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Our Cover Story... The year 2017 was a year of varied experiences, as FHC reignited its connection with its members, built stronger bonds among team members and remained active in the communities in which we serve. The lovely collage cover depicts the essence of our bond of association; the interplay of the State and the Church, passionate team members interacting and building team camaraderie.

Inner Circle: FHC celebrates at local Church Services - At one of our 5th Anniversary Services, held at Coke Methodist Church, our members/team members fellowshipped and responded to such an atmosphere with raised hands and singing from the heart. Sitting in quiet reverence is Mr. Patrick Burke, General Manager, FHC Investments Limited. Honouring Loyal Membership – A “Decades of Service” programme was formed to specially acknowledge our long-serving Members, many of whom are now pensioners. One such member is Mr. Charles Jones. FHC Board Secretary, Mrs. Leodis Douglas, brainchild of the programme, happily makes this presentation.

Outer Circle: FHC Supports Entrepreneurship - On August 25, 2017, the FHC Foundation hosted its annual Scholarship Awards Ceremony, where promising young entrepreneurs received grants. Sharing in this moment are, (l-r) Mr. Balvin Vanriel, Chairman of the Board; Omar O’Conner, Jalgae Aquaculture Farm; Ms. Roxann Linton, FHC’s CEO; Terence Thompson, Terangle Photography and Mr. O’Neil Grant, 1st Vice Chairman of the Board. FHC Life Charter in Action - Future FHC Y.O.U.T.H. saver, little Kalisa Kidd, gives a friendly wave, as the St. Thomas Branch Manager, Mrs. Almeta Johnson, happily embraces her. This moment was captured at one of our anniversary services, held at the Coke Methodist Church, Morant Bay. Team Member Engagement –Fun activities are designed to promote healthy relationships at work and play! One such event is Sports Day. Team members are seen here in a competitive game of netball. Look at our young men go! Maintaining our Bond – At our 5th Anniversary Service, held at the Beulah Moravian Church, Mandeville, we were joined by the Hon. Audley Shaw, Minister of Finance and Public Service. He paused to share lens with Mr. Balvin Vanriel, FHC’s Chairman of the Board and Ms. Roxann Linton, FHC’s Chief Executive Officer. Touching Lives – The Portmore Team engaged in a Corporate Social Responsibility activity called “Barrels of Love”, for the Portmore Self-Help Disability Fund. Receiving the food items is Ms. Bridget Johnson.

Page Vision, Mission Statements

Notice of Annual General Meeting and Agenda

Profile - First Heritage Co-operative Credit Union Limited

Products & Services

Minutes of the 5th Annual General Meeting

Board of Directors

Report of the Board of Directors

Executive Team

Management Discussion & Analysis

Report of the Treasurer

FINANCIAL STATEMENTS

Report of the Supervisory Committee

135

Report of the Credit Committee

138

Report of the Nominating Committee

140

Resolution for Rule Amendment

146

Pictorial Highlights of 2017

147

Report of the Delegates on JCCUL’s AGM

150

Branch Managers

155

Unit Managers

156

Parliamentary Rules of Order

157

160

Prayer of St. Francis of Assisi

161

Notes

162

Notice is hereby given that the 6th Annual General Meeting of the First Heritage Co-operative Credit Union Limited will be held on Thursday, May 10, 2018, at the Jamaica Conference Centre, 14-20 Port Royal Street, Kingston, beginning at 3 p.m. Registration commences at 2 p.m. All members are invited. ________________________ Leodis Douglas Secretary, Board of Directors

Ascertainment of Quorum Call to Order and Prayer Chairman’s Opening Remarks and Tributes Reading and Confirmation of the Minutes of the 5th Annual General Meeting held on Thursday, May 11, 2017 REPORTS: Board of Directors Management Treasurer and Auditor Credit Committee Supervisory Committee Resolution for Rule Amendment ELECTIONS: Nominating Committee Report Elections to: Board of Directors Credit Committee Supervisory Committee Any Other Business Vote of Thanks Termination 3

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 Cooperative 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). 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 as well as to manage the investments of the Parent Company. It is located at Suite 27, Winchester Business Centre, 15 Hope Road, Kingston 10. 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 • • • • •

Equities (local and foreign) Bonds (local and foreign) Mutual Funds Corporate Financing Money Market Instruments

Services • • •

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.

MINUTES OF MEETING FOR 5TH ANNUAL GENERAL MEETING OF THE FIRST HERITAGE CO-OPERATIVE CREDIT UNION LIMITED HELD ON THURSDAY, MAY 11, 2017 AT THE JAMAICA CONFERENCE CENTRE 14-20 PORT ROYAL STREET, KINGSTON 1. Ascertainment of Quorum & Call to Order The Chairman, Mr. Balvin Vanriel, confirmed that there was a quorum as there were 205 members registered. He called the meeting to order at 3p.m. and directed the members to the Parliamentary Rules set out on pages 76 to 78 of the Annual Report, which he said would guide the meeting. Mr. Vanriel then invited Mrs. Leodis Douglas, Secretary of the Board of Directors, to read the notice convening the meeting. 2. Invocation & National Anthem Miss Janyce Robinson, was called upon to pray, which was followed by the singing of the National Anthem. 3. Welcome and Opening Remarks The Chairman extended a warm welcome to members and guests in attendance. He recapped the history of the former GSB Co-operative Credit Union Limited (GSB) and Churches Co-operative Credit Union Limited (CCCU) which formed First Heritage Co-operative Credit Union on the 1st of August, 2012, and the addition of St. Thomas Co-operative Credit Union on the 1st of March, 2015. He extended gratitude to the former Chairman, Mr. Orville Hill, and the former Chief Executive Officer, Mr. Basil Naar, for their work and support over the years. He then introduced Ms. Roxann Linton, the newly appointed Chief Executive Officer. A moment of silence was observed for the members of the Credit Union who had passed away during the year. Mr. Vanriel directed the audience to the Register of Deaths on page 179 of the Annual Report, for the names of the deceased members. 11

The Chairman then introduced and acknowledged the presence of members of the Board of Directors; Mrs. Leodis Douglas, Board Secretary; Mr. O’Neil Grant, 1st Vice Chairman, Mr. Edmund Jones, 2nd Vice Chairman and SSP Michael James (Ret’d.), Director; members of the Credit Committee, Mrs. Althea Daley and Mr. Pete Nesbitt; followed by Supervisory Committee members Mrs. Beverley Williamson and Mrs. Camelle Ricketts-Moore. He introduced and acknowledged the Executive Management Team, Mrs. Maria Morrison, Chief Operating Officer; Mrs. Maxine Little-Dixon, General Manager, Finance and Treasury; Mrs. Jillian Gayle, General Manager, Human Resource Development; Mr. Quilston Harrison, General Manager, Credit Administration and Loan Risk; Mrs. Karlene Simpson, Assistant General Manager, Operations and Shared Services; Mr. Emil Williams, Assistant General Manager, Finance and Treasury; Mrs. Saint Beverley Tomlinson, Assistant General Manager, Retail Sales and Service and Miss Renè Gayle, Assistant General Manager, Legal Affairs. Our external Auditors KPMG, represented by Misses Cynthia Lawrence and Nadine Williams were also acknowledged. 4. Apologies for Absence Mrs. Leodis Douglas, Secretary, was asked to preside over this segment. Apologies for absence were tendered on behalf of the following: Mrs. Karla Stephens-Hall, Chairman of the Supervisory Committee; Mr. Patrick Burke, General Manager for FHC Investments Limited; Mr. Robin Levy, Treasurer of FHC; Mr. Richard Ranger, Chairman, Credit Committee; Mrs. Sonia McFarlane, Past President and Past Director; Mr. Christopher Samuda, former President and Chairman and Mr. Quinton Masters, Credit Committee member. The following specially invited guests were mentioned: Mr. Errol Gallimore, Registrar, Department of Co-operatives and Friendly Societies; Mr. Glenworth Francis, Jamaica Co-operative Credit Union League (JCCUL); Mr. Winston Fletcher, President, JCCUL; Ambassador Aloun N’Dombe Assamba, Chief Executive Officer, COK Sodality Co-operative Credit Union; Mr. Barrington White, former General Manager, C&WJ Co-operative Credit Union; Mrs. Susan Thompson, Chief Operating Officer, JCCUL; Miss Phillipa Beckford, CUNA Caribbean Insurance Jamaica Limited; Miss Claudette Christie, 12

Communications and Advocacy Manager, JCCUL; Mr. Albert Smith, General Manager, NUCS; Mr. Nigel Chambers, KPMG Chartered Accountants; Miss Nadine Williams, Director, KPMG Chartered Accountants and Miss Vera Lindo, Business Relationship Manager, JCCUL. 5. Reading and Confirmation of the Minutes of the 4th Annual General Meeting held on the 12th of May, 2016. Senior Bishop Major Garnett Kildare moved a motion that the Minutes be taken as read. This was seconded by Mrs. Althea Daley. Corrections: Page 12; 4th paragraph, Ornell Bedassi should read Ornell Bedasse Page 18; 4th paragraph, ‘Miss Colleen Ricketts-Moore’ should read ‘Mrs. Camelle Ricketts-Moore’ Page 19; 4th paragraph, delete “Banking Machine” from “ATM Banking Machine” Page 20; 2nd paragraph, should read “This increased provision…” Page 23; 4th line, ‘Esre’, should read ‘Asre’ Page 25; last paragraph, (Line 5) ‘team’ should read ‘Committee’. Page 27; Mr. Noel Francis was elected to serve his 1st term not “another” term. There were no corrections for the reconvened meeting. The Minutes were confirmed on a motion raised by Mr. Michael Edmundson and seconded by Miss Janyce Robinson. 6. Matters Arising Mrs. Althea Daley queried the status of the partnerships with ICWI and Sagicor as well as the GOJ Ministry of Agriculture as mentioned by Mr. Basil Naar on Page 17 of the Annual Report. The Chairman responded that to date, nothing had materialised where that project was concerned. 13

7. Board of Directors’ Report The Board of Directors’ Report was taken as read on a motion moved by Senior Bishop Major Garnett Kildare, seconded by Mr. Earl White. The Chairman noted a number of challenges faced by the Credit Union during 2016 which severely impacted its bottom line. Factors such as: the competitive environment in which the entity operated; interest rates falling to an all-time low; the aggressiveness of the loan sharks; redundancies; and some members moving their business to other financial institutions despite the efforts to retain their business. Hence, the current slogan “Come Back Home.” He mentioned that the competitive interest rate environment not only presented challenges for the Credit Union, but it was experienced by almost all players in the financial sector. The micro and macro economies showed signs of improvement with lowering of interest rates internationally and locally, resulting in marginal increases in business activities as consumers took advantage of the opportunities to borrow even as the growth signs showed slight increases. The country, he stated, experienced a single digit inflation rate of just about 1.7%, which was the lowest it had been in four decades, compared to the 3.7% reported at the end of 2015. The NIR closed the year at US$2,719M, compared to US$2,437M at the end of 2015. Regarding the Bank of Jamaica Regulations, he outlined that while the discussion was continuing, the Credit Union was making every effort to be fully compliant before the Regulations become effective. The Credit Union, he stated was committed to establishing an organizational culture that would ensure that risk management was embedded in the activities and business processes of FHC. In relation to Corporate Governance, the Credit Union had training throughout 2016, developed a Corporate Governance Policy, a Board Charter, Terms of Reference for the Board and the sub-committees. He pointed out that in prior years, the Annual Report would display only the names of the Board of Directors, but going forward there would be a paragraph detailing the responsibilities of each Director. The high delinquency rate for 2016, he pointed out, resulted in loan losses that 14

were higher than the expected loan loss provision, but that the 2017 results were showing signs of improvement. He urged members who had outstanding loan payments to come in and speak with management. The micro and small business portfolio continued to experience problems, however, there were significant signs of improvement in the first quarter of 2017. The Group assets stood at $10.2B as at December 2016. The Chairman pointed out that the Credit Union continued to work on its accumulated deficit which currently stood at approximately $275M as at December 2016. The capital adequacy ratio, he stated, had improved. Initially, there were some challenges due to the merger, but the Jamaica Cooperative Credit Union League met with the Bank of Jamaica and the Institute of Chartered Accountants Standards Committee and agreed that there was an element of the business combination that would be treated as capital, which resulted in the capital ratio being above the regulatory requirement. FHC Investments Limited’s portfolio under management grew by 43% year over year, and the performance of the Subsidiary ended with an after tax profit of $19.2M for the 2016 period. As it related to the Retirement Scheme, the net assets available for benefits grew by 21%, moving from $632.5M to $764.9M at the end of 2016. He reported that the FHC Foundation made donations to the tune of $2,710,000. The Credit Union continued to tailor its products and services to meet the growing needs of its members as it was committed to its mission to be a worldclass financial institution as we strive to remain globally competitive in the 21st Century. The Chairman ended the report by extending special thanks to the members for their continued support. He also extended gratitude to the Department of Cooperatives and Friendly Societies, the Jamaica Co-operative Credit Union League, the auditors KPMG, business partners and team members. He stated that the Credit Union was looking forward to their continued support as we work together to make FHC and its Subsidiary an even stronger financial institution for all its members. 15

The floor was then open for questions or concerns. Mr. Lloyd Bennett queried whether the Credit Union had a specific outreach programme to guide persons who were approaching retirement. The Chairman stated that such a programme was not in existence, but they always encourage members to speak with a pension advisor. Mr. Fuller requested information regarding the composition of the Risk Management Committee and to whom it reported. He was informed by the Chief Operating Officer, Mrs. Maria Morrison, that it was a sub-committee of the Board and the Chairman of that Committee reported to the Board. Concerns about the computer system and the efficacy of the staff were raised by Mr. Michael Burke. Mr. Christopher Thomas asked what the Credit Union was doing to garner some of the business that would be coming from the positive economic climate being experienced. In answering, the Chairman stated that the team members were constantly working to maintain their presence in the field. The CEO, Ms. Linton, gave further details as to the approach being taken by the FHCIL team where marketing and business development were concerned. Members fielding personal questions were directed to speak to the management. The Report of the Board of Directors was accepted on a motion moved by Miss Carlett Francis, seconded by Miss Veronica Haughton Campbell. The Chairman acknowledged the presence of Mr. Johnathan Brown, former President of the JCCUL and former Director of Churches Credit Union and First Heritage Credit Union; Mr. Robert Kerr of JCCUL; Mrs. Georgia Morrison, Credit Union Fund Management Company Limited and Ms. Vinette Gregory, Mr. Clifton Freeburn and Miss Blake all from the Department of Co-operatives & Friendly Societies. Mr. Balvin Vanriel then invited Ms. Roxann Linton, Chief Executive Officer, to present the Management Report. 8. The Management Report The Management Report was taken as read on a motion moved by Mr. Byron 16

Brown, seconded by Mrs. Althea Daley. Ms. Linton spoke of the vision she had for the Credit Union, that of a strong family unit, which would serve its members dutifully by listening to and understanding their needs and developing solutions to meet those needs. She stated that during the year they sought to develop new products and services such as the Golden Educator, an excellent product geared towards assisting members to prepare early for their children’s education, and the Deferred Shares, a long-term investment which was issued in February of 2016. She mentioned the various training initiatives that took place during the period which saw team members being trained in over 300 different courses, including Customer Service. Also developed was a robust reward and recognition programme for the team members and earlier in the year 2017, there was a Blast Off event put on where a number of team members were recognised for various accomplishments across the organisation. Several risk management activities took place during the period under review. The meeting was informed that investments were made in technology as it related to improving the debit card network and improving our risk management, especially where fraud risk management was concerned. There were a number of donations and sponsorships made during the period chiefly geared towards the development of youth, such as the Financial Literacy Programme, and the National Reading Initiative Programme. Sponsorships were also made to the Rebirth Project and the Jamaica Civil Service Association (JCSA). The focus for 2017 would be on the transformation of FHC, improving member and team member satisfaction, improving the overall net surplus position as well as the delinquency percentage. She highlighted the following key components of the Credit Union’s strategic plan: •

Strong focus on the members with the new maxim ‘Member at the Centre’ 17

•

Efficient and effective delivery of products and services

•

Focus on strategies to enhance the team

•

Build cost awareness

•

Ensure readiness for regulatory compliance with BOJ

She stated that the Credit Union was trying to engage its key affiliations and stakeholder groups, thus the successful launch of the Cash in a Flash product. She reported that FHC reignited its relationship with the Jamaica Government Pensioners Association. Additionally, the dormant fees were removed as the Credit Union listened to the members and took the appropriate actions. She concluded her report by announcing the Summer Loan Sale Bonanza and giving the reassurance that the Credit Union was committed to serving its members. She implored those present to spread the news of change and transformation. The floor was then open for questions. Mr. Johnathan Brown congratulated Ms. Linton on the presentation of her Report and acknowledged that he had gained some insight in what she had done and intended to do in her role. He, however, stated that the Credit Union was part of the family of credit unions, and therefore the “Hands and Globe” symbol should be displayed on its documents. Ms. Linton stated that it appeared on most pages but assured him that going forward it would be consistent throughout the document. Mr. Michael Burke expressed concerns regarding the lack of communication pertaining to the announcement of the town hall meetings that were being held and questioned whether notification was sent to selective members. He was reassured by the CEO that this was not the case. He further bemoaned the fact that the Credit Union no longer resembled the strong family unit that it once was and outlined several strategies which the Credit Union could adopt in order to achieve this position once again. Mr. Clarence Irving enquired why there was a $300 withdrawal fee on Shares and another $60 charge on debit card transactions, and argued that this was 18

done without informing the members of the Credit Union. Mrs. Karlene Simpson, AGM, Operations and Shared Services, explained that the fee was applied only if the amount being withdrawn in-branch was less than the stipulated amount that one could get at the ATM. She further explained that the motive behind this move was to encourage persons to utilize the ATM facilities instead of coming into the branches for transactions that can be completed by the ATM. She also stated that the Share Loan had been around for some time and that the $300 was the processing fee. She further advised that the fees were displayed in the lobby at all locations and on the Credit Union’s website. Senior Bishop Major Garnett Kildare asked for a more detailed explanation of the strategies that the Credit Union intended to put in place in order to engage the members. He also suggested that the logo for the Credit Union Movement be placed strategically on the next Annual Report booklet and the symbolic meaning be explained to the members. He then congratulated the Credit Union on the early distribution of the Annual Report booklets. Ms. Linton added that the Credit Union was conducting various informal focus groups in order to get a better understanding of the concerns of the members and that one such focus group was conducted a week ago. From these focus groups the apprehensions of the members would be documented and an action plan devised and implemented. Mr. Rupert Brown shared the frustrations he was having with the small staff complement which often times led to a slow pace in completing transactions at the Eureka office. Ms. Linton assured him that efforts would be made to increase manpower at the office, especially during peak hours. Mr. Errol Scott commented on the $100 maintenance fee charged to members’ accounts monthly. Ms. Linton replied that management would be reviewing the fee structure to ensure that it was reasonable. Mr. Scott suggested that town hall meetings be held in Portmore as well, but Miss Linton stated that there was a cost constraint, so management would look into the possibility of conducting more local meetings. The Management Report was accepted on a motion raised by Miss Shirley Anderson and seconded by Mr. A. N. Harris, Esq.

The Chairman then invited representatives of KPMG to present the Auditors’ Report to be followed by the Treasurer’s Report. 9. Auditors’ Report Miss Nadine Williams, Engagement Director of KPMG, in the interest of time, presented the highlights of the report and directed the members to the full report starting at page 72 in the Annual Report. She stated that the auditors had audited the separate financial statements of First Heritage Co-operative Credit Union Limited along with the consolidated financial statements of the Credit Union and its subsidiary (the Group) and that the accompanying separate and consolidated financial statements gave a true and fair view of the financial position of the Credit Union’s performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS) and the Co-operative Societies Act. The audit, she stated, was conducted in accordance with International Standards on Auditing (ISA). She also reported that proper accounting records were maintained and the separate and consolidated financial statements, which were in agreement therewith were correct, duly vouched, and in accordance with the provisions of the Co-operative Societies Act. The Auditors’ Report was accepted on a motion moved by Senior Bishop Major Garnett Kildare, seconded by Mr. Stanford Riley. 10. Treasurer’s Report The Acting Treasurer, Mr. Kevin Forbes, gave highlights of the financial performance for the year 2016. He highlighted that the Credit Union made a deficit of $58M in 2016, compared to a Net Surplus in 2015 of $59M. The major factor contributing to the decline was the reduction in loan income which fell by $154M, due mainly to the reduction in loan disbursements. There were challenges as it related to the collection of Past Due Loans, which moved from 13.6% up to 14.9% and which was above the PEARLS Standards. Liquidity at the end of 2016 stood at 29.7%, a 31% increase, which was in line with the Credit Union’s regulatory requirements. 20

The Credit Union continued its efforts to refrain from increasing fees with the exception of the maintenance fee. The Credit Union continued to work assiduously at implementing all the necessary procedures and policies needed to ensure that the entity was fully compliant with the BOJ. Total assets increased marginally by 0.4%, likewise deposits, although there had been a fall in the loan disbursements. The prudential ratios, he reported, were all heading in the right direction and performing well. Delinquency remained a challenge although there had been a slight decrease in the ratio. In concluding, Mr. Forbes stated that though 2016 was a very challenging year, he was confident that the results for 2017 would improve as several initiatives had been put in place which had begun to bear fruit. For the first quarter ended March 31, the Credit Union was in a profitable position, and loan disbursements and pay-outs were gradually increasing which was a testament to the commitment of the Management team to ensuring that at the end of the day the members get the best possible returns. Mr. Johnathan Brown congratulated Mr. Forbes on the way he presented the report. He reiterated his suggestion that a page be placed in the booklet which clearly depicts the total amount borrowed by members and the value of the interest paid out as he requested some years ago. He enquired about the $21M ‘Termination Cost’, which moved from $6M the previous year to $21M. Mrs. LittleDixon explained that the $21M included some retirement cost for the retired CEO along with termination costs for two divisions as a result of the restructuring exercise. Mr. Everton Bailey queried the 100% loan provision that was made and asked whether the mechanism to write off bad debts was inappropriate. Mr. Forbes stated that the Credit Union was working to address its operational issues and financial structure. Mr. Anthony Simms, voiced his concern that the Credit Union did not provide 21

mobile loans like those offered by some of its competitor, and asked the Board to look into the matter as mobile sellers had the potential to earn and save more than stationary sellers. Mrs. Faith McDonald passionately declared that the Credit Union had lost a lot of civil servants and enquired about the efforts being made to persuade civil servants to re-join the organisation. Ms. Linton admitted that the Credit Union was aware of some of the concerns that civil servants had and pointed out that this was one of the reasons the Credit Union was embracing the ‘come back home’ maxim and assured her that going forward the Credit Union would be very visible in the ministries. The Treasurer’s Report was accepted on a motion raised by Senior Bishop Major Garnett Kildare and seconded by Mr. Johnathan Brown. 11. Credit Committee Report The Credit Committee Report which was presented by Mrs. Althea Daley was taken as read on a motion raised by Mr. Michael Edmundson, and seconded by Mr. Stennett McLean. Mrs. Daley reported that the Credit Union faced challenges in 2016 which were induced by the continued harsh economic climate, fierce competition in the financial sector, and the high past due rates. This was exacerbated by loss of jobs suffered by members. She pointed out that there was a significant past due ratio where the micro loans were concerned, thus the policies and procedures were reviewed and the unit was restructured and had now begun to show signs of improvement. The report was accepted on a motion raised by Mr. Christopher Thomas, seconded by Mr. Carl Windham. 12. Supervisory Committee Report The Report was presented by Mrs. Beverley Williamson who deputized for the Chairperson, Mrs. Karla Stephens-Hall. It was taken as read on a motion raised by Miss Taneisha Cain seconded by Miss Norma Bernard-Powell. Mrs. Williamson stated that it was a requirement of the governance structure of the Credit Union that a Supervisory Committee be in place, thus five persons 22

were elected last May at the AGM as identified on page 152 of the Annual Report to sit on this Committee. She informed the meeting that 11 meetings were held for the period and directed members’ attention to the attendance record on page 153 of the Annual Report. She reported that of the audit plan prepared by the Audit Department, only 60% was achieved mainly because time was allocated to respond to specific requests from Management to carry out special investigations. She also conveyed that approximately 80% of the recommendations, including the preparation of the respective policies and procedures were approved by the Board and had since been implemented. She indicated that the suggestion box had not yet yielded any results to date and urged members to drop any complaints they have in the suggestion box. In concluding, Mrs. Williamson expressed gratitude for the opportunity given to serve the Credit Union and thanked the members, management, and members of staff, particularly the Internal Audit Department, for their cooperation. Mr. A.N. Harris, Esq. asked whether the 40% of the audit plan that was yet to be completed would be accounted for in next year’s Annual Report. Mrs. Williamson assured him that this would be done. Mr. Christopher Thomas expressed apprehension about the audit plan being incomplete as he deemed it to be of significance. Mrs. Williamson reiterated that this was due to several special investigations that had to be carried out. Mrs. Camelle Ricketts-Moore, a member of the Committee, explained further that the special investigations were at Management’s request and if left undone could critically affect the Credit Union. The report was accepted on a motion raised by Mrs. Althea Daley, seconded by Mrs. Jacqueline Pingue-Smith. 13. Nominating Committee Report Mrs. Leodis Douglas, Chairperson of the Nominating Committee, was invited to present her report. The Nominating Committee Report was taken as read on a motion raised by Mr. Michael Edmunson, seconded by Miss Lorna Taylor. Mrs. Douglas referred the meeting to pages 158–164 of the Annual Report and 23

listed the other members of the Committee as Ms. Patricia Ramsaran and Ms. Roxann Linton. She advised the meeting that the Committee met to consider members to serve as volunteers on the Board and the various committees for the year 2016-2017 and the following recommendations were made: Board of Directors: RETIRING Mr. O’Neil Grant Mr. Edmund Jones Mr. Kevin Forbes Mrs. Tamara Francis Riley-Dunn SSP Michael James

RECOMMENDED TERM IN OFFICE Mr. O’Neil Grant 2 Mr. Edmund Jones 2 Mr. Kevin Forbes 2 Mrs. Tamara Francis Riley-Dunn 2 SSP Michael James 2

Supervisory Committee: RETIRING Mrs. Karla Stephens-Hall Mrs. Beverley Williamson Mr. Luke McIntosh Mrs. Camelle Ricketts-Moore Mr. Lascelles Ellis

RECOMMENDED Mrs. Karla Stephens-Hall Mrs. Beverley Williamson Mr. Luke McIntosh Mrs. Camelle Ricketts-Moore Mr. Lascelles Ellis

TERM IN OFFICE 1 1 1 1 1

RECOMMENDED Mr. Richard Ranger Miss Janyce Robinson Mr. Stennett McLean

TERM IN OFFICE 2 2 1

Credit Committee: RETIRING Mr. Richard Ranger Mr. Quinton Masters Mr. Stennett McLean

It was noted that Mr. Quinton Masters would not be available to serve for another term. Appreciation was expressed to Mr. Masters for his invaluable contribution to the Credit Union. Mrs. Douglas indicated that profiles of all nominees for the Board of Directors, and the Supervisory and Credit Committees could be found on pages 159 – 164 of the Annual Report. Mr. Michael Burke queried whether any of the nominees were on the delinquent list, to which Mrs. Douglas responded in the negative. 24

14. Election of Officers Mrs. Douglas invited the representative from the Department of Co-operative Societies, Mr. Clifton Freeburn, to conduct the election of officers. There were no other nominations tendered for the Board of Directors and as such Mr. O’Neil Grant, Mr. Edmund Jones, Mr. Kevin Forbes, Mrs. Tamara Francis Riley-Dunn and SSP Michael James were duly elected to the Board of Directors for a term of two years. This was approved on a motion moved by Ms. Nadine Loague-Clarke, seconded by Mr. Stanford Riley. There were no other nominations tendered for the Supervisory Committee; as such Mrs. Karla Stephens-Hall, Mrs. Beverley Williamson, Mr. Luke McIntosh, Mrs. Camelle Ricketts-Moore and Mr. Lascelles Ellis were duly elected to the Supervisory Committee for a term of one year. This was approved on a motion moved by Mr. Carl Wingham, seconded by Mr. A. N. Harris, Esq. There were no other nominations tendered for the Credit Committee; as such Mr. Richard Ranger and Miss Janyce Robinson were nominated for two years and Mr. Stennett McLean for one year. This was accepted on a motion raised by Miss Taneisha Cain and seconded by Miss Winsome Greaves. Mr. Freeburn congratulated and wished success upon the persons who were elected to serve on the various committees. He reminded everyone that these committees were to meet within ten days to elect the officers, as the Rules require. On a motion raised by Mr. Johnathan Brown, seconded by Mrs. Althea Daley, the meeting gave the authority to the Board to select the Delegates and Alternate Delegates to the League. 15. Maximum Liability Mr. Kevin Forbes, Acting Treasurer, asked for a motion to be moved and seconded that the maximum liability be set at 20 times the Credit Union’s capital base. This was approved on a motion raised by Miss Stacy Marsh, seconded by Miss Verese Campbell.

16. Any Other Business Mr. Michael Burke thanked the delegates to the League for putting in their report, noting that some other credit unions failed to do so. He expressed displeasure with the fact that the League’s AGM had to be rescheduled at the last minute when the resources of the credit unions were already spent. He stated that whilst he did not intend to move a resolution at this meeting, he felt the need to declare his displeasure and have it placed on the record. The meeting then engaged in various giveaway activities. The winners were announced and prizes collected. The floor was then open for questions or comments from the audience. Senior Bishop Major Garnett Kildare congratulated the persons who previously served and lauded their attendance to meetings. He singled out Directors SSP Michael James (Ret’d), Mr. Edmund Jones and Secretary, Leodis Douglas for their exemplary attendance. 17. Vote of Thanks The Chairman thanked all the members for coming and thanked the Credit and Supervisory Committees for their work and wished for everyone a safe journey home. 18. Termination The meeting terminated at 6:28 p.m.

________________________ Leodis Douglas Secretary, Board of Directors

Report of the Board Of Directors he year 2017 was an important one for the Credit Union movement as it celebrated 75 years in Jamaica; a remarkable milestone. First Heritage Co-operative Credit Union Limited (FHC) also celebrated a milestone, its 5th Anniversary as a merged entity. The year provided several opportunities through celebratory events to reflect on the credit union history and contribution over the years.

In the macro economic environment, the overall policy direction was to support a growth agenda. The government increased the income tax threshold to $1.5 million in April 2017, providing greater disposable income. The Statistical Institute of Jamaica reported a reduction in the unemployment rate by 1.5%. This policy direction influenced a positive forecast for the Credit Union’s business strategy. Due to this, many of our members, including civil servants would have seen an increase in their income and we offered attractive deposit and loan products to further empower them financially, thereby growing the organization. Operationally, the year 2017 was a point of inflection for FHC as it was recognized that change was needed. The new Chief Executive Officer, Ms. Roxann Linton, took the helm of the institution in January and implemented several growth strategies to effect a turnaround of the performance of the Credit Union. Through cohesive, collective effort there was improvement in the financial performance of the Credit Union, with the year ending in a surplus position and growth in assets and liabilities. Special commendation must be made to the leadership and team members who strategised and executed to achieve this level of performance. FINANCIAL PERFORMANCE The company is pleased with its performance for the year ended 31 December 2017 with surplus of $100.02 million compared to a deficit of $58.65 million in prior year; Credit Union asset base of $10.96 billion; liquidity reserve requirement of 13.81% compared to the JCCUL benchmark rate of 10%. We have seen continuous growth in our deposit and asset portfolios and have modified our loan products to meet our members’ needs. In addition, the company experienced during the first half of 2017 the highest level of loan disbursements in recent years. As the business aligns itself to meet the productivity and liquidity ratios for the impending Bank of Jamaica regulations, the credit union implemented several cost-cutting measures. A new retail business model was introduced in January 2017, known as the Sales and Service Improvement Initiative; the strategic objective is to identify the member’s needs and respond with product solutions as opposed to a general product push. This strategy has resulted in the growth of the company’s bottom-line for the financial year. Key strategies around Member Engagement and Team Member Engagement were established. Throughout the year numerous Town Hall Meetings were held as we sought to share with you as well as to hear from you. This dialogue worked well as we were able to reenergize the membership. Numerous church services were also held as we continued to seek 29

direction and to further connect ourselves with communities. Another critical activity was to engage our staff through numerous activities as we sought to hear from them too. All of these engagement activities worked well as we started to see positive changes. Strategic Vision The Board, Committees, Executives and a number of Branch Managers participated in the 2017 Strategic Planning Retreat. This activity was successful as a shared vision was crafted for the Credit Union for a 20 year horizon. The vision encapsulated FHC being a strong and leading Credit Union, with an engaged cadre of team members, leveraging technology to fulfil the needs of its members. A three-year strategy was outlined in the Strategy Map which pulled together a single, cohesive plan with the best ideas for accomplishing the targets laid out. Several important decisions were made regarding the future of the organization, and the most important activities required to achieve them. As financial institutions must increasingly embrace innovation and deliver services to more discerning consumers, it behooves the Credit Union to remain committed to its mission to be a world-class financial institution as it strives to remain competitive and relevant. OUR SUBSIDIARY FHC Investments Limited (FHCIL) The past year was characterized by continued low interest rates, an advancing local equity market albeit with volatility and relatively stable oil prices. Towards the latter part of the year, there was a huge resurgence of the Jamaican dollar against the currencies of its major trading partners. All of these factors, but especially the latter contributed to a growth in funds under management to $4.6 billion representing a 9.5% growth year over year with a net profit before tax of $0.5 million. As Pension Administrators and Investment Managers, FHCIL continues to assist individuals to make their financial preparations for retirement. It was another remarkable year for the Churches Co-operative Credit Union Retirement Scheme. The unaudited results were as follows: Total Net Assets available for benefits as at the end of the year was $970.7million. This represents a growth of 25.7% or $198.7 million for the year. New members for the period totaled 229; this brought the total membership at the end of the year to 4,465. Member contributions for the year totaled $96.7 million; a 1.2% increase over the previous year. Interest and other income earned by the Scheme during 2017 was $163.4 million. This represents a 134.8% increase when compared to $69.6 million earned during 2016. The net yield on Net Assets available for benefits for the year was 17.9%. The net yield outperformed the 2017 inflation rate of 5.3%. With the percentage of employees in Jamaica with a pension plan still below 10%, we are anticipating another great year for the Retirement Scheme. As we move forward in 2018, we will continue to diversify our revenue streams to make the 30

company more resilient to market shocks and volatilities. We will be launching our Managed Fund as well as continuing our drive to provide funding and investment solutions for small and medium sized businesses. Overall, we expect global growth to be weaker with emerging markets and developing economies likely to be major contributors. In large emerging economies such as Mexico, Chile, Peru and Brazil, eminent elections in 2018 has weighed on forecasts. The Caribbean region is expected to continue to face challenges in growing their economies against the background of high external and fiscal deficits and financial vulnerabilities. However, we anticipate a great performance despite the possible impending outlook. FHC FOUNDATION Throughout the year 2017, the FHC Foundation focused on youth development and education. At a time when the Jamaican youth population and the education sector needs all the support from the private sector; our mandate is to assist in reducing the “burden” on the nation’s purse and enhance the lives of many. The FHC Foundation donated the sum of $2,383,000 towards GSAT Scholarships, Tertiary Scholarships and the Entrepreneurship Awards Programme. Our first fundraising activity was a benefit performance of the University Singers in Concert. This was held on Saturday, June 1, 2017, at the Philip Sherlock Centre for the Creative Arts and was a success. The Board of Directors would like to express gratitude to all our members and stakeholders who remain loyal to the Credit Union. We can justly say that we have withstood the challenges faced and have improved our financial position for 2017 and will continue to do so in 2018.

________________________ Balvin Vanriel Chairman, Board of Directors

ATTENDANCE AT BOARD OF DIRECTORS MEETINGS NAME

POSITION

SCHEDULED

ATTENDED

EXCUSED

Balvin Vanriel

Chairman

O’Neil Grant

1st Vice Chairman

Edmund Jones

2nd Vice Chairman

Kevin Forbes

Treasurer

SSP Michael James

Assistant Treasurer

Leodis Douglas

Secretary

Noel Francis

Assistant Secretary

Tamara Francis Riley-Dunn

Director

* Mrs. Tamara Francis Riley-Dunn was on Maternity Leave.

Management Discussion & Analysis The year 2017 was an inflection point for First Heritage Cooperative Credit Union Limited; a year within which doing things differently was an imperative. The Management Team was cognizant that changes were needed in order to effect a turnaround in the performance of the Credit Union and consequently engaged in focused execution of a number of strategies to generate improved results. The pivotal strategies of focus related to heightened member engagement, increased team member engagement, improved credit underwriting and pastdue loans collections and increased compliance focus. The report below provides a snapshot of the financial performance and highlights of some of the activities pursued during 2017 to improve the Credit Union’s performance. FINANCIAL PERFORMANCE We are encouraged by the 2017 surplus of $100.02 million, which represented a 271% improvement over the previous year’s deficit. This contributed significantly to the reduction in the accumulated deficit by $85.3 million; moving from $275 million at the start of the year to $189.7 million as at December 31, 2017. A refocused strategic approach targeting sales production and engaging our members and other constituents, lead to record high loan balances of $7 billion (12.94% increase over 2016). Also, in 2017, we had record disbursements with eight (8) consecutive months of above $300 million; another first in our history. This performance is significant when placed in the context of increased competition and reducing interest rates, both challenging to the growth of our loan portfolio and resulting Interest Income revenue. Buoyed by our performances in our core assets and loans, total assets increased to $10.96 billion. Funding was provided through members’ deposits and this increased by over 8.21% bringing the total members deposit to $8.44 billion. Going forward we will continue to focus on maximizing the performance of our core business while managing our cost structure with a view of erasing in short order the remaining accumulated deficit and to provide a reasonable return to our members. HUMAN RESOURCE DEVELOPMENT Management focused on harnessing the efforts of team members through the execution of activities to increase team member engagement and team member welfare. Team member engagement activities included more focus on training and development, reward and recognition and team building.

Team Member Engagement Strategy a. Training and Development Interventions • Sales & Service Training Our Sales and Service Improvement Initiative (SSII) is a new programme that was introduced in 2017, geared towards structuring and improving the Credit Union’s selling approach, improving sales growth, increasing productivity and member service efficiency. Forty five (45) team members were trained in the first instance, and a refresher training was conducted six months after its implementation. The second phase of this Initiative which will focus on Member Service will be executed in 2018. • Leadership Development Workshop During the year, a Leadership Development Workshop was held for all management-level team members. This workshop included Behavioural Analysis, which serves as a guide to the leaders of the Credit Union to develop their leadership and team building skills, by being better able to identify and understand how their individual personality/behavioural styles impact and complement not just those of the leadership team, but also the team members they lead. Going forward, ongoing related support and coaching will be provided for all Managers. • Centre for Professional Development Web-based (CPD Online) Training Consistent with the continuous learning culture, we continued to utilize our web-based training facility (CPD Online) which allows our team members to gain access to over 300 credit union based courses. During the year, a total of 4,485 activities combined inclusive of exams and courses, were completed by team members, which accounts for over 2,502 hours of training. b. Reward & Recognition In fulfilling our Mission Statement of “creating opportunities that will motivate team members”; during the Year 2017 our team members were awarded for their performance, through our Annual and Quarterly Award programmes. There were also new awards created and implemented, during the year, for the Sales Team members under our SSII Programme. c. Team Building Activities We increased the number of team member engagement activities during the year, which strengthened the camaraderie among team members. Among these initiatives were our Theme Fridays such as “Ole School Dress Day” and “Hat & Tie Day”. Parties such as 2-4-6 Fridayz, Ole School Dress Day After Work Party, Sports Club Movie Nights and Appreciation Parties. In 2018, we will be enhancing our team member engagement, through the development and implementation of the FHC Team Member Engagement Programme. Team Member Welfare Strategy a) Investment in Team Members Despite the financial challenges experienced in 2016, the Management, seeing the need for improvement in certain compensation and benefits to team members, made a bold statement by prioritizing the expenditure required to effect the improvement of some of these compensation/benefits to team members. Some improvements were made in the following areas: 35

• Commencement of action on recommendations from Job Evaluation/Reclassification & Compensation Exercise. In 2017, fifty four (54) team members benefitted from the partial adjustment to salaries based on recommendations resulting from a Job Evaluation/Reclassification & Compensation Exercise which was conducted during 2016. Full execution will ensue in 2018 and onwards. • Absorption by the Credit Union of newly applied General Consumption Tax (GCT) on Group Health Insurance premiums. During the year, the Government applied GCT to Group Health Insurance premiums, despite this being an unplanned expenditure, the Management decided to absorb the full cost of this tax, on behalf of our team members. • Salary and Benefits for 2017/2018 & Improvement in Team Members’ Loan Benefits As a result of good partnership with Delegates and Union Representatives, the Management was able to sign off on salary and benefits increases for the years 2017 & 2018. Also, increases were negotiated and approved for non-unionised team members. There were also significant improvement in the Staff Loan Facility for all team members, (amendments to be implemented January 2018).

b) Team Member Wellness Programme During the year, we had continuous promotion of activities/initiatives to promote Health & Wellness, through dissemination of information on nutrition, aerobics, self-defense classes and other physical exercises, thus promoting work-life balance. RETAIL SALES & SERVICE During 2017 the Retail Sales and Service Division was refocused in order to harness the efforts of the Branches to better serve the needs of our members. We embarked on various strategies designed to bring even greater value to our members, to ensure that their needs and expectations would be surpassed. The primary strategy executed was the organisation and development of a cadre of team members who would focus on identifying and fulfilling the financial needs of our members. On February 13, 2017, the transformation to a structured sales force began. The training of our first batch of forty five (45) sales team members was accomplished, introducing standardised structures, systems, disciplines and routines as follows: • Improved Selling Approach • Performance Management to ensure team member productivity and greater member penetration rates and service efficiency Full implementation was achieved across the network by May 2017. Increased productivity was recorded in all units with all nine (9) branches consistently achieving 100% of loan target and in May 2017 the 100% Club was formed. This resulted in the collective performance of 36

the branches and Micro & Small Business Unit recording the highest achievement in loan disbursement in recent years; actual disbursements for the year 2017 totalled $3.51 billion vs a target of $3.23 billion. During the year, the following growth strategies were pursued through collaboration with support functions which contributed to the Credit Union’s performance: • Revamping of Liaison Officers Programme • Aggressive penetration of the Public Sector • Engagement of high net worth members • Increased Brand awareness of the Micro & Small Business Loans Unit In addition, we relentlessly worked with team members to reinforce the importance of excellent service delivery and the positive impact it can have on them and the Credit Union. MARKETING & COMMUNICATIONS During 2017, the efforts of the Marketing & Communications Unit were focused on enabling the retail network to meet the needs of the members through effective promotion, brand awareness and enhancing products and services. During the same period, the financial services industry displayed heightened competition resulting in a buyers’ domain. As a result, we employed various tactics to influence member behavior towards the Credit Union. We were very creative in crafting promotions and product enhancement as we realized that consumers’ preferences expanded from interest rates to include product features, such as moratoria on payments, discounts on fees and insurance, optimal financing, longer repayment amongst other tangible concessions. Our message was strong and consistent; excellent member service beyond the members’ expectations. The brand message designed was “Member at the Centre”; this encapsulates the vision that the members should be at the forefront of every decision-making process in the short, medium and long term. The strategic focus areas enlivened by creative Marketing and Communication strategies, included member engagement, product enhancements and promotions, and corporate social responsibility. MEMBER ENGAGEMENT STRATEGIES Town Hall Meetings The main objectives of hosting a series of town hall meetings were to introduce our new Chief Executive Officer and to engage the members to reconnect and obtain their feedback. These meetings were held in Kingston, Morant Bay, Mandeville and Montego Bay. Fifth Anniversary Celebrations We celebrated five years since the merger of the former Churches and G.S.B Co-operative Credit Unions in August 2012. The theme “Embracing, Envisioning, Engaging” was conceptualized for the fifth anniversary celebrations. Based on the ethos of the former Credit Unions, church services were held at founder and affiliate denominations in six regions. 37

Church services were hosted at the Lyndhurst Methodist in Kingston, New Beulah Moravian in Manchester, St. Gabriel’s Anglican in May Pen, the Coke Methodist in St. Thomas, Rosemount Missionary in St. James and The Family of God Seventh Day Adventist in St. Catherine. As a special anniversary offering, a promotional deposit product was designed for the membership with an attractive interest rate. A corporate feature was published in the Sunday Gleaner commemorating all the activities with mementos over the five year period. A newsletter was also created to highlight the Credit Unions activities and was shared with the membership. The final celebratory event, the FHC Christmas Carol Service, was hosted at the St. Luke’s Anglican Church, Cross Roads on December 14, 2017. It was a joyous occasion as FHC celebrated the Yuletide Season with its members. Courtesy Call on the Finance Minister Ms. Linton and other Executives made a courtesy call on the Minister of Finance and Public Service, the Hon. Audley Shaw, in October 2017. Discussions were held around the need to facilitate greater access to more affordable and flexible financing for Jamaica’s productive sectors among other matters including opportunities for economic growth, public sector transformation and the evolving role of financial institutions. Financial Literacy Awareness Month Annually, Jamaica Co-operative Credit Union League (JCCUL) celebrates Financial Awareness month in April. FHC’s initiative targeted the high schools through a seminar hosted at the Training Centre, Kingston Gardens, under the theme “Creating Wealth Early”. Sixty six (66) students from Ascot and Merl Grove High Schools and their Form teachers were trained in money management techniques. The day’s activities included presentations, videos, quiz and an interactive segment chaired by Ms. Linton. The students received certificates of participation. Credit Union Week Activities JCCUL’s annual Credit Union Week was celebrated highlighting the theme “Dreams Thrive Here”. We catered to our members by hosting Member Appreciation events across the branch network. The FHC Foundation in partnership with the Jamaica 4H Club initiated a Tree Planting Exercise in six regions. Selected schools across the island were Dupont Primary, Ensom City Primary, Yallahs Primary, Mandeville Primary & Junior High, Denbigh High School and St. James High. We also collaborated with JCCUL’s “Soup and Soap” project at the Bellevue Hospital where we distributed soup and hygiene packages to the patrons at the Home. Civil Service Week Celebrations Once again we were sponsors of the Jamaica Civil Service Week of activities. The theme for 2017 was “Diligently and Holistically Advancing Quality Public Service for a Better Jamaica”. We sponsored the launch event at the Terra Nova All Suite Hotel and the Civil Servant Award 38

trophy. The Annual Long Service Civil Servants Awards Ceremony was hosted at the Jamaica Pegasus Hotel and the Civil Servant of the Year was awarded to Mrs. Kerry-Ann Spaulding. Other activities were the Church Service, the Exposition at Emancipation Park and the Lyme at the N.H.T. Car Park. Product Enhancements and Promotion a) Cash In A Flash The Pay Day Loan product was enhanced and launched as the “CASH IN A FLASH”. The Cash In A Flash loan targets individuals with need for immediate access to cash and who are able to repay through salary deduction. Benefits include speedy turn-around, accessibility and peace of mind. The loan can be used for any purpose. Since the introduction, the take up has been growing steadily. b) The Hold Off Payment (H.O.P.) Loan Sale To increase loan demand in the last quarter of the year, the HOP loan sale was designed with attractive features, with the lead feature being members having opportunity to access moratoria on loans. The Loan Sale was very successful and the members were delighted about the features. c) Micro & Small Business Line • Micro & Small Business Workshop The thrust to preserve the connection with the membership continued and a Micro and Small Business Seminar was held at the St Gabriel’s Anglican Church Hall in May Pen, Clarendon. Members in this region were sensitized on how to “manage their business in a tight economy”. Presentation topics included Research, Documentation and Accounting, Growing your Small Business and How to Market Your Business. • FHC Members’ Bazaar, Concert & Fashion Show As part of the Micro and Small business strategy, a Bazaar including a Fashion Show and Concert was hosted in October at the Eureka Head Office car park. This event facilitated entrepreneurs who showcased and promoted their products and services to Credit Union members and the public. An outside broadcast was hosted by Irie FM. • Denbigh Agricultural Show We participated in the Denbigh Agricultural Show using the segment marketing strategy. The Micro Loan Seasonal Product was revamped using the name “CASH CROP”. This product targeted the cash crop, organic and small farmers to access well-needed funding. Corporate Social Responsibility FHC prides itself on its corporate social responsibility. During the year 2017 the following projects were executed in the communities we serve:

a) Rebirth Project Once again we were the title sponsor for the fourth staging of the REBIRTH PROJECT since its inception in 2014. The REBIRTH PROJECT is a transformational seminar targeting teenagers (13-15years) with behavioural challenges. These teens are introduced to counselling and psychological intervention prior to graduation to ensure that they excel at their full potential. The seminar is scheduled for eight weeks. Students who live in the inner-city are introduced to the seminar by their Guidance Counsellors. The all–inclusive workshop also facilitates the involvement of the parents and educators. FHC volunteers offer support as peer counsellors and coordinators. The participating schools were Tivoli and Norman Gardens High. b) Donation To Sophie’s Place of Safety Team members of the Operations and Shared Services Division distributed goodie packages to the children at the Sophie’s Place of Safety in Gordon Town. FHC also continued its Team Members’ Feeding Programme in partnership with the St. Stephen’s Church. c) Christmas Can Drive The Christmas Can Drive was launched in September 2017 and ran until December. Barrels of canned goods and other novelties were issued to charities island-wide by the branch network team. These charities included the Elsie Bemand Home for Girls in Kingston, the Strathmore Gardens Child Care Facility in St. Catherine, the Portmore Self-Help Disability Charity, a senior citizen in Morant Bay, the R.I.S.E Life Foundation in Kingston, the Chevely Basic School in Mandeville and the S.O. S. Children’s Village in Montego Bay. d) Facilitation of On-The-Job-Training Our partnerships with organizations such as Human Employment and Resource Training (HEART), National Youth Service (NYS), the Ministry of Labour (MOL) and Citizen Security & Justice Programme (CSJP), continued where we accommodated trainees/interns and provided on-the-job training for them. This accommodation has assisted in equipping these Interns with the necessary skills required for the working environment. FHC FOUNDATION The FHC Foundation continues its mandate to promote the development of the Jamaican youth in the areas of Education, Sports and Skills Training. The Annual Scholarship Awards ceremony was held at the FHC Training Centre, Kingston Gardens on August 25, 2017. Eighteen (18) students were awarded scholarships amounting to $2.383M) for GSAT, Oswald Thorbourne, Renald Mason, Special Grant and the Entrepreneurship Awards Programme. CREDIT ADMINISTRATION AND LOAN RISK During 2017, the Credit Administration and Loan Risk Department intensified its efforts to improve the overall quality of the loan portfolio. 40

A number of strategies were employed to reduce our exposure and to protect the loan portfolio. These involved the following: • Additional training for our loan underwriters, emphasizing a “member at the centre” approach to the underwriting and collection processes, while recognizing the need to protect the members' investments. • Greater flexibility in the collection process to negotiate workable solutions. • Enhanced processes to publicise and liquidate seized assets. • The employment of a Credit Risk Officer to assess risks associated with large loans , business loans and to facilitate the restructuring of past due loans. It was a good year in terms of collections as the past due percentage started the year at 14.98% and ended at 10.63%, indicating a progressive improvement over the period. The Loan Portfolio increased from $6.20 billion to $7 billion which also positively impacted the past due ratios. The over 90 days past due rate at the end of December 2017 was 8.16%. This compares to 11% for December 2016. The Credit Administration and Loan Risk team continued to focus on enhancing processes to improve turn-around time. The team’s efforts were greatly enhanced through the utilization of the internal Loan Tracker & Reporting System to ensure member satisfaction and a quick turnaround time. In addition, the new Collection Management System being developed in-house facilitated greater management of the collections process. When completed, the system will be tightened to further strengthen the collections process, allowing us to better manage the past due performance. We are confident that with our continued efforts and strategies we will see sustained improvement in portfolio quality and a marked reduction in past due ratios towards acceptable standards during 2018. OPERATIONS AND SHARED SERVICES The Operations and Shared Services Department was reorganized to offer greater support to the Branches and other areas within the Credit Union. The Disbursement and the Securities Units were shifted to the Department in 2017, which provided a greater focus on meeting the service standards in regards to loan disbursement. The Units played an integral part in the Credit Union meeting and surpassing its loan disbursement targets in an efficient and timely manner. The Securities Unit, charged with the responsibility to ensure that the loan collateral documents were intact and current, made significant progress in obtaining current documents. 41

Having the appropriate checks and balances was even more important as the Credit Union enhanced processes to improve the loan turn-around time and be able to compete in the marketplace. The Facilities & Administration and Record Management Units were also able to improve the service to align with the renewed thrust to have the Member at the Centre. This required a greater focus on offering good internal customer service to tam members by acting promptly on requests. We consistently delivered on our promise to process our salary deductions and direct deposits within the 24 hour turn-around time. One recurring issue relates to being able to quickly appropriate funds which are directly deposited to the Credit Union's Bank Account, where the listings were either not submitted on time by the companies or members not providing adequate information when making the deposits. The Team of Procedure and Verification Analysts was also reorganized to help provide the necessary assurances, that while we rolled out our renewed Sales and Service Initiatives, our internal controls were not compromised. The results revealed a greater level of compliance within units and a significant reduction in the number of suspected cases of fraud and losses. ENTERPRISE RISK MANAGEMENT We remain committed to the principles of sound business practices in order 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. In 2017, we undertook 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 adequate management of risk. The key objectives of our Enterprise Risk Management Framework are: 1. Oversight: To identify, manage and monitor all critical risks under a holistic approach consistent with Board approved risk appetite. 2. Accountability: To assign ownership of risk to Management who shall be responsible for identifying, evaluating, mitigating and reporting risk exposures. 3. Assurance: To provide reasonable assurance to the Board, Management, Members and Stakeholders that risk is being appropriately managed within defined levels so as to bring value to the Credit Union. 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. 42

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. In 2017, we undertook a number of activities to enhance our AML/CFT capacity. These included: • Reviewed existing AML/CFT controls; • Implemented new systems and processes to comply with AML/CFT risks • Enhanced training of team members in AML/CFT risk management Foreign Account Tax Compliance Act (FATCA) During 2017, FHC Investments Limited continued to be compliant with its reporting obligations under FATCA. CONCLUSION As we close another financial year, I want to say THANK YOU to each and every member for allowing us to serve you; to the Executive and Management teams, and to each team member for your unwavering commitment to improving the performance of your individual units and by extension, significantly improving the overall performance of the Credit Union. We look forward to building on this trajectory as we continue to strengthen the legacy of our Credit Union.

……………………………… Roxann Linton Chief Executive Officer

Report of the Treasurer Overview I am pleased to 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, 2017. 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 FHC realized a surplus of $100.02 million as compared to prior year deficit of $58.65 million and this represents a 270.54% or $158.67 million over the prior financial year. The subsidiary FHCIL realized a profit of $0.48 million before taxes as compared to prior year’s $19.20 million. Our positive performance was due mainly to the increases in the Credit Union’s Loan sales productivity, driven primarily by our Sales and Service Improvement Initiative (SSII) initiated at the start of 2017. There was a noticeable reduction in loan provisioning for 2017 over the previous year and the past due rate ended at a rate of 10.63% compared to 14.98% at the end of 2016. Together, these factors resulted in a year-over-year increase of $92.86 million in interest income from loans. The graph below shows the Credit Union’s Revenue and net surplus/deficit performance for the last five years.

At December 31, 2017, FHC Credit Union’s total assets of $10.96 billion represented an increase of 7.98% over prior year, while the Group had total assets of $11.06 billion as compared to $10.24 billion (2016) or 8.01% increase. The Group’s net Loan portfolio increased by 12.94% or $802.19 million over the prior year 2016 from $6.20 billion to $7.00 billion, while the Group’s Liquid Assets and Investments grew marginally by $50.35 million moving from $2.82 billion (2016) to $2.87 billion (2017). The graph below shows the Credit Union’s Investments, Loans and Total Assets for the period 2013-2017.

Members’ Deposits increased by $0.64 billion or 8.21% from $7.80 billion (2016) to $8.44 billion (2017). The graph below shows the trend over the period 2013- 2017

Economic Overview The Jamaican economy experienced marginal growth in 2017, as has been reported and being projected by the government and the IMF, which impacted business and consumer confidence. As reported by the IMF in their World Economic Outlook Update, global economic activity continues to firm up. Global output is estimated to have grown by 3.7% in 2017, which is ½ percentage point higher than in 2016. Global growth forecasts for 2018 and 2019 have been revised upward by 0.2% point to 3.9%. The revision reflects increased global growth momentum and the expected impact of the recently approved U.S. tax policy changes. Despite increased inflation of 5.2% in 2017, the Jamaican economy showed signs of stability, with economic growth of 0.5% (preliminary STATIN report) and the Jamaican dollar appreciating by 2.67% against the United States dollar in trading over the year to end 2017, moving to $125 from $128.42. The Bank of Jamaica continues to lead in its effort to stimulate growth and has changed the policy rates to overnight rates from 30 day certificate of deposit rates which over time should cause lower lending rates by financial institutions. Additionally, the 90-day benchmark Treasury Bill rate started the year at 5.68%, and moved downwards to 4.17% at year-end. The unemployment percentage declined by over 2 points over the year to end at just under 10.4% (Oct 2017). Regulatory Environment The expectation for the Bank of Jamaica (BOJ) to assume the role of direct supervisor of Credit Unions in 2017 was not realized but is more imminent as a new Bill for the sector were issued for consultations and review. As a special deposit taking institution the BOJ continues to have oversight of our activities and continues to review our financial reports and conducts periodic audits. Our performance against International Credit Union Industry financial benchmark standards for safety and soundness (PEARLS) continues to be monitored by the Jamaica Co-operative Credit Union League Limited. Our performance is also compared to other prudential standards by the BOJ. FHC’s Institutional Capital to Total Asset ratio remains good at 11.90% at December 31, 2017, compared to the minimum PEARLS Standard of 8.00%, and a 6.00% minimum requirement for the Bank of Jamaica. Operational Results Although faced with the challenges of increased competition and reduced margins coupled with the many challenges faced by its members, FHC continued to undertake initiatives to improve its competitiveness, while addressing needed improvements in its customer service and internal controls. Key Results for the year 2017 were: • Interest Income of $1,204.26 million (2017) increased by $127.72 million or 11.86% from $1,076.54 million (2016) primarily due to the growth in loan portfolio. The Credit Union remained competitive by offering attractive rates to our members, while applying deliberate applications in reviewing our policies and processes for improving our loan disbursement levels along with other key drivers for revenue growth. See graphical depiction of the Credit Union’s performance in Interest Income and Non-Interest Income for 2016-2017 below. 46

•

Non-Interest Income of $181.82 million (2017) decreased by $1.24 million or 0.68% from $183.06 million (2016). This decrease is mainly attributed to the reduction in the gains of sales of stocks. It should be noted also that, we aborted dormant fees in 2017.

•

Interest Expense fell from $162.69 million (2016) to $160.61million (2017), largely due to the reduced amount paid on external funding linked to declining Treasury Bill rates. The Credit Union continues to offer some of the most attractive interest rates available to our members on savings products.

Operating Expenses increased by $48.92 million or 4.68%, from $1,044.88 million (2016) to $1,093.80 million (2017). A salary reclassification exercise agreed on from 2016 was the significant contributor to the increases. We continue to closely monitor and contain our costs for the year and hence Operating Expenses were kept within budget. •

Past Due loan portfolio (30 days and over) as a percentage of our Total Loan portfolio was 10.63% (vs. 14.98% at December 31, 2016).

•

Provision for Loan Losses, net of recoveries fell to $31.65 million in 2017 from $110.69 million in 2016 as the loan quality showed improvements. Our provisioning for loan loss continues to be adequate to cover potential losses.

•

Accumulated deficit reduced to $189.68 million from $275.01 million, an $85.33 million improvement over 2016 and our immediate goal is to clear this position in the shortest possible time.

•

We continue to appeal to you our members to communicate with us as soon as problems are experienced in repaying your loans, either with us or elsewhere. We stand ready to assist in finding a beneficial solution in most cases. 47

Insurance The Credit Union continued to maintain the Life Saving and Loan Protection coverages, for members’ benefit, with the credit union movement’s insurance company, CMFG Life (formally CUNA Mutual). Conclusion The Credit Union’s performance was above expectations, due mainly to the significant increase in loan disbursements and reduction in loan loss provision expenses. The capital continues to improve and liquidity is adequate at the end of the financial year. The work continues as we apply our renewed focus to making more good loans, controlling delinquency, improving member service and engaging our members. We are confident that with the strategies and corrective measures we have already implemented, we are on the right path. As always, the Credit Union’s success is dependent on the continued support of you our members, our dedicated team members and our volunteers. Only together can we overcome the challenges facing us and accomplish the ambitious goals that we have set for FHC’s future. Acknowledgements I give thanks to God, my fellow board members and you, my fellow members, for having given me the opportunity to serve as your Treasurer. It has been an honour and a privilege to do so. I doubly thank you, our members, for the continued business and support that you have given to your Credit Union, and entrusting your confidence in us, the Board of Directors and Management, in serving you and we hope to continue to be deserving of your confidence. I thank and commend all the team members, including volunteers, managers and staff, who consistently applied themselves to the Credit Union’s success. I also thank our Auditors, KPMG, for their professionalism and another timely completion of our audit this year. God bless you all.

………………………. Kevin Forbes Treasurer

First Heritage Co-operative Credit Union Limited (A Society Registered Under the Co-operative Societies Act)

FINANCIAL STATEMENTS DECEMEBR 31, 2017

58-133 58-133

58 to 133

100

101

102

103

104

105

106

107

108

109

110

111

112

113

114

115

116

117

118

119

120

121

122

123

124

125

126

127

128

129

130

131

132

133

Report Of The Supervisory Committee OPENING REMARKS On behalf of the members of the Supervisory Committee, I would like to welcome all the members of First Heritage Co-operative Credit Union to this Annual General Meeting. We appreciate the opportunity given to us to serve the Credit Union in this capacity and would like to give our commendations to the Management, Team Members and the other Volunteers who have contributed their efforts to assist with the achievement of the Credit Union’s strategic objectives. THE COMMITTEE The governance structure of Credit Unions provides for a Supervisory Committee whose members are elected from and by the wider membership at the Annual General Meeting. The Supervisory Committee assists the Board of Directors in the discharge of their responsibilities by providing oversight on aspects of the internal control system through the Internal Audit Function. At the last Annual General Meeting, five (5) members were elected to the Supervisory Committee:

• • •

Mrs. Beverley Williamson Mr. Luke McIntosh Mr. Lascelles Ellis

• •

Mrs. Karla Stephens-Hall Mrs. Camelle Ricketts-Moore

The Committee appointed Mrs. Camelle Ricketts-Moore as Chairman and Mr. Luke McIntosh as Secretary. During the period, there were 8 meetings of the Committee; following which monthly reports were presented to the Board of Directors. We attended the Joint Meeting of the Board of Directors, Committee and Management held quarterly during the period and the Audit & Risk Management Committee meeting held in November 2017. ATTENDANCE RECORD As at December 31, 2017 attendance by members to the Supervisory Committee meetings was as follows: NAMES Mrs. Beverley Williamson Mrs. Karla Stephens-Hall * Mr. Luke McIntosh Mrs. Camelle Ricketts-Moore Mr. Lascelles Ellis **

ATTENDANCE 6 3 8 8 2

EXCUSED 2 5 0 0 1

*Mrs. Stephens-Hall was on maternity leave for 3 months. **Mr. Ellis resigned in August 2017. AUDIT AND INVESTIGATIONS ACTIVITIES 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. 2017 Audit Plan Audit No. Description 1. Compliance with Proceeds of Crime Act and other related Regulations 2. Micro and Small Business Loans Management 3. Unsecured Loans 4. Business Continuity & Emergency Preparedness Audit 5. Fraud Risk Management Audit 6. Information Technology General Controls Audit 7. Valuation of Securities (adequacy of collaterals for loans) 8. Retirement Scheme 9. Third Party Relationship Management 10. Human Resources Management As at December 31, 2017, the Internal Audit Department completed and distributed the following 3 final reports which represented 30% of the 2017 Audit Plan.

• • •

Compliance with Proceeds of Crime Act and other related Regulations Micro and Small Business Loans Management Unsecured Loans 136

In addition, from the table, the draft reports for audit no. 4 and 5 were completed in December 2017 and are scheduled to be distributed to the Board in 2018. Planning has commenced for audit no. 6 with expected completion in April 2018. The lower than expected completion rate has been due to two main reasons (a) A temporary reduction in the staff complement in February which was subsequently re-filled in May 2017 and (b) Unplanned investigations completed during the period. The audits completed, amongst other things, indicated the need for improvement in the following areas: • Enhancing prevention and detection controls to mitigate possible AML (anti-money laundering) exposures; and • Updating the business continuity and emergency planning documents to reflect current business processes. In our follow-up review of the Micro & Small Business, we noted significant reductions in the loan provisions in 2017 over 2016 which suggest better management of the underwriting of new loans. Ongoing follow-ups are being conducted continuously by the Internal Audit Department to ensure outstanding recommendations are being addressed. The Committee also reported on the following: 1. 2.

Bank Reconciliations are reported to be prepared in a timely manner and reconciling items are being cleared appropriately. Staff, Volunteer and Connected Party - Internal Audit is satisfied that there is evidence of effort to collect and reduce outstanding balances.

OTHER MATTERS One member’s complaint was received by the Supervisory Committee relating to inconsistencies with account balances. The complaint was investigated by Internal Audit, no inconsistencies were found. Management subsequently met with the member who was satisfied with results. 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 Chairman

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Report Of The Credit Committee The Credit Committee is very pleased to welcome all members to the 6th Annual General Meeting of the First Heritage Co-operative Credit Union Limited. Jamaica's economy reflected negligible change in 2017 when compared to 2016. As at September 30, 2017, Jamaica's economy recorded 0.8% growth when compared to the same period last year. Based on information released by Statistical Institute of Jamaica (STATIN), the movement was attributed to improved performances in the Services Industries (0.1 %) and the Goods Producing Industries (0.3%). Against this background, the Credit Union continued to operate in an increasingly competitive environment with aggressive market action from commercial banks, building societies, credit unions and other financial institutions. With the marginal growth in the economy, there was some increase in business and consumer confidence which benefited the Credit Union as members chose to borrow to meet their personal and business needs. The Credit Union in its determination to be its members first choice for fulfillment of their financial needs increased its flexibility in underwriting and collections. Innovative strategies introduced led to a significant improvement in the Past Due portfolio as the Past Due rate fell from 14.98% in December 2016 to 10.63% for December 2017. Also, the loan portfolio grew by 12.94% or $0.80 billion - moving from $6.20 billion in 2016 to $7.00 billion in 2017 which positively impacted the Past Due ratios.

The Micro Finance Unit also saw an increase in disbursement. The Unit disbursed $185.30 million in 2017, an increase of $115.55 million or 165.66% when compared to disbursement of $69.75 million for 2016. We expect further growth in 2018 in the Micro Finance Unit as the unit continues to reap the benefits of the restructuring of its operations. For the period of January to December 2017, a total of 48 meetings were held. At the beginning of 2017 the Committee had a total of four members. However, in May 2017 Mr. Quinton Masters retired from the Committee and Miss Janyce Robinson replaced him. We wish to thank Mr. Masters for his invaluable contributions to the Credit Committee and, by extension, the Credit Union. Mr. Stennett McLean was also elected to the Credit Committee to take up a vacant seat. The Credit Committee, welcomes Miss Janyce Robinson and Mr. Stennett McLean. Attendance for each member was as follows: Members

Meetings held

RICHARD RANGER QUINTON MASTERS ALTHEA DALEY PETE NESBITT STENNETT MCLEAN JANYCE ROBINSON

Meetings attended

48 48 48 48 48 48

44 16 44 41 40 28

No of times excused 4 Retired 4 7 Joined January 2017 Joined May 2017

We urge you, our members, to assist our Credit Union to continue to reduce its past due portfolio by encouraging fellow members to repay their loans in a timely manner. Where a member is experiencing financial difficulties, please advise him/her to visit and speak with a team member so that the best arrangement can be made for them 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, or valued members, for the assistance and support you have provided for us in 2017 and look forward to serving you in 2018.

................................................. Richard Ranger Chairman

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Report Of The Nominating Committee In accordance with the provision of the Rules of First Heritage Co-operative Credit Union Limited in respect of Article XIV, Rule 59: a Nominating Committee was appointed which comprised of the following members: • Mrs. Tamara Riley-Dunn - Chair, Board Representative • Ms. Patricia Ramsaran - Member Representative • Ms. Roxann Linton - Staff Representative The Committee met to consider all retiring volunteers from the Board of Directors, Supervisory Committee and Credit Committee. The Committee subsequently advertised for Volunteers to fill the vacancies. The candidates were assessed and recommendations made. The Nominating Committee now presents this report to the membership as outlined below: BOARD OF DIRECTORS The Directors retiring at this Annual General Meeting are: 1. 2. 3.

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

A vacancy also exists on the Board of Directors in relation to Mr. Robin Levy who vacated office in November 2017 to assume the mantle as Group CEO of the Jamaica Co-operative Credit Union League. We thank Mr. Levy for his service and wish him the best in his new role. The Committee nominates the following persons who have all indicated their willingness to serve: Retiring Mr. Balvin Vanriel Mrs. Leodis Douglas Mr. Noel Francis Mr. Robin Levy

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

Term (years) 1 1 2 2

SUPERVISORY COMMITTEE The members of the Supervisory Committee all of whom retire at this Annual General Meeting are: 1. 2. 3.

Mrs. Camelle Ricketts-Moore Mr. Luke McIntosh Mrs. Karla Stephens-Hall 140

4. 5.

Mrs. Beverley Williamson Mr. Lascelles Ellis

Mr. Lascelles Ellis resigned from the Committee in August 2017 due to illness. Mrs. Beverley Williamson, having served the maximum term of 5 consecutive years, is not eligible for reelection. We thank both Mr. Ellis and Mrs. Williamson for their service to the Credit Union. The Committee nominates the following persons who have all indicated their willingness to serve: Retiring Mrs. Camelle Ricketts-Moore Mr. Luke McIntosh Mrs. Karla Stephens-Hall Mrs. Beverley Williamson Mr. Lascelles Ellis

Recommended Mrs. Camelle Ricketts-Moore Mr. Luke McIntosh Mrs. Karla Stephens-Hall

Term (years) 1 1 1 1 1

CREDIT COMMITTEE The members of the Credit Committee retiring at this Annual General Meeting are: 1. 2.

Mrs. Althea Daley Mr. Pete Nesbitt

The Committee nominates the following persons who have all indicated their willingness to serve: Retiring Mrs. Althea Daley Mr. Pete Nesbitt

Recommended Mrs. Althea Daley Mr. Pete Nesbitt

Term (years) 2 2

Profiles of Candidates 1.

Board of Directors

Mr. Balvin Vanriel, FCCA Mr. Balvin Vanriel is currently an Audit Manager with the auditing firm BDO Chartered Accountants. He is a qualified Accountant, a Fellow with the Institute of Chartered Accounts 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 and is Chairman of the Finance Committee as well as the Chairman of the Board of Directors of FHC and FHC Investments Limited.

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Mrs. Leodis Douglas, MBA Mrs. Leodis Douglas is currently the Human Resource Director and Lecturer at GC Foster College of Physical Education and Sport. Mrs. Douglas is the holder of a Masters of 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. Cranston Ewan, MBA, ACCA Mr. Cranston Ewan is a seasoned accounting and finance professional of over 30 years. He 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 BIG 4 Accounting, Shipping, Education, Energy Efficiency, and the Distributive Trade. His expertise includes accounting, finance, management consulting, human resources management, facilities management and leadership. Currently Mr. Ewan is the Finance & Administration Manager at IMCA Jamaica Limited. In the past he has served as a member of the Management Advisory Committee of JAGAS and member of the Audit Committee of The Transport Authority. Mr. Noel Francis, O.D. Mr. Noel 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, Consultant to the Commonwealth Secretariat and the United Nations and serving as a Lecturer at the University of Technology. He currently owns and operates businesses in food distribution and money remittance. Educated at the University of the West Indies, University College London, University of Toronto and Nova, Mr. Francis’ qualifications include a Bachelor of Sciences Degree (BSc.) and a Masters of Business Administration (MBA). Mr. Francis currently serves on the Board of the Jamaica Copyright Agency as Treasurer and sits on the Credit Committee of FHC as well as the Board of Directors. Mr. Francis has been honored by the Jamaican Government with an Order of Distinction. 2.

Supervisory Committee

Mrs. Camelle Ricketts-Moore, FCCA, MBA, CIA, CISA Mrs. Camelle Ricketts-Moore is an Internal Audit Manager with 18 years working experience in the field of Accounting, Internal Auditing and General Business Operations. Her achievements include the drafting of an Internal Audit Charter, instituting a framework to guide the progression of the Internal Audit department, as well as developing and instituting a Risk Based Audit Process and an Operations Manual. 142

Mrs. Ricketts-Moore holds a Masters of Business Administration and is a Certified Information System Auditor, Internal Auditor (CISA) and Chartered Accountant. She is a member of the Association of Chartered Certified Accountants (ACCA) since 1999, Information Systems Audit and Control Association (ISACA) since 2004 and Institute of Internal Auditors (IIA) since 2006. Mr. Luke McIntosh, J.P. Mr. Luke Mclntosh has a diverse 27-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 & Change Management, Government Accounting, Corporate and Strategic Planning, Public Sector Procurement, Human Resource Development and Policy Development. Mr. Mclntosh, a Justice of the Peace, is an Executive Member of Father's Inc. and a Gender Activist with the Women's Media Watch. A sporting enthusiast, he has been a member of several successful inter-collegiate cricket and business house table tennis teams. Mrs. Karla Stephens-Hall, CPA, CA, CIA Mrs. Karla Stephens-Hall’s career has exposed her to senior positions within companies such as Cable & Wireless Communications Group, PricewaterhouseCoopers and Mossel Jamaica Ltd (Digicel). Mrs. Stephens-Hall currently holds the position of Regional Senior Business Internal Auditor within the Cable & Wireless Communications Group, where she is responsible for the planning and completion of internal audits for all departments and Companies in the Caribbean. Mrs. Stephens-Hall is an accomplished Internal Auditor and financial professional. She holds a Bachelor of Sciences Degree (with Honours) in Accounting and Economics. Since completing her Degree she has accomplished designations as a Certified Public Accountant (CPA), a Chartered Accountant (CA), Certified Internal Accountant (CIA) and Certified Risk Management Association Professional (CRMA). Currently, she holds membership with the New Hampshire State Board of Accountancy (Licensed), the Institute of Chartered Accountants of Jamaica (ICAJ) and the Institute of Internal Auditors (IIA). Ms. Geraldine Wright, MBA, CFE, AICB Ms. Geraldine 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 Banks and Institute of Bankers, England respectively. 143

Over the years, Ms. Wright has worked at various commercial banks and most recently served 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), Rural Agricultural Development Authority (RADA) and the Bellevue Hospital. Ms. Jacqueline Roberts, CA, ACCA Ms. Jacqueline 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). Miss Roberts is also a Registered Public Accountant. Ms. Roberts possesses over 25 years accounting and auditing experience and has performed on assignments within various sectors such as manufacturing, governmental bodies, financial, agriculture, retail, non-profit and service organizations. She previously served as the Secretary of the Supervisory Committee of the former Churches Co-operative Credit Union Limited. 3.

Credit Committee

Mrs. Althea Daley Mrs. Althea Daley currently serves as a Consultant with the Petroleum Industry Employees Co-operative Credit Union Limited. 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, Deputy General Manager for the Montego Bay Co-operative 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. She 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. Pete Nesbitt Mr. Pete Nesbitt has been serving at the National Housing Trust (NHT) since 1993 and is currently the Project Manager. He has worked in various capacities within the organization, including in the Loan Administration, Debt Management, Customer Service and Project Management Departments. Mr. Nesbitt holds a Masters in Transformational Leadership from the International University of the Caribbean, a Bachelors in Management from the B & B University College as well as certifications in Supervisory Management and Customer Service.

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Tamara Riley-Dunn Chair, Nominating Committee Signed By:

………………………………………………………….. Tamara Riley-Dunn Director

……………………………………………………………. Patricia Ramsaran Member Representative

……………………………………………………………. Roxann Linton Staff Representative

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09/04/2018 ………………………… Date

09/04/2018 ……….......…………….. Date

Resolution for Amendment to the Rules Whereas The Rules of the Credit Union are inspected from time to time to ensure that they are free from errors; and Whereas There may arise, from time to time, the need to make amendments to the rules to remove ambiguity, to avoid repetition and to make clarifications; and Whereas There is a necessity to make changes to the Rules of the Credit Union, in particular. I. Be it resolved that Article IX, Rule 26 be amended as follows so that the phrase “three (3) consecutive terms” shall read “six (6) consecutive years”: 26

The business of the Credit Union shall be conducted by the Board of Directors, which shall be elected at the Annual General Meeting of the Credit Union and shall consist of no fewer than nine (9) nor more than fifteen (15) members, all of whom shall be members of the Credit Union, provided that the number of members comprising the Board of Directors shall at all times be an uneven number with no gender bias. Each member shall hold Office until his successor is elected, unless he demits office earlier or has been expelled, and shall be eligible for re-election. No member of the Board of Directors shall serve for more than three (3) consecutive terms six (6) consecutive years. However, such member will be eligible to serve once he sits out a period of one (1) year or until the next Annual General Meeting. No member of the paid staff shall be eligible for election to the Board of Directors.

BE IT RESOLVED: That at this Annual General Meeting of First Heritage Co-operative Credit Union Limited held on May 10, 2018, that the following resolutions/rules be passed by special majority vote by the members present and voting in keeping with the Rules and the Cooperative Societies Act and Regulations.

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147

148

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Report Of The Delegates of JCCUL’s AGM JAMAICA CO-OPERATIVE CREDIT UNION LEAGUE LTD. 2017 CONVENTION & 76th ANNUAL GENERAL MEETING Held MAY 25-28, 2017 HIGHLIGHTS _________________________________________________________ The Convention & legally constituted 76th Annual General Meeting of the Jamaica Co-operative Credit Union League was held from May 25-28, 2017 at the Hilton Rose Hall Hotel & Spa in Montego Bay. Approximately one hundred and thirty seven (137) delegates, alternate delegates and observers attended the weekend Convention and Meeting. The schedule of activities included a trade show, workshops, edutainment, a banquet and the annual general meeting. THURSDAY, MAY 25 The following activities took place: • •

•

The Credit Union Managers’ Association annual general meeting. An afternoon workshop presented by Dr. Herbert Gayle, Sociologist and Criminologist. He did a riveting presentation on the topic: “Violence and doing business in Jamaica”. It was a real eye-opener for the large audience which attended. Edutainment was a session hosted by radio personality Jenny-Jenny as part of the reception.

FRIDAY May 26 Friday’s activities got off to a good start with the Women’s Global Network Breakfast meeting and the Presidents’ breakfast happening simultaneously. The guest speaker at the Presidents’ breakfast was Mr. Gary Allen, CEO of the RJRGleaner Communications Group. This was followed by the official opening of the conference with Action Coach Marcia Woon Choy being the main speaker. 150

The plenary session was next and that was well attended by delegates and observers. Matters of critical importance to the Movement’s future were discussed. Two workshops were held on Friday afternoon and they were as follows: •

“Building a Culture of Compliance: The Role of Board and Management”. The Presenter was Mr. Robin Sykes, Chief Technical Director of the Financial Investigation Division (FID).

•

“IFRS9: What you need to know” by PriceWaterhouseCoopers. The annual awards dinner ended the day. Guest speaker at this event was Mr. Owen “Blacka” Ellis, a Jamaican comedienne of note. The following credit Unions received Credit union of the year awards:

Awards Mega (Assets > $2 Billion) Winner

First Regional Credit Union

Runner Up

Manchester Credit Union

Large (Assets > $1 Billion - $2Billion) Winner

JDF Credit Union

Runner Up

Palisadoes Credit Union

Medium-sized (Assets > $300M to $1B) Winner

NCB Employees Credit Union

Runner Up

Grace Credit Union

Small ( Assets < $300M ) Winner

BJ Staff Credit Union

Runner Up

No runner up was declared 151

Other Credit Unions that won prizes were: • • •

C&WJ Credit union – Highest Asset Growth JDF Credit Union - Highest Solvency C&WJ Credit Union – Highest Net Capital Growth

Parish credit unions also won the following: • • •

For highest net loan growth - Manchester Highest Return on Assets – First Regional Most Outstanding Parish Credit Union – First Regional

Others prizes: CPD Online Top User – Christine Barker – Insurance Employees Credit Union CPD Online Highest Performing Credit Union CPD Online Highest Percentage Increase in Usage – BJ Staff Credit Union Service Quality Award Winner – NCB Employees Credit union Service Quality Award Runner-up – JDF Credit union ANNUAL GENERAL MEETING The 76th Annual General Meeting was held on May 27, 2018. Twenty-five (25) Credit Unions numbering 137 participants attended the meeting. In line with Parliamentary procedures, the newly elected President Mr. Winston Fletcher, gave a summary of the Board report for the year 2016. The Treasurer did the same for the financial reports and the chair of the supervisory committee also reported. Distribution A total possible distribution of $16.7 million for 2016 was identified by the Treasurer compared to $28.14 million in 2015. Of this amount $1M was set aside for a scholarship fund for recognition of the 75th anniversary of the League. The bulk was cash interest as dividend on voluntary shares amounting to $6.3 Million, while dividends on permanent shares amounted to $5.8 Million.

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ELECTION OF OFFICERS The Meeting voted to accept the nominations for the following persons to serve on the Board of JCCUL. • Mrs. Brenda Cuthbert • Mr. Jerry Hamilton • Mr. Delroy Foster • Ms. Carol Anglin • Mr. Pete Smith • Mr. Winston Fletcher • Mr. Lambert Johnson They were elected to join the board of JCCUL for a term of 3 years. For the Supervisory Committee the following persons were elected: • Mr. Sefton Cummings • Mrs. Tamara Baugh-Brissett • Mr. Michael Sutherland • Mrs. Ivy Lawrence • Mr. Lenroy Allen RESOLUTIONS Six resolutions were passed at the meeting as follows: • Congratulatory resolutions were received on behalf of: COK Sodality Credit Unions for 50 years of service NCB Employees Credit Union for 25 years of service • Former JCCUL President Johnathan Brown for receiving a national award: the Badge of Honour for Meritorious service for dedicated service to the Jamaica Co-operative Credit Union League. • One Condolence resolution were passed on behalf of Mrs. Rosemarie Vernon, past director of the JTA Credit Union. • A resolution was passed to fund an Information Technology Project for the Credit Union Movement from the Stabilisation Fund. • A late submission of a resolution from First Heritage Credit Union, for past CEO Basil Naar was also passed at the AGM.

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RULE CHANGES There were no rule changes. Following the AGM the executive was elected to serve on the League Board for the 2017-2018 year: • • • • • • • • • • • • • • •

Winston Fletcher - President Clide Nesbeth – 1st Vice President Lambert Johnson – 2nd VP Andrea Messam – Treasurer Jerry Hamilton - Assistant Treasurer Norris Gilbert – Secretary Patrick Smith Martin Blackwood O’Neil Grant Anthony Young Delroy Foster Carol Anglin Brenda Cuthbert Derrick Tulloch Ryan Muir

The all- white party on Saturday night, sponsored by CUNA Caribbean Jamaica, was a sensation. The turnout was excellent and party goers enjoyed the music of Fab 5 and Leroy Sibbles until quite late. The conference ended officially on Sunday May 28 with an ecumenical service.

………………………… Roxann Linton Delegate

………………………… Edmund Jones Delegate

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Branches & Branch Managers Branches

Address

Branch Managers

Kingston & St. Andrew

8-10 Eureka Road Kingston 5

Jacqueline Pingue - Smith

Lawrence Tavern Lawrence Tavern P.O. St. Andrew

St. Catherine

AGM - Wealth Development (with responsibility for the Eureka/Ripon and Lawrence Tavern Branch)

20 Dominica Drive Kingston 5

Racquel Walker

10 East Avenue Kingston 4

Melissa Miller- Benjamin

Lot 57 West Trade Way Portmore Town Centre

Trudian Stewart

Unit 13 Oasis Shopping Centre 6 March Pen Road Spanish Town

Rayon Wright

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

26 Queens Street, Morant Bay, St. Thomas

Almeta Johnson

Clarendon

Shops 5 & 6 Bargain Village Plaza May Pen

Norman Williams

Manchester

2 Perth Road Mandeville

Sheldon Christian 155

St. James

21 Union Street Montego Bay

Marcia Bailey

FHC Investments Limited Kingston

Suite 27 Winchester Business Centre 15 Hope Road Kingston 10

Nielson Rose

Unit Managers Nadine Dyer Acting Manager – Risk and Compliance Kadian Dyke Manager – Micro & Small Business Loans Unit Sophia Harvey Manager - Human Resource Development Alleesa Matherson Manager - Centralized Loans Unit Garfield Pearson Senior Manager - Accounting & Treasury Rosemarie Samuels Manager - Training and Development Delano Walters Manager-Information Systems

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Parliamentary Rules of Order 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.

7. Speeches No member shall be allowed to speak more than once upon 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 157

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. Chairman'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 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. 158

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.

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. 159

Register of Deaths Marcia Lons Pearline Joseph Marcia Desmond Errol Lucil Carmen Hyacinth Rowan Natalee Melodene Alred Thyren Valerie Linval Juliet Sybil Micheal Winston Vivienne Ina Wilfred Edith Tyrone Luke Clarissa Rupert Leighton Lydia Moyesha Norma Anetta Rupert Yvonne

Reynolds Logan Williamson Ade-Gold Daley-Spencer Tucker Hibbert Louis Tucker Douglas Thomas Terrelonge Thomas Howell Campbell Walker-Campbell Russell Teape-Hibbert White Russell Clarke Ayre Gollop Pearce Pryce-Deer Daley Farquharson Brewster Groves Hanson Walters Bethune Ellis Preston-Anderson Cox Davis

Trevor Cordel Hannah Valerie Yvonne James Joseph Leveta Lydia Anita Churchill Erica Lloyd Michael Simon Kathleen Sybil Joshua Beverly Andrew Madge Kenric Clive Mervine Lorna Carlos Sylvester Kevin Carlester Joyce Maria Graville Vincent Altiman Joan Norma

Dawswell Walker Lawrence Villous Gregory Scarlett Chambers Crowe Watt Frankson-Beech Allison Nash Tucker Lorde Anderson Johnson Newman Bailey Coburn Francis Robinson Osbourne Gordon Simons Lawson Mohan Whyte Loy Thomas Miller Thomas Green Griffiths Bryan McFarlane Wallace

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June Barbara Clyde Cynthia Cornetta Muriel Veneita Gloria Jennetta Florence Celia Evadney Dennis Beatrice Henrietta Emily Gloria Millicent Diamond Claudia

Johnson Reid Stewart Benjamin Samuels Richards Goulbourne Dickerson William-Steele Brown Brown Thomas Duffus Christie Robinson Allison Johnson Clarke Baugh Clarke

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

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Notes

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Notes

163

Notes

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