratio and limited cash surplus.

The above mentioned areas have historically been the higher value loans. The Credit Union must however fortify these key areas whilst encouraging innovative loan concepts that should be aimed at growing the other sectors. This however must not be done without assessing the needs of our members, as they are in fact the ones driving the growth of the credit union.

Various booths at Member Market event



The Supervisory and Compliance Committee (SCC) hereby submits its report in accordance with the requirements of Section 66 (1) (f) of the Co-operative Societies Act of 2011 and the By-Law Section 75 (b) of the Credit Union at this the 35th Annual General Meeting of the Grenada Union of Teachers Cooperative Credit Union Ltd. (GUTCCU)

It is with great honor and privilege that the Supervisory and Compliance Committee has been afforded the opportunity to serve you, our members for the year January - December 2018. The committee accomplished many goals and targets that were set and was vigilant and forthright in ensuring that policies and procedures of the credit union are strictly adhered to.

COMPOSITION OF THE COMMITTEE

In accordance with the By-Law Section (44) (1), at a meeting of the Supervisory and Compliance Committee held on June 6th 2018, Ms. Sobrina La Rose and Ms. Natalie Ruffin were unanimously elected to serve as Chairman and Secretary respectively.

The constituted committee for the period 2018 - 2019 comprises the following members:

MEMBERS TITLE

Sobrina La Rose Chairman

Natalie Ruffin Secretary

Jenner James Member

SUPERVISORY AND COMPLIANCE COMMITTEE'S

Report

MEMBERS TITLE

Nerissa Celestine - James Member

Ananira Herry Member

Randy Boyke – Cadet *

*Term expired. Demitted office at the 2018 Annual General Meeting.

THE AUTHORITY OF THE SUPERVISORY COMMITTEE

The SCC wishes to assure our members that your esteemed committee remains committed to our core functions as guided by the Act, which are as follows:

» Examine the books of the Grenada Union of Teachers Co-operative Credit Union.

» Confirm cash instruments, property and sureties of the GUTCCU.

» Confirm shares, deposits and other balances or holdings of the members

» Perform such other duties under the Act and By-Laws.

MEETINGS AND ATTENDANCE

The Supervisory and Compliance Committee held twelve (12) regular monthly meetings and attended Joint Board and Committee meetings. Set out below is a record of attendance.



REGULAR MEETINGS JOINT COMMITTEE

Members Portfolio Meetings Scheduled

Meetings Attended

Meetings Scheduled

Meetings Attended

Sobrina LaRose Chairman 12 12 5 5

Natalie Ruffin Secretary 12 11 5 3

Jenner James Member 12 11 5 5

Ananira Herry Member 7 5 3 3

Nerrisa Celestine-James Member 7 6 3 3

Randy Boyke - Cadet* 5 5 2 1

*Randy Boyke - Cadet’s term expired.

AREAS REVIEWED

In performing its duties, marked by the tenets of independence, objectivity and reasonable care, your esteemed committee held monthly meetings and was guided by its mandate which allows for meticulous examination and inspection of the credit union’s affairs. Concerted efforts were made to ensure that members’ assets were protected, by carefully and appropriately monitoring and evaluating the maintenance of adequate internal controls.

A breakdown of the audits and activities for the year under review appears below for the general membership at this Annual General Meeting.

» Monitored shares, savings and deposits

» Examined loan delinquency/arrears management

» Verification of loan documents and disbursements

» Assessed regulatory compliance

» Validated bank reconciliation

» Reviewed payroll

» Reviewed policies and procedures

» Verification of new, closed and dormant accounts

» Reviewed and verified monthly financial statements

» Reviewed auditors statement

» Reviewed employee files including management

» Monitored the performance of the institutional capital

» Reviewed declaration of fund files

» Examination of the Board of Directors minutes of meetings to ensure that the Board is compliant with

» Fiduciary duties and obligations

» Conducted branch visit to observe the efficiency in the credit union’s operation

» Perused membership listings

» Examined random monthly samples of new loans

During the period, the committee received and examined the accounting records and financial records to ensure that there were effective systems of internal control in place to protect the assets of the credit union and also to form a reliable basis for the preparation of the financial statements.



Your committee is pleased to report that there continues to be significant improvement in the level of adherence to the organization’s regulatory procedures. In our quest to ensure continued progression and efficiency, the SCC has engaged management and submitted recommendations; some of which have so far been implemented with good effect.

REVIEW OF MEMBERSHIP DATA

The Supervisory and Compliance Committee appraised members’ data to ensure that the appropriate policies and operating procedures were observed. For verification purposes, checks were made to ensure that the following information relative to members was captured:

» Date of birth

» Address

» Minimum number of equity shares is held

» Active status of savings

» Updated member listing

LOANS

An inspection was conducted on the loan portfolio. The objectives were to determine:

» Compliance with the Co-operative Societies Act and Regulations, Bye-Laws and the Credit Policy

and Procedures of GUT Cooperative Credit Union

» The adequacy and validity of securities held

» The adequacy and effectiveness of internal control and regulatory systems

» The effectiveness of the monitoring systems for non-performing loans

Observations made included:

» The granting of loans were in accordance with the GUTCCU Loan Policy and Procedures.

» GUTCCU holds good title to assets being used as security for loans by members which is in compliance with the Loan Policy and Procedures.

» There is satisfactory compliance with the terms of the loan contracts

The Supervisory and Compliance Committee is satisfied that appropriate measures are in place for the granting of loans and that our credit union continues to provide opportunities for the improvement of members’ welfare through the numerous facilities offered. The committee trusts that adherence to loan policies and requirements will continue to be the guiding pillars as loan applications are reviewed, approved or denied and funds disbursed.

International Credit Union Day celebration at Carriacou



EXAMINATION OF THE FINANCIAL RECORDS AND ATTESTATION OF THE MONTHLY FINANCIAL STATEMENTS

A monthly review of GUTCCU financial accounts was conducted pursuant to Section 74 (2) (a) of the By-Laws. The task of attesting the financial statements, required the committee to ensure that the accounting records presented, reflected transactions during the period. Following careful analysis, the committee is of the view that the financial statements were accurate to the best of our knowledge.

INSTITUTIONAL CAPITAL

Our credit union was able to strengthen its capital base during the year. Total Institutional Capital stood at $15.9 million. At the end of the period this represented a $2.9 million or 22% growth. The capital to asset ratio improved from 13.6 % to 14.1 % at the end of the financial year. This is well above the maximum 10% standard prescribed.

TRAINING

The Supervisory and Compliance Committee recognizes that training is not only an imperative for excellence but also an essential element of co-operative practice. As such, the committee commends the Board and Management for ensuring that Staff and Committee members were participants in various training initiatives throughout the year. These training sessions some of which were facilitated by the Grenada Cooperative League, included but were not limited to: De-Risking, Understanding Credit Union Regulations, Emergency First Aid / CPR Procedures amongst others. The SCC acknowledges the concerted efforts made in ensuring that staff and committee members of the GUTCCU are afforded opportunities to keep abreast with evolving trends through continuous and consistent training.

CREDIT COMMITTEE

The competitive nature of the loans market coupled with the increasing number of institutions making it easier for people to obtain loans, have in some respects been a challenge for the credit union. It is against this

backdrop that the work of the Credit Committee must be commended.

The committee in conjunction with the Loans Department has worked diligently to address and meet the financial needs of members. Consequently, the recorded increase in the value of loans for the period under review is an indication of its efforts.

The granting of loans, while simultaneously protecting the assets of its members, is a primary function of the credit union. The interest accrued from these investments is what largely dictates the financial health of the organization. Moreover, the Supervisory Committee requests of members to recognize that the Credit Committee also shares in the responsibility to protect members’ money and as a result must accede to loan requests in keeping with established guidelines while at the same time develop an appreciation for members’ financial needs and working to ensure members are satisfied with this aspect of the credit union’s operations.

The Supervisory and Compliance Committee notes with satisfaction that our delinquency rate continues to be relatively low when compared with other institutions in the sector. The SCC salutes the Credit Committee and the Loans Department for continuing to collaborate in ensuring delinquency remains manageable.

DELINQUENCY

The Committee continues to receive and review delinquency reports. The Delinquency and Recoveries Unit has made every effort to maintain the number of delinquent loans at a low rate. As a result, the Committee commends the credit union and in particular the Unit for their hard work and efforts in reducing and controlling the delinquency rate.

REVIEW OF STAFF, BOARD AND COMMITTEE MEMBERS ACCOUNTS

These accounts were examined to ascertain management’s confidence and the scope of business conducted by relevant members within the organization.



The table demonstrates an overview and provides an insight of Board, Committee members and Management’s involvement in the credit union.

Personnel No. of Members Equity Shares Savings Loans

Board of Directors 13 $55,454.32 $377,714.47 $907,641.79

Credit Committee 5 $17,741.73 $245,759.54 $676,447.39

Supervisory Committee 5 $19,327.70 $153,918.20 $306,783.59

Staff 49 $109,612.24 $858,069.59 $3,898,517.86

MANAGEMENT AND STAFF

The Supervisory and Compliance Committee acknowledges the diligence and commitment of the Board, Management and Staff of the GUTCCU in facilitating the commendable performance of the institution. The overall governance is one that is hinged on prudent policies and views members’ welfare as the central focus. This has resulted in a concomitant increase in the number of clients who have opted to become part of the GUTCCU family.

The SCC recognizes that the initiatives undertaken by the Management and staff have continued to propel the GUTCCU to remain a major competitive force in the industry. The committee is confident that the Board of Directors together with Management is committed and equaled to the task of making our credit union the premier choice to do business, par excellence.

Further, both the Board of Directors and Management have maintained an open line of communication with the SCC; thus allowing the committee to express concerns when necessary.

The SCC commends management for their judicious management of the affairs of the GUTCCU and the continued support given to the committee as we exercise our duties and responsibilities.

ACKNOWLEDGEMENT

The GUTCCU continues to strive and persevere in a competitive financial market and must be commended for its efforts, notably so with a delinquency rate less than 5%. The Supervisory and Compliance Committee is pleased with the performance of the institution and take this opportunity to thank the Management team, staff and other officials for their assistance and willingness to respond to all our requests and queries as we execute our mandate.

..................................................Sobrina La RoseChairman



BUDGET2019

Description Budget2018

Actual2018

Budget2019

INCOME

Loan Interest

Other Income

Rental Income

Interest On Investment

12,593,214

304,500

408,000

208,203

11,606,076

461,395

345,903

295,788

12,603,630

500,000

401,739

223,777

Total 13,513,917 12,709,162 13,729,146

EXPENDITURE

Personnel

Bank Charges And Interest Payments

Marketing

Governance

Administration

3,093,937

4,660,944

575,000

1,216,150

1,744,702

2,882,595

4,109,099

521,313

625,717

1,632,058

3,502,311

4,827,312

574,000

1,230,200

1,862,249

Sub Total 11,290,733 9,770,782 11,996,072

SHORTFALL/SURPLUS 2,223,184 2,938,380 1,733,073

OTHER COMPREHENSIVE INCOME 176,671

TOTAL COMPREHENSIVE INCOME $2,223,184 $3,115,051 $1,733,073

Description: The items under:

PERSONNEL

BANK CHARGES AND INTEREST PAYMENTS

MARKETING

GOVERNANCE

ADMINISTRATION

Salaries, Allowances, Travelling, Pension Fund, Health Plan, Entertainment/Refreshments National Insurance, security and uniforms

Interest Payments on deposits, bank charges

Advertising and Training

Insurance, Audit, Provisioning, Annual General Meeting and Statutory Requirements, bad debts, honorarium, ICU day, League dues

Utilities, Office Supplies, Rent, Depreciation, Tax, Computer and Office Maintenance and Donations

CAPITAL BUDGET

Head Office relocation

Furniture and Equipment

Computer hardware equipment and accessories

7,500,000.00

55,920.00

360,000.00

Total $7,915,920.00



PEARLSRatio

Area RequiredRatio

ActualRatio

Protection DEC

Delinquent Loans greater than 12 months 100% 100%

Delinquent Loans less than 12 months 35% 35%

Effective Financial Structure

Net Loans / Total Assets 70% - 80% 75.12

Savings Deposit/Total Assets 70% - 80% 79.55%

Institutional Capital/ Total Assets 7% 7.99%

Liquid Investment/Total Assets Max 20% 4.06%

Financial Investment/ Total Assets Max 10% 4.78%

Asset Quality

Total Delinquent Loan/ Loan Balance Max 5% 1.31%

Non Earning Assets/Total Assets Max 5% 3.95%

Real Property/Total Asset 10% 9.34%

Rates of Return

Total Operating Expenses / Average Total Assets Max 5% 5.20%

Total Investment Income/ Average Inv 2% 1.63%

Liquidity

Liquidity Reserves / Savings Deposit Min15% 16.39%

Non Earning Liquid Assets/ Total Assets Max1% 10.65%

Signs of Growth

Growth in Loans Min10% 10.95%

Growth in Savings Min10% 11.76%

Growth in Members Shares Min10% 10.59%

Growth in Total Assets Min10% 12.46%

Notes To The Financial StatementsAt 31st December, 2018 ...(continued)



AUDITED FINANCIALSTATEMENTS

2017

Independent Auditors’ Report

Statement of Financial Position

Statement of Comprehensive Income

Statement of Changes in Members’ Equity

Statement of Cash Flows

Notes to the Financial Statements

General and Administrative Expenses

40

42

43

44

45

46

75



Pannell House | P.O. Box 1798 | Grand Anse | St. George's | Grenada | West IndiesTel (473) 440-2562/3014Fax (473) 440-6750 | Email [email protected]

INDEPENDENT AUDITOR’S REPORTTo The Members’ Of Grenada Union Of Teachers Co-Operative Credit Union Limited

Opinion

We have audited the financial statements of Grenada Union of Teachers Co-operative Credit Union Limited (“the Credit Union”), which comprise the statement of financial position at December 31, 2018, and the statement of comprehensive income, statement of changes in members’ equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Credit Union as at December 31, 2018 and its financial performance and its 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 Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Credit Union in accordance with the ethical requirements that are relevant to our audit of the financial statements in Grenada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Other information consists of the information included in the Credit Union’s 2018 Annual Report, other than the financial statements and our auditor’s report thereon. Management is responsible for the other information. The 2018 Annual Report is expected to be made available to us after the date of the auditor’s report.

Our opinion on the financial statements does not cover the other information and we will 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 identified above when it becomes available 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.

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 Credit Union’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Credit Union or to cease operations, or has no realistic alternative but to do so.



INDEPENDENT AUDITOR’S REPORTTo The Members’ Of Grenada Union Of Teachers Co-Operative Credit Union Limited

...(continued)

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 Credit Union’s internal control.

» Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

» Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Credit Union’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 Credit Union 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.

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.

GRENADA

June 14th, 2019 Accountants & Business Advisers



Statement of Financial PositionAt 31st December, 2018

Notes 2018 2017

ASSETS

Earnings AssetsInvestment propertiesMembers’ loansFinancial assets at amortised costFinancial assets at FVOCI

45

6(i)6(ii)

10,884,700149,489,250

8,084,9351,435,327

10,604,300134,730,703

7,642,6041,728,506

Total earnings assets 169,894,212 154,706,113

Non-Earning AssetsProperty, plant and equipmentIntangible assets

78

7,710,324158,137

7,941,725102,324

Other AssetsAccounts receivableInventoryCash and cash equivalents

9

10

7,868,461

6,443,05644,025

14,752,776

8,044,049

2,431,73420,042

11,754,727

21,239,857 14,206,503

TOTAL ASSETS $199,002,530 $176,956,665

MEMBERS’ EQUITY AND LIABILITIES

Institutional CapitalMembers’ qualifying equity sharesStatutory reserveAccumulated surplus

1112

2,024,8004,214,8039,657,980

1,831,6003,401,6607,809,214

Members’ Equity Shares

Other Funds and ReservesDevelopment fundRevaluation reserveDisaster fundOther reserve

11

13141516

15,897,583

12,190,013

99,5593,838,149

149,140526,882

13,042,474

11,022,301

31,8783,838,149

129,140630,611

4,613,731 4,629,778

TOTAL MEMBERS’ EQUITY 32,701,326 28,694,553

Long-term borrowingCurrent Liabilities

Members’ depositsNon-interest bearing liabilities

17

1819

3,924,526

158,312,8334,063,845

5,187,517

141,655,0441,419,551

TOTAL LIABILITIES 162,376,678 143,074,595

TOTAL MEMBERS’ EQUITY AND LIABILITIES $199,002,530 $176,956,665

The accompanying notes form an integral part of these financial statements

: Director : Director



Statement of Comprehensive IncomeFor the year ended 31st December, 2018

Notes 2018 2017

INCOME

Loan interest

Interest on league deposits

Interest on bank deposits

11,606,076

44,242

97,832

11,253,013

37,165

112,183

Deduct: Interest payments to members

11,748,150

3,885,179

11,402,361

3,566,796

Net interest income

Other income

Gain on revaluation of investment properties

21

4

7,862,9717

961,012

280,400

7,835,565

731,403

58,200

Deduct: General and Administrative Expenses (Schedule A)

9,104,383

5,885,603

8,625,168

5,678,746

Net surplus for the year before appropriation

Other comprehensive (loss)/income:

- Revaluation of financial assets at FVOCI

3,218,780

(103,729)

2,946,422

42,261

(103,729) 42,261

Total comprehensive income for the year $3,115,051 $2,988,683




Statement of Changes in Members’ EquityFor the year ended 31st December, 2018

Mem

bers

’Eq

uity

Sha

res

Stat

utor

yRe

serv

eAc

cum

ulat

ed

Surp

lus

Othe

r Fun

dan

d Re

serv

esTo

tal

Bala

nce

at 1

st J

anua

ry, 2

017

Net

mov

emen

t in

shar

es

Entra

nce

fees

Tota

l com

preh

ensi

ve in

com

e fo

r the

yea

r:

Net

sur

plus

for t

he y

ear -

rest

ated

Othe

r com

preh

ensi

ve in

com

e fo

r the

yea

r- re

stat

ed

Tran

sfer

from

ope

ratio

ns

Tran

sfer

to re

serv

e fu

nd

Paym

ent o

f fun

d to

leag

ue

Divi

dend

s to

mem

bers

Disa

ster

relie

f pay

men

t

11,8

44,3

18

1,00

9,58

3 - - - - - - - -

2,66

7,55

4 -

12,0

51

- -

722,

055 - - - -

5,90

8,40

0 - -

2,94

6,42

2 - -

(770

,937

) -

(274

,671

) -

4,56

9,05

6 - - -

42,2

61

48,8

82

-

(26,

026) -

(4,3

95)

24,9

89,3

28

1,00

9,58

3

12,0

51

2,94

6,42

2

42,2

61

770,

937

(770

,937

)

(26,

026)

(274

,671

)

(4,3

95)

Bala

nce

at 3

1st D

ecem

ber, 2

017

Net

mov

emen

t in

shar

es

Entra

nce

fees

Tota

l com

preh

ensi

ve in

com

e fo

r the

yea

r

Net

sur

plus

for t

he y

ear

Othe

r com

preh

ensi

ve in

com

e fo

r the

yea

r

Tran

sfer

from

ope

ratio

ns

Tran

sfer

to re

serv

e fu

nd

Paym

ent o

f fun

d to

leag

ue

Divi

dend

s to

mem

bers

12,8

53,9

01

1,36

0,91

2 - - - - - - -

3,40

1,66

0 -

8,44

8 - -

804,

695 - - -

7,80

9,21

4 - -

3,21

8,78

0 - -

(921

,258

) -

(448

,756

)

4,62

9,77

8 - - -

(103

,729

)

116,

563 -

(28,

882) -

28,6

94,5

53

1,36

0,91

2

8,44

8

3,21

8,78

0

(103

,729

)

921,

258

(921

,258

)

(28,

882)

(448

,756

)

Bala

nce

at 3

1st D

ecem

ber,

2018

$14,

214,

813

$4,2

14,8

03$9

,657

,980

$4,6

13,7

30$3

2,70

1,32

6

The

acco

mpa

nyin

g no

tes

form

an

inte

gral

par

t of t

hese

fina

ncia

l sta

tem

ents



Statement of Cash FlowsFor the year ended 31st December, 2018

Notes 2018 2017

OPERATING ACTIVITIES

Total comprehensive income for the year

Adjustments for:

Depreciation and amortization

Gain on revaluation of investment property

3,115,051

486,538

(280,400)

2,988,683

436,889

(58,200)

Operating surplus before working capital changes

Increase in accounts receivable

Increase in members’ loans

Increase in inventory

Increase in non-interest bearing liabilities

Increase in members’ deposits

3,321,189

(4,011,322)

(14,758,547)

(23,983)

2,644,294

16,657,789

3,367,372

(1,095,538)

(19,338,719)

(9,051)

4,597

15,872,657

Cash provided by/(used in)operating activities 3,829,420 (1,198,682)

INVESTING ACTIVITIES

Purchase of property, plant and equipment

Purchase of intangible assets

Net increase in financial assets

(216,218)

(94,732)

(149,152)

(507,882)

(2,627)

(421,370)

Cash used in investing activities (460,102) (931,879)

FINANCING ACTIVITIES

Entrance fees

Increase in members’ equity shares

Net (repayment)/increase on borrowing

Payment to the league

Disaster relief payment

Dividends paid

8,448

1,360,912

(1,262,991)

(28,882)

-

(448,756)

12,051

1,009,583

5,187,517

(26,026)

(4,396)

(274,671)

Cash (used in)/provided by financing activities (371,269) 5,904,058

Net increase in cash and cash equivalents

Cash and cash equivalents - at the beginning of year

2,998,049

11,754,727

3,773,497

7,981,230

- at the end of year 10 $14,752,776 $11,754,727





Notes To The Financial StatementsAt 31st December, 2018

1. CORPORATE INFORMATIONThe Credit Union was registered on 3rd April, 1983, under the Co-operative Societies Ordinance as amended by the Co-operative Societies Act No. 8 of 2011 for the purpose of affording members of the Grenada Union of Teachers the opportunity to accumulate savings and to obtain credit for provident or productive purposes at reasonable rates of interest.

The Credit Union employed on average fifty-one (51) persons during the year (2017: 50).

2. SIGNIFICANT ACCOUNTING POLICIES(a) Basis of Preparation

These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in Eastern Caribbean Currency Dollars. The financial statements have been prepared under the historical cost convention modified by the revaluation of land and buildings, and investment held at fair value through other comprehensive income.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Credit Union’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to these financial statements are disclosed in Note 3.

(b) New Accounting Standards, Amendments and Interpretations

(i) Changes in accounting policies and disclosures The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Credit Union’s annual financial statements for the year ended December 31, 2017 except for the adoption of new standards and interpretations below. IFRS 9 Financial Instruments (effective 1 January, 2018)

IFRS 9 replaces IAS 39 for annual periods starting on or after 1 January 2018. The Credit Union has not restated comparative information for 2017 for financial instruments in the scope of IFRS 9. Therefore, the comparative information for 2017 is reported under IAS 39 and is not comparable to the information presented for 2018. Differences arising from the adoption of IFRS 9 have been recognised directly in Accumulated Surplus as of 1 January, 2018 and are disclosed in this note.

To determine their classification and measurement category, IFRS 9 requires all financial assets, except equity instruments and derivatives, to be assessed based on a combination of the entity’s business model for managing the assets and the instruments’ contractual cash flow characteristics.




The IAS 39 measurement categories of financial assets - fair value through profit or loss (FVPL), available for sale (AFS), held-to-maturity (HTM) and loans and receivables (L&R) have been replaced by:

» Amortised cost (AC)

» Fair Value through Profit or Loss (FVPL)

» Fair Value through Other Comprehensive Income (FVOCI)

The accounting for financial liabilities remains largely the same as it was under IAS 39 which is at amortised cost.

The Credit Union’s classification of its financial assets and liabilities is in Note 6. The quantitative impact of applying IFRS 9 as at 31 December, 2018 is disclosed in the transition disclosures in this note.

Changes to impairment calculation

The adoption of IFRS 9 has changed the Credit Union’s accounting for financial assets impairment by replacing IAS 39’s incurred loss approach with a forward-looking expected credit loss (ECL) approach. IFRS 9 requires the Credit Union to record an allowance for ECLs for all financial assets not held at FVPL. The allowance is based on the ECLs associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination.

Details of the Credit Union’s impairment methodology are disclosed in note 2(f).

2. SIGNIFICANT ACCOUNTING POLICIES...(continued)

(b) New Accounting Standards, Amendments and Interpretations...(continued)




Tran

sitio

n di

sclo

sure

s

The

follo

win

g se

ts o

ut th

e im

pact

of a

dopt

ing

IFRS

9 o

n th

e st

atem

ent o

f fina

ncia

l pos

ition

, whi

ch is

the

effe

ct o

f rep

laci

ng IA

s 39

’s in

curre

d cr

edit

loss

cal

cula

tions

with

IFRS

9’s

ECLs

.

IAS

39Re

classification

Rem

easu

rem

ent

IFRS

9

Fina

ncia

l ass

ets

Cate

gory

Amou

ntAm

ount

ECL

Amou

ntCa

tego

ry

Cash

and

cas

h eq

uiva

lent

s

Acco

unts

rece

ivabl

e

Mem

bers

loan

s

Loan

s an

d re

ceiva

ble

finan

cial

ass

ets

Avai

labl

e-fo

r-sal

e fin

anci

al a

sset

s

Fina

ncia

l ass

ets

at A

C

Fina

ncia

l ass

et a

t FVO

CI

L&R

L&R

L&R

L&R

AFS

11,7

54,7

27

2,43

1,73

4

134,

730,

703

7,64

2,60

4

1,72

8,50

6 - -

- - -

(7,6

42,6

04

(1,7

28,5

06)

7,64

2,60

4

1,72

8,50

6

- - - - - - -

11,7

54,7

27

2,43

1,73

4

134,

730,

703 - -

7,64

2,60

4

1,72

8,50

6

AC AC AC AC

FVOC

I

$158

,288

,274

$

-$

-

$158

,288

,274

Fina

ncia

l lia

bilit

ies

Long

-term

bor

row

ing

Non

-inte

rest

bea

ring

liabi

litie

s

Mem

bers

’ dep

osits

AC AC AC

5,18

7,51

7

1,41

9,55

1

141,

655,

044

- - -

- - -

5,18

7,51

7

1,41

9,55

1

141,

655,

044

AC AC AC

$148

,262

,112

$

-$

-

$148

,262

,112

As o

f 1 J

anua

ry 2

018,

the

Cred

it U

nion

has

re-c

lass

ified

its

prev

ious

loan

s an

d re

ceiv

able

fina

ncia

l ass

ets

port

folio

as

inve

stm

ent

secu

ritie

s at

am

ortis

ed c

ost.

Thes

e in

stru

men

ts m

et th

e so

lely

pay

men

ts o

f prin

cipa

l and

inte

rest

(SPP

I) cr

iterio

n, w

ere

not

activ

ely

trade

d an

d w

ere

held

with

the

inte

ntio

n to

col

lect

cas

h flo

ws

and

with

out t

he in

tent

ion

to s

ell.

The

Cred

it U

nion

des

igna

ted

its p

revi

ousl

y av

aila

ble-

for-s

ale

equi

ty s

ecur

ities

as

equi

ty s

ecur

ities

at F

VOCI

.

The

Cred

it Un

ion’s

IFRS

9 c

ateg

orie

s the

refo

re in

clud

e am

ortis

ed c

ost (

AC) a

nd fa

ir va

lue

thro

ugh

othe

r com

preh

ensi

ve in

com

e (F

VOCI

).

2.

SIGN

IFIC

ANT

ACCO

UN

TIN

G PO

LICI

ES...

(con

tinue

d)

(b)

New

Acc

ount

ing

Stan

dard

s, A

men

dmen

ts a

nd In

terp

reta

tions

...(c

ontin

ued)




The impact of transition to IFRS 9 accumulated surplus are as follows:

Accumulated surplus at 1st January, 2018 (previously stated)

Expected credit losses

7,809,214

-

Accumulated surplus at 1st January, 2018 $7,809,214

IFRS 15 Revenue from Contracts with Customers (effective 1 January 2018)

IFRS 15 replaces all existing revenue requirements in IFRS (IAS 11 Construction Contracts, IAS 18 Revenue, IFRIC 13 Customer Loyalty Programmes, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC 18 Transfers of Assets from Customers and SIC 31 Revenue – Barter Transactions Involving Advertising Services) and applies to all revenue arising from contracts with customers, unless the contracts are in scope for other standards, such as IAS 17 Leases (or IFRS 16, once effective). It also provides a model for the recognition and measurement of gains and losses on disposal of certain non-financial assets including property, equipment and intangible assets.

The standard outlines the principles an entity must apply to measure and recognise revenue. The core principle is that an entity will recognise revenue at an amount that reflects the consideration to which the entity expects to be entitled in exchange for transferring goods or services to a customer.

The principles in IFRS 15 must be applied using a five-step model:

1. Identify the contract(s) with a customer.

2. Identify the performance obligations in the contract.

3. Determine the transaction price.

4. Allocate the transaction price to the performance obligations in the contract.

5. Recognise revenue when (or as) the entity satisfies a performance obligation.

The standard requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers.

The standard also specifies how to account for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract.

The standard is more prescriptive than the previous IFRS requirements for revenue recognition and provides more application guidance. The disclosure requirements are also more extensive.

When IFRS 15 is adopted, it can be applied either on a fully retrospective basis, requiring the restatement of the comparative periods presented in the financial statements, or a modified retrospective approach which is applied as an adjustment to the Accumulated Surplus on the date of adoption. When the






latter approach is applied it is necessary to disclose the impact of IFRS 15 on each line item in the financial statements in the reporting period.

The adoption of this standard has no impact on the Credit Union.

IFRS 2 Classification and Measurement of Share-based Payment Transactions – Amendments to IFRS 2 (effective 1 January 2018)

The IASB issued amendments to IFRS 2 Share-based Payment in relation to the classification and measurement of share-based payment transactions. The amendments address three main areas:

» The effects of vesting conditions on the measurement of a cash-settled share-based payment transactions

» The classification of a share-based payment transaction with net settlement features for withholding tax obligations

» The accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash-settled to equity-settled.


IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration (effective 1 January 2018)

The interpretation clarifies that in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the de-recognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine a date of the transactions for each payment or receipt of advance consideration.


(ii) Standards in issue not yet effectiveThe following is a list of standards and interpretations that are not yet effective up to the date of issuance of the Credit Union’s financial statements. The Credit Union intends to adopt these standards where appropriate, when they become effective.

» Amendments to IAS 19 – Plan Amendment, Curtailment or Settlement (Effective 1 January 2019)

» IFRS 16 Leases (Effective 1 January 2019)

» IFRIC Interpretation 23 Uncertainty over Income Tax Treatments (Effective 1 January 2019)

» IFRS 17 insurance Contracts (Effective 1 January 2021)






» IFRS 10 and IAS 28 Sale or Contribution of Assets between an investor or Joint Venture – Amendments to IFRS 10 and IAS 28 (Effective date postponed indefinitely)

» IFRS 9 – Prepayment features with negative compensation (Effective 1 January 2019)

(iii) Improvements to International Financial Reporting Standards

The annual improvements process of the International Accounting Standards Board deals with non urgent but necessary clarifications and amendments to IFRSs.

The following amendments are applicable to annual periods beginning on or after 1 January 2019.

IFRS Subject of Amendment

IFRS 3 Business Combinations – Previously held interests in a joint operation.

IFRS 11 Joint Arrangements – Previously held interests in a joint operation.

IAS 12 Income Taxes – Income tax consequences of payments on financial instruments classified as equity.

IAS 23 Borrowing Costs – Borrowing costs eligible for capitalization.

(c) Property, Plant and Equipment

Land and buildings are stated at 2010 valuation less subsequent depreciation on buildings. All other assets are stated at cost less accumulated depreciation.

Subsequent costs are included in the assets carrying amounts or are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Credit Union and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Increases in the carrying amount arising on revaluation of land and buildings are credited to revaluation surplus in equity. Decreases that offset previous increases of the same asset are charged against the surplus directly in equity; all other decreases are charged to the statement of comprehensive income.

Land and buildings are stated at 2010 valuation less subsequent depreciation on buildings. All other assets are stated at cost less accumulated depreciation.

Subsequent costs are included in the assets carrying amounts or are recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Credit Union and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.






Increases in the carrying amount arising on revaluation of land and buildings are credited to revaluation surplus in equity. Decreases that offset previous increases of the same asset are charged against the surplus directly in equity; all other decreases are charged to the statement of comprehensive income.

Land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost or re-valued amounts to their residual values over their estimated useful lives. The rates used are as follows:

Per annum%

Freehold building 2.5

Furniture, fittings and equipment 10 - 162/3

Computer equipment 162/3

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the statement of financial position date. 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 proceeds with carrying amounts. These are included in the statement of comprehensive income. When re-valued assets are sold, the amounts included in revaluation surplus are transferred to accumulated surplus.

(d) Intangible assets

(i) Recognition and measurementIntangible assets that are acquired by the Credit Union and have finite useful lives are measured at cost less accumulated amortization and accumulated impairment losses.

(ii) Subsequent expenditureSubsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred.

(iii) AmortizationAmortization is calculated over the cost of the asset, or other amount substituted for cost, less its residual value. Amortization is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than way leave rights, from the date that they are available for use, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The intangible assets are amortized as follows:

Per annum

Computer software 16.67%


(c) Property, Plant and Equipment...(continued)




(e) Investment Property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes.

Investment property of the Credit Union comprises of land and building situated at St. John’s Street, St. George’s held for long-term rental yields and which is not occupied by the Credit Union. Investment property is treated as a long-term investment and is carried at fair value.

(f) Financial instruments

(i) Classification and measurementInitial recognition

Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

The Credit Union recognises loans to borrowers on the date on which they are originated. All other financial instruments (including regular-way purchases and sale of financial assets) are recognised on the trade date, which is the date on which the Credit Union becomes a party to the contractual provisions of the instrument.

Initial measurement

The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments. Financial instruments are initially measured at their fair value, except in the case of financial assets and financial liabilities recorded at fair value through profit or loss (FVPL) whereby transaction costs are added to, or subtracted from this amount.

Measurement categories of financial assets and liabilities

From 1st January, 2018 the Credit Union classifies all of its assets at either:

» Amortised cost or

» FVOCI

Before 1st January, 2018, the Credit Union classified its financial assets as held-to-maturity, loans and receivables and available-for-sale.

The Credit Union retained the existing requirements in IAS 39 for the classification of financial liabilities which is at amortised cost.





Amortised cost

From 1st January, 2018 the Credit Union measures its cash and cash equivalents, investment securities, members’ loans and receivables and prepayments at amortised cost. Financial assets are measured at amortised cost if both of the following conditions are met:

» The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows and

» The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

Financial assets at fair value through other comprehensive income

Financial assets in this category are those that are designated by management upon initial recognition or are mandatorily required to be measured at fair value under IFRS 9.

The Credit Union irrecoverably elected to present subsequent changes in fair value of an equity investment that is neither held for trading nor contingent consideration recognised by an acquirer in a business combination in other comprehensive income.

When equity investment designated as measured at FVOCI is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is subsequently transferred to accumulated surplus.

Dividend income from equity instruments measured at FVOCI is recorded in comprehensive income as other income when the right to the payment has been established.

(ii) ImpairmentImpairment of financial assets

In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss (ECL) model as opposed to an incurred credit loss model under IAS 39. The expected credit loss model requires the Credit Union to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition of the financial assets. Therefore, it is no longer necessary for a credit event to have occurred before credit losses are recognised.

From 1st January 2018 the Credit Union has been recording an allowance for expected credit losses for all members loans and individual receivables and prepayments.

ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Credit Union expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.


(f) Financial instruments...(continued)




ECLs are recognised in three stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures which are credit impaired or for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

The Credit Union considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Credit Union may also consider a financial asset to be in default when internal or external information indicates that the Credit Union is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Credit Union.

Based on the above process, the Credit Union classifies its ECLs into Stage 1, Stage 2 and Stage 3.

Stage 1

When financial assets are first recognised, the Credit Union recognises an allowance based on 12 months ECLs. Stage 1 financial assets also include facilities where the credit risk has improved and the financial assets have been reclassified from Stage 2.

Stage 2

When financial assets have shown a significant increase in credit risk since origination, the Credit Union records an allowance for the Lifetime ECLs. Stage 2 also include facilities, where the credit risk has improved, and financial assets have been reclassified from Stage 3.

Stage 3

Financial assets considered credit-impaired. Here the Credit Union records an allowance for the Lifetime ECLs.

The mechanics of the ECL calculations are outlined below and the key elements are, as follows:

PD - The Probability of Default is an estimate of the likelihood of default over a given period of time. A default may only happen at a certain time over the asserted period, if the facility has not been previously derecognised and is still in the portfolio.

EAD - The Exposure at Default is an estimate of the exposure at a future default date, taking into account expected changes in the exposure after the reporting date including repayments of principal and interest, whether scheduled by contract or otherwise.

LGD - The Loss Given Default is an estimate of the loss arising in the case where a default occurs at a given time. It is based on the difference between the contractual cash flows due and the cash flows expected to be received. It is usually expressed as a percentage of the EAD.

The maximum period for which the credit losses are determined is the contractual life of a financial instrument.






Calculation of ECLs

Stage 1

The 12mECL is calculated as the portion of LTECLs that represent the ECLs that result from default events on a financial instrument that are possible within the 12 months after the reporting date. The Credit Union calculates the 12mECL allowance based on the expectation of a default occurring in the 12 months following the reporting date. These expected 12-month default probabilities are applied to a forecast EAD and multiplied by the expected LGD.

Stage 2When financial assets have shown a significant increase in credit risk since origination, the Credit Union records an allowance for the LTECLs. The mechanics are similar to those explained above, but PDs and LGDs are estimated over the lifetime of the loan.

Stage 3For financial assets considered credit-impaired, the Credit Union recognises the lifetime expected credit losses for these financial assets. The method is similar to that for Stage 2 assets.

(iii) Impairment of other financial assets Investment securities and Cash and cash equivalents

The Credit Union’s cash at bank and investment securities are deposits placed with reputable institutions and countries where there has been no significant default. The Credit Union therefore considers the risk of default to be low. The ECLs on these instruments were therefore determined to be zero.

Receivables and prepayments

The Credit Union’s receivables and prepayments are mostly short-term with minimal exposure to risk. The ECLs on these instruments were assessed on an individual basis.

(iv) Write offsThe gross carrying amount of a financial asset is written off to the extent that there is no realistic prospect of recovery. This is generally when the Credit Union determines that the borrower does not have assets or resources of income that would generate sufficient cash flows to repay the amount subject to the write-off. However, the financial assets could still be subject to enforcement activities in order to comply with the Credit Union’s procedures.

(v) Derecognition of financial assetsThe Credit Union derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the Credit Union neither transfers nor retains






substantially all the risks and rewards of ownership and continues to control the transferred asset, the Credit Union recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Credit Union retains substantially all the risks and rewards of ownership of a transferred financial asset, the Credit Union continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in comprehensive income.

(vi) Financial liabilitiesWhen financial liabilities are recognised, they are measured at fair value of the consideration given plus transactions costs directly attributable to the acquisition of the liability. Financial liabilities are re-measured at amortised cost.

Financial liabilities are derecognized when they are extinguished, that is when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability extinguished and the consideration price is recognised in the statement of comprehensive income.

(g) Cash and Cash Equivalents

Cash and cash equivalents comprises of cash on hand and at bank. Bank overdraft is included as a component of cash and cash equivalents for the purpose of the cash flow statement. Bank overdraft is shown within borrowings in current liabilities on the statement of financial position.

(h) Provisions

Provisions are recognised when the Credit Union has a present legal or constructive obligation, as result of past events, if it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount can be made.

(i) Revenue Recognition

Revenue comprises the fair value of the consideration received or receivable in the ordinary course of the Credit Union’s activities. Revenue is shown net of rebates. Revenue is recognised as follows:

(i) Sales of servicesSales of services are recognised in the accounting period in which the services are rendered.

(ii) Interest and investment incomeInterest income and investment income is recognized on an accrual basis using the effective interest method.


(f) Financial instruments




(j) Shares Equity

Members’ Ordinary shares are classified as equity.

(k) Trade payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less, if not, they are presented as non-current liabilities.

Trade payables are recognised initially at fair value and subsequently measured at amortized cost using the effective interest rate method.

(l) Borrowings

Borrowings are recognised at fair value net of transaction cost incurred. Borrowings are subsequently stated at amortized cost: any difference between the proceeds, net of transaction cost, and the redemption value is recognised in the statement of comprehensive income over the period of borrowings. Borrowings are classified as current liabilities unless the Credit Union has an unconditional right to defer settlement of the liability for at least twelve (12) months after the statement of financial position.

(m) Leases

Assets leased out under operating leases are included in property, plant and equipment or investment property in the statement of financial position. They are depreciated over their expected useful lives on a basis consistent with similar property, plant and equipment. Rental income is recognized on a straight-line basis over the lease term. Leases entered into by the Credit Union are all operating leases. Payments made under operating leases are charged to the profit and loss account in accordance with the terms of the lease.

(n) Dividends

Dividends that are proposed and declared during the period are accounted for as an appropriation of retained earnings in the statement of changes in members’ equity.

Dividends that are proposed and declared after the statement of financial position date are not shown as a liability on the statement of financial position but are disclosed as a note to the financial statements

(o) Related parties

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 or operating decisions. Transactions entered into with related parties in the normal course of business are carried out on commercial terms and conditions during the year.





(p) Foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are re-translated at the rate of exchange ruling at the statement of financial position date. The resulting profits and losses are dealt with in the statement of comprehensive income. There are no foreign currency borrowings.

(q) Finance charges

Finance charges are recognized in the statement of comprehensive income as an expense in the period in which they are incurred.

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS IN APPLYING ACCOUNTING POLICIESThe development of estimates and the exercise of judgment in applying accounting policies may have a material impact on the Credit Union’s reported assets, liabilities, revenues and expenses.

The items that may have the most effect on the financial statements are set out below.

Valuation of propertyThe Credit Union utilizes professional valuators to determine the fair value of its properties. Valuations are determined through the application of a variety of different valuation methods which are all sensitive to the underlying assumptions chosen.

Calculation of expected credit loss allowancesThe measurement of impairment losses under IFRS 9 across all categories of financial assets requires judgement. These estimates are driven by a number of factors, changes in which can result in different levels of allowances.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is a significant estimate. The amount of ECLs is sensitive to change in circumstances and of forecast economic conditions. The Credit Union’s historical credit loss experience and forecast of economic conditions may also not be representative of actual default in the future.

Property, plant and equipmentThe Credit Union exercise judgment in determining whether future economic benefits can be derived from expenditures to be capitalized and estimates the useful lives and residual value of these assets.





4. INVESTMENT PROPERTIES

Carrying valueat 1st January, 2018

Appreciation in fair value

Carrying value December, 2018

Grenada Union of Teachers School Supplies property

Horizon Plaza property

3,772,100

6,832,200

210,300

70,100

3,982,400

6,902,300

$10,604,300 $280,400 $10,884,700

On the 1st February, 2019 Credit Union’s Investment properties were revalued by MJ Property Services independent valuators, on an open market basis.

5. MEMBERS’ LOANS

2018 2017

Total loans

Less: Expected credit loss

150,377,121

(887,871)

135,673,749

(943,046)

Balance at 31st December, 2018 $149,489,250 $134,730,703

6. FINANCIAL ASSETS

(i) AMORTISED COST (Previously loans and receivable under IAS 39)

Grenville Co-operative Credit Union Limited – Fixed deposit

Clico International Life Insurance Limited

- Executive Flexible premium annuity

Grenada Co-operative Bank Limited – Fixed deposit

Grenada Public Service Co-operative Credit Union Limited

- Special savings account

- Fixed deposit

Grenada Cooperative Credit Union League Limited

- Fixed deposit

- Regular deposit

Government of Antigua & Barbuda – 1 year bond

Government of Antigua & Barbuda – 180 day Treasury bill

Government of Antigua & Barbuda – 2 year bond

Government of St. Lucia – 18 month Treasury note

903,886

2,000,000

1,689,716

276

2,420,707

1,314,297

313,125

506,173

212,467

228,000

496,288

878,129

2,000,000

1,685,159

276

2,215,290

1,276,017

306,956

494,286

558,491

228,000

-

Less: Expected credit loss

10,084,935

(2,000,000)

9,642,604

(2,000,000)





(ii) FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Previously available for sale under IAS 39)

2018 2017

Anric Company Limited

- 4,500 preference shares

The Grenada Cooperative Credit League Limited

- 8,320 ordinary shares

Grenada Co-operative Bank Limited


RBTT Bank Grenada Limited


Republic Bank (Grenada) Limited


Grenada Electricity Services Limited


Jonas Browne & Hubbard (Grenada) Limited


Corporate Enterprise Finance Facility Limited


-

41,600

418,880

31,087

180,000

243,760

20,000

500,000

189,450

41,600

418,880

129,816

180,000

243,760

25,000

500,000


6. FINANCIAL ASSETS...(continued)




7.

PRO

PERT

Y, P

LAN

T AN

D EQ

UIP

MEN

T

Build

ing

Leas

ehol

d Im

prov

emen

tsFr

eeho

ldPr

oper

ties

Furn

iture

,Fi

xtur

es a

ndEq

uipm

ent

Com

pute

rEq

uipm

ent

Tota

l

Bala

nce

at 1

st J

anua

ry, 2

017

Cost

/val

uatio

n

Accu

mul

ated

dep

reci

atio

n

7,33

7,37

3

(1,2

94,3

98)

381,

066

(177

,955

)

678,

255 -

1,41

5,83

5

(788

,558

)

764,

298

(468

,313

)

10,5

76,8

27

(2,7

29,2

24)

NET

BOOK

VAL

UE$6

,042

,975

$203

,111

$678

,255

$627

,277

$295

,985

$7,8

47,6

03

For t

he y

ear e

nded

31s

t Dec

embe

r, 20

17

Open

ing

book

val

ue

Addi

tions

for t

he y

ear

Depr

ecia

tion

char

ge fo

r the

yea

r

6,04

2,97

5 -

(169

,403

)

203,

111

32,8

89

(67,

426)

678,

255 - -

627,

277

396,

780

(100

,958

)

295,

985

78,2

13

(75,

973)

7,84

7,60

3

507,

882

(413

,760

)

NET

BOOK

VAL

UE$5

,873

,572

$168

,574

$678

,255

$923

,099

$298

,225

$7,9

41,7

25

Bala

nce

at 3

1st D

ecem

ber,

2017

Cost

/Val

uatio

n

Accu

mul

ated

dep

reci

atio

n

7,33

7,37

3

(1,4

63,8

01)

413,

955

(245

,381

)

678,

255 -

1,81

2,61

5

(889

,516

)

842,

511

(544

,286

)

11,0

84,7

09

(3,1

42,9

84)

NET

BOOK

VAL

UE$5

,873

,572

$168

,574

$678

,255

$923

,099

$298

,225

$7,9

41,7

25

For t

he y

ear e

nded

31s

t Dec

embe

r, 20

18

Open

ing

book

val

ue

Addi

tions

for t

he y

ear

Depr

ecia

tion

char

ge fo

r the

yea

r

5,87

3,57

2

92,4

31

(171

,723

)

168,

574 -

(67,

426)

678,

255 - -

923,

099

83,3

73

(127

,257

)

298,

225

40,4

14

(81,

213)

7,94

1,72

5

216,

218

(447

,619

)

$5,7

94,2

80$1

01,1

48$6

78,2

55$8

79,2

15$2

57,4

26$7

,710

,324

Bala

nce

at 3

1st D

ecem

ber,

2018

Cost

/Val

uatio

n

Accu

mul

ated

dep

reci

atio

n

7,42

9,80

4

(1,6

35,5

24)

413,

955

(312

,807

)

678,

255 -

1,89

5,98

8

(1,0

16,7

73)

882,

925

(625

,499

)

11,3

00,9

27

(3,5

90,6

03)

NET

BOOK

VAL

UE$5

,794

,280

$101

,148

$678

,255

$879

,215

$257

,426

$7,7

10,3

24




8. INTANGIBLE ASSETS

ComputerSoftware

Balance at 1st January, 2017

Cost

Accumulated amortization

259,198

(136,372)

NET BOOK VALUE $122,826

For the year ended 31st December, 2017

Opening book value

Additions for the year

Amortization for the year

122,826

2,627

(23,129)

$102,324

Balance at 31st December, 2017

Cost


261,825

(159,501)


For the year ended 31st December, 2018

Opening book value

Additions for the year

Amortization for the year

102,324

94,732

(38,919)

$158,167

Balance at 31st December, 2018

Cost


356,557

(198,420)


9. ACCOUNTS RECEIVABLE

2018 2017

Sundry debtors

Other receivable

Government of Grenada receivable

475,459

5,276,874

690,723

681,178

1,044,248

706,308





10. CASH AND CASH EQUIVALENTS

2018 2017

Cash on hand

Republic Bank (Grenada) Limited

- Current account – St. George’s

- Carriacou

RBTT Bank Grenada Limited

- Savings account

- Current account

Grenada Co-operative Bank Limited

- School current account

- Current account

Government of St. Lucia – 91 day Treasury bill

2,427,024

32,509

293,206

3,898

54,174

-

11,445,625

496,340

2,887,080

32,509

200,542

3,863

54,486

704

8,079,203

496,340


11. EQUITY SHARES

(i) Qualifying Shares -These totaled $2,024,800 (2017 - $1,831,600) at the end of the year and are mandatory non-withdrawable shares. They are of a nominal value of $5.00. Each member is required to own forty (40) shares of $5.00 each, which are payable over six (6) months.

(ii) Non-qualifying shares – These totaled $12,190,013 (2017 - $11,022,301) at the end of the year and represent non-mandatory shares purchased by members and shares which have not met the mandatory amount of $200.00.

12. STATUTORY RESERVE


Add: Entrance fees

Transfer from operations

3,401,660

8,448

804,695

2,667,554

12,051

722,055


In accordance with Section 125 (4) of the Co-operative Societies Act No. 8 of 2011, at least 20% of the surplus for the year shall be transferred to a Reserve Fund. Entrance fees collected during the year are also credited to this reserve.




13. DEVELOPMENT FUND

2018 2017


Transfer from operations

Payment to league

31,878

96,563

(28,882)

29,022

28,882

(26,026)

Balance at 31st December, 2018 $99,559 $31,878

The fund is calculated at 3% (1% - 2017) of the surplus for the year and is payable to the Grenada Co-operative League Limited in accordance with Section 126 of the Co-operative Societies Act No.8 of 2011.

14. REVALUATION RESERVE


The Credit Union’s property was revalued in March, 2009 by Leslie S. Barry (Barry’s Engineering) professional valuator, using the open market method. This revaluation resulted in an excess over book value of $3,838,149.

15. DISASTER FUND

This fund was created to assist the Credit Union, other organizations and persons in need due to disasters.

16. OTHER RESERVE

This amount represents changes in the fair value of financial assets carried at fair value through other comprehensive income.

17. LONG-TERM BORROWING

Eastern Caribbean Home Mortgage Bank $3,924,526 $5,187,517

The Eastern Caribbean Home Mortgage Bank (ECHMB) borrowing represents the value of loans sold to ECHMB.

Under the terms of the agreement, the Credit Union remains obligated to imdemnify ECHMB with respect to any default or title deficiency occurring during the life of the loans secured by the purchase of mortgages.




18. MEMBERS’ DEPOSITS

2018 2017

Regular savings

Term deposits

Special savings

Miscellaneous savings

Solid Gold

Mortgage savings

School accounts

Smart saver

85,919,949

37,725,102

10,038,858

947,069

20,233,429

41,523

1,134,077

2,272,826

75,786,223

36,182,591

7,079,275

736,467

18,709,724

65,928

1,079,824

2,015,012


Interest is payable on these amounts at rates varying between 2.50% and 4.5% per annum.

19. NON-INTEREST BEARING LIABILITIES

Accrued interest – members’ savings and deposits

Other liabilities

Provision for audit fees

444,041

3,594,804

25,000

487,766

907,785

24,000


20. INCOME TAX

The Credit Union is exempt from the payment of Income Tax under Section 25(P) of the Income Tax Act 1994.

21. OTHER INCOME

Investment income

Rental income

Sundry

153,714

345,903

461,395

67,492

369,604

294,307

Balance at 31st December, 2018 $961,012 $731,403




22. RELATED PARTY TRANSACTION

A number of transactions have been entered into with related parties in the normal course of business. These transactions were carried out on commercial terms and at market rates.

2018 2017

(a) Balances held by directors and key management at year-end were:

Loans and advances $1,545,647 $1,568,156

Deposits and shares $717,628 $751,791

(b) Compensation paid to key management Salaries and other benefits $700,623 $609,500

23. COMMITMENTS

(i) Operating lease

As at 31st December, 2018, the Credit Union was committed to annual lease payments as follows:

Within one (1) year $219,620 $18,000

Between two (2) to five (5) years $449,648 $ 0

(ii) Undisbursed members’ loansLoans approved but not yet disbursed totalled $8,598,367.

24. COMPARATIVE FIGURES

Certain of the 2017 comparative figures have been reclassified to conform to the current year’s financial statement presentation. These changes have no impact on the surplus reported for the previous year.

25. PRIOR YEAR ADJUSTMENTS

(a) Intangible assets

The Credit Union had previously capitalised costs for computer software as computer equipment under property, plant and equipment. As these costs are intangible assets within the scope of IAS 38 – Intangible assets, they are required to be recognised as a separate line item and amortised.

There is no effect on the statement of comprehensive income as these costs are amortised at the same rate as computer equipment capitalised as property, plant and equipment.




The effect of the adjustment on the prior year statement of financial position are as follows:

31/12/2017 01/01/2017

Net book value – property, plant and equipment

Intangible assets:

Cost capitalised

Accumulated amortization charged

8,044,049

(261,825)

159,501

7,970,429

(259,198)

136,372

Net book value (102,324) (122,826)

Net book value (restated) $7,941,725 $7,847,603

Intangible assets:

Net book value

Cost capitalised

Accumulated amortization charged

-

261,825

(159,501)

-

259,198

(136,372)

Net book value 102,234 122,826

Net book value (restated) $102,324 $122,826

(b) ECHMB loans

During the year ended 31st December, 2017, the Credit Union entered into an agreement with the Eastern Caribbean Home Mortgage Bank (ECHMB) to purchase certain mortgages from the Credit Union.

Under the terms of the agreement, the Credit Union remains obligated to imdemnify ECHMB with respect to any default or title deficiency occurring during the life of the loans secured by the purchase of mortgages.

The effects on the statement of financial position as at 31st December, 2017 are as follows:

31/12/2017

Statement of financial position:

Members’ loans (previously stated)

Reclassified ECHMB loans sold

129,543,186

5,187,517

Members’ loans (restated) $134,730,709

Long-term borrowing (previously stated)

Reclassified ECHMB loans sold

-

5,187,517

Long-term borrowing (restated) $5,187,517

25. PRIOR YEAR ADJUSTMENTS...(continued)




26. FINANCIAL RISK MANAGEMENT

The Credit Union’s activities expose it to the following risk from the use of financial instruments:

» Credit risk

» Liquidity risk

» Currency risk

» Interest rate

» Operational risk

Risk management structure

The Board of Directors is responsible for the overall risk management approach and for approving the risk strategies, principles, polices and procedures. Day to day adherence to risk principles are carried out by the executive management of the Credit Union in compliance with the policies approved by the Board of Directors.

The Credit Union’s risk management policies are established to identify and analyse the risk faced by the Credit Union, to set appropriate risk limits and controls, to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to deflect changes in market conditions, products and services offered. The Credit Union through its training and management standards and procedures, aims to develop a disciplined and constructive control environment, in which all employees understand their roles and obligations.

The Board has established two committees, the Credit Committee and the Supervisory Committee, which are responsible for the developing and monitoring the Credit Union’ risk management policies in their specified areas. Both committees report to the Board of Directors and their activities are as follows:

Credit Committee

The Credit Committee is elected by the members at the annual general meeting. This committee considers all applications for loans and makes recommendations to the Board in respect of the applications and performs such duties as prescribed in the articles of the Co�operative Act, the regulations and the By-Laws of the Credit Union.

Supervisory Committee

The Supervisory Committee is elected by the members at the annual general meeting. The supervisory committee shall examine the books of the Credit Union, confirm the deposits of the members and perform such other duties as are prescribed by the Co-operative Act, the regulations and the By-Laws of the Credit Union.

Credit risk:

Credit risk is the risk of financial loss to the Credit Union if a member or counter-party to a financial instrument fails to meet its contractual obligations and arises principally from the Credit Union’s receivables from the inability of members to repay loans, the inability of investments and cash and cash equivalents to be recuperated or interest on them to be realized, and receivables to not materialize.




Management credit risk

The Credit Union’s main objective as regards to credit risk is to protect against any unwanted counterparty credit exposures, maintain credit risk at a manageable level and identify and avoid material credit failure that would impart earnings.

The Credit Union measures and manages credit risk on a aggregate basis by including all existing relationships with a particular customer or related entity of the same corporate organization. When measuring credit risk, the Credit Union takes a conservative view towards uncertainty and error in the direction of overstating the risk.

Loans

Exposure to credit risk is managed through regular analysis of the ability of borrowers to settle outstanding balances and meet repayment obligations, and by changing lending limits when appropriate.

Other financial assets

With respect to credit risk arising from the other financial assets of the Credit Union, which comprise cash and cash equivalents and investments, the Credit Union’s exposure to credit risk arises from default of the counter-party. The Credit Union seeks to hold its funds with financial institutions which management regards as sound.

The markets for investments are monitored regularly to ensure the returns are guaranteed.

Exposure to credit risk

The Credit Union’s maximum exposure to credit risk before collateral held and other credit enhancement is as follows:

Maximum exposure

2018 2017

Cash and cash equivalents

Financial assets

Accounts receivable

Members’ loans

14,752,776

9,520,262

6,443,056

149,489,250

11,754,727

9,371,110

2,431,734

134,730,703


26. FINANCIAL RISK MANAGEMENT...(continued)




Concentration of credit risk:

Cash and Cash

EquivalentsFinancial

AssetsAccounts

ReceivablesMembers’

Loans Total

ConstructionBusinessLandFinanceServicesEducationPersonalVehicle Government

---

14,752,776---- -

---

5,644,5522,432,782

---

1,442,928

---

5,062,095475,459

-214,778

-690,724

51,659,2353,658,2485,520,078

30,602,3895,584,2794,865,591

29,878,66917,720,761

-

51,659,2353,658,2485,520,078

56,061,8128,492,5204,865,591

30,093,44717,720,761

2,133,652

Balance at 31st December, 2018 $14,752,776 $9,520,262 $6,443,056 $149,489,250 $180,205,344

ConstructionBusinessLandFinanceServicesEducationPersonalVehicleGovernment

---

11,754,727---- -

---

5,507,5502,582,783

---

1,280,777

---

743,096681,178

-301,152

- 706,308

50,376,9113,256,1076,242,396

23,073,6456,429,5064,824,578

26,493,96914,033,591

-

50,376,9113,256,1076,242,396

41,079,0189,693,4674,824,578

26,795,12114,033,591

1,987,085

Balance at 31st December, 2017 $11,754,727 $9,371,110 $2,431,734 $134,730,703 $158,288,274

Analysis of gross carrying amount and corresponding ECL are as follows:

Members’ loans

Stage 1 Stage 2 Stage 3 Stage 4

Balance at 31st December, 2018Gross loansECL

146,022,924-

1,119,917-

3,234,280(887,871)

150,377,121(887,871)

Net balance $146,022,924 $1,119,917 $2,346,409 $149,489,250

ECL as a percentage of gross loan 0.00% 0.00% 27.45% 0.59%

Balance at 1st January, 2018Gross loansECL

131,207,781-

1,050,339-

3,415,629(943,046)

135,673,749(943,046)

Net balance $131,207,781 $1,050,339 $2,472,583 $134,730,703

ECL as a percentage of gross loans 0.00% 0.00% 27.61% 0.70%





2018 2017

Stage 1

Stage 2

Stage 3

97.10%

0.75%

2.15%

96.71%

0.77%

2.52%

100.00% 100.00%

Write off policy

The Credit Union writes off a loan when it determines that the loan is uncollectible after considering information such as the occurrence of significant changes in the borrower’s financial position such that the borrower can no longer meet the obligation, and that proceeds from collateral will not be sufficient to recover the entire exposure.

Management of liquidity risk

The Credit Union’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Credit Union’s reputation. The Treasury department of the Credit Union is responsible for the overall management of liquidity. In addition, liquidity and funding risk, and related processes and policies are overseen by management of the Credit Union.

The management of liquidity of the Credit Union includes:

» Holding financial assets where there is a liquid market and therefore readily saleable to meet liquidity needs.

» olding financial assets which are not traded in a liquid market, but which can be expected to generate cash flows that will be available to meet cash outflows on liabilities.

» Monitoring statement of financial position liquidity ratios against internal and regulatory requirements.

» Maintaining debt financial plans.

» Monitoring depositor’s concentration in order to avoid undue reliance on large individual depositors and ensuring a satisfactory overall funding mix.

» Maintaining liquidity and funding contingency plans. These plans identify early indicators of stress conditions and describe actions to be taken in the event of difficulties arising from systemic or other crises while minimizing adverse long-term implications for the Credit Union.





The table below summaries the maturity profile of the Company’s financial liabilities at 31st December, 2018 based on contractual arrangements.

On Demand Up to one year Over one year Total

Long-term borrowing

Members’ deposits

Non-interest bearing liabilities

3,924,526

158,312,833

3,341,129

-

-

-

-

-

722,716

3,924,526

158,312,833

4,063,845

Balance at 31st December, 2018 $165,578,488 - 722,716 $166,301,204

Long-term borrowing

Members’ deposits

Non-interest bearing liabilities

5,187,517

141,655,044

894,694

-

-

-

-

-

524,857

5,187,517

141,655,044

1,419,551

Balance at 31st December, 2017 $147,737,255 $ - $ 524,857 $148,262,112

Currency rate risk:

Currency rate risk is the risk that the value of cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates. The Credit Union operates primarily in the Eastern Caribbean Dollars and is therefore not subject to significant foreign currency risk. However, some of its transactions are in United States Dollars but as the Eastern Caribbean Dollar is pegged to the United States Dollar, there is no significant currency risk exposure.

Interest rate risk:

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Management of interest risk rate

The Credit Union’s exposure to interest risk is managed through the matching of funding products with financial services and monitoring market conditions and yields.

Exposure to interest rate risk

Floating rate instrument expose the Credit Union to cash flow interest risk where as fixed rate instruments expose the Credit Union to fair value interest rate risk.





Operational risk:

Operational risk is the risk or direct or indirect loss arising from a wide variety of causes associated with the Credit Union’s processes, personal, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of good corporate behaviour. Operational risk arises from all of the Credit Union’s operations. The Credit Union’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Credit Union’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity. The primary responsibility for development and implementation of controls to address operational risk is assigned to senior management. This responsibility is supported by the development of overall Credit Union standards for the management of operational risk in the following areas:

» Requirements for appropriate segregation of duties, including the independent authorization of transactions

» Requirements for the reconciliation and monitoring of transactions.

» Compliance with regulatory and other legal requirements

» Documentation of controls and procedures

» Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified

» Requirements for the reporting of operational losses and proposed remedial action

» Development of contingency plans

» Training and professional development

» Risk mitigation, including insurance where this is effective




SCHEDULE A

2018 2017

GENERAL AND ADMINISTRATIVE EXPENSES

Salaries and wages

National Insurance contributions

Pension

Gratuity

League dues

Insurance

Stationery and printing

Rent

Subscriptions and donations

Uniforms

Audit and accounting fee

Legal and professional fees

Advertising

Annual General Meeting

Education and seminars

Entertainment

Interest and bank charges

Telephone, electricity and cable

Honorarium

Health benefit

Property tax

Computer maintenance

Repairs and maintenance

Rates and taxes

Credit Union Day expenses

Office supplies

Depreciation

Officers allowance

Travel

Miscellaneous

Bad debt

Security

Horizon Plaza expenses

GTSS expense

Debit Card expenses

Retirement function

2,125,298

81,757

81,953

197,859

115,000

330,882

82,343

235,693

29,251

29,880

28,750

65,688

341,330

35,991

179,983

60,740

223,920

394,116

67,500

20,532

10,932

51,598

116,801

7,994

47,594

31,435

486,538

39,900

112,229

(3,417)

-

132,447

46,087

3,134

73,865

-

2,058,748

74,581

69,591

182,712

115,000

363,851

102,175

229,914

36,162

36,085

24,201

40,473

312,964

38,590

154,914

57,415

179,519

379,644

77,900

19,754

11,507

48,353

129,540

5,051

29,490

26,482

436,889

39,900

117,772

13,953

55,264

105,536

37,516

-

28,577

38,723


Schedule of General and Administrative ExpensesFor the year ended 31St December, 2018



What’s good for you is good for your credit union. Because credit unions are not-for-profit financial service cooperatives—owned and

controlled by the people who use their services—they work for the benefit of members. That means your opinions and expectations count. In fact, member needs and standards drive the credit union’s product and service offerings, and are the true measure of a credit union’s success.

Because you’re the force behind our credit union’s growth and prosperity, and because credit unions work for members, you and fellow members can expect:

1. A financially secure institution complying with the laws and regulations that govern it.

2. A solid financial condition; responsible management of members’ financial resources.

3. Highly principled employees demonstrating integrity, professionalism, and ethical behavior.

4. Respectful, courteous, timely, and unbiased personal service.

5. Confidential records and transactions.

6. The opportunity for your opinions to be heard and valued.

7. An equal vote with other members, regardless of account balance.

8. Volunteer credit union board and committee membership opportunities if you qualify and are elected.

MEMBER BILL OF RIGHTS

9. Dividend/interest and loan rates that compete with and, whenever possible, offer advantages over other financial institutions’ rates.

10. Truthful advertising and disclosure of product and service rates, risks, charges, obligations, terms and conditions

11. Timely notification and correction of credit union errors or inaccuracies.

12. Timely response to loan requests, account problems, or suggestions.

13. Recourse appeal and fair resolution of problems.

14. Consumer information to help you make wise credit, saving, and purchasing decisions, and to effectively manage your money.



APPROVAL OF 2018 BUDGETWhereas, the Bye-laws Article XI Section 37 (2) (h) mandate that the Budget should be approved by the Annual General Meeting.

And whereas the Budget for 2019 is presented to this Annual General Meeting.

Be it resolved that the Budget as presented and/or amended be approved by this Annual General Meeting.

APPOINTMENT OF AUDITORSWhereas Co-operative Act section 136 stipulates that an Auditor ceases to hold office after five consecutive years of office.

And whereas the Accounting Firm Parnell-Kerr Forster (PKF) has held office for more than five years.

Be it resolved that the accounting firm BDO Eastern Caribbean be appointed as the new auditor of the G.U.T. Co-operative Credit Union Limited for 2019.

APPROVAL FOR BORROWING LIMIT Whereas, the Bye-Laws, Article XI Section 37 (2) (m) Stipulates that the Annual General Meeting must set the maximum borrowing limit by the Credit Union

Be it resolved that the maximum borrowing limit for the Credit Union for 2019 be $10,000,000.

PAYMENT OF DIVIDENDWhereas in order to pay a dividend, the G.U.T. Co-operative Credit Union’s institutional capital ratio must be at least 7% of total assets.

And whereas the G.U.T. Co-operative Credit Union has attained an institutional capital ratio of 8% for 2018.

Be it resolved that a dividend of 3.5% be paid to shareholders of the G.U.T. Co-operative Credit Union.

REDUCTION OF QUORUM

Whereas the quorum for the Annual, General and Special Meetings of the G.U.T. Co-operative Credit Union’s is three hundred (300).

And whereas the G.U.T Co-operative Credit Union’s has been unable to achieve this quorum for many years.

And whereas other credit unions including those with a larger member base than the G.U.T Co-operative Credit Union have established smaller quorums.

And whereas the G.U.T Co-operative Credit Union has used numerous means of communication, promotions and incentives to encourage members to attend the Annual General Meeting with little avail.

Be it resolved that the quorum for G.U.T Co-operative Credit Union be set at one hundred and twenty (120).

FORMALISING OF QUALIFYING SHARESWhereas the G.U.T. Co-operative Credit Union has been using the qualifying shares to be 60 shares at $5 each ($300) for many years.

And whereas the members of G.U.T. Co-operative Credit Union have generally accepted that the qualifying share amount to be a member is 60 shares at $5 each ($300)

And whereas more than 8000 members already have the qualifying shares of 60 shares at $5 each

And whereas the amount of $300 is used to strengthen the capital base of the credit union and allows the credit union to be better able to protect member investment

Be it resolved that the qualifying shares amount to be a member of 60 shares at $5 each ($300) be officially formalised and approved

RESOLUTIONS



BOARD OF DIRECTORS

Year Name Term Expiration Region

2017 Andre Martin 3 Years 2020 St. Mark

2017 Edison Francis 3 Years 2020 St. David

2017 Miguel Fortune 3 Years 2020 St. Andrew

2017 Kevin Andall 3 Years 2020 Independent

2018 Florina Thomas 3 Years 2021 Independent

2018 Finley Jeffrey 3 Years 2021 St. Patrick

2018 Kim Parris 3 Years 2021 St. George

2019 Kenrick Mc Sween 3 Years 2022 Independent

2019 Louis Williams 3 Years 2022 Independent

2019 Joslyn Augustus La Touche 3 Years 2022 Independent

2019 Cornice James 3 Years 2022 Independent

2019 Mary Noel 3 Years 2022 Carriacou

SUPERVISORY COMMITTEE

Year Name Term Expiration

2017 Sobrina La Rose 3 years 2020

2018 Jenner James 3 years 2021

2018 Natalie Ruffin 3 years 2021

2018 Nerrisa Celestine-James 3 years 2021

2018 Ananira Herry 3 years 2021

CREDIT COMMITTEE

Year Name Term Expiration

2016 Irva Alexander 3 years 2019

2017 Gordon Welsh 3 years 2020

2018 Leon Radix 3 years 2021

2018 Asha Bailey 3 years 2021

2018 Cathyann Alexander-Pierre 3 years 2021

TERM IN OFFICE



Lord, make me an instrument of thy peace Where there is hatred, let me sow love Where there is injury, pardon Where there is doubt, faith Where there is despair, hope Where there is darkness, light and Where there is sadness, joy

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

Bless, O Lord, our deliberations and grant that Whatever we may say and do will have thy Blessing and guidance through Jesus Christ Our Lord Amen

CREDIT UNION PRAYER(Prayer Of St. Francis Of Assisi)

With us there are no barriers ‘cause we are all the same The more of us the happier the louder we’ll proclaim That we are owners’ members our rule is honesty, We are the Credit Union and all the world can see.

Chorus Together we give together we receive Together we help each other to achieve, ‘Cause in our world today, it’s not safe to be alone Let’s make each other’s cares to be our own.

We all will be true savers though it be great or small We will become shareholders providing loans for all, So when great need arises there’s no uncertainty, Once in the Credit union there’s help for you and me.

We pledge to be of service to better our land We harbour no prejudice upon this theme we stand, One man, one vote for members of high or low degree, For in the Credit Union there’s pure democracy.

CREDIT UNION SONG



NOTES

Cnr. Grenville &St. John’s StreetsSt. George’s,Grenada, W. I

Tel: 473 440 1354Fax: 473 435 6950

[email protected]

GUT CREDIT UNION...GUT CREDIT UNION 2018 A Rt 1 "tstmf fnr etmf clr "Vision, Mission, Values...

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