TABLE OF CONTENTS - GUT Credit Union La Rose Kelley Calliste Jenner James Magdalene Carmichael Randy...

Vision, Mission, Values

Corporate Information

2016 by the Numbers

Board of Directors

Committees

Notice of 33rd Annual General Meeting

Standing Orders

33rd Annual General Meeting Agenda

President’s Message

Minutes Of The 32nd Annual General Meeting

01

02

03

04

05

06

07

08

09

10

Minutes Of The Special Meeting

Board of Directors’ Report

Credit Committee’s Report

Supervisory and Compliance Committee’s Report

Budget

Pearls Ratio

Auditor’s Report

Resolutions

Terms of Office

16

17

24

28

33

34

35

62

63

TABLE OF CONTENTS

ANNUAL REPORT / 2016 1

OUR VISION To be the financial institution of

choice for members.

OUR VALUES Team work - Let us work together Honesty - Tell me what you really think Risk Taking - Nothing ventured – nothing gained Continuous Improvement - We are always looking to do things better Pride - We are proud of our successes Service - Giving our members what they need Environment - We take it seriously

OUR MISSIONTo provide the best possible service to members while meeting their primary

financial needs as measured by achieving the highest standards in benefits and

membership satisfaction.

VALUE TRANSLATION Commitment and Teamwork Honesty and Integrity An environment where innovation is encouraged and recognized A commitment to continuously doing things better Taking pride in outstanding performance Provide first class service to our members Fulfilment of our responsibility to the environment in which we operate

Vision, Mission&Values

ANCHORED IN OUR CO-OPERATIVE VALUES • INVESTING IN OUR PEOPLE

ANNUAL REPORT / 20162

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

Grenville BranchBen Jones StreetGrenville, St. Andrew’sPhone: 1 (473) 438-3526, Fax: 1 (473) 438-4814

Grand Anse BranchLe Marquis ComplexGrand Anse, St. George’sPhone/Fax: 1 (473) 439-7228

Sub-OfficesVictoriaQueen StreetVictoria, St. Mark’sPhone/Fax: 1 (473) 437-1502

CarriacouMain Street, Hillsborough, CarriacouPhone/Fax: 1 (473) 443-7676

AUDITORSPannell Kerr Forster

BANKERSGrenada Co-operative BankRepublic Bank RBTT

Operations ManagerPaula Mc Meo (Ms.)

Communication/Marketing ManagerCamille Goddard (Mrs.)

Loans ManagerNicole Roberts (Ms.)

Manager - Grenville BranchAlice Mc Queen (Ms.)

Supervisor (Ag) – Grand Anse BranchDonlyn Telesford (Ms.)

CORPORATE INFORMATION

SOLICITORS/ATTORNEYS Alban John Scott Street, St. George’s

Lindo & Co.Hillsborough Street, St. George’s

EXECUTIVE OFFICERSPresidentAndre Martin (Mr.)

Vice PresidentJoslyn Augustus La Touche (Mrs.)

SecretaryAlma Du Bois-Calliste (Mrs.)

Assistant SecretaryEdison Francis (Mr.)

TreasurerDecima Blake-Thomas (Mrs.)

Assistant TreasurerMiguel Fortune (Mr.)

MANAGEMENTGeneral ManagerSamuel Britton (Mr.)

Deputy General Manager Retesha Smith-Boyd (Mrs.)

Finance ManagerDamani Brizan (Mr.)

2016BY THE NUMBERS

17.4 14.215.089.8

17.4 14.215.089.8

%

%

%

%

%

%

%

%

Grew by 89.82%

Grew by 17.41%

Grew by 15.0%

Grew by 14.21%



2016BY THE NUMBERS

17.4 14.215.089.8

17.4 14.215.089.8

%

%

%

%

%

%

%

%

Grew by 89.82%

Grew by 17.41%

Grew by 15.0%

Grew by 14.21%



DIRECTORS

Joslyn Augustus La ToucheVice-President

Miguel FortuneAssistant - Treasurer

Cornice James

Andre MartinPresident

Decima Blake ThomasTreasurer

Beryl-Ann Clarkson

Kenrick Mc Sween

Florina Thomas

Mary Noel

Alma Dubios-CallisteSecretary

Edison FrancisAssistant - Secretary

Finley Jeffrey

Louis Williams

Board Members

Executive Officers




COMMITTEES

Irva Alexander

Imogene Howard

Leon Radix

Natalie Ruffin

Wayne Horsford

Sobrina La Rose

Kelley Calliste

Jenner James

Magdalene Carmichael

Randy Boyke Cadet

Credit

Supervisoryand 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: 33rd Annual General MeetingDATE: 20th April 2017

FELLOW MEMBERS,In compliance with Article 42 of the Co-operative Societies Act No: 8, 2011, notice is hereby given that the 33rd Annual General Meeting of the G.U.T. Co-operative Credit Union Limited will be held at the Grenada Boys Secondary School (GBSS), Tanteen, St. George. The meeting commences at 10:00 am Thursday 20th April, 2017 for the following purposes:

◊ To receive the Report of the Board of Directors and other Committees for 2016

◊ To receive the Audit Financial Report for 2016

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

◊ To discuss and approved the Budget for 2017

◊ To appoint auditors and fix their remuneration.

◊ To take action on such matters as may come before the 33rd Annual General Meeting.

All members are invited to attend.

Yours sincerely,

________________________Alma Du Bois-CallisteSecretaryBoard of Directors

NOTICE OF 33RD ANNUAL GENERAL MEETING



01. (a) A member shall stand when addressing the Chair.

(b) Speeches shall be clear and relevant to the subject before the meeting.

02. 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.

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

04. 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)

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

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

07. 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).

08. (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’

STANDING ORDERS

09. 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.



33RD ANNUAL GENERAL MEETING AGENDA

OPENING SESSIONCall to orderInvocationSilent TributeGreetings from Sister OrganisationsRemarks:

◊ President

◊ GCLL

◊ GARFIN

BUSINESS SESSIONAscertainment of a QuorumMinutes of the last Annual General MeetingReports:

◊ Adoption and Discussion

◊ Board of Directors

◊ Credit Committee

◊ Supervisory and Compliance Committee

◊ Financial

- Auditor’s

- Budget

- Pearls Ratio

NOMINATING COMMITTEE’S REPORT AND ELECTIONS

RESOLUTIONS

GENERAL BUSINESS

CONCLUSION



PRESIDENT'S MESSAGE

Greetings my dear friends:

The Grenada Union of Teachers Cooperative Credit Union is fast becoming the financial institution of choice for its members. Most financial indicators have shown that our institution has become a more viable entity and has been able to withstand the challenges of a plagued economy. Furthermore, it is forecasted for our credit union to experience greater surpluses, increased membership, increased use of our financial products, and growth in financial assets. We must, however, make every effort to guard against high delinquency ratios and reduce on excessive expenditure.

We have witnessed in the recent past, the downsizing of financial institutions, the threats of closure in business operations and misappropriation of institution’s funds. Bearing this in mind, we look forward to a brighter financial future as we strive to forge ahead with a new vision, strategically positioning ourselves as the financial institution where our members belong. Our members’ future is financially secure and their avenues for financial freedom are broadened.

The opportunity, in going forward, is for us to spring forth with a new vision: a new vision that will be anchored in

cooperative values but requiring changes in our scope of thinking at all levels: Board, management, staff, and committees. According to T. Harv Eker “The only way to permanently change the temperature in the room is to reset the thermostat. In the same way, the only way to change your level of financial success 'permanently' is to reset your financial thermostat. But it is your choice whether you choose to change.”

The Board will approve a strategic plan for 2017 -2019 and this plan will direct the efforts of a committed and purposeful management and staff along with the Supervisory and Compliance Committee and the Credit Committee, towards achieving financial success for all our members. As indicated in the strategic plan, in this volatile economy, it is a requirement of our institution to be more financially savvy and strike at shifting targets. Change is inevitable yet it should be gradual. We have to accept the change and the challenges associated with change. Moreover, it is imperative that the core teams in our organization become the guardians of this change. These guardians must ensure that our focus will always be member centered.

We express our profound gratitude to our recently retired manager, Mr. Samuel Britton for his visionary leadership of the credit union over the last two decades, especially during difficult times. It is important that we bind ourselves together in order to embrace the changes and the new challenges. Rest assured, though, that we are poised to be not only the institution of choice for our members but for all persons who can benefit from the operations of the Grenada Union of Teachers Cooperative Credit Union.

......................................Andre MartinPresident




1.0 CALL TO ORDER

1.1 At approximately 10:35 a.m. the meeting was called to order by the chairperson, Ms. Florina Thomas, who welcomed everyone to the 32nd Annual General Meeting of the Grenada Union of Teacher’s Co-operative Credit Union.

1.2 The persons seated at the head table were recognized , namely Mr. Carl Andall, President G.U.T. Co-operative Credit Union; Mr. Alister Phillip, GARFIN’s representative; Mrs. Joslyn Augustus La Touche, President of the Co-operative League; Mr. David Thomas, Assistant Secretary G.U.T. Co-operative Credit Union; and Mrs. Angela James, member of staff.

2.0 PRAYERS AND THE NATIONAL ANTHEM

2.1 Prayers including the universal credit union prayer were led by Mrs. Angela James. The National Anthem was then sung, followed by observation of a minute’s silence for deceased members.

3.0 OPENING REMARKS

3.1 The Chairperson, Ms. Florina Thomas welcomed everyone present to the 32nd Annual General Meeting of the Grenada Union of Teachers’ Co-operative Credit Union. She assured members that their attendance to the meeting was indicative of their interest in the organization. She further assured them that their participation was vital for the development of the credit union.

3.2 Additionally, she highlighted the theme of the meeting, “Member Focused: Service Minded”.

3.3 Fraternal greetings were read on the behalf of the Communal Co-operative Credit Union, which congratulated the G.U.T. Co-operative Credit Union on its 32nd Annual General Meeting. Reference was made to the theme and the philosophy of the credit union movement as credit unions continue working together in their endeavour to make a difference in the lives of their members.

4.0 PRESIDENT’S REMARKS

4.1 In his remarks, the President, Mr. Carl Andall, stated that it was his pleasure to address the 32nd Annual General Meeting of the GUT Co-operative Credit Union.

4.2 He referenced the theme, the increase in membership and the growth in the volume of business of the credit union. He went on to praise the team that lead the direction of the credit union for their hard work.

4.3 Reference was also made to the significant growth in the Assets by 14%, Loans by 17.6%, Equity by 11.5%, in Savings by 13.7%, in Shares by 17.63%.

4.4 The President went on further to reflect on the reduction on the interest rate on mortgages which gave members the opportunity of adjusting their monthly payments while meeting their mortgage obligation.

4.5 He pointed out that 2015 saw the implementation of the second phase of the much awaited debit card which would benefit members in the not too distant future.

MINUTES OF THE 32ND ANNUAL GENERAL MEETING

Held at the Mac Donald’s College Secondary School on the 31st March, 2016



4.6 In looking forward, the President urged members to claim ownership of the credit union since it is a local and trusted organization, which continues to make a significant difference in the lives of its members and the development of the nation.

4.7 The President assured members that the G.U. T. Co-operative Credit Union is focused on its members. He linked this to the theme, “ Member Focused: Service Minded” and reminded members that the credit union is all about ensuring that their financial needs are met, and sound financial advice is given to all. Further to this, he touched on the expansion and modernization of the Grenville and St. Mark’s offices, and the relocation of the Carriacou sub-office providing more space and services to the members there.

4.8 The President then took the opportunity to thank the members of the Board of Directors, Credit Committee and the Supervisory and Compliance Committee, staff and the general membership for their support during the time he served as President.

5.0 ADDRESS: GRENADA CO-OPERATIVE LEAGUE

5.1 Mrs. Joslyn Augustus La Touche, President of the Grenada Co-operative League Limited extended greetings from the Grenada Co-operative League Limited to the members of the GUT Co-operative Credit Union. She stated that she was honoured to address the gathering and to bring greetings from the Grenada Co-operative League.

5.2 She congratulated the credit union on the hosting of the 32nd Annual General Meeting and commended the credit union on the choice of the theme: “Member Focused: Service Minded” which she said coincided with the mission statement of the credit union, to provide the best possible service to members.

She applauded the management for the high level of financial performance. She cited the growth in institutional capital, the increase in savings and the growth in total assets as a reflection of the public’s confidence in the institution. Kudos was

also given to the management of the credit union in controlling the delinquency rate and keeping it below the benchmark of 5%.

5.3 Finally, mention was made of the effort to educate young minds through the Financial Literacy Quiz for Secondary Schools and the Smart Savers Financial Seminar. She congratulated the credit union on a number of initiatives undertaken during 2015 which included:

i.) Financial support given to charities and not for profit organizations.

ii.) Launch of the Junior Financial Co-operatives

iii.) Commitment to the development of local culture through the Pass the Torch Calypso workshop for young people.

5.4 Mrs. Joslyn Augustus La Touche ended by applauding the credit union for its continued support to the Co-operative League and expressed her gratitude to the members of the G.U.T. Co-operative Credit Union who are on the Board of the League, for their support and service to the League.

6.0 REMARKS: GARFIN

6.1 Mr. Alister Phillip addressed the AGM on behalf of GARFIN. He brought greetings and best wishes from the management and staff of GARFIN on hosting its 32nd AGM.

6.2 He went on to commend the credit union as being the first to host its AGM for 2015 within the stipulated three month time frame, and the improved financial successes in 2015. He urged the credit union to strive for more improvements in 2016. He emphasized that the credit union needs to continue to play a pivotal role in meeting members’ financial needs and implored the management to hold steadfastly as the credit union try to meet all performance benchmarks.

6.3 He further stated that the environment in which the credit union operates in constantly changing and regulatory changes are necessary from time to time as the financial environment evolves.



He added that the credit union movement remained robust and has proven to be quite resilient despite the numerous challenges which have caused much disruption to the economic sector, referencing the fact that the credit union movement total assets exceed $590 million, total loans $430.5 million and deposits of $506.8 million. Mr. Phillip stated that in an attempt to ensure that the affiliates of the credit union movements have full understanding of the new ratios set for institutional capital, GARFIN has held four meetings with the movement and two with the G.U.T. Co-operative Credit Union.

6.4 In closing, he expressed that he looked forward to the continued good relationship between GARFIN and the G.U.T. Co-operative Credit Union.

7.0 VOTE OF THANKS

7.1 Mr. David Thomas expressed appreciation to all who made contributions to the formal opening.

Gratitude was expressed to Mr. Alister Phillip, for highlighting the achievements of the credit union thus far; underscoring the importance of adhering to regulations; urging the credit union to keep meeting the benchmarks and advising on the expected challenges regarding the composition of Institutional Capital.

Thanks were also expressed to Mrs. Joslyn Augustus La Touche for her commendations and her invaluable remarks on behalf of the Grenada Co-opertaive League.

The President, Mr. Carl Andall was thanked for providing an in depth overview of the financial performance and other achievements of the G.U.T. Credit Union and giving an insight into the plans for 2016.

Gratitude was also expressed to Ms. Angela James, for invoking the presence of God and Ms. Florina Thomas for her welcome remarks and for chairing the morning’s proceedings.

7.2 One of three incentive draws was held. The winner was Ms. Pearl Augustine.

The morning’s proceeding ended at 11:15 a.m.

8.0 BUSINESS SESSION

8.1 In accordance with Section 40:1b of the Bye-Laws of the Grenada Union of Teachers Co-operative Credit Union Limited, a quorum must be ascertained before the business session could proceed. Based on the membership, the quorum should be 300 persons. Since there were 190 persons present permission was sought and granted from the Registrar of Co-operatives (GARFIN).

8.2 The meeting duly proceeded with the commencement of the Business Session at approximately 11:35 a.m.

9.0 THE AUDITORS REPORTa.) This report was read by Mrs. Decima

Blake-Thomas, Treasurer of the G.U.T. Co-operative Credit Union, since no representative of Pannell-Kerr Foster (PKF) accounting firm was present. The report gave the auditors’ responsibility in conducting the audit and highlighting the procedures that were employed which is said to be in accordance to International Accounting Standards.

9.1 THE AUDITED STATEMENTS

a.) The Statement of Financial position as at 31st December 2015 was presented by Mrs. Decima Blake-Thomas.

b.) In her presentation, she pointed out the following:

◊ The total Earning Assets ($117,797,410.00)

◊ Non Earning Assets ($7 363 973.00)

◊ Total Assets ($132,319,440.00)



◊ Members’ Equity and Liabilities ($16,647,702.00)

◊ Funds and Reserves ($4,560,089.00)

◊ Total Members’ Equity ($21,207,791.00)

◊ Total Liabilities ($111,111,649.00)

c.) In the Statement of Comprehensive Income the following were the highlights:

◊ Net interest income and other income ($5,873,349.00)

◊ General and Administrative Expenses ($4,167,475.00)

◊ Net Operating Surplus before appropriation ($1,705,874.00)

◊ Transfer to Reserve and Development Funds ($358,234.00)

◊ Net Surplus for the year ($1,347,640.00)

◊ Total Comprehensive Income ($1,421,264.00)

10.0 MINUTES OF THE 32ND ANNUAL GENERAL MEETING

10.1 A motion that the minutes of the 32nd Annual General Meeting be taken as read was moved by Mr. Antonio Rodriquez and was seconded by Ms. Althea Edwards. The motion carried.

11.0 CORRECTIONS AND OMISSIONS

11.1 The meeting requested that credit union to hold an audience with GARFIN’ was omitted from paragraph 23.1, and should be inserted as the last sentence.

12.0 CONFIRMATION OF THE MINUTES

12.1 A motion for the confirmation of the minutes was moved by Antonio Rodriquez and was seconded by Ms. Marjorie Thomas. The motion carried.

13.0 MATTERS ARISING

13.1 One member asked for an update on the partnership with EXLED. The meeting was informed that some members are taking advantage of it, but it was felt that much more should make use of the facility.

13.2 Another member questioned the outcome of the meeting with GARFIN regarding the institutional capital. The meeting was informed that it was held and it was agreed that some leverage would be given to the credit union to grant members tangible incentive on their shares but the payment would be made to their savings.

14.0 LAUNCH OF NEW PRODUCT

14.1 A presentation was given on the launch of two new products (1) Comfort Cash – a five thousand ($5000.00) loan facility with an interest rate of 12%. Any member is eligible for this product; (2) 1654 loan product – is a facility available for members with savings of more than $10,000.00. This product offers a maximum principal of $54,000.00.

15.0 INFORMATION ON EXISTING PRODUCT

15.1 Members were informed that the ceiling of the Self Loan was raised from $30,000.00 to $50,000.00.

15.2 The re-launching of the G.U.T. Co-operative Credit Union website was done by Mrs. Camille Goddard, Communications & Marketing Manager of the credit union.

15.3 The second incentive draw was held. The winner was Ms. Pamela Benjamin. She won a trip to the OECS Credit Union Summit in St. Vincent.

16.0 BOARD OF DIRECTORS REPORT

16.1 The President, Mr. Carl Andall tabled this report.

16.2 A listing was presented of the Executive, other members of the Board of Directors and heads of Ad Hoc committees.



16.3 The report further captured:

a.) A graphical presentation of the development of the G.U.T. Co-operative Credit Union from 2011-2015. The graphs showed the progression of the credit union in all important areas such as assets, equity shares, institutional capital, loans, savings and income.

b.) A listing of the activities undertaken for the students during the year to include:

◊ The Financial Literacy Quiz for Secondary Schools

◊ The Children Financial Seminar

◊ The Pass the Torch Calypso writing workshop

◊ The Launch of the Junior Financial Co-operative

◊ The TAMCC Grant

◊ The CPEA Grant

◊ Sponsorships

◊ Grants and Donations to nonprofit organizations.

c.) Staffing, Human Resource Development and courses and workshops attended by staff members.

d.) Attendances at board meetings.

e.) Plans and projections for 2016.

16.4 One member enquired whether there were any bad debts recovered during the period under review. The response was in the affirmative and approximately $8 000.00 was collected.

16.5 Another member questioned whether prizes were given to the winners of the Financial Literacy Quiz. The answer was in the affirmative. Cash prizes were awarded to the first three (3) positions and the schools represented; a challenge trophy to the winner and medal to each participant.

17.0 CREDIT COMMITTEE REPORT

17.1 This report was tabled by Mr. Kelley Calliste.

17.2 A motion that the report be taken as read was moved by Ms. Althea Edwards, and was seconded by Mrs. Joslyn Augustus La Touche. The motion carried.

17.3 The following were the main points of the report:

◊ The composition of the committee and a record of members’ attendance

◊ A review of the Credit Committee’s work during 2015 and an analysis of loans granted

◊ Observations that were made in relation to applications for loans

◊ Expression of appreciation

18.0 SUPERVISOR AND COMPLIANCE COMMITTEE REPORT

18.1 This report was tabled by Ms. Imogene Howard, chairperson of the committee.

18.2 A motion for the adoption of the Supervisory and Compliance Committee Report was moved by Mr. Abel Newton and was seconded by Ms. Marcia Noel.

18.3 This report highlighted the following:

◊ The composition of the committee and meetings attended by members.

◊ Methods of operation

◊ Schedule and scope of work undertaken

◊ A review of Financial Position, Members Share Capital, Delinquency Status, Institutional Capital, Key performance indicators, Large Loans/Investments, Internal Controls, and Board, Committee and Staff Members Accounts

◊ Education and Marketing

◊ Visits to the various offices



◊ Expression of gratitude for the support it received from the Board, Credit Committee and Management and Staff of the credit union

18.4 One member enquired about the status of the Tivoli office. The meeting was informed that the office was now closed permanently. The reasons for the closure included, the credit union has achieved its objectives of transitioning members to do business at the Grenville office and running that office was no longer profitable.

18.5 Another member commented on the lack of security at the Victoria office. The meeting was informed that improvement would be made to the existing working conditions, including space expansion. All necessary facilities and security would be upgraded.

19.0 NOMINATING COMMITTEE’S REPORT AND ELECTIONS

19.1 This report was tabled by Mrs. Elizabeth Peters, Head of that Committee. The composition of the committee was:

◊ Mrs. Elizabeth Peters - Board of Directors (Chairperson)

◊ Ms. Paula Mc Meo - G.U.T. Co-op Credit Union - Member

◊ Ms. Donna Sandy - G.U.T. Co-op Credit Union - Member

19.2 Nominations were sought from the general membership through advertisements in the weekly newspapers and on the radio stations. Ten nominations were received to serve in the following areas:

◊ Supervisory and Compliance

◊ Committee 4 nominees

◊ Board of Directors 8 nominees

◊ Credit Committee 1 nominees

◊ Any of the above 1 nominees

19.3 The following persons were recommended based on the criteria:

◊ Mr. Kenrick Mc Sween - Independent - Board of Directors

◊ Mr. Louis Williams - Independent - Board of Directors

◊ Ms. Joslyn Augustus La Touche - Independent - Board of Directors

◊ Ms. Cornice Jame - Independent - Board of Directors

◊ Ms. Margaret Beryl-Ann Clarkson - St. George - Board of Directors

◊ Ms. Irva Alexander - Credit Committee

A few questions were asked after presentation of the nominations.

One member questioned the procedure of accepting the verbal excuses that were presented on behalf of two of the nominees (Mr. Louis Williams and Mr. Kenrick Mc Sween); the member quoted the relevant procedure as set out in the Co-operative Societies Act, 2011. There were lengthy discussions on the matter; however no common conclusions could be reached. A number of persons left the meeting causing GARFIN’S representative to withdraw his permission to continue the elections and recommended that a special meeting be convened for the elections and other resolutions.

The third incentive draw was conducted. The winner was Ms. Agatha Mark, who won a trip to the OECS Summit in St. Vincent.

20.0 ADJOURNMENT

20.1 A motion for the adjournment of the meeting was moved by Ms. Elizabeth Peters and was seconded by Ms. Margaret Beryl-Ann Clarkson.

The meeting ended at 4:00 p.m.



1.0 CALL TO ORDER

1.1 The meeting was called to order at approximately 3.20 p.m. by the President, Mr. Carl Andall.

2.0 PRAYERS

2.1 Prayers were led by Mrs. Matonia Cox-Munroe.

3.0 OPENING REMARKS

3.1 The President welcomed all to this Special Meeting and he reminded members that it is a continuation of the 32nd Annual General Meeting which was held on Thursday, March 31, 2016. He further stated that the Special Meeting was convened to adopt the budget of 2016 and to conduct elections to the Board of Directors, Credit Committee and the Supervisory and Compliance Committee.

3.2 The following resolutions were presented by the President, Mr. Carl Andall for the meetings’ approval.

4.0 RESOLUTIONS:

4.1 Whereas as the Bye Laws, Article XI section 37 (2) (h) mandate that the Budget should be approved by the Annual General Meeting:

4.2 And whereas the Budget for 2016 is presented to this Special Meeting;

4.3 Be it resolved that the Budget as presented be approved by the Special meeting

4.4 Whereas the Bye Laws, Article XI section 37 (2) (m), stipulates that the Annual General Meeting must set the maximum borrowing limit for the Credit Union.

4.5 Be it resolved that the maximum borrowing limit for the Credit Union for 2016 be $3,000,000.00.

4.6 Members voted unanimously in favour of the borrowing limit.

4.7 Whereas the Accounting Firm Pannell Kerr Foster (PKF) continues to provide satisfactory service to the G.U.T. Co-operative Credit Union as its auditors;

4.8 Be it resolved that PKF be reappointed as the auditors of the G.U.T. Co-operative Credit Union for 2016.

4.9 Unanimous support was given to this resolution. The motion carried.

5.0 NOMINATIONS COMMITTEE REPORT

5.1 This report was presented by the Chairperson of the Committee.

5.2 Members present unanimously accepted the nominations as presented.

6.0 ADJOURNMENT

6.1 A motion for the adjournment of the meeting was moved by Ms. Magdalene Carmichael and was seconded by Ms. Imogene Howard. The motion carried.

The meeting ended at 3.55 p.m.

Egbert La Geer(Outgoing Secretary)

MINUTES OF THE SPECIAL MEETING Held at the Grenada National Stadium on the 20th May, 2016


INTRODUCTIONThe Board of Directors of the G.U.T. Cooperative Credit Union Limited is pleased to present to the 33rd Annual General Meeting, its report for the financial year ending December 2016.

1.0 COMPOSITION

1.1 The Board of Directors during the first quarter of the period comprised of the following members:

Mr. Carl AndallMr. Egbert La GeerMs. Decima Blake-ThomasMs. Florina ThomasMr. David ThomasMr. Miguel FortuneMs. Alma Du Bois-CallisteMs. Elizabeth PetersMr. Edison FrancisMr. Finley JeffreyMr. Henry StiellMr. Andre Martin

PresidentSecretaryTreasurerVice PresidentAssistant SecretaryAssistant TreasurerDirectorDirectorDirectorDirectorDirectorDirector

IndependentIndependentIndependentIndependentIndependentSt. AndrewSt. JohnIndependentSt. DavidIndependentCarriacouSt. Mark

1.2 The term of office expired for some members during the first quarter of the period but some were eligible for re-election.

Retired Members Replacement Region

Mr. Kwesi Roberts Mr. Carl AndallMr. David ThomasMs. Elizabeth PetersMr. Egbert La GeerMr. Henry Stiell

Ms. Margaret Beryl-Ann ClarksonMr. Louis WilliamsMr. Kenrick Mc SweenMs. Joslyn Augustus La ToucheMs. Cornice JamesMs. Mary Noel

St. GeorgeIndependentIndependentIndependentIndependentCarriacou

1.3 Composition of the new Board

The following persons were elected during the first meeting of the Board of Directors to fill the established executive positions:

Mr. Andre MartinMs. Alma Du Bois-CallisteMrs. Decima Blake-ThomasMrs. Joslyn Augustus-La ToucheMr. Edison FrancisMr. Miguel Fortune

PresidentSecretaryTreasurerVice PresidentAssistant SecretaryAssistant Treasurer

BOARD OF DIRECTORS’ REPORT



Other members of the Board include:

Ms. Florina ThomasMr. Finley JeffreyMr. Kenrick Mc SweenMr. Louis WilliamsMs. Beryl-Ann ClarksonMs. Cornice JamesMs. Mary Noel

DirectorDirectorDirectorDirectorDirectorDirectorDirector

1.4 Ad hoc Committees

The following shows the committees and their chairpersons:

Committee Chairperson

EducationStaffInvestment

Ms. Florina ThomasMrs. Joslyn Augustus La ToucheMrs. Decima Blake-Thomas

2.0 BOD MEETINGS

The Board of Directors convened thirteen (13) meetings and five (5) Joint Committee meetings.

NamesBoard

Meetings

Joint Committee

MeetingsTotal

AttendanceAndre Martin Alma Du Bois-Calliste Decima Blake-Thomas **Joslyn Augustus La ToucheEdison FrancisMiguel FortuneFlorina ThomasFinley Jeffrey**Kenrick Mc Sween**Louis Williams**Cornice James**Beryl-Ann Clarkson**Mary Noel*Carl Andall*Egbert La Geer*David Thomas*Elizabeth Peters*Henry Stiell

11/1312/1311/13

7/813/13

9/1310/1312/13

7/86/87/88/85/85/55/54/54/53/5

4/55/55/53/35/54/53/54/53/32/32/33/32/32/22/22/22/20/2

15/1817/1816/1810/1118/1813/1813/1816/1810/11

8/119/11

11/117/11

7/77/76/76/73/7

* Demitted office at the last Annual General Meeting in 2016** These persons were elected at the last AGM – March 31, 2016



3.0 FINANCIAL HIGHLIGHTS

The credit union has done exceptionally well in 2016 based on the following achievements:

◊ $51,224,761 in loans were approved.

◊ Surplus for the year is estimated to be approximately $2,587,623.

◊ The credit union has reached $152,186,670 in assets.

◊ The G.U.T. Credit Union is maintaining its position as the second largest credit union in assets on the island.

This level of success was achieved despite the continuously challenging times for our credit union and our members.

TOTAL ASSETS

EQUITY SHARES

SAVINGS

Assets grew by 15% in 2016, from $132,319, 440 in 2015 to $152,186,670 in 2016.

The loans portfolio increased by 17.41% from $98,278,061 in 2015 to $115,391,984 in 2016.

Equity Shares continues to increase and saw a growth of 8.85% in 2016, from $10,881,743 in 2015 to $11,844,318 in 2016.

Savings grew by 14.21% in 2016, from $110,132,404 in 2015 to $125, 782,387 in 2016.

2012 2013 2014 2015 2016

$152,186,670

$132,319,440$116,095,097

$101,718,771$91,098,838

2012 2013 2014 2015 2016

2012 2013 2014 2015 2016

LOANS

$125,782,387

$110,132,404

$96,842,152 $84,556,573

$77,090,777

115,391,984

$98,278,061

$83,550,178 $75,465,616

$68,992,638

$11,844,318

$10,881,743

$9,762,414 $8,688,332

$7,398,812

2012 2013 2014 2015 2016



Income increased by 15.25% over 2015 from $9,236,255 in 2015 to $10,644,981 in 2016

Expenses increased by 6.8% over 2015 from $7,530,381 in 2015 to $8,042,402 in 2016

Institutional Capital grew by 48.7% over 2015, from $5,765,959 in 2015 to $8,575,954 in 2016

Surplus increased by 82% over 2015, from $1,421,264 in 2015 to $ 2,587,623 in 2016.

INCOME & EXPENDITURE

Income Expenditure

SURPLUS

INSTITUTIONAL CAPITAL

The Board of Directors, management and staff worked assiduously with members to curb the delinquency. Delinquency remains manageable at 2% and continues to remain below the benchmark of 5%.

4.0 STRATEGIC PLAN

4.1 The strategic plan for the period 2014-2016 has expired. Under this plan the following were achieved:

a.) Offices were renovated for a more member-friendly environment

b.) Human Resource capacity was developed through training and recruitment.

c.) New loan products were created to cater to members’ needs.

d.) Loans portfolio increased by 38 %

e.) Surplus and Institutional Capital increased by 154% and 179% respectively.

f.) Increases in assets of 31%.

g.) The credit union increased its social and other media presence. The website has been revamped and re-launched. Information is now more accessible to new and existing members.

h.) Internal policies and procedures were updated.

4.2 A new strategic plan for the period 2017-2019 is being developed.

5.0 SCHOLARSHIPS AND GRANTS

5.1 The Grenada Union of Teachers Co-operative Credit Union Limited continues to make its contribution towards the education of the nation’s children.

5.2 During the period 14 scholarships were awarded to students of the T. A. Marryshow Community College, through the TAMCC Necessitous Fund administered annually. Each student was awarded $1000.00 dollars toward tuition for the period 2016-2017.

2012 2013 2014 2015 2016

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

2012 2013 2014 2015 2016

$12,000,000

$10,000,000

$8,000,000

$6,000,000

$4,000,000

$2,000,000

$0

$0

2012 2013 2014 2015 2016



5.3 134 grants were awarded to students, who were successful in the Caribbean Primary Exit Assessment (CPEA) exams, an increase of approximately 9% over the year 2015. Each student was awarded $300.00 dollars which comprised of a cheque for $250.00 dollars and a Smart Saver voucher of $50.00.

5.4 It is important to note that to date approximately 1000 students have been impacted by this venture.

6.0 DONATIONS AND CONTRIBUTIONS

6.1 Financial support was given to various charities, community groups, schools, and non profit organisations valued at $46,458.00.

7.0 ACTIVITIES

7.1 Children’s Financial Seminar

The annual Smart Savers Seminar was held from August 12th – 18th, 2016. 469 students participated in the seminar.

7.2 Junior Financial Co-operative

Throughout 2016 the Junior Financial Co-operative programme continued with the three existing participants. They are Anglican High School, St. Marks Secondary and St. Andrew Anglican Secondary. Training was conducted with students in the programme on various aspects of money management. Plans are in place to include other secondary schools in the programme. There are 193 students in the programme who have saved a combined amount of $10,090.00 dollars.

7.3 Pass the Torch Calypso Writing Workshop

This programme continues to equip students with the skills, and to tap into their talents and abilities so that they become more effective calypso writers and performers. The facilitators include some of our country’s top calypsonians and writers. A calypso showcase was held in July

at Deluxe Cinema in Grenville, where students performed their original Calypsos.

7.4 Financial Literacy Quiz

The Financial Literary Quiz was held from May 11th to the 27th. Seventeen schools participated including Westerhall Secondary and Westmorland Secondary, that participated for the first time.

Results of the quiz were as follows:1st place -St, Joseph’s Convent St. George’s2nd place -St. Joseph’s Convent St. Andrew’s3rd place -Westmorland Secondary School

8.0 NEW SERVICES AND OFFICE UPGRADE

8.1 Preparations have been made for the introduction of our ATM and card services. ATMs have been placed at Victoria office, GCNA Complex, and at the main office in St. George’s.

This has been in the pipeline for a long time and will contribute to the enhancement of our services. The ATM services will be launched in 2017.

8.2 The member service area of the main office has been redesigned to make staff and members more comfortable.

9.0 AWARDS AND RECOGNITION

9.1 International Credit Union Day was celebrated on October 20, 2016. The creativity, team spirit, and diligence of the staff and members brought victory on that special day to the credit union. G.U.T. Credit Union captured the trophy for best March Past, and participants must be commended for their hard work.

9.2 The G.U.T. Credit Union also received an award for Corporate Social Responsibility from the Grenada Chamber of Industry and Commerce.



10.0 STAFFING

10.1 The growth of the credit union has resulted in its addition of staff. The list of new staff members is shown below:

Names Position

Dextha PadmoreZannia BainSherrien FrancisYannick BrathwaitheKarla HankeyShaddie LewisKent BartholomewAkirah LicorishMarsha DouglasMonifah MorainDelon Sylvester

Member Service RepresentativeMember Service RepresentativeMember Service RepresentativeMember Service RepresentativeMember Service RepresentativeMember Service RepresentativeJunior Accounts/Member Service ClerkMarketing Field OfficerSupervisorReceptionistOffice Attendant

11.0 HUMAN RESOURCE DEVELOPMENT

11.1 During the year 2016 Board, committee members, and staff received further training through workshops and seminars

DATE HOST TOPIC ATTENDEES

January 13, 2016

February 25, 2016

March 8, 2016

March 30, 2016

April 25th – 29th, 2016

July 6, 2016

Institute of Chartered Accounts of the Eastern Caribbean (ICAEC)

EMA Solutions

Caribbean Asset Recovery Services

Grenada Industrial Development Corporation (GIDC)

Eastern Caribbean Home Mortgage Bank (ECHMB)

Grenada Co-operative League Limited

“The Legislative Requirements for completion of the Anti- Money Laundering and Combating Terrorist Financing Written Policies and Procedures Manual”.

Effective Leadership Management & Supervision

“Effective Debt Collection Techniques”.

“Digital Marketing Strategies for Building a Successful Business”.

Mortgage Underwriter Programme – Module 1, REIC 2340

“Creating Exceptional Customer Experiences Every Time”

Retesha Smith-BoydDamani Brizan

Retesha Smith-BoydDamani Brizan

Yonette Ross

Akirah Licorish

Verna KnightsReino Hurst

Yanick BrathwaiteSobrina La Rose



DATE HOST TOPIC ATTENDEES

July 12, 2016

July 13, 2016

September 14th– 18th, 2016



St. Vincent & the Grenadines Co-operative League Limited

Supervisory & Compliance Committee Orientation

Credit Committee Orientation

14th Annual OECS Summit

Natalie RuffinImogene Howard

Irva Alexander

Andre MartinMagdalene Carmichael

Imogene HowardRetesha Smith-Boyd

Camille GoddardRholda Quamina

Pamella BenjaminPearl Augustine

Agatha Mark

11.2 Ms. Sonja La Geer has successfully completed her Bachelor Degree in Management from the University of the West Indies. The Management and staff wish to congratulate her on her significant achievement.

12.0 CONDOLENCES:

12.1 The Board of Directors, committee members, management and staff, would like to offer condolences to members who would have lost their loved ones during the year 2016.

13.0 PLANS FOR 2017:◊ Development of new strategic plan.

◊ Increasing of the loan portfolio through attractive loan campaigns.

◊ Launching of the debit/ATM card.

◊ Developing strategies to further increase the institutional capital of the credit union

14.0 APPRECIATION:

14.1 Commendation goes out to the Credit Committee, Supervisory Committee, management and staff, who gave of their time to ensure the success of the credit union.

14.2 Our gratitude is also extended to our members for the opportunity given to serve, and for allowing G.U.T. Credit Union to be your financial institution of choice.

We look forward to a continued relationship with you in 2017.

Alma Du Bois–Calliste Andre MartinSecretary President



CREDIT COMMITTEE REPORT


1.0 INTRODUCTIONThe Credit Committee presents, to the 33rd Annual General Meeting of the Grenada Union of Teachers Co-operative Credit Union, this report of its activities for the year 2016.

2.0 COMPOSITIONThe Credit Committee is comprised of the following members:Chairman Kelley CallisteSecretary Magdalene Carmichael Member Irva AlexanderMember Wayne HorsfordMember Leon Radix

3.0 ATTENDANCE RECORDS

Credit Committee Joint Committee

MEMBERS Meetings Scheduled

Meetings Attended

Meetings Scheduled

Meetings Attended

Kelley CallisteMagdalene CarmichaelIrva AlexanderWayne HorsfordLeon Radix

2222222222

2017212016

55555

54533

4.0 YEAR IN REVIEW

4.1 The Credit Committee, as mandated by the Co-operative Societies Act, 2011 held twenty-two (22) monthly meetings for the year 2016. At the core of these meetings were the execution of the approved loan policy and performance of such duties as prescribed under the Co-operatives Act, Regulations and Bye-laws. The evaluation of loan applications, ratification and constant feedback to the Loans department with regards to ensuring that our credit policy remains relevant were among our main focus as a committee this last financial year; while at the same time ensuring our delinquency status remained within acceptable limits. Under the period, five hundred and twenty-two (522) loans were forwarded to the committee for deliberation. Upon evaluation, four hundred and fifty-seven (457) loans were approved.

Interviews formed part of the evaluation process; either requested by the committee or by members themselves. These were conducted in circumstances where further clarification was deemed necessary in informing the process. As at December 31st 2016, the delinquency ratio stood at 2.63 %.

The total number of loans granted during the period was three thousand two hundred and fifty-three (3253). Total value of loans disbursed amounted to $42,197,417.28.



Results of Evaluation of Loans Undertaken by the Credit Committee.

Loans Approved Loans Denied Loans Deferred Total

457 23 42 522

Loan Report

Loan Purpose Count Value Percentage

MORTGAGE/BUILDING CONSTRUCTIONDEBT CONSOLIDATIONVEHICLE PURCHASELAND PURCHASEBUILDING REPAIRS/RENOVATIONS CONSUMER/PERSONAL EXPENSESBUSINESS ENTERPRISESTRAVEL/VACATIONEDUCATION -LONG TERM STUDIES REFINANCING LOANSCHRISTMAS LOANHOUSEHOLD FURNITURE/APPLIANCEREFINANCE LOAN BALANCEVEHICLE EXPENSES, LICENSE INSURANCEMEDICAL BILLSVEHICLE REPAIRSEDUCATION-BACK TO SCHOOLLEGAL & PROFESSIONAL FEESCOMFORT CASHHOUSE INSURANCEWEDDING EXPENSESFUNERAL EXPENSESLIVESTOCK AND FARMINGREADY MONEYSELF-LOAN (Education)UTILITY BILLSCOMPUTERAGRICULTURE ENTERPRISESFINANCIAL INSTITUTIONSPERSONAL EFFECTSPROFESSIONAL & OTHER SERVICE

101267190

41248729152229141

14155147

1498

154113175

34832620272113

93511

3111

3,253

11,906,572.567,068,672.446,275,407.432,989,036.992,213,501.072,103,094.181,572,032.091,116,962.35

929,794.42847,306.40842,946.70620,923.55559,298.94492,876.10478,862.32429,987.35383,313.00309,110.87289,856.18167,596.69118,900.00116,980.00119,724.20

81,363.9057,405.4444,617.1121,600.0014,400.0014,600.00

5,000.005,675.00

42,197,417.28

28.2216.7514.87

7.085.254.983.732.65

2.22.01

21.471.331.171.131.020.910.730.69

0.40.280.280.280.190.140.110.050.030.030.010.01



Loans Granted

2016 2015Percentage

change

Loan ValueNumber of loans

$42,197,417.283,253

$37,051,990.532,913

+13.89%+11.67%

Loans Granted by Gender

LOANS BY GENDER COUNT TOTAL VALUE ($)PERCENTAGE

VALUE (%)

MALEFEMALEUNDEFINED

TOTAL

1,3501,896

07

3,253

18,143,545.4923,938,514.09

115,357.70

42,197,417.28

43.0056.73

0.27

100%

LOANS GRANTED BY AGE

LOANS BY AGE COUNT TOTAL VALUE ($) PERCENTAGE

1 - 18 Years 19 - 25 Years 26 - 30 Years 31 - 35 Years 36 - 40 Years 41 - 45 Years 46 - 50 Years 51 - 60 Years 61 - 70 Years 71 and Over

Total

7193534570390453416537131

22

3,253

101,357.701,828,148.677,122,179.038,509,013.095,524,398.256,249,131.116,349,396.815,038,300.931,406,191.69

69,300.00

42,197,417.28

0.244.33

16.8820.1613.0914.8115.0511.94

3.330.16

100%

LOANS BY GENDER

FEMALE 56.73% MALE 43.00%

UNDEFINED 0.27%


LOANS BY AGE

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

01-18 19-25 26-30 31-35 36-40 41-45 51-60 61-70 71 + 46-50

9,000,000


5.4 Through the tireless effort of the management and staff, the credit union was not only able to meet the loans target but surpass it. The Credit Committee takes this opportunity to commend all staff for their hard work and commitment.

6.0 APPRECIATIONThe Credit Committee takes this opportunity to extend a special gratitude to the Board of Directors, Supervisory Committee, management and staff, for their invaluable assistance and continued support throughout 2016. Having endured through another successful financial year is no easy feat; an accomplishment we should all be proud off. Your committee was only too grateful to serve you throughout and anticipates your continuous support as we strive to safeguard the financial assets of our credit union.

_________________Kelley N. CallisteChairman

5.0 OBSERVATIONS

5.1 The number of loans has increased over the previous year; moving from two thousand, nine hundred and thirteen (2913) in 2015 to three thousand two hundred and fifty-three (3253) in 2016; reflecting an increase of 11.76%. We were delighted to see a rebound in the number of loans after experiencing a contraction of ninety-one (91) loans in 2015. This being the third year of the structural adjustment programme; it is indeed testimony of the resolve of our long- standing members and those who found ‘home’ with us over the last financial year. Furthermore, the loan value reflected another sound performance in growth for the third consecutive year. The value of loans disbursed increased by 13.89% from $37,051,990.53 in 2015 to $42,197,417.28 in 2016. This financial institution has indeed secured its place among the financial pillars of the country.

5.2 The increase in the total loan value granted was driven by mortgage/building construction; vehicle loans and debt consolidation. The reduced and competitive mortgage rate of 6.5% continues to be the nucleus driving this portfolio.

5.3 Noteworthy is the Christmas loan which was repackaged in 2016. Through its rebranding, it was able to realize a growth of 540.42% moving from $131,625.00 in 2015 to $842,946.70 in 2016. This loan brought some measure of relief to our members for the Christmas season.



In accordance with the Cooperatives Societies Act, 2011 Section 66 (1) and in furtherance of the Grenada Union of Teachers Cooperative Credit Union (GUTCCU) Bye-Law Section 75 (b), the Supervisory and Compliance Committee is pleased to present its Report for the year ending December 31, 2016 at this the 33rd Annual General Meeting of the GUTCCU. The report covers the period, January to December 2016 and provides an assessment and reflection of the work, activities, observations and actions completed during the year under review.

The broad objective was to carry out appropriate examinations for the purpose of ensuring adherence to the regulations and compliance with Generally Accepted Accounting Principles, so as to express an opinion on the affairs and administration of the Credit Union for the above mentioned period.

Composition of the CommitteeSubsequent to the 32nd Annual General Meeting, the Supervisory and Compliance Committee was constituted on April 8, 2016. The composition of the committee remained unchanged in 2016. Mr. Randy Boyke Cadet was elected to serve as Chairman and Ms. Natalie Ruffin was re-elected as Secretary.

Your esteemed committee comprises of the following members and particulars of attendances are captured in the table below:

Mr. Randy Boyke-Cadet - ChairmanMs. Natalie Ruffin - SecretaryMs. Imogene Howard - MemberMr. Jenner James - MemberMs. Sobrina La Rose - Member

Meetings and AttendanceThe Supervisory and Compliance Committee held eleven (11) meetings and attended meetings of the Joint Committee. Set out below is a record of attendance:

Members Portfolio

Regular Meetings Joint Committee MeetingsNo. Of Meetings

Times Attended

No. Of Meetings

Times Attended

Randy Boyke CadetNatalie RuffinImogene HowardSobrina La RoseJenner James

ChairmanSecretaryMemberMemberMember

1212121212

1211121112

55555

54555

Method of OperationYour committee is charged with the responsibility of ensuring that the Credit Union remains prudently managed and members’ assets are safeguarded. This responsibility includes, but is not limited to the following: ensuring that there is compliance with the Co-operative Societies Act, the Credit Union Bye–Laws, examination of the books of the Credit Union, confirmation of cash instruments, property and securities, appraise the policies and operating procedures of the credit Union, making necessary suggestions and recommendations for improvements. Moreover, our work ensured that the integrity, soundness of management, effective use of resources, financial stability, sound internal control, better service delivery and other functions and core values were adequately maintained.

To this end, the Supervisory and Compliance Committee did the following during the period:

1. Reviewed Minutes and Reports of the Board of Directors, Credit Committee, and other standing committees

2. Assessed the operations of the Credit Union

3. Verified and reviewed monthly financial statements and financial reports

SUPERVISORY AND COMPLIANCE REPORT



4. Reviewed Auditors statements and report of accounts

5. Reviewed the accounts, particularly Staff, Directors and Committee members to ensure proper servicing and no impairment in the security offered

6. Conducted branch visits to review cash control and to observe the efficiencies in the Credit Union's operations – Carriacou, Grand Anse, St. George, Victoria

7. Examined random monthly samples of new loan applications and existing loans on the delinquency listing

8. Reviewed legal and regulatory procedures and documents governing the Credit Union

9. Reviewed employee files including the management and the comprehensive payroll register

10. Perused the membership listings

11. Assessed human resource needs

12. Reviewed the credit/loans policy, fixed deposits listings, vouchers, utility bills and investment portfolio

13. Reviewed general membership holdings, deposits, and loans

14. Monitored the performance of the institutional capital

15. Verified Assets Register Management and Assets Protection

16. Reviewed Declaration of Fund Files

The results of our reviews were communicated to the Board of Directors periodically and Joint Committee via quarterly reports.

To improve the general performance in the operations and to mobilize members’ involvement in the organization, the Supervisory and Compliance Committee offered some recommendations, which included but not limited to the following:

1. Develop a strategy to market and manage the Horizon Plaza to increase tenancy and revenue yield

2. Develop and promote new products and services for members through direct targeting to increase loan portfolio

3. Display the organisation’s Vision statement, Mission statement and Core principles at all branches

4. Invest in attractive and lucrative long term investment opportunities

5. Stimulate interest amongst members to increase level of participation in Credit Union activities especially at the Annual General Meeting and Credit Union Day Celebrations

6. Provide increase training opportunities for staff and committee members to develop competencies

7. Conduct appropriate and well thought out analyses in determining the price or rates of products and services to be offered

8. Conduct Member Service surveys periodically

Financial PositionYour committee thoroughly reviewed the monthly balance sheet of the Credit Union, and other related statements of income and expenditure submitted during the period under review for consistency, stability and made inquiries where necessary. The committee noted that the Board has continued to prepare and present the accounts of the Credit Union in accordance with International Financial Reporting Standards and that the Credit Union continues to grow and remain financially viable. All the key indicators are trending in a positive direction.

The significant movements during the past five years are shown on next page:



2012%

2013%

2014%

2015%

2016%

Total AssetsMembers LoansMembers Equity sharesAccumulated SurplusMembers Deposits

11.813.4

100.2223.9

9.4

11.79.4

17.451.012.6

14.110.712.446.614.5

14.017.611.566.513.7

15.217.4

8.882.014.2

Delinquency In this challenging economic environment, the committee is pleased to report that the delinquency rate was examined on a monthly basis to ensure that it remained within acceptable limits and in accordance with the benchmarks set out by the PEARLS reporting requirement. Although there were some delinquent loans that were outstanding for a very long time, we were indeed satisfied that steps were already taken to implement actions in mitigating such delinquency risks. The Supervisory and Compliance Committee will continue to remain resolute in monitoring this indicator and commends the Board, Credit Committee, Management and staff for the improvements made in this area.

The Internal Control StructureThe members of the Supervisory and Compliance Committee were tasked with the responsibility of making sure sufficient, effective internal control systems were in place and ultimately enforced. Our periodic examinations of the internal control environment indicated that the overall system of internal controls were effective and at an acceptable level. In most cases there were adherence to documented policies and procedures. Board, Committee and Staff Members Accounts The accounts of these individuals were examined in order to ascertain the leadership and management’s confidence and the scope of business conducted by the relevant key members in the organisation. The table demonstrates an overview and provides an insight of committee members and management involvement in the credit union.

PersonnelNo. Of

Persons Shares $ Savings $ Loans $Board of DirectorsCredit CommitteeSupervisory CommitteeStaffTotal

1355

4669

44,292.3117,974.1719,325.57

102,376.83183,968.88

471,766.65342,461.57146,665.89719,132.80

1,680,026.91

797,288.15457,949.67248,795.42

2,808,103.564,312,136.80

Children Financial Seminar



Branch Visits In keeping with its mandate to oversee the efficient and effective functioning of the credit union on its members’ behalf, the Supervisory and Compliance Committee made site visits to the sub-offices in Carriacou, Grand Anse, St. George, and Victoria during the year. The objective of these visits was to examine the business operations at each office. During each visit, interviews were conducted with employees and members who were present at the time; cash counts were completed and operational procedures were reviewed.

The committee is pleased to report that our credit union continues to be staffed with a well-motivated and proficient team of professionals. Again, the committee will like to highlight as a noteworthy point, the number of young men and women who are serving in the capacity as tellers in our various branches. Members using the services of the credit union have largely indicated their satisfaction with the services offered at the sub-offices, though in some instances suggestions were made for additional services. For example, the provision of ATM services, extended opening hours in peak times, and the installation of water fountains.

The committee is satisfied that the practice of decentralizing operations remained a focus for the GUTCCU and that the operations at the various branches were done in accordance with industry standards.

To this end, the committee wishes to commend the Board and Management for their commitments in investing towards the upgrading of the physical facilities at the branches particularly at Carriacou, St. George and Victoria. This initiative has certainly resulted in a more comfortable business environment for staff and members and the reactions thus far have been supportive and positive.

The committee strongly encourages the Board, staff and members to remain committed to our philosophies and core values that make us uniquely different from the others.

The Credit CommitteeThe Credit Committee continues to work tirelessly with the Loans Department, to ensure that the Credit Union is making the best use of members’ deposits by lending to other members. This is done after careful consideration of the members ability to repay, security offered, repayment history, savings/ and purpose

of the lending. The Credit Committee reviewed the quality of various loan applications and appeals where applicable in making their determinations. The Credit Committee ensured that the lending policy and the procedures in the lending process were followed. Regular comprehensive reports were presented to the Board on the performance of loans which are considered the “life blood of the credit union”. The Credit Committee, through its chairman, also provided recommendations necessary for improve performance.

ManagementThe Supervisory and Compliance Committee is gratified that satisfactory progress has been made in the governance of the credit union. The Board has followed in most cases, prudent philosophies in making decisions about the credit union. Many initiatives were undertaken that provided positive reviews for the GUTCCU. The Board of Directors and Management commitment remained extremely high. A Strategic Plan for the period 2017 -2019 has been commissioned. This plan outlines how the GUTCCU will continue to effectively operate and remain relevant in this ever changing, competitive financial environment. Moreover, the committee will like to congratulate the Board and management for their various deliberations that led to the GUTCCU capturing the 2016 GCIC Corporate Social Responsibility Award.

Human ResourceMembers of staff and committees were afforded opportunities to attend training sessions, and workshops during the course of the year. Training was conducted on the Anti-money Laundering and Counter Terrorism Financing policy in keeping with the policies of the regulators. Under the Money Laundering and Terrorist Financing Act 2010 and 2013 the GUTCCU like all other financial institutions, is obliged to appoint an Anti-Money Laundering Officer. As such, the Board has complied with this requirement. The Credit Union is also required to implement procedures for the identification and reporting of any suspected cases of money laundering. Staff training in their duties and responsibilities regarding Anti–Money Laundering and Reporting procedures is continuous.

The Supervisory and Compliance Committee commends the credit union on the development of its Human Resource Policy. It is a comprehensive policy that is employee-centred. Moreover, we are satisfied with



the new employees hired to serve the institution. We want to join with members to welcome them to the organization and to suggest that the staff continue to take full advantage of educational and professional training opportunities available to them. This we believe will not only ensure that they remain competitive in the job market but also be in a position to contribute to increasing the prosperity of the GUTCCU.

ConclusionThe Supervisory and Compliance Committee wishes to express appreciation for the invaluable assistance, guidance and commitment of the Board of Directors, the Credit Committee, Manager, Deputy Manager, other managers, supervisors and staff, Grenada Cooperative League and GARFIN in making it possible for this Committee to accomplish its task during the period under review.

As chairperson of the Supervisory and Compliance Committee, I have been privileged to work with a dedicated team and would like to take this opportunity to extend gratitude for their time and the wisdom that they have provided.

To you the members we express our profound indebtedness for the confidence that you have placed in our abilities; to supervise, and encourage transparency, accountability and compliance, in an atmosphere where honesty and integrity, commitment, and the provision of first class service to our members, remain part of our core values. We encourage you therefore, to enhance the productivity of our Credit Union by participating in our activities, saving continuously and taking full advantage of the products and services being offered. Remember “save regularly, borrow wisely, and pay back promptly!”

Your esteemed committee will continue to play its fundamental role in the overall corporate governance process. We will remain diligent, fair, assertive, observant, and meticulous as we endeavour to continue to work with the Board, Management and all stakeholders. Additionally, we will steadfastly persist in our approach as we ensure that decisions made translate to value for money and ultimately, the development of our Credit Union as we strive to be the Credit Union of choice in the tri – island state of Grenada, Carriacou and Petite Martinique.

..........................................Randy Boyke CadetChairman



DESCRIPTION BUDGET 2016 ACTUAL 2016 BUDGET 2017

INCOME

LOAN INTEREST 9,602,897 9,453,873 10,842,833

OTHER INCOME 76,000 141,481 148,000

GTSS INCOME 288,000 271,087 288,000

HORIZON PLAZA INCOME 132,000 108,209 120,000

FEES ON LOAN 5 60,000 31,805 45,000

BILL OF SALE 40,000 45,397 50,000

LEAGUE DEPOSIT INTEREST 44,590 39,122 44,745

INTEREST ON INVESTMENT 116,039 436,269 63,100

FIXED DEPOSIT INTEREST 121,827 117,738 128,800

OTHER COMPREHENSIVE INCOME - 250,000

ATM REVENUE

TOTAL 10,481,352 10,644,981 11,980,479

EXPENDITURE

PERSONNEL 2,028,321 2,288,808 2,774,359

INTEREST PAYMENTS 3,772,111 3,487,892 4,123,480

MARKETING 510,000 407,694 555,600

GOVERNANCE 726,400 648,502 1,090,250

ADMINISTRATION 1,278,334 1,209,485 1,412,274

SUB TOTAL 8,315,166 8,042,381 9,955,963

SHORTFALL/SURPLUS 2,166,187 2,602,600 2,024,517

TRANSFER TO RESERVE/DEVELOPMENT FUND 454,899 676,676 526,374

TOTAL COMPREHENSIVE INCOME 1,711,288 1,925,924 1,498,142

OTHER COMPREHENSIVE INCOME 661,700

TOTAL COMPREHENSIVE INCOME 1,711,288 2,587,624 1,498,142

TOTAL 10,481,352 11,306,681 11,980,479 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.

BUDGET 2017



AREA REQUIRED

RATIO RATIO

December

Protection 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% 75.83%

Savings Deposit/Total Assets 70%-80% 82.65%

Institutional Capital/ Total Assets Min 7% 5.63%

Liquid Investment/Total Assets Max 20% 4.66%

Financial Investment/ Total Assets Max 10% 5.88%

Asset Quality Total Delinquent Loan/ Loan Balance Max 5% 2.63%

Non Earning Assets/Total Assets Max 5% 6.84%

Rates of Return Total Operating Expenses / Average Total Assets Max 5% 5.29%

Total Financial Investment Income/ Average Fin Inv Market rate 6.63%

LiquidityLiquidity Reserves / Savings Deposit Min 10% 12.54%

Non Earning Liquid Assets/ Total Assets Max 1% 6.13%

Signs of Growth Growth in Loans Min 10% 17.25%

Growth in Savings Min 10% 14.10%

Growth in Members Shares Min 10% 8.81%

Growth in Total Assets Min 10% 14.98%

PEARLS RATIO


AUDITED FINANCIAL STATEMENTS

2 0 1 6


Independent Auditors’ Report 38

Statement of Financial Position 40

Statement of Comprehensive Income 41

Statement of Changes in Members’ Equity 42

Statement of Cash Flows 43

Notes to the Financial Statements 44

General & Administrative Expenses 63

TABLE OF CONTENTS


FINANCIAL

STATEMENTS


Opinion We have audited the financial statements of Grenada Union of Teachers Co-operative Credit Union Limited, which comprise the statement of financial position at December 31, 2016, and the statement of comprehensive income, statement of changes in 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 31st, 2016 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for OpinionWe 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.

Responsibilities of Management and Those Charged with Governance for the Financial StatementsManagement 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.

Auditors’ Responsibilities for the Audit of the Financial StatementsOur 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 auditors’ 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.

INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF

Grenada Union of Teachers Co-operative Credit Union Limited

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.

GRENADAMarch 1st, 2017 Accountants & Business Advisers

INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF

Grenada Union of Teachers Co-operative Credit Union Limited (continued)


FINANCIAL

STATEMENTS


Notes 2016 2015

ASSETSEarnings Assets

Investment propertiesMembers’ loansLoans and receivables financial assetsAvailable-for-sale financial assets

Total earnings assetsNon-Earning Assets

Property, plant and equipmentOther Assets

Accounts receivableInventoryCash and cash equivalents

TOTAL ASSETSMEMBERS’ EQUITY AND LIABILITIESInstitutional Capital

Members’ equity sharesStatutory reserveAccumulated surplus

Other Funds and ReservesDevelopment fundRevaluation reserveDisaster ReservesOther reserve

TOTAL MEMBERS’ EQUITYCurrent Liabilities

Members’ depositsNon-interest bearing liabilities

TOTAL LIABILITIES

TOTAL MEMBERS’ EQUITY AND LIABILITIES

4566

7

8

9

1011

1213

14

1516

10,546,100115,391,984

7,081,3561,868,384

134,887,824

7,970,429

1,336,19610,991

7,981,2309,328,417

$152,186,670

11,844,3182,667,5545,908,400

20,420,272

29,0223,838,149

113,534588,351

4,569,056

24,989,328

125,782,3871,414,955

127,197,342

$152,186,670

9,884,40098,278,061

7,809,9151,825,034

117,797,410

7,363,973

1,885,10821,255

5,251,6947,158,057

$132,319,440

10,881,7432,007,9253,758,034

16,647,702

20,0553,838,149

113,534588,351

4,560,089

21,207,791

110,132,404979,245

111,111,649

$132,319,440

The notes on pages 44 to 62 form an integral part of these financial statements

: Director : Director

STATEMENT OF FINANCIAL POSITIONAt 31st December, 2016

FINANCIAL

STATEMENTS



Notes 2016 2015

INCOMELoan interestInterest on league depositsInterest on bank deposits

Deduct: Interest payments to members’

Net interest incomeOther income

Deduct: General and Administrative Expenses (Schedule A)

Net operating surplus before appropriation

Deduct: Transfer to reserve fund Transfer to development fund

Net surplus for the year

Other comprehensive income:- Gain on revaluation of investment property- Revaluation of available-for-sale financial assets

Total comprehensive income for the year

18

9,453,87339,122

117,738

9,610,7333,398,808

6,211,9251,034,248

7,246,1734,643,594

2,602,599

650,650 26,026

1,925,923

661,700 -

661,700

$2,587,623

8,571,87660,761

190,768

8,823,4053,362,906

5,460,499412,850

5,873,3494,167,475

1,705,874

341,17517,059

1,347,640

100,000(26,376)

73,624

$1,421,264


STATEMENT OF COMPREHENSIVE INCOMEFor the year ended 31st December, 2016


FINANCIAL

STATEMENTS


Members’Equity Shares

StatutoryReserve

Accumulated Surplus

Other Fundand Reserves Total

Balance at 1st January, 2015

Net movement in shares

Entrance fees

Total comprehensive income for the year:

Net profit for the year

Other comprehensive gain for the year

Transfer from operations

Transfer to reserve fund

Payment of fund to league

Over provision of development fund

Balance at 31st December, 2015

Net movement in shares

Entrance fees

Total comprehensive income for the year:

Net profit for the year

Other comprehensive gain for the year

Transfer from operations

Transfer to reserve fund

Payment of fund to league

Provision for gratuity


9,762,414

1,119,329

-

-

-

-

-

-

10,881,743

962,575

-

-

-

-

-

-

-

$11,844,318

1,664,611

-

2,139

-

-

341,175

-

-

-

2,007,925

-

8,979

-

-

650,650

-

-

-

$2,667,554

2,257,597

-

-

1,705,874

100,000

-

(358,234)

-

52,797

3,758,034

-

-

2,602,599

661,700

-

(676,676)

-

(437,257)

$5,908,400

4,635,402

-

-

-

(26,376)

17,059

-

(13,199)

(52,797)

4,560,089

-

-

-

-

26,026

-

(17,059)

-

$4,569,056

18,320,024

1,119,329

2,139

1,705,874

73,624

358,234

(358,234)

(13,199)

-

21,207,791

962,575

8,979

2,602,599

661,700

676,676

(676,676)

(17,059)

(437,257)

$24,989,328


STATEMENT OF CHANGES IN MEMBERS’ EQUITYFor the year ended 31st December, 2016

FINANCIAL

STATEMENTS



Notes 2016 2015

OPERATING ACTIVITIES

Total comprehensive income for the year

Adjustments for:

Depreciation

Net movements in reserves and funds

Gain on revaluation of investment property

Loss on revaluation of available-for-sale financial asset

Provision for gratuity

Operating surplus before working capital changes

Decrease/(increase) in accounts receivable

Increase in non-interest bearing liabilities

Decrease in inventory

Net cash provided by operating activities

INVESTING ACTIVITIES

Net purchase of property, plant and equipment

Net decrease/(increase) in financial assets

Net cash used in investing activities

FINANCING ACTIVITIES

Increase in members’ equity shares

Increase in members’ deposits

Increase in members’ loans

Addition to investment property

Net cash used in financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents - at the beginning of year

- at the end of year 9

2,587,623

352,173

668,596

(661,700)

-

(437,257)

2,509,435

548,912

435,710

10,264

3,504,321

(958,629)

685,209

(273,420)

962,575

15,649,983

(17,113,923)

-

(501,365)

2,729,536

5,251,694

$7,984,230

1,421,264

424,435

420,798

(100,000)

26,376

-

2,192,873

(676,350)

46,324

5,684

1,568,531

(907,327)

(691,529)

(1,598,856)

1,119,329

13,290,252

(14,727,883

(1,869,200)

(2,187,502)

(2,217,827)

7,469,521

$5,251,694


STATEMENT OF CASH FLOWSFor the year ended 31st December, 2016


FINANCIAL

STATEMENTS


1. CORPORATE INFORMATION

The 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 forty-six (46) persons during the year (2015: 37).

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.

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.) There are no new standards, amendments or interpretations that are effective for the first time for the financial year beginning on or after 1st January, 2016 that would be expected to have a material impact on the Credit Union financial statement.

ii.) New standards, amendments and interpretations issued but not effective for the financial year beginning 1st January, 2016 and not early adopted. These either do not apply to the activities of the Credit Union or have no material impact on its financial statements.

Standard Description

Effective for annual periods beginning on or after

IAS 7 Statement of Cash Flows: Disclosure Initiative (amendments) 1st January, 2017

IAS 12 Income taxes recognition of Deferred Tax Assets for Unrealized Losses (amendments)

1st January 2017

IAS 40 Investment property: Transfer of Investment Property (amendments) 1st January, 2018

IFRS 2 Share-based payment: Classification and Measurement of Share-based payment transactions (amendments)

1st January, 2018

IFRS 9 Financial Instruments: Classification and measurement 1st January, 2018

IFRS 15 Revenue from Contracts with Customers 1st January, 2018

IFRS 16 Leases 1st January, 2019

NOTES TO THE FINANCIAL STATEMENTSAt 31st December, 2016

NOTES TO THE FINANCIAL STATEMENTSAt 31st December, 2016 (continued) F

INANCIAL

STATEMENTS



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 2.5Furniture, fittings and equipment 10 - 162⁄3Computer 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.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)


FINANCIAL

STATEMENTS

NOTES TO THE FINANCIAL STATEMENTSAt 31st December, 2016 (continued)


d.) 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.

e.) Financial Assets

The Credit Union classifies its financial assets into the following categories: Loans and receivables, held-to-maturity and available-for-sale. Management determines the appropriate classification of its financial assets at the time of purchase and re-evaluates this designation at every reporting date.

Loans and receivablesInvestments classified as loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted on an active market. They are included in current assets, except for maturities greater than twelve (12) months after the statement of financial position date. These are classified as non-current assets. The Credit Union’s loans and receivables comprise of treasury bills, corporate bonds and fixed deposits which are stated at cost.

Available-for-saleInvestments are classified as available-for-sale as they are intended to be held for an indefinite period. These investments may be sold in response to needs for liquidity or changes in interest rates or equity prices. These investments are carried at fair value, based on quoted market prices where available. However, where a reliable measure is not available, cost is appropriate. The majority of these investments continue to be carried at cost as in almost all cases they are not traded on an active market and methods of reasonable estimation of fair value are unavailable. Where available-for-sale investments are carried at fair value unrealized gains or losses are recognized directly in equity until the investment is derecognised or determined to be impaired at which time the cumulative gain or loss previously recorded in equity is recognized in profit or loss. Available-for-sale investments are included in non-current assets unless management intends to dispose of the investment within twelve (12) months of the statement of financial position date.

Fair ValueFair value amounts represent the approximate values at which financial instruments could be exchanged in current transactions between willing parties. However, the maturity of the Credit Union’s financial instruments lack an available trading market and therefore it is not possible to determine independently the estimated fair values. In these cases the fair values of the financial instruments are therefore considered to approximate their book value.

f.) Financial Instruments

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



INANCIAL

STATEMENTS



Financial assets and financial liabilities are recognised on the Credit Union’s statement of financial position when the Credit Union becomes a party to the contractual provisions of the instrument.

Recognition and MeasurementAll regular way purchases and sales of financial assets are recognised or derecognised on the trade date that is the date on which the Credit Union commits itself to purchase or sell an asset. A regular way purchase and sale of financial assets is a purchase or sale of an asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the market place concerned.

When financial assets are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the asset.

Financial assets are derecognised when the contractual rights to receive the cash flows expire or where the risks and rewards of ownership of the assets have been transferred.

Impairment of financial assetsThe Credit Union assesses at each statement of financial position date whether there is objective evidence that a financial asset or group of financial assets is impaired.

A financial asset or group of financial assets is impaired and impairment losses are incurred if and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that event (or events) has an impact on the estimated future cash flows of the financial asset or group or financial assets that can be reliably estimated.

Objective evidence that a financial assets or group of financial assets is impaired includes observable data that comes to the attention of the Credit Union about the following loss events:

i.) Significant financial difficulty of the issuer or obligator.

ii.) A breach of contract, such as default or delinquency in interest or principal payments.

iii.) It is becoming probable that the borrower will enter in bankruptcy or other financial reorganization.

iv.) The disappearance of an active market for that financial asset because of financial difficulties.

v.) Observable data indicating that there is a measurable decrease in the estimated cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with individual financial assets, including adverse changes in the payment status of borrowers in the Credit Union or national or economic conditions that correlate with defaults on assets in the Credit Union.


f.) Financial Instruments (continued)


FINANCIAL

STATEMENTS



The Credit Union first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant. If the Credit Union determines that no objective evidence of impairment exists for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.

Impairment losses are recorded in an allowance account and are measured and recognised as follows:

i.) Financial assets measured at amortised cost

The difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate is recognised in the statement of comprehensive income.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as improvement in the debtor’s credit rating). The previously recognised loss is reversed to the extent that the carrying amount of the financial asset does not exceed what the amortised cost would have been had the impairment not been recognised at the date that the impairment is reversed. The amount of the reversal is recognised in the statement of comprehensive income.

ii.) Financial assets measured at cost

The difference between the assets carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the current market’s rate of return for similar financial assets is recognised in the statement of income. These losses are not reversed.

Financial LiabilitiesWhen financial liabilities are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the liability. Financial liabilities are re-measured at amortised cost using the effective interest method.

Financial liabilities are derecognised 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 paid 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.


f.) Financial Instruments (continued)


INANCIAL

STATEMENTS



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.

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.



FINANCIAL

STATEMENTS



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 POLICIES

The 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.

Impairment of loansProvision is made for doubtful debts based on the specific identification of doubtful balances. As debts become uncollectible they are written off against the provision.

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.



INANCIAL

STATEMENTS



4. INVESTMENT PROPERTIES

Carrying value at 1st January, 2016

Appreciation in fair value

Carrying value December, 2016

Grenada Union of Teachers School Supplies - propertyHorizon Plaza property

2,922,4006,962,000

$9,884,400

577,60084,100

$661,700

3,500,0007,046,100

$10,546,100

On the 24th January, 2017 Credit Union’s Investment properties were revalued by ML Property Services independent valuators, on an open market basis.

5. MEMBERS’ LOANS

2016 2015

Total loansLess: Provision for doubtful debts


116,563,429(1,171,444)

$115,391,984

99,466,333(1,188,272)

$98,278,061

6. FINANCIAL ASSETS

i.) LOANS AND RECEIVABLES

Grenville Co-operative Credit Union Limited – Fixed depositClico International Life Insurance Limited

Executive Flexible premium annuityGrenada Co-operative Bank Limited – Fixed depositGrenada Public Service Co-operative Credit Union Limited

Special savings accountFixed deposit

Grenada Cooperative Credit Union League LimitedFixed depositRegular deposit

Grenada Electricity Services Limited – 10 year corporate bondsGovernment of Grenada – 365 day Treasury billGovernment of Antigua & Barbuda – 180 day Treasury billGovernment of Antigua & Barbuda – 2 year bond

Less: Provision for impairment


854,645

2,000,0001,668,814

2762,215,290

1,238,851306,956

--

546,524250,000

9,081,356

(2,000,000)

$7,081,356

827,025

2,000,0001,634,490

2762,215,290

1,202,768303,916

50,000545,200530,950

500,000

9,809,915

(2,000,000)

$7,809,915


FINANCIAL

STATEMENTS



ii.) AVAILABLE FOR SALE

2016 2015

4,500 preference shares in Anric Company Limited

8,320 ordinary shares in The Grenada Cooperative Credit Union League Limited

59,840 ordinary shares in Grenada Co-operative Bank Limited

8,916 ordinary shares in RBTT Bank Grenada Limited

4,000 ordinary shares in Republic Bank (Grenada) Limited

24,376 ordinary shares in Grenada Electricity Services Limited – market value

1,000 ordinary shares in Jonas Browne & Hubbard (Grenada) Limited

10,000 ordinary shares in Corporate Enterprise Finance Facility Limited

378,900

41,600

418,880

80,244

180,000

243,760

25,000

500,000

$1,868,384

335,550

41,600

418,880

80,244

180,000

243,760

25,000

500,000

$1,825,034

6. FINANCIAL ASSETS (continued)


INANCIAL

STATEMENTS



7.

PRO

PERT

Y, P

LAN

T AN

D E

QU

IPM

ENT

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 Ja

nuar

y, 2

015

Cost

/val

uatio

nAc

cum

ulat

ed d

epre

ciat

ion

NET

BO

OK

VALU

E

For t

he y

ear e

nded

31s

t Dec

embe

r, 20

15O

peni

ng b

ook

valu

eAd

ditio

ns fo

r the

yea

rAd

just

men

t cos

tAd

just

men

ts d

epre

ciat

ion

Dep

reci

atio

n ch

arge

for t

he y

ear

NET

BO

OK

VALU

E

Bala

nce

at 1

st Ja

nuar

y, 2

016

Cost

Accu

mul

ated

dep

reci

atio

n

NET

BO

OK

VALU

E

For t

he y

ear e

nded

31s

t Dec

embe

r, 20

16O

peni

ng b

ook

valu

eAd

ditio

ns fo

r the

yea

rD

epre

ciat

ion

char

ge fo

r the

yea

r

Bala

nce

at 3

1st D

ecem

ber,

2016

Cost

Accu

mul

ated

dep

reci

atio

n

NET

BO

OK

VALU

E

6,76

0,05

4(9

69,6

93)

$5,7

90,3

61

5,79

0,36

146

3,00

0(1

09,5

86)

10,9

59(1

66,2

61)

$5,9

88,4

73

7,11

3,46

8(1

,124

,995

)

$5,9

88,4

73

5,98

8,47

322

3,90

5(1

69,4

03)

$6,0

42,9

75

7,33

7,37

3(1

,294

,398

)

$6,0

42,9

75

-

-

$

- -

217,

548

109,

586

(10,

959)

(1

23,0

00)

$ 1

93,1

75

327,

134

133,

959

$193

,175

193,

175

53,9

32(4

3,99

6)

$203

,111

381,

066

(177

,955

)

$203

,111

678,

255

-

$678

,255

678,

255 - - -

-

$678

,255

678,

255

-

$678

,255

678,

255 -

-

$678

,255

678,

255

-

$678

,255

899,

922

(640

,925

)

$258

,997

258,

997

161,

022 - -

(73,

891)

$346

,128

1,06

0,94

4(7

14,8

16)

$346

,128

346,

128

354,

891

(73,

742)

$627

,277

1,41

5,83

5(7

88,5

58)

$627

,277

680,

767

(527

,299

)

$153

,468

153,

468

6575

7(4

8,92

9)48

,929

(61,

283)

$157

,942

697,

595

(539

,653

)

$157

,942

157,

942

325,

901

(65,

032)

$418

,811

1,02

3,83

6(6

04,6

85)

$418

,811

9,01

8,99

8(2

,137

,917

)

$6,8

81,0

81

6,88

1,08

190

7,32

7(4

8,92

9)48

,929

(424

,435

)

$7,3

63,9

73

9,87

7,39

6(2

,513

,423

)

$7,3

63,9

73

7,36

3,97

395

4,62

9(3

52,1

73)

$7,9

70,4

29

10,8

36,0

25(2

,865

,596

)

$7,9

70,4

29


FINANCIAL

STATEMENTS



8. ACCOUNTS RECEIVABLE

2016 2015

Sundry debtorsOther receivableGovernment of Grenada receivable


266,206362,630707,360

$1,336,196

170,215164,542

1,550,351

$1,885,108

9. CASH AND CASH EQUIVALENTS

Cash on handRepublic 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

Cash and cash equivalents in the statement of cash flow

1,868,705

32,509458,532

3,86354,906

7045,562,011

$7,981,230

1,632,973

33,7331,755,604

3,83053,312

7041,771,538

$5,251,694

10. EQUITY SHARES

These are of a nominal value of $5.00 when fully paid up. Each member is required to own sixty shares of $5.00 each, which are payable over six (6) months.

11. STATUTORY RESERVE

Balance at 1st January, 2016

Add: Entrance feesTransfer from operations


2,007,925

8,979650,650

$2,667,554

1,664,611

2,139 341,175

$2,007,925

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.


INANCIAL

STATEMENTS



12. DEVELOPMENT FUND

2016 2015

Balance at 1st January, 2016Transfer from operationsAdjustmentPayment to league


20,05526,026

-(17,059)

$29,022

68,99217,059

(52,797)(13,199)

$20,055

13. REVALUATION RESERVE

Balance at 31st December, 2016 $3,838,149 $3,838,149

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.

14. OTHER RESERVE

This amount represents increase in the fair value of available-for-sale financial assets.

15. MEMBERS’ DEPOSITS

Regular savingsTerm depositsSpecial savingsMiscellaneous savingsSolid GoldMortgage savingsSchool accountsSmart saver


67,058,74333,730,593

5,196,957356,567

16,818,1025,984

1,002,9901,753,920

$125,923,856

57,122,95730,910,805

4,066,987215,002

15,430,73614,508

969,1941,402,215

$110,132,404

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


FINANCIAL

STATEMENTS



16. NON-INTEREST BEARING LIABILITIES

2016 2015

Accrued interest – members’ savings and depositsOther liabilitiesProvision for audit


479,299918,406

17,250

$1,414,955

669,202297,543

12,500

$979,245

17. INCOME TAX

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

18. OTHER INCOME

DividendsRental incomeSundry

436,269379,296218,683

$1,034,248

108,924183,330120,596

$412,850

19. 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.

a.) Balances held by directors and key management at year-end were:Loans and advancesDeposits and shares

b.) Compensation paid to key management Salaries and other benefits

$1,993,176$1,239,748

$622,678

$1,420,050$1,073,339

$575,400

20. OPERATING LEASE COMMITMENTS

As at 31st December, 2016, the Company was committed to annual lease payments as follows:

Carriacou BranchWithin one (1) yearBetween one (1) to two (2) years

$18,000$18,000

$18,000$36,000


INANCIAL

STATEMENTS



21. 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 structureThe 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 CommitteeThe 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 CommitteeThe 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.


FINANCIAL

STATEMENTS



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

Maximum exposure

2016 2015

Cash and cash equivalentsFinancial assetsAccounts receivableMembers’ loans

7,981,2308,949,7401,336,196

115,391,984

$133,659,150

5,251,6949,634,9491,885,108

98,278,061

$115,049,812

21. FINANCIAL RISK MANAGEMENT (continued)


INANCIAL

STATEMENTS



Concentration of credit risk:

Cash and Cash

EquivalentsFinancial

AssetsAccounts

ReceivablesMembers’

Loans Total

ConstructionBusinessLandFinanceServicesEducationPersonalVehicleGovernment


---

7,981,230-----

$7,981,230

---

5,418,1482,735,068

---

796,524

$8,949,740

---

88,37334,992

-501,369

-711,462

$1,336,196

44,456,2302,753,9906,236,497

20,978,7645,302,7344,951,434

17,206,46813,505,867

-

$115,391,984

44,456,2302,753,9906,236,497

34,466,5158,078,7944,951,434

17,707,83713,505,867

1,507,986

$133,659,150

Cash and Cash

EquivalentsFinancial

AssetsAccounts

ReceivablesMembers’

Loans Total

ConstructionBusinessLandFinanceServicesEducationPersonalVehicle Government


---

5,251,694----

-

$5,251,694

---

6,099,9641,958,835

---

1,576,150

$9,634,949

-8,389

-47,915

--

278,452-

1,550,352

$1,885,108

33,445,0872,301,6945,501,651

18,008,6514,073,5624,660,779

18,881,06611,405,571 -

$98,278,061

33,445,0872,310,0835,501,651

29,408,2246,032,3974,660,779

19,159,51811,405,571 3,126,502

$115,049,812

The entity has categorised the credit risk exposure from the following non- performing financial assets.

Past due and not impaired

Superior Desirable Acceptable Substandard Total


Members’ loans $667,047 $654,573 $439,242 $488,268 $2,249,130



FINANCIAL

STATEMENTS




Superior Desirable Acceptable Substandard Total


Members’ loans $ - $659,591 $442,824 $785,062 $1,887,477

The loan categories are as follows:

Superior – These counter-parties have strong financial positions. Facilities are well secured and the businesses have a good track record.

Desirable – These counter-parties have a good financial position. Facilities are reasonably secured and the underlying businesses are performing well.

Acceptable – These counter-parties are of average risk with a fair financial position. Businesses may be new or industry may be subject to more volatility, and facilities typically have lower levels of securities.

Substandard – Non-performing and individually impaired.

Analysis of financial assets that are past due but not impaired:

Neither past due nor impaired


1-3 months 3-6 months 6-12 months Over 1year Total

2016

2015

$113,132,508

$97,107,154

$ -

$ -

$590,941

$285,852

$1,668,535

$99,993

$ -

$785,062

$115,391,984

$98,278,061

Analysis of financial assets individually impaired:

Financial Asset Provision

Net book value

2016 2015

Financial assets

Members’ loans

$2,000,000

$2,249,130

$2,000,000

$1,171,444

$ -

$1,077,686

$ -

$699,205

Write off policyThe 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.


Risk management structure


INANCIAL

STATEMENTS



Provision for loan lossesAllowance for doubtful loans are based on the requirement of The Co-operative Societies Act – (Act. No. 20 of 1996) and the PEARLS standards which recommends that delinquent loans less than three hundred and sixty five (365) days in arrears are provided for to the extent of 35% while those in excess of that period are provided for in full.

Management of liquidity riskThe 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.

◊ Holding 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, 2016 based on contractual arrangements.

On Demand Up to one year Over one year Total





125,782,387802,336

$126,584,723

110,132,404966,745

$111,099,149

-288,389

$288,389

-12,500

$12,500

-324,230

$324,230

--

$ -

125,782,387 1,414,955

$127,197,342

110,132,404979,245

$111,111,649



FINANCIAL

STATEMENTS



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 rateThe 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 riskFloating 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


FINANCIAL

STATEMENTS



GENERAL AND ADMINISTRATIVE EXPENSES

SCHEDULE A

2016 2015

Salaries and wagesNational Insurance contributionsPensionGratuityLeague duesInsuranceStationery and printingRentSubscriptions and donationsUniformsAudit and accounting feeLegal and professional feesAdvertisingAnnual General MeetingEducation and seminarsEntertainmentInterest and bank chargesTelephone, electricity and cableHonorariumHealth benefitProperty taxComputer maintenanceRepairs and maintenanceWater ratesCredit Union Day expensesOffice suppliesDepreciationOfficers allowanceTravelMiscellaneousShortageSecurityHorizon Plaza expensesGTSS expense

1,701,83764,90761,177

158,112115,000324,822

78,236218,285

46,458-

17,25059,473

283,83217,589

123,86257,47488,085

292,31530,50018,20765,65930,14199,694

8,56138,41018,465

352,17322,50095,32211,769

6,138103,134

22,43911,748

$4,643,574

1,477,04156,79055,708

-115,000312,265

88,010227,458

54,96632,38512,50024,514

303,69220,412

129,36144,000

7,426293,737

37,50816,76411,91617,163

101,6036,138

29,15713,519

424,43522,50091,788

9,116-

103,61623,644

3,343

$4,167,475

SCHEDULE OF GENERAL AND ADMINISTRATIVE EXPENSESFor the year ended 31st December, 2016



1. Approval of 2017 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 2017 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.

2. Approval for Borrowing LimitWhereas, 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 2017 be $3,000,000.

3. Whereas the Accounting Firm Parnell-Kerr Forster (PKF) continues to provide satisfactory service to the G.U.T. Co-operative Credit Union Limited as its Auditors.

Be It resolved that PKF be reappointed as the auditor of the G.U.T. Co-operative Credit Union Limited for 2017.

RESOLUTIONS



TERM OF OFFICE

Board of Directors

Year Name Term Expiration Region

2014 Decima Blake-Thomas 3 years 2017 Independent

2014 Andre Martin 3 years 2017 St. Mark

2014 Edison Francis 3 years 2017 St. David

2014 Miguel Fortune 3 years 2017 St. Andrew

2015 Alma Du Bois-Calliste 3 years 2018 St. John

2015 Florina Thomas 3 years 2018 Independent

2015 Finley Jeffrey 3 years 2018 St. Patrick

2016 Margaret Beryl-Ann Clarkson 2 years 2018 St. George

2016 Kenrick Mc Sween 3 years 2019 Independent

2016 Louis Williams 3 years 2019 Independent

2016 Joslyn Augustus La Touche 3 years 2019 Independent

2016 Cornice James 3 years 2019 Independent

2016 Mary Noel 3 years 2019 Carriacou

Supervisory Committee2014 Imogene Howard 3 years 2017

2014 Sobrina La Rose 3 years 2017

2015 Randy Boyke Cadet 3 years 2018

2015 Jenner James 3 years 2018

2015 Natalie Ruffin 3 years 2018

Credit Committee2014 Kelley Calliste 3 years 2017

2015 Magdalene Carmichael 3 years 2018

2015 Wayne Horsford 3 years 2018

2015 Leon Radix 3 years 2018

2016 Irva Alexander 3 years 2019



NOTES

Lord, make me an instrument of thy peaceWhere there is hatred, let me sow loveWhere there is injury, pardonWhere there is doubt, faithWhere there is despair, hopeWhere there is darkness, light andWhere there is sadness, joy

O Divine Master, grant that I may notSo much seek to be consoled as to consoleTo be understood as to understandTo be loved as to loveFor it is in giving that we receiveIt 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 thatWhatever we may say and do will have thyBlessing and guidance through Jesus Christ Our Lord

Amen

CREDIT UNION PRAYER)PRAYER OF ST. FRANCIS OF ASSISI(

CREDIT UNION SONG

With us there are no barriers ‘cause we are all the sameThe 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

ChorusTogether we give together we receive,Together we help each other to achieveCause 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

MEMBER BILL OF RIGHTSWhat’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

.qualify and are elected

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

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 . H igh ly pr inc ip led 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

Designed & Printed by: Innovative Marketing Services • [email protected] • (473) 409-4467

Address:

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

Telephone:

473 440 1354

Fax:473 435 6950

E-mail:

[email protected]

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