“Progressing along its growth continuum�
60th Annual General Meeting
annual Report 2018
Mt Pleasant Credit Union Co-operative Society Ltd
Credit Union Prayer 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.
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Our Mission Statement Mt. Pleasant Credit Union Co-operative Society Limited as a Savings and Credit Co-operative will lead in the growth and development of its membership by providing a profitable range of services in an efficient and caring manner through a highly valued professional and dedicated staff.
Our Vision Statement Mt. Pleasant Credit Union will be the leading Credit Union in the Caribbean in the provision of Financial and social services for its members and in the Satisfaction of the whole gamut of their development needs.
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National Anthem Forged from the love of liberty, In the fires of hope and prayer, With boundless faith in our destiny We solemnly declare. Side by side we stand Islands of the blue Caribbean Sea, This our native land We pledge our lives to thee. Here every creed and race, Find an equal place, And may God bless our nation. Here every creed and race, Find an equal place, And may God bless our nation.
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Table of Contents Notice of 60th Annual General Meeting
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Minutes of the 59th Annual General Meeting
7
Standing OrdeRS
6
Report of the Board of Directors
23
Report of the Credit Committee
35
Report of the Education Committee
42
Report of the nomination Committee
55
STAFF
34
Report of the Supervisory Committee
39
Applicants for nomination
49
FINANCIALS
57
RESOLUTIONS FOR 60TH Annual General Meeting
140 53
pearls ratio analysis
143
budget projections 2019
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141
Notice of the 60th Annual General Meeting Notice is hereby given that the 60th ANNUAL GENERAL MEETING of the Mt. Pleasant Credit Union Cooperative Society Limited will be held at Tobago Nutrition Co-operative Society Limited, Canaan, Tobago, on Monday 13th May 2019, commencing at 4.30p.m. with the following as its agenda: 1. 2. 3. 4. 5. 6. 7.
National Anthem Credit Union Prayer and Invocation President’s Welcome and Opening Remarks Reading of Notice convening the 60th Annual General Meeting Adoption of Standing Orders Confirmation of Minutes of 59th Annual General Meeting Matters Arising
Reports a) Board of Directors b) Credit Committee c) Supervisory Committee d) Education Committee e) Nomination Committee 9. Financials a) Auditor’s Report b) Report on Financial Statements 8.
10. Election of Officers a) Supervisory Committee b) Board of Directors c) Credit Committee
11. 12. 13. 14.
Operating Budget Resolutions General Business Adjournment
By Order of the Board of Directors
Cislyn James Secretary
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Standing Orders
1. 2.
a) A member shall stand and state his/her name when addressing the chair. b) Speeches are to be clear and relevant to the subject before the meeting.
A member shall only address the meeting when called upon by the Chairman to do so, after which he/she shall immediately take his/her seat.
3. No member shall address the meeting except through the Chairman.
4.
A member shall not speak twice on the same subject except: a) The mover of the motion, who has a right of reply. b) He/she rises to object or explain (with permission of the chair)
5. The mover of a “procedural motion” (adjournment, lay on the table, motion to postpone) shall have no right to reply. 6. No speeches are to be made after the “question” has been put and carried or negated. 7. 8.
A member rising on a “point of order” shall state the point clearly and concisely. (A point of order must have relevance to the Standing Orders).
a) A member shall not “call” another member “to order” but may draw the attention of the chair to a “breach of order”. b) In no event can a member call the Chair “to order”.
9. Only one amendment should be before the meeting at one and the same time. 10.
When a motion is withdrawn, any amendment to it fails.
11. The Chairman shall have the right to a “casting vote”.
12. If there is an equality of voting on an amendment and if the Chairman does not exercise his casting vote, the amendment is lost. 13.
Provision shall be made by the Chairman for protection from vilification (personal abuse).
14. No member shall impute improper motives against another.
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minutes of the
59Th Annual General Meeting Mt. Pleasant Credit Union Cooperative Society Ltd 1.
Introduction
2.
1.1 Mt. Pleasant Credit Union Co-operative Society Limited held its 59th Annual General Meeting at the Tobago Nutrition Co-operative Society Limited, Canaan, Tobago, on Thursday 21 June, 2018.
Call to Order
3.
2.1 The meeting was called to order at 3:43 p.m. by President Dr. Winford James, the Chairman.
Credentials Report
3.1 At 3:43 p.m. the Chairman reported that there were One Hundred and Twenty-One (121) persons present and, therefore, that the quorum of fifty was available.
3.2 The breakdown was as follows:
Privileged Members Board and Committees Staff Invited Guests
– 86 – 10 – 21 – 4
3.3 The meeting was invited to sing the National Anthem.
4.
3.4 The Credit Union Prayer was then recited.
5.
4.1 The notice of the Meeting was read by the Secretary, Mrs. Cislyn James.
Notice of Annual General Meeting
Adoption of the Standing Orders
5.1 A motion for the adoption of the Standing Orders was Moved by: Ms. Nevlin Renwick Seconded by: Mrs. Gail Remy-Rajkumar
6.
5.2 The motion was carried.
The President’s Welcome and Opening Remarks 6.1 In his opening remarks, the President welcomed all persons present.
6.2 He said that he was always happy to give an account of the stewardship of the members’ business and that Mt. Pleasant Credit Union prided itself on accountability and transparency.
6.3 He also informed that the Board was not happy to be late since we promised the membership to hold our Annual General Meeting in the first (1st) quarter of the year or no later than April of each following year.
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Minutes of the 59th AGM 6.4 The Chairman wished that during his presentation a member would assist in summarizing the contents of the brochure on the assumption of knowledge of its contents. 6.5 He presented the facts to the members with regard to the reason for the lateness of the brochure which resulted in the Annual General Meeting being held in June.
6.6 The Chairman explained that on 17th March, 2018 the Board received a report from the ‘ss which pointed to certain unreconciled balances as at December 21 2017, which caused them to qualify their opinion.
6.7 The situation was a significant departure from the Credit Union’s good customary practice, and the Board was unhappy to come to the AGM until it was rectified.
6.8 The Management subsequently proceeded to ensure that the reconciliation was done to the Auditor’s satisfaction.
6.9 The Chairman advised that if we had had a satisfactory report from the Auditors by March 17th the Annual General Meeting would have been held by April 2018.
6.10 He reported that by May 2, 2018, a subsequent report from the Auditors was presented with the opinion that the Credit Union was now adhering to International Financial Reporting Standards (IFRS).
6.11 The Chairman explained that the matter was compounded by the following: (a) prior arrangements by Board members to travel; (b) the League’s Leadership Conference in Panama; (c) the CCCU Conference in Trinidad; (d) printing challenges allied to the need to set an AGM date that allowed the membership fourteen (14) days’ notice. 6.12 The Chairman promised that there would be serious consequences for Management if the next AGM was delayed on account of problems with the accounts.
6.13 He announced that, in respect of the sourcing of AGM tokens, the Board had made a significant shift from foreign suppliers abroad (typically China) to local entrepreneurs – thus contributing to support for local industry and conservation of foreign exchange.
6.14 Some entrepreneurs targeted were Mrs. Lamina Woods-Ollivierre of LCA Designs, Ms. Akeisha Lewis of BlackTequila Concepts, Osanie’s Designs, Ted Arthur, Anthea’s Treasure Trove, Shanea Agro Centre, and Lynette Grant of Ready Steady Grow.
6.15 The Chairman said that the Board was pleased to inform that nine (9) deserving potential plot owners/members were selected in the order in which their initial deposits were made. They are as follows: 6.16
Ms. Zipporah Denoon Ms. Keishel Percy Mr. Arlon Fraser Ms. Nadine Marcelle-Osmond Ms. Camille Duncan Ms. Gaithlyn Parks Ms. Emaleia Herr Ms. Lorie Denoon Mr. Godson Denoon
6.17 The Chairman informed that monthly rental income from space leased at BAID was Twenty-one Thousand, Three Hundred and Twenty Dollars ($21,320.00).
6.18 He made reference to amendments contained in the errata sheet in the brochure. Two (2) additional amendments were highlighted.
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Minutes of the 59th AGM 6.19 Page 137 under Honoraria paragraph 2, line 4 should read “December 2017” instead of ‘December 2016’. 6.20 The Chairman briefed the meeting on the Table of Contents of the brochure and highlighted the following areas: 6.21 Highlights of Financial Performance and other key areas:
6.21.1 There was a surplus of over $11Mn which was an increase of $3Mn over the previous year 6.21.2 Income was increased to $27Mn vs $18Mn over the previous year 6.21.3 Interest on loans increased to $18Mn vs $15Mn over the previous year 6.21.4 Our loan portfolio as at December 31 2017 was $173Mn 6.21.5 Members deposits as at December 31 2017 was $50Mn 6.21.6 Our membership base increased by 738 members, bringing our membership base to approximately15,000 and growing. Mt. Pleasant Credit Union is classified under the very large category of Credit Unions. 6.21.7 Total Assets were $250Mn 6.21.8 Loans and Advances as at December 31st 2017 was $173Mn.
6.22 The Chairman informed that there were increases in all major areas in a challenging economic climate, and wanted us in particular to maintain our levels of surplus.
6.23 He invited Mrs. Gail Remy-Rajkumar to share with the members her findings after careful study of the brochure.
6.24 Mrs. Rajkumar commended the Board for a well-prepared brochure. She said that at first glance there was not much to ask, but would make her comments and queries as the reports were presented.
6.25 The Chairman introduced the Board and Committees.
6.26 He said that IFRS 9 – a new International Financial Reporting Standard – would be replacing International Accounting Standard (IAS) 39 and would be effective from January 2018..
6.27 He said that the new method of reporting would involve
(a) Classification and measurement of Financial Instruments (b) Impairment of Financial Assets (c) Hedge Accounting (d) Accounting and Provisioning for expected losses.
6.28 The Chairman explained that in 2007 there was a global crisis precipitated by the housing fiasco in the US, which resulted in a drastic fall in the value of housing properties.
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6.29 He said that the Credit Union could face challenges due to the implementation of IFRS 9 and noted that it was a very complex standard that was difficult for the average analyst to understand.
Minutes of the 58th Agm
7.1 The Minutes of the 58th AGM were presented.
7.2 Confirmation of the Minutes of the 58th AGM was:
Moved by: Mrs. Lucille George-Percy Seconded by: Ms. Keishel Percy
7.3 The motion was carried.
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Minutes of the 59th AGM 8.
Matters Arising 8.1 Mrs. Gail Remy-Rajkumar questioned whether Mr. Gladstone Skeete’s request for a breakdown of all rejected loans was provided. 8.1.1 In response, Ms. Ann Marie Forde reminded that it was not a decision but a recommendation. 8.1.2 The Chairman said that the recommendation would be considered in the report of the next Annual General Meeting.
8.2 Mr. Denzil White enquired about the status of the operation of the SugaPay machine.
8.3
8.2.1 In response, the General Manager said that SugaPay machine was already in operation. He said that initially cards were distributed to the Board, Committees and Staff members and the machine would be fully operational and available to the general membership by September, 2018.
Mrs. Gail Remy-Rajkumar requested further information on Ms. Susan Baynes’ question on the explanation for Total Holdings Ltd operating at a loss.
8.3.1 In response, the Chairman said Total Holdings Ltd was a subsidiary of the Mt. Pleasant Credit Union which until recently was operating at a loss because of insufficient income streams. 8.3.2 He explained that the profit of Total Holdings Ltd was being realized on income from commissions, and attachments to our sewer system but that recently the position had improved because of rental income. 8.3.3 He said that eventually the position would improve when property owners occupy the plots and the Tobago House of Assembly assume the responsibility of maintenance of the verges.
8.4 Mrs. Patricia Mc Kenzie-Patrick referred to results of the elections at the Annual General Meeting and observed that some Board members had been persistently serving on the Credit Committee. She recommended that other members be given an opportunity to serve. 8.4.1 In response, the Chairman informed that the current Bye-Laws sanctioned representation and it would be in violation of the Bye-Laws to do otherwise. He said that it was legal and part of Mt. Pleasant Credit Union’s practice over time. 8.4.2 Mrs. Elizabeth Jerry-Phillips responded on behalf of the Nomination Committee. She said that advertisements would usually be published and members did not apply. Members basically did not show any interest in serving.
8.5 Mr. Robert W Dillon said that he wished to withdraw his interest to serve on the Board. Mr. Dillon referred to information on Agriculture in the reports of the Credit Committee and Education Committees and said it was relevant to Total Holdings and the business of agriculture as a flagship for members’ concern. He said the required information should include the proposal from Mr. Reginald Phillips. 8.5.1 In response, the Chairman said that the proposal from Mr. Reginald Phillips had not been presented to the Board. He also informed that persons had been squatting before purchasing the land and the Credit Union had inherited the situation involving both home owners and farmers. 8.5.2 The Chairman invited the Secretary (Chairperson of the Land & Building Committee) to provide information on the status. 8.5.3 In response, the Secretary said that the issue was pursued after the 2017 Annual General Meeting but that we found ourselves in a position of encroachment of neighbouring private properties. Subsequently, bids from surveyors were invited and after final review a proposal would be taken to the Board and we still must wait on the outcome of the actual surveys before proceeding.
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Minutes of the 59th AGM 8.5.4 The Chairman enquired whether Mr. Dillon’s concerns were confined to areas that were already developed or areas that were underdeveloped. 8.5.5 Ms. Merle Tobias referred to utterances that spoke about regularizing squatters. She said we needed to give members access to the lands and allow them to purchase the lands eventually.
8.5.6 The Chairman advised that the lands must be surveyed to be certain. He said we needed to have our records correct and to date persons squatting were members. 8.5.7 Ms. Nevlin Renwick cautioned that the Credit Union needed to be very careful with the timeframe given to squatters to encumber the land without our being proactive in our attempt to regularize the situation.
8.6
8.5.8 Ms. Ann Marie Forde in clarification informed that lands were purchased and we had inherited the squatters. She said that time frame was irrelevant. Public relations were crucial and we could not chase the occupants off the land indiscriminately. She said we were working on the issue and some monumental boundary marks would be erected after the completion of the surveys. Credential Reports 8.6.1 At 5:00pm, the Chairman reported that there were Two Hundred and Thirty-Seven (237) persons present. 8.6.2 The breakdown was as follows:
Privileged Members Board and Committees Staff Invited Guests
– 184 – 21 – 21 – 11
8.6.3 A motion for the confirmation of the Minutes of the 58th Annual General Meeting was
9.
Moved by: Ms. Pearlesta Moses Seconded by: Mrs. Lucille George-Percy
8.6.4 The motion was carried.
Committee Reports 9.1
Board of Director’s Report 9.1.1 Ms. Pearlesta Moses observed that under Attendance of the Board of Directors there was only one (1) meeting listed under ‘Other’ and requested an explanation. 9.1.2
9.1.1.1 In response, the Chairman informed that it was a joint meeting of Board, Committees and another institution. Amendment 9.1.2.1 Mrs. Aneika Benoit Edwards’ attendance under Special meetings which was omitted should read “5”.
9.1.3. Mrs. Gail Remy-Rajkumar asked what was the entrance fee charged for all new members if there were (738) new members and $66,300 was added to the Reserve Fund. 9.1.3.1 In response, the Chairman said that the Mt. Pleasant Credit Union did not charge for children and the entrance fee per person was $1.00.
9.1.4 Mr. Denzil White enquired what was the income on sale of lands in 2016 if the income on sale of lands in 2017 was $7,722,235.00.
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Minutes of the 59th AGM 9.1.4.1 In response, the General Manager informed that the income on sale of lands in 2016 was $848,155.
9.1.5 Mr. White observed that the income from these sales in 2018 was 28% over that of 2017 and enquired whether the dwindling increase was of concern to the Board. He was concerned about further decrease in the income and about whether the Credit Union would be able to sustain any further increase of income from sale of lands at Bacolet Park.
He said the Board needed to take a critical look at the situation.
9.1.5.1 In response, the Chairman asked Mr. White to recommend a solution to remedy his concern. He reminded Mr. White that the issue is a finite pool the Credit Union may have to explore the option of developing the balance of our existing lands or purchase new lands to develop. 9.1.5.2 Mr. Denzil White recommended that the Credit Union use income from the sale of lands to increase undivided earnings to ensure our financial security in the future. 9.1.5.3 The Chairman informed that Mt. Pleasant Credit Union had obeyed law with regard to the statutory limit of 10% of the surplus automatically towards undivided earnings.
9.1.6 Mr. Victor Laptiste said that in 2017 there was a Bye-Laws Committee and a report was presented to the Board for review and subsequent response from the Board. He said that the review was not mentioned in the Board of Directors’ Report.
9.1.6.1 In response, the Chairman informed that the Board had not deliberated on the Bye-Laws’ Committee’s report. He apologized to the membership and promised that the review would be done in the ensuing year. 9.1.6.2 Mr. Laptiste informed that the Committee spent a long time on the report to include recommendations and he was disappointed that the Board had not reviewed the report.
9.1.7 Mrs. Gail Remy-Rajkumar asked if completed sales of lands at Bacolet amounted to ($7,722,235) and the outstanding payments were ($8,500,000) where was it reflected in the financial report.
9.1.7.1 In response, the General Manager said that as at February 2018 the outstanding sum reflected outstanding amount to be collected to close sales in Phase II, Bacolet Park but would not be reflected in the financials.
9.1.8 Mrs. Gail Remy-Rajkumar enquired whether the General Manager was reporting on a cash basis or on an accrual basis . 9.1.8.1 The Chairman asked whether Mrs. Gail Remy-Rajkumar understood the explanation given by the General Manager. 9.1.8.2 Mrs. Gail Remy-Rajkumar confirmed her acceptance of the explanation.
9.1.9 The Chairman said that Mt. Pleasant Credit Union was reaping the benefit of good decision making. He said that statutory bodies had hampered the receipt of approvals which resulted in the delays of the collection of outstanding payments from property owners. 9.1.10 Mrs. Lucille George-Percy observed that Mr. Bobby Andrews had been paid by Mt. Pleasant Credit Union to do a job years ago and to date he had not reported on developments of the task.
She enquired what were we doing about the issue.
Mrs. Lucille George Percy recommended that Mr. Andrews be given a legal letter.
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Minutes of the 59th AGM 9.1.11 Mrs. Marcia Jones Clark requested information on the status of street lighting at Bacolet Park Development.
9.1.11.1 In response, Mr. Joseph Henry informed that Mt. Pleasant Credit Union had paid a Capital contribution of $500,000.00 to TTEC.
He said the Credit Union invited quotes and selected a suitable person to install bases for the lights.
9.1.12 Motion 9.1.12.1 9.1.12.2
Mr. Henry said that installation of the street lights should be completed by the end of 2018.
A motion for the acceptance of the Board of Directors’ Report was Moved by: Mr. Denzil White Seconded by: Ms. Monique Timothy The motion was carried.
9.1.13 Introduction of the Members of Staff 9.1.13.1 The Chairman introduced the members of staff to the wider members of the Credit Union and invited guests. 9.1.13.2 He specially introduced Mrs. Lamina Woods Ollivierre and Ms. Akeisha Lewis as the two (2) employees who were responsible for the design and production of most of the tokens.
9.2 Report of the Credit Committee 9.2.1 Mrs. Gail Remy-Rajkumar enquired what was “Christmas Loan Special” and about the difference between “Vacation” and “Recreation and Vacation” loans.
9.3
Also, she requested clarification on the number of loans given reported as 1518 on page 34 and 1527 on page 33.
9.2.1.1 In response, Mr. Denzil White provided the following information: a) the Christmas Loan Special was a loan given for Christmas celebrations and the Credit Union capitalised on the opportunity to offer its members an attractive package instead of leaving them to go to other institutions; b) the Vacation and Rec/Vacation loans were the same (which would be corrected in future reporting); c) the amount of loans given should be amended to reflect the same figure on pages 33 and 34 .
9.2.2 Motion 9.2.2.1 A motion for the acceptance of the Credit Committee’s Report was Moved by: Mrs. Gail Remy-Rajkumar Seconded by: Mrs. Patricia Benoit 9.2.2.2 The motion was carried.
Report of the Supervisory Committee 9.3.1 The report was presented by Ms. Achi-Kemba Phillips, Chairperson of the Committee. 9.3.2 The report was taken as read.
9.3.3 Mr. Robert W Dillon enquired whether recommendations had been made in relation to the work done by the Committee and the challenges encountered by the Auditors.
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Minutes of the 59th AGM 9.3.3.1 In response, Ms. Achi-Kemba Phillips informed that under all areas presented recommendations were provided.
9.3.4 Mr. Victor Laptiste questioned whether the Mt. Pleasant Credit Union had a Marketing Plan.
He said that he observed in the Supervisory Committee’s Report that the Committee was unable to look at a Marketing Plan.
Mr. Laptiste questioned why was the Marketing Plan which would guide our Marketing efforts not executed.
He said that Mt. Pleasant Credit Union had been projected as Tobago’s choice and he was disappointed.
9.3.4.1 Ms. Achi-Kemba Phillips informed that at the last Annual General Meeting it was recommended that all Committees be audited. She said that at the time the exercise was being conducted the Marketing Committee was not available for an audit. 9.3.4.2 In response, the Chairman of the Marketing Committee, Mr. Ruel George said that the Committee was not structured at the time. He also informed that there was a Marketing Supervisor, Ms. Judy Radgman, but that there would always be need for improvement. 9.3.4.3 Mr. Victor Laptiste enquired whether the Supervisory Committee was aware of the information provided by the Marketing Committee. He reminded that the financial industry was saturated with competitors. He made reference to areas in Tobago where there were no Credit Unions and questioned whether there was consideration in the plan to accommodate his concern. 9.3.4.4 In response, the Chairman said that Mt. Pleasant Credit Union was in the very large category of Credit Unions in Trinidad and Tobago with over (14,000) satisfied members. He said that Mt. Pleasant Credit Union was far and away Tobago’s choice and the explanation given by the Chairman of the Marketing Committee was clear.
9.3.5 Ms. Marcia Jones requested clarification whether the Supervisory Committee reported that there was no appraisal system in place.
9.3.5.1 In response, Ms. Achi-Kemba Phillips made reference to the report which said that only the templates were reviewed, but specific setting of the individual targets and the actual conducting of annual appraisals for each member of staff were outstanding. She said that there was need for action and improvement in this area.
9.3.6 Credentials Report
9.3.6.1 At 6:00pm, the Chairman reported that there were Two Hundred and Ninety-One (291) persons present.
9.3.6.2 The breakdown was as follows: Privileged Members Board and Committees Staff Invited Guests
- 236 - 22 - 21 - 12
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Minutes of the 59th AGM 9.3.7 The Chairman recognized persons who represented other Credit Unions as follows: CFF The Tobago Chapter Lambeau Credit Union Bethel Credit Union The Co-operative Department (T’go) The Co-operative Department (T’go) Tobago Taxi Co-op Credit Union Whim Credit Union CLICO Credit Union The Tobago Chapter
Mr. Marlon Charles Mr. Samuel Charles Mr. Nigel Duke Mr. Jimmy Paul Ms. Morisher Woods Mr. Julien Lewis Mr. Nelton Roberts Ms. Melva Joefield Mr. Collis Holder Craig Ms. Catherine Arthur Phillips
9.3.8 Ms. Cherry Marcelle said that the Credit Union needed to do a site visit. She said that nothing was being done at BAID (Bon Accord Integrated Development) with regard to the illegal dumping, overgrown verges and plots and the drainage issue.
She said that she had been faced with the issue for the past three (3) years.
9.3.8.1 The Chairman invited the Property Supervisor, Ms. Ann Marie Forde to respond to Ms. Marcelle’s concerns. 9.3.8.2 In response, the Property Supervisor said that most members were familiar with the Credit Union’s bold initiative to purchase and develop land for its members.
She urged Ms. Marcelle to take a closer look at the covenant signed by her, and she would find the clauses with regard to (i) keeping your property clear to avoid vermin and (ii) it was the property owner’s responsibility to keep borders of the property cleaned at all times to allow for free flow of water in the drains.
Ms. Forde said that the Credit Union had written to all relevant property owners, and that at least five (5) meetings were held with the Tobago House of Assembly to takeover maintenance of roads and verge. The THA sent small teams from time to time, which was ineffective.
She said that the only other option was the Court of law which would be extremely expensive and could not be afforded, but she hoped that the property owners would co-operate.
9.3.9 Mr. Kyle Andrews observed that the Supervisory Committee would have done sample testing during their audit so he wished for emphasis to be placed on things like dormant accounts as a key area of the audit. 9.3.9.1 Ms. Achi-Kemba Phillips promised that the area of dormant accounts would be looked at during the next audit.
9.3.10 Motion 9.3.10.1 A motion for the acceptance of the Supervisory Committee’s Report was Moved by: Mr. Robert W Dillon Seconded by: Ms. Marcia Jones 9.3.10.2 The motion was carried.
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Minutes of the 59th AGM 9.4
Report of the Education Committee 9.4.1 The Education Committee’s Report was presented by Ms. Delva Wilson.
9.4.2 Mrs. Elizabeth Jerry-Phillips enquired about the attendance of only one (1) meeting by Mr. Ruel George.
9.4.2.1 In response, Ms. Wilson referred to earlier information in the report that Mr. Ruel George was assigned by the President to chair the Marketing Committee.
9.4.3 Mr. Victor Laptiste enquired about the charge for the use of land at Sherwood Park from constructing a Commercial Building to a new initiative of planting short term crops.
9.4.3.1 In response, the Chairman reminded Mr. Victor Laptiste that he had been present at all Annual General Meetings when the issue was raised and the Chairperson of the Supervisory Committee was well informed.
He informed that the Credit Union had put a hold on the project.
9.4.4 Amendment – The Education Report 9.4.4.1 Page 43, 3.1.8, the heading “Community Development Project” should be deleted.
9.4.5 Ms. Achi-Kemba Phillips referred to the Drapery and Dress Making Classes being offered by the Education Committee on an already conservative budget.
She recommended the Committee retain these funds and partner with the Division of Community Development to offer training in financial literacy to the membership.
9.4.5.1 Ms. Delva Wilson said that the recommendation would be considered by the Committee. 9.4.5.2 The Chairman said that the Credit Union would focus on other areas of financial training more in keeping with what the Credit Union was attempting to promote.
9.4.6 Ms. Merle Tobias said that as an educator she had the desire to see Mt. Pleasant Credit Union educate its members to do simple things e.g. completing vouchers to do simple transactions like depositing and withdrawing funds.
She wished that the Credit Union take the initiative to assist its members with their basic needs instead of engaging the Division of Community Development which was already saturated throughout the island.
9.4.6.1 In response, Ms. Delva Wilson advised that Mt. Pleasant Credit Union was ready and willing to serve and welcomed members to present their ideas outside of the Annual General Meeting.
9.4.7 Mr. Moses Thomas focused on training for members and recommended that in a technologically driven era the Credit Union could use social media as a platform for training which would serve to enhance Mt. Pleasant Credit Union’s business. 9.4.7.1 Ms. Delva Wilson said the Credit Union could incorporate Mr. Thomas’s idea.
9.4.8 Mrs. Gail Remy-Rajkumar said that she liked the idea of using social media for the purpose of training and educating but she observed that the Credit Union’s website needed to be updated. 9.4.9 Motion 9.4.9.1 A motion for the acceptance of the Education Committee’s Report as amended was Moved by: Ms. Monique Timothy Seconded by: Mrs. Joyce Moore-Burris 9.4.9.2 The motion was carried.
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Minutes of the 59th AGM 10. Auditor’s Report & Financials
10.1 The Auditor’s Report was presented by Ms. Cathyann Duncan.
10.2 The Chairman enquired from Ms. Duncan whether there was a reason for Mr. Pierre’s absence.
10.3
10.2.1 In response, Ms. Duncan informed that Mr. Pierre was out of the country. The Chairman invited questions and comments on the Financials.
10.3.1 Mr. Denzil White questioned whether or not it was abnormal to not have the Auditor present or a representative.
He said that he could not remember Mr. Pierre being present at any of our Annual General Meetings. 10.3.1.1 In response, the Chairman advised that Ms. Duncan was a representative of the Firm and that she was acceptable if the principal (Mr Pierre) was unavailable.
10.3.2 Mrs. Gail Remy-Rajkumar requested the interest rate on loans.
10.3.2.1 In response, the General Manager, Mr. Louis Charles provided the following information: (a) .67% – New Vehicle purchase (b) .0604 – Mortgage loans (all approvals completed) (c) 1% – Regular consumer loans (d) 1.25% – Special loans
10.3.3 The Chairman enquired from Mrs. Remy-Rajkumar what was the motivation for her question.
10.3.3.1 In response, Mrs. Remy-Rajkumar said that she compared both years and based on her calculation on the return on total loans the rate was 10.8%. 10.3.3.2 In response, the Chairman said that there might be focus on what we earned if we were not aware of variable rates.
10.3.4 Ms. Merle Tobias enquired whether the Chairman was aware of Cryptocurrency and forex trading and questioned where did Mt. Pleasant Credit Union intend to lead us in that regard.
10.3.4.1 In response, the Chairman advised that one of Mt. Pleasant Credit Union insights was democracy.
He informed that while individuals were embracing the challenge, financial institutions had not invested in cryptocurrency.
With regard to forex trading, the Chairman said that the Credit Union would have to lobby with Central Bank in the future.
He told Mrs. Tobias that the Credit Union would have to seek the permission of the membership. 10.4 Motion 10.4.1 A motion for the acceptance of the Financials was
Moved by: Ms. Pearlesta Moses Seconded by: Mr. Kevon Patrick
10.4.2 The motion was carried.
17
Minutes of the 59th AGM 10.5 Credentials Report 10.5.1 At 7:40pm, the Chairman reported that there were Two Hundred and Ninety-five (295) persons present at the meeting. 10.5.2 The breakdown was as follows:
Privileged Members Board and Committees Staff Invited Guests
11. Election of Officers
– 240 – 23 – 21 – 11
11.1 The Co-operative Officer, Mr. Julien Lewis agreed to be the returning officer for the elections. 11.2 Mr. Lewis declared the available positions vacant. 11.3 The results of the elections were as follows:
Board of Directors NAMES Votes
Mr. Ruel George
119
Mrs. Aneika Benoit Edwards (1st Alternate)
91
Mr. Carlton Guy
Mrs. Joyce Moore-Burris
Mrs. Gail Remy-Rajkumar (2nd Alternate)
Credit Committee
Names
98
82
Votes
Ms. Anne Rollocks-Broome
132
Mr. Nicholas McKenna
132
Mr. Herbert De Lancy
126
Mr. Denzil White
125
Mr. Carl Gill
Mrs. Marcia Jones (1st alternate)
100
Mrs. Nicole Richardson (2nd alternate) Supervisory Committee
Names
115
107 86
Votes
Ms. Keishel Percy
143
Ms. Achi-Kemba Phillips
118
Ms. Monique Timothy
Mr. Kevon Patrick (1st Alternate)
Ms. Carnetta Noray-Brathwaite (2nd Alternate)
18
109
107 89
Minutes of the 59th AGM 11.4 Destruction of Ballots 11.4.1 A motion for the destruction of the ballots was Moved by: Mr. Julien Skeete Seconded by: Ms. Achi-Kemba Phillips 11.4.2 The motion was carried.
12. Operating Budget
12.1 A motion for the acceptance of the operating budget was:
Moved by: Mr. Ruel George Seconded by: Ms. Achi-Kemba Phillips
12.2 The motion was carried.
13. Resolutions
13.1 The following resolutions were carried: 1 Appointment of Auditors
WHEREAS the Commissioner for Cooperative Development has an approved list of persons/ firms for the conducting of the Statutory Annual Audit of Cooperative Societies under Section 51(1) of the Cooperative Societies Act, AND WHEREAS Anthony P. Pierre & Company Chartered Accountants are so listed,
BE IT RESOLVED that Anthony P. Pierre & Company Chartered Accountants be appointed as the auditors of Mt. Pleasant Credit Union Cooperative Society Limited for the financial year ending December 31, 2018.
Moved by: Mr. Ruel George Seconded by: Mrs. Joyce Moore-Burris
2. Maximum Liability
WHEREAS the Cooperative Societies Regulations Section 1 require a General Meeting of members to fix the Maximum Liability a society may incur,
BE IT RESOLVED that the Maximum Liability to be incurred by Mt. Pleasant Credit Union Society Limited remain at seventy million dollars ($70,000,000.00) for the year ending December 31, 2018.
Moved by: Mr. Herbert De Lancy Seconded by: Mrs. Gail Remy-Rajkumar
19
Minutes of the 59th AGM 3. Distribution of Surplus
WHEREAS Mt. Pleasant Credit Union Cooperative Society Limited has realized a surplus of $10,640,922.00 for the year ended December 31, 2017
AND WHEREAS Bye Laws 19(b) and (d) allow for the payment of dividends, interest on deposits, and a rebate of loan interest,
i) A share dividend of 6.00% approximated to $7,854,275.00 ii) Interest of 0.60% on deposits approximated to $158,305.00 iii) A rebate of 1.50% of interest on loans approximated to $267,742.00 be paid to members for the year ended December 31, 2017.
AND WHEREAS our undivided earnings now stand at $19,927,982.00,
BE IT RESOLVED that
BE IT FURTHER RESOLVED that, where any member’s loan is in arrears, the said dividend, interest on deposits, and rebate of interest on loans due be credited to the member’s loan account and, where loans have been liquidated, any interest due be credited to the member’s deposit account. Moved by: Mr. Julien Skeete Seconded by: Mrs. Gail Remy-Rajkumar
4. Honoraria
WHEREAS the members of the Board of Directors, Credit Committee, Supervisory Committee, and other Committees have served during the periods under review,
BE IT RESOLVED that, in accordance with Bye Laws 19(e) and 28(g), this 58th Annual General Meeting approve Honoraria in the amount of seven hundred and sixty-two thousand, three hundred and ninety-six dollars ($762,396.00) for distribution among the members of said Board and Committees for the year ended December 2017 in accordance with a formula determined by the Board.
14. Greetings
Moved by: Seconded by:
Mr. Nicholas McKenna Mrs. Joyce Moore-Burris
The following guests brought greetings:
Mr. Marlon Charles Mr. Nigel Duke Mr. Nolton Roberts Ms. Catherine Arthur Phillips Mr. Jimmy Paul Mr. Julien Lewis
– CFF – Lambeau Credit Union – Tobago Taxi Co-op. Credit Union – The Tobago Regional Chapter – Bethel Credit Union – The Co-operative Department
20
Minutes of the 59th AGM 15. General Business 15.1 Mr. Victor Laptiste suggested that there was need for the Credit Union to have a signature event.
He said the industrialization and commercialization of persons with skills was crucial especially in the creative industry.
Mr. Laptiste wished that Mt. Pleasant Credit Union could be the organization to spearhead the movement. 15.1.1 In response, the Chairman requested that Mr. Laptiste send a position paper on his initiatives to the Board.
15.2 Ms. Dencia White enquired about the reason for holding the Annual General Meeting during the week as opposed to on a Sunday as members were accustomed to.
She observed that a Sunday was more accommodating to members.
15.2.1 In response, the Chairman said the Board would like to hold its Annual General Meeting on a Sunday but would strive for the first quarter.
15.3 Ms. Sandra Daniel informed that she had an issue with Claims Consultants .
She said that the Credit Union phoned her to inform her that her sons had turned 18 years and could no longer be accommodated on her policy. She said that despite the situation, the Credit Union continued to send funds to Claims Consultants. Ms. Daniel informed that the issue had since been regularized by the General Manager.
She suggested that Claims Consultants pay a visit to the Annual General Meeting to educate members. She said that there were other affected persons and the issue was not being addressed.
15.3.1 In response, the Chairman requested that Ms. Sandra Daniel write the Secretary on the issue and the Board would seek to address same.
16. Adjournment
16.1 There being no further business, the Chairman thanked the attendees for allowing the Board to account for its stewardship. 16.2 The meeting was adjourned at 8:50 p.m. Respectfully submitted, Cislyn James Secretary
21
Board of Directors 2018 Mt. Pleasant Credit Union Cooperative Society Ltd
Dr. Winford James President
Dr. Carlton Guy Director
Mrs. Cislyn James Secretary
Mrs. Joyce Moore-Burris Assistant Secretary
Mr. Ruel George Director
Mr. Herbert De Lancy Director
Mr. Nicholas McKenna Director
Mr. Julien Skeete Director
22
Mr. Joseph Henry Director
Mt. Pleasant Credit Union Cooperative Society Ltd
Board of Directors
Report of the
1.
Introduction The Board of Directors has the pleasure of submitting its Annual Report for the financial year ended December 31, 2018. The report includes key developments undertaken during the period spanning the last Annual General Meeting and this one.
2.
We anticipate your full participation in the deliberations.
The Board comprised:
Board Composition And Tenure
NAME OFFICE Dr. Winford James President Dr. Carlton Guy Director
Mrs. Cislyn James
Mrs. Joyce Moore-Burris
Secretary
Assistant Secretary
Mr. Ruel George Director Mr. Herbert De Lancy Director Mr. Nicholas McKenna Director Mr. Julien Skeete Director Mr. Joseph Henry Director
The following members’ term ends at this 60th Annual General Meeting (2019): Dr. Winford James Mr. Herbert De Lancy Mr. Nicholas McKenna
The following members’ term ends at the 61st Annual General Meeting (2020):
Mrs. Cislyn James Mr. Joseph Henry Mr. Julien Skeete
The following members’ term ends at the 62ndAnnual General Meeting (2021): Dr. Carlton Guy Mrs. Joyce Moore-Burris Mr. Ruel George
23
Report of the BOARD OF DIRECTORS 3.
Meetings Eighteen (18) meetings were held during the two (2) periods, of which eight (8) were Statutory Board meetings, three (3) were Executive meetings, seven (7) were Special meetings. The table below displays the attendance of Board Members. NAME OFFICE
STATUTORY EXECUTIVE (8) (3)
Dr. Winford James President
07
Dr. Carlton Guy Vice President
Mrs. Cislyn James
Mrs. Joyce Moore-Burris
Secretary
Assistant Secretary
08 07
03
03
03
Mr. Joseph Henry Director
07 NA
Mr. Nicholas McKenna Director
05 NA
Mr. Herbert De Lancy Director Mr. Julien Skeete Director
08 NA 07 NA
Mr. Ruel George Director
4.
06
03
06 NA
SPECIAL (06)
OTHER (01)
06
01
04
06
06
06 06
01
01
01
01 01
06 NIL
06 NIL 06
01
Financial Performance for the Financial Year 2018 General The Credit Union’s operations surplus for 2018 amounted to $11,564,033.00, an increase of $923,111.00 (8.7%) over 2017 ($10,640,922.00). Revenue Our loan interest income increased to $18,941,197.00 or by $1,091,706.00 (6.10%) over the amount for 2017 ($17,849,491.00)., due to the increase our loan’s portfolio. Our investment income increased by $20,583.00 to $302,582.00, which was a 7.3% increase over 2017 ($281,999.00).
4.2.2 Our income, consisting of interest from loans, income from investments, income from the net sale of lands, and miscellaneous income, amounted to $21,507,207.00 – an increase of $696,406.00 (3.3%) over the amount for 2017 ($20,810,801.00).
Expenses Our administrative expenses amounted to $4,969,365.00, which is a decrease of $33,606.00 (0.7%) over the amount for 2017 ($5,002,971.00). Financial Position
Loans Our loans portfolio now stands at $175,580,547.00, representing an increase of $2,868,572.00 (1.7%) over $172,711,975.00 in 2016.
Shares Our members’ shares portfolio increased by $10,817,655.00 (7.7%), moving from $141,186,242.00 in 2017 to $152,003,897.00 in 2018.
24
Report of the BOARD OF DIRECTORS Members’ Deposits Members’ deposits increased by $4,121,059.00 or 8.3% moving from $49,699,971.00 in 2017 to $53,821,030.00 in 2018.
New Members Seven hundred and eighty six (786) new members joined the Credit Union in 2018 depositing funds in the amount of $5,850,890.88. Loans in the amount of $4,141,619.00. were granted to 76 of these members.
The total membership on record as at 31st December 2018 was 15,571. 2014
2015
2016
OPERATING INCOME
11,849,268
14,871,781
17,037,120
20,810,801
21,507,207
OPERATING SURPLUS (LOSS)
10,211,455
13,205,068
15,494,813
19,116,214
19,661,154
5,584,130
7,301,984
7,537,561
9,117,412
10,607,605
10,640,922
11,564,033
INCOME AND EXPENDITURE DATA OPERATING EXPENSES
ADMINISTRATIVE EXPENSES
SURPLUS/LOSS FROM OPERATIONS OTHER INCOME
TOTAL SURPLUS
BALANCE SHEET DATA TOTAL ASSETS
LOANS & ADVANCES
INVESTMENT - BACOLET MEMBERS’ SHARES
MEMBERS’ DEPOSITS
5.
$
$
1,499,663
1,578,702
4,627,325
5,905,191
138,150
85,903
5,722,280 171,821,305 102,405,107 29,667,847 91,032,079 35,586,908
2017
$
7,387,887
$
1,542,307
1,694,587
7,870,853
8,475,292
86,399
1,523,510
7,623,960
2018 $
1,846,053
8,097,121 956,428
199,949,526 224,145,278 242,671,199 258,643,830 131,590,463 157,658,019 172,711,975 175,580,547 30,205,221
29,486,738
23,288,012
19,641,883
41,877,662
46,212,784
49,699,971
53,821,030
107,642,060 126,096,668 141,186,242 152,003,897
Accounts Movements 2017-2018 The table below represents accounts movements over the period 2017-2018.
INCOME AND EXPENDITURE DATA
2017
2018
$ CHANGE % CHANGE
OPERATING INCOME
20,810,801
21,507,207
696,406
3.3%
OPERATING SURPLUS (LOSS)
19,116,214
19,661,154
544,940
2.9%
9,117,412
10,607,605
10,640,922
11,564,033
OPERATING EXPENSES
ADMINISTRATIVE EXPENSES
SURPLUS/LOSS FROM OPERATIONS SURPLUS FROM BACOLET TOTAL SURPLUS
1,694,587
8,475,292 1,523,510
25
1,846,053
151,466
8,097,121
(378,171)
956,428
(567,082)
1,490,193 923,111
8.9% -4.5%
16.3%
-37.2% 8.7%
Table continues on next page
Report of the BOARD OF DIRECTORS
2017
2018
$ CHANGE
% CHANGE
242,671,199
258,643,830
15,972,631
6.6%
23,288,012
19,641,883
(3,646,129)
-15.7%
53,821,030
4,121,059
8.3%
BALANCE SHEET DATA TOTAL ASSETS
LOANS & ADVANCES
172,711,975
INVESTMENT - BACOLET MEMBERS’ SHARES
141,186,242
MEMBERS’ DEPOSITS
49,699,971
175,580,547 152,003,897
2,868,572
10,817,655
Surplus TOTAL STotal URPLUS FOR THE YEAR 12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
2014
2015
2016
2017
2018
members’ shares MEMBERS' SHARES 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0
2014
2015
2016
26
2017
2018
1.7% 7.7%
Report of the BOARD OF DIRECTORS
OPERATING INCOME 25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2014
2015
2016
2017
2018
MEMBERS' DEPOSITS 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 0
2014
2015
2016
2017
2018
TOTAL ASSETS 300,000,000 250,000,000 200,000,000 150,000,000
27 TOTAL ASSETS
10,000,000 0
2014
2015
2016
Report of the BOARD OF DIRECTORS
2017
2018
TOTAL ASSETS 300,000,000 250,000,000 200,000,000 TOTAL ASSETS
150,000,000 100,000,000 50,000,000 0
2014
2015
2016
2017
2018
LOANS & ADVANCES 180,000,000 160,000,000 140,000,000 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0
2014
2015
2016
28
2017
2018
Report of the BOARD OF DIRECTORS 6.
Delinquency 1. Introduction The Delinquency Committee, a sub-committee of the Board of Directors, was appointed in July 2018. The main role of this Committee is to monitor loans which are in arrears and to recommend and pursue all possible means of recovering the society’s funds in keeping with policy of the credit union and within the confines of the Cooperative Societies Act 1971, Ch 81:03. During the term now ended the Committee held nine (9) meetings and participated in one training session conducted by Mr. Jerome Chambers of Global Forensics. The Committee is pleased to present its report.
2.
Meetings and Attendance Committee Member
Position
Meetings
Mr. Herbert De Lancy Chairman
9
Mrs. Lucille George-Percy
7
Mrs. Patricia Benoit
Mr. Carl Gill Credit Committee
Secretary Member
Mr. Louis Charles
3.
4.
General Manager
Mrs. Delle Paul-Alexander CPO II
7
9
9
9
Focus of the Committee • Disposal of Repossessed Assets ensuring that valuation and resale procedures were adhered to. • Concentration on delinquent accounts which, singly and combined, adversely impact the PEARLS Ratio. These accounts are held by less than ten (10) members but account for more than 2 % of the delinquency ratio. • Site visits and one-on-one consultations with members whose loans are in arrears and whose loans have a significant impact on the ratio. Also, members whose loans are approaching an arrears position are subject to one-on-one consultation. • Lack of timely action on matters referred to the Department of the Commissioner of Cooperatives. • Strategies to address delinquency. • Adequate staffing of the loans department. Delinquency Performance Using the PEARLS Ratio The PEARLS ratio is a recognized accounting system used within the credit union sector to measure performance. Delinquency falls under the A- “Asset Quality” measurement and is calculated as a percentage of the total loan portfolio. The recommended acceptable ceiling rate for delinquency according to the PEARLS system is less than 5% of the loans on the financial statements of the organization at any point in time.
The acronym PEARLS is explained as follows P Protection E Effective Financial Structure A Asset Quality R Rates of Return and Costs L Liquidity S Signs of Growth
29
Report of the BOARD OF DIRECTORS 5.
The following are the monthly rates of delinquency over the period January 2018 to December 2018.
MONTH January 2018
February 2018
March 2018
April 2018
May 2018
June 2018
July 2018
August 2018
September 2018
October 2018
November 2018
December 2018
PERCENTAGE
MONTH PERCENTAGE
4.18 % January 2017
6.57 % February 2017
4.49 %
March 2017
6.18 %
April 2017
6.59 %
May 2017
6.65 %
August 2017
7.66 % June 2017
7.10 % July 2017
6.21 %
September 2017
5.02 % October 2017
7.51 % November 2017
8.06 % December 2017
3.39 %
2.74 %
3.01 %
3.11 %
4.02 %
5.28 %
3.57 %
6.12 %
4.40 %
5.16 %
5.41 %
5.26 %
These ratios represent the delinquency status of the credit union for the reporting period. Highlights are as follows:
6.
The number of loans in arrears as of 28 December 2018 was 220. The arrears as of 28 December 2018 was $4,516,976.00. This represents an increase of $1,197,829.00 (36%) over the figure as at 28 December 2017 ($3,319,147.00). Way Forward In the context the following actions will therefore be vigorously pursued:
• Use of national media to bring delinquent account holders into the institution for discussions • Development of a structured system of site visits in respect to mortgage loans • Increased staffing of the loan department to ensure timely implementation of monitoring actions.
The committee wishes to express its gratitude to the Board of Directors for the opportunity to serve during these challenging times.
30
Report of the BOARD OF DIRECTORS 7.
Land & Building 1. Introduction The Land & Building Committee resumed activities in July 2018.
2. Meetings and Attendance There were nine (9) meetings held during the period 14/07/2018 to 12/03/2019. The table below represents the attendance of the Committee members. NAMES
POSITION
Mrs. Cislyn James Chairperson
9
Mr. Herbert De Lancy
5
Mrs. Gloria Moore-Carrington
Secretary
Mr. Curtis Williams
Member
Mr. Joseph Henry
Member
Member
Mr. Julien Skeete
Member
Mr. Louis Charles
Member (Staff Support)
Ms. Edris Ann-Marie Forde
Member (Staff Support)
Ms. Roxanne Herbert
3.
MEETINGS
Member (Staff Support)
5 8
8 6
9
9 8
Proposals A proposal for the period 2018-2019 was presented to the Board for its consideration and approval as follows:
Land Use – Bobb Manswell Trace and Sherwood Park The Committee proposed that a wall fence should be erected at the eastern and northern sides and the chain link wired fence would be refurbished.
The Education Committee would use the property for the planting of short-term crops by our members.
Quotes for the job of finishing the fencing were received but the costs were too high. The Committee would seek other quotes.
5.
Construction of Road at the back of the Sewer Treatment Plant at BAID Mr. Achille, our surveyor was requested to do survey of lands at the back of the sewer treatment Plant. A contingent of the Committee would meet with Trinidad Contractors to provide a quotation to construct the road at the back of the development. The Committee envisions that the road will provide an alternative route out of Pigeon Point.
Construction of Commercial Space at Bacolet Park on the 1 acre plot formally known as the Gas Station Site. The Committee proposes to construct a Strip Mall that would provide commercial services to the developments on either side of Bacolet and its environs. Construction of the Mall would include rental space for conferences. Mt. Pleasant Credit Union would save on expenses for rental spaces to hold Annual General Meetings and other conferences. The space would also be rented to organizations who would have need of rental space for conferences. 4.
31
Report of the BOARD OF DIRECTORS 6. Plot distribution at the Village Extension of Bacolet Park Development The surveyor has completed the surveys of the Phase I of the Village Extension. Phase I would yield approximately 16 plots. The Board awaits approval from Town & Country before these lands are distributed. Drawings have been submitted to Town & Country in January 2019. Phase II of the Village Extension has proven to be more challenging due to encroachment from squatters. The surveyor promised he would find an alternative measure to rectify the anomalies. 7. Alternative Exit from Bacolet Park Development Plans are being considered to construct an alternative route out of the Development. 8.
9.
Meeting with the Tobago House of Assembly (THA) re: Replacement of lands and payment for lands at BAID The Committee along with the President met with the Chief Secretary re outstanding matters involving lands at BAID. The Committee suggested to the Chief Secretary that since Courland Phase II was by his admission a long way off from being finished that the Tobago House of Assembly should give us a portion of the lands purchased from us at Bacolet Park Development as replacement for the lands passed on to WASA in respect of the expansion of the sewer plant at BAID. The Committee also enjoined upon the Chief Secretary to accelerate the process of the construction of separate agreements for sale involving WASA re the sewer plant and the adjacent north parcel. The Chief Secretary instructed his State Counsel who had earlier replaced a retired State Counsel to take steps to collaborate with the Mt. Pleasant Credit Union’s attorney to advance the process. The matters are still under active consideration by both parties. The installation of Street Lights at Bacolet Park Phase II With the assistance of Director Joseph Henry, this initiative was realized in March 2019, resulting in additional security for property owners in Bacolet Park Phase II.
10. Conclusion The Committee will continue to support the initiatives of the Board and provide expertise where necessary in the interest of the growth and development of our privileged members.
8. Marketing 1. Composition of Marketing Committee The Committee was comprised of the following members.
NAME OFFICE meetings (6) Mr. Nicholas McKenna Chairperson
6
Mr. Ruel George
4
Mrs. Diane Martin-John
Secretary
Mr. Wendell Walker
Member
Mrs. Aneika Edwards
Member
Member
Mr. Louis Charles
General Manager
Ms. Judy Radgman
Marketing Supervisor
32
2
1
5
4
5
Report of the BOARD OF DIRECTORS 2. Focus of the Committee The following were the issues on which the Committee focused:
• Sensitization of the Board of the need for a new strategic plan • Conduct of research into strategic purposes and marketing • Examination of products and services of various other Credit Unions.
3. INITIATIVES The following are ideas that the Committee has been engaged with: • • • •
Free access by members to Wi-Fi on the two compounds Adoption of cause, e.g., diabetes, autism, illiteracy Digital marketing Targeted marketing.
4. Other Plans The Committee is currently focusing on the following for 2019:
• A video competition among secondary school students on a topic to be determined. • A “Jeopardy” type quiz for students on the co-operative movement • Recognition of new babies born on 23rd May as a way of commemorating the birth of Mt. Pleasant Credit Union. • Introduction of a Youth arm of MPCU • A 70th Anniversary cruise for members.
5. Conclusion The Committee thanks the Board of Directors for the opportunity to be of service to our Credit Union.
We will continue to work with all stakeholders in the promotion and marketing of Mt. Pleasant Credit Union.
Respectfully,
Cislyn James Secretary
33
Staff mt. pleasant credit union
Louis Charles General Manager
Beverly Crooks Operations Supervisor
Kellese Graham Member Relations Officer I
Annette Lewis-Williams Accountant
Stacey Sandy-Doyle Administrative Assistant
Akeisha K. Lewis Member Relations Officer II
Lee-Ann Roberts Credit Portfolio Officer I
Delle Paul-Alexander Credit Portfolio Officer II
Lamina Woods-Ollivierre Akeen Murphy Loans Clerk Administrative Assistant
Rowena Cadiz Member Relations Officer II
Milio Providence Member Relations Officer I
Missing: Ornella Franklyn, Member Relations Officer I Tessa Clarke, Member Relations Officer I
Total HoldinGs
Kimberly Hacket Accounts Clerk
Roxanne Herbert Administrative Assistant
34
Ann Marie Forde Property Supervisor
Judy Radgman Marketing Supervisor
Adarfi Solomon Snr. Member Relations Officer II
Akeem Thomas Member Relations Officer I
Mt. Pleassant Credit Union Cooperative Society Ltd
Credit Committee
Report of the
Mr. Denzil White Chairman
Mr. Carl Gill Secretary
Mrs. Anne Rollocks-Broome Member
Mr. Nicholas McKenna Member
Mr. Herbert De Lancy Member
The Credit Committee of the Mt. Pleasant Credit Union Co-operative Society Ltd. is honoured to account to the membership regarding its stewardship for the Financial Year ending December 31, 2018. The dedication and efficiency of this Committee have assisted the Credit Union to achieve an increase in the surplus. We are pleased to report at this 60th Annual General Meeting (AGM) the work and achievement of the Credit Committee and the strong financial standing of the Mt. Pleasant Credit Union.
1.
Composition of Credit Committee
The Credit Committee consists of a group of dynamic and committed individuals with varying skills that are used to provide valuable services to the members, thereby keeping Mt. Pleasant Credit Union as Tobago’s choice.
The Committee consisted of the following members: NAME OFFICE
Mr. Denzil White Chairman
Mr. Carl Gill
Secretary
Mr. Nicholas McKenna
Member
Mrs. Anne Rollocks-Broome
Mr. Herbert De Lancy
Member
Member
35
Report of the Credit Committee
The election of the officers took place at the first meeting in July .
2.
Attendance
The Credit Committee dedicatedly met once weekly for the period under review in order to fulfil its obligation to the general membership. Additionally, whenever it was necessary to meet outside the regularly scheduled times, members were flexible to fulfil the demands.
In accordance with Bye-Law 39, section (a) of the Credit Union, the Credit Committee is responsible, for inter alia, the approval and general supervision of Loans to members of the Credit Union.
The following table shows the attendance of the members and their position on the Credit Committee. NAME OFFICE PRESENT ABSENT Names Position Held Number of meetings attended out of a total of
Mr. Denzil White Chairman
Mr. Carl Gill
Secretary
Mr. Herbert De Lancy
Member
Mr. Nicholas McKenna
Mrs. Anne Rollocks-Broome
Member
Member
33
35
31
31
30
3.
Field Visits and Monitoring
The Credit Committee was diligent and pro-active as they visited several loan applicants and recipients in their efforts to ensure effective and maximum use of loans granted, and to ascertain the status and feasibility of some projects. These site visits were very important and welcomed by the members we visited.
4.
Moreover, the Committee discussed with, and provided relevant information and advice to, some members concerning optimising their resources and preventing loans from becoming delinquent.
Training
5.
The Credit Committee members were exposed to training and workshops conducted by the Credit Union League. These programmes enhanced their skills and updated the Committee members in new strategies in dealing with credit assessment and delinquency control and reduction.
The following tables and charts provide a summary of the loans granted during the period under review.
Disbursement of Loans
36
Report of the Credit Committee
LOANS GRANTED 2018 (ALPHA ORDER) PURPOSE
AMOUNT
$ VALUE
%
AGRICULTURE 8 305,591 0.54% BUILDING 124 12,268,104 21.49% BUSINESS 69 4,598,604 8.06% CEREMONIAL 41 774,484 1.36% CHRISTMAS EXPENSES 114 1,508,071 2.64% CHRISTMAS LOAN SPECIAL 137 7,580,719 13.28% DEBT CONSOLIDATION 66 1,679,322 2.94% DIVIDEND TOPUP 35 210,945 0.37% DOMESTIC 249 1,478,258 2.59% EASTER LOAN SPECIAL 92 2,460,000 4.31% EDUCATION 81 1,662,476 2.91% EQUIPMENT 16 855,113 1.50% FURNITURE/APPLIANCE 32 650,988 1.14% INSURANCE 17 144,572 0.25% INVESTMENT 15 481,831 0.84% LAND 11 3,282,619 5.75% LEGAL 14 219,100 0.38% MEDICAL 38 468,388 0.82% RECREATION/VACATION 78 1,277,729 2.24% RENOVATIONS 129 3,678,194 6.44% RENT & RATES 1 7,000 0.01% REPAIR & MAINTENANCE 5 47,825 0.08% RESTRUCTURE 22 3,349,046 5.87% VEHICLE EXPENSES 89 1,521,583 2.67% VEHICLE PURCHASE 56 6,577,399 11.52% TOTAL 1539 57,087,961.81 100.00% LOANS GRANTED 2018 (VALUE ORDER)
PURPOSE
AMOUNT
$ VALUE
%
RENT/ RATES 1 7,000 0.01% REPAIR/MAINTENANCE 5 47,825 0.08% INSURANCE 17 144,572 0.25% DIVIDEND TOP-UP 35 210,945 0.37% LEGAL 14 219,100 0.38% AGRICULTURE 8 305,591 0.54% MEDICAL 38 468,388 0.82% INVESTMENT 15 481,831 0.84% FURNITURE/APPLIANCE 32 650,988 1.14%
37
Report of the Credit Committee PURPOSE
AMOUNT
$ VALUE
%
CEREMONIAL 41 774,484 1.36% EQUIPMENT 16 855,113 1.50% RECREATION/VACATION 78 1,277,729 2.24% DOMESTIC 249 1,478,258 2.59% CHRISTMAS EXPENSES 114 1,508,071 2.64% VEHICLE EXPENSES 89 1,521,583 2.67% EDUCATION 81 1,662,476 2.91% DEBT CONSOLIDATION 66 1,679,322 2.94% EASTER LOAN SPECIAL 92 2,460,000 4.31% LAND 11 3,282,619 5.75% RESTRUCTURE 22 3,349,046 5.87% RENOVATIONS 129 3,678,194 6.44% BUSINESS 69 4,598,604 8.06% VEHICLE PURCHASE 56 6,577,399 11.52% CHRISTMAS LOAN SPECIAL 137 7,580,719 13.28% BUILDING 124 12,268,104 21.49% TOTAL 1539 57,087,961.81 100.00%
6.
Conclusion The Credit Committee sincerely thanks the Management and Staff, especially the Credit Portfolio Officers, for their assistance and co-operation in discharging its duties, as we continue to make Mt. Pleasant Credit Union very profitable. Respectfully submitted,
Carl Gill Secretary Credit Committee
38
Mt. Pleasant Credit Union Cooperative Society Ltd
Supervisory Committee
Report of the
Ms. Achi-Kemba Phillips Chairman
1.
Ms. Monique Timothy Secretary
Ms. Kieshel Percy Member
Mr. Kevon Patrick 1st Alternate
Mrs. Carnetta NorayBrathwaite 2nd Alternate
Introduction
On the occasion of this 60th Annual General Meeting of the Mt. Pleasant Credit Union Cooperative Society Limited for the period June 2018 to April 2019, the Supervisory Committee is pleased to present this Report for your kind review.
In keeping with the Cooperative Society Act (No. 22 of 1971), Chapter 81:03 and the Bye Laws of the Mt. Pleasant Credit Union Cooperative Society Limited, the Supervisory Committee fulfilled its mandate of auditing and overseeing the operations of the Board and various Committees as well as the operations of the Credit Union and its Subsidiary.
2.
Composition of the Supervisory Committee
At the 59th Annual General Meeting, the membership voted for three (3) persons to serve on the Supervisory Committee, with two (2) persons elected to serve as 1st and 2nd Alternates. Internal elections were held at the Inaugural meeting of the Supervisory Committee to determine the positions members would serve in. The following are the decisions taken: Chairman: Secretary: Member: 1st Alternate: 2nd Alternate:
Ms. Achi-Kemba Phillips Ms. Monique Timothy Ms. Kieshel Percy Mr. Kevon Patrick Mrs. Carnetta Noray-Brathwaite
3.
Meetings of the Supervisory Committee
The Supervisory Committee held statutory meetings on the 2nd and 4th Thursdays of every month and also met at varying times during the year to complete the following:
• • • • • • • • • •
Cash count Bank reconciliation FIU compliance audit Loan sample files audit Preparation of booklet on roles and responsibility of the supervisory committee Performance management audits – Accountant and General Manager MPCU Board of Directors meetings Total holdings board of Directors meetings Audit of statutory committees Fixed asset register audit.
39
Report of the Supervisory Committee The Supervisory Committee held 24 statutory meetings, attended 12 MPCU Board Meetings, and 2 Total Holdings Board Meetings from the period July, 2018 to April, 2019. The first and second alternates were readily available as required.
Please see attendance register for statutory meetings outlined in the table below: Name
Number of meetings present
Ms. Achi-Kemba Phillips
23
Mr. Kevon Patrick
1
Ms. Monique Timothy
24
Mrs. Kieshel Percy
4.
23
Ms. Carnetta Noray-Brathwaite N/A
Committee Term Agenda
I. Audit of all Statutory and Other Committees – Creating a Strategic Direction One of the initiatives of the Supervisory Committee this year was to encourage the strategic focus of Committees. As such, all Committees were invited to submit their work-plans for the 2018-2019 year. We wish to thank the Education and Land & Building Committees for participating in this year’s strategic planning exercise. It is the hope of the Supervisory Committee that in the upcoming year, the Marketing, Credit, and Delinquency Committees, and the Board of Directors, will participate in same. Recommendation: Preparing a work-plan is a key activity in setting strategic direction. The Supervisory Committee encourages all Committees, the Board, and Management to prepare strategic plans or work plans at the start of the new term to allow for effective planning and improved efficiency of the operations and success of the Credit Union.
II. Cash Count/Teller procedures Teller’s cash counts and procedure audits were completed at both branches of the Credit Union and Total Holdings. No discrepancies or errors were found, but variations in conducting processes were highlighted. Recommendation: Priority to be given for the completion and provision of Teller Manuals/Desk Manuals to ensure processes and procedures of the Credit Union are followed consistently.
III.
Substantive Testing This audit examines the Financial Statements and supporting financial documentation to identify any errors or omissions. The financial documents and processes reviewed included: 1. Bank statements 2. Investment portfolio 3. Loan disbursements and loan files 4. Bank reconciliation using cheque book stubs 5. Business operation processes 6. Management Letter.
Recommendation: Management Letter prepared by Auditor should be received within 1 month of AGM to allow Board of Directors and General Manager sufficient time to action items raised.
40
Report of the Supervisory Committee IV. FIU Compliance The Supervisory Committee reviewed the Quarterly Terrorist Property Report submissions of the Credit Union and the Request for Production of Information correspondence sent by the Financial Intelligence Unit of Trinidad and Tobago (FIUTT), providing name, date of birth, nationality and address. Letters from the Credit Union responding accordingly to the FIUTT were also reviewed.
Recommendation: Credit Union should continue to aim for 100% on-time submission of FIU Quarterly Terrorist reports. It was noted that the reporting procedures met the criteria set by the FIUTT.
V. Supervisory Committee – Role and Responsibilities Booklet During the year of the 2017 Supervisory Committee, it was noted that given the 1-year length of service on the Committee, there exists the possibility of a fully new Supervisory team being elected without the experience and ‘know how’ required to ‘hit the ground running’. As such, a handbook was drafted, which highlighted the roles and responsibilities, tasks, and audit procedures of the Supervisory Committee. The 2018 Supervisory Committee has updated this handbook and hopes to have it available to the next serving Committee, upon the approval of the Board of Directors.
5.
Recommendation: The handbook should be adopted and updated yearly by each committee as required.
Conclusion
The Supervisory Committee has executed its duties diligently within the time given to serve. While every process within the Credit Union provides an opportunity for audit, we believe that we have worked assiduously towards the completion of all tasks at hand. The Supervisory Committee wishes to encourage you, the membership, to get involved and explore opportunities to learn more about the functions and services that the Credit Union has available. Every interaction with the Credit Union and transaction processed provides you with an opportunity to be auditors of the Credit Union. Some of the ways you can be more prepared to participate in the auditing process are: − − − −
becoming more knowledgeable of the bye-laws of the Credit Union understanding how to fill in and read your Credit Union booklet not being afraid to ask a question being involved and being in the know of what is happening throughout the year.
We are the Credit Union and the Credit Union’s business is our business.
We continue to make ourselves available to serve as we work together for the furtherance of our dear Credit Union.
The Supervisory Committee wishes to extend special thanks to the general membership for entrusting us with the roles and responsibilities of your oversight Committee. The Supervisory Committee 2018 would like to specially thank Ms. Achi-Kemba Phillips for her service to the Credit Union on the Supervisory Committee for the past 3 years, and look forward to seeing her serve in other areas of the Credit Union. Respectfully submitted,
Monique Timothy
Secretary supervisory Committee
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Mt. Pleasant Credit Union Cooperative Society Ltd
Education Committee
Report of the
Dr. Carlton Guy Director
Ms. Earla Hazel Member
Mrs. Shirleen Robinson Secretary
Ms. Judy Radgman Marketing Supervisor
Mr. Julien Skeete Member
Ms. Delva Wilson Asst. Secretary
Ms. Ann-Marie Forde Property Supervisor
The Education Committee is pleased to present this report on its performance for the period from June, 2018 to March, 2019.
1.
Introduction
1.1 As stipulated in Bye Law 41, sections (a) to (f), the Board of Directors of Mt. Pleasant Credit Union (MPCU) appointed five (5) members along with the Property Supervisor and the Marketing Supervisor to form the Education Committee for the period June, 2018 to March, 2019. 1.2 The Committee is pleased to present this report on its performance for this 60th Annual General Meeting (AGM) of the Mt. Pleasant Credit Union Co-operative Society Limited. Meetings were typically held on the third Thursday of every month. 1.3 During the period under review, the Committee held a total of six (6) meetings. Hereunder are the composition of the members and a breakdown of their respective attendance at meetings. NAME
OFFICE
PRESENT ABSENT
Dr. Carlton Guy Chairperson
5
1
Mr. Julien Skeete
5
1
Mrs. Shirleen Robinson
Secretary
Ms. Delva Wilson
Asst. Secretary
Ms. Judy Radgman
Marketing Supervisor
Ms. Earla Hazel
Member
Member
Ms. Edris Ann-Marie Forde Property Supervisor
42
5
4
2
5 6
1
2
4
1 0
Report of the Education Committee 2.
Areas of Focus
The following were the areas of focus:
3.
Achievements
a. Advertisement of the newly elected Board of Directors and Committees b. Orientation of New Members of Committees c. Orientation of New Credit Union Members d. Community Development Project e. Credit Union month of activities f. Health Fair g. Edgar Davidson Bursary Awards Function h. Annual Christmas/New Year’s Dinner i. Elders’ Appreciation Day 70th Anniversary Celebration j. Motivational sessions at St. Patrick’s Anglican School k. Publication of the obituaries of former members.
3.1
Credit Union Month The significant role that Credit Union plays in the economy is marked by an annual international event which is celebrated by all Credit Unions. This year’s theme was “Find your Platinum Lining in Credit Unions”.
In commemoration of this event twenty-four (24) members attended the opening ceremony which was held at Skinner Park, San Fernando on 14 October, 2018. The closing ceremony was hosted by the Tobago Regional Chapter and ran from 25 October through 27 October, 2018 at the Rovanel’s Resort, Store Bay Local Road. Four (4) members participated in the education workshop. 3.1.1 Health Fair The Mt. Pleasant Credit Union Co-operative Society Limited participated in a Health Fair hosted by the Rotary Club of South West Tobago. The event took place at the Gulf City Mall, Lowlands on 16 November, 2018. The Committee used this opportunity as a marketing thrust.
3.1.2 2018 Edgar Davidson Bursary Award The 2018 Edgar Davidson Bursary Award was fashioned with a twofold purpose:
3.1.2.1 To provide an opportunity for our Credit Union to give back to our valued members; and 3.1.2.2 To allow MPCU to invest in our members educational endeavours.
The theme for this year’s function was “Education … Our Passport to the Future”.
This event was held at the Tobago Nutrition Building, Milford Road, Canaan on 11 November, 2018 at 3.00 p.m. The feature Speaker was Mr. Rion George, a former Bursary Awardee. His address was enlightening and interactive, which was greatly appreciated by all. All awardees received a bursary comprised of a cash award, a share certificate and an inspirational book.
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Report of the Education Committee 3.1.6. Fifteen (15) Secondary Entrance Assessment (SEA) awardees: The awardees were:
Tori Isaac Khaleel Job Johanna De Freitas-Martin Terell Mc Pherson T’sharae Alleyne Samuel Stewart Richard Alleyne Jr Shenequa Toby Aaron Aparcia Kerlon Douglas Xavay Balfour Naomi Scott Joshua Potts Shenique Phillips Shemeka Moses
3.1.7. Three (3) Caribbean Secondary Education (CSEC)awardees:
Treverra James Sharise Small Janade Fletcher 3.1.8
Four (4) Caribbean Advanced Proficiency Examination (CAPE)awardees:
Lorenz Small Aaron George
Shenica Balgobi Adelle James
3.1.9 Eight (8) Tertiary awardees:
Megan George Amanda Williams Crisonna Andrews Melisha Morgan Chinyere Balfour Jesse Potts 3.2
Annual Christmas/New Year’s Dinner
Gelize Mc Kellar Garve Sandy
The Mt. Pleasant Credit Union’s Annual Christmas/New Year’s Dinner took place on Saturday, 5 January, 2019 at the Tobago Nutrition Building, Milford Road, Canaan.
The Honourable Kelvin Charles, Chief Secretary and Mrs. Catherine Anthony-Charles, a former President of our Credit Union from 2002 to 2003 were among our specially invited guests. 3.2.0
Obituaries
The general membership of the Credit Union extends sympathy to the families of members who have passed in the year 2018. We thank them sincerely for the contributions they have made to Mt. Pleasant Credit Union Cooperative Society Limited. We continue to preserve the memories of our cherished members through this publication. MEMBER
DATE JOINED
DATE DECEASED
Joseph Thom
11/06/2003
11/07/2018
Hilford Soverall
22/05/1985
26/07/2018
Leslie Scott
07/09/1989
Ryan Delpino
20/09/2013
Rodney Jones
29/12/2006
Adwina Johnson
Henreitta Chevalier
11/09/1995
44
03/03/1999
13/07/2018 24/07/2018 12/12/2018 08/10/2018 23/09/2018
Report of the Education Committee MEMBER
DATE JOINED
DATE DECEASED
Margaret Winchester
28/06/2000
18/01/2018
Kenneth King
19/10/1999
23/11/2018
Bill Mander
15/01/2013
Hezron Baird
4.
3.4.
21/11/1995
Upcoming Programmes • Training for staff and the wider membership of the Credit Union • Elders’ Appreciation Day • Community Development Project • Seminar on Land Title and Ownership • Financial Management Training for members • Motivational Programme at St. Patrick’s Anglican School • Orientation sessions for new Credit Union members • Orientation sessions for Board and Committee members • Children’s Christmas Party
18/10/2018 12/11/2018
Conclusion
This Committee is eternally grateful to the President, Board of Directors, and members of other Committees for wholeheartedly supporting our endeavours throughout this period. Special thanks are also extended to the general membership, the General Manager, the Property Supervisor, the Marketing Supervisor and the Staff of the Mt Pleasant Credit Union Co-operative Society Limited for their untiring support.
We sincerely thank you all for the opportunity given to serve and would not hesitate to serve again if called upon.
Respectfully submitted, Shirleen Robinson Secretary Education Committee
45
2018 SEA Bursary Awardees
SEA) bursary.
46
2018 SEA Bursary Awardees
47
2018 Tertiary Bursary Awardees
48
Applicants For Nomination Profiles Supervisory Committee 1. Name: Ms. Monique Merita Timothy
Place of Employment: Division of Education, Innovation and Energy Position Held: Executive Assistant
Credit Union Experience: Supervisory Committee – Secretary 2017 to present
Other Training/Related Skills: Training on Auditing of Financial and Accounting statements, AML/CFT, BSc Behavioural Science, President (2018-2019) – Rotaract Club, Tobago
Ms. Ms. Monique Merita Nathalia Joseph-Alexander Timothy
Statement: I possess good leadership skills as well as, I am an efficient team player. A combination of experience from other organisations and the Supervisory Committee for the past two years enables me to perform at the supervisory level and ensuring Mt Pleasant Credit Union remains Tobago’s number one choice.
2.
Name: Ms. Nathalia Joseph-Alexander
Place of employment: Division of Sport and Youth Affairs Position Held: Youth Auxiliary Officer Credit Union Experience: None
Other Training/Related Skills: President – JCI, Police Youth Club Member, Village Council Member, Tobago AIDS Coordinating Committee – Member, OSH Committee Member
Ms. Nathalia Ms. Nathalia Joseph-Alexander Joseph-Alexander
Statement: Mt. Pleasant Credit Union is like family and with family there is protection and security
3.
Name: Ms. Kieshel Percy
Place of employment: Division of Food Production, Forestry and Fisheries Position Held: Agricultural Officer
Credit Union Experience: Supervisory Committee Member 2018
Ms. Kieshel Kieshel Percy Ms. Percy
Other Training/Related Skills: President – BSc. Agriculture General, Youth Group Leader, Early Childhood Operations
Statement: Mt. Pleasant Credit Union worked for me, I was able to own land and other investment.
49
4. Name: Ms. Zola Phillips
Place of employment: University of the Southern Caribbean Position Held: Lecturer
Credit Union Experience: None Ms. Zola Phillips
Other Training/Related Skills: Independent Senator (Temporary), Msc Criminology with Forensic psychology Statement: Mt. Pleasant Credit Union is the alternative to traditional banking where members are the owners.
5. Name: Ms. Abeni Taylor
Place of Employment: Division of Education, Innovation and Energy Position Held: Business Teacher III Credit Union Experience: None
Ms. Abeni Taylor Ms. Ms. Abeni Nathalia Taylor Joseph-Alexander
Other Training/Related Skills: Degree B.A Spanish, Interpreting and translating French and Spanish.
Statement: Mt. Pleasant Credit Union is for everyone ages zero to sixty-three offering a range of products to its members.
6. Name: Mrs. Carnetta Noray-Brathwaite Place of Employment: Bank Retiree Position Held:
Credit Union Experience: Employee – Short Term Mt. Pleasant Credit Union Other Training/Related Skills: Mrs. Carnetta Ms. Abeni Taylor Noray-Brathwaite
Mt Pleasant Credit Union
Board of Directors 1. Name: Dr. Winford James
Place of Employment: Retired
Credit Union Experience: President-Board Mt. Pleasant Credit Union, Credit Union League Statement: Mt. Pleasant Credit Union is Tobago’s Choice.
Dr.Ms. Winford James Nathalia
Joseph-Alexander
50
2. Name: Mr. Herbert De Lancy
Place of Employment: Ministry of Sport and Youth Affairs Position Held: Administrative Officer 5
Credit Union Experience: Board of Directors, Credit Committee, Delinquency Committee Herbert Ms.Mr. Kieshel Percy De Lancy
Other Training/Related Skills: Certificate in Counselling and Social Work
Statement: Mt. Pleasant Credit Union has many beneficiaries including my family and friends.
3. Name: MR. Nicholas McKenna
Place of Employment: Division of Education, Innovation and Energy Position Held: Teacher
Credit Union Experience: Board Member, Credit Committee Member, Marketing Committee Mr. Nathalia Nicholas Ms. McKenna Joseph-Alexander
Other Training/Related Skills: Professional Artiste/Piano Player and song writer Statement: Mt. Pleasant Credit Union is a home away from home.
4. Name: Mrs. Aneika Edwards
Place of Employment: Division of Health, Wellness and Family Development Position Held: Health Educator
Credit Union Experience: Board of Directors 2016 to 2018 Mrs. Aneika Mrs. Anne Ms. Nathalia Edwards Rollocks-Broome Joseph-Alexander
Other Training/Related Skills: Post Graduate diploma in Business Administration, BSc. Public Health, Volunteer – Home for the Aged, Rotaract Member
Statement: Mt. Pleasant Credit Union is the best Credit Union in Tobago and is extremely valuable to persons.
5. Name: Ms. Achi-Kemba Phillips Place of Employment: UDECOTT
Position Held: Business Development Consultant/Project Manager Credit Union Experience: Supervisory Committee -3years
Ms.Mrs. Achi-Kemba Anne Phillips Rollocks-Broome
Other Training/Related Skills: MSc. Information Systems Management/MBA Business Administration
Statement: Mt. Pleasant Credit Union is a family and offers great guidance in financial management.
51
6. Name: Ms. Nevlin Renwick
Place of Employment: Retired Administrator-THA Credit Union Experience: None Other Training/Related Skills:
Statement: Mt. Pleasant Credit Union is a Tobago based Credit Union that has grown tremendously over the years.
Ms. Nevlin Renwick
Credit Committee 1. Name: Mr. Denzil White
Place of Employment: Company Owner Position Held: Entrepreneur
Credit Union Experience: Supervisory Committee; Education Committee; Credit Committee – 1986 to present
Other Training/Related Skills: Company Director; Leadership Training in Service Organizations
Mr. Denzil White
Statement: Mt. Pleasant Credit Union’s reputation over the past seventy years is enough to encourage anyone to join this credit union.
2. Name: Mr. Herbert De Lancy
Place of Employment: Office of the Chief Secretary – THA Position Held: Administrative Officer V
Credit Union Experience: Board of Directors – Present; Credit Committee member – present Other Training/Related Skills: Certificates – Counselling, Social Work
Herbert Ms.Mr. Kieshel Percy De Lancy
3.
Name: Mr. Carl Gill
Place of Employment: Retired Public Servant
Position Held: Administrator – Revenue Officer IV – Board of Inland Revenue Credit Union Experience: Credit Committee – present
Mr. Carl Gill
Other Training/Related Skills: Consultant in Real Estate and Property taxes
Statement: Mt. Pleasant Credit Union is the best credit union.
52
4.
Name: Mr. Nicholas McKenna
Place of Employment: Mason Hall Government Secondary School Position Held: Teacher
Credit Union Experience: Credit Committee Member 2012 to present, Board of Director Mr. Nathalia Nicholas Ms. McKenna Joseph-Alexander
Other Training/Related Skills: Certificates – B.Ed. Social Studies; M.Ed. Curriculum Studies Statement: Mt. Pleasant Credit Union is a home away from home.
5. Name: Mrs. Anne Rollocks-Broome
Place of Employment: Community Development, Enterprise Development and Labour Position Held: Administrator – Community Development Assistant II
Credit Union Experience: Credit committee Member 2015 to present
Mrs. Anne Mrs. Anne Rollocks-Broome Rollocks-Broome
Other Training/Related Skills: Certificates – Counselling, Social Work
Statement: Mt Pleasant Credit Union is the preferred choice as they are always there for the people.
6. Name: Ms. Achi-Kemba Phillips Place of Employment: UDECOTT
Position Held: Business Development Consultant/Project Manager Credit Union Experience: Supervisory Committee – 3years
Ms.Mrs. Achi-Kemba Anne Phillips Rollocks-Broome
Other Training/Related Skills: MSc. Information Systems Management/MBA Business Administration
Statement: Mt. Pleasant Credit Union is a family and offers great guidance in financial management.
7. Name: Petuna Kennedy-Lewis
Place of Employment: Division of Settlements, Urban Renewal and Public Utilities Position Held: Director of Settlements Credit Union Experience: None
Petuna Mrs.KennedyAnne Lewis Rollocks-Broome
Other Training/Related Skills: MSc. Facilities Management, Post Graduate Diploma Facilities Management. BSc. Construction Project Management Statement: Mt. Pleasant Credit Union is dependable and helps in the development of young persons.
53
8. Name: Ms. Nevlin Renwick
Place of Employment: Retired Administrator – THA Credit Union Experience: None Other Training/Related Skills:
Ms. Nevlin Renwick
Statement: Mt. Pleasant Credit Union is a Tobago based Credit Union that has grown tremendously over the years.
54
Mt. Pleasant Credit Union Cooperative Society Ltd
Nomination Committee
Report of the
The Nomination Committee hereby submits a Report to the Board of Directors in respect of persons who have fulfilled the requirements to serve and indicated their willingness to make themselves available for service on the Board of Directors, the Supervisory Committee and the Credit Committee at the 59th Annual General Meeting of the Mt Pleasant Credit Union Co-operative Society Limited.
1.
Composition of Nomination Committee
1.1 The members of the Nomination Committee for 2018 comprised of the following:
NAME OFFICE out of a total of Ms. Ruth Campbell Convenor
Ms. Cherryl-Ann Solomon
Mrs. Elizabeth Jerry-Phillips
2.
Secretary Member
Invitation of Applications 2.1 Applications were invited from the General membership through Print Media, Radio announcements, the Credit Union’s Website, Social Media and notices displayed at the Credit Union’s Offices at Carnbee and Bon Accord.
2.2 The members of the Nomination Committee are pleased to advise that a sufficient number of suitably qualified members submitted nominations to fill the vacant positions on the Board of Directors, the Supervisory Committee and the Credit Committee
3.
2.3 All applications were carefully examined to ensure that the requirements of the Byelaws of the Mt Pleasant Credit Union were satisfied. Additionally, the status of the applicants, their nominator and seconder were checked to ensure that they were valid members and in good standing.
Interviewing of Applicants
3.1 Twenty-three (23) applications were received however twenty-two (22) applicants made themselves available for interview by the Nomination Committee. Four (4) persons applied for two positions. During our interactions we ensured that the new applicants fully understood the requirements of being members of the respective committees. They all gave the commitment that if selected in the positions requested; they would do their best in service to the Mt Pleasant Credit Union Co-operative Society.
55
Report of the Nomination Committee 4.
Nominees 4.1 The Nomination Committee has approved the following nominees as “fit and proper� members to the general membership. Supervisory Committee Monique Merita Timothy, Kieshel Percy, Nathalia Joseph-Alexander, Zola Phillips, Abeni Taylor, and Carnetta Noray-Brathwaite.
Board of Directors Dr Winford James, Herbert De Lancy, Nicholas McKenna, Aneika Edwards, Achi-Kemba Phillips, and Nevlin Renwick.
Credit Committee Denzil White, Herbert De Lancy, Carl Gill, Nicholas McKenna, Anne Rollocks-Broome, Achi-Kemba Phillips, Petuna Kennedy-Lewis, Nevlin Renwick. We also recommend the following:-
5.
4.2
a. That applicants with specific skills be considered for service on the Education Committee and other relevant Sub-Committees. b. Members who are nominated from the floor at the AGM give a brief presentation about themselves, which should include their reason for wanting to serve, what skills they are bringing to the organisation, their availability to attend meetings and what Credit Union knowledge/ experience/training they possess.
Profile of the Nominees Attached are profiles of the nominees for consideration.
Closing Remarks
Our committee held seven (7) sessions. We extend our appreciation to the General Manager and staff for the support given to us during the period of preparation and interviews.
We sincerely hope that committed persons are elected to serve on the Board of Directors and various Committees. Respectfully submitted, Cherryl-Ann Solomon Secretary Nomination Committee
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Mt. Pleasant Credit Union Co-operative Society Limited Financial Statements Year Ended December 31, 2018
Mt. Pleasant Credit Union Co-operative Society Limited Financial Statements December 31, 2018
Table of Contents Statement of Management’s Responsibilities
Page 2
Independent Auditors’ Report
Page 3
Statement of Financial Position
Page 7
Statement of Comprehensive Income
Page 8
Statement of Appropriated Funds And Undivided Surplus
Page 9
Statement of Cash Flows
Page 10
Receipts and Payments
Page 11
Notes to Financial Statements
Page 18
Schedules to Financial Statements
Page 33
Page 1
58
Mt. Pleasant Credit Union Co-operative Society Limited Statement of Management’s Responsibilities It is the responsibility of management to prepare financial statements for each year which give a true and fair view of the state of affairs of the Credit Union as at the end of the financial year and of the operating results of the Credit Union for the year. It is also management’s responsibility to ensure that the credit union keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Credit Union. They are also responsible for safeguarding the assets of the Credit Union. Management is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards (IFRS). This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Management accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with the IFRS. Management is of the opinion that the financial statements give true and fair view of the state of the financial affairs of the Credit Union and of its operating results. Management further accepts responsibility for the maintenance of accounting records which may be relied upon in preparation of financial statements, as well as adequate systems of internal financial control. Nothing has come to the attention of Management to indicate that the Credit Union will not remain a going concern for at least the next twelve months from the date of this statement.
President: ________________________
General Manager: ____________________
March 22, 2019
March 22, 2019
Page 2
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Independent Auditors’ Report To the Members, Report on the Audit of the Financial Statements of Mt. Pleasant Credit Union Co-Operative Society Limited Opinion We have audited the financial statements of Mt. Pleasant Credit Union Co-Operative Society Limited, which comprise the statement of financial position as at December 31, 2018, the statement of comprehensive income, statement of cash flows and statement of appropriated funds and undivided surplus for the year then ended, and notes to the financial statements including a summary of significant accounting policies. In our opinion, the accompanying financial statement present fairly, in all material respects, the financial position of the Credit Union as at December 31, 2018 and financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Credit Union in accordance with the international Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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Independent Auditors’ Report (continued) Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free form material misstatement, whether due to fraud or error. Auditors’ Responsibilities for the Audit of the Financial Statements In preparing the financial statements, management is responsible for assessing the Credit Union’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Credit Union or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Credit Union’s financial reporting process. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Page 4
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Independent Auditors’ Report (continued) As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Credit Union’s internal control͘ • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Credit Union’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Credit Union to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Independent Auditors’ Report (continued) We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Scarborough March 22, 2019
Chartered Accountants
Page 6
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Mt. Pleasant Credit Union Co-operative Society Limited Statement of Financial Position As at December 31, ASSETS Non-current Assets Property, Plant and Equipment Members' Loans Bacolet Park Development Bon Accord Integrated Development Long-Term Investments
Notes
2018 TT$
2017 TT$
3 4 5 6 7
23,212,723 175,580,547 19,641,883 2,932,889 4,627,841
22,803,442 172,711,975 23,288,015 3,110,124 4,590,475
225,995,883
226,504,031
9
15,538,687 143,709 3,491,917 13,341,510 132,124 32,647,947 258,643,830
7,555,875 555,892 3,425,673 4,541,104 88,624 16,167,168 242,671,199
10
3,799,987 24,652 665,353 53,821,030 290,011 152,003,897 210,604,930
5,314,804 24,652 597,045 49,699,971 290,261 141,186,242 197,112,975
20,985,198 9,088,886 1,990,382 15,974,434 48,038,900
19,927,982 7,931,800 1,605,785 118,223 15,974,434 45,558,224
258,643,830
242,671,199
Total Non-current Assets Current Assets Cash in Hand and at Bank Accounts Receivable and Prepayments Related Party Receivables Short-Term Investments Inventory Total Current Assets Total Assets
8
Liabilities Deposits on Bacolet Park Development Plots Deposits on Bon Accord Intergrated Development Accounts Payable and Accruals Members' Savings Deposits Members' Fixed Deposits Interest Payable Members' Shares Total Liabilities Institutional Capital Undivided Earnings Reserve Fund Education Fund Investment Reserve Revaluation Reserve Total Institutional Capital
11
12 13 14 15
Total Liabilities and Institutional Capital
The notes on pages 18 to 32 and schedules on pages 33 to 35 form an integral part of these Financial Statements President:_______________________
Secretary:_______________________
Chairman, Supervisory Committee:_______________________
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Mt. Pleasant Credit Union Co-operative Society Limited Statement of Comprehensive Income Year Ended December 31,
Sch.
Income Interest from Loans Income from Investments Income from Sale of Land Miscellaneous Income
2018 TT$
2017 TT$
18,941,197 302,582 956,428 1,307,000
17,849,491 281,999 1,523,510 1,155,801
21,507,207
20,810,801
4,969,365 1,784,877 1,112,715 623,477 618,312 733,338 101,090
5,002,971 1,991,670 1,043,695 639,441 841,210 650,892 -
Total Expenditure
9,943,174
10,169,879
Net Surplus for the Year
11,564,033
10,640,922
1 2
Total Income Operating Expenditure Administrative Expenses 3 Operational Expenses 4 Co-operative Costs Development Costs 5 Increase in Provision for Doubtful Debts Interest on Fixed Deposits & Golden Harvest Deposits Loss on Investments
The notes on pages 18 to 32 and schedules on pages 33 to 35 form an integral part of these Financial Statements
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Mt. Pleasant Credit Union Co-operative Society Limited Co-operative Society Limited Statement of Appropriated Funds and Undivided Surplus Year Ended 31 December 2018
Balance at January 01, 2018 Net Surplus for the year
Undivided Earnings
Reserve Fund
Education Investment Revaluation Fund Fund Reserve
19,927,982 11,564,033
7,931,800
1,605,785
118,223
15,974,434
Total 45,558,224 11,564,033
Appropriations of Net Surplus: Statutory Transfers: Reserve Fund (10%) (1,156,403) 1,156,403 Education Fund (5%) (520,382) Other Appropriations: Net Unrealised Loss on Investments Entrance Fees to Reserve Fund 683 Transfers from closed Member Accounts Honorarium (755,301) Interest Rebate on Loans (245,715) Education Expense Interest Paid (133,805) Dividend (Paid) (7,600,238) Adjustment to Prior Year (94,973) Balance at December 31, 2018
20,985,198
9,088,886
The notes on pages 18 to 32 and schedules on pages 33 to 35 form an integral part of these Financial Statements
Page 9
66
-
520,382 (118,223)
(118,223) 683 (755,301) (245,715) (135,785) (133,805) (7,600,238) (94,973)
(135,785)
1,990,382
-
15,974,434
48,038,900
Mt. Pleasant Credit Union Co-operative Society Limited Statement of Cash Flows Year Ended December 31, Cash Flows From Operating Activities Net Surplus For The Year Adjustments to reconcile net surplus to net cash used in operating activities: Depreciation Loan Loss Provision Changes in operating assets and liabilities: Net Change in Members' Loans Net Change in Accounts Receivable Net Change in Related Party Receivables Net Change in Inventory Net Change in Members' Fixed Deposits Movement in Members' Savings Deposits Net Change in Accounts Payable and Accruals Net Cash Used in Operating Activities Cash Flows from Investing Activities Purchase of Property, Plant and Equipment Disposal of Property, Plant and Equipment Movement in Bon Accord Integrated Development Movement in value of Long-Term Investments Movement in Bacolet Park Development Plots Movement in Bacolet Park Deposits Net Cash Flows before Financing Activities Cash Flows from Financing Activities Movement in Members' Shares Movement in Entrance Fees Movement in Education Fund Payments Dividends Paid Honararium Other Net Movement in Equity Net Change in Cash and Cash Equivalents Cash and Cash Equivalents Cash and Cash Equivalents @ 01 January 2018 Net Change in Cash and Cash Equivalents Cash and Cash Equivalents @ 31 December 2018 Represented by: Short-Term Investments Cash in Hand and Bank
The notes on pages 18 to 32 and schedules on pages 33 to 35 form an integral part of these Financial Statements
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2018 TT$ 11,564,033
2017 TT$ 10,640,922
146,719 618,312 12,329,064
330,716 841,210 11,812,848
(3,486,884) 412,183 (66,244) (43,500) (250) 4,121,059 68,308 13,333,736
(15,895,166) (310,358) (271,708) 25,682 (2,156) 3,487,187 (177,270) (1,330,941)
(487,303) (68,697) 177,235 (37,366) 3,646,132 (1,514,817) 15,048,920
(3,152,144) (103,000) (25,444) 6,198,723 (2,397,778) (810,584)
10,817,655 683 (135,785) (7,600,238) (755,301) (592,716) 16,783,218
15,089,574 663 (177,733) (6,675,988) (762,393) (499,107) 6,164,432
12,096,979 16,783,218 28,880,197
5,932,547 6,164,432 12,096,979
13,341,510 15,538,687 28,880,197
4,541,104 7,555,875 12,096,979
Mt. Pleasant Credit Union Co-operative Society Limited Receipts and Payments for the Year Ended December 31, 2018
Receipts Accounts Receivable - Total ATM Clearing ATM Settlement Bacolet Land Deposits Bacolet Park Lease Rental Bad Debt BAED Property Rental BAID Plot Lease Rental Baliff Fees Bank Charges Casher's Overages CCCU Convention Celebration Marketing Cheque Clearing Computer Hardware Computerization Expense Committee Ex Gratia Payments CUNA Insurance Premiums Deposits Dividends on Investment Donations Education Fund Employee Assistance Plan Family Indemnity Plan Committee Family Indemnity Plan Clearing Carried Forward
2018 531,243 70,000 2,080 1,898,215 20,292 2,250 204,362 25,101 2,026 2,367 47,945 6,641 1,500 1,509,789 1,502 1,575 32,923,218 61,745 800 2,575 1,423 103,100 86,407 37,506,156
Page 11
68
2017 912,928
3,971,504 94,837 62,853 15,095 2,060 37,960 1,763 39,360 1,032,599 4,600 97,378 35,920,232 149,091 1,800 2,350 2,846 87,862 42,437,118
Mt. Pleasant Credit Union Co-operative Society Limited Receipts and Payments for the Year Ended December 31, 2018 Receipts (Continued) Brought Forward FIP Claims Clearing FIP Deposit Fixed Deposit Clearing Fixed Deposit Freehold Property Building Gains on Foreign Exchange Golden Harvest 3.5% Golden Harvest Interest on Fixed Deposits Interest on Loans Interest on Other Investment Interest Received from FCB Late Fees - Loan Less Provision for Bad Debt Loan Processing Fees Meals and Refreshments - BOD and Committees Members' Clearing Members' long-Term Loans Members Short-Term Loans Misdirected Salaries N.I.S. Clearing Office Supplies P.A.Y.E. Clearing Payroll Clearing Photocopying Postage and Freight Reconciling Items Clearing Repairs and Maintenance - Equipment Reserve Fund Service Charge Carried Forward
Page 12
69
2018 37,506,156 779,234 381,782 354,800 161,217 4,059 1,289,942 6,000 6,142,675 187,500 14,801 2,334 5,251 155,791 1,423,278 15,872,857 8,766 22,115 55,571,507 115 20 59,642 1,626 681 57,163 120,009,312
2017 42,437,118 308,337 308,858 1,398,000 122,298 94,918 805,101 8,600 8 6,649,253 94,550 28 12,516 2,302 25,593 1,190 444,570 1,614,488 13,955,825 3,470 25,527 199 16,427 52,053,634 72 297,929 663 170,674 120,852,148
Mt. Pleasant Credit Union Co-operative Society Limited Receipts and Payments for the Year Ended December 31, 2018 Receipts (Continued) Brought Forward Security Services Shares Sports and Family Day Staff Golden Harvest Plan Stale Dated Cheques Clearing Standing Order Clearing Stationery and Printing Stationery Stock Subscriptions Sundry Creditors Telephone - Digicel Travel and Subsistence for Staff Travel and Subsistence - BOD Travels Savings Plan Undivided Earnings Wages and Salaries Clearing Waive Fee Loan Total Receipts
2018 120,009,312 17,916,199 82,300 19,050 1,390 5,174 3,789,048 4,358 1,120 600 2,727,784 36,968 836 144,594,139
Page 13
70
2017 120,852,148 93,322 18,990,852 3 92,300 50,312 4,819 1,546 72 1,491,062 5,635 300 14,921 2,159,966 540 1,830 143,759,628
Mt. Pleasant Credit Union Co-operative Society Limited Receipts and Payments for the Year Ended December 31, 2018 Payments A.G.M. Expenses Account Payable Stabilization Fund Accounts Receivable Total Advertising Allowances - BOD ATM Clearing ATM Rental ATM Settlement Audit Fees Bacolet Land Deposits Bacolet Park Lease Rental Commission Bacolet Park Maintenance Bad Debt expense BAID Plot Lease Rental BAID Plot Lease Rental Commissions BAID Property Rental Commissions Baliff Fees Bank Charges BOURSE Repo Fund BOURSE SAVINVEST Sructured Cashier's Overages/Shortages CCCU Convention CCULTT Conference Celebration Marketing Cheque Clearing Cleaning Supplies Commission on Bacolet Land Committee EX-Gratia Payment Computer Hardware Comouter Software Computerization Expenses CUNA Insurance Premium Deferred Expenses on Bacolet Carried Forward
2018 317,956 206,833 115,009 87,050 26,828 77,200 300 129,400 42,188 101,385 52,517 264,303 18,360 3,034 81,587 62,986 2,000,000 2,000,000 20,956 54,365 88,277 136,725 1,509,789 10,448 208,961 92,700 124,669 120,380 87,980 935,801 167,434 9,145,421
Page 14
71
2017 207,521 211,530 78,819 44,274 42,188 15,866 8,174 242,525 23,127 14,223 3,652 27,015 32,928 68,958 92,507 38,989 67,776 299,922 1,032,599 7,910 356,775 161,600 157,428 27,590 874,960 4,138,856
Mt. Pleasant Credit Union Co-operative Society Limited Receipts and Payments for the Year Ended December 31, 2018 Payments (Continued) Brought Forward Deferred Expenses on Bon Accord Deposits Dividends Paid on Investments Donations Education Fund Education Saving Plan Electricity Employee Assistance Plan Equipment Family Indemnity Plan Clearing FCB Abercrombie Fund FD Clearing FIP Claims Clearing FIP Deposits Fixed Deposits Freehold Property - Building Furniture and Fixtures Gains/Loss on Foreign Exchange Golden Harvest 3.5% Golden Harvest Health Plan Clearing Health Surcharge Clearing Honorarium Insurance on Property Interest on Fixed Deposits Interest on Loans Interest on Golden Harvest Investment Reserve Janitorial Services League Dues Legal and Professional Fees Carried Forward
2018 9,145,421 64,576,029 7,967 64,165 49,375 150 94,950 17,076 69,289 1,226,077 3,000,000 55,458 729,340 55,301 290,527 145,557 28,910 37 171,121 54,827 74,198 9,050 330,399 83,174 9,049 25,507 1,600 20,565 99,750 186,872 80,621,741
Page 15
72
2017 4,138,856 103,030 68,169,576 8,763 46,080 99,488 600 60,786 12,807 96,931 1,040,673 85,000 197,749 39,181 2,682,929 300,569 249 228,178 17,463 81,253 9,438 408,387 93,562 3,115 8,827 14,500 105,075 171,651 78,224,716
Mt. Pleasant Credit Union Co-operative Society Limited Receipts and Payments for the Year Ended December 31, 2018 Payments (Continued) Brought Forward Loan Processing Fees Meals and Refreshments - Staff Meals and Refreshments - Board and Committee Medical Relief Expenses Members' Clearing Members' Long Term Loans Members' Short-Term Loans Miscellaneous Expenses Misdirected Salaries Monitoring of Security Systems NIS Clearing Office Supplies PAYE Clearing Payroll Clearing Pension Fund Clearing Postage and Freight Promotion Marketing Rates and Taxes Reconciliation Items Clearing Repairs and Maintenance - Buildings Repairs and Maintenance - Equipment Repairs and Maintenance - Grounds Security Services Shares Staff Golden Harvest Plan Staff Health Plan Clearing Staff Uniform Staff Travel Allowance Staledated Cheques Standing Order Clearing Carried Forward
Page 16
73
2018 80,621,741 38,658 72,773 45,133 44,284 11,875 2,491,729 27,528,123 6,800 2,546 311,274 56,636 227,704 7,600 4,913 6,700 64,431 16,085 19,549 124,191 13,454 158,594 947,427 14,714,801 36,877 15,966 9,594 40,473 150,815 127,790,746
2017 78,224,716 20,489 78,532 61,703 131,836 3,246,808 34,601,907 2,400 5,333 322,019 50,682 268,120 500 4,161 3,814 57,401 20,576 222,935 91,459 34,840 129,307 1,068,055 13,042,573 16,431 78,410 128,375 131,913,382
Mt. Pleasant Credit Union Co-operative Society Limited Receipts and Payments for the Year Ended December 31, 2018 Payments (Continued) Brought Forward Stationery and Printing Stationery Stock Subscriptions Sundry Creditors Telephone Telephone - Digicel Training and Education - Board and Committee Training and Education - Staff Travel and Subsistence - BOD Travel and Subsistence - Staff Travels Savings Plan Undivided Earnings Unit Trust Clearing Units - Unit Trust Corp Vehicle Maintenance Wages and Salary Clearing Total Payments
2018 127,790,746 375 156,486 16,293 257,107 162,154 18,144 20,688 18,581 34,133 74,637 5,516,987 103,899 16,350 2,000,000 424,747 136,611,327
2017 131,913,382 84,804 60 24,575 1,729,711 157,894 23,400 3,197 28,590 103,825 55,776 2,961,531 6,150 1,837 351,880 137,446,612
7,555,875
1,242,859
Total Receipts (Page 13)
144,594,139
143,759,628
Less Payments (above)
136,611,327
137,446,612
Closing Balance
15,538,687
7,555,875
Represented By: Cash at Bank
15,538,687
7,555,875
Opening Balance
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018
1.
Registration and principal business activity Mt. Pleasant Credit Union Co-operative Society Limited (“the Credit Union”) was registered under the Co-operatives Societies Ordinance 1945 on June 10, 1950 and operates under the Co-operatives Society Act of Trinidad and Tobago of 1971. The registered office of the Credit Union is located at the Holman James Centre, Carnbee, Tobago, with branch operations in Bon Accord, Tobago. The Society operates in the capacity of a credit union for the benefit of its members, mainly by promoting savings among its members and providing loans for provident and productive purposes.
2.
Summary of Significant Accounting Policies a) Basis of preparation These financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Statement of compliance The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Society’s accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimations are significant to the financial statements are disclosed in note 2.1. These financial statements are prepared in Trinidad & Tobago dollars, which is the Society’s functional currency under the Historical Cost Convention as modified by the revaluation of non-current assets, investment properties and available-for-sale investments in accordance with International Financial Reporting Standards. Page 18
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 b) New Accounting Standards and Interpretations (ii) The Credit Union has not applied the following standards, revised standards and interpretations that have been issued but are not yet effective as they either do not apply to the activities of the Society or have no material impact on its financial statements: IFRS 16 Leases supersedes IAS 17 Leases and its related interpretations (effective for accounting periods beginning on or after January 1, 2019). IFRIC 22 – Foreign Currency Transactions and Advance Consideration (Annual periods beginning on or after January 1, 2018). 2.1
Use of estimates The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
2.2
Reserve fund The Co-operatives Societies Act 1971 Section 47 (2) requires that at least 10% of the net surplus of the Society for the year be transferred to a reserve fund. In accordance with Bye-Law 19 of the Credit Union, this Reserve Fund may be used only with the approval of the Commissioner for bad loans and other losses sustained through extraordinary circumstances over which the Society has no control.
2.3
Education fund Five percent (5%) of the net surplus of the Credit Union is transferred to the Education Fund in accordance with the Bye Laws (Bye Law 19(a)) of the Credit Union. In accordance with IFRS all expenses incurred must be accounted for through the Statement of Comprehensive Income. Thus, an intra-reserve transfer is made from this fund to the undivided surplus at year-end to reflect the expenditure on education during the year and the reduction in the Education Fund. Page 19
76
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.4
Income and expenses Interest on members’ loans, savings and fixed deposit accounts and dividend income are accounted for on a cash basis in accordance with the Co-operative Societies Act 1971 and with the norm in the credit union industry. Income on investments, other than dividend income is accounted for on the accrual basis. Other income and expenses are accounted for on the accrual basis.
2.5
Loans to members Loans to members are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans to members originate by the Credit Union by providing money directly to the member or a third party on behalf of the member. Loans to members are carried at amortised cost, which is defined as the fair value of cash consideration given to originate those loans less repayments and any provision for impairment.
2.6
Property plant and equipment All Property, Plant and Equipment are stated at historical cost. Property and equipment with the exception of Freehold land are depreciated on the straight-line basis at rates estimated to write off the cost or valuation of the assets to their residential value over their estimated useful economic lives as follows: Buildings Furniture and Fixtures Plant and Equipment Computer Hardware and Software
- 4% - 10% - 12.5% - 20%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.6
Property, plant and equipment continued An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying net book value is greater than its estimated recoverable amount. Gains and losses on disposal of non-current assets are determined by comparing proceeds with the net book value and are recognised net in the Statement of Comprehensive Income in the year of disposal.
2.7
Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held at call or on current accounts with banks and other short-term highly liquid investments.
2.8
Investments Investments are classified into the following categories: trading, held-to-maturity and available-for-sale. The classification is dependent on the purpose for which the investments were acquired. Management determines the appropriate classification of its investments at the time of the purchase and re-evaluates such designation on a regular basis. Investments which are acquired principally for the purpose of generating a profit from short-term fluctuations in price are classified as trading investments. Investments with fixed maturities that management has the intent and ability to hold to maturity are classified as held-to-maturity. Investments intended to be held for an indefinite period of time, which may be sold in response to needs for short-term liquidity or changes in rates of return, are classified as available-for-sale investments.
Page 21
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.8
Investments continued Purchases and sale of investments are recognised on the date that the Credit Union commits to purchase or sell the asset. Cost of purchase includes transaction costs. Trading and available-for-sale investments are carried at fair values. Realized and unrealized gains and losses arising from changes in the fair values of trading investments are included in the Income Statement in the period in which they arise, Realized and unrealized gains and losses arising from changes in fair values of investments available-for-sale are included as part of Members’ Equity. Held-tomaturity investments are carried at amortised cost.
2.9
Investment property Investment Property is defined as property held by the Credit Union to earn rentals or for capital appreciation through the development of land holdings for sale to third parties and includes investment property under construction. The Credit Union recognizes, classifies and accounts for property interests held under operating leases to third-parties as investment property. The Credit Union undertook two land development projects under special approval of the Commissioner for Co-operative. The first was the Bon Accord Integrated Development (BAID), a project which was developed in three residential phases. All infrastructure works have been completed, with lands still to be sold. The second land development, Bacolet Park Development project, comprised of 232 acres of land which was part of the Bacolet Estate. The project has outlined three residential phases, commercial areas, homesteads and hotel site. Presently plot sales are being completed in phase 2 of the project. The land development investment projects are managed by Total Holdings Limited, established by the Credit Union and its members. The subsidiary enters into all contracts with companies in the development of the investment properties, in respect of project management and general contracting services for the projects. Page 22
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.9
Investment property continued The investment property was initially stated at cost. Subsequent to recognition, the Credit Union uses the Fair Value Model to measure investment properties in compliance with IAS 40, Investment Properties. The gains and losses arising from changes in fair value of these properties are recognized in the Statement of Comprehensive Income.
2.10
Dividends Dividends are recommended by the Board of Directors and approved by the members at the Annual General Meeting following the year to which they relate. Dividends are an appropriation of undivided surplus as disclosed in the Statement of Changes in Members’ Equity and Reserves. In accordance with IAS 10, the current year’s proposed dividends are not accounted for as a liability at year-end. Dividends are computed on the basis of the average number of shares in issue throughout the year, the average being determined on the basis of the number of shares in issue at the end of each month.
2.11
Critical accounting estimates and judgments The preparation of financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions in the process of applying the Credit Union’s accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Credit Union makes estimates and assumptions concerning the future. However, actual results could differ from those estimates as the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Page 23
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.11
Critical accounting estimates and judgments continued Changes in accounting estimates are recognised in the statement of comprehensive income in the period in which the estimate is changed, if the change affects that period only, or in the period of the change and future periods if the change affects both current and future periods. The critical judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows: i) Whether investments are classified as held-to-maturity investments, availablefor-sale or loans and receivable. ii) Which depreciation method for property and equipment is used. The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date (requiring management’s most difficult, subjective or complex judgments) that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: i) Impairment of assets Management assesses at each statement of financial position date whether assets are impaired. An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment. Recoverable amount is the present value of the future cash flows. Provisions are made for the excess of the carrying value over its recoverable amount. ii) Equipment Management exercises judgment in determining whether future economic benefits can be derived from expenditures to be capitalised and in estimating the useful lives and residual values of these assets. Page 24
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.12
Provision and Contingent Liabilities Disclosure Provision are recognized where the Credit Union has a present legal or constructive obligation as a result of past events, and it is more likely than not that an outflow of resources will be required to settles the obligation, and the amount can be reliably estimated. Provisions are recognized as liabilities and measured at balance sheet date at management’s best estimate of the expenditure expected to be required to settle the obligation. Where no reliable estimate can be made, the liability is disclosed as a contingent liability.
2.13
Financial Instruments A financial instrument is any contract that gives rise to both a financial asset and a financial liability or equity instrument of another enterprise. For purposes of these financial statements, financial assets have been determined to include loans to members, investments, sundry receivables and cash and cash equivalents. Financial liabilities have been determined to include members’ shares, members’ fixed deposits, members’ savings deposits, mortgage loans, CUNA death benefits and sundry accounts payable. The Society has exposures to the following risks from its use of financial instruments: • Credit risk • Liquidity risk • Market risk
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82
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.13
Financial Instruments continued Credit Risk Management monitors exposures to credit risk on an on-going basis and is adequately secured by collateral and where necessar0y, provisions have been established for potential credit losses on delinquent accounts. Expected credit loss measurement IFRS 9 outlines a ‘three stage’ model; for impairment based on changes in credit quality since initial recognition as summarized below: • A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1 and has its credit risk continuously monitored. • If a significant increase in credit risk (‘SICR’) since initial recognition is identified, the financial instrument is moved to ‘Stage 2’ but is not yet deemed to be credit-impaired. • If the financial instrument is credit-impaired, the financial instrument is then moved to ‘Stage 3’. • Financial instruments in Stage 1 have their ECL measured at an amount equal to the portion of lifetime expected credit losses within the next 12 months. Instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. • A pervasive concept in measuring ECL in accordance with IFRS 9 is that it should consider forward- looking information. • Purchased or originated credit-impaired financial assets are those financial assets that are credit- impaired on initial recognition. Their ECL is always measured on a lifetime basis (Stage 3). Liquidity Risk The Society manages liquidity risk by maintaining adequate liquid assets to meet its cash obligations, including the granting of loans to members, as they fall due. Further, to manage and reduce liquidity risk the Society’s management actively seeks to match cash inflows with liability requirements. Page 26
83
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 2.13
Financial Instruments continued Market Risk Market risk arises in the normal course of business and encompasses the risk to earnings that arises from changes in foreign currency exchange rates, interest rates and equity prices. (a) Foreign currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not the Society’s measurement currency. The Society is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States dollar. The Society’s management monitors the exchange rate fluctuations on a continuous basis and acts accordingly. (b) Interest rate risk Interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market interest rates. The Society is exposed to interest rate risk through the effects of fluctuations in the prevailing levels of interest on interest bearing financial assets and liabilities, including loans and other funding instruments. The Society’s exposure is managed through the matching of funding products with financial services and monitoring market conditions and yields. The Society generally invests in fixed rate loans for terms not exceeding five years. These are funded mainly from members’ shares.
Page 27
84
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018
3.
Property, Plant and Equipment Balance Cost/valuation At 1 Jan 2018
Freehold Land
Freehold Building
17,550,065
5,039,373
Computer Furniture Plant & Hardware & & Fixtures Equipment Software 748,852
1,177,559
838,160
Total $ 25,354,009
Additions
-
145,557
28,910
69,289
243,547
487,303
Disposals
-
(180,774)
(130,022)
(290,955)
(325,046)
(926,797)
Revaluation
-
-
17,550,065
5,004,156
647,740
955,893
756,661
At 1 Jan 2018
-
(691,549)
(353,628)
(871,891)
(633,499)
(2,550,567)
Charge for year
-
(41,463)
(15,349)
(38,857)
(51,050)
(146,719)
Dep on disposals
-
154,355
593,226
247,913
995,494
At 31 Dec 2018
-
(733,012)
(214,622)
(317,522)
(436,636)
(1,701,792)
NBV at 31 Dec 2018
17,550,065
4,271,144
433,118
638,371
320,025
23,212,723
NBV at 31 Dec 2017
17,550,065
4,347,824
395,224
305,668
204,661
22,803,442
At 31 Dec 2018
-
-
-
-
24,914,515
Depreciation
4.
-
Members’ Loans 2018
175,580,547
2017 175,711,975 (3,000,000) 172,711,975
3,000,000 618,312 3,618,312
2,156,488 843,512 3,000,000
179,198,859 (3,618,312)
Total members’ loan Less - Provision for bad debts
Provision for bad debts Balance at beginning of year Increase in provision for the year Specific and collective provision Page 28
85
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018 5.
Bacolet Park Development Acquisition cost of unsold portion of Land Development Development cost - Infrastructural Deferred expenses Development cost - Interest on Loan
6.
2017
13,006,963
13,692,104
2,469,543 4,165,377
3,657,887 5,938,024
19,641,883
23,288,015
2018
2017
Bon Accord Integrated Development
Development cost - Infrastructural Deferred expenses 7.
2018
2,932,889
3,110,124
Long-Term Investments Equity – Quoted Guardian Holdings Limited First Citizens Bank Natural Gas Company of Trinidad and Tobago Equity – Unquoted Tobago United Co-operative Society Limited Central Financing Facility Total Holdings Limited Government Bonds (NIPDEC)
Total Long-Term Investments Page 29
86
2018 160,221
2017
88,813
150,750 323,254 80,878
592,199
554,882
4,873 50,000 980,769 3,000,000 4,035,642
4,824 50,000 980,769 3,000,000 4,035,593
4,627,841
4,590,475
343,165
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018
8.
Cash in Hand and at Bank 2018
2,402,409 379,270
First Citizens Bank Limited RBC Royal Bank Limited Scotia Bank Limited Cash in Hand and at Bank
9.
11,840,354 916,654 15,538,687
2017 4,189,421 379,600 2,556,774 430,080 7,555,875
Short-Term Investment First Citizens Bank Limited - Fixed Deposit First Citizens Bank Limited - Abercrombie Fund Unit Trust Corporation - Money Market Fund Unit Trust Corporation - US Money Market Fund Unit Trust Corporation - Macro Fund Shares Central Financing Facility - Fixed Deposit Bourse Repo Fund Bourse Savinvest Structured Fund
Page 30
87
2018 88,416 3,045,379 2,447,974 19,768
2017 87,363 40,482 449,432
597,450 840,323 2,000,000 4,302,201
21,449 852,361 832,003 2,258,014
13,341,511
4,541,104
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018
10.
Members’ Deposits Members' Ordinary Deposit Fixed Deposit Travel Savings Plan Archer Education Savings Plan Golden Harvest FIP Deposit Platinum Investment Plan
2018 28,261,669 14,507,960 1,485,229 6,270 9,310,738 249,164 -
2017 27,663,521 10,875,463 1,214,404 5,970 7,052,373 219,959 2,668,281
53,821,030
49,699,971
11.
Members’ Shares In accordance with existing IFRS and given the substance and nature of Members’ Shares, this balance is accounted for as a liability and not as capital of the Credit Union. The Credit Union Bye-laws allow for the issue of an unlimited number of shares at $5.00 each.
12.
Reserve Fund In accordance with Bye Law 19, at least ten percent (10%) of the net surplus of each year is transferred to the Reserve Fund. The Reserve Fund is indivisible and no member is entitled to any specific share thereof.
13.
Education Fund Under Bye Law 19(a), an amount of not less than five percent (5%) of the net surplus may be credited to the Education Fund.
Page 31
88
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Financial Statements December 31, 2018
14.
Investment Reserve This relates to the unrealised gains net of losses on the re-measurement to fair values of investment available-for-sale in accordance with International Financial Reporting Standard 9. Upon sale of a particular available-for-sale investment, the profit realised by the sale, to the extent that unrealised surpluses have been credited to the reserve account, will be transferred from this reserve account to the undivided surplus and be available for distribution.
15.
Revaluation Reserve This relates to the revaluation of freehold land located at Sherwood Park and freehold land and buildings located at Carnbee and Bon Accord, Tobago.
Page 32
89
Mt. Pleasant Credit Union Co-operative Society Limited Schedules to the Financial Statements December 31, 2018 1.
Income from Sale of Land Bacolet Park Development Proceeds received Cost of Plots Sold Gain on Sale of Lots
2.
2018
2017
4,774,532 (3,818,104)
7,722,235 (6,198,725)
956,428
1,523,510
Miscellaneous Income 2018
Bad Debt - Recovery Loan Restructuring Fee Loan Processing Fees Loan Late Fees Loan Waiver Fees Photocopying Cashier's Overage and Shortages Service Charges – Membership Transfers/Charges Gain/Loss on Foreign Exchange BAID Plot Lease Rental Bacolet Park Lease Rental FIP Commissions BAED Property Rental Service Charges - Total Holdings Limited Total Miscellaneous Income
Page 33
90
3,373 11,665 573,666 31,252 8,171 115 161,647 7,663 113,745 4,022 5,061 21,720 103,100 204,920 56,880 1,307,000
2017
725 538 620,848 43,131 7,693 72 9,668 80,494 96,394 7,359 96,108 87,861 48,030 56,880 1,155,801
Mt. Pleasant Credit Union Co-operative Society Limited Schedules to the Financial Statements December 31, 2018 3.
Administrative Expenses 2018 A.G.M. Expenses Advertising Allowances for Board of Directors Audit Fees Bank Charges Celebration Expenses Cleaning Supplies Committee Ex Gratia Payments Courier Fees Donations Electricity Health Plan Admin Expenses Insurance Janitorial Services Legal and Professional Fees Marketing Meals and Refreshments - Board of Directors Meals and Refreshments - Staff Medical Relief Expense Miscellaneous Expenses Office Supplies Pension Fund Contributions Postage and Freight President/Manager's Entertainment Rates and Taxes Salaries and other Employee Expenses Staff Uniforms Staff - COLA Stationery and Printing Subscriptions Telephone Training and Education - Staff, Board and Committees Travel and Subsistence - Staff and Board Total Administrative Expenses
Page 34
91
337,955 87,050 27,528 84,375 60,619 170,830 10,558 130,595 36,000 62,865 94,950 7,053 83,174 119,213 196,303 70,431 67,463 73,473 44,284 6,800 56,636 48,231 6,680 15,000 16,085 2,561,145 44,914 108,178 16,293 177,569 37,991 109,124 4,969,365
2017 207,521 90,069 45,124 88,093 68,958 267,987 7,910 197,275 36,000 44,280 60,786 9,146 93,562 63,177 175,703 47,401 74,828 79,492 51,933 74,968 2,364 5,000 20,576 2,589,569 78,410 42,584 104,178 24,501 175,659 31,787 144,130 5,002,971
Mt. Pleasant Credit Union Co-operative Society Limited Schedules to the Financial Statements December 31, 2018 4.
Operational Expenses
2018 ATM Rental Bad Debt Expenses Baliff Fees CCULTT Leadership Conference CCCU Convention TTCUDIF Leadership Conference Computerization Expense Depreciation Loss on Disposal Repairs and Maintenance Security Services Vehicle Maintenance Total Operational Expenses 5.
300 5,691 3,606 102,636 54,365 8,160 86,405 254,198 6,058 316,031 947,427 1,784,877
2017 26,295 121,224 163,305 93,115 27,590 330,717 249,110 980,066 248 1,991,670
Development Costs
2018 Bacolet Park Lease Rentals Commission BAID Plot Lease Rental Commission BAID Property Rental Commission Commission on Bacolet Land Sale General Maintenance of Bacolet Park Total Development Costs
52,517 3,034 81,587 222,035 264,304 623,477
Page 35
92
2017 8,174 3,652 27,015 356,775 243,825 639,441
Total Holdings Limited Financial Statements zĞĂƌ Ended
December 31, 2018
Total Holdings Limited Financial Statements December 31, 2018
Table of Contents Statement of Management’s Responsibilities
Page 2
Independent Auditors’ Report
Page 3
Statement of Financial Position
Page 6
Statement of Comprehensive Income
Page 7
Statement of Changes in Equity
Page 8
Statement of Cash Flows
Page 9
Notes to Financial Statements
Page 10
Schedules to Financial Statements
Page 17
94 Page 1
Total Holdings Limited Statement of Management’s Responsibilities It is the responsibility of management to prepare financial statements for each year which give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the operating results of the Company for the year. It is also management’s responsibility to ensure that the Company keeps proper accounting records which disclose with reasonable accuracy at any time the financial position of the Company. They are also responsible for safeguarding the assets of the Company. Management is responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standards for Small and Medium Sized Entities (IFRS for SMEs). This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement , whether due to fraud or error , selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Management accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with the IFRS for SMEs. Management is of the opinion that the financial statements give true and fair view of the state of the financial affairs of the Company and of its operating results. Management further accepts responsibility for the maintenance of accounting records which may be relied upon in preparation of financial statements, as well as adequate systems of internal financial control. Nothing has come to the attention of Management to indicate that the Company will not remain a going concern for at least the next twelve months from the date of this statement.
Director: ________________________
Director: ____________________
March 22, 2019
March 22, 2019 Page 2
95
Independent Auditors’ Report To the Shareholders, Report on the Audit of the Financial Statements of Total Holdings Limited Opinion We have audited the financial statements of Total Holdings Limited, which comprise the statement of financial position as at December 31, 2018, the statement of comprehensive income, statement of cash flows and statement of changes in equity for the year then ended, and notes to the financial statements including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2018 and financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards for Small and Medium Sized Entities (IFRS for SME’s). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the international Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRS for SME’s, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Page 3
96
Independent Auditors’ Report Continued Auditors’ Responsibilities for the Audit of the Financial Statements In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company’s financial reporting process. Our Objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Page 4
97
Independent Auditors’ Report Continued • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Scarborough March 22, 2019
Chartered Accountants
Page 5
98
Total Holdings Limited Statement of Financial Position As at December 31, 2018 TT$
2017 TT$
3
174,974
226,225
4 5 6
422,522 52,685 41,006 516,213
416,372 8,489 204,422 629,283
691,187
855,508
Notes
ASSETS Non-current Assets Property, Plant and Equipment Current Assets Investments Accounts Receivable and Prepayments Cash in Hand and at Bank Total Current Assets Total Assets SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' Equity Stated Capital Accumulated Loss Deficiency of Shareholders' Equity Non-Current Liabilities Related Party - MPCU Current Liabilities Bank Overdraft Payables and Accruals Taxation Total Current Liabilities
7
1,036,584 (4,079,511) (3,042,927)
1,036,584 (3,726,987) (2,690,403)
8
3,491,917
3,425,673
6 9
126,760 84,563 30,874 242,197
94,940 25,298 120,238
691,187
855,508
Total Shareholders' Equity and Liabilities The notes on pages 10 to 16 and schedules on pages 17 and 18 form an integral part of these Financial Statements Director:___________________
Page 6
99
Director:____________________
Total Holdings Limited Statement of Comprehensive Income Year Ended December 31,
Sch.
Income Commissions Sewerage Treatment Plant Fees Miscellaneous Income
1
Expenditure Administrative Expenses Other Expenses
2 3
Total Expenditure Net Loss for the Year before Interest and Taxation Interest and Finance Charges
2018 TT$
2017 TT$
280,149 236,925 102,518
399,208 219,275 143,067
619,592
761,550
865,354 99,832
899,596 95,594
965,186
995,190
(345,594)
(233,640)
1,354
Net Loss for the Year before Taxation
(346,948) 4
Taxation Total Comprehensive Loss for the Year
The notes on pages 10 to 16 and schedules on pages 17 and 18 form an integral part of these Financial Statements
Page 7
100
5,576 (352,524)
2,140 (235,780) 6,854 (242,634)
Total Holdings Limited Statement of Changes in Equity Year Ended 31 December 2018
Balance at January 01, 2018
STATED CAPITAL
ACCUMULATED LOSSES
1,036,584
(3,726,987)
(2,690,403)
(352,524)
(352,524)
1,036,584
(4,079,511)
(3,042,927)
STATED CAPITAL
ACCUMULATED LOSSES
1,036,584
(3,484,353)
(2,447,769)
(242,634)
(242,634)
(3,726,987)
(2,690,403)
Net Loss for the year Balance at December 31, 2018
Balance at January 01, 2017 Net Loss for the year Balance at December 31, 2017
1,036,584
The notes on pages 10 to 16 and schedules on pages 17 and 18 form an integral part of these Financial Statements
Page 8
101
TOTAL
TOTAL
Total Holdings Limited Statement of Cash Flows Year Ended December 31, 2018 TT$
Cash Flows From Operating Activities Net Loss For The Year Adjustments to reconcile net loss to net cash used in operating activities: Depreciation Loss on Disposal
2017 TT$
(352,524)
(242,634)
48,239 3,012
61,280 -
(301,273)
(181,354)
(44,196) (10,378) 5,577 (350,270)
12,537 49,882 3,310 (115,625)
Cash Flows from Investing Activities Purchase of Non Current Assets Movement in value of Long-Term Investments Net Cash Flows before Financing Activities
(6,150) (6,150)
(6,250) (4,257) (10,507)
Cash Flows from Financing Activities Net Change in Related Party - MPCU
66,244
271,708
Net Change in Cash and Cash Equivalents
(290,176)
145,576
Cash and Cash Equivalents Cash and Cash Equivalents @ 01 January 2017 Net Change in Cash and Cash Equivalents Cash and Cash Equivalents @ 31 December 2017
204,422 (290,176) (85,754)
58,845 145,577 204,422
(85,999) 245 (85,754)
202,726 1,696 204,422
Changes in operating assets and liabilities: Net Change in Accounts Receivable and Prepayments Net Change in Accounts Payable and Accruals Net Change in Taxation Net Cash Used in Operating Activities
Represented by: Cash at Bank Cash in Hand
The notes on pages 10 to 16 and schedules on pages 17 and 18 form an integral part of these Financial Statements
Page 9
102
Total Holdings Limited Notes to the Financial Statements December 31, 2018
1.
Registration and principal business activity The Company was incorporated on May 26, 1995 in the Republic of Trinidad and Tobago under the Companies Ordinance Act Ch. 31. No 1. It carries on the business of a real estate and property management agency to the parent entity (Mt. Pleasant Credit Union Co-operative Society Limited).
2.
Summary of Significant Accounting Policies a) Basis of preparation These financial statements were prepared in accordance with the International Financial Reporting Standards for Small and Medium Entities (IFRS for SMEs) issued by the International Accounting Standards Board. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance The preparation of financial statements in conformity with the IFRS for SMEs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimations are significant to the financial statements are disclosed in note 2.1. These financial statements are prepared in Trinidad & Tobago dollars, which is the Company’s functional currency under the Historical Cost Convention as modified by available-for-sale investments in accordance with the IFRS for SMEs.
Page 10
103
Total Holdings Limited Notes to the Financial Statements December 31, 2018 b) New Accounting Standards and Interpretations (ii) The Company has not applied the following standards, revised standards and interpretations that have been issued but are not yet effective as they either do not apply to the activities of the Company or have no material impact on its financial statements: IFRS 16 Leases supersedes IAS 17 Leases and its related interpretations (effective for accounting periods beginning on or after January 1, 2019). IFRIC 22 – Foreign Currency Transactions and Advance Consideration (Annual periods beginning on or after January 1, 2018). 2.1
Use of estimates The preparation of financial statements in conformity with International Financial Reporting Standards requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
2.2
Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held at call or on current accounts with banks and other short-term highly liquid investments.
2.3
Trade and Other Receivables Trade receivables are carried at anticipated realisable value. Bad debts are written off during the year which they are identified.
2.4
Trade and Other Payables Trade and other payables are recognised initially at fair value based on the original invoice. Page 11
104
Total Holdings Limited Notes to the Financial Statements December 31, 2018
2.5
Foreign Currency Translation Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies, are recognised in the Statement of Comprehensive Income.
2.6
Revenue Recognition Revenue from sewer maintenance are recognised on the accruals basis. Commissions on lease and property rentals are recognised when the process is completed and the title has been passed.
2.7
Property, Plant and equipment Property, Plant and Equipment are stated at historical cost and are depreciated on the reducing balance method at rates estimated to write off the cost of the assets to their residential value over their estimated useful economic lives as follows: Office Furniture and Fixtures Computer Equipment Motor Vehicle
- 10% - 25% - 25%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each financial reporting date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying net book value is greater than its estimated recoverable amount. Gains and losses on disposal of non-current assets are determined by comparing proceeds with the net book value and are recognised net in the Statement of Comprehensive Income in the year of disposal. Page 12
105
Total Holdings Limited Notes to the Financial Statements December 31, 2018
2.8
Taxation Current income tax is the expected tax charge on the taxable income for the year using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of the previous years. Current taxation is recognised in the Statement of Comprehensive Income, except to the extent that it relates to a business combination, or items recognised directly in equity.
2.9
Financial Instruments A financial instrument is any contract that gives rise to both a financial asset and a financial liability or equity instrument of another enterprise. For purposes of these financial statements, financial assets have been determined to include, investments, accounts receivable and prepayments, and cash in hand and at bank. Financial liabilities have been determined to include accounts payable and accruals, and taxation payable. The Company has exposures to the following risks from its use of financial instruments: • Credit risk • Liquidity risk • Operational risk • Compliance Risk Credit Risk Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the year-end date. The Company has no significant concentration on credit risk, as policies are in place to control and monitor risk on a continuous basis.
Page 13
106
Total Holdings Limited Notes to the Financial Statements December 31, 2018
2.9
Financial Instruments continued Liquidity Risk Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial instruments. The Company manages liquidity risk by maintaining adequate liquid assets to meet its cash obligations. Further, to manage and reduce liquidity risk the Company’s management actively seeks to match cash inflows with liability requirements. Operational Risk Operational risk is the risk that derives from the deficiencies relating to the Company’s information technology and control systems, as well as the risk of human errors and natural disasters. To combat this risk the Company’s systems are evaluated, maintained and upgraded continuously. Compliance Risk Compliance risk is the risk of financial loss, including fines and other penalties, which arise from non-compliance with laws and regulations of the state. Management mitigates against this risk by monitoring controls applied by the company.
Page 14
107
Total Holdings Limited Notes to the Financial Statements December 31, 2018 3.
Property, Plant and Equipment Balance Cost/valuation At 1 Jan 2018 Additions Disposals At 31 Dec 2018 Depreciation At 1 Jan 2018 Charge for year Depreciation on Disposal At 31 Dec 2018 NBV at 31 Dec 2018 NBV at 31 Dec 2017
4.
Motor Vehicles
Total $
283,915 283,915
93,344 (26,380) 66,964
44,861 (11,270) 33,591
(140,848) (35,767) (176,615)
(37,892) (5,545) 23,701 (19,736)
(17,155) (195,895) (6,927) (48,239) 10,937 34,638 (13,145) (209,496)
107,300 143,067
47,229 55,452
20,447 27,706
422,120 (37,650) 384,470
174,974 226,225
Investments Unit Trust Corporation - Second Scheme Unit Trust Corporation - US$ Fund
5.
Furniture Computer & Fixtures Equipment
2018 400,862 21,660 422,522
2017 394,712 21,660 416,372
2018 473,978 (429,782) 8,489 52,685
2017 429,782 (429,782) 8,489 8,489
Accounts Receivable and Prepayments Trade Receivables Provision for Doubtful Debts Other Receivables
Page 15
108
Total Holdings Limited Notes to the Financial Statements December 31, 2018 6.
Cash in Hand and at Bank 2018 40,761 (126,760) 245 (85,754)
2017 41,392 161,335 1,695 204,422
Authorised Ordinary Class A Ordinary Class B Redeemable Preference Share
1,200,000 Unlimited Unlimited
1,200,000 Unlimited Unlimited
Issued and Fully Paid Ordinary Class A
1,036,584
1,036,584
3,491,917
3,425,673
RBC Royal Bank Limited - Bacolet Development RBC Royal Bank Limited Cash in Hand
7.
8.
Stated Capital
Related Party - MPCU Due to Related Party Non-current Portion Mt. Pleasant Credit Union Co-operative Society Ltd
The balance is unsecured and interest free. It is classified as non-current. 9.
Payables and Accruals Audit Fees Property Owners Deposits for Brush Cutting Other Payables
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2018 21,094 34,790 28,679 84,563
2017 28,125 43,875 22,940 94,940
Total Holdings Limited Notes to the Financial Statements December 31, 2018 1.
Other Income 2018 15,700 32,589 41,800 6,149 2,920 3,360 102,518
Property Extension Fees Other Income TSTT Site Rental Interest Income Brush Cutting Bird Watching - Entrance Fee
2.
2017 20,400 70,729 41,800 4,258 2,920 2,960 143,067
Administrative Expenses Audit Fees Computer Expense Depreciation Expense Director's Allowance and Subsistence Director's Fees Management Fees Meals and Refreshments National Insurance Contributions Pension Fund Postage and Delivery Rates and Taxes Staff Training Stationery and Office Expense Telephone Travel and Entertainment Wages and Salaries
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2018 28,125 1,176 48,239 3,400 108,700 56,880 1,000 35,119 19,409 918 6,775 13,330 14,335 3,816 524,132 865,354
2017 28,125 4,125 61,280 4,250 100,000 56,880 35,457 17,648 845 120 3,038 1,585 15,569 920 569,754 899,596
Total Holdings Limited Schedules to the Financial Statements December 31, 2018 3.
Other Expenses Bacolet Park Expense - Sewer Maintenance BAID Sewer Plant - Electricity BAID Sewer Plant - Maintenance Loss on Disposal Repairs and Maintenance Vehicle Insurance Vehicle Maintenance
4.
2018 12,700 2,494 53,000 3,012 11,593 17,033 99,832
2017 100 (1,585) 76,495 1,918 13,575 5,091 95,594
2018 3,717 1,859 5,576
2017 4,569 2,285 6,854
Taxation Business Levy Green Fund Levy
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Mt. Pleasant Credit Union Co-operative Society Limited Consolidated Financial Statements zĞĂƌ Ended
December 31, 2018
Mt. Pleasant Credit Union Co-operative Society Limited Consolidated Financial Statements December 31, 2018
Table of Contents Statement of Management’s Responsibilities
Page 2
Independent Auditors’ Report
Page 3
Statement of Financial Position
Page 7
Statement of Comprehensive Income
Page 8
Statement of Changes in Equity
Page 9
Statement of Cash Flows
Page 10
Notes to Financial Statements
Page 11
Schedules to Financial Statements
Page 26
113 Page 1
Mt. Pleasant Credit Union Co-operative Society Limited Statement of Management’s Responsibilities It is the responsibility of management to prepare consolidated financial statements for each year which give a true and fair view of the state of affairs of the Group as at the end of the financial year and of the consolidated operating results of the Group for the year. It is also management’s responsibility to ensure that the Group keeps proper accounting records which disclose with reasonable accuracy at any time the consolidated financial position of the Group. They are also responsible for safeguarding the assets of the Group. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the International Financial Reporting Standards for Small and Medium Sized Entities (IFRS for SMEs). This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. Management accepts responsibility for the annual consolidated financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with the IFRS for SMEs. Management is of the opinion that the consolidated financial statements give true and fair view of the state of the financial affairs of the Group and of its operating results. Management further accepts responsibility for the maintenance of accounting records which may be relied upon in preparation of financial statements, as well as adequate systems of internal financial control. Nothing has come to the attention of Management to indicate that the Group will not remain a going concern for at least the next twelve months from the date of this statement.
President: ________________________
General Manager: ____________________
March 22, 2019
March 22, 2019 Page 2
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Independent Auditors’ Report To the Members, Report on the Audit of the Consolidated Financial Statements of Mt. Pleasant Credit Union Co-Operative Society Limited Opinion We have audited the consolidated financial statements of Mt. Pleasant Credit Union CoOperative Society Limited and its subsidiary, Total Holdings Limited, which comprise the consolidated statement of financial position as at December 31, 2018, the consolidated statement of comprehensive income, the consolidated statement of cash flows and consolidated statement of changes in equity for the year then ended, and notes to the consolidated financial statements including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of Mt. Pleasant Credit Union Cooperative Society Limited and its subsidiary Total Holdings Limited, as at December 31, 2018 and financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the international Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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Independent Auditors’ Report Continued Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group’s financial reporting process. Our Objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
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Independent Auditors’ Report Continued • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Union’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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Independent Auditors’ Report Continued We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Scarborough March 22, 2019
Chartered Accountants
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Mt. Pleasant Credit Union Co-operative Society Limited Consolidated Statement of Financial Position As at December 31,
2018 TT$
2017 TT$
3 4 5 6 7
23,387,697 175,580,547 19,641,883 2,932,889 3,647,072 225,190,088
23,029,667 172,711,975 23,288,015 3,110,124 3,609,706 225,749,487
8 9
15,452,933 13,764,032 196,394 132,124 29,545,483
7,760,297 4,957,476 564,381 88,624 13,370,778
Total Assets
254,735,571
239,120,265
Liabilities Deposits on Bacolet Park Development Plots Deposits on Bon Accord Integrated Development Accounts Payable and Accruals Members' Savings Deposits Members' Fixed Deposits Interest Payable Members' Shares Non-Controlling Interest in Total Holdings Limited Total Liabilities
3,799,987 24,652 780,790 53,821,030 290,011 152,003,897 (96,839) 210,623,528
5,314,804 24,652 717,283 49,699,971 290,261 141,186,242 (75,688) 197,157,525
17,058,341 9,088,886 1,990,382 15,974,434 44,112,043
16,332,498 7,931,800 1,605,785 118,223 15,974,434 41,962,740
254,735,571
239,120,265
Notes
ASSETS Non-current Assets Property, Plant and Equipment Members' Loans Bacolet Park Development Bon Accord Integrated Development Long-Term Investments Total Non-current Assets Current Assets Cash in Hand and at Bank Short-Term Investments Accounts Receivable and Prepayments Inventory Total Current Assets
Institutional Capital Undivided Earnings Reserve Fund Education Fund Investment Reserve Revaluation Reserve Total Institutional Capital
10 11
12 13 14 15
Total Liabilities and Institutional Capital
The notes on pages 11 to 25 and schedule on pages 26 to 27 form an integral part of these Financial Statements President:_______________________
Secretary:_______________________
Chairman, Supervisory Committee:_______________________
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Mt. Pleasant Credit Union Co-operative Society Limited Consolidated Statement of Comprehensive Income Year Ended December 31,
Sch.
Income Interest from Loans Income from Investments Sewer Fees Other Income Income from Sale of Land
2018 TT$
2017 TT$
18,941,197 308,731 517,074 1,403,369 956,428
17,849,491 286,257 618,483 1,294,610 1,523,510
22,126,799
21,572,351
5,741,371 1,854,337 1,112,715 748,551 618,312 733,338 101,090
5,795,997 2,064,084 1,043,695 771,331 841,210 650,892 -
Total Expenditure
10,909,714
11,167,209
Net Surplus for the Year
11,217,085
10,405,142
Total Holding Limited Taxation
5,576
6,854
Net Surplus for Distribution
11,211,509
10,398,288
1,156,403 520,382 1,676,785
1,064,092 478,842 1,542,934
Total Comprehensive Income for the Year
9,534,724
8,855,354
Attributable To: Surplus Attributable to MPCU (Deficit) Attributable to Non-Controlling Interest
9,555,875 (21,151)
8,869,912 (14,558)
Total Comprehensive Income for the Year
9,534,724
8,855,354
Total Income Operating Expenditure Administrative and Other Expenses Operational Expenses Co-operative Costs Development Costs Increase in Provision for Doubtful Debts Interest on Fixed Deposits & Golden Harvest Deposits Loss on Investments
1 2 3
Appropriations 12 13
Transfer to Reserve Fund (10%) Transfer to Education Fund (5%) Total Appropriations
The notes on pages 11 to 25 and schedule on pages 26 to 27 form an integral part of these Financial Statements
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Mt. Pleasant Credit Union Co-operative Society Limited Co-operative Society Limited Consolidated Statement of Changes in Equity Year Ended 31 December 2018 Undivided Reserve Earnings Fund Consolidated MPCU Balance at January 01, 2018 Net Surplus for the year Accumulated Loss from THL Operations Appropriations of Net Surplus: Statutory Reserve Transfer Reserve Fund (10%) Education Fund (5%) Net Unrealised Loss on Investments Entrance Fees to Reserve Fund Transfers from Closed Members Accounts Honorarium Interest Rebate on Loans Education Expense Interest Paid Dividend (Paid) Adjustment to Prior Year Balance at December 31, 2018
16,332,498
7,931,800
Education Fund 1,605,785
Investment Fund 118,223
Revaluation Reserve 15,974,434
11,564,033 (331,373)
(1,156,403) (520,382)
41,962,740 11,564,033 (331,373)
1,156,403
(755,301) (245,715)
-
520,382 (118,223)
683
(133,805) (7,600,238) (94,973) 17,058,341
Total
(118,223) 683
(135,785)
9,088,886
The notes on pages 11 to 25 and schedule on pages 26 to 27 form an integral part of these Financial Statements
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1,990,382
-
15,974,434
(755,301) (245,715) (135,785) (133,805) (7,600,238) (94,973) 44,112,043
Mt. Pleasant Credit Union Co-operative Society Limited Consolidated Statement of Cash Flows Year Ended December 31,
2018 Cash Flows From Operating Activities TT$ Net Surplus For The Year 11,232,660 Adjustments to reconcile net surplus to net cash used in operating activities: Depreciation 194,958 Loss on Disposal of Property, Plant and Equipment (65,685) Loan Loss Provision 618,312 11,980,245 Changes in operating assets and liabilities: Net Change in Members' Loans (3,486,884) Net Change in Accounts Receivable 367,987 Net Change in Inventory (43,500) Net Change in Members' Fixed Deposits (250) Net Change in Accounts Payable and Accruals 63,507 Net Cash Used in Operating Activities 8,881,105 Cash Flows from Investing Activities Purchase of Non Current Assets (487,303) Movement in Bon Accord Integrated Development 177,235 Movement in value of Long-Term Investments (37,366) Movement in Bacolet Park Development Plots 3,646,132 Movement in Members' Deposits 4,121,059 Movement in Bacolet Park Deposits (1,514,817) Net Cash Flows before Financing Activities 5,904,940 Cash Flows from Financing Activities Movement in Members' Shares 10,817,655 Movement in Entrance Fees 683 Movement in Education Fund Payments (135,785) Dividends Paid (7,600,238) Honorarium (755,301) Movement in Non-Controlling Interest (21,151) Other Net Movement in Equity (592,716) Net Cash generated from Financing Activities 1,713,147 Net Change in Cash and Cash Equivalents 16,499,192 Cash and Cash Equivalents Cash and Cash Equivalents @ 01 January 2018 12,717,773 Net Change in Cash and Cash Equivalents 16,499,192 Cash and Cash Equivalents @ 31 December 2018 29,216,965 Represented by: Short-Term Investments Cash in Hand and Bank
13,764,032 15,452,933 29,216,965
The notes on pages 11 to 25 and schedule on pages 26 to 27 form an integral part of these Financial Statements
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2017 TT$ 10,412,846 391,996 843,512 11,648,354 (15,897,468) (297,821) 25,682 (2,156) (124,077) (4,647,486) (3,158,364) (103,030) (25,444) 6,198,723 3,487,187 (2,397,778) 4,001,294 15,089,574 663 (177,733) (6,675,988) (762,393) (14,558) (499,108) 6,960,457 6,314,265 6,403,508 6,314,265 12,717,773 4,957,476 7,760,297 12,717,773
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 1.
Registration and principal business activity Mt. Pleasant Credit Union Co-operative Society Limited (“the Credit Union�) was registered under the Co-operatives Societies Ordinance 1945 on June 10, 1950 and operates under the Co-operatives Society Act of Trinidad and Tobago of 1971. The registered office of the Credit Union is located at the Holman James Centre, Carnbee, Tobago, with branch operations in Bon Accord, Tobago. The Society operates in the capacity of a credit union for the benefit of its members, mainly by promoting savings among its members and providing loans for provident and productive purposes. The Credit Union undertook two land development projects under special approval of the Commissioner for Co-operative, one in1987 and another in 1999. The first was the Bon Accord Integrated Development (BAID), and the second being the Bacolet Park Development project, which consisted of 232 acres of land which was part of the Bacolet Estate. The subsidiary, Total Holdings Limited, enters into all contracts with companies in the development of these investment properties, in respect of project management and general contracting services for the project.
2.
Summary of Significant Accounting Policies a) Basis of preparation These consolidated financial statements were prepared in accordance with IFRS issued by the International Accounting Standards Board. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 Statement of compliance The preparation of consolidated financial statements in conformity with the IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Society’s accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimations are significant to the financial statements are disclosed in note 2.1. These consolidated financial statements are prepared in Trinidad & Tobago dollars, which is the Group’s functional currency under the Historical Cost Convention as modified by the revaluation available-for-sale investments in accordance with IFRS for SME’s. b) New Accounting Standards and Interpretations (ii) The Group has not applied the following standards, revised standards and interpretations that have been issued but are not yet effective as they either do not apply to the activities of the Society or have no material impact on its financial statements: IFRS 16 Leases supersedes IAS 17 Leases and its related interpretations (effective for accounting periods beginning on or after January 1, 2019). IFRIC 22 – Foreign Currency Transactions and Advance Consideration (Annual periods beginning on or after January 1, 2018). 2.1
Use of estimates The preparation of consolidated financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Page 12
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.2
Reserve fund The Co-operatives Societies Act 1971 Section 47 (2) requires that at least 10% of the net surplus of the Credit Union for the year be transferred to a reserve fund. In accordance with Bye-Law 19 of the Credit Union, this Reserve Fund may be used only with the approval of the Commissioner for bad loans and other losses sustained through extraordinary circumstances over which the Society has no control.
2.3
Education fund Five percent (5%) of the net surplus of the Credit Union is transferred to the Education Fund in accordance with the Bye Laws (Bye Law 19(a)) of the Credit Union. In accordance with International Financial Reporting Standards, all expenses incurred must be accounted for through the Statement of Income and Expenditure. Thus, an intra-reserve transfer is made from this fund to the undivided surplus at year-end to reflect the expenditure on education during the year and the reduction in the Education Fund.
2.4
Income and expenses Interest on members’ loans, savings and fixed deposit accounts and dividend income are accounted for on a cash basis in accordance with the Co-operative Societies Act 1971 and with the norm in the credit union industry. Income on investments, other than dividend income is accounted for on the accrual basis. Other income and expenses are accounted for on the accrual basis.
2.5
Loans to members Loans to members are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans to members originate by the Credit Union by providing money directly to the member or a third party on behalf of the member. Loans to members are carried at amortised cost, which is defined as the fair value of cash consideration given to originate those loans less repayments and any provision for impairment. Page 13
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.6
Property, plant and equipment All Property, plant and equipment are stated at historical cost. Property and equipment with the exception of Freehold land are depreciated on the straightline basis at rates estimated to write off the cost or valuation of the assets to their residential value over their estimated useful economic lives as follows: Buildings Furniture and Fixtures Plant and Equipment Computer Hardware and Software
- 4% - 10% - 12.5% - 20%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying net book value is greater than its estimated recoverable amount. Gains and losses on disposal of non-current assets are determined by comparing proceeds with the net book value and are recognised net in the Consolidated Statement of Comprehensive Income in the year of disposal. 2.7
Cash and cash equivalents Cash and cash equivalents include cash in hand and deposits held at call or on current accounts with banks and other short-term highly liquid investments.
2.8
Investments Investments are classified into the following categories: trading, held-to-maturity and available-for-sale. The classification is dependent on the purpose for which the investments were acquired. Management determines the appropriate classification of its investments at the time of the purchase and re-evaluates such designation on a regular basis. Page 14
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.8
Investments continued Investments which are acquired principally for the purpose of generating a profit from short-term fluctuations in price are classified as trading investments. Investments with fixed maturities that management has the intent and ability to hold to maturity are classified as held-to-maturity. Investments intended to be held for an indefinite period of time, which may be sold in response to needs for short-term liquidity or changes in rates of return, are classified as available-for-sale investments. Purchases and sale of investments are recognised on the date that the Credit Union commits to purchase or sell the asset. Cost of purchase includes transaction costs. Trading and available-for-sale investments are carried at fair values. Realized and unrealized gains and losses arising from changes in the fair values of trading investments are included in the Income Statement in the period in which they arise, Realized and unrealized gains and losses arising from changes in fair values of investments available-for-sale are included as part of Members’ Equity. Held-to-maturity investments are carried at amortised cost.
2.9
Investment property Investment Property is defined as property held by the Group for sale in the ordinary course of business or services or for administrative purposes and includes investment property under construction. The Group recognizes, classifies and accounts for property interests held under operating leases to third-parties as investment property. The Group undertook two land development projects under special approval of the Commissioner for Co-operative. The first was the Bon Accord Integrated Development (BAID), a project which was developed in three residential phases. All infrastructure works have been completed, with lands still to be sold. Page 15
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.9
Investment property continued The second land development, Bacolet Park Development project, considered of 232 acres of land which was part of the Bacolet Estate. The project has outlined three residential phases, commercial areas, homesteads and hotel site. Presently plots are being sold in phase 2 of the project. The land development investment projects are managed by Total Holdings Limited, established by the Credit Union and its members. The subsidiary enters into all contracts with companies in the development of the investment properties, in respect of project management and general contracting services for the projects. The investment property was initially stated at cost. Subsequent to recognition, the Group uses the Fair Value Model to measure investment properties in compliance with IAS 40, Investment Properties. The gains and losses arising from changes in fair value of these properties are recognized in the Consolidated Statement of Comprehensive Income.
2.10
Dividends Dividends are recommended by the Board of Directors and approved by the members at the Annual General Meeting following the year to which they relate. Dividends are an appropriation of undivided surplus as disclosed in the Statement of Changes in Members’ Equity and Reserves. In accordance with IAS 10, the current year’s proposed dividends are not accounted for as a liability at year-end. Dividends are computed on the basis of the average number of shares in issue throughout the year, the average being determined on the basis of the number of shares in issue at the end of each month.
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.11
Critical accounting estimates and judgments The preparation of financial statements in accordance with International Financial Reporting Standards requires management to make judgments, estimates and assumptions in the process of applying the Credit Union’s accounting policies. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Credit Union makes estimates and assumptions concerning the future. However, actual results could differ from those estimates as the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Changes in accounting estimates are recognised in the statement of comprehensive income in the period in which the estimate is changed, if the change affects that period only, or in the period of the change and future periods if the change affects both current and future periods. The critical judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows: i) Whether investments are classified as held-to-maturity investments, available-for-sale or loans and receivable. ii) Which depreciation method for property and equipment is used. The key assumptions concerning the future and other key sources of estimation uncertainty at the statement of financial position date (requiring management’s most difficult, subjective or complex judgments) that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Page 17
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.11
Critical accounting estimates and judgments continued i) Impairment of assets Management assesses at each statement of financial position date whether assets are impaired. An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment. Recoverable amount is the present value of the future cash flows. Provisions are made for the excess of the carrying value over its recoverable amount. ii) Equipment Management exercises judgment in determining whether future economic benefits can be derived from expenditures to be capitalised and in estimating the useful lives and residual values of these assets.
2.12
Provision and Contingent Liabilities Disclosure Provision are recognized where the Credit Union has a present legal or constructive obligation as a result of past events, and it is more likely than not that an outflow of resources will be required to settles the obligation, and the amount can be reliably estimated. Provisions are recognized as liabilities and measured at balance sheet date at management’s best estimate of the expenditure expected to be required to settle the obligation. Where no reliable estimate can be made, the liability is disclosed as a contingent liability.
2.13
Financial Instruments A financial instrument is any contract that gives rise to both a financial asset and a financial liability or equity instrument of another enterprise. For purposes of these financial statements, financial assets have been determined to include loans to members, investments, sundry receivables and cash and cash equivalents. Page 18
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.13
Financial Instruments continued Financial liabilities have been determined to include members’ shares, members’ fixed deposits, members’ savings deposits, mortgage loans, CUNA death benefits and sundry accounts payable. The Society has exposures to the following risks from its use of financial instruments: • Credit risk • Liquidity risk • Market risk Credit Risk Management monitors exposures to credit risk on an on-going basis and is adequately secured by collateral and where necessary, provisions have been established for potential credit losses on delinquent accounts. Expected credit loss measurement IFRS 9 outlines a ‘three stage’ model; for impairment based on changes in credit quality since initial recognition as summarized below: • A financial instrument that is not credit-impaired on initial recognition is classified in Stage 1 and has its credit risk continuously monitored. • If a significant increase in credit risk (‘SICR’) since initial recognition is identified, the financial instrument is moved to ‘Stage 2’ but is not yet deemed to be credit-impaired. • If the financial instrument is credit-impaired, the financial instrument is then moved to ‘Stage 3’. • Financial instruments in Stage 1 have their ECL measured at an amount equal to the portion of lifetime expected credit losses within the next 12 months. Instruments in Stages 2 or 3 have their ECL measured based on expected credit losses on a lifetime basis. • A pervasive concept in measuring ECL in accordance with IFRS 9 is that it should consider forward- looking information. Page 19
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.13
Financial Instruments continued Credit Risk continued • Purchased or originated credit-impaired financial assets are those financial assets that are credit- impaired on initial recognition. Their ECL is always measured on a lifetime basis (Stage 3). Liquidity Risk The Society manages liquidity risk by maintaining adequate liquid assets to meet its cash obligations, including the granting of loans to members, as they fall due. Further, to manage and reduce liquidity risk the Society’s management actively seeks to match cash inflows with liability requirements. Market Risk Market risk arises in the normal course of business and encompasses the risk to earnings that arises from changes in foreign currency exchange rates, interest rates and equity prices. (a) Foreign currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognized assets and liabilities are denominated in a currency that is not the Society’s measurement currency. The Society is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States dollar. The Society’s management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 2.13
Financial Instruments continued Foreign currency risk continued (b) Interest rate risk Interest rate risk is the risk that the fair value of a financial instrument will fluctuate due to changes in market interest rates. The Society is exposed to interest rate risk through the effects of fluctuations in the prevailing levels of interest on interest bearing financial assets and liabilities, including loans and other funding instruments. The Society’s exposure is managed through the matching of funding products with financial services and monitoring market conditions and yields. The Society generally invests in fixed rate loans for terms not exceeding five years. These are funded mainly from members’ shares.
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 3.
Property, Plant and Equipment Balance Cost/valuation At 1 Jan 2018 Additions Disposals Revaluation At 31 Dec 2018
Freehold Land
4.
Furniture Computer & Plant & Hardware Fixtures Equipment & Software
-
Total $
1,461,474 69,289 (290,955) 1,239,808
883,021 25,776,129 243,547 487,303 (336,316) (964,447) 790,252 25,298,985
(691,549) (391,520) (1,012,739) (41,463) (20,894) (74,624) 178,056 593,226 (733,012) (234,358) (494,137)
(650,654) (2,746,462) (57,977) (194,958) 258,850 1,030,132 (449,781) (1,911,288)
17,550,065 5,039,373 842,196 145,557 28,910 (180,774) (156,402) 17,550,065 5,004,156 714,704
Depreciation At 1 Jan 2018 Charge for year Dep on disposals At 31 Dec 2018 NBV at 31 Dec 2018 NBV at 31 Dec 2017
Freehold Building
17,550,065 4,271,144 17,550,065 4,347,824
480,346 450,676
745,671 448,735
340,471 23,387,697 232,367 23,029,667
Members’ Loans 2018 179,198,859 (3,618,312) 175,580,547
Total members’ loan Less - Provision for bad debts
Provision for bad debts Balance at beginning of year Increase in provision for the year Specific and collective provision
3,000,000 618,312 3,618,312
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2017 175,711,975 (3,000,000) 172,711,975
2,156,488 843,512 3,000,000
Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 5.
Bacolet Park Development Acquisition cost of unsold portion of Land Development Development cost - Infrastructural Deferred expenses Development cost - Interest on Loan
6.
2018 13,006,963 2,469,543 4,165,377 19,641,883
Bon Accord Integrated Development 2018 Development cost - Infrastructural Deferred expenses
7.
2017 13,692,104 3,657,887 5,938,024 23,288,015
2,932,889
2017 3,110,124
Long-Term Investments Equity - Quoted Guardian Holdings Limited First Citizens Bank Natural Gas Company of Trinidad and Tobago Sub Total - Quoted Equity
2018
2017
160,221 343,165 88,813 592,199
150,750 323,254 80,878 554,882
Equity - Unquoted Tobago United Co-operative Society Limited Central Financiang Facility Government Bonds (NIPDEC) Sub Total Unouted Equity
4,873 50,000 3,000,000 3,054,873
4,824 50,000 3,000,000 3,054,824
Total Long-Term Investments
3,647,072
3,609,706
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 8.
Cash in Hand and at Bank First Citizens Bank Limited RBC Royal Bank Limited Scotia Bank Limited Cash in Hand and at Bank
9.
2017 4,189,422 582,327 2,556,774 431,774 7,760,297
2018 88,416 3,045,379 2,848,835 41,428 597,450 840,323 2,000,000 4,302,201 13,764,032
2017 87,363 40,482 844,144 43,109 852,361 832,003 2,258,014 5,050,362
2018 28,261,669 14,507,960 1,485,229 6,270 9,310,738 249,164 53,821,030
2017 27,663,521 10,875,463 1,214,404 5,970 7,052,373 219,959 2,668,281 49,699,971
Short-Term Investment First Citizens Bank Limited - Fixed Deposit First Citizens Bank Limited - Abercrombie Fund Unit Trust Corporation - Money Market Fund Unit Trust Corporation - US Money Market Fund Unit Trust Corporation - Macro Fund Shares Central Financiang Facility - Fixed Deposit Bourse Repo Fund Bourse Savinvest Structured Fund
10.
2018 2,402,409 293,271 11,840,354 916,899 15,452,933
Members’ Deposits Members' Ordinary Deposit Fixed Deposit Travel Savings Plan Archer Education Savings Plan Golden Harvest FIP Deposit Platinum Investment Plan
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Mt. Pleasant Credit Union Co-operative Society Limited Notes to the Consolidated Financial Statements December 31, 2018 11.
Members’ Shares In accordance with existing International Financial Reporting Standards and given the substance and nature of Members’ Shares, this balance is accounted for as a liability and not as capital of the Credit Union. The Credit Union Bye-laws allow for the issue of an unlimited number of shares at $5.00 each.
12.
Reserve Fund In accordance with Bye Law 19, at least ten percent (10%) of the net surplus of each year is transferred to the Reserve Fund. The Reserve Fund is indivisible and no member is entitled to any specific share thereof.
13.
Education Fund Under Bye Law 19(a), an amount of not less than five percent (5%) of the net surplus may be credited to the Education Fund.
14.
15.
Investment Reserve This relates to the unrealised gains net of losses on the re-measurement to fair values of investment available-for-sale in accordance with International Financial Reporting Standard 9. Upon sale of a particular available-for-sale investment, the profit realised by the sale, to the extent that unrealised surpluses have been credited to the reserve account, will be transferred from this reserve account to the undivided surplus and be available for distribution. Revaluation Reserve This relates to the revaluation of freehold land located at Sherwood Park and freehold land and buildings located at Carnbee and Bon Accord, Tobago.
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Mt. Pleasant Credit Union Co-operative Society Limited Schedules to the Consolidated Financial Statements December 31, 2018 1.
Administrative Expenses A.G.M. Expenses Advertising Allowances for Board of Directors Audit Fees Bank Charges Celebration Expenses Cleaning Supplies Committee Ex Gratia Payments Courier Fees Donations Electricity Health Plan Admin Expenses Insurance Janitorial Services Legal and Professional Fees Marketing Meals and Refreshments - Board of Directors Meals and Refreshments - Staff Medical Relief Expense Miscellaneous Expenses Office Supplies Pension Fund Contributions Postage and Freight President/Manager's Entertainment Rates and Taxes Salaries and other Employee Expenses Staff Uniforms Staff - COLA Stationery and Printing Subscriptions Telephone Training and Education - Staff, Board and Committees Travel and Subsistence - Staff and Board Total Administrative Expenses
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2018 337,955 87,050 139,628 112,500 61,973 170,830 10,558 130,595 36,000 62,865 94,950 7,053 94,767 119,213 196,303 70,431 67,463 74,473 44,284 6,800 56,636 67,640 7,598 15,000 16,085 3,120,396 44,914 121,508 16,293 191,904 44,767 112,940 5,741,372
2017 207,521 90,069 149,374 116,218 71,098 267,987 7,910 197,275 36,000 44,280 60,786 9,146 107,137 63,177 175,703 47,401 74,828 79,492 51,933 92,616 3,209 5,000 20,696 3,194,780 78,410 42,584 105,763 24,501 191,228 34,825 145,050 5,795,997
Mt. Pleasant Credit Union Co-operative Society Limited Schedules to the Consolidated Financial Statements December 31, 2017 2.
Operational Expenses 2018
ATM Rental Bad Debt Expenses Baliff Fees CCULTT Leadership Conference CCCU Convention TTCUDIF Leadership Conference Computerization Expense Depreciation Loss on Disposal Repairs and Maintenance Security Services Vehicle Maintenance Total Operational Expenses
3.
2017
300 5,691 3,606 102,636 54,365 8,160 87,581 302,437 9,070 316,031 947,427 17,033 1,854,337
26,295 121,224 163,305 93,115 31,715 391,997 251,028 980,066 5,339 2,064,084
2018 109,397 3,034 68,194 81,587 222,035 264,304 748,551
2017 65,054 3,652 75,010 27,015 356,775 243,825 771,331
Development Cost Bacolet Park Lease Rentals Commission BAID Plot Lease Rental Commission BAID Maintenace and Expense BAID Property Rental Commission Commission on Bacolet Land Sale General Maintenance of Bacolet Park Total Development Costs
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RESOLUTIONS FOR THE 60TH ANNUAL GENERAL MEETING 1 Appointment of Auditors
WHEREAS the Commissioner for Cooperative Development has an approved list of persons/firms for the conducting of the Statutory Annual Audit of Cooperative Societies under Section 51(1) of the Cooperative Societies Act, AND WHEREAS Hardys Chartered Accountants are so listed,
BE IT RESOLVED that Hardys Chartered Accountants be appointed as the auditors of Mt. Pleasant Credit Union Cooperative Society Limited for the financial year ending December 31, 2019
Moved by:
2. Maximum Liability
Seconded by:
WHEREAS the Cooperative Societies Regulations Section 1 require a General Meeting of members to fix the Maximum Liability a society may incur,
BE IT RESOLVED that the Maximum Liability to be incurred by Mt. Pleasant Credit Union Society Limited remain at seventy million dollars ($70,000,000.00) for the year ending December 31, 2019
Moved by:
3. Distribution of Surplus
Seconded by:
WHEREAS Mt. Pleasant Credit Union Cooperative Society Limited has realized a surplus of $11,564,033 for the year ended December 31, 2018
BE IT RESOLVED that i) A share dividend of 6% approximated to $ 8,588,262.00 ii) Interest of 0.60% on deposits approximated to $163,297.00 iii) A rebate of 1.25% of interest on loans approximated to $236,765.00 be paid to members for the year ended December 31, 2018
AND WHEREAS Bye Laws 19(b) and (d) allow for the payment of dividends, interest on deposits, and a rebate of loan interest,
BE IT FURTHER RESOLVED that, where any member’s loan is in arrears, the said dividend, interest on deposits, and rebate of interest on loans due be credited to the member’s loan account and, where loans have been liquidated, any interest due be credited to the member’s deposit account.
Moved by:
4. Honoraria
Seconded by:
WHEREAS the members of the Board of Directors, Credit Committee, Supervisory Committee, and other Committees have served during the periods under review,
BE IT RESOLVED that, in accordance with Bye Laws 19(e) and 28(g), this 60th Annual General Meeting approve Honoraria in the amount of seven hundred and ninety three thousand dollars ($793,000.00) for distribution among the members of said Board and Committees for the year ended December 2018 in accordance with a formula determined by the Board.
Moved by:
Seconded by:
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FOR THE YEAR 2019
BUDGET PROJECTIONS Mt. Pleasant Credit Union Cooperative Society Ltd
MT PLEASANT CREDIT UNION CO-OPERATIVE SOCIETY BUDGET PROJECTIONS FOR THE YEAR 2019 2019 Budget Interest on Loans $ 22,000,000 Other Interest Income $ 260,000 Dividend Income $ 65,000 TOTAL INTEREST INCOME $ 22,325,000 Interest on Members Fixed Deposits Interest on Members Golden Harvest Accounts CUNA Insurance League Dues Stabilisation Fund Dues Credit Union League Leadership Conference CCCU Convention & Conference TTCUDIF Leadership Conference Total Interest and Shareholders Expenses
$ $ $ $ $ $ $ $ $
625,000 375,000 975,100 110,000 120,000 214,000 94,000 198,000 2,711,100
Fees and Financial Services Income Other Income
$ $ $
800,000 400,000 1,200,000
NET INTEREST INCOME
$
20,813,900
OPERATING EXPENSES A.G.M. Expenses Advertising /Marketing and Promotions Audit Fees Bacolet Park Maintainance Bad Debt Expenses Bank Charges Bacolet Park Lease Rental Commissions BAID Plot Lease Rental Commissions BAID Property Rental Commissions Cola Celebrations Computerization Expenses Courier Services Depreciation Donations Electricity Ex Gratia Payments-Committees Employee Assistant Plan Health Plan Insurance Janitorial Services Legal & Professional Fees Meal & Refreshments - Board & Committees Meal & Refreshments - Staff National Insurance Office Expenses Pension Fund Contributions President & Manager Ent. Allowances Rates & Taxes Repairs & Maintenance Salaries Security Services Special Allowances - Board and Committees Stationery & Printing
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
350,000 150,000 100,000 255,000 15,000 15,000 50,000 7,000 125,000 58,000 225,000 60,000 36,000 175,000 75,000 100,000 200,000 18,000 15,000 100,000 132,000 180,000 100,000 80,000 235,000 60,000 102,000 20,000 20,000 320,000 2,228,000 480,000 45,000 110,000
141
Electricity $ 100,000 Ex Gratia Payments-Committees $ 200,000 Employee Assistant Plan $ 18,000 Health Plan $ 15,000 Insurance $ 100,000 Janitorial Services FOR THE YEAR 2019 $ 132,000 Legal & Professional Fees $ 180,000 Meal & Refreshments - Board & Committees $ 100,000 Meal & Refreshments - Staff $ 80,000 National Insurance $ 235,000 Mt. Pleasant Credit Union Cooperative Society Office Expenses $ Ltd 60,000 Pension Fund Contributions $ 102,000 President & Manager Ent. Allowances $ 20,000 Rates & Taxes $ 20,000 Repairs & Maintenance $ 320,000 Salaries $ 2,228,000 Security Services $ 480,000 Special Allowances - Board and Committees $ 45,000 Stationery & Printing $ 110,000 Staff Uniforms $ 100,000 Subscription $ 25,000 Telephone $ 200,000 Telephone Allowance Staff $ 28,000 Training & Education - B.O.D. & Committees $ 60,000 Training & Education - Staff $ 100,000 Travel & Subsistence - B.O.D. & Committees $ 110,000 Travel & Subsistence - Staff $ 82,000 Travel Allowance Staff $ 110,000 Entertainment Allowance $ 6,400 TOTAL EXPENSES $ 7,062,400 NET SURPLUS $ 13,751,500
BUDGET PROJECTIONS
142
PEARLS RATIO ANALYSIS MONTH ENDING DECEMBER 2018
Ratio Ratio PEARLS MPCU Summary Status Category Rec. Values Values PROTECTION Loan Loss Allowance 100% 129.46% Complies with the P1 Net Delinquent Loans PEARLS requirement
EFFECTIVE STRUCTURE E1 Net Loans 70-80% 67.66% Does not comply with Total Assets PEARLS requirement
E5 Savings Deposits 70-80% 76.81% Complies with the Total Assets PEARLS requirement E8 Institutional Capital Total Assets
Minimum 14.22% Complies with the 10% PEARLS requirement
ASSET QUALITY A1 Total Loan Delinquency ≤ 5% 8.64% Does not comply with Avg. Net Loan Portfolio PEARLS requirement A2 Non Earning Assets ≤5% 6.76% Does not comply with Total Assets PEARLS requirement
RATES OF RETURNS & COSTS R1 Total Loan Income ≥8.00% 11.06% Complies with the (Annualized) Avg. Net Loan Portfolio PEARLS requirement R7 Total Cost on Member Shares ≥ Inflation 1.8% 6.00% Complies with the (Annualized) Average Member Shares PEARLS requirement R8 Operating Expenses ≤10% 3.59% Complies with the (Annualized) Avg. Total Assets Pearls requirement LIQUIDITY L1 Net Liquid Assets Minimum 15% 16.25% Complies with the Savings Deposits Pearls requirement
SIGNS OF GROWTH S1 Increase in Total Loans Complies with the Year-on-Year Total Loans at Last ≥ S11 3.85% Pearls requirement Reporting Period S11 Increase in Total Assets Complies with the Year-on-Year Total Assets at Last ≥Inflation 5.28% Pearls requirement Reporting Period
143
Notes
144
Mt Pleasant Credit Union Co-operative Society Ltd Head Office Holman James Centre Riseland Crown Trace Carnbee Tobago Tel: 639-8375/ 639-8902/ 297-9008/297-9009 Fax: 639-8379 BRANCH Milford Road Bon Accord Tobago Tel: 639-8108 or 297-3690
SUBSIDIARY Total Holdings Limited Tel: 631-LAND (5263)/ 297-3725 Fax: 639-9313
Email us: mpcu1950@gmail.com totalholdings@mail.mpcutobago.com
www.mpcutobago.com