First Heritage Co-operative Credit Union - Annual Report - 2019

Table of Contents Page Vision, Mission Statements 02 Notice of Annual General Meeting and Agenda 03 - 04 Profile - First Heritage Co-operative Credit Union Limited

05 - 07

Products & Services

08 - 11

Minutes of the 7th Annual General Meeting

12 - 37

Profile of Board of Directors

40 - 43

Board of Directors’ Report

44 - 47

Management Report Treasurer’s Report

50 - 60

Financial Statements

70 - 162

Supervisory Committee Report

163 - 166

Credit Committee Report

167 - 169

Nominating Committee Report

170 - 177

Pictorial Highlights

178 - 182

Report of the Delegates on JCCUL’S AGM

183 - 189

Branch & Unit Managers

190 - 191

Parliamentary Rules

192 - 195

Register of Deaths

196 - 197

Prayer of St. Francis of Assisi

198

Notes

199

61 - 69

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NOTICE OF MEETING Notice is hereby given that the 8th Annual General Meeting of the First Heritage Co-operative Credit Union Limited will be held on Thursday, September 17, 2020 at the Jamaica Conference Centre, 14-20 Port Royal Street, Kingston, beginning at 2:00pm. Registration commences at 1:00pm and will close at 2:30pm. This will be a physical (face-to-face) meeting with the accommodation of a limited number of Members (approximately 200), due to the implementation of physical distancing measures, as we comply with the Disaster Risk Management Orders issued by the government. Members 75 years and over and those with weakened immune systems as well as those with conditions like diabetes, hypertension, cancer, asthma and other respiratory illnesses that are more susceptible to infections, should not attend the meeting. Members will be able to view the meeting live through our digital channels: @fhccreditunion (Instagram) and facebook.com/fhccreditunion (Facebook). It should be noted that persons using these media will not be counted as part of the quorum for voting or other legal matters. Members may visit our website at www.fhccu.com to view the 2019 Annual Report. For those Members attending, kindly note the following: 1. 2. 3. 4. 5. 6. 7.

Temperature checks will be administered prior to entering the venue; No Member will be admitted to the venue if he/she is displaying flu-like symptoms or has an elevated temperature; The wearing of masks will be mandatory at all times at the venue and throughout the entire meeting; Adequate time will be granted for registration to minimize congregation; All Members in attendance will be required to use the hand sanitizers prior to registration and again before entering the room; All Members will be expected to adhere to the physical distancing protocols; There will be no gathering of Members before, during and after the meeting.

For your safety and that of our Team Members, we urge our Members in attendance to observe the health and safety measures which will be in place as we undertake our Annual General Meeting.

____________________________________ Leodis Douglas Secretary, Board of Directors 3

AGENDA Ascertainment of Quorum Call to Order and Prayer Chairman’s Opening Remarks and Tributes Reading and Confirmation of the Minutes of the 7th Annual General Meeting held on Thursday, May 09, 2019. REPORTS: Board of Directors Management Treasurer and Auditor Credit Committee Supervisory Committee ELECTIONS: Nominating Committee Report Elections to: • Board of Directors • Supervisory Committee • Credit Committee Any Other Business Vote of Thanks Termination

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PROFILE

FIRST HERITAGE CO-OPERATIVE CREDIT UNION LIMITED

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irst Heritage Co-operative Credit Union Limited (FHC) was formed on August 1, 2012, from the merger of GSB Co-operative Credit Union Limited and Churches Co-operative Credit Union Limited. On March 1, 2015, the business and operations of St. Thomas Co-operative Credit Union Limited were transferred to FHC. FHC’s bond includes: a) All members of any religious bodies and affiliations in Jamaica and their families/relatives; b) All Public Sector Employees, past and present, regardless of their terms of tenure, employed to Ministries/Departments/ Agencies/Statutory Bodies/Public Corporations and their families/relatives; c) All Professionals, their families/relatives, their employees and their families/relatives; d) All members of Professional Associations affiliated to the Public Sector, their families/ relatives and the employees of these Professional Associations and their families/relatives; e) All Public Sector Consultants and their families/relatives; f) All Public Sector Contractors and their families/ relatives; g) Employees, past and present, of the Credit Union and their families/relatives; h) All Registered Co-operative Societies and members of these Societies; i) All persons of good character of the age permitted by the Co-operative Societies Act; j) All members and persons eligible to be members of the Credit Union that have merged with this Credit Union, provided that any person is being admitted to membership has attained the age of eighteen (18) years. The Credit Union has a membership base of approximately 200,000 members across a network of eleven (11) branches strategically located across the island; offering a suite of forty-four (44) products and services. Our extensive array of products and services include a variety of loans, savings, term deposits for both personal and business purposes. In addition, we have investment and pension options from our subsidiary, FHC Investments Limited (FHCIL). 5

Our products and services are specifically designed to meet the needs of members at every stage of their lives.

Micro and Small Business Financing The Micro and Small Business Loan business line reflects a renewed commitment on the part of the Credit Union to foster the growth of entrepreneurship in Jamaica as a major driver of the economy. It also reflects the decision of FHC to widen the scope of its services and diversify its product range in a structured and better controlled manner to provide more specific and targeted entrepreneurial opportunities. This will serve to increase employment, the standard of living of borrowing members and also contribute to the GDP of the country. The Micro and Small Business Unit was created in 2006. The Unit is a member of the Caribbean Micro Finance Alliance which acts as a catalyst for the development of micro finance in the Caribbean. The Unit was recognized worldwide as a finalist in the Caribbean Micro Finance Competition in 2012 for its impact in Jamaica. Currently, we have representatives located in Kingston, May Pen, Montego Bay, Mandeville, Spanish Town,Portmore and St. Thomas. Jamaicans have a rich entrepreneurial spirit and FHC is the home for financing these opportunities. FHC aims to be a one-stop financial institution with diversified products and services to meet the needs of valued members at every stage of life. The Credit Union’s commitment remains to generate continual benefits to our valued members and other stakeholders.

Subsidiary - FHC Investments Limited (FHCIL) FHC Investments Limited (FHCIL), is a limited liability company and a wholly owned subsidiary of FHC, established to provide investment opportunities for members and non-members of the Credit Union. It is located at 20 Dominica Drive, Kingston 5. The company’s products and services may also be accessed through representatives at several FHC branch locations. FHCIL offers competitive rates of return and portfolio management services to its clients by a team of industry experts with over 30 years of combined experience. FHCIL provides a suite of products and services to meet the needs of clients. These include:

Products & Services • Equities (local and foreign) • Bonds (local and foreign) • Managed Funds • Corporate Financing • Money Market Instruments 6

• Portfolio Management • Investment Advisory • Retirement Planning The Investment company has products and services for the conservative investors as well as those with a greater risk appetite, some of which are offered in both foreign and local currency. FHCIL is also the Investment Manager and Administrator of the Credit Union’s Retirement Scheme.

Retirement Scheme The Churches Co-operative Credit Union Retirement Scheme referred to as “the Scheme” was established by Churches Co-operative Credit Union Limited as a defined contribution plan with effect from June 1, 2004, by Trust Deed to provide pension benefits for members and their beneficiaries at retirement and ancillary benefits in the event of death or termination. The strategic objective of the Scheme is to ensure that more Jamaicans have a retirement plan to which they are consistently contributing, thus safeguarding their retirement.

THE CREDIT UNION MOVEMENT LOGO As a member of the Jamaica Co-operative Credit Union League Limited, the “hands, family and globe” symbol, represents credit unions worldwide. This trademark represents credit unions in any language. The theme is universal and conveys the image of all credit unions.

THE GLOBE - This represents the international network of credit unions.

THE FOUR SILHOUETTES - This represents the family of mankind working for the mutual benefit of all.

THE HANDS -This represents the self-help nature of credit unions.

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MINUTES

OF THE 7TH ANNUAL GENERAL MEETING MINUTES OF THE 7TH ANNUAL GENERAL MEETING OF FIRST HERITAGE CO-OPERATIVE CREDIT UNION LIMITED HELD ON THURSDAY, MAY 9, 2019 AT 2:00 P.M. AT THE JAMAICA CONFERENCE CENTRE 14 – 20 PORT ROYAL STREET, KINGSTON 1.

ASCERTAINMENT OF QUORUM AND CALL TO ORDER

Having ascertained that a quorum was present, the Chairman, Mr. Balvin Vanriel, called the meeting to order at 2:00 p.m. He welcomed everyone present to this the 7th Annual General Meeting (AGM) and then invited Board Secretary, Mrs. Leodis Douglas, to read the notice convening the meeting. She subsequently handed over the meeting to the Chairman. 2.

PRAYER

The Chairman then invited Revd. Naggi Sterling to invoke the blessings of the Lord on the meeting’s proceedings. The singing of the National Anthem followed. 3.

WELCOME, OPENING REMARKS, APOLOGIES AND TRIBUTES

The Chairman again welcomed all members to the 7th Annual General Meeting of the First Heritage Co-operative Credit Union Limited, formed on August 1, 2012 by the former GSB Co-operative Credit Union Limited and Churches Co-operative Credit Union Limited, and followed in March 2015, by the addition of the St. Thomas Co-operative Credit Union Limited to the family. He noted that, with the advancement in technology, the meeting is being streamed live on YouTube with access links on both Facebook and Instagram. He commended the meeting on the cooperation and support given at last year’s meeting and asked for the same patience of approximately three hours for this meeting. He made mention of the earlier start time of the meeting, for members to get out of the downtown area before dark. The Chairman also made note of the abbreviated form of the full Annual Report 12

at this year’s meeting based on the full agreement of the last meeting to reduce costs. He then pointed members to the Parliamentary Rules laid out in the 2018 Annual Report which were found on pages 194 through to 197 to be used to guide the meeting’s proceedings. The Chairman then introduced, by name and position, all Board Members and Management present on the podium: Secretary, Mrs. Leodis Douglas; Chief Executive Officer (CEO), Ms. Roxann Linton; Asst. Treasurer, Ret’d SSP Michael James; 2nd Vice Chairman, Mr. Edmund Jones and Director Cranston Ewan. He also introduced the other volunteers and members of the Management team in the room: Mrs. Althea Daley from the Credit Committee; Representatives from the Supervisory Committee, Chairperson Mrs. Camelle Ricketts-Moore, and Member Ms. Geraldine Wright. From the Management team he recognized: General Manager (GM), Finance and Treasury, Mr. Emil Williams; Assistant General Manager (AGM) Retail Sales and Services, Mrs. Saint Beverley Tomlinson; GM Credit Administration and Loan Risk, Mr. Quilston Harrison; AGM Marketing, Communications & Member Experience, Mrs. Juven Montague-Anderson; GM Human Resource Development, Mrs. Jillian Gayle; and IT Manager, Mr. Delano Walters. The Chairman also recognized Manager of the Montego Bay Branch, Mrs. Marcia Bailey and subsequently tendered apology on behalf of the 1st Vice Chairman, Mr. O’Neil W. Grant who would be late. The Chairman noted that during the year a number of Members passed away, many of whom had served the movement faithfully. He guided the meeting to pages 198 and 199 for the listing of those members. He then asked for the observance of one minute of silence for those who had passed on since the last AGM. Chairman Vanriel then invited the Secretary, Mrs. Leodis Douglas to introduce any specially invited guests and tender any apology for absence as well as to take the meeting through the Minutes of the last AGM. The Board Secretary made welcome all specially invited guests: Miss Vera Marie Lindo representing the Jamaica Co-operative Credit Union League (JCCUL); Ms. Sheryl Brown and Ms. Sophia Johnson representing the Department of

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Co-operatives and Friendly Societies; and Mr. Robert Ramsay from the JTA Co-operative Credit Union Limited. She then tendered apologies on behalf of: Mr. Robin Levy, Group CEO of JCCUL; Mrs. Karla Stephens-Hall of the Supervisory Committee; Mr. Richard Ranger and Mr. Donald Williams of the Credit Committee; Members: Ms. Eulah Gibson; Ms. Veronica Blake, Ms. Hopie Robinson, Ms. Jean June Campbell and Ms. Denise. 4.

READING & CORRECTION OF THE MINUTES OF THE 6th AGM

Minutes of the 6th AGM, located on pages 11-26 of the full report, having been previously circulated, were taken as read on a motion moved by Member Senior Bishop Major Garnett Kildare, seconded by Member, Mr. Michael Edmondson and carried. The Secretary, Mrs. Leodis Douglas, took the meeting through the corrections, which were: • Under Specially Invited Guests, Add: “Department of Co-operatives and Friendly Societies.” There being no further corrections to the Minutes, the motion for the confirmation of the Minutes was moved by Member Senior Bishop Major Garnett Kildare and seconded by Mrs. Althea Daley and carried. Secretary Douglas then handed over to the Chairman to address any matters arising from the Minutes. 5.

MATTERS ARISING FROM THE MINUTES OF THE 6th AGM

The Chairman thanked the Secretary for the presentation and asked if there were any matters arising from the Minutes for discussion or further questions from the floor. Member, Senior Bishop Major Garnett Kildare asked for a progress report on the “Come Back Home” campaign that was instituted in the Credit Union. The Chairman responded that based, on the results of the 2018 financial year, the programme performed very well. Major Kildare then queried about the Town Hall Meetings, but the Chairman reported that there were no meetings for 2018. When further questioned as to why no meetings were held, the Chairman responded that no need arose for any further meetings following those held in 2017.

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With no further matters arising from the Minutes of the AGM, the Chairman then proceeded to present a summary of the Board of Directors’ Report. The Report been circulated and taken as read on a motion moved by Member, Senior Bishop Major Garnett Kildare and seconded by Member, Mr. Michael Edmondson and carried. 6.

BOARD OF DIRECTORS’ REPORT

The Chairman highlighted that the Credit Union’s performance over the financial year ending December 31, 2018 was another remarkable one. He noted that outstanding results were achieved while serving our members and continuing the focus on the core business of the Credit Union. He brought the Members’ attention to the fact that FHC commenced the year with an accumulated deficit of $189M but was able to turn around this deficit at the end of the year to an accumulated surplus position. At that point the meeting gave a resounding applause. The Chairman continued that FHC saw significant growth in areas of both loans and savings. He noted that while policies continued to be implemented by the Bank of Jamaica (BOJ), and an inflation rate target of 4% - 6%, the year 2018 saw the unemployment rate decline from just under 1.7 to 8.7%. These rates he noted, influenced the Credit Union’s positive business performance at the end of the year. The Chairman announced to the meeting that FHC made a surplus of $241.5M, which resulted in the total clearance of the accumulated position of $189M; leaving an accumulated surplus of $44.74M at the end of the year. The meeting gave another resounding applause of congratulations to the Credit Union. The Chairman continued his report noting the following: Loan Portfolio – increased by $1.04B or 14.92% over last year to $8.04B; Deposit Portfolio – increased by $1.17B or 13.82% over last year to $9.6B; and the Credit Union remaining quite liquid at 12.85%.

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He mentioned that despite the very competitive environment in the financial sector, with the Banks targeting our members, the Credit Union enjoyed a great year. He added that numerous initiatives were put in place to satisfy the Members’ needs which resulted in growth in our deposits and loan portfolios for the period. The innovative and attractive loan products performed significantly well as our Members responded positively to the many and varied offerings. At this juncture he welcomed the COK Sodality Co-operative Credit Union team: President, Mr. Steadman Pitterson; CEO, Ambassador Aloun Ndombet-Assamba as well as the COO, Ms. Linda Miller to the AGM. The Chairman continued his report, commenting on the strategic direction of the Credit Union. The Board of Directors, the Committees and the Executive Management participated in a Strategic Planning Retreat, which looked at a plan for the Credit Union up to the year 2040. This plan, he noted, had so far achieved a number of successes. He then gave his commitment to continue to keep abreast of the dynamics of the financial landscape; to strategically position the Credit Union to ensure that market opportunities were seized; as well as to continuously improve the service delivery to the members. As it pertained to FHC’s Subsidiary, FHC Investments Limited (FHCIL), the Chairman reminded the meeting that this Credit Union was the only one that possessed a 100% owned subsidiary or investment company. He therefore advised that for any wealth advice, FHCIL was also able to fulfil that need. He informed them that despite the challenges the subsidiary experienced in 2017, closing the year with a loss of $2.89M, the year 2018 ended positively with an end of year net profit of $3.42M. The meeting gave its congratulatory applause to this positive news. The Chairman added that FHCIL will continue to widen its product offerings but noted that currently its operations included acting as a Security Dealer and a Pension Fund Manager. He invited those who wished to enter the equities market to speak with one of their representatives. He then introduced the General Manager, Mr. Patrick Burke, to the membership and encouraged all to come in or call for any advice needed.

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The Chairman informed the meeting that the Credit Union’s Approved Retirement Scheme also performed quite well for 2018. The Scheme surpassed the $1 Billion mark and currently held $1.15 Billion under management. This, he noted, was a growth of 17.3% year over year, which was way above inflation. The Scheme also added 167 new members resulting in total membership of 4,625. He added that the Return on Investment (ROI) was also way above inflation - a return of 14% which was met with a resounding applause from the meeting. The Chairman also reported that as good corporate citizens, the Credit Union had in place the FHC Foundation which continued to serve the wider community, with a focus on youth development and education. For the year 2018, a total of $1.21M was earmarked and donated to the GSAT Scholarships, Tertiary Scholarships, and Bursary Awardees. The main fund-raising event continued to be the Benefit Concert with the University Singers which, in this year will be held on June 8, 2019. He encouraged members to collect tickets at the branches and attend and support this event. The Chairman completed his report by updating Members on the continued preparation of the Credit Union to meet the requirements of the Bank of Jamaica Regulations. He noted that the Credit Union was approximately 97% compliant. On behalf of his fellow Directors of the Board, the Chairman thanked the Members for their support, commitment and loyalty to the Credit Union over the years. He acknowledged the challenges during the period, but noted that everyone worked together, with a resultant sterling performance of the Credit Union for 2018. He noted that he was looking forward to an even stronger year ahead as they all continue to keep the Members at the Centre. He extended a hearty thank you to all stakeholders: to the Auditors, to the Department of Co-operatives and Friendly Societies; to the League; and to all Members for the support given and noted an anticipated 100% support for the year ahead. Amidst a loud applause, the Chairman invited any questions or comments from the report of the Board of Directors.

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Member, Ms. Marcia Fraser expressed happiness to witness the Credit Union’s performance and commented about desiring to own her house. The Chairman encouraged her to come in and speak to one of the Member Service Representatives regarding qualification for a mortgage. Member, A.N. Harris Esq., queried on a matter which was in the Minutes, however, the Chairman noted that this comment could not be taken at this section but would be responded to at the ‘Any Other Business’ section. Member, Mr. Austin highlighted that on page 41, it noted that unemployment rate declined by just under 1.7%. He expressed an issue with the ‘under’ to which the Chairman responded that the ‘under’ would be removed. There being no further comments on the report, the motion for the acceptance of the Board of Directors’ Report was moved by Member, Mr. Carl Bingham and seconded by Member, Ms. Jean Patterson and carried. There was one abstention moved by Member, A.N. Harris Esq. The Chairman then invited the CEO, Ms. Roxann Linton, to present the Management Report. 7.

MANAGEMENT REPORT

The CEO first acknowledged all specially invited guests and thanked everyone for coming out to the 7th Annual General Meeting. She specially acknowledged the Board Chairman and all other members of the FHC Board, the Volunteers, specially invited guests from the League and its member companies, the Department of Co-operatives and Friendly Societies, CUNA Caribbean, other Credit Unions, and Auditors KPMG. She expressed her appreciation to the Members present to share in the occasion as the Management and Team Members continued to inform, engage and connect with the Membership. The CEO then asked for a motion that the Management Report be taken as circulated and read. This was moved by Member, Ms. Donna Edwards and seconded by Member, Mrs. Althea Daley. The CEO guided the meeting to pages 47 through to 55 of the Annual Report for the Management Report and invited the meeting to share in a special video highlighting the continuation of the Credit Union’s transformational

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journey during 2018. At the end of the video she noted that over the last two years the Credit Union had seen many accomplishments. She expressed gratitude to the loyal Membership; the Team Members for their unwavering support; a dedicated Board of Directors and Volunteers; and for God’s favour in the accomplishment of the Vision. Some of the highlights of the Report were as follows: • • • • • • •

The Credit Union achieved a record surplus while reaching new heights in Members’ and Team Members’ engagement; Earned $241M in surplus and erased the accumulated deficit of $189.68M; Reduced the Past Due Ratio from 10.45% to 8.42%; Accelerated the turn-around of the Credit Union resulting in the key financial indicators being in good standing; Maintained a strong capital position; Prudently managed the risks and expenses; and continued to make significant investments in leadership and talents in order to drive future growth.

The CEO further stated that the sterling performance was achieved by: • • •

Delivering on the Credit Union’s ‘Member at the Centre’ philosophy which represented how Members were engaged and how they were kept at the centre in terms of the decisions that were made. Growing the core business through strong leadership and Team Member engagement; Improving operational efficiency and a sound risk management culture.

During 2018, some of the Member engagement activities included developing and enhancing the products and services to meet the Members’ needs. There were several promotions on loans and deposit sales to which the responses were very positive. She indicated that this engagement with the Membership saw the Credit Union increasing its loan disbursement performance resulting in total disbursement of $4.76 Billion for the year and an increase in deposits of 13.82% bringing total deposits to $9.6 Billion.

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The CEO reported on the Credit Union’s involvement with the Jamaica Civil Service Association, cementing its pride of place as the Credit Union of choice for civil servants. She noted its participation in the Civil Service Week celebrations including the Inaugural 5K Run and Walk, and a donation of $350,000 towards medical supplies and bills to Sophie’s Place, a children’s home currently housing 22 physically challenged children. The CEO noted that the member engagement calendar also included the Micro & Small Business Christmas Market Place, a Carol Service and the new Fitness Revolution Party which was a health and wellness initiative held in the Credit Union’s Head Office car park. She commented that while the events were good and some members participated, they could have been better with more Member support. She therefore encouraged Members to join in on social media and to look out for emails and text messages inviting them to be a part of all Member engagement activities. CEO Linton reported on the partnership forged, through the Members’ request, with CUNA to adopt the ‘Member at the Centre’ approach in dealing with the Members. She noted that the dialogue was fruitful as members reported on the positive results where their individual cases were addressed and dealt with amicably. She reiterated the Credit Union’s commitment to continue to work with them in dealing with any difficulty that may arise. She noted that the financial performance in 2018 clearly demonstrated the strength, the energy, the commitment and expertise of the Team Members who were the reason the Credit Union continued to earn the trust of the Membership. In that regard, she once again thanked the 250 Team Members of the Credit Union for everything they achieved in 2018. The Membership, at this point, expressed their sentiments to the CEO’s comments with a rousing applause. As it pertained to human capital development, the CEO informed the meeting that during 2018, the Credit Union invested in its Team Members in order to strengthen the organization’s culture in sales and service, accountability, continuous learning and improvement. The Team Members’ welfare was also a focus area with improvements in compensation and benefits and the continuation of welfare initiatives.

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Another key success factor highlighted by the CEO was the unwavering commitment to improve the Credit Union’s community. Throughout the year, the team supported a number of social initiatives, namely the Rebirth Project which is a transformational eight-week seminar targeting teenagers 13-15 years of age, with behavioural challenges. Financial Literacy Programmes were also developed and executed as well as physical enhancements during the last Labour Day to several basic schools in parishes where the Credit Union operates. The Internship Programme was also facilitated through many partner organizations such as HEART Trust NTA, National Youth Service, the Ministry of Labour and the Citizens Security and Justice Programme. The CEO closed her report by reiterating that 2018 was a strong year for the Credit Union. She also noted the positive start for the year 2019 but hastened to add that, with the changing and competitive financial environment within which the Credit Union operated, there could be no complacency. She encouraged the entire team to become even closer to the Members and to understand and anticipate their needs, and continue to position the Credit Union as the financial institution of choice for the present generation and generations to come. She then thanked the Members for their loyalty, their continuous feedback, and for their referrals that helped to strengthen the Credit Union. She thanked the Board of Directors and Volunteers for their steadfast commitments in making the Credit Union a better place, and finally the entire FHC Team Members for their stellar contribution during 2018. Amidst the applause from the meeting, she then asked for any comments or questions from the Management Report. Member, Dr. Suzan Law expressed her concern about the health insurance policy that she had bought into and commented that to date, she is yet to be able to see and read the original health insurance policy between FHC and the Insurer. She continued that on the Chairman’s recommendation, she went to the FSC and they have indicated that they would get back to her. CEO Linton noted her comment. Member, Ms. Hannah Dixon expressed commendations to the Management Team publicly on the positives that were happening within the Credit Union. This public commendation, she noted, was done on the basis that two years ago she had also complained bitterly about her dissatisfaction with her

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experience at the Credit Union. She noted she now felt the effort being made to improve the Members’ experience to which she was very grateful. She added that the numbers were impressive and with this feeling of elation, she would be calling her friends, and young ones to come back home to FHC. The CEO then thanked Member, Ms. Hannah Dixon for continuing to do business with the Credit Union. There being no further comments, the Management Report was adopted on a motion moved by Member, Ms. Paulette Henry and seconded by Member, Ms. Marcia Fraser and carried. The Chairman thanked the CEO for her presentation. He then acknowledged the presence of Mrs. Joyce West Johnson, COO of C&WJ Co-operative Credit Union and TraceyAnn Williams, Credit Officer of C&WJ Co-operative Credit Union. He also acknowledged Mrs. Jacqueline Roberts from the FHC Supervisory Committee; Ms. Sonia McFarlane Trustee and former Director and Ms. Yvette Sibbles Brown, former Director. He then asked for a motion for the Auditor’s representative, Ms. Nadine Williams, to read the opinion rather than the four pages of the Auditor’s Report. The motion was moved by Member, Faustina Richards and seconded by Member, Senior Bishop Major Garnett Kildare and carried. 8.

AUDITOR’S REPORT

KPMG Representative, Ms. Nadine Williams took the podium and thanked the Chairman. She indicated to the meeting that she would be presenting the key highlights from the opinion presented in relation to the audit of the financial statements. She stated that the audit was conducted on both the Financial Statements of the Credit Union as well as the Consolidated Financial Statements of the Credit Union and its Subsidiary, set out on pages 71-166 which comprised the Group’s and Credit Union’s statement of financial position as at December 31, 2018. It also included the Group’s and the Credit Union’s statement of surplus or deficit and other comprehensive income, changes in equity and cash flows for the year then ended and notes, comprising significant accounting policies and other explanatory information.

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She outlined that in their opinion, the accompanying financial statements gave a true and fair view of the financial position of the Credit Union and the Group in accordance with International Financial Reporting Standards (IFRS) and the Co-operative Societies Act. She further outlined the Auditor’s opinion on additional matters that were required by the Co-operative Societies Act and noted that in their opinion, proper accounting records were maintained, and the financial statements were correct, duly vouched and in accordance with the provisions of the Co-operative Societies Act. 9.

TREASURER’S REPORT

Treasurer, Kevin Forbes thanked Ms. Williams, greeted the Members and proceeded for a motion that the Treasurer’s Report, which was presented in the report at pages 56 through to 61, be taken as circulated and read. The motion was moved by Member, Mrs. Charmaine Reid Myers and seconded by Member, Ms. Clivia Green and carried. He reminded the meeting of the abridged version of the report in their possession, and that the full document can be viewed on the internet, if anyone wished to see the full report. Mr. Forbes expressed great pleasure at the fact that, yet again, this year he is overwhelmingly pleased to report remarkable results based on his promise to deliver the continuation of last year’s performance to the Membership. He noted that the Chairman and the CEO had already expounded on the great performance and so he would just highlight some key areas. He reported that total revenue for 2018 recorded a 20% increase, which to date, was the highest in the history of the Credit Union. He continued that Total Assets stood at $12.2 Billion representing an 11.4% increase over the period. This performance, he noted, was as a result of the very hard work and sterling contribution of the Team Members at the Credit Union. He continued that the net loan portfolio increased by 14.92% or just over $1Billion year over year. The Group Asset and Investment also grew by almost $235 Million, thereby improving the overall liquidity position of the Credit Union, which remained strong.

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Members’ deposit, he noted, grew by 13% or $1.17 Billion, adding that the major contributing factor was the deposit drive programme supported strongly by the Members. He expressed appreciation to the Members for the support given and informed them that it was through their deposits, that funds were available to drive the loans. He also explained that other contributing factors to a significant performance of the Credit Union were the low unemployment rate, the stable exchange rate and the 4% to 6% inflation rate within the economy. In his report on loan provisioning, the Treasurer informed the meeting that the IFRS 9 was implemented at the beginning of 2018, which resulted in a reduction in the Net Assets by almost $304 Million. He noted, however, that despite that adjustment, the hardworking team was still able to end the year on a strong note with a massive reduction of the past due loan rate which stood at 8.42%. The Treasurer also highlighted that the Institutional Capital increased by 13.14% which, when compared to the PEARLS and the BOJ standards of 8% and 6% respectively, indicated a Credit Union with very impressive Capital Adequacy Ratios. In closing, the Treasurer reiterated the excellent performance of the Credit Union: the highest levels of loan disbursement in FHC’s history, the highest net surplus, the significant improvement in operational efficiency, and improved capital and liquidity positions. He proudly noted that the strategies implemented were indeed bearing fruits and the once accumulated deficit on the Credit Union’s books was now a thing of the past. He again thanked the Members, the dedicated Team Members and the team of Volunteers for their full support. He then opened the floor for any questions or comments to the Treasurer’s Report. Member, Mr. Sidney Wright, first commended his Branch Manager of Portmore as the ‘best Manager” and then noted he was seeking assistance from the Credit Union to purchase a truck, to continue to earn a living, although he was a retiree. The Treasurer informed him that the Micro and Small Business Loans Unit would be the ideal place for him to visit or to speak with his Branch Manager who would be willing to see how best the Credit Union could accommodate him based on his financial position.

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Member, Mr. Michael Ramsay, questioned why Line Item ‘Interest on Other Investments’ on page 62 was so drastically reduced by over $54 Million. Treasurer Forbes responded that that reduction was due to two factors: the systematic process by the BOJ of reducing the benchmark interest rate from approximately 4% to 2% during the year; and the liquidation of some of the investments to satisfy the increased demand for loans. Member, Dr. Suzan Law, expressed the sentiments shared by Member Wright and reiterated that micro-loan lending is important, especially for those retirees who were still able to contribute to society. Mr. Forbes noted her concern but went further to add the importance of retirement planning. He encouraged those young working persons to set aside up to 20% of their income into a pension plan, a facility which the Credit Union has in place currently with the expertise and the skilled personnel to navigate them through what best suits them. Member, Ms. Rosemarie Arnold, expressed happiness at the figures presented and sought clarification if dividends would be paid out based on the performance of the Credit Union. The Treasurer acknowledged her query but noted that it would be presented a little later in the meeting. Member, Mr. Floyd Ebanks, queried the Credit Union’s policy on lending to retirees since they do get a pension and therefore would be able to repay a loan. The Treasurer responded that there was no age limit to the granting of loans as long as the Member had the ability to repay, taking into consideration whatever asset(s) that would be used to secure the loan. Member, Mr. Floyd Ebanks, however continued that he was refused a loan and told he already had one in place and was one year from retirement. He added that in fact he had three years left before retirement. The Treasurer asked that a Team Member meets with him to get more details surrounding the situation to see exactly what transpired. Ms. Sheryl Brown from the Department of Co-operatives and Friendly Societies queried the present delinquency rate. The Treasurer replied that as at the end of April, the rate stood at 8.3%. The Treasurer then asked for a motion to adopt the Auditor’s and the Treasurer’s Reports. This was moved by Member, Senior Bishop Major Garnett Kildare and seconded by Member, Mr. Charles Braham and carried.

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At this point the Treasurer presented the proposal to the Members for the Distribution of Surplus as follows: 1. Pay a 4% dividend on all Permanent Shares 2. $2.5 Million in Honoraria 3. A total of $650,000 in donations through the FHC Foundation to a number of charitable organizations including: a. Best Care Foundation $50,000.00 b. Redeemer Moravian Church $50,000.00 c. Lyndhurst Methodist Church $50,000.00 d. All Saints Anglican Church $50,000.00 e. St. Paul’s United Basic School $50,000.00 f. St. Stephens United Church Clinic $50,000.00 g. St. Francis Primary School $25,000.00 h. Allman Town Primary School $25,000.00 Member, Ms. Arnold, queried how the Board decided on the allocation stipulated, considering new entities that may want to be included. The Treasurer responded that these institutions were established legacy commitments being made over the years. For new entities, he asked that the requests be channeled through the FHC Foundation. Member, Mr. Donovan Curry raised the concern of his daughter’s illness and spoke to a request being made to FHC for assistance with the surgery, however, to date, no response. The Treasurer expressed his sympathy on such an unfortunate matter but noted that the Credit Union had, on many occasions, assisted in these areas. Member, Mr. Michael Burke reiterated the issue at hand of including other entities or individuals in the distribution pool to which Member, Senior Bishop Major Garnett Kildare followed up with a query as to what exactly was the process for persons who wished to come on board with entities. The Chairman, Mr. Balvin Vanriel then took to the podium to explain that the legacy organizations had continued to receive the donations, but the funds were now being channeled through the Foundation. He added that if Members knew of organizations that needed financial support, then they should advise these organizations to write to the FHC Foundation and its Board would do their due diligence and honour those donations should they meet the criteria.

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Member, Senior Bishop Major Garnett Kildare then thanked the Chairman for the explanation of the process. The Chairman further responded to a Member’s concern that only organizations were benefitting from the Foundation by informing the meeting of a case where a Member made a special appeal for help with airfare for her child who was seriously ill and needed medical attention overseas. The Board fully approved the airfare cost to assist this Member, thereby allaying the Member’s concern of only organizations getting assistance. Member, Mr. Glendon Crooks, requested that a part of the 4% to Permanent Shares be allocated to Ordinary Shares also. The Treasurer responded that Ordinary Shares were allocated interest payments on a semi-annual basis with dividends (based on surplus) allocated to only Permanent Shares. He further added that based on Member, Ms. Jennifer Edwards’, comment of not seeing the interest but rather a deduction each month, which the monthly deduction accounted for an Account Maintenance Fee which represented a standard charge taken off the account. That charge, he noted, was one of the lowest in the industry with the Credit Union upholding its mantra of low or no fees. Member, Ms. Daphne Henry Singh, suggested that the Credit Union instituted a reminder to Members before share accounts fell into dormancy. She highlighted her recent experience of having to activate her account by going through a myriad of processes before being reinstated. The Treasurer noted the suggestion and promised to have it in place. The Chairman, at this point, approached the podium and posited some history to the Members on the Ordinary and Permanent Shares issue. He reminded Members that years ago, Ordinary Shares were treated as a part of the capital and hence, dividends would be paid on Ordinary Shares. He noted, however, that as a result of a change in accounting standards, Ordinary Shares were now treated as a liability with interest paid semi-annually, while Permanent Shares, being a part of the Credit Union’s permanent capital, received dividend payment. He also informed the meeting that while Permanent Shares had a maximum of $10,000.00, this amount could be increased by any Member who so desired,

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but emphasized that should it be increased, that amount could not be used as collateral for a loan nor could it be removed as the Member wished. The Treasurer thanked the Chairman for the explanation. Member, Ms. Audrey Smith, informed the meeting of her illness over the past five years and her inability to make deposits to her account. She then expressed the concern that soon, based on her circumstance, she would have nothing left in her account and queried if she would be charged a fee to reinstate her dormant account. The Treasurer pointed out quickly that there was no charge to reinstate a dormant account. The Treasurer then made the call for a motion to accept the resolution for the distribution as was discussed. The motion was moved by Member, Ms. Clivia Green and seconded by Member, Ms. Norma Blake and carried. 10. MAXIMUM LIABILITY ALLOWANCE Finally, the Treasurer explained to the meeting that, as was the custom, every year a maximum limit was set by the Membership representing the amount of liability the Credit Union could incur on its books without impairing its position. This amount he noted, was, over the last seven years, set at 20 times the Credit Union’s Capital. He then called for a motion to fix the Maximum Liability of the Credit Union at 20 times that of its share capital. This was moved by Member, Mrs. Althea Daley and seconded by Member, Mr. Carl Wyndham and carried. The Chairman thanked the Treasurer for presenting his report and invited Credit Committee Chair, Mrs. Althea Daley to present the Credit Committee’s Report. 11. CREDIT COMMITTEE’S REPORT On behalf of the Committee, Ms. Althea Daley welcomed all to the meeting. She then asked for a motion that the Credit Committee’s Report, be taken as circulated and read. This was moved by Member, Mr. Michael Edmondson and seconded by Member, Mr. Kimarley Henry and carried. She guided the attention of those Members viewing the report on the website to

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pages 171 to 173 and for those Members with the abridged version she asked for them to follow the report on the screen. Ms. Daley highlighted that there was a 1.9% growth in the GDP in 2018 when compared to 2017. She mentioned an increase in loan demand and an improvement in the Past Due Rate while the fierce competition continued in the marketplace. As it pertained to disbursements, the Committee Chair noted disbursements for 2018 of $4.76 Billion, resulting in a 35% increase over 2017’s figure of $3.53 Billion. The loan portfolio moved to $8.04 Billion in 2018, up from $7 Billion in 2017, recording a 14.92% increase. For micro loan disbursements, Ms. Daley reported a 62.3% increase from $185 Million in 2017 to $377 Million in 2018. The meeting responded with a rousing applause. She continued her report announcing a 2.2% reduction in the Past Due Rate from 10.62% in 2017 to 8.42% in 2018. She encouraged the Members to continue to pay their loans on time and where they may experience difficulties, to speak to their branch officers. She informed the meeting of changes in the Committee Membership during the year. Ms. Janyce Robinson and Mr. Pete Nesbitt resigned in September and December respectively, and Mr. Donald Williams joined the team in January 2019. She extended congratulations to the Team Members of the Credit Administration and Loan Risk Department as well as the Micro & Small Business Loans Unit on the hard work and tangible efforts made to reduce the Past Due Portfolio through improved collections, to increase and improve loan risk assessments, and to increase disbursements through adjustments in credit policy. She thanked the Credit Union Team Members, The Board of Directors, the Supervisory Committee and the entire Membership for making 2018 a phenomenal year for the Credit Union. She then opened the floor for comments and questions. Member, Mr. Michael Burke, enquired about the delinquency ratio in the Credit Union. Mrs. Daley responded that it was 8.42% as at December 2018.

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Member, Mr. Michael Burke, then suggested that the Credit Union develop a video or establish a task force that would be available to explain to and educate Members on the benefits of paying their loans on time to avoid delinquency, among other things. He stressed the fact that people failed to understand that being delinquent can impact the operations of the Credit Union negatively. He therefore recommended this type of education. Ms. Daley thanked Mr. Burke for the suggestion and noted that the idea was a very good one which would be passed on for review. There being no other concern or question, Ms. Daley asked for a motion to accept the Credit Committee Report. This was moved by Member, Senior Bishop Major Garnett Kildare and seconded by Member, A. N. Harris Esq. and carried. The Chairman thanked Ms. Daley and invited the Chair of the Supervisory Committee, Mrs. Camelle Ricketts-Moore to present that Committee’s Report. 12.

SUPERVISORY COMMITTEE REPORT

Mrs. Camelle Ricketts-Moore, on behalf of the Members of the Supervisory Committee, welcomed all to the AGM and expressed appreciation for the opportunity to serve the Credit Union in the current capacity. She also expressed her commendations to the Management Team, the Team Members and the Volunteers who made their contribution to the achievements of the Credit Union. She then asked for a motion that the report be taken as circulated and read. This was moved by Member, Ms. Angella Chambers, and seconded by Member, Mr. Donovan Edwards and carried. Mrs. Ricketts-Moore highlighted the Supervisory Committee’s role of assisting the Board of Directors in the discharge of their responsibilities by providing oversight on aspects of the internal control systems through the internal audit function. She noted that during the period there were eight meetings of the Committee and monthly reports were produced and presented to the Board of Directors. Additionally, joint meetings were held with the Board of Directors, other Committees and Management on a quarterly basis. She added that as the Chairman, she attended the Audit and Risk Management Committee meeting held in December.

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She reported that there were 9 audits on the 2018 Audit Plan of which 3 were completed as at December 31, another 3 reviews were in progress at that period, and the final 3 audits were deferred due to the number of special investigations executed during the period. She continued that there were 16 unplanned special investigations conducted in 2018, compared to 11 in 2017. The audits that were completed indicated the need for improvement in the development of policies, procedures and processes, and the tightening of supervisory control at the branches. Mrs. Ricketts-Moore reported that follow-up reviews were conducted periodically by the Internal Audit Department to ensure that outstanding recommendations were addressed. She noted the Management Team showed their commitment towards addressing the recommendations and strengthening the internal control systems of the Credit Union. She also expressed satisfaction that efforts were made to collect and regularise outstanding loan balances from staff, volunteers and connected parties. The Committee Chairperson thanked the Management and Team Members, with special mention of the Internal Audit Department, and the Board of Directors, for facilitating and supporting the work of the Committee over the past year. She then opened the floor for comments and questions. Member, Mr. Floyd Ebanks, requested the list of reports that were analysed over the period. Mrs. Ricketts Moore identified them as Management of the Retirement Scheme, IT Controls, Branch Operations, Loan and Security Management, Human Resource Management, Compliance with Proceeds of Crimes Act (POCA), Audit on Liquidity Management, FHC Investments Limited (FHCIL) and Third Party Relationship Management. Member, Mr. Ebanks then asked that denied loan applications be reviewed to see how they can be remedied, and approvals improved. This was noted. Member, A. N. Harris Esq. queried the level of complaints the Supervisory Committee received for the year. Mrs. Ricketts-Moore responded that none was escalated to the committee noting that they would have been dealt with through the proper channels. Member, Ms. Norma Blake, queried why the Audit of Liquidity Management was deferred. Mrs. Ricketts-Moore outlined that based on the number of special inves-

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tigations which were unplanned activities, and which could impact the organization or the member negatively, the focus had to be shifted from those planned audits to deal with those investigations. There being no further queries or comments, Mrs. Ricketts-Moore asked for a motion to adopt the Supervisory Committee Report. This was moved by Member, Ms. Vilma Barr and seconded by Member, Ms. Norma Blake, with one abstention from Member, Mr. Floyd Ebanks and carried. Chairman, Balvin Vanriel thanked Mrs. Camelle Ricketts- Moore and invited the Chairman of the Nominating Committee, Mrs. Leodis Douglas to present that Committee’s Report. 13. NOMINATING COMMITTEE REPORT The Chairman of the Nominating Committee, Mrs. Leodis Douglas, greeted the Members and encouraged Member, Mr. Floyd Ebanks to escalate the loan issue he mentioned earlier, as he had the right to appeal as a Member of the Credit Union if he was not comfortable with the decision taken. She then asked for a motion that the Report be taken as circulated and read. This was moved by Member, Ms. Kareen Jones and seconded by Member, Ms. Charmaine Reid Myers and carried. Mrs. Douglas informed the meeting that in accordance with the provision of the rules of the Credit Union in respect of Article 14, Rule 59, a Nominating Committee was appointed comprising Mrs. Leodis Douglas as the Chairperson and the Board Representative, Mr. Richard Picart, Member Representative and Ms. Roxann Linton, the Staff Representative. She noted that the Committee met to consider all retiring Volunteers from the Board of Directors, from the Supervisory Committee and from the Credit Committee. The Committee subsequently advertised for Volunteers to fill the vacancies, these candidates were assessed, and recommendations made at this time. She reported that the term for Board Members: Messrs. O’Neil W. Grant, Edmund Jones and Kevin Forbes, Mrs. Tamara Francis Riley-Dunn and Ret’d SSP Michael James had come to an end but that they had all expressed their willingness in writing to continue to serve the Credit Union.

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The following persons were nominated to be elected to the Board of Directors. BOARD MEMBERS Mr. O’Neil W. Grant Mr. Edmund Jones Mr. Kevin Forbes Ret’d. SSP Michael James Mrs. Tamara Francis Riley-Dunn

TENURE (YEARS) TWO TWO TWO TWO TWO

Mrs. Leodis Douglas noted that in relation to the Members of the Supervisory Committee, all sitting Members are retiring at this AGM: Mrs. Camelle Ricketts-Moore, Mrs. Karla Stephens-Hall, Mr. Luke McIntosh, Ms. Geraldine Wright and Ms. Jacqueline Roberts. She added that all the persons named with the exception of Mrs. Karla Stephens-Hall, indicated, in writing, their willingness to continue to serve. She thanked wholeheartedly, Mrs. Karla Stephens-Hall, for her invaluable contribution to the Credit Union. In her stead, the Committee recommended Ms. Shauna-Kaye Gordon to serve on the Supervisory Committee. The Committee nominated the following persons to be appointed to the Supervisory Committee: SUPERVISORY COMMITTEE MEMBERS TENURE (YEARS) Mrs. Camelle Ricketts-Moore ONE Mr. Luke McIntosh ONE Ms. Geraldine Wright ONE Ms. Jacqueline Roberts ONE Ms. Shauna-Kaye Gordon ONE For the Credit Committee, Mrs. Leodis Douglas noted to the meeting that there were three Members up for retirement. They were Mr. Richard Ranger, Mr. Pete Nesbitt who resigned, and Ms. Janyce Robinson who also resigned. In the stead of the Volunteers who resigned, the Committee put forward the recommendation for Mr. Donald Williams to replace Mr. Pete Nesbitt and Ms. Clivia Green to replace Ms. Janyce Robinson. Mr. Ranger, however, indicated his willingness to continue to serve on that Committee for another term.

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The nominated members for the Credit Committee were as follows: CREDIT COMMITTEE MEMBERS TENURE (YEARS) Mr. Richard Ranger TWO Ms. Clivia Green TWO Mr. Donald Williams ONE She informed the meeting that profiles of all persons recommended by the Nominating Committee could be found within the full report. She then motioned for the newly nominated Members, Ms. Clivia Green and Ms. Shauna-Kaye Gordon to stand as she gave a brief introduction of the new Volunteers to the Membership. Mrs. Douglas then thanked the Volunteers for their expression of willingness to serve and invited the representative of the Department of Co-operatives and Friendly Societies, Mrs. Sheryl Brown to conduct the elections of officers. 14. ELECTION OF OFFICERS Mrs. Brown greeted the Members and informed the meeting of her role as the representative from the Department of Co-operatives and Friendly Societies. On behalf of the Registrar, Mr. Errol Gallimore, she congratulated the Credit Union on successfully convening its 7th Annual General Meeting. She added how impressed she was with the corporate social intervention that was embarked on for the year. Mrs. Brown reminded the Membership of the procedures of the proceedings at hand. She advised that they had heard the Nominating Committee’s Report and according to the rules of the Credit Union, after the Nominees had been placed before the Members, additional nominations could be made from the floor. She added that all other nominations would only be valid if the Nominees fulfilled their obligations to the Credit Union and satisfied the supervisory authority of being fit and proper to perform the corporate functions of the Credit Union. If there were nominations from the floor, the ballots would be issued and cast; the votes would be tallied; and the results would be announced. If there were no other nominations from the floor, then the persons who were nominated would be duly elected after receiving a mover and a seconder of the motion.

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Mrs. Brown commenced with the election of the Board of Directors. She stated the names of the nominees of the Board of Directors and asked for any other nominations from the floor. After the third call, and there being none, she asked for a mover and a seconder to duly elect the Nominees to serve on the Board of Directors. This was moved by Member, Ms. Rosemarie Arnold and seconded by Member, Ms. Norma Blake and carried. For the Credit Committee, Mrs. Brown reminded the meeting that Ms. Clivia Green replaced Ms. Janyce Robinson and Mr. Donald Williams replaced Mr. Pete Nesbitt, while Mr. Ranger, who was currently absent, had indicated his willingness to continue to serve. After stating the names of the Nominees, Mrs. Brown asked for any other nominations from the floor. There being none, she asked for a mover and a seconder to duly elect the Nominees to serve on the Credit Committee. This was moved by Member, Ms. Juliet Dallas and seconded by Member, Mr. Owen Webster and carried. Moving to the Supervisory Committee, Mrs. Brown reminded the meeting that Ms. Shauna-Kaye Gordon replaced Mrs. Stephens-Hall. She then stated the names of the Nominees of that Committee, and asked for any other nominations from the floor. After the third call, there being none, she asked for a mover and a seconder to duly elect the Nominees to serve on the Supervisory Committee. This was moved by Member, Mr. Michael Edmondson and seconded by Member, Ms. Jassette Bryan and carried. She then announced that those nominated had been duly elected to serve on the Supervisory Committee for one year. In relation to the Delegates for the League, Mrs. Brown asked for the motion to allow the Board of Directors to choose the representatives as Delegates and Alternate Delegates to the League. This was moved by Member, A. N. Harris Esq. and seconded by Member, Ms. Hannah Dixon and carried. Mrs. Brown then declared to the meeting that within ten (10) days of this meeting, the Board of Directors should meet, and a report with information such as TRN, telephone numbers, and addresses pertaining to the Members of the Board of Directors, the Supervisory and Credit Committees, should be sent to the Department of Co-operatives and Friendly Societies and any other forum that should

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be so informed. She continued that the information was important, noting that from time to time the Department needed to reach the Volunteers, especially the President, Secretary and Treasurer. She ended her presentation by thanking the Members and indicated the hope for a continued productive meeting. 15.

ANY OTHER BUSINESS

The Chairman thanked Mrs. Brown of the Department of Co-operatives and Friendly Societies for conducting the elections and announced the floor opened for any other questions or comments at that juncture. Member, A. N. Harris Esq. reminded the Chairman of the recorded suggestion posed by Member, Mr. Michael Burke that the history of the Credit Union was to be documented in a book format. Member, Mr. Michael Burke was acknowledged to respond, to which he informed the meeting that the writing was never done, not at the League nor at the Credit Union level. The Chairman then queried if he had approached the new CEO of the League concerning the matter to which Member, Mr. Michael Burke responded in the negative and indicated he wished not to do so. The Chairman then reminded the meeting that the League had actually completed and published a book on the history of the movement entitled ‘Founders and Keepers.’ Member, Ms. Audrey Smith commented on the adequacy of space at the Spanish Town Branch Office that served a wide cross-section of the parish. She spoke to the lack of technical and other resources and questioned when the office would be upgraded. The Chairman thanked her for the observation and responded that he would ask Management to review that branch, to see what could be done, while bearing the budget in mind. Member, Ms. Audrey Smith also spoke to the ‘quietness’ of the League at a time when the Credit Unions should be preparing for the impending BOJ regulations. She questioned the League’s role within the movement when the BOJ regulations are in place. Finally, she suggested that, in future, the souvenirs at the AGM be given out from the branch offices subsequent to their presentation of tickets, instead of Members leaving during the meeting to collect souvenirs and then leave. The Chairman thanked her for the comments and noted the League issues presented which he advised would be discussed later with the League’s CEO.

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Member, Ms. Arnold expressed her concern about having to pay Maintenance Fee, however, the Chairman advised the meeting that, in ensuring that the needs of all Members were met, such as Online Banking, among other things, there were costs involved. He reiterated that FHC’s Maintenance Fees were one of the lowest, and in addition, there was the removal of the dormant fees. He encouraged Members to maintain their loans and to seek help from Team Members if they were experiencing difficulties in those areas. Member, Ms. Grant voiced the concern that she originated a loan at one branch office, but then visited another branch office to conduct business, and saw that there were marked differences in the deductions and loan balance from one branch to the next. The Chairman acknowledged her and noted that he would have Management look into the matter. One Member queried whether the Permanent Share had a cap and if the dividends were diverted to that Share. The Chairman responded that, while there was a maximum of $10,000.00, there was no cap, but Members needed to be aware that any further amounts added could not be used as collateral for a loan and the instant withdrawal of that additional amount could not be accommodated as easily as the Member desired. He then noted that paid dividends went directly to the Members’ Ordinary Share accounts. Member, Mr. Wright complained that the deposits he made at the Eureka Branch Office over many years ago, were not reflecting at the Portmore Branch office he visited. The Chairman asked that he had dialogue with the Branch Manager to iron out the issue, to which he responded that a meeting was set for next week to address that issue. There being no further comments, the Chairman called on the 1st Vice Chairman, Mr. O’Neil W. Grant to move the Vote of Thanks. 16. TERMINATION Subsequent to the Vote of Thanks and there being no further matter for discussion, the meeting was terminated at 5:45 p.m. _______________________ Leodis Douglas Secretary, Board of Directors 37

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BOARD OF DIRECTORS

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PROFILE OF BOARD OF DIRECTORS Mr. Balvin Vanriel, FCA, FCCA - Chairman Mr. Vanriel is currently an Associate Partner with the auditing firm BDO Chartered Accountants. He is a qualified Accountant, a Fellow with the Institute of Chartered Accountants of Jamaica and a member of The Association of Chartered Certified Accountants (ACCA). Mr. Vanriel is also a Registered Public Accountant. He serves as an Associate Minister in his denomination. He is Chairman of the Board of Directors of FHC and FHC Investments Limited. Mr. O’Neil W. Grant, MBA - 1st Vice - Chairman Mr. Grant is the President of the Jamaica Civil Service Association, since June 2011. He has held several positions in various Ministries, and currently sits on the Board of the National Housing Trust. He is a trained Accountant and Financial Analyst and holds an Executive MBA from the Mona School of Business. He is the 1st Vice Chairman and Chairman of the FHC Foundation as well as a Director on the Board of The Jamaica Cooperative Credit Union League Limited. Mr. Edmund Jones - 2nd Vice - Chairman Mr. Jones is a retired Civil Servant with his last post being Technical Support Manager at the Ministry of Finance and Planning. He currently does contractual work in both the Public and Private Sectors managing projects, teaching and consulting. His volunteer service includes directorships at Quality Networks Co-operative and the Jamaica Paralympic Association. He is also a Council Member of the Aquatics Sports Association of Jamaica. 40

He is the 2nd Vice President and is the Chairman of the Merger and IT Steering Committees. Mr. Kevin Forbes, MBA - Treasurer Mr. Forbes is currently employed to Look Beyond Limited as a Financial Controller. He previously served as Financial Manager at Cable & Wireless Limited, Financial Controller for Allied Insurance Brokers Limited, and worked in various management capacities at Grace Kennedy Company Limited and with Ernst & Young Caribbean. He holds a Masters of Business Administration in Finance from the Manchester Business School, United Kingdom, and is a Fellow of the Association of Chartered Certified Accountants as well as a member of the Institute of Chartered Accountants of Jamaica. He is the Treasurer of the FHC Credit Union and is the Chairman of the Finance & Operations Committee. Ret’d SSP Michael James - Asst. Treasurer Mr. James is a Retired Senior Superintendent of Police, a former Executive Member of the Police Officers’ Association and Divisional Commander of St. Thomas. He currently serves as Chairman of the Paul Bogle High School Board of Management. He has received numerous awards including the Medal of Honour for Meritorious Service, the Jamaica Constabulary Force Distinguished Service Award for the Development of Police Youth Clubs in Jamaica, as well as being named the Lasco Police Officer of the Year 2000. He is a Past President of the Kiwanis Club of St. Thomas. He is Assistant Treasurer on the Board of FHC Credit Union. Mrs. Leodis Douglas, MBA - Secretary Mrs. Douglas is currently the Human Resource Director and Principal Lecturer at GC Foster College of Physical Education and Sport. Mrs. Douglas is the holder 41

of a Master’s in Business Administration from Florida International University, a B.Sc. in Human Resources Management, graduating summa cum laude and a Diploma in Secondary Education with Honours. Mrs. Douglas presently serves as Secretary of the Board of Directors of FHC and is the Chairman of the Retirement Scheme’s Board of Trustees. Mrs. Tamara Francis Riley - Dunn, Attorney at Law - Asst. Secretary Mrs. Francis Riley-Dunn is a legal practitioner in Jamaica, having been called to the Bar in 2000. She specializes in commercial law (with an emphasis on debt collection), conveyancing and family law. She is an honours graduate of the University of the West Indies and also of the Norman Manley Law School, where she received her Certificate of Legal Education. She is the Assistant Secretary on the Board of Directors at FHC Credit Union. Mr. Noel Francis, O.D., MBA - Director Mr. Francis, a Commissioned Land Surveyor and a Class 1 Hydrographer, is an Associate of the Royal Institution of Chartered Surveyors. His work experience includes the management of the Survey Department as Deputy Director of Surveys, serving as a consultant in Dredging Engineering, Consultant to the Commonwealth Secretariat and the United Nations and serving as a Lecturer at the University of Technology. Educated at the University of the West Indies, University College London, University of Toronto, Texas A&M University and Nova Southeastern University. Mr. Francis’ qualifications include a Bachelor’s of Sciences Degree (BSc.) and a Master of Arts in Business Administration (MBA). Mr. Francis currently serves on the Board of the Jamaica Copyright Agency as Treasurer and sits on the Past Due Committee of FHC as well as the Board of Directors. Mr. Francis has been honored by the Jamaican Government with an Order of Distinction.

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Mr. Cranston Ewan, MBA, FCCA - Director Mr. Ewan is a Fellow of the Association of Chartered Certified Accountants (ACCA). He also holds a Master’s Degree with a concentration in Finance from the University of Manchester. Mr. Ewan has vast experience in several industries, spanning Accounting, Shipping, Education, Energy Efficiency, and the Distributive Trade. His expertise includes accounting, finance, management consulting, human resources management, facilities management and leadership.

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REPORT OF THE BOARD OF DIRECTORS On behalf of the Board of Directors, I am extremely pleased to report on our performance for the year ended December 31, 2019. The stellar performance of both First Heritage Co-operative Credit Union Limited (FHC) and its subsidiary FHC Investments Limited (FHCIL) is largely due to the unwavering support of our loyal members. Indicators showed that the Jamaican economy grew by 0.9% while unemployment declined by 1.5% from 8.7% as at 2018 to 7.2% as at October 2019. At the start of the year the exchange rate for the USD was JA$127.72: US$1 which depreciated to JA$132.57:US$1 by the end of the year. This translated to a 3.8% decline in the value of the Jamaican Dollar relative to the United States Dollar. Against this background, there have been several strategies that were implemented throughout the year as the Management Team sought to find new and creative methods to boost performance. This saw us continuing on our growth path and we were able to strengthen our organization on all fronts. As we continue to prepare for the Bank of Jamaica (BOJ) to take up direct supervision of the Credit Unions, we continue to ensure that we meet the monitoring standards as set out by our regulator the Jamaica Co-operative Credit Union League Limited (JCCUL). We have a robust risk and compliance structure in place to safeguard our operations, which we will continue to strengthen. FINANCIAL PERFORMANCE It was a great year for our Credit Union. We realized a surplus of $273.44 million which accounts for an increase of $31.99 million or 13.25% over the previous year. This year’s performance increased the Accumulated Surplus to $206.55 million. The Credit Union’s Total Assets grew by 11.83% to $13.66 billion. The Loan Portfolio increased to $8.90 billion, an increase of 10.70% or $859.71 million, whilst Members’ Deposits stood at $10.57 billion, an increase of 10.12% or $972 million.

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STRATEGIC VISION The Board of Directors, Committees and Executives participated in the 2019 Strategic Planning Retreat for the organization. This was a successful one day session as our Strategic Plan and Vision 2040 were revisited and updated. These included more member-focused strategies as well as the intention to deepen the relationship with our Members. OUR SUBSIDIARY FHC Investments Limited (FHCIL) The Jamaican economy continued to grow during 2019, with inflation, unemployment and interest rates remaining at historic lows. Although the foreign exchange rate fluctuated during the year, general economic conditions were relatively favourable and contributed to the growth of FHCIL. The Jamaica stock market performed well and, as a result of this buoyancy, the company’s investment portfolio increased significantly in value, contributing to trading gains which boosted our 2019 results. The volatility in the global bond markets continued throughout 2019 and with the low interest rate environment and rising political risks, funds were flowing out of the emerging markets and into government assets and US Treasuries. Profit for the year grew from $3.42 million in 2018 to $24.07 million in 2019. In addition, bond trading activity increased by approximately 12% in 2019 compared to 2018. Funds Under Management grew to $4.7 billion while Return on Equity was 17.84%. Retirement Scheme For 2019, as it relates to the Approved Retirement Scheme, we continued to focus on growing the membership and ensuring the best returns for contributors. As at December 2019, Total Assets in this Scheme stood at $1.41 billion, increasing by $263 million or approximately 23% over the 2018 period. During the year, 135 new members were enrolled bringing the total membership to 4,691. Members’ contribution to the Scheme for the year totaled $103.7 million.

45

We expect the bond trading and pension business lines to continue to be areas of consistent growth as we continue to invest in the right products and talent to meet our clients’ needs. FHC FOUNDATION Our Foundation’s mission is to promote the development of Jamaican youth, in particular, disadvantaged children and young people in primary, secondary and tertiary schools through education, sports and community involvement and creating opportunities for growth towards the advancement of nation building. A total of $1.33 million was donated to thirty three (33) recipients towards our annual Scholarships, Bursaries and Grants, namely our Primary Exit Profile (PEP), Oswald Thorbourne and Renald Mason Scholarships and an additional amount of $900,000 to our three Entrepreneurship Awardees. We congratulate our recipients and further encourage our members, their children and our Youth Savers to make use of these opportunities. Our annual benefit performance of the University Singers was held on Saturday June 8, 2019 at the Philip Sherlock Centre for the Performing Arts. RECOGNITION The stellar performance of our Credit Union for the year 2019 is commendable. The Board of Directors would like to express gratitude to all Members and Team Members for their loyalty, dedication and continuous support to the Credit Union over the years. OUTLOOK As we looked ahead to 2020, we learnt of what would later become a global pandemic and knew that our overall economy, as well as the Credit Union movement would face numerous challenges. FHC is built on the Credit Union movement’s philosophy “we are our brothers’ keeper”, and as such we will remain steadfast in our commitment to support our members through these unprecedented times.

46

We believe that despite the challenges that may lie ahead, we will be able to overcome them as we continue to care for and serve our members well while remaining agile and responsive to the evolving environment. The Board of Directors remains confident in the ability of the Management of the Credit Union to continue to advance our strategic agenda and ensure strong performance going forward.

_______________________ Balvin Vanriel Chairman, Board of Directors

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ATTENDANCE AT BOARD OF DIRECTORS MEETINGS Names Balvin Vanriel

Position

Scheduled

Chairman

Excused

11

0

O’Neil W. Grant 1st Vice 11 Chairman Edmund Jones 2nd Vice 11 Chairman

6

5

6

5

Kevin Forbes

Treasurer

11

9

2

Leodis Douglas

Secretary

11

9

2

Tamara Francis Riley-Dunn Assistant Secretary

11

9

2

Ret’d SSP Michael James Assistant Treasurer

11

11

0

Noel Francis

Director

11

9

2

Cranston Ewan

Director

11

11

0

48

11

Attended

EXECUTIVE TEAM

49

MANAGEMENT DISCUSSION & ANALYSIS We are pleased to report that the year 2019 was a successful one for First Heritage Co-operative Credit Union Limited (FHC). This financial year saw FHC delivering solid business results as we continue to refine our business model in an effort to be the financial institution of choice for our Members and Team Members. Our dedicated and experienced team responded well to the changing needs of our Members as well as the dynamic market conditions. We were again able to achieve sound results as we continued to focus on core business growth, rooted in our intention to enable our Members to realize their financial goals. This report provides a summary of our financial performance as well as highlights of the results of strategic activities pursued throughout the year. FINANCIAL PERFORMANCE We are proud to report a Net Surplus for 2019 of $273.44 million representing an increase of 13.25% over 2018. This outstanding performance was accomplished through the consistent execution of our strategies by our committed and dedicated team members as well as our Members who remain loyal to us. During the year we were able to maintain an inflow of loan requests from our members as our loan disbursements totaled $4.81 billion. OUR STRATEGIC PRIORITIES Our strategic priorities and the purposeful execution continue to be the guide for our continued success. Our Member-At-The-Centre philosophy inspires us to be deeply focused on our Members’ financial well-being through strategies that provide for easy and convenient access to tailored products and services and the provision of exceptional service. This is bolstered by strategies focused on people development, a strong risk culture and continuous pursuit of operational efficiency. These are the pillars which are our focus areas and have driven the success to date and we believe will continue to generate value in the long-term.

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OUR VALUED MEMBERS Deepening Member Relationships Our valued members remained at the centre of our business deliberations as we worked to deepen our member relationships. Embedded in our processes are disciplines for our Branch team members to make frequent contact with our Members to connect and understand how we can address their financial needs. We remain committed to providing exceptional member service through our distribution channels with knowledgeable, warm and courteous team members. Our members are greeted by Management as we open our doors in the mornings. Our Service Ambassadors are in the Banking Halls throughout the day greeting and assisting our members, interacting with them and managing the member flow in-branch ensuring appropriate and timely service delivery. The drive to offer members the option to save time by introducing our ATM and online services to those who do not access these channels, is also one of our strategies to improve service and reduce wait time in branches. During the year, there were also a number of touchpoints which allowed us to gain insights from our Members as we continued to understand and anticipate their needs in order to provide tailored solutions. Attractive Products and Services Developing new products and enhancing existing ones continued to be a key focus during the year as we sought to align solutions to meet our members’ needs and expectations. Worthy of special mention is our Micro and Small Business Unit for the innovation of the ‘Special Taxi Loan – One & Move’ which is geared towards the transportation industry and empowering the independence and realization of financial goals of our Members. Promotional activities and collaborations with major business entities were successfully pursued which resulted in much of our accountability targets being achieved.

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We continue to see an improvement in our loan portfolio year over year which signifies that our loan offerings are attractive and continue to provide real value to you our members. As we tried to meet the needs of our Members there were a number of product initiatives that were executed. 1. Match It Home Loan - A new home loan was created targeting first time home owners. With this product the main features saw us matching the highest interest rate and loan amount offered by the National Housing Trust. 2. One & Move Taxi Loan - This product catered to our members who want to own and operate taxis in the transport sector. Special taxi loans were offered with attractive features. 3. Grow It Campaign - As we sought to motivate our Members to save on a consistent basis, the Grow It Rewards promotion was introduced to encourage members to save in products such as the Hand To Hand Partner Plan and the Golden Harvest Savings Plan which require frequent periodic deposits. Quarterly prizes were offered via random selection. This promotion continues into 2020. 4. The Family Indemnity Plan/The Family Critical Insurance Plan Numerous promotions continued during the year as we encouraged our members to gain peace of mind and protect both themselves and their family members with these products. Member Engagement Activities Strengthening our relationship with our Members has always been a priority. As we sought to deepen our relationship with our Members, new and existing initiatives were used to enhance and engage them. Civil Service Week • Civil Servants of the Year Awards – With Civil Servants being a core part of our bond we were pleased to sponsor the Civil Servants of the Year 2019 Awards. The winners from the three categories awarded were:

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NAME

Ms. Celia Lindsay

CATEGORY

Management

DEPARTMENT

Jamaica Information Service

Mrs. Sophia Levy Middle-Management Administrator General’s Department Ms. Candice Henry

Technical Support

Jamaica Defence Force

• FHC was the Co - Sponsor of the Civil Service Week (CSW) 5K Walk/ Run for the second staging of the CSW/FHC Credit Union 5K Walk/Run. Credit Union Week - Credit Union Week activities took place in all branches islandwide during the week of October 14th, 2019. International Credit Union Day was celebrated on October 17, 2019 and once again we were able to treat some of our Members to a movie at the Carib 5 Cinema. This was a part of the Jamaica Co-operative Credit Union League’s annual International Credit Union Day Celebration. Fitness Revolution Party - As a part of our Wellness Programme at FHC our Fitness Revolution exercise sessions were held during the year. This was opened to our Members as well as the public. Christmas Show - Replacing our Carol Service, the FHC Christmas Show was held in our parking lot on December 12, 2019. This was a success and saw a wide variety of talents on show also including members and team members. Labour Day - A number of projects were supported across the island led by team members as we improved the aesthetics for a number of schools to enhance the learning experience for the students. These schools included Rollington Town Primary, Bridgeport Primary, Green Park Primary & Junior High, Corinaldi Primary, Penlyne Castle Primary and Cheveley Basic. Read Across Jamaica - A staple on our calendar, team members continued to participate in reading to students in select schools across the island. Once again this was well received. Lawrence Tavern Community Christmas Children’s Treat - This event was held in December and was well received by approximately two hundred children

53

from Lawrence Tavern as well as surrounding communities. This has now become an annual event. OUR PEOPLE AND CULTURE Our Human Resource initiatives for 2019 centered on continued support to the business by advancing a culture of high performance and continuous improvement. Integral to this strategy was the development of our Team’s agility to respond to a competitive and rapidly changing business environment, as well as keeping team members motivated and engaged for optimal performance. The shift in culture began with addressing team members’ mindset at our annual Blast-Off event themed “Feeling The Joy: Be The Magic” and was reinforced with monthly team messages from our CEO on “Dwelling in the Possibilities” and capitalizing on opportunities. Our major focus in building a culture of high performance and continuous improvement was our Learning and Development activities, which sought to equip team members with the knowledge and skills necessary to respond to changes in the environment. Of particular significance were the following training interventions to build competence and improve performance: • Enterprise Risk Management which addressed risk governance principles and strategies to be employed to mitigate risks and to ensure regulatory compliance. • With an increase in the number of fraudulent transactions in the financial services sector, our Fraud Awareness & Sensitization intervention exposed team members to the major types of frauds and provided practical strategies to reduce the credit union’s exposure. • Security Awareness - Cognizant of the importance of the safety of our locations and given the increased frequency of threats in our surroundings, team members participated in a sensitization training on personal safety and security awareness while at work, in transit and at home. • Leadership - Leadership Development Workshops were held for our people leaders and high potential team members in the innovative Art of Purposeful Story Telling, as an enabler for influencing, engaging audiences and also increasing sales. We also continued to support our team with our periodic regulatory and compliance

54

training interventions on the Proceeds of Crime Act (POCA), International Financial Reporting Standards (IFRS) as well as several certified Professional Development offerings from our on-line web-based Learning Management System. The gradual shift in culture was also impacted by our relationships in and outside the workplace as the attribute of “Kindness” continued to be of focus in our daily interactions with our Members, team members and the communities in which we serve. Team members continued to embrace kindness through support of our Corporate Social Responsibility initiatives – from our annual Feeding Programme in partnership with the St. Stephen’s United Church to the Breakfast Feeding Programme at St. Luke’s Anglican Church, our team members’ presence was felt. Additionally, a number of branches and departments volunteered to support welfare initiatives in their various communities. Another proud highlight in meeting our Corporate Social Responsibility was our participation in the Annual Civil Service 5K Run/Walk for which FHC was the title sponsor. The Run/Walk which benefitted the Woman Incorporated Crisis Centre was fully supported by team members and saw FHC winning the award for the largest participating team.

55

We continued to encourage Team Members to practice a healthy work-life balance and weekly gym and exercise classes continued throughout the year. Fully cognizant of the relationship between a highly engaged team and high productivity levels, several quarterly engagement events were organized throughout the year to keep our team motivated and energized. Our signature Theme Fridayz lymes, Sports Club events, reintroduction of the Domino Club, a memorable Fun Day at the Lyssons Beach and our annual Christmas Party - “A Touch of White� closed out a year of achievements, learning and fun. OUR STRONG RISK CULTURE Loan Risk and Credit Administration During 2019, FHC continued to reduce the past due percentage on the loan portfolio as we move towards achieving the PEARLS and BOJ standards. The past due percentage for the year ended at 8.11% while the loan portfolio grew from $8.41 billion to end the year at $9.24 billion. We are pleased with the progress being made in improving the overall quality of the portfolio and this is attributed to sound credit risk management and effective arrears management. FHC is committed to remaining up to date with respect to international standards, the latest being IFRS 9, which focuses on improving risk management, including the method of calculating the amount set aside for bad loans (Provisioning). This was an intensive exercise, and is now integrated in our operations. Management continues to encourage Members who are facing difficulties in meeting their loan obligations to seek dialogue with their Credit Union to formulate solutions. Enterprise Risk Management FHC remains committed to the principles of sound business practices to create and build value for our members and ensure growth and sustainability of the Credit Union. We recognize that risk management is an integral part of good management practice and is necessary for us to achieve our mission and vision. By taking a disciplined approach to risk management, we seek to ensure that our members continue to have confidence in us.

56

In 2019, we undertook a number of activities to enhance our risk management capacity. These included: 1. Enhancement of the Enterprise Risk Management Framework to better facilitate the identification, prioritization and management of risks in a coordinated manner; 2. Improved systems of control to facilitate the mitigation or management of risk. We have identified five (5) principal risks inherent to the activities and business processes of FHC: Strategic, Credit, Compliance, Operational and Financial. Accountability for managing each risk has been assigned to the relevant member of the executive management team. Our overall approach to managing risk is to balance business opportunities with sound risk discipline in order to achieve the mandate of our vision and mission. We will continue to improve and enhance our risk management practices with our key priorities in the ensuing year being the following: 1. Refinement of our risk governance framework to provide a more robust set of controls and enhanced management of the major risks assumed by the Credit Union Group; 2.

Expansion of our Master Risk Register; and

3. Development and implementation of stress testing and capital adequacy assessment programs consistent with industry best practice standards and regulatory requirements. Anti-Money Laundering and Counter-Financing of Terrorism We believe that it is crucial for our team to have a thorough understanding of anti-money laundering and counter financing of terrorism requirements. Our culture supports this belief through ongoing training and development to ensure customer due diligence and reporting of transactions that are suspected to involve illicit assets or terrorist activities.

57

In 2019, we undertook a number of activities to enhance our AML/CFT framework. These included: •

Revision of AML/CFT controls;

• Implementation of new systems and processes to comply with AML/CFT guidelines to better manage money laundering and terrorist financing risks. Foreign Account Tax Compliance Act (FATCA) During 2019, FHC Investments Limited continued to be compliant with its reporting obligations under FATCA. FOCUSED ON OPERATIONAL EFFICIENCY The Disbursement Unit played an integral part in the Credit Union meeting and surpassing its loan disbursement targets by ensuring that the loans were disbursed in an efficient and timely manner. The Securities Unit is charged with the responsibility to ensure that the loan collaterals are intact and current. We made progress in this area, however we still experienced challenges in members providing updated documents upon our request. Every effort was made to consistently deliver on our promise to process our salary deductions and direct deposits within the 24 hour turn-around time. This includes the thrust to automate the process for all large salary deduction companies and also communicating to our members how to go about making direct deposits. Key front-line processes were also reviewed in order to improve turnaround times and enhance the member experience. In addition, as we work to ensure our member database is up to date, we increased our efforts to obtain current member information by embarking on a special project which targeted our active members. Our Procedure and Verification Analysts provided the necessary assurances and coaching to ensure compliance with Policies and Procedures which resulted in a greater level of compliance within units.

58

During the year, the Credit Union’s information technology infrastructure was bolstered with investments made to strengthen policies and procedures, improve security and refresh equipment. These activities are a part of an overall initiative to modernize our information technology operations and improve the internal control environment in order to provide our Members with better service and to safeguard the Credit Union. OUTLOOK The year 2020 has started with unprecedented change and economic impact due to the COVID-19 pandemic. Notwithstanding, we remain resolute in our commitment to remain close to you our Members and to enable your financial pursuits through the ebbs and flows of life. We also assure you that our business continuity processes remain strong and the necessary foundation is in place to ensure our resilience during this pandemic and beyond. The pillars of the Credit Union are built on our Members, as such, our Member-atthe-Centre focus will continue to drive us into the future despite any foreseen or unforeseen challenges. While being undergirded by the Credit Union Movement’s philosophy of “being our brother’s keeper” we will continue to pursue strategies to better understand and serve our Members. In accordance with our belief that our team members are key to our success, we will continue to invest in the development of our leadership capacity including building the strength of emerging leaders, as we prepare the organization to navigate increasingly complex environments. With the constantly changing expectations of our Members and the evolution of financial technology, we will be investing further in our core banking system capabilities to enable more efficient service to our Members. Additionally, as the financial landscape changes, increased regulatory requirements are expected as we anticipate oversight by the Bank of Jamaica (BOJ) and Data Protection legislation. We look expectantly towards the future and remain confident in our ability to faithfully and innovatively pursue our mission of providing superior value to our Members, creating opportunities for our Team Members and serving our communities.

59

OUR GRATITUDE The year 2019 was an extremely successful one, for this we are very grateful to our members who remained loyal to us and saw us as their financial partner of choice. We thank all of our team members for their continuous commitment and enthusiasm towards achieving the vision of the Credit Union. To our Board of Directors and Volunteers, we express thanks for their dedication, contribution and support. We remain confident that the Credit Union is well-positioned to continue its legacy of supporting its members in realizing their financial ambitions while building a sustainable organization.

____________________ Roxann Linton Chief Executive Officer

60

REPORT OF THE TREASURER Overview It is with pleasure that I present the Treasurer’s Report to the Annual General Meeting of the First Heritage Co-operative Credit Union Limited (FHC) for the year ended December 31, 2019. The audited Financial Statements in this annual report are for the Group, which comprises the Credit Union and its wholly-owned subsidiary, FHC Investments Limited (FHCIL). Summary Financial Performance For 2019, FHC realized a surplus of $273.44 million as compared to prior year surplus of $241.45 million and this represents a 13.25% or $31.99 million increase over the prior financial year. This performance is the highest in FHC’s history surpassing the previous high in 2018. The subsidiary FHCIL, realized profits of $24.07 million after taxes as compared to prior year’s $3.42 million. This year’s performance resulted in an Accumulated Surplus of $206.55 million as at the year end bolstering the Credit Union’s Capital Base and improving our ability to navigate through challenging periods. At the crux of our performance is the execution of our member centric initiatives embedded in our three year Strategy Map which is focused on enhancing our member centric culture, improving our loan quality, development of Team Members and rationalization of costs. The continued investment in our Sales and Service Improvement Initiative has contributed to increased loan sales activities in a very competitive environment with disbursements remaining robust at $4.81 billion ($4.74 billion 2018). These disbursements were equally matched by our buoyant deposit inflows negating any adverse impact on our liquidity position. Of note is that the loan quality was not compromised as the past due rate moved from 8.42% to 8.11%.

61

The graphs below show the Credit Union’s Revenue and Net Surplus/(Deficit) performance for the last five years.

62

As at December 31, 2019, FHC Credit Union’s Total Assets of $13.66 billion represented an increase of 11.83% over prior year’s $12.22 billion, while the Group had Total Assets of $13.77 billion as compared to $12.30 billion (2018) representing an increase of 11.95% over the previous year. The Group’s Net Loan portfolio increased by 10.70% or $859.71 million over the prior year (2018) from $8.04 billion to $8.90 billion, while the Group’s Liquid Assets and Investments grew by $632 million moving from $3.10 billion (2018) to $3.73 billion (2019) as more funds became available based on our liquidity status. The graph below shows the Credit Union’s Investments, Loans and Total Assets for the period 2015 - 2019.

Members’ Deposits and Voluntary Shares increased by $972 million or 10.12% from $9.6 billion (2018) to $10.57 billion (2019). The primary contributor to this increase was our attractive interest offerings coupled with our “Grow It” deposit drive.

63

The graph below shows the Deposit trend over the period 2015 - 2019.

Economic Overview Estimates from Statistical Institute of Jamaica indicate that the Jamaican economy had growth of 0.9% in real Gross Domestic Product year over year for 2019. This was the seventh year of consecutive real GDP growth. Contributing to this was increased domestic demand and exports all supported by reduced levels of unemployment and improved macroeconomic stability. Supported by a growing global economy, the policies implemented by the Bank of Jamaica targeting inflation of 4% - 6% and the lowering of benchmark interest rates throughout the year, encouraged private sector credit and investment activities. The fiscal discipline by the Government, which led to a successful completion of the final IMF performance review and reduction of the Debt to GDP ratio, aided the improved outlook of the country’s credit ratings by international rating agencies. The Jamaican Dollar depreciated against the United States Dollar by 3.8% (2.17% prior year) in trading year over year ending 2019 at $132.57 ($127.72 prior year). Throughout the period, there was increased volatility as liquidity positions changed for varying reasons causing difficulties for businesses requiring foreign exchange. The exchange rate went to a low of $142.23 in November 2019. The 90 day benchmark Treasury Bill rate started the year at 2.05%, and moved downwards to 1.32% at year end. The BOJ indicative benchmark policy interest rate was at 0.5% as at December 2019 compared to 1.75% in December 2018. This easing of monetary policy was aimed at promoting stronger growth in the Gross Domestic Product, increased credit availability and the creation of jobs in order to maintain inflation within the target range.

64

The unemployment percentage declined by 1.5 percentage points over the year to end at its lowest ever at 7.2% as at October 2019 down from 8.7% as at December 2018. Regulatory Environment Our regulator, the Jamaica Co-operative Credit Unions League Limited continues to monitor our performance against International Credit Union Industry financial benchmark standards for safety and soundness (PEARLS). Our performance is also compared to other prudential standards by the BOJ. The Credit Union continues to make the requisite preparation for this transition of direct supervision of the Credit Unions by the BOJ through procedural and policy reviews. As a specified financial institution, however, the BOJ continues to have oversight of our activities by reviewing our financial reports and conducting periodic audits. FHC’s Regulatory Institutional Capital to Total Assets ratio stood at 11.97% as at December 31, 2019 (12.81% 2018), compared to the minimum PEARLS Standard of 8.00%, and a 6.00% minimum requirement for the Bank of Jamaica. Operating Results Increased competition challenged our margins throughout the period but we continued to apply initiatives to adapt to the changing needs of the marketplace and our members, always cognisant of the need to continuously improve the member experience, productivity and our internal controls. The Credit Union’s Key Results for the year 2019 were: • Interest Income of $1.54 billion (2019) increased by $90 million or 6.24% from $1.45 billion (2018) and was primarily due to the growth in the loan portfolio as the Credit Union remained attractive by offering competitive rates to members through improved and new product offerings. This led to a record level of loan disbursements of $4.81 billion. • Non-Interest Income of $258.74 million (2019) increased by $33.40 million or 15% from $225.34 million (2018). This increase is mainly attributed to the gains from equity trades and stocks revaluation ($55.40M in 2019 against $31.05M in 2018). 65

See graphical depiction of the Credit Union’s performance in Interest Income and Non-Interest Income for 2018 - 2019 below.

• Interest Expense increased from $188.23 million (2018) to $215.09 million (2019). This increase is directly correlated to the significant take up of the Term Deposits which are our primary source of funding. The Credit Union continues to offer some of the most attractive interest rates available to our members on savings products. • Operating Expenses increased by $101.4 million or 8.89%, from $1.14 billion (2018) to $1.24 billion (2019) however our Operating Expenses to Average Asset ratio edged down to 9.59% from 9.84% in 2018. • Past Due loans (30 days and over) as a percentage of our Gross Loan portfolio was 8.11% (vs. 8.42% as at December 2018). • Provision for Loan Losses for the year, net of recoveries reduced to $62.41 million in 2019 from $107.37 million in 2018. This was primarily due to the reduced exposure to unsecured loans relative to the previous year as the portfolio was reduced to 18.30% from 20.72% in 2019. The provisioning for loan loss continued to be adequate to cover potential losses. • Accumulated surplus available before distributions increased to $206.55 million from $44.74 million, an improvement of $161.81 million over 2018. Conclusion The Credit Union’s performance in 2019 is incomparable, having experienced 66

the highest levels of loan disbursements and Net Surplus to date. Our Capital and Liquidity positions remained adequate and above benchmark ratios at the financial year end. These improvements are a direct result of the commitment to the execution of our strategies and the continued refinement of our ethos anchored at putting the members at the centre. The year 2020 has presented a number of new challenges primarily brought on by the global pandemic COVID-19, which has ravaged economies including Jamaica. The IMF has projected that the world economy will contract by 5.6%. Although uncertain as to how sustained its impact will be on our operations, we continue to monitor and manage the attendant risks being cognisant of our obligations to all stakeholders. We are confident that like all the other challenges we have faced in the past, we will overcome with your support and prayers and the continued, focused efforts of our team. As always, the Credit Union’s success is dependent on the continued support of you our members, our dedicated team members and our volunteers. Acknowledgements We give thanks to God. I am grateful to have been able to serve as your Treasurer and it has been an honour and privilege to do so. The Board of Directors and Management are thankful to you our members for entrusting your confidence in us by giving your continued support to the Credit Union. It is an honour, thank you. We acknowledge the work of our Auditors, KPMG, for their professional execution and another timely completion of our audit. To all our valued stakeholders including especially our volunteers, managers and team members who consistently apply themselves to the Credit Union’s success, I thank you. God bless you all. ………………………. Kevin Forbes Treasurer 67

FIRST HERITAGE CO-OP CREDIT UNION LIMITED THE TREASURER'S REPORT 31-Dec-19

2019

$

OUR INCOME WAS EARNED FROM

INCREASE (DECREASE)

2018

$

$

%

INTEREST ON

1,438,045 102,206

1,337,495

MEMBERS LOANS INTEREST ON OTHER INVESTMENTS

112,336

100,550

8

(10,130)

(9)

4,884

RENTAL INCOME

1,784

3,100

174

253,863

OTHER INCOME

223,560

30,303

14

1,675,175

123,823

7

(95,482)

9

1,798,998

OUR COST TO OPERATE THE CREDIT UNION WERE

(1,126,513)

ADMINISTRATION

(1,031,031)

(63,921)

ESTABLISHMENT

(64,043)

(215,098)

FINANCIAL

(65,754) ALLOWANCE FOR LOAN LOSS & INVESTMENT (50,770)

REPRESENTATION & AFFILIATION

(1,522,056) 276,942

(0)

(188,232)

(26,866)

14

(105,669)

39,915

(38)

(44,746)

(6,024)

13

(1,433,721)

(88,335)

6

212,158

88

241,454

GIVING A SURPLUS OF

122

FROM WHICH WE SET ASIDE

(2,500) (1,000) (54,688)

218,754

HONORARIA DONATION 20% STATUTORY RESERVE

LEAVING A NET SURPLUS OF

-

(2,500) (1,000)

-

(48,291)

(6,398)

13

193,163

25,590

13

(206,081)

250,818

(122)

57,655

(114,593)

(199)

44,737

161,816

362

TO WHICH WE ADD THE

44,737 (56,938)

206,553

PREVIOUS UNDISTRIBUTED SURPLUS CARRIED OVER LESS: TRANSFER FROM/(TO) RESERVES

MAKING A GRAND TOTAL UNDISTRIBUTED SURPLUS AVAILABLE FOR DISTRIBUTION BY MEMBERS IN THE AGM

68

FIRST HERITAGE CO-OP CREDIT UNION LIMITED THE TREASURER'S REPORT 31-Dec-19

2019

$

$' 000 3,653,408 49,173 6,871,140 179,102

2018

INCREASE (DECREASE)

$' 000

$' 000

$

WE THE MEMBERS OWN ORDINARY SHARES INTEREST ACCRUED ON DEPOSITS

$

3,297,801

355,607

11

44,884

4,289

10

612,087

10

6,259,053

ORDINARY DEPOSITS

179,335

OTHER DEPOSITS

10,752,823

%

(233)

-

9,781,073

971,750

10

774,753

70,636

9

1,325,437

66,740

5

44,737

161,816

362

11,926,000

1,270,942

11

8,044,332

859,713

11

OTHER RECEIVABLES

725,620

59,641

8

CASH IN HAND AND AT BANK

134,401

(47,962)

(36)

TO PURCHASE ASSETS

313,289

1,367

0

2,992,243

571,912

19

6,977

1,014

15

12,216,862

1,445,685

12

WE ALSO OWN 845,389 1,392,177 206,553 13,196,942

STATUTORY & LEGAL RESERVES RETAINED EARNINGS & OTHER RESERVES UNDISTRIBUTED SURPLUS

MAKING THE GRAND TOTAL OWNED BY MEMBERS

WE USED THIS MONEY IN THE FOLLOWING MANNER 8,904,045 785,261 86,439 314,656 3,564,155 7,991

LOANS TO US AS MEMBERS

INVESTMENT IN OTHERS TO PURCHASE INVENTORIES

13,662,547 (465,605)

13,196,942

LESS:AMOUNT WE OWED TO OTHERS AT YEAR END

AGREEING OUR NET INVESTMENT WITH OUR GRAND TOTAL OWNED

69

(290,862)

11,926,000

(174,743)

1,270,942

60

11

70

71

First Heritage Co-Operative Credit Union Limited Financial Statements December 31, 2019

72

77 to 162

73

74

75

76

77

78

77 to 162

79

80 80

81

82

83

77 to 162

84

85

86

87

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89

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91

92

93

94

95

96

97

98

99

100

101

102

103

104

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162

REPORT OF THE SUPERVISORY COMMITTEE

THE COMMITTEE The Supervisory Committee assists the Board of Directors in the discharge of its responsibilities by providing oversight on aspects of the internal control system through the Internal Audit Function. The members of the Supervisory Committee are elected from and by the wider 163

membership at the Annual General Meeting. At the last Annual General Meeting, one (1) member was elected and four (4) members were re-elected. The standing (current) members of the Supervisory Committee are: • • • • •

Mrs. Camelle Ricketts-Moore Ms. Jacqueline Roberts Ms. Shauna-Kaye Gordon Mr. Luke McIntosh Ms. Geraldine Wright

On May 16, 2019, the Committee appointed Mrs. Camelle Ricketts-Moore as Chairman and Ms. Shauna-Kaye Gordon as Secretary. ATTENDANCE RECORD During the period, twelve (12) meetings were held and as at December 31, 2019, attendance by members were as follows:Names Mrs. Camelle Ricketts-Moore Mrs. Karla Stephen-Hall Ms. Shauna-Kaye Gordon Mr. Luke McIntosh Ms. Geraldine Wright Ms. Jacqueline Roberts

Scheduled 12 4 8 12 12 12

Attended 11 3 8 11 11 11

Excused 1 1 0 1 1 1

In addition, during the period, members of the Committee attended the Joint Meeting of the Board of Directors, Committee and Management held quarterly. The Chairperson also attended all three (3) Audit & Risk Management Committee meetings held during the period. AUDIT AND INVESTIGATION ACTIVITIES Audits Conducted An Audit Plan was prepared and the evaluation of the Credit Union’s operations was executed in accordance with this plan. In addition, routine monthly activities and investigations as requested by Management were completed. 164

The following table represents the areas of focus in 2019 for the Internal Audit Department. There were eight (8) audits on the Audit Plan, of which five (5) were completed as at December 31, 2019, one (1) was in progress and two (2) were deferred to 2020. 2019 Audit Plan Audit No. Description

Status as at Dec. 31, 2019

1.

Loan and Security Management

Completed

2. 3.

Anti-Money Laundering (AML) and Counter - Financing of Terrorism (CFT) Compliance for the year 2018

Completed

Human Resources Management

Completed

4.

Information Technology (IT) General Controls Follow Up

Completed

5. Back Office Operations Processes Management

Completed

6.

FHC Investments Limited Operations Management

Fieldwork in Progress

7.

Liquidity Management

Deferred to 2020

8.

Anti-Money Laundering (AML) and Counter- Financing of Terrorism (CFT) Compliance for the year 2019

Deferred to 2020

From the audits conducted and recommendations made, the Management team has shown their commitment in addressing these recommendations and has continued on a path towards strengthening the internal control systems of the Credit Union. Follow-up reviews were conducted periodically by the Internal Audit Department to ensure outstanding recommendations were being addressed.

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Investigation Activities Special investigations continue to be a major activity for the Internal Audit Department and given the sensitive nature of these activities, they were treated as priority. There were 20 special investigations conducted in 2019 (compared to 16 in 2018). General Reviews Over the period the following activities were noted: 1. Bank Reconciliations were reviewed in a timely manner and reconciling items were being cleared appropriately. 2. We were also satisfied that effort was made to collect and regularize outstanding loan balances from staff, volunteers and connected parties. CONCLUSION We would like to express our thanks to the Nominating Committee for their confidence in selecting us and to the Members of the Credit Union for appointing us to serve in this important capacity. We would also like to express our gratitude to the Management and Team Members, in particular the Internal Audit Department and the Board of Directors for facilitating and supporting the work of the Committee over the year.

_______________ Camelle Ricketts-Moore Chairperson

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REPORT OF THE CREDIT COMMITTEE

For the financial year 2019, the Credit Union experienced excellent growth in the loan portfolio, despite an environment of tough competition from other players within the financial services industry. In the face of these challenges, the Credit Union is determined to meet the financial needs of its Members and to assist them with achieving their financial and personal goals. The Credit Union will endeavour to consistently exceed its Members’ expectation.

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The Credit Union’s loan disbursements continued to be strong, amounting to $4.75 billion in 2019 (compared to $4.76 billion in 2018). The loan portfolio grew by 13.1% or $1.21 billion – moving from $8.04 billion in 2018 to $9.25 billion in 2019. The past due rate continues to trend downwards as a result of the introduction of innovative strategies. The past due rate fell from 8.42% as at December 31, 2018 to 8.11% as at December 31, 2019. Of note, is the performance of the Micro & Small Business Loan Unit which saw disbursements increasing from $300.7 million for 2018 to $670.3 million in 2019, an increase of $369.6 million or 123% when compared to the prior period. Attendance For the period of January to December 2019, a total of forty-nine (49) meetings were held. Attendance for each member was as follows: Members Meetings Held Meetings Attended

Excused

Mrs. Althea Daley Mr. Richard Ranger Mr. Donald Williams Ms. Clivia Green Mr. Stennett McLean

4 16 12 Joined June 2019 4

49 49 49 49 49

45 33 37 27 45

We thank you, our members, for your assistance in reducing the past due rate and urge you to continue to play your part by ensuring that loans are repaid in a timely manner. We encourage any member experiencing financial difficulties to call or visit the Credit Union so that the best arrangement can be made to become current. The Credit Committee takes this opportunity to express profound gratitude to the highly trained and dedicated Team Members of FHC, the Board of Directors, Supervisory Committee and YOU, our valued and committed Members, for the assistance and support provided in 2019.

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We look forward to serving you in 2020.

________________________________ Althea Daley (Mrs.) Chairman

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REPORT OF THE NOMINATING COMMITTEE In order to present a slate of Volunteers for election at the 8th Annual General Meeting, a Nominating Committee was formed. This Committee was appointed in accordance with the provision of Article XIV, Rule 59 of the Rules of First Heritage Co-operative Credit Union Limited and comprised: • • •

Mr. Edmund Jones - Chairperson, Board Representative Mr. Richard Picart - Member Representative Ms. Roxann Linton - Staff Representative

Under consideration were the vacancies created by the retiring Volunteers who all indicated their willingness to continue to serve. This report is now presented to the Membership. Board of Directors Directors retiring at this Annual General Meeting are: • • • •

Mrs. Leodis Douglas Mr. Cranston Ewan Mr. Noel Francis Mr. Balvin Vanriel

The Committee nominates the following persons, who have all indicated their willingness to serve: Retiring Mrs. Leodis Douglas Mr. Cranston Ewan Mr. Noel Francis Mr. Balvin Vanriel

Recommended Mrs. Leodis Douglas Mr. Cranston Ewan Mr. Noel Francis Mr. Balvin Vanriel

Term (years) 2 2 2 2

Supervisory Committee The members of the Supervisory Committee all retire at each Annual General Meeting. They are:

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• • • • •

Ms. Shauna-Kaye Gordon Mr. Luke McIntosh Mrs. Camelle Ricketts-Moore Ms. Jacqueline Roberts Ms. Geraldine Wright

The Committee nominates the following persons, who have all indicated their willingness to serve: Retiring Ms. Shauna-Kaye Gordon Mr. Luke McIntosh Mrs. Camelle Ricketts-Moore Ms. Jacqueline Roberts Ms. Geraldine Wright

Recommended Ms. Shauna-Kaye Gordon Mr. Luke McIntosh Mrs. Camelle Ricketts-Moore Ms. Jacqueline Roberts Ms. Geraldine Wright

Term (years) 1 1 1 1 1

Credit Committee The members of the Credit Committee retiring at this Annual General Meeting are: • • •

Mrs. Althea Daley Mr. Stennett McLean Mr. Donald Williams

The Committee nominates the following persons, who have all indicated their willingness to serve: Retiring Mrs. Althea Daley Mr. Stennett McLean Mr. Donald Williams

Recommended Mrs. Althea Daley Mr. Stennett McLean Mr. Donald Williams

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Term (years) 2 2 2

PROFILES OF CANDIDATES 1. 2. 3.

Board of Directors Supervisory Committee Credit Committee

PROFILES OF CANDIDATES 1.

Board of Directors

Balvin Vanriel Mr. Balvin Vanriel, FCA, FCCA - Chairman Mr. Vanriel is currently an Associate Partner with the auditing firm BDO Chartered Accountants. He is a qualified Accountant, a Fellow with the Institute of Chartered Accountants of Jamaica and a member of The Association of Chartered Certified Accountants (ACCA). Mr. Vanriel is also a Registered Public Accountant. He serves as an Associate Minister in his denomination. He is Chairman of the Board of Directors of FHC and FHC Investments Limited. Mrs. Leodis Douglas, MBA - Secretary Mrs. Douglas is currently the Human Resource Director and Principal Lecturer at GC Foster College of Physical Education and Sport. Mrs. Douglas is the holder of a Master in Business Administration from Florida International University, a B.Sc. in Human Resources Management, graduating summa cum laude and a Diploma in Secondary Education with Honours. Mrs. Douglas presently serves as Secretary of the Board of Directors of FHC and is the Chairman of the Retirement Scheme’s Board of Trustees. Mr. Noel Francis, O.D., MBA Mr. Francis, a Commissioned Land Surveyor and a Class 1 Hydrographer, is an Associate of the Royal Institution of Chartered Surveyors. His work experience includes the management of the Survey Department as Deputy Director of Surveys, serving as a consultant in Dredging Engineering, Consultant to the 172

Commonwealth Secretariat and the United Nations and serving as a Lecturer at the University of Technology. Educated at the University of the West Indies, University College London, University of Toronto, Texas A&M University and Nova Southeastern University. Mr. Francis’ qualifications include a Bachelor of Science Degree (BSc.) and a Master of Arts in Business Administration (MBA). Mr. Francis currently serves on the Board of the Jamaica Copyright Agency as Treasurer and sits on the Past Due Committee of FHC as well as the Board of Directors. Mr. Francis has been honored by the Jamaican Government with an Order of Distinction. Mr. Cranston Ewan, MBA, FCCA Mr. Ewan is a Fellow of the Association of Chartered Certified Accountants (ACCA). He also holds a Master’s Degree with a concentration in Finance from the University of Manchester. Mr. Ewan has vast experience in several industries, spanning Accounting, Shipping, Education, Energy Efficiency, and the Distributive Trade. His expertise includes accounting, finance, management consulting, human resources management, facilities management and leadership. 2.

Supervisory Committee

Mrs. Camelle Ricketts-Moore, FCCA, MBA, CIA, CISA Mrs. Ricketts-Moore has over 18 years’ working experience in the field of Accounting, Internal Auditing and General Business Operations acquired mainly from the Manufacturing, Distribution and Retail Industries. She previously worked with the GraceKennedy Company Limited for 11 years and is currently employed to Carlong Publishers Limited & Sangster’s Bookstores Limited as the Group’s Internal Audit Manager. A member of the Association of Chartered Certified Accountants (ACCA) since 1999, Mrs. Ricketts-Moore is a Chartered Accountant and holds an MBA from Manchester School of Business. She is also a Certified Information System Auditor (CISA) and a Certified Internal Auditor (CIA).

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She currently serves as a volunteer in the capacity of Chairperson on the Supervisory Committee at First Heritage Co-operative Credit Union Limited. Mr. Luke McIntosh, J.P. Mr. Mclntosh has a diverse 28 year career spanning the public and private sectors. He is currently the Principal Finance Officer at the Ministry of National Security, and has worked as the Principal Finance Officer at the Ministry of Justice, Financial Controller of a major statutory body and Director of Finance at the island’s largest public health care group. He holds a postgraduate degree from the University of Technology; an undergraduate degree from the University of the West Indies; a Teaching Diploma from the Mico Teachers’ College; a Diploma in Project Management and several specialized certificates in the areas of Leadership and Change Management, Government Accounting, Corporate and Strategic Planning, Public Sector Procurement, Human Resource Development for Capacity Building and Policy Development. Mr. Mclntosh, a Justice of the Peace, is an Executive Member/Treasurer of Father’s Inc. and a Gender Activist with the Women’s Media Watch. Ms. Geraldine Wright, MBA, CFE, AICB Ms. Wright has over 32 years of successful management and leadership experience in the areas of forensic accounting/fraud management, risk management, anti-money laundering and internal auditing. She is a Certified Fraud Examiner and holds an MBA from Barry University and a Diploma and Certificate in Banking from the Institute of Canadian Bankers and Institute of Bankers, England, respectively. Over the years, Ms. Wright has worked at various commercial banks including serving as the Internal Audit Manager at GraceKennedy Group and as an Audit Consultant at MICO University College. She has served on the board of directors of the Rural Electrification Programme (REP) and the Bellevue Hospital. Ms. Jacqueline Roberts, CA, ACCA Ms. Roberts is currently an Assistant Audit Manager with the auditing firm BDO Chartered Accountants. She is a qualified Accountant, a Fellow of the Institute of Chartered Accountants of Jamaica (ICAJ) and the Association of Chartered Certified Accountants (ACCA). Ms. Roberts is also a Registered Public Accountant. 174

Ms. Roberts possesses over 25 years accounting and auditing experience and has performed on assignments within various sectors such as, government, manufacturing, financial, agriculture, retail, non-profit and service organizations. She is currently the Secretary of the Supervisory Committee of First Heritage Co-operative Credit Union Limited. Ms. Shauna-Kaye Gordon, MBA, FCCA, CA Ms. Gordon is a Tax Manager with PwC since January 2017. She also has eighteen (18) years’ experience working with the Government of Jamaica in various departments including Tax Administration Jamaica and Jamaica Customs Department. Ms. Gordon has extensive knowledge of Jamaican tax laws, international double taxation treaties, and the tax administration system, practices, policies, and procedures. She has provided tax advisory and tax compliance services to clients in the retail, manufacturing, hospitality, banking, insurance and bauxite industries. Ms. Gordon holds a Masters Degree in Business Administration (MBA) from Florida International University (FIU) and a postgraduate diploma in Tax Audit and Revenue Administration from the Management Institute for National Development (MIND). She is a Fellow of the Association of Certified Chartered Accountants (FCCA) and a member of the Institute of Chartered Accountants of Jamaica (ICAJ). 3.

Credit Committee

Mrs. Althea Daley Mrs. Althea Daley currently serves as a Consultant with the Jamaica Central Securities Depository. She is an innovative financial service manager with over 22 years’ experience and has successfully managed the merger process of three credit unions. Mrs. Daley has served the credit union movement extensively as she was also a consultant with the Jamaica Co-operative Credit Union League Limited, the Petroleum Industry Employees Co-operative Credit Union, Deputy General Manager for the Montego Co-operative Credit Union Limited and served in the capacity of Manager for both Shell Employees Co-operative Credit Union Limited and Grace Co-operative Credit Union Limited.

175

Mrs. Daley holds a Postgraduate Diploma in Financial Services Management from the Jamaica Stock Exchange E-Campus and a Bachelor of Science in Management Studies from the University of the West Indies. She has been serving the Credit Union as a volunteer on the Credit Committee since 2014. Mr. Donald O. Williams, J.P., ACIB, FICB Mr. Williams is a former Vice President - Credit Risk Management with Scotia Bank Jamaica where he served for over 47 years in several operational, senior management, and executive roles and is now retired. Mr. Williams has worked both in Jamaica as well as Toronto, Canada for the Bank of Nova Scotia with extensive experience in both retail credit and corporate credit. Mr. Williams is an Associate of the Institute of Canadian Bankers (ACIB) and a Fellow of the Institute of Canadian Bankers (FICB). Mr. Williams is a Justice of the Peace for the parish of Kingston, as well as a Parish Court and Supreme Court Mediator. Mr. Stennett McLean, GISP Mr. McLean is a Chief Photogrammetrist of the Survey and Mapping Division within the National Land Agency and previously served as a Supervisor in the Topographical Data Management Division. He has been a cartographer with the Agency for numerous years and while with the organisation he has represented the government of Jamaica at various international conferences, including acting as a representative of the government for the United Nations. Mr. McLean has completed studies in Cartography, Geographic Information System and Computer Engineering. He also specializes in Map design and creation (both digital and hard copy).

176

Signed ____________________ May 29, 2020 Edmund Jones Date Chairperson

___________________ May 29, 2020 Richard Picart Date Member Representative

___________________ May 29, 2020 Roxann Linton Date Staff Representative

177

HIGHLIGHTS

FHC Christmas Show FHC Team Members performing at the staging of our first Christmas Show held on December 12, 2019 at our Head Office location. Members were treated to an enjoyable night of performances by Team Members, Members and friends of FHC.

CSW/FHC Credit Union 5K Walk/Run Ready, Set, Go! First Heritage Co-operative Credit Union and the Ministry of Finance & The Public Service’s Civil Service Week Steering Committee launched the 2nd staging of the CSW/FHC Credit Union 5K Run/Walk. (l-r) Managing Director, Running Events - Alfred ‘Frano’ Francis, O.D.; Minister of Finance and The Public Service - Dr. The Honourable Nigel Clarke; CEO, First Heritage Co-operative Credit Union - Roxann Linton and 1st Vice Chairman, First Heritage Co-operative Credit Union & President of the Jamaica Civil Service Association - O’Neil W. Grant.

178

FHC Civil Servants of the Year Awards Civil Servants of the Year (l-r) Management Category- Celia Lindsay; Middle Management Category- Sophia Levy and Technical Support Category- Candice Henry. Sharing in the moment are (l-r) CEO of First Heritage Co-operative Credit Union, Roxann Linton and FHC Board of Directors, Chairman-Balvin Vanriel and 1st Vice Chairman- O’Neil W. Grant and Deputy Financial Secretary, Ministry of Finance & The Public Service, Wayne Jones.

CSW/FHC Credit Union 5K Run/Walk Patrons getting warmed up for the 2nd staging of the CSW/FHC Credit Union 5K Run/Walk at Emancipation Park held on Saturday, November 16, 2019.

179

Gibson Relays Assistant General Manager, First Heritage Co-operative Credit Union- Juven Montague-Anderson makes a presentation to the winners of the 4 X 200m High School Boys from Kingston College at the Gibson McCook Relays held in February 2019.

Read Across Jamaica Day Students from Rollingotn Town Primary School enjoying the story being read to them by Kadian Dyke, Manager- Micro & Small Business Loans Unit duirng Read Across Jamaica Day 2019.

180

Labour Day Project Team FHC showed love and care on Labour Day 2019 as they participated in our painting exercise at the Rollington Town Primary School.

Annual General Meeting Members dancing to the sounds of praise and worship by recording artist Carey Sayles at the start of the 2019 Annual General Meeting.

181

FHC Scholarships CEO of First Heritage Co-operative Credit Union, Roxann Linton is flanked by our 2019 Primary Exit Prolife (PEP) and Tertiary Scholarship recipients. Sharing in the moment are Volunteers (at back) FHC Board Secretary, Leodis Douglas and Chairperson-Supervisory Committee, Althea Daley.

FHC Grow It Rewards CEO, Roxann Linton congratulates first quarter winners in the FHC GROW IT REWARDS Promotion. Winners were (L-R) Latoya King, Angella Whyte and Crystal Phillips.

182

REPORT OF THE DELEGATES OF JCCUL’S AGM JAMAICA CO-OPERATIVE CREDIT UNION LEAGUE LTD.

2019 CONVENTION & 78th ANNUAL GENERAL MEETING HELD MAY 30 - JUNE 2, 2019 HIGHLIGHTS _________________________________________________________ The Convention & legally constituted 78th annual general meeting of the Jamaica Co-operative Credit Union League (JCCUL) was held from May 30 to June 2, 2019 at the Hilton Rose Hall Hotel & Spa in Montego Bay under the theme ‘People Helping People Achieve’. Approximately one hundred and forty (140) delegates, alternate delegates and observers attended the weekend Conference. The schedule of activities included an opening ceremony, a trade show, reception, workshops, banquet, the annual general meeting and an ecumenical service. The following activities took place: Thursday, May 30 Inaugural CARIBDE’s of Jamaica forum; • Local delegates showcased their projects and exchanged ideas with the audience. The audience also acknowledged and congratulated four (4) local delegates (Claudette Christie from JCCUL, Anthony Morrison from Portland Co-operative Credit Union, Lenroy Allen from Manchester Co-operative Credit Union and Leodis Douglas from First Heritage Co-operative Credit Union) who would be attending the World Council Conference to receive their International Credit Union Development Educator (I-CUDE) designation.

183

Managers’ Association Annual Meeting (closed session). Workshop: ‘The Healing Power of Jamaican Herbs’ by Dr Sylvia Adioa Mitchell ; A rowdy and lively discussion of Jamaica’s many herbs; this presentation engaged the audience on the herbs that exist in Jamaica, their potency and their uses. A session, that could also easily have been dubbed ‘beyond marijuana’ had the audience exploring the presenter’s research on herbs that can heal simple and complex illnesses, as well as herbs that can do more damage to the body than advertised. The session ended with games, giveaways, and herbs for purchase. Official Opening Ceremony, Guest Speaker Donovan White & Special MC Marlene Stephenson Daley; An evening of tribal drumming, upbeat dances, soothing voices and inspirational messages from the guest speaker opened the convention. FRIDAY May 31 The following activities took place: • WOCCU Global Women’s Network, Jamaica Chapter, Breakfast Meeting; Women in the Credit Union Movement met to discuss the achievements of females in the Movement and to empower women to forge ahead in achieving their goals and leaving a mark on the Movement. The conferences/workshops commenced after the plenary where the list of conferences and speakers were announced. After a short coffee break, the workshops and trade show began. The trade show exhibitors were: 1. 2. 3. 4. 5. 6. 7. 8. 9.

Creditinfo Jamaica Limited Jamaica Co-operatives Insurance Agency Limited (JCIA) Bevertec Caribbean Assurance Brokers Limited CUNA Caribbean Insurance Jamaica CRIF Credit Union Brand Engineering Company (CUBE) Highgate Systems Smart Solution 184

10. Data Vision 11. Jamaica Collection and Recovery Services Four workshops were held on Friday. They were as follows. • ‘Due Process in Dispute Resolution’ by Gillian Corrodus, Director of Industrial Relations at the Ministry of Labour and Social Services; A riveting discussion about the rights of an employee. The audience was absorbed in the speaker’s unpacking of the list of options afforded to them when handling disagreements with their employer and vice versa. In addition, the speaker addressed the pitfalls that come from signing an unfair contract as well as the rights of contracted employees. She also delved into the services offered to the employee and the employer by the Ministry of Labour and Social Services. • ‘Handling Grievances and Separations’ by Kwame Gordon, Attorney at Law; Mr. Gordon addressed the legal prospects afforded to an employee that has been terminated by their employer. He engaged the audience with real-life situations by presenting past court case disputes, having the audience first guess to the resolutions before revealing the answer. He then proceeded to explain why the court decision took the direction it did. • ‘How to Provide and Measure your Value to your Members’ by Hank Halter, CEO of Delta Credit Union, USA; Recruiting and retaining members, especially younger members, is a global credit union crisis. The speaker shared with the audience how Delta credit union was able to diversify its bond and increase membership by satisfying the needs of a younger generation and by being willing to evolve. • ‘The Art of Dealing with Non-performing Loans’ by Tim Paulson, International Trainer; The speaker empathized with the difficult and uncomfortable position of delivering bad news to a usually unreceptive listener. The lively discussion was filled with historical representations and a fun take on the advantages of being straightforward with the listener and reaching out before it’s too late. The afternoon of workshops concluded with an evening of revelry with the Merritone Disco that allowed participants to unwind.

185

SATURDAY June 1 The following activities took place: ANNUAL GENERAL MEETING Delegates from twenty-four (24) Credit Unions attended the 78th annual general meeting. President Mr. Winston Fletcher, chaired the meeting. He welcomed the participants and then gave a summary of the Board report for the year 2018. All other reports including that from the Treasurer, the Supervisory and Nominating Committees, as well as the audited financial statements were presented. Distribution of Surplus The Delegates agreed to the distribution of the surplus of one hundred and twenty-six million dollars ($126 million). The Delegates voted for the maximum liability of the League to be set at $5 billion. ELECTION OF OFFICERS The Meeting voted to accept the nominations for the following persons to serve on the Board of JCCUL. Name Martin Blackwood Andrea Messam Michael Anglin Patrick Smith Winston Fletcher Ryan Muir Maxine Wilson Carlton Barclay

Credit Union

Category

Portland Broadcast & Allied JDF JTA EduCom Lascelles Employees & Partners Palisadoes C&WJ

CU Managers Rep. Small Large At Large At Large At Large Large Mega

186

For the Supervisory Committee the following persons were elected: NAME

Michael Sutherland Ivy Lawrence Mr. Delroy James Ms. Nicola Reid Ms. Paulette Green

Credit Union C&WJ Credit Union Lascelles Employees & Partners Credit Union First Heritage Credit Union Palisadoes Credit Union Jamaica Police Credit Union

RESOLUTIONS Three (3) congratulatory resolutions were passed at the meeting as follows: BJ Staff Credit Union – 55th anniversary Postal Credit Union - 60th anniversary JTA Credit Union - 60th anniversary RULE CHANGES There were no rule changes. Following the AGM the executive was elected to serve on the League Board for the 2019 - 2020 year: Winston Fletcher - President Lambert Johnson - 1st Vice President Andrea Wilson-Messam - 2nd Vice President Norris Gilbert - Treasurer Patrick Smith - Assist. Treasurer Jerry Hamilton - Secretary Brenda Cuthbert - Assist. Secretary Carol Anglin Michael Anglin Carlton Barclay Martin Blackwood O’Neil Grant Clide Nesbeth (subsequently replaced by Maurice Bolt) Ryan Muir Maxine Wilson 187

The annual awards dinner ended Saturday’s activities. Guest speaker at this event was motivational speaker Mrs. Nadine Burrowes-Seaga, founder of People Development Consultants. Master of Ceremonies was Mr. Dervan Malcolm, radio broadcaster. Several awards were presented at the event as follows: Awards Mega (Assets > $2 Billion) Winner First Regional Credit Union Runner Up EduCom Co-operative Credit Union Large (Assets > $1 Billion - $2Billion) Winner JDF Credit Union Runner Up Palisadoes Credit Union Medium-sized (Assets > $300M to $1B) Winner Postal Credit Union Runner Up Grace Credit Union Small ( Assets < $300M ) Winner PWD Co-operative Credit Union Other Credit Unions that won prizes were: • C&WJ Co-operative Credit Union

- Highest Asset Growth

• JDF Co-operative Credit Union

- Highest Solvency

• C&WJ Co-operative Credit Union

- Highest Net Capital Growth

Other prizes: • CPD Online Top Performing Credit Union- JDF Co-operative Credit Union • CPD Online Top Performing Credit Union (Runner up) - Postal Co-operative Credit Union • CPD Online Top User - Jennifer McLaughlin (First Heritage Co-operative Credit Union)

188

• Service Quality Award Winner – JDF Co-operative Credit Union • Service Quality Award Runner-up – NCB Employees Co-operative Credit Union An Appreciation award was presented (in absentia) to Mrs. Susan Thompson, former Chief Operating Officer at the Jamaica Co-operative Credit Union League, and another to Ms. Phillipa Beckford, former Sales and Marketing Manager at Cuna Caribbean Insurance Jamaica, for their work with the Credit Union Movement. The convention ended officially on Sunday June 2, 2019 with an ecumenical service.

________________ ___________________ Roxann Linton Balvin Vanriel Delegates Delegates

189

Branches

Address

Branch Managers

Kingston & 8-10 Eureka Road Jacqueline Pingue- Smith St. Andrew Kingston 5 AGM - Business Development and Leads Generation (with responsibility for the Eureka/Ripon and Lawrence Tavern Branches) Lawrence Tavern Lawrence Tavern P.O. St. Andrew 20 Dominica Drive Racquel Walker Kingston 5

10 East Avenue Kingston 4

Melissa Miller- Benjamin

St. Catherine

Lot 57 West Trade Way Portmore Town Centre

Trudian Stewart

Unit 13 Oasis Shopping Centre 6 March Pen Road Spanish Town

Sheldon Christian

Shops 8 & 9, East Side Plaza 35 East Street Old Harbour

St. Thomas

26 Queens Street Morant Bay, St. Thomas

Jason Ferguson

Clarendon

Shops 5 & 6 Bargain Village Plaza May Pen

Norman Williams

190

Manchester

2 Perth Road Mandeville

Sharna Hutchinson-Scott

St. James

21 Union Street Montego Bay

Marcia Bailey

Garfield Pearson Senior Manager - Accounting & Treasury Sophia Harvey Manager - Human Resource Development Rosemarie Samuels Manager - Training and Development Kadian Dyke Manager â&#x20AC;&#x201C; Micro & Small Business Loans Unit Alleesa Matherson Manager - Centralized Loans Unit Omari Hodelin Manager - Information Technology and Projects Choy Miller Manager - Member Care Centre Thia Smith Senior Manager - Risk and Compliance

191

1. ORDER OF BUSINESS An agenda shall be prepared by the Chairman and Secretary, and all items. Thereon shall take precedence over all other business. Any member desirous of introducing business for the consideration of the meeting may do so after the business on the agenda has completed, or may give notice of motion to be discussed at a further meeting. 2. SUSPENSION OF STANDING ORDER In the event of any matter of urgency, however, the Chairman may accept a suspension of the Standing Orders. The member moving such suspension must clearly state the nature and urgency of his business, the numbers of the standing orders affected, and the length of time he desires such suspension to last. At the option of the meeting, a further extension may be allowed, but no suspension shall take place except by majority vote of the members present. 3. MINUTES No motion or discussion shall be allowed on the Minutes except in regard to their accuracy. After the confirmation of the Minutes, they shall be signed by the Chairman, and the members shall than be at liberty to ask any questions in regard to matters arising out of them. Such questions shall be allowed for purposes of information only, and no debate on the policy outlined in the Minutes shall take place. 4. All persons desiring the floor shall rise and address themselves to the chair. They shall state their name and the Credit Union which they represent, if recognized by the chair, they shall have the privilege of the floor and all the rights thereof. 5. All speakers are to make use of the Desk and Floor Microphones when addressing the Meeting in order that it be recorded and made a permanent record in the Meeting Proceedings. 6. Should two or more persons rise at the same time, the chair shall decide, without debate, who is entitled to the floor.

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7. SPEECHES No member shall be allowed to speak more than once upon on any motion before the meeting, unless in Committee, or on a point of order, or explanation, except the mover of the Original Motion. But on an amendment being moved, any member even though he has spoken on a Original Motion, may speak again on the amendment. No member shall speak for more than five minutes at a time. Members wishing to raise points of order or explanation must first obtain the permission of the Chairman and must raise immediately the alleged breach has occurred. Any member may formally second any motion or amendment and reserve his speech until a later period in the debate. 8. No person shall interrupt another who is speaking except on a point of order, a parliamentary inquiry, or a point of information. 9. If it should come to pass that a speaker is called to order while speaking, the speaker should take his seat until the question of order is determined. 10. CHAIRMANâ&#x20AC;&#x2122;S RULING The ruling of the Chairman on any question under the Standing Orders, or on points of order or explanation, shall be final, unless challenged by not less than four members, and unless two-thirds of the members present vote to the contrary. 11. INTERRUPTION If any member interrupts another while addressing the meeting, or uses abusive or profane language or causes disturbance at any of the meetings, and refuses to obey the Chairman when called to order, he shall be named by the Chairman. He shall thereupon be expelled from the room and shall not be allowed to enter again until an apology satisfactory to the meeting be given. 12. A question shall not be subject to debate until it has been duly moved and seconded and is stated from the chair. 13. MOTIONS AND AMENDMENTS The first proposition on any particular subject shall be known as the Original Motion, and all succeeding propositions on that subject shall be called amendments. Every motion or amendment must be moved and seconded by members actually present at the meeting before they can be discussed, and, wherever possible, should be set forth in writing. It is permissible for a member to make his speech first and conclude with a motion. When an amendment is moved to an Original Motion, no further amendment shall be discussed until the first amendment is disposed of (Notice of 193

any further amendment must be given before the first amendment is put to the vote). 14. SUBSTANTIVE MOTIONS If an amendment be carried, it displaces the Original Motion and itself becomes the substantive motion, whereupon any further amendment relating to any portion of the substantive motion may be moved, provided it is consistent with the business and has not been covered by an amendment or motion which has been previously rejected. After the vote on each succeeding amendment has been taken, the surviving proposition shall be put to the vote as the main question, and if carried shall then become a resolution of the meeting. 15. RIGHT OF REPLY The mover of the Original Motion shall if no amendment be moved, have the right of reply at the close of the debate upon such motion. When an amendment is moved he shall be entitled to speak thereon in accordance with Standing Order No. 8 and at the close of the debate on such amendment shall reply to the discussion, but shall introduce no new matter. The question shall then be put to the vote immediately, and under no circumstances shall any further discussion be allowed once the question has been put from the Chair. The mover of an amendment shall not be entitled to reply. 16. WITHDRAWALS OR ADDITIONS No motion or amendment which has been accepted by the Chair shall be withdrawn without the majority vote of the meeting. Neither shall any addendum or rider be added to a motion which has once been accepted by the Chair without majority vote. Should any member dissent, the addendum must be proposed and seconded, and treated as an ordinary amendment. 17. CLOSING DEBATE The motions for the previous question, next business, or the closure, may be moved and seconded only by members who have not previously spoken at any time during the debate. No speeches shall be allowed on such motions. In the event of the closure being carried, the mover of the Original Motion shall have the right to reply in accordance with Standing Order No.16 before the question is put. Should any one of the motions mentioned in this Standing Order be defeated, thirty minutes shall elapse before it can be accepted again by the Chairman, unless he is of the opinion that the circumstances have materially altered in the meantime.

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18. ADJOURNMENT Any member who has not already spoken during the debate may move the adjournment of the question under discussion, or of the meeting, but must confine his remarks to that question and must not discuss any other matter. The mover of the motion upon which the adjournment has been moved, shall be allowed the right to reply on the question of the adjournment, but such reply shall not prejudice his right of reply on his own motion. In the event of such motion being lost, it shall not be moved again, except in accordance with Standing Order 18. 19. Any member may call for a division of the House (that is, for a roll call vote) when there appears to be a reasonable doubt as to the accuracy of the vote as announced by the Chair. 20. A motion to lay on the table shall be put without debate. 21. Whispering, loud talking, or other disturbances calculated to disturb anyone while speaking will not be tolerated.

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REGISTER OF DEATHS Nicole Harris Errol Vassell Don Thompson Trevor Sterling Charles Reid Horatio Malcolm Juliet Henry-Hibbert Juliet Hibbert Audley Thomas Wayne Walters Clifford Hibbert Lincoln Davids Sonje Baxter-Dallas Dean Pennicook Sybil Whittle Paddy Spence Mavaretta Evans Milton Nunes Bernice Bennett Eileen Salmon Gregory Davis Monique Green Williams Mark Pauline Wilkins Loretta Percell Clinton Campbell Ransford Rodgers Ohren Powell Haughton Delroy Pearl Smith Lucille Sutherland Idona Morrison Clarissa Davis Lillith Passley-Needham Kedesha Green Patricka Boswell Deon Francis Huntley Clarke Juliet Messam

Adolphus Millicent Ann Angela Karen Glenville Alma Charmaine Renford Cornell Nickeisha Magdalene William Jeffrey Angela Pauline Adrian Aldarene Clifton Andreen Gary Fayline Milton Dorothea Berthran Pauline Marvette Denzil Hylton Sheron Lennetta Louise Nora Zadie Juliet Wilfred Carlene Janella Basil 196

Yorke Grant-Smith Lewars-Lee Reid-Gordon Cooke Bryan McKay Josephs Wynter Melado White Reid Louis McDonald Meredith Gordon James Gilzeane Bartley Anderson Baccas Scott Hanson Ellis Christie Henry Green Roper Daxter Morrison Williams Johnson-Brown Walker Hill-McKenzie Daley Wilson Reid Maitland White

Ewart Fullerton Jacqueline Fuller Erica Baker-Facey Carmen Cole Jacqueline Bailey Barbara Knowles Elffeliah Johnson King Pamella Corina Hall Maxine Stewart Jelonie Jones Lorane Angus George Hibbert Dean Thomas Reham Rodney Stacyann Brown Patsy Clarke Elenore Grant Debert Wright Devon Mcdonald Ida Thomas-Graham Alphanso Bryan Pauline Hyman Margaret Fowler Deryl Morrison Alzie Plunkett Clover Gardner Sylvia Clarke-Martin Douglas Robb Marcel Manahan Cornelius Anderson Joseph Birthwright Hannah Andreson Mark Barnes Emily Green Ofelia Morin Jermaine Powell Vincent Wilkie Suzette Livermore

Sherene Moriah-Whyte Susan James Pamelia Russell William Harrison Mavis Grant Phylis Benjamin Theresa Jolly Daley Frensesco Clive Spike Urlena Dixon Samuel Bennette Sandra Haughton Victor Campbell Violet Ellison Leonard Thomas Loreda Wade

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PRAYER OF ST. FRANCIS OF ASSISI

Lord, make me an instrument of thy peace. Where there is hatred, let me sow love; Where there is injury, pardon; Where there is doubt, faith; Where there is despair, hope; Where there is darkness, light; and Where there is sadness, joy. O Divine Master, grant that I may not So much seek to be consoled as to console; To be understood as to understand; To be loved as to love. For it is in giving that we receive; It is in pardoning that we are pardoned; And it is in dying that we are born to eternal life. Amen 198

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