Black Raven Annual Report 2020

Annual Report 2020 Notice of AGM and Agenda Virtual AGM is on the 31/03/2021 6pm.

REGISTER FOR VIRTUAL AGM

SCAN QR CODE ON SMART PHONE TO REGISTER OR EMAIL enquiries@blackravencu.ie REGISTERED NUMBER : 389CU

NOTICE OF THE 41ST ANNUAL GENERAL MEETING OF BLACK RAVEN CREDIT UNION LTD. The 41st Annual General Meeting will be held on 31st March 2021 (6pm). You are earnestly requested to attend.

See details of free draw which will take place at the AGM on page 3.

AGM Agenda Standard Rule 96 (4): The business at annual general meetings of the members shall be: 1. The acceptance by the board of directors of the authorised representatives of members that are not natural persons; 2. Ascertainment that a quorum is present; 3. Adoption of Standing Orders; 4. Reading and approval (or correction) of the minutes of the last annual general meeting, and any intervening special general meeting; 5. Chairperson’s report; 6. Report of the Board of Directors; 7. Consideration of accounts; 8. Report of the Auditor; 9. Declaration of dividend and rebate of interest, if any 10. Report of Credit Committee; 11. Report of Membership Committee; 12. Report of Credit Control Committee; 13. Report of Risk and Audit Committee; 14. Report of Nomination Committee; 15. Report of Board Oversight Committee; 16. Appointment of tellers; 17. Election of auditors; £n° iVÌ Ì w Û>V> V iÃ Ì i L >À` ÛiÀà } Ì V ÌÌiiÆ £ ° iVÌ Ì w Û>V> V iÃ Ì i >À` v ÀiVÌ ÀÃÆ 20. Rule amendment 21. Draw 22. Any other business 23. Announcement of election results 24. Adjournment or close of meeting Standing Orders are on page 2 of this report.

Ray Carroll, Secretary

Black Raven Credit Union Limited County Hall, Belgard Square North, Tallaght, Dublin 24

*There are 2 vacancies on the Board Oversight Committee. The Nomination Committee have approved the Nominations for these positions. **There is 1 vacancy on the Board of Directors. The Nomination Committee have approved the Nomination for this position.

1

ANNUAL REPORT AND ACCOUNTS 2020

CONTENTS

3

4

7

10

13

14

Balance Sheet

15

16

17

38

39

40

41

42

43

44

45

Directors and Other Information

Credit Committee Report

Board Oversight Committee Report

Chairpersons Report

Statement of Changes in Reserves

Membership Committee Report

Directors Report

Cash Flow Statement

Credit Control Committee Report

Auditors’ Report

Notes to and forming part of the Financial Statements

Risk and Audit Committee Report

Statement of Comprehensive Income

Non-statutory ƂPCPEKCN information (unaudited)

Nomination Committee Report

Rule Amendments

Join today and borrow up to €2000

We have waived the waiting time for loans for new members

*Terms and conditions apply. Black Raven Credit Union is regulated by the Central Bank of Ireland.

2

BLACK RAVEN CREDIT UNION

MODEL STANDING ORDERS FOR CREDIT UNIONS (REPUBLIC OF IRELAND) 1. VOTING Each member shall be entitled to one vote irrespective of his/her shareholding, in accordance with section 82(2) of the Credit Union Act, 1997 (as amended). Due to the fact that this year’s AGM will be a virtual meeting, voting on motions and elections will be by electronic means on the night of the AGM. A login link will be provided to members upon registration for the meeting.

Voting polls with a Yes/No option will be available for those members who login on the night.

2. ELECTION PROCEDURE ELECTRONIC VOTING When nominations are announced tellers shall be appointed by the Chairperson and voting procedures and instructions shall be distributed. The mechanics of the virtual voting process will be explained in more detail at the AGM by the Chairperson.

Elections shall be in the following order: (a) Election of auditor; (b) Election for membership of the board of directors; and (c) Election for membership of the board oversight committee. The mechanics of the virtual voting process will be explained in more detail at the AGM by the Chairperson.

When the votes have been counted by the tellers, the results shall be announced by the Chairperson.

3-4 Motions 3. Õi Ì Ì i ëiV wV ` vwVÕ Ì iÃ] Üi >Ài v>V } in holding an Annual General Meeting this year due to Covid-19, the purpose of this year’s AGM is to deal with the essential business of the credit union. This includes Ài« ÀÌ } Ì i LiÀÃ Ì i w > V > ÃÌ>ÌÕà of the credit union, declare a dividend/ ÌiÀiÃÌ ÀiL>Ìi] > ` i iVÌ vwViÀð Ƃ Þ Ì iÀ non-urgent matters will be dealt with at next year’s AGM. As such, there will be no Ì Ã vÀ Ì i y À `Õi Ì Ì i ` vwVÕ Ì ià in managing same remotely. Members have been invited to submit questions to the board in advance of the AGM and the board

will address these during the AGM, and same will be included in the minutes of the AGM. Questions to be submitted to enquiries@blackravencu.ie.

4. The Chairperson’s decision on any matter relating to these Standing Orders or ÌiÀ«ÀiÌ>Ì v Ã> i à > Li w > ° 5-9 MISCELLANEOUS 5. The Chairperson of the credit union shall be the Chairperson of any general meeting, except where he/she is not available, in which case it shall be the Vice-Chairperson, except where he/she is not available, in which case the Board shall decide amongst themselves who shall act as Chairperson of any general meeting.

6. The Chairperson may at his/her discretion, iÝÌi ` Ì i «À Û i}i v Ì i y À Ì > Þ person who is not a member.

7. Matters not covered by the Agenda may be introduced under “Other Business” at the discretion of the Chairperson. At a virtual AGM in the current circumstances, this may not be practical, however, the option may be invoked if required.

8. The Chairperson shall have a second or casting vote in addition to his/her own vote on matters other than voting at elections where there is an equality of votes (Standard Rule 99(1)).

9. Any matter to be decided upon by a vote at the AGM shall, unless otherwise expressly provided for by law or the rules be decided upon by majority vote.

10. ADJOURNMENTS Adjournments of the AGM shall take place only in accordance with section 81(1) and the provisions concerning notice, voting and quorum are also set out in section 81 (and the new section 80

3

ANNUAL REPORT AND ACCOUNTS 2020

BOARD OF DIRECTORS

G.Berrigan (Chairperson) R. Carroll (Secretary) T. McHugh (Vice-Chairperson) M. Reilly G. O’Brien M. Egan J. O’Sullivan B. Kenealy E. Conlon

REGISTERED OFFICE County Hall Belgard Square North Tallaght Dublin 24

BOARD OVERSIGHT COMMITTEE M. Galvin (Chairperson) S. Stevenson (Secretary) R. Fleming

INDEPENDENT AUDITOR

PKF O’Connor, Leddy & Holmes Limited Registered Auditors Century House Harolds Cross Road Harolds Cross Dublin 6W

INTERNAL AUDITOR Moore Limited Ulysses House Foley Street Dublin 1

PRINCIPAL BANKERS Bank of Ireland 2 College Green Dublin 2

REGISTERED NUMBER 389CU

OUR MISSION

To govern and manage our Credit Union in compliance with the regulatory framework, Õ `iÀ« i` LÞ ÕÀ V Ài Û> Õià v iµÕ> ÌÞ] iµÕ ÌÞ > ` ÕÌÕ> Ãi v i « v À Ì i Li iwÌ v > our members.

AGM 2020 – Free draw for members who attend In order to thank members who attend the AGM on the 31/03/2021, the Board have `iV `i` Ì ` > vÀii `À>Ü Ì i } Ì° 7i Ü Li À>vy } x Ý å£ää " i À Ƃ 6 ÕV iÀð CU Online Plus As a registered CU Online user, you can Q Manage your credit union account anywhere 24/7 Q Transfer funds online Q Lodge money into your credit union from a bank account or building society account Q Pay bills online at no charge Q Check loan repayments with our loan calculator Q Apply for a loan online Q Collect your loan online Q Check your account balances and latest transactions on your accounts Q View and Print your statements Q Contact Black Raven Credit Union via secure messaging section Q Upload documents securely Online users will need to login using the browser Google Chrome, Firefox or Safari.

We are available at 01-4610682 Monday to Friday 9-5 to take a loan application by telephone if preferred.

4

BLACK RAVEN CREDIT UNION

CHAIRPERSONS REPORT COVID-19

2020 was the year of COVID-19 when the world was hit by a pandemic which caused a global health crisis. In early March 2020, the virus arrived in Ireland presenting unprecedented challenges for us all. It changed completely the nature of our lives, our work, our family life, our freedom to travel and leisure activities.

It had an immediate impact on our activities and how we operated our business. Credit 1 à ÜiÀi V >Ãà wi` LÞ } ÛiÀ i Ì >à > iÃÃi Ì > ÃiÀÛ Vi > ` ÕÀ "] ÃÌ>vv > ` volunteers adapted to the challenges. We have continued to serve our members’ needs Ì iÃi ` vwVÕ Ì V ÀVÕ ÃÌ> Vià V Õ` } i ÃÕÀ } V Ì Õ ÌÞ «À Û Ã v ÃiÀÛ ViÃ Ì members by developing online services and discontinuing operations at the service centres temporarily to ensure our staff, volunteers and members are safe and we comply with public health guidelines.

We have implemented the Workplace Protocol with regard to COVID 19 and updated our Health and Safety policies and procedures. We have invested in equipment to ensure our employees and volunteers have a safe working environment when required to work at the vwVi° / i , Ã ,i} ÃÌiÀ >Ì >V ,>Ûi 1 >Ã Lii Õ«`>Ìi` Ài}Õ >À Þ Ì Ì> i >VV Õ Ì of new and emerging risk and we have taken steps to mitigate these risks as they arise.

We have Service Level Agreements with all of our key suppliers, and these are regularly reviewed by the Board of Directors and Management.

7 i Ì Ã Ì « ÃÃ L i Ì µÕ> Ì vÞ Ì i w > V > ivviVÌ v Ì i «> `i V Ü Ì ViÀÌ> ÌÞ] Ì i >À` v ÀiVÌ ÀÃ > ` > >}i i Ì >Ài v Ì i Û iÜ Ì >Ì Ã } wV> Ì >`ÛiÀÃi ivviVÌ Ü >À Ãi > ` Ì iÀiv Ài >`` Ì > w > V > >` ÕÃÌ i ÌÃ Ì Ì i w > V > ÃÌ>Ìi i ÌÃ >Ài required. On behalf of the Board of Directors and members of Black Raven I want to record our appreciation to our CEO, Susan Lynch and staff who bring a professionalism, enthusiasm and commitment in the current challenging environment.

Financial Performance

Our core business is lending and saving. COVID-19 has contributed to the imbalance between lending and savings that credit unions are continuing to experience. In the last w > V > Þi>À] > Ì Ì> v Çnx > à ÜiÀi >`Û> Vi` Ì i LiÀà > Õ Ì } Ì åÎ]xäÇ]䣣° i LiÀà à >Àià VÀi>Ãi` LÞ £Ó°x¯ Ì åÓä]ÎÇÇ]{äΰ ->Û }à >Ài «À ÌiVÌi` LÞ Ì i ÛiÀ i Ì i« Ã Ì Õ>À> Ìii -V i i Õ« Ì Ì i Û> Õi v å£ää]äää° / i Ì Ì> >ÃÃiÌà v Ì i Ài` Ì 1 >Ûi VÀi>Ãi` LÞ £ä°È¯ Ì åÓ{°Î ° Black Raven Credit Union has a current membership of 2,652 of which 74 were new members in the past year. We are advised by the Central Bank as follows: “The Central Bank expects the priority focus for 2020 year-end to be on the maintenance and building of reserves over payment of distributions (dividends and loan interest rebates) to members.” Following the above clear advice together with other Credit Unions, The Board of Directors of Black Raven has decided not to propose to the AGM the payment of > Þ Û `i ` À ÌiÀiÃÌ ,iL>Ìi v À Ì i w > V > Þi>À ÓäÓä°

ANNUAL REPORT AND ACCOUNTS 2020

5

CHAIRPERSONS REPORT (CONTINUED) The Investment returns continue to be low and new investment rates are mostly negative or âiÀ ° / iÀi V Ì ÕiÃ Ì Li > >À}i VÀi>Ãi Ã>Û }à v Ì i À`iÀ v £{¯ > ` Ìi` ÃV «i for increase in lending due to the economic environment. This in turn gives rise to rapidly }À Ü } > Õ Ì v ÃÕÀ« Õà vÕ `ð 7i >Ài ÀiµÕ Ài` LÞ Ì i i ÌÀ> > Ì > V>Ìi £ä¯ v our surplus to a statutory reserve, thus reducing our available surplus at year end.

In order to limit the imbalance between saving and lending, like most other credit unions, it is proposed to have a cap on the amount of savings that members may hold. This cap will be reviewed on an ongoing basis.

Members Draw

Our members Draw continues to grow with 1,420 Members at the 30/9/2020 contributing to our µÕ>ÀÌiÀ Þ V>à `À>Ü° / à `À>Ü Ã ÀÕ > LÀi> iÛi L>à à > ` Ì i «>ÃÌ w > V > Þi>À Ì i Ì Ì> ` ÃÌÀ LÕÌi` «À âià Ü>à åÈÇ]äää° / i ÀiÃÕ Ìà >Ài «ÕL à i` i` >Ìi Þ >vÌiÀ Ì i `À>Ü° Ƃà «>ÀÌ v ÕÀ {äÌ > ÛiÀÃ>ÀÞ Vi iLÀ>Ì Ã Üi i ` > >`` Ì > `À>Ü v À åÓä]äää ­Óä «À âià v å£]äää® Liv Ài À ÃÌ >ð

Regulation

The pace of Regulatory change continues, and credit unions are operating in an environment that has utterly transformed in recent years. PSD2 (The Second Payment Services Directive) This is EU Legislation which applies to all payment services in the EU. It has been introduced to make electronic payments more secure. Implementing Legislation/ Regulation is expensive particularly in the area of Information Technology. It is time consuming, resource heavy and requires ongoing training. There are increased operational costs with Internal ƂÕ` Ì] , à ] « > Vi > ` /° / iÀi >Ài à } wV> Ì «i > Ì ià v À LÀi>V ià v Ì iÃi Ài}Õ >Ì Ã° 7i >Ûi wÀ Þ i Li``i` > Ì i Ài}Õ >Ì ÀÞ > ` i} à >Ì Ûi V > }iÃ Ì >Ì >Ûi been introduced and we must ensure that we remain in compliance on an ongoing basis.

Service Improvements

The operation of CU Online facility helps members manage their credit union account in their own time by logging in through the website. You can now access your online account from your smart phone using our mobile app “cuAnywhere”. This gives you the ability to access your account from anywhere 24/7.

It is envisaged to have a new app with improved functionality called cuMobile available early in 2021. Improvements to our website and the publication of newsletters help keep i LiÀà v À i` v iÜ ÃiÀÛ Vià > ` > À>Ìið 7i Ü V ÀÀië ` Ü Ì Çx¯ v ÕÀ i LiÀà LÞ i > Ü V à > Ài ivwV i Ì i> à v V Õ V>Ì ° 7i Ü Õ ` i Ì improve on this number, so if you have an email address please let the Credit Union know.

Lending Environment

Banks are recovering and are aggressively targeting consumers with loan products that directly compete with Black Raven services. We must continue to adapt and market our loans and improve services to ensure the continued viability and sustainability of our credit union.

6

BLACK RAVEN CREDIT UNION

CHAIRPERSONS REPORT (CONTINUED) Nomination of your account

This is a unique facility for credit union members. You can nominate a person of your choice to ÀiVi Ûi Ì i «À «iÀÌÞ v Þ ÕÀ VÀi` Ì Õ >VV Õ ÌÃ «ÀiÃi Ì Þ Õ« Ì > >Ý Õ Û> Õi v åÓÎ]äää upon your death. If you do not already have a Nomination Form in place you can arrange this by contacting Black Raven at 01 4610682 or by emailing enquiries@blackravencu.ie.

Conclusion

At the time of writing this report, we are in a very uncertain health and economic environment, but the introduction and rollout of multiple vaccines provides us with much needed hope for the future.

Finally, I want to thank you the members for your loyalty and support to Black Raven during the past 40 years of existence, to all the directors, committee members, Board Oversight committee members, volunteers and staff past and present for their time and commitment to our credit union.

Gerry Berrigan Chairperson of Board of Directors

ANNUAL REPORT AND ACCOUNTS 2020

7

DIRECTORS REPORT

FOR THE YEAR ENDED 30 SEPTEMBER 2020 / i ÀiVÌ ÀÃ «ÀiÃi Ì Ì i À Ài« ÀÌ > ` Ì i >Õ` Ìi` w > V > ÃÌ>Ìi i ÌÃ v À Ì i Þi>À i `i` 30th September 2020.

Objects

The principal activity of Black Raven Credit Union Limited is the provision of savings and loans to members in its common bond. The Credit Union manages its members’ shares, capital and loans to members so that it earns income from the margin between interest receivable and interest payable.

Business Review Ì Ì i iÛi v LÕà iÃà > ` Ì i Þi>À i ` w > V > « Ã Ì ÜiÀi Ã>Ì Ãv>VÌ ÀÞ > ` ÜiÀi i Ü Ì w > V > «À iVÌ Ã° / i ÀiVÌ Àà iÝ«iVÌ Ì `iÛi « > ` iÝ«> ` Ì i Ài` Ì 1 ½Ã VÕÀÀi Ì >VÌ Û Ì ià > ` Ì iÞ >Ài V w`i Ì v Ìà >L ÌÞ Ì V Ì Õi Ì «iÀ>Ìi successfully in the future.

Principal Risks and Uncertainties

The purpose of the Credit Union is to allow members save together and lend to each other at a fair and reasonable rate of interest. / i «À V «> À à à > ` V > i }ià v>V } Ì Ã Ài` Ì 1 >Ài Ì i ` } > ÃÕvwV i Ì proportion of funds, so that too much of the Credit Union’s resources are tied up in investment products, and loan default. These risks are managed by the Credit Union’s Board so as to achieve an acceptable balance of growth and security for members’ resources. The Board reviews and agrees policies for managing each of these risks which are summarised at Note 1.

COVID-19

The Chairpersons Report has set out the impact of COVID-19 on the Credit Union and measures implemented to address these factors. While it is not possible to quantify the w > V > ivviVÌ v Ì i «> `i V Ü Ì ViÀÌ> ÌÞ] Ì i >À` v ÀiVÌ ÀÃ > ` > >}i i Ì >Ài v Ì i Û iÜ Ì >Ì Ã } wV> Ì >`ÛiÀÃi ivviVÌ Ü >À Ãi > ` Ì iÀiv Ài >`` Ì > w > V > >` ÕÃÌ i ÌÃ Ì Ì i w > V > ÃÌ>Ìi i ÌÃ >Ài ÀiµÕ Ài`°

8

BLACK RAVEN CREDIT UNION

DIRECTORS REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

Directors and Board Oversight Committee Members

The current Directors and Board Oversight Committee members are as set out on page 3.

In accordance with Section 53 of the Credit Union Act 1997 (as amended), two Directors of the Credit Union are required to retire from the Board at this year’s Annual General Meeting.

Being eligible, the Directors offer themselves for re-election.

Authorisation

The Credit Union is authorised to conduct investment business. It is regulated by the Central Bank of Ireland for these activities.

Accounting Records

The Directors believe that they comply with the requirements of Section 108 of the Credit Union Act 1997 (as amended) with regard to books of account by employing personnel with >««À «À >Ìi iÝ«iÀÌ Ãi > ` LÞ «À Û ` } >`iµÕ>Ìi Àià ÕÀViÃ Ì Ì i w > V > vÕ VÌ ° / i books of account of the Credit Union are maintained at the Credit Union’s premises at the

Ài` Ì 1 ½Ã i>` "vwVi] Õ ÌÞ > ] i }>À` -µÕ>Ài ÀÌ ] /> >} Ì] ÕL Ó{°

Post Balance Sheet Events 7 Ì Ì i iÝVi«Ì v "6 £ ] Ì iÀi >Ûi Lii à } wV> Ì iÛi Ìà >vviVÌ } Ì i Ài` Ì Union since the year-end.

Statement of Relevant Audit information / i ` ÀiVÌ ÀÃ vwVi >Ì Ì i `>Ìi v Ì Ã Ài« ÀÌ >Ûi i>V V wÀ i` Ì >Ì\ Q so far as they are aware, there is no relevant audit information of which the Company’s auditors are unaware; and Q they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the Company’s auditors are aware of that information.

9

ANNUAL REPORT AND ACCOUNTS 2020

STATEMENT OF DIRECTORS RESPONSIBILITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020

/ i Ài` Ì 1 ƂVÌà £ Ç Ì Óä£n] ÀiµÕ ÀiÃ Ì i ` ÀiVÌ ÀÃ Ì «Ài«>Ài w > V > ÃÌ>Ìi i Ìà v À i>V w > V > Þi>À Ü V } Ûi > ÌÀÕi > ` v> À Û iÜ v Ì i ÃÌ>Ìi v >vv> Àà v Ì i Ài` Ì Union and of the income and expenditure of the Credit Union for that period. In preparing Ì Ãi w > V > ÃÌ>Ìi i ÌÃ] Ì i ` ÀiVÌ Àà >Ài ÀiµÕ Ài` Ì \ Q select suitable accounting policies and then apply them consistently; Q make judgements and estimates that are reasonable and prudent; Q «Ài«>Ài Ì i w > V > ÃÌ>Ìi i ÌÃ Ì i } } V ViÀ L>Ã Ã Õ iÃÃ Ì Ã >««À «À >Ìi Ì presume that the Credit Union will continue in business.

Q comply with the requirements of Section 108 of the Credit Union Act 1997 to 2018 with regard to books of account by employing accounting personnel with appropriate iÝ«iÀÌ Ãi > ` LÞ «À Û ` } >`iµÕ>Ìi Àià ÕÀViÃ Ì Ì i w > V > vÕ VÌ ° The directors are responsible for keeping proper accounting records which disclose with Ài>à >L i >VVÕÀ>VÞ >Ì > Þ Ì i Ì i w > V > « Ã Ì v Ì i Ài` Ì 1 > ` Ì i >L i Ì i Ì i ÃÕÀi Ì >Ì Ì i w > V > ÃÌ>Ìi i Ìà >Ài «Ài«>Ài` >VV À`> Vi Ü Ì >«« V>L i Irish law and Generally Accepted Accounting Practice in Ireland, including the standards issued by the Financial Reporting Council, and in particular FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and Credit Union Act 1997 to 2018.

They are responsible for safeguarding the assets of the Credit Union and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AUDITORS

In accordance with section 115 of the Credit Union Act 1997 to 2018, the auditors PKF, O’Connor, Leddy and Holmes Limited offer themselves for re-election.

On behalf of the Board of Directors G. Berrigan Chairperson

T. McHugh Vice-Chairperson

Date: 08/02/2021

STATEMENT OF BOARD OVERSIGHT COMMITTEE’S RESPONSIBILITIES FOR THE YEAR ENDED 30 SEPTEMBER 2020

The Credit Union Acts 1997 to 2018 require the appointment of a Board Oversight Committee to assess whether the Board of Directors has operated in accordance with Part IV, Part IV (a) and any regulations made for the purposes of Part IV or Part IV (a) of the Credit Union Act 1997 to 2018 and any other matter prescribed by the Central Bank in respect of which they are to have regard in relation to the Board.

M. Galvin Chairperson of the Board Oversight Committee Date: 08/02/2021

S. Stevenson Secretary of the Board Oversight Committee Date: 08/02/2021

10

BLACK RAVEN CREDIT UNION

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF BLACK RAVEN CREDIT UNION LIMITED REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion

7i >Ûi >Õ` Ìi` Ì i w > V > ÃÌ>Ìi i Ìà v >V ,>Ûi Ài` Ì 1 Ìi` v À Ì i Þi>À ended 30th September 2020, which comprise the Income and Expenditure Account, Balance - iiÌ] -Ì>Ìi i Ì v > }ià ,iÃiÀÛià > ` >à y Ü -Ì>Ìi i Ì > ` ÌiÃ Ì Ì i w > V > ÃÌ>Ìi i ÌÃ] V Õ` } Ì i ÃÕ >ÀÞ v à } wV> Ì >VV Õ Ì } « V ià ÃiÌ ÕÌ Ìi £° / i w > V > Ài« ÀÌ } vÀ> iÜ À Ì >Ì >à Lii >«« i` Ì i À «Ài«>À>Ì Ã À à >Ü > ` FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. ÕÀ « Ì i w > V > ÃÌ>Ìi i ÌÃ\ Q give a true and fair view of the state of the Credit Union’s affairs as at 30th September ÓäÓä > ` Ìà V i > ` iÝ«i ` ÌÕÀi > ` V>à y Üà v À Ì i Þi>À Ì i i `i`Æ Q have been properly prepared in accordance with FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and Q have been properly prepared in accordance with the requirements of the Credit Union Act 1997 to 2018.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under those standards are described below in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Credit Union in accordance with ethical requirements Ì >Ì >Ài Ài iÛ> Ì Ì ÕÀ >Õ` Ì v w > V > ÃÌ>Ìi i Ìà Ài > `] V Õ` } Ì i Ì V> -Ì> `>À` issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), and we have vÕ w i` ÕÀ Ì iÀ iÌ V> Àië à L Ì ià >VV À`> Vi Ü Ì Ì iÃi ÀiµÕ Ài i Ìð 7i Li iÛi Ì >Ì Ì i >Õ` Ì iÛ `i Vi Üi >Ûi LÌ> i` à ÃÕvwV i Ì > ` >««À «À >Ìi Ì provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which ISAs (Ireland) require us to report to you where: Q the directors’ use of the going concern basis of accounting in the preparation of the w > V > ÃÌ>Ìi i ÌÃ Ã Ì >««À «À >Ìi\ À Q Ì i ` ÀiVÌ Àà >Ûi Ì ` ÃV Ãi` Ì i w > V > ÃÌ>Ìi i Ìà > Þ `i Ì wi` >ÌiÀ > Õ ViÀÌ> Ì iÃ Ì >Ì >Þ V>ÃÌ Ã } wV> Ì ` ÕLÌ >L ÕÌ Ì i Ài` Ì 1 ½Ã >L ÌÞ Ì V Ì Õi to adopt the going concern basis of accounting for a period of at least twelve months vÀ Ì i `>Ìi Ü i Ì i w > V > ÃÌ>Ìi i Ìà >Ài >ÕÌ À Ãi` v À ÃÃÕi°

Other information

The directors are responsible for the other information. The other information comprises Ì i v À >Ì V Õ`i` Ì i > Õ> Ài« ÀÌ Ì iÀ Ì > Ì i w > V > ÃÌ>Ìi i ÌÃ > ` ÕÀ

ANNUAL REPORT AND ACCOUNTS 2020

11

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF BLACK RAVEN CREDIT UNION LIMITED >Õ` Ì À½Ã Ài« ÀÌ Ì iÀi ° "ÕÀ « Ì i w > V > ÃÌ>Ìi i Ìà ` iÃ Ì V ÛiÀ Ì i Ì iÀ information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

V iVÌ Ü Ì ÕÀ >Õ` Ì v Ì i w > V > ÃÌ>Ìi i ÌÃ] ÕÀ Àië à L ÌÞ Ã Ì Ài>` Ì i other information and, in doing so, consider whether the other information is materially V à ÃÌi Ì Ü Ì Ì i w > V > ÃÌ>Ìi i Ìà À ÕÀ Ü i`}i LÌ> i` Ì i >Õ` Ì] À otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material ÃÃÌ>Ìi i Ì Ì i w > V > ÃÌ>Ìi i Ìà À > >ÌiÀ > ÃÃÌ>Ìi i Ì v Ì i Ì iÀ v À >Ì ° If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Credit Union Act 1997 to 2018

Based solely on the work undertaken in the course of the audit, we report that: Q We have obtained all the information and explanations which we consider necessary for the purposes of our audit Q In our opinion proper accounting records have been kept by the Credit Union, and Q / i w > V > ÃÌ>Ìi i Ìà >Ài >}Àii i Ì Ü Ì Ì i >VV Õ Ì } ÀiV À`ð

Respective responsibilities 4GURQPUKDKNKVKGU QH FKTGEVQTU HQT VJG ƂPCPEKCN UVCVGOGPVU As explained more fully in the directors’ responsibilities statement set on page 9, the ` ÀiVÌ Àà >Ài Àië à L i v À Ì i «Ài«>À>Ì v Ì i w > V > ÃÌ>Ìi i Ìà > ` v À Li } Ã>Ì Ãwi` Ì >Ì Ì iÞ } Ûi > ÌÀÕi > ` v> À Û iÜ] > ` v À ÃÕV ÌiÀ > V ÌÀ >Ã Ì iÞ `iÌiÀ i à iViÃÃ>ÀÞ Ì i >L i Ì i «Ài«>À>Ì v w > V > ÃÌ>Ìi i ÌÃ Ì >Ì >Ài vÀii vÀ >ÌiÀ > misstatement, whether due to fraud or error. «Ài«>À } Ì i w > V > ÃÌ>Ìi i ÌÃ] Ì i ` ÀiVÌ Àà >Ài Àië à L i v À >ÃÃiÃà } Ì i Ài` Ì Union’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Credit Union or to cease operations, or has no realistic alternative but to do so.

#WFKVQToU TGURQPUKDKNKVKGU HQT VJG CWFKV QH VJG ƂPCPEKCN UVCVGOGPVU "ÕÀ L iVÌ Ûià >Ài Ì LÌ> Ài>à >L i >ÃÃÕÀ> Vi >L ÕÌ Ü iÌ iÀ Ì i w > V > ÃÌ>Ìi i Ìà >à 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 (Ireland) 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 Ì yÕi Vi Ì i iV V `iV à à v ÕÃiÀà Ì> i Ì i L>à à v Ì iÃi w > V > ÃÌ>Ìi i Ìð

12

BLACK RAVEN CREDIT UNION

INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF BLACK RAVEN CREDIT UNION LIMITED Further information regarding the scope of our responsibilities as auditor

As part of an audit in accordance with ISAs (Ireland), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: Q

`i Ì vÞ > ` >ÃÃiÃÃ Ì i À Ã Ã v >ÌiÀ > ÃÃÌ>Ìi i Ì v Ì i w > V > ÃÌ>Ìi i ÌÃ] whether due to fraud or error, design and perform audit procedures responsive to Ì Ãi À Ã Ã] > ` LÌ> >Õ` Ì iÛ `i Vi Ì >Ì Ã ÃÕvwV i Ì > ` >««À «À >Ìi Ì «À Û `i > 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.

Q Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Credit Union’s internal control.

Q Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Q Conclude on the appropriateness of the director’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty iÝ ÃÌà Ài >Ìi` Ì iÛi Ìà À V ` Ì Ã Ì >Ì >Þ V>ÃÌ Ã } wV> Ì ` ÕLÌ Ì i Ài` Ì Union’s ability to continue as going concerns. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures Ì i w > V > ÃÌ>Ìi i Ìà À] v ÃÕV ` ÃV ÃÕÀià >Ài >`iµÕ>Ìi] Ì ` vÞ ÕÀ « ° 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 going concerns.

Q Û> Õ>Ìi Ì i ÛiÀ> «ÀiÃi Ì>Ì ] ÃÌÀÕVÌÕÀi > ` V Ìi Ì v Ì i w > V > ÃÌ>Ìi i ÌÃ] V Õ` } Ì i ` ÃV ÃÕÀiÃ] > ` Ü iÌ iÀ Ì i w > V > ÃÌ>Ìi i ÌÃ Ài«ÀiÃi Ì Ì i Õ `iÀ Þ } transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, Ì i « > i` ÃV «i > ` Ì } v Ì i >Õ` Ì > ` à } wV> Ì >Õ` Ì w ` }Ã] V Õ` } > Þ Ã } wV> Ì `iwV i V ià ÌiÀ > V ÌÀ Ì >Ì Üi `i Ì vÞ `ÕÀ } ÕÀ >Õ` Ì°

The purpose of our audit work and to whom we owe our responsibilities

Our report is made solely to the Credit Union’s members, as a body, in accordance with section 120 of the Credit Union Act 1997 to 2018. Our audit work has been undertaken so that we might state to the Credit Union’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Credit Union and the Credit Union’s members, as a body, for our audit work, for this report, or for the opinions we have formed.

PKF O’Connor, Leddy & Holmes Limited Registered Auditors Century House, Harolds Cross Road, Harolds Cross, Dublin 6W

Date: 08/02/2021

13

ANNUAL REPORT AND ACCOUNTS 2020

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2020

Notes INCOME

2020 €

2019 €

Interest on Members’ Loans

2

667,488

659,516

Other interest income and similar income

3

44,118

66,913

Interest payable and similar charges

4

(419)

(412)

711,187

726,017

74

8,047

711,261

734,064

203,353

190,675

Net Interest Income Other Income

5

TOTAL INCOME EXPENDITURE Employment Costs

6

Other Management Expenses (Schedule 1)

310,294

293,690

Depreciation

9

27,661

21,226

Net cost on loans to members

12

(50,334)

(44,019)

TOTAL EXPENDITURE

490,974

461,572

SURPLUS FOR THE YEAR

220,287

272,492

-

-

220,287

272,492

Other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE YEAR

These Financial Statements were approved, and authorised for issue, by the Board on Date: 08/02/2021 and signed on its behalf by:

Gerry Berrigan Member of the Board of Directors

Michael Galvin Member of the Board Oversight Committee

Susan Lynch CEO

14

BLACK RAVEN CREDIT UNION

BALANCE SHEET

AS AT 30 SEPTEMBER 2020 Notes ASSETS

2020 €

2019 €

Cash and Balances at Bank

8

2,157,679

2,726,434

Tangible Fixed Assets

9

122,017

110,152

Debtors, Prepayments and Accrued Income

10

18,550

18,737

Deposits and Investments

11

14,514,370

11,590,957

Loans to Members

12

7,817,733

7,879,141

(282,356)

(319,801)

24,347,993

22,005,620

Less: Provision for Bad and Doubtful Debts TOTAL ASSETS MEMBERS LIABILITIES Members’ Shares

13

19,440,474

17,450,449

Members’ Deposits

14

300,907

181,653

Money saver accounts

15

636,022

471,150

16

51,543

61,718

(20,428,946)

(18,164,970)

3,919,047

3,840,650

2,434,799

2,200,562

39,094

38,246

Realised Reserves

1,445,154

1,601,842

TOTAL RESERVES

3,919,047

3,840,650

OTHER LIABILITIES Other Liabilities and Charges TOTAL LIABILITIES ASSETS LESS LIABILITIES MEMBERS RESOURCES Regulatory Reserve Operational Risk Reserve

These Financial Statements were approved, and authorised for issue, by the Board on Date: 08/02/2021 and signed on its behalf by:

Gerry Berrigan Member of the Board of Directors

Michael Galvin Member of the Board Oversight Committee

Susan Lynch CEO

15

ANNUAL REPORT AND ACCOUNTS 2020

STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 30 SEPTEMBER 2020

Regulatory Operational Distributable reserve risk reserve reserve € € €

Total Reserve €

Opening balances at 1 October 2018

2,084,425

37,246

Total comprehensive income for the year

-

-

272,492

272,492

Dividend paid during the year

-

-

(44,225)

(44,225)

(112,230)

(112,230)

(117,137)

-

Interest rebate during the year Transfer between reserves

1,602,942 3,724,613

116,137

1,000

Closing balances at 30 September 2019 2,200,562

38,246

1,601,842 3,840,650

Opening balances at 1 October 2019

2,200,562

38,246

1,601,842 3,840,650

Total comprehensive income for the year

-

-

Dividend paid during the year

-

-

(34,591)

(34,591)

-

(107,299)

(107,299)

234,237

848

(235,085)

-

Closing balances at 30 September 2020 2,434,799

39,094

Interest rebate during the year Transfer between reserves

Q Q

Q

220,287

220,287

1,445,154 3,919,047

/ i ,i}Õ >Ì ÀÞ ÀiÃiÀÛi v Ì i Ài` Ì 1 >à ¯ v Ì Ì> >ÃÃiÌà >à >Ì ÎäÌ -i«Ìi LiÀ ÓäÓä Ü>à £ä¯° ­Óä£ \ £ä¯®° In accordance with Section 45 of the Credit Union Act 1997 to 2018, Black Raven Credit Union put in place an Operational Risk reserve during 2016. In 2020, the Board approved > ÌÀ> ÃviÀ v ån{n Ì Ì i "«iÀ>Ì > , à ÀiÃiÀÛi] v Ü } Ì i V « iÌ v > ÌiÀ > process of assessing the level of the reserve required to cover the operational risk within Ì i Ài` Ì 1 ° / i "«iÀ>Ì > , à ÀiÃiÀÛi >à > ¯ v Ì Ì> >ÃÃiÌà >à >Ì ÎäÌ -i«Ìi LiÀ ÓäÓä Ü>à 䰣ȯ° Following commencement of Section 13 of the 2012 Act, the requirement for Credit 1 Ã Ì ÌÀ> ÃviÀ £ä¯ v Ì i À > Õ> ÃÕÀ« ÕÃ Ì Ì i À ÃÌ>ÌÕÌ ÀÞ ÀiÃiÀÛi i>V Þi>À >à Lii Ài Ûi`° ÜiÛiÀ Ì i >À` >Ûi `iV `i` Ì ÌÀ> ÃviÀ åÓÎ{]ÓÎÇ v Ìà VÕÀÀi Ì Þi>À ÃÕÀ« ÕÃ Ì Ìà ,i}Õ >Ì ÀÞ ÀiÃiÀÛi Ã Ì >Ì Ì i ÀiÃiÀÛi Ü Õ ` ÃÌ> ` >Ì £ä¯°

These Financial Statements were approved, and authorised for issue, by the Board on Date: 08/02/2021 and signed on its behalf by:

Gerry Berrigan Member of the Board of Directors

Michael Galvin Member of the Board Oversight Committee

Susan Lynch CEO

16

BLACK RAVEN CREDIT UNION

CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2020 2020 € Opening Cash and Investments

2020 €

2019 €

14,317,391

2019 € 13,369,910

RECEIPTS Members’ Shares Members’ Deposits Members’ Current Accounts Money Saver Deposits Members’ Loans Repaid Members’ Loans Interest Received

4,885,310

4,291,993

251,502

167,094

1,092,452

515,355

779,924

627,391

3,568,419

3,564,386

667,488

659,516

Investment Interest Received

44,118

66,913

Bad Debts Recovered

12,889

11,134

74

8,047

Other Receipts Decrease / (Increase) in Other Assets

(9,988)

TOTAL

11,292,188

(2,174)

25,609,579

9,909,655 23,279,565

DISBURSEMENTS Members’ Shares Withdrawn Members’ Deposits Withdrawn Members’ Current Accounts Money Saver Withdrawn Members’ Loans Granted Dividends Paid

2,900,878

3,484,391

132,248

92,687

1,086,860

507,010

615,052

460,384

3,507,011

3,728,101

34,591

44,225

Loan Interest Rebate Paid

107,299

105,276

Operating expenses

514,065

512,439

39,526

27,661

Fixed Assets Purchased TOTAL Closing Cash and Investments

8,937,530

8,962,174

16,672,049

14,317,391

ANNUAL REPORT AND ACCOUNTS 2020

17

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020 LEGAL AND REGULATORY FRAMEWORK

Black Raven Credit Union Limited is established under the Credit Union Acts 1997 to 2018 (as amended). Black Raven Credit Union Limited is registered with the Registrar of Credit Unions and is regulated by the Central Bank of Ireland. The principal place of business is Belgard Square, Tallaght, Dublin 24.

1. ACCOUNTING POLICIES Statement of compliance and basis of preparation

/ iÃi w > V > ÃÌ>Ìi i Ìà >Ûi Lii «Ài«>Ài` >VV À`> Vi Ü Ì ,- £äÓ º/ i Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”).

/ i w > V > ÃÌ>Ìi i Ìà >Ûi Lii «Ài«>Ài` Ì i ÃÌ À V> V ÃÌ L>à ð

Currency

/ i w > V > ÃÌ>Ìi i ÌÃ >Ài «Ài«>Ài` ÕÀ ] Ü V Ã Ì i vÕ VÌ > VÕÀÀi VÞ v Ì i Ài` Ì 1 ° iÌ>ÀÞ > Õ ÌÃ Ì iÃi w > V > ÃÌ>Ìi i ÌÃ >Ài À Õ `i` Ì Ì i i>ÀiÃÌ ÕÀ °

Going Concern

/ i w > V > ÃÌ>Ìi i Ìà >Ài «Ài«>Ài` Ì i } } V ViÀ L>à ð / i ` ÀiVÌ Àà v >V Raven Credit Union Limited believe this is appropriate as the Credit Union: Q Is generating annual surpluses; Q Maintains an appropriate level of liquidity; and Q Has reserves that are currently above the minimum requirements of the Central Bank.

Income

V i à ÀiV } Ãi` Ì Ì i iÝÌi Ì Ì >Ì Ì Ã «À L>L i Ì >Ì Ì i iV V Li iwÌÃ Ü y Ü Ì Ì i VÀi` Ì Õ > ` Ì >Ì ÀiÛi Õi V> Li Ài >L Þ i>ÃÕÀi`° V i à i>ÃÕÀi` at the fair value of the consideration received.

The following criteria must also be met before revenue is recognised:

Interest on members’ loans

Interest on loans to members is recognised using the effective interest method, and is calculated and accrued on a daily basis.

Investment income

Investment income is recognised on an accruals basis using the effective interest method.

Other income

Other income such as commissions receivable on insurance products and foreign iÝV > }i ÃiÀÛ Vià >À Ãià V iVÌ Ì Ã«iV wV ÌÀ> Ã>VÌ Ã° V i Ài >Ì } Ì individual transactions is recognised when the transaction is completed.

18

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Dividends to Members and Interest on Members’ Deposits

Interest on members’ deposits Interest on members’ deposits is recognised using the effective interest method.

Dividends on shares and loan interest rebate Dividends are made from current year’s surplus or the dividend reserves set aside for that purpose. The Board’s proposed distribution to members each year is based on the dividend and loan interest rebate policy.

/ i À>Ìi v ` Û `i ` > ` > ÌiÀiÃÌ ÀiL>Ìi ÀiV i `i` LÞ Ì i >À` Ü ÀiyiVÌ\ Q the Board’s responsibility to ensure that members’ savings are safeguarded; Q the credit union’s regulatory reserve requirements; Q the macro economic environment and the returns available for similar savings «À `ÕVÌÃ Ì i À à w > V > ÃiÀÛ Vià ÃiVÌ ÀÆ Q the Board’s desire to maintain dividends at a sustainable level on an ongoing basis; and Q members’ legitimate dividend and loan interest rebate expectations.

All dominated by prudence and the need to sustain the long-term welfare of the Credit Union.

For this reason, the Board will seek to build up its reserves to absorb unexpected shocks and still remain above minimum regulatory requirements.

The Credit Union accounts for dividends and rebates of loan interest when members ratify such payments at the Annual General Meeting.

Taxation

The Credit Union is not subject to income tax or corporation tax on its activities as a Credit Union.

Cash and cash equivalents

Cash and cash equivalents comprise operating cash on hand and cash deposited with banks with original maturity of less than or equal to three months.

Financial instruments

The Credit Union has elected to apply the provisions of Section 11 ‘Basic Financial ÃÌÀÕ i Ìý v ,- £äÓ Ì > v Ìà w > V > ÃÌÀÕ i Ìð > V > ÃÌÀÕ i Ìà >Ài ÀiV } Ãi` when the Credit Union becomes a party to the contractual provisions of the instrument.

> V > >ÃÃiÌà > ` >L Ì ià >Ài vvÃiÌ] Ü Ì Ì i iÌ > Õ Ìà «ÀiÃi Ìi` Ì i w > V > statements, when, and only when, there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

ANNUAL REPORT AND ACCOUNTS 2020

19

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED)

> V > >ÃÃiÌà > ` >L Ì ià >Ài V >Ãà wi` >VV À` } Ì Ì i ÃÕLÃÌ> Vi v Ì i V ÌÀ>VÌÕ> arrangements entered into.

$CUKE ƂPCPEKCN CUUGVU

>Ã V w > V > >ÃÃiÌÃ >Ài Ì > Þ i>ÃÕÀi` >Ì Ì i ÌÀ> Ã>VÌ «À Vi] V Õ` } ÌÀ> Ã>VÌ costs, and are subsequently carried at amortised cost using the effective interest iÌ `° >Ã V w > V > ÃÌÀÕ i ÌÃ V Õ`i Ì i v Ü }\

Loans to members > Ã Ì i LiÀà >Ài w > V > >ÃÃiÌÃ Ü Ì wÝi` À `iÌiÀ >L i «>Þ i Ìð > à >Ài recognised when cash is advanced to members and measured at amortised cost using the effective interest method.

Investments Fixed-term deposit accounts /iÀ `i« à Ìà > ` wÝi` ÌiÀiÃÌ ÛiÃÌ i Ì L `Ã Ü Ì wÝi` >ÌÕÀ ÌÞ `>Ìià >Ài Û> Õi` at the lower of cost or encashment value and interest is recognised in the Income Statement when it is received or irrevocably receivable.

Central Bank reserve funds Investments with return of capital guarantee at maturity are valued at the capital guaranteed amount plus accrued income. The minimum guaranteed investment income is recognised in the Income and Expenditure account on an accruals basis over the life of the investment. Investment income in excess of the minimum guaranteed amount is ignored until the investment is sold or the income is received.

+PXGUVOGPV DQPFU YKVJ RTQƂV 7 Ì «À wÌ L `Ã Ü Ì V>« Ì> }Õ>À> Ìii` >Ài Û> Õi` >Ì V ÃÌ° iV >Ài` L ÕÃià >Ài recognised in the Income Statement when irrevocably receivable or earlier if the bond becomes realisable in the form of cash or cash equivalents in a secondary market.

Terminal bonuses are recognised in the Income statement when the Credit Union becomes irrevocably entitled to receive them.

Bonds with guaranteed capital and variable interest rates Interest income is recognised as received. Some bonds pay high rates of interest in early years and lower rates in later years. Paying higher amounts in early years reduces (impairs) the capital value of the bond. The capital value of the bond is tested annually for impairment and impairment losses are taken to the Income Statement. Impairment gains which reverse a previous impairment loss are taken to the Income Statement with any gains in excess of the cost of the product ignored until the bond matures.

20

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Held at amortised cost Investments designated on initial recognition as held at amortised cost are measured at amortised cost using the effective interest method less impairment. This means that the investment is measured at the amount paid for the investment, minus any repayments of the principal; plus or minus the cumulative amortisation using the effective interest method of any difference between the amount at initial recognition and the maturity amount, ÕÃ] Ì i V>Ãi v > w > V > >ÃÃiÌ] > Þ Ài`ÕVÌ v À «> À i Ì À Õ V iVÌ>L ÌÞ° Investments at fair value Revalued investment properties are not depreciated or amortised. Where the valuation indicates a permanent diminution in the value of the property, the permanent diminution à V >À}i` Ì Ì i V i > ` Ý«i ` ÌÕÀi >VV Õ Ì° Ƃ Ì iÀ yÕVÌÕ>Ì Ã Û> Õi >Ài transferred to a revaluation reserve.

Central Bank deposits Credit Unions are obliged to maintain certain deposits with the Central Bank. These deposits are technically assets of the credit union but to which the credit union has restricted access. The funds on deposit with the Central Bank attract nominal interest and will not ordinarily be returned to the credit union while it is a going concern. In accordance with the direction of the Central Bank, the amounts are shown as current assets and are not subject to impairment reviews.

Prepayments

Other receivables such as prepayments are initially measured at transaction price including transaction costs and are subsequently measured at amortised cost using the effective interest method.

Other receivables

Other receivables such as prepayments are initially measured at transaction price including transaction costs and are subsequently measured at amortised cost using the effective interest method.

+ORCKTOGPV QH ƂPCPEKCN CUUGVU

Financial assets, other than those held at fair value, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one À Ài iÛi ÌÃ Ì >Ì VVÕÀÀi` >vÌiÀ Ì i Ì > ÀiV } Ì v Ì i w > V > >ÃÃiÌ] Ì i iÃÌ >Ìi` vÕÌÕÀi V>à y Üà >Ûi Lii >vviVÌi`° If an asset is impaired, the impairment loss is the difference between the carrying > Õ Ì > ` Ì i «ÀiÃi Ì Û> Õi v Ì i iÝ«iVÌi` V>à y Üà ` ÃV Õ Ìi` >Ì Ì i >ÃÃi̽à original effective interest rate. Losses expected from future events are not recognised.

ANNUAL REPORT AND ACCOUNTS 2020

21

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) If there is objective evidence of impairment, loss is recognised in the Statement of

«Ài i à Ûi V i i` >Ìi Þ° "L iVÌ Ûi iÛ `i Vi Ì >Ì > w > V > >ÃÃiÌ À }À Õ« of assets is impaired includes observable data about the following loss events: Q Q Q

Q Q

à } wV> Ì w > V > ` vwVÕ ÌÞ v Ì i i LiÀ À ÛiÃÌ i Ì ÃÃÕiÀÆ a breach of contract, such as a default or delinquency in interest or principal payments; the credit union, for economic and legal reasons relating to the member’s or ÛiÃÌ i Ì ÃÃÕiÀ½Ã w > V > ` vwVÕ ÌÞ] }À> Ì } > V ViÃÃ Ì >Ì Ì i VÀi` Ì Õ would not otherwise consider; it has become probable that the member or investment issuer will enter bankruptcy À Ì iÀ w > V > Ài À}> Ã>Ì Æ > ` observable data indicating that there has been a measurable decrease in the iÃÌ >Ìi` vÕÌÕÀi V>à y Üà vÀ > }À Õ« v > ð

In the case of impairment of loans to members, the loans are assessed collectively in }À Õ«Ã Ì >Ì Ã >Ài à >À VÀi` Ì À à V >À>VÌiÀ ÃÌ Và iÝVi«Ì v À ` Û `Õ> Þ Ã } wV> Ì > à which are assessed on a loan by loan basis for impairment.

Investments are assessed for impairment individually.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the currency carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the Statement of Comprehensive Income.

&G TGEQIPKVKQP QH ƂPCPEKCN CUUGVU

> V > >ÃÃiÌà >Ài `iÀiV } Ãi` Þ Ü i Ì i V ÌÀ>VÌÕ> À } ÌÃ Ì Ì i V>à y Üà from the asset expire or are settled, or when the Credit Union transfers to another party ÃÕLÃÌ> Ì > Þ > v Ì i À à à > ` ÀiÜ>À`à v Ü iÀà « v Ì i w > V > >ÃÃiÌ] À v à i à } wV> Ì À à à > ` ÀiÜ>À`à v Ü iÀà « >Ài ÀiÌ> i` LÕÌ V ÌÀ v Ì i >ÃÃiÌ >à transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

In the case of loans to members, loans are derecognised, when the right to receive cash y Üà vÀ Ì i > à >Ûi iÝ« Ài`] ÕÃÕ> Þ Ü i > > Õ Ìà ÕÌÃÌ> ` } >Ûi Lii repaid by the member. Black Raven Credit Union Limited. does not transfer loans to third parties.

22

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED)

$CUKE ƂPCPEKCN NKCDKNKVKGU

>à V w > V > >L Ì ià >Ài Ì > Þ ÀiV } Ãi` >Ì Ì i ÌÀ> Ã>VÌ «À Vi] V Õ` } ÌÀ> Ã>VÌ V ÃÌÃ] Õ iÃÃ Ì i >ÀÀ> }i i Ì V ÃÌ ÌÕÌià > w > V } ÌÀ> Ã>VÌ ] Ü iÀi Ì i debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities are subsequently carried at amortised cost using the effective interest method.

Financial liabilities members’ shares and deposits Members’ shares, Money Management Accounts and Deposits are redeemable and Ì iÀiv Ài >Ài V >Ãà wi` >à w > V > >L Ì ið / iÞ >Ài Ì > Þ ÀiV } Ãi` >Ì Ì i > Õ Ì of cash deposited and subsequently members’ deposits are measured at amortised cost.

Other payables "Ì iÀ «>Þ>L ià >Ài V >Ãà wi` >à VÕÀÀi Ì >L Ì ià v «>Þ i Ì Ã `Õi Ü Ì i Þi>À À less. If not, they are presented as non-current liabilities. Other payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

&G TGEQIPKVKQP QH ƂPCPEKCN NKCDKNKVKGU

> V > >L Ì ià >Ài `iÀiV } Ãi` Ü i Ì i L }>Ì Ã v Ì i Ài` Ì 1 ëiV wi` in the contract are discharged, cancelled or expire.

Provisions and contingencies

Provisions are recognised when the credit union has a present legal or constructive L }>Ì >à > ÀiÃÕ Ì v «>ÃÌ iÛi ÌÃ] Ì Ã «À L>L i Ì >Ì > ÕÌy Ü v Àià ÕÀVià i L `Þ } iV V Li iwÌÃ Ü Li ÀiµÕ Ài` Ì ÃiÌÌ i Ì i L }>Ì ] > ` > Ài >L i estimate of the amount of the obligation can be made.

Contingent liabilities are possible obligations arising from past events, whose existence Ü Li V wÀ i` Þ LÞ Õ ViÀÌ> vÕÌÕÀi iÛi ÌÃ] À «ÀiÃi Ì L }>Ì Ã >À Ã } vÀ «>ÃÌ iÛi ÌÃ Ì >Ì >Ài Ì ÀiV } Ãi` LiV>ÕÃi i Ì iÀ > ÕÌy Ü v iV V Li iwÌÃ Ã not probable or the amount of the obligation cannot be reliably measured. Contingent liabilities are not recognised but information about them is disclosed unless the « ÃÃ L ÌÞ v > Þ ÕÌy Ü v iV V Li iwÌÃ ÃiÌÌ i i Ì Ã Ài Ìi° The credit union does not disclose information about a provision or contingent liability for a particular matter where disclosure of the information can be expected to prejudice seriously the credit union’s position in the matter.

6CPIKDNG ƂZGF #UUGVU

/> } L i wÝi` >ÃÃiÌà V «À Ãià Ìi à v « > Ì E >V iÀÞ Ü V >Ài ÃÌ>Ìi` >Ì V ÃÌ] less accumulated depreciation and any accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.

ANNUAL REPORT AND ACCOUNTS 2020

23

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Depreciation is provided to write off the cost of each item less its estimated residual value over its estimated useful life. The categories of plant & machinery are depreciated as follows:

ÝÌÕÀià E ÌÌ }à - vÌÜ>Ài

«ÕÌiÀ µÕ « i Ì

£ä¯ ,i`ÕV } L> > Vi «iÀ > Õ Óä¯ -ÌÀ> } Ì i «iÀ > Õ Óä¯ ,i`ÕV } L> > Vi «iÀ > Õ

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the Income and Expenditure account.

+ORCKTOGPV QH VCPIKDNG ƂZGF CUUGVU

At each reporting end date, the Credit Union reviews the carrying value of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Credit Union estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In >ÃÃiÃà } Û> Õi ÕÃi] Ì i iÃÌ >Ìi` vÕÌÕÀi V>à y Üà >Ài ` ÃV Õ Ìi` Ì Ì i À «ÀiÃi Ì Û> Õi Õà } > «Ài Ì>Ý ` ÃV Õ Ì À>Ìi Ì >Ì ÀiyiVÌà VÕÀÀi Ì >À iÌ >ÃÃiÃà i Ìà v Ì i Ì i Û> Õi v iÞ > ` Ì i À à à ëiV wV Ì Ì i >ÃÃiÌ v À Ü V Ì i iÃÌ >Ìià v vÕÌÕÀi V>à y Üà >Ûi Ì Lii >` ÕÃÌi`° If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the Income and Expenditure account.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Income and Expenditure account.

Bad debt provision

The estimation of loan losses is inherently uncertain and depends upon many factors, including loan loss trends, credit risk characteristics in loan classes, local and international economic climates, conditions in various sectors of the economy to which the Credit Union is exposed, and, other factors such as legal and regulatory ÀiµÕ Ài i Ìð Ài` Ì À à à `i Ì wi`] >ÃÃiÃÃi` > ` i>ÃÕÀi` Ì À Õ} Ì i ÕÃi v À>Ì }

24

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) and scoring tools with emphasis on weeks in arrears and other observable credit risk iÌÀ Vð / i À>Ì }à yÕi Vi Ì i > >}i i Ì v ` Û `Õ> > ð / i VÀi` Ì À>Ì } ÌÀ }}iÀÃ Ì i «> À i Ì >ÃÃiÃà i Ì > ` v Ài iÛ> Ì Ì i À> à } v ëiV wV «À Û Ã Ã individual loans where there is a doubt about their recoverability.

Loan loss provisioning is monitored by the Credit Union, and the Credit Union assesses and approved its provisions and provision adequacy on a monthly basis. Key assumptions underpinning the Credit Union’s estimates of collective provisions for loans with similar credit risk characteristics, and, Incurred But Not Reported provisions (“IBNR”) are based on the historical experiences of the Credit Union allied to the Credit Union’s judgement of relevant conditions in the wider technological, market, economic or legal environment in which the Credit Union operates. If a loan is impaired, the impairment loss is the difference between the carrying amount of the loan and the present value of Ì i iÝ«iVÌi` V>à y Üà ` ÃV Õ Ìi` >Ì Ì i >ÃÃi̽à À } > ivviVÌ Ûi ÌiÀiÃÌ À>Ìi Ì> } account of the pledged shares and other security as appropriate. Assumptions are back ÌiÃÌi` Ü Ì Ì i Li iwÌ v iÝ«iÀ i Vi° ƂvÌiÀ > «iÀ ` v Ì i] Ü i Ì Ã V V Õ`i` Ì >Ì there is no real prospect of recovery of loans/part of loans which have been subjected Ì > ëiV wV «À Û Ã ] Ì i Ài` Ì 1 ÜÀ Ìià vv Ì >Ì > Õ Ì v Ì i > `ii i` ÀÀiV ÛiÀ>L i >}> ÃÌ Ì i ëiV wV «À Û Ã i ` >}> ÃÌ Ì i > °

'ORNQ[GG DGPGƂVU

1VJGT 'ORNQ[GG $GPGƂVU / i V ÃÌà v à ÀÌ ÌiÀ i « Þii Li iwÌÃ] V Õ` } `>Þ «>Þ] >Ài ÀiV } Ãi` >à > liability and as an expense (unless those costs are required to be recognised as part of Ì i V ÃÌ v wÝi` >ÃÃiÌî ÛiÀ Ì i «iÀ ` Ì iÞ >Ài i>À i`°

Termination /iÀ >Ì Li iwÌà >Ài ÀiV } Ãi` i` >Ìi Þ >à > iÝ«i Ãi Ü i Ì i Ài` Ì 1 is demonstrably committed to terminate the employment of an employee or to provide ÌiÀ >Ì Li iwÌð

Reserves

Regulatory reserve The Credit Union is required to maintain and establish a minimum Regulatory reserve of >Ì i>ÃÌ £ä¯ v Ì i >ÃÃiÌà v Ì i Ài` Ì 1 >VV À`> Vi Ü Ì Ài` Ì 1 ƂVÌ £ Ç to 2018 (Regulatory Requirements) Regulations 2016.

Operational Risk reserve The Credit Union has established an Operational Risk reserve which is separate, distinct and in addition to the reserves the Credit Union is required to hold in its Regulatory reserve. The amount held in the Operational Risk reserve is the predicted impact of operational risk events that may have a material impact on the Credit Union’s business.

ANNUAL REPORT AND ACCOUNTS 2020

25

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Distributable reserve Distributable reserves are the accumulated surpluses to date that have not been declared as dividends or loan interest rebate returnable to members or set aside to the Regulatory or Operational Risk reserves.

Use of estimate and judgements

/ i «Ài«>À>Ì v w > V > ÃÌ>Ìi i Ìà ÀiµÕ ÀiÃ Ì i ÕÃi v ViÀÌ> >VV Õ Ì } iÃÌ >Ìið It also requires the Directors to exercise judgement in applying Black Raven Credit Union Limited accounting policies. The areas requiring a higher degree of judgement, À V « iÝ ÌÞ] > ` >Ài>Ã Ü iÀi >ÃÃÕ «Ì à À iÃÌ >Ìià >Ài ÃÌ Ã } wV> Ì Ì Ì i w > V > ÃÌ>Ìi i Ìà >Ài ` ÃV Ãi` Li Ü\ Bad debts/Impairment losses on loans to members >V ,>Ûi Ài` Ì 1 Ìi`½Ã >VV Õ Ì } « VÞ v À «> À i Ì v w > V > >ÃÃiÌà à set out in accounting policy in Note 1. The estimation of loan losses is inherently uncertain and depends upon many factors, including loan loss trends, credit risk characteristics in loan classes, local and international economic climates, conditions in various sectors of the economy to which the Credit Union is exposed, and, other external factors such as legal > ` Ài}Õ >Ì ÀÞ ÀiµÕ Ài i Ìð Ài` Ì À à à `i Ì wi`] >ÃÃiÃÃi` > ` i>ÃÕÀi` Ì À Õ} Ì i use of rating and scoring tools with emphasis on weeks in arrears and other observable VÀi` Ì À à iÌÀ Vð / i À>Ì }à yÕi Vi Ì i > >}i i Ì v ` Û `Õ> > ð

Ài` Ì À Ã > ` ÃÃ Ã `i Ì wi`] >ÃÃiÃÃi` > ` i>ÃÕÀi` Ì À Õ} Ì i >«« V>Ì v Ì i credit union’s accounting policy. The estimated methodology used to apply this policy incorporates provisions calculated based upon:

A. Grouped assessment - Roll rate methodology

/ i À À>Ìi iÌ ` }Þ `iÌiÀ iÃ] v À > `iw i` «iÀ `] Ì i «>ÌÌiÀ À ÌÀi ` v `iÌiÀ À>Ì ­ À ºÀ ® À «À Ûi i Ì v > à v À > } Ûi >ÀÀi>Àà «À w i Ì > «iÀ ` >Ì Ü V ÃÃ Ì i > ­£ää¯ «À Û Ã ® à `ii i` Ì >Ûi VVÕÀÀi` ­>ÀÀi>Àà v £nä `>Þà À Ài®° This observable historical deterioration pattern is used to determine roll rates and thereafter Probabilities of Default rates (“PD”) which are applied to the net loan balance of loans (i.e. gross loans net of attached savings), at a point in time, to determine the appropriate provision for bad and doubtful debts at that time.

$ +PFKXKFWCNN[ UKIPKƂECPV NQCPU

Having calculated a loan provision using the grouped assessment, additional testing is Õ `iÀÌ> i Õ« > Ã V Ã `iÀi` ` Û `Õ> Þ Ã } wV> Ì > ` > Ã `ii i` Õ ÃÕ Ì>L i v À Ì i }À Õ«i` >ÃÃiÃÃ i Ì° ` Û `Õ> Þ Ã } wV> Ì > Ã >Ài >ÃÃiÃÃi` v À L iVÌ Ûi iÛ `i Vi v «> À i Ì° 7 iÀi L iVÌ Ûi iÛ `i Vi v «> À i Ì Ã `i Ì wi`] > ÃV Õ Ìi` >Ã Flow (“DCF”) is performed to determine a revised net present value for these loans.

26

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Loan loss provisioning is monitored by the credit union, and the credit union assesses and approves its provisions and provision adequacy on a quarterly basis.

If a loan is impaired, the impairment loss is the difference between the carrying amount of Ì i > > ` Ì i «ÀiÃi Ì Û> Õi v Ì i iÝ«iVÌi` V>à y Üà ` ÃV Õ Ìi` >Ì Ì i >ÃÃi̽à À } > effective interest rate taking account of pledged shares and other security as appropriate. ƂÃÃÕ «Ì à >Ài L>V ÌiÃÌi` Ü Ì Ì i Li iwÌ v iÝ«iÀ i Vi° ƂvÌiÀ > «iÀ ` v Ì i] Ü i it is concluded that there is no real prospect of recovery of loans/part of loans which have Lii ÃÕL iVÌi` Ì > ëiV wV «À Û Ã ] Ì i Ài` Ì 1 ÜÀ Ìià vv Ì >Ì > Õ Ì v Ì i > `ii i` ÀÀiV ÛiÀ>L i >}> ÃÌ Ì i ëiV wV «À Û Ã i ` >}> ÃÌ Ì i > ° Depreciation of Tangible Assets The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly ÀiÛ iÜ Ì iÃi ÕÃivÕ Ûià > ` V > }i Ì i v iViÃÃ>ÀÞ Ì ÀiyiVÌ VÕÀÀi Ì V ` Ì Ã° determining these useful lives management consider physical condition and expected iV V ÕÌ Ã>Ì v Ì i >ÃÃiÌð > }iÃ Ì i ÕÃivÕ Ûià V> >Ûi > à } wV> Ì «>VÌ Ì i `i«ÀiV >Ì V >À}i v À Ì i w > V > Þi>À°

2. INTEREST ON MEMBERS’ LOANS 2020 €

2019 €

Loan interest received in year

667,488

659,516

TOTAL INTEREST ON MEMBERS’ LOAN

667,488

659,516

2020 €

2019 €

35,850

60,305

8,268

6,608

44,118

66,913

3. OTHER INTEREST INCOME AND SIMILAR INCOME

Investment income and gains received by 30 September Receivable within 12 months of 30 September TOTAL INVESTMENT INCOME

4. INTEREST PAYABLE AND DIVIDENDS

The dividend and any loan interest rebate are formally proposed by the directors after Ì i Þi>À i ` > ` >Ài V wÀ i` >Ì > Ƃ v Ì i i LiÀð Ƃà > ÀiÃÕ Ì Ì i «À « Ãi` dividend for the current year does not represent a liability at the Balance Sheet date and the dividend included in the Statement of Reserves in the current year relates to dividends paid to members for the prior year.

27

ANNUAL REPORT AND ACCOUNTS 2020

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) The interest expense for the Credit Union comprises of interest payable on deposits, and was as follows for the current and prior year:

Interest payable for the year Interest rate: Members’ deposits

2020 €

2019 €

419

412

ä°£x¯

ä°Óx¯

The dividends and loan interest rebate for the current and prior year periods were as follows: 2020 €

2019 €

34,591

44,225

107,299

105,276

ä°£x¯

ä°Ó¯

£n¯

£n¯

Dividend rebate proposed for the year

-

26,176

Interest rebate proposed for the year

-

118,713

Dividend rate proposed:

-

ä°£x¯

Dividend rebate paid during the year Interest rebate paid during the year Dividend rate: Interest rate:

Interest rate proposed:

£n¯

5. OTHER INCOME 2020 € Entrance Fees ECCU refund TOTAL OTHER INCOME

2019 €

74

98

-

7,949

74

8,047

28

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) 6. EMPLOYEES Number of employees The average monthly numbers of employees during the year were: 2020

2019

Number

Number

Management

2

2

Other staff

2

2

4

4

2020

2019

€

€

182,699

171,179

20,654

19,496

203,353

190,675

Employment costs Wages and salaries Employer’s PRSI

Key Management The remuneration of key management personnel was as follows: 2020

2019

€

€

-> >À ià E Li iwÌÃ

132,490

126,630

Total key management personnel compensation

132,490

126,630

- ÀÌ ÌiÀ i « Þii Li iwÌÃ V Õ`i Ü>}iÃ] Ã> >À iÃ] Ã V > ÃiVÕÀ ÌÞ V ÌÀ LÕÌ Ã > ` paid annual leave.

29

ANNUAL REPORT AND ACCOUNTS 2020

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) 7. OPERATING PROFIT 2020

2019

€

€

Depreciation of tangible assets

27,661

21,226

Auditors’ remuneration

12,460

12,460

2020

2019

€

€

999,027

840,903

Short term deposits with banks

1,158,652

1,885,531

Total cash and cash equivalents

2,157,679

2,726,434

"«iÀ>Ì } «À wÌ Ã ÃÌ>Ìi` >vÌiÀ V >À} }\

8. CASH AND CASH EQUIVALENTS

Cash and balances with clearing banks

Short term deposits with banks are deposits with original maturity of less than or equal to three months. All other deposits with banks are included under Investments in the Balance Sheet and disclosed in Note 11

9. TANGIBLE FIXED ASSETS Fixtures and Fittings €

Computer software €

Computer Equipment €

Total

16,808

147,115

196,282

360,205

-

27,613

11,913

39,526

16,808

174,728

208,195

399,731

At 1 October 2019

11,626

96,357

142,070

250,053

Charge for the year

516

15,011

12,134

27,661

12,142

111,368

154,204

277,714

At 30 September 2020

4,666

63,360

53,991

122,017

At 30 September 2019

5,182

50,758

54,212

110,152

COST At 1 October 2019 Additions At 30 September 2020

€

DEPRECIATION

At 30 September 2020 NET BOOK VALUE

30

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) 10. PREPAYMENTS AND ACCRUED INCOME 2020 Investment Income Accrued Prepayment

2019

€

€

8,268

6,608

10,282

12,129

18,550

18,737

11. DEPOSITS AND INVESTMENTS

Investments at the current and prior Balance Sheet date were all measured at amortised cost as appropriate and comprised of the following: 2020

2019

€

€

Fixed term deposit with banks

14,126,705

11,545,299

Central bank minimum deposit

387,665

45,658

14,514,370

11,590,957

TOTAL INVESTMENTS AT AMORTISED COST

12. LOANS AND ADVANCES TO MEMBERS - FINANCIAL ASSETS Loans to members

2020

2019

€

€

As at 01 October

7,879,141

7,715,427

Advanced during the year

3,507,011

3,728,100

(3,568,419)

(3,564,386)

7,817,733

7,879,141

Individual loans

(282,356)

(319,801)

Loan provision

(282,356)

(319,801)

7,535,377

7,559,340

Repaid during the year Gross loans to members Impairment allowances

As at 30th September

Black Raven Credit Union Limited. does not offer mortgages and as a result all loans to members are unsecured, except that there are restrictions on the extent to which borrowers may withdraw their savings whilst loans are outstanding. There are maximum amounts set down by the Central Bank in terms of what amount a member can borrow from the Credit Union.

The carrying amount of the loans to members represents Black Raven Credit Union Limited’s maximum exposure to credit risk. The following table provides information on the credit quality of loan repayments. Where loans are not impaired it is expected that the amounts repayable will be received in full.

31

ANNUAL REPORT AND ACCOUNTS 2020

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) 2020

2019

Amount

Proportion

Credit Quality of Loans:

Amount Proportion

€

%

€

%

Not past due and less than 9 weeks past due

7,648,373

ǰnί

7,795,747

n° {¯

Between 10 and 18 weeks past due

33,267

ä°{ί

15,844

ä°Óä¯

Between 19 and 26 weeks past due

27,987

ä°Îȯ

32,982

ä°{Ó¯

Between 27 and 39 weeks past due

38,911

ä°xä¯

20,622

ä°Óȯ

Between 40 and 52 weeks past due

69,195

ä°n ¯

13,946

ä°£n¯

7,817,733

£ää¯

7,879,141

£ää¯

Gross loans Impairment allowance Individual loans Total carrying value

(282,356)

(319,801)

7,535,377

7,559,340

Factors that are considered in determining whether loans are impaired are discussed in Note 1, dealing with the use of estimates and judgements. Loans which are neither past `Õi À «> Ài` >Ài ÀiÛ iÜi` > µÕ>ÀÌiÀ Þ L>à ð / i VÀi` Ì Õ >Ã Ì `i Ì wi` any material matters which impact upon the credit quality of these assets.

Loan provision account for impairment losses 2020 €

2019 €

As at 1st October

319,801

371,217

Increase / (decrease) in bad debt provision

(37,445)

(51,416)

CLOSING PROVISION FOR BAD DEBT

282,356

319,801

> à > Õ Ì } Ì åÎ]x£Ç] Σ ­Óä£ \ åÎ]ÈÎÎ]Óx£® ÜiÀi ÃiVÕÀi` LÞ Ã >Àið

32

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Net recoveries or losses recognised for the year 2020

2019

€

€

Bad debts recovered

(12,889)

(11,134)

Increase / (decrease) in bad debt provision

(37,445)

(51,416)

23,154

-

(73,488)

(62,550)

23,154

18,531

(50,334)

(44,019)

2020

2019

Loans written off included in bad debt provision Loans written off Net costs on loans to members recognised for the year

13. MEMBERS’ SHARES

As at 1st October Received during the year

€

€

17,450,449

16,634,501

5,977,763

4,807,349

Repaid during the year

(3,987,738)

(3,991,401)

As at 30th September

19,440,474

17,450,449

Members’ shares are repayable on demand except for shares attached to loans. The breakdown of the shares between attached and unattached is as follows:

Unattached savings Attached savings Total members’ shares

2020 €

2019 €

15,922,543

13,817,198

3,517,931

3,633,251

19,440,474

17,450,449

33

ANNUAL REPORT AND ACCOUNTS 2020

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) 14. MEMBERS’ DEPOSITS 2020

2019

€

€

As at 1st October

181,653

107,247

Received during the year

251,502

167,093

Repaid during the year

(132,248)

(92,687)

As at 30th September

300,907

181,653

Members’ deposits are repayable when terms of their agreements are met.

15. MONEY SAVER ACCOUNTS 2020

2019

€

€

As at 1st October

471,150

304,142

Received during the year

779,924

627,392

Repaid during the year

615,052

460,384

As at 30th September

636,022

471,150

Money Saver Accounts are repayable on demand.

16. OTHER LIABILITIES, CREDITORS, ACCRUALS & CHARGES

PAYE/PRSI Members Draw Scheme Other Liabilities and Charges

2020

2019

€

€

5,248

14,364

40,435

33,955

5,860

13,399

51,543

61,718

17.ADDITIONAL FINANCIAL INSTRUMENTS DISCLOSURES Financial risk management

Black Raven Credit Union Limited is a provider of personal and business loans and also provides savings products to its members. The Credit Union invests excess funds with a view to ensuring that the return from members’ loans and investments is adequate to meet the overheads of the Credit Union and provide a reasonable return to members on shares and deposits. The Credit Union has a risk register in place to help the directors manage the various risks arising from its activities to include the issuing of loans to members and investing the excess funds of the Credit Union.

34

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED)

/ i > w > V > À à à >À à } vÀ >V ,>Ûi Ài` Ì 1 Ìi`½Ã >VÌ Û Ì ià >Ài credit risk, liquidity risk and interest rate risk. The Board reviews and agrees policies for managing each of these risks, which are summarised below.

Credit risk

Credit risk is the risk that a borrower will default on their contractual obligations relating Ì Ài«>Þ i ÌÃ Ì >V ,>Ûi Ài` Ì 1 Ìi`] ÀiÃÕ Ì } w > V > ÃÃ Ì Ì i Credit Union. In order to manage this risk the Board approves the Credit Union’s credit policy, and all changes to it. All loan applications are assessed with reference to the credit policy in force at the time. Subsequently loans are regularly reviewed for any factors that may indicate that the likelihood of repayment has changed. The credit risk on members’ loans is disclosed in Note 12.

The Credit Union’s investments are also exposed to credit risk and the Credit Union Ì }>ÌiÃ Ì i À à LÞ Þ « >V } ÛiÃÌ i ÌÃ Ü Ì w > V > ÃÌ ÌÕÌ Ã Ü iÀi Ì i counterparties have strong credit ratings and using investment products authorised by the Central Bank.

Liquidity risk

/ i Ài` Ì 1 ½Ã « VÞ Ã Ì > Ì> ÃÕvwV i Ì vÕ `à µÕ ` v À >Ì > Ì iÃ Ì i ÃÕÀi that it can meet its liabilities as they fall due. The Credit Union adheres on an ongoing basis to the minimum liquidity ratio and minimum short term liquidity ratio as set out in the Credit Union Act 1997 to 2018 (Regulatory Requirements) Regulations 2016.

Market risk

Market risk is generally comprised of interest rate risk, currency risk and other price risk. Black Raven Credit Union conducts all its transactions in Euro and does not deal in derivatives or commodity markets. Therefore, the credit union is not exposed to any v À v VÕÀÀi VÞ À à À Ì iÀ «À Vi À à ° ÌiÀiÃÌ À>Ìi À Ã Ã Ì i À Ã Ì >Ì vÕÌÕÀi V>à y Üà v > w > V > ÃÌÀÕ i Ì yÕVÌÕ>Ìi LiV>ÕÃi v > V > }i >À iÌ ÌiÀiÃÌ À>Ìið / i credit union manages interest rate risk via its business model of maintaining the vast majority of its liabilities as non-interest bearing (i.e. member shares).

The credit union receives variable interest income from its loans to members, a V L >Ì v Û>À >L i > ` wÝi` ÌiÀiÃÌ V i vÀ Ìà `i« à Ìà > ` ÛiÃÌ i Ìð Dividends are also payable to members but these do not constitute interest payments.

The credit union is not exposed to any material interest rate risks relating to the à >ÌV v ÌiÀiÃÌ À>Ìià Ìà w > V > >ÃÃiÌà > ` >L Ì ið / i VÀi` Ì Õ ½Ã > interest rate risk relates to its exposure to low yielding money market and bond products which are currently available in the current low interest rate environment.

Interest rate risk

Black Raven Credit Union Limited’s main interest rate risk arises from differences between the interest rate exposures on the receivables and payables that form an integral part of a Credit Union’s operations. The Credit Union considers rates of interest receivable on investments and members’ loans when deciding on the dividend rate payable on shares and on any loan interest rebate.

35

ANNUAL REPORT AND ACCOUNTS 2020

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Interest rate risk disclosures

/ i v Ü } Ì>L i à ÜÃ Ì i >ÛiÀ>}i ÌiÀiÃÌ À>Ìià >«« V>L i Ì Ài iÛ> Ì w > V > >ÃÃiÌà > ` w > V > >L Ì iÃ\ Financial assets

Rate of Interest 2020

2019

Standard Loan

n° ¯

n° ¯

Home Renovations Loan

n° ¯

n° ¯

x° ¯

x° ¯

Special Car Loan Special Education Loan

x° ¯

x° ¯

iÀ}Þ vwV i Ì >

x° ¯

x° ¯

7,817,733

7,879,141

Gross loans to members Financial liabilities Members’ shares

19,440,474

17,450,449

Members’ deposit

300,907

181,653

Money Saver Accounts

636,022

471,150

ä°£x¯

ä°Óx¯

Rate

The dividend on shares and interest on deposits is determined on the basis of income less administrative expenses and, as can be seen above, a consistent margin is maintained between interest receivable and dividend on shares and interest payable on deposits. As a result, the surplus for the year is not particularly sensitive to interest rate risk and no sensitivity analysis is presented

Liquidity risk disclosures

Ƃ v Ì i w > V > >L Ì ià v >V ,>Ûi Ài` Ì 1 Ìi` >Ài Ài«>Þ>L i demand except for some members’ shares attached to loans and members’ deposits Ü V >Ûi > wÝi` >ÌÕÀ ÌÞ `>Ìi°

(CKT XCNWG QH ƂPCPEKCN KPUVTWOGPVU

>V ,>Ûi Ài` Ì 1 Ìi` ` iÃ Ì ` > Þ w > V > ÃÌÀÕ i Ìà >Ì v> À Û> Õi°

Capital

/ i VÀi` Ì Õ > Ì> à ÃÕvwV i Ì ÀiÃiÀÛiÃ Ì LÕvviÀ Ì i VÀi` Ì Õ >}> ÃÌ unforeseen losses. The credit union’s regulatory reserves meet the minimum requirement ÃiÌ ` Ü LÞ Ì i i ÌÀ> > ] > ` >Ài £ä¯ v Ì i Ì Ì> >ÃÃiÌà >Ì Ì i L> > Vi à iiÌ `>Ìi° / i VÀi` Ì Õ ½Ã Ì Ì> V>« Ì> ÀiÃiÀÛià >Ì Îä -i«Ìi LiÀ ÓäÓä ÜiÀi åΰn ­£È¯ v Ì Ì> >ÃÃiÌî ­Óä£ \ åΰn{ > ` £Ç°{x¯ v Ì Ì> >ÃÃiÌî°

36

BLACK RAVEN CREDIT UNION

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) 18.POST BALANCE SHEET EVENTS

With the exception of COVID-19 as set out in the Directors Report, there are no material events after the balance sheet date to disclose.

19.INSURANCE AGAINST FRAUD

/ i Ài` Ì 1 >à ÃÕÀ> Vi >}> ÃÌ vÀ>Õ` Ì i > Õ Ì v å£]Îää]äää V « > Vi with Section 47 of the Credit Union Act 1997 to 2018.

20.RELATED PARTY TRANSACTIONS

ÀiVÌ ÀÃ] >À` "ÛiÀà } Ì ÌÌii i LiÀà > ` ÃÌ>vv ­ °i° vwViÀî v Ì i Ài` Ì 1 `ÕÀ } Ì i w > V > Þi>À i `i` ÎäÌ -i«Ìi LiÀ ÓäÓä «iÀ>Ìi` à >Ài > ` > accounts with the Credit Union. All loans advanced to Directors, Board Oversight Committee members and staff are approved in accordance with Section 36(4) Credit Union Acts 1997 to 2018. The following transactions and balances existed with members Ü ÜiÀi vwViÀà `ÕÀ } Ì i w > V > Þi>À i `i` ÎäÌ -i«Ìi LiÀ ÓäÓä°

/ Ì> > à ÕÌÃÌ> ` } Ì ,i >Ìi` *>ÀÌ ià Ài«ÀiÃi Ìà ä°ä£{¯ v Ì i Ì Ì> > à outstanding.

> à > Õ Ì } Ì åÓÈ£]xää Ì Ì> ] ÜiÀi }À> Ìi` Ì Ài >Ìi` «>ÀÌ ià v Ì i Ài` Ì Union during the period on an arms length basis. At 30 September 2020 the balance ÕÌÃÌ> ` } > Ã Ì Ài >Ìi` «>ÀÌ ià > Õ Ìi` Ì åÓ{È]Ó{È° At 30 September 2020 the following related party balances (under FRS 102) were noted:

2020 €

2019 €

Loans

246,246

93,558

Shares

151,057

102,143

397,303

195,701

There was no provision against the loans due from the related parties at the current Balance Sheet date.

ANNUAL REPORT AND ACCOUNTS 2020

37

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020 (CONTINUED) Disclosure required by Section 47(1)(b) of the Credit Union Act 1997 to 2018 (Regulatory Requirements) Regulations 2016 Total loans outstanding to directors and the management team of the credit union (to include their family members or any business in which the directors or management Ìi> >` > à } wV> Ì Ã >Ài ` }® >Ì Îä -i«Ìi LiÀ ÓäÓä ÜiÀi åÎxÇ]{{£ ­Óä£ \ åÓää]{Èä®° / iÃi > à > Õ Ìi` Ì {°Ç{¯ v Ì Ì> }À Ãà > à ÕÌÃÌ> ` } >Ì Îä -i«Ìi LiÀ ÓäÓä ­Óä£ \ Ó°x{¯®°

21.CAPITAL COMMITMENTS

There were no capital commitments either contracted for or approved by the Board at the year end.

22.CONTINGENT LIABILITIES

Black Raven Credit Union had no contingent liabilities at the current or prior Balance Sheet date.

23.CONTINGENT ASSETS

Black Raven Credit Union had no contingent assets at the current or prior Balance Sheet date.

24.APPROVAL OF FINANCIAL STATEMENTS

/ i w > V > ÃÌ>Ìi i ÌÃ ÜiÀi >««À Ûi` LÞ Ì i ÀiVÌ ÀÃ änÉäÓÉÓäÓ£°

38

BLACK RAVEN CREDIT UNION

SCHEDULE NO. 1: OTHER MANAGEMENT EXPENSES FOR THE YEAR ENDED 30 SEPTEMBER 2020 OTHER MANAGEMENT EXPENSES

2020 €

2019 €

Repairs and Renewals

3,415

6,796

Directors’ expenses

6,509

5,845

Stationery & postage

4,943

5,097

Telephone

4,387

3,567

Donations

600

2,250

2,389

745

19,940

16,035

-

395

14,771

23,507

300

278

AGM expenses

2,613

3,865

Travelling expenses

4,712

9,835

Savings protection

1,467

1,837

League dues

3,810

5,458

12,460

12,460

Sundry expenses Promotions & advertising Conferences Training & seminars

>«ÌiÀ >vw >Ì viiÃ

Audit & accountancy (exclusive of VAT) General insurance

10,328

9,791

Share & loan insurance

79,352

76,250

Legal & professional fees

5,277

4,879

Computer maintenance

61,003

53,067

Bank interest & charges

11,580

8,991

8,758

3,689

Central Bank

23,205

14,059

Internal audit fee

10,763

8,610

Risk & compliance

17,712

16,384

310,294

293,690

Credit control

TOTAL PER INCOME AND EXPENDITURE ACCOUNT

39

ANNUAL REPORT AND ACCOUNTS 2020

REPORT OF THE CREDIT COMMITTEE / i ÛiÀ> L> > Vi ÕÀ > L >Ì Ì i ÎäÌ -i«Ìi LiÀ Óä Ü>à åÇ]n£Ç]ÇÎÎ V «>Ài` Ü Ì åÇ]nÇ ]£{£ >à >Ì ÎäÌ -i«Ìi LiÀ Óä£ ] > `iVÀi>Ãi v °Çn¯° During the period from the 1st October 2019 to the 30th September 2020, the Credit

ÌÌii >`Û> Vi` > Ã Ü Ì > Ì Ì> Û> Õi v åÎ]xäÇ]䣣° / à Ü>à > `iVÀi>Ãi v x° ί Ì i «ÀiÛ Õà Þi>À½Ã Ì Ì> v åÎ]ÇÓn]£ä£° / i Õ LiÀ v > Ã Ì i w > V > Þi>À Ü>à Çnx V «>Ài` Ü Ì nÈ Ì i «ÀiÛ Õà w > V > Þi>À] Ì Ã Ü>à > `iVÀi>Ãi v Óä¯ Ì i Õ LiÀ of applications issued.

PURPOSE

2020

€

2019

€

Car purchase & Repairs

90

å{£{] Ó£Ó°ää

125

å{£È]Ó{ °ää

Education

34

å ]£Óä°ää

62

å£xÈ]n{{°ää

238

å£]£äx]{£Ó°ää

273

å£]ÓÎä]äÇä

Legal/Medical

31

ånÓ]£nä°ää

39

å ä]Ènä°ää

Holidays

77

å£xÇ]nÎä°ää

184

åÎn{]ÇÇÈ°ää

120

å{££] £{°ää

137

å{Ç£]£ÈÇ°ää

Wedding Expenses

8

å{ ]x£ä°ää

17

åÇx]äää°ää

Christmas Expenses

108

å£ÈÇ] ΰää

84

å£Ó{]n£x°ää

Loans within shares

0

åä°ää

0

åä°ää

Special Car Loan Rate

63

åÇäÓ]Ó ä°ää

53

åxÓn]xää°ää

Special Education Rate

0

åä°ää

3

å£Î]äää°ää

Home renovation rate

10

åÓ È]äää

9

åÓÎÇ]äää°ää

Consolidation loan

1

å£x]Óää°ää

0

åä°ää

New member loan

2

å£]nxä°ää

0

åä°ää

Emergency loan

3

åÎ]xää°ää

0

åä°ää

TOTAL ISSUED

785

åÎ]xäÇ]䣣

986

åÎ]ÇÓn]£ä£°ää

Home Improvements/furnishing

Miscellaneous

Lisa Ryan

Aine O’Brien

Caroline Keane

40

BLACK RAVEN CREDIT UNION

REPORT OF THE MEMBERSHIP COMMITTEE We are pleased to report that the membership of Black Raven Credit Union continues Ì }À Ü >Ì > ÃÌi>`Þ «>Vi > ` Üi v ÀÜ>À` Ì V Ì Õi` }À ÜÌ Ì i w > V > Þi>À 2021. Application forms to join can be completed online or downloaded from the website www.blackravencu.ie. Membership is open to Employees and retired Employees of Dun Laoghaire Rathdown County Council, Fingal County Council and South Dublin County Council.

Your credit union is an excellent place to save and borrow from, especially in these turbulent iV V Ì ið 9 ÕÀ VÀi` Ì Õ «ÕÌÃ Ì i ii`à v Ìà i LiÀà wÀÃÌ° i LiÀý Ã>Û }à are covered by the Deposit Guarantee Scheme and the credit union is regulated by the Central Bank of Ireland.

The Membership Committee would like to remind prospective members of the importance of bringing their documentation with them when opening an account. In order to open an account, a Passport or Driving Licence and a current utility bill or bank statement are required.

Natalie Dineen

Lorna Robinson

Life Loan Experiencing an Emergency situation?

Borrow up to €2000 today *Terms and conditions apply. Black Raven Credit Union is regulated by the Central Bank of Ireland.

ANNUAL REPORT AND ACCOUNTS 2020

41

REPORT OF THE CREDIT CONTROL COMMITTEE The Credit Control Committee has reviewed monthly credit control reports and in a number of cases has telephoned or sanctioned warning letters to members. It has also recommended to the Board of Directors that legal action be commenced in some cases. / i Ài` Ì ÌÀ ÌÌii Ü Ã iÃ Ì Ài ` i LiÀÃ Ü iÝ«iÀ i Vi w > V > ` vwVÕ ÌÞ À Ü Ãi «>Þ i Ìà >Ài ÃÕëi `i` v À Ü >ÌiÛiÀ Ài>Ã Ì V Ì>VÌ Ì i vwVi >à à >Ã Ì iÞ realise there is a potential problem.

In recent times all Credit Unions have been restricted in the loan amount they can advance to members whose loan repayments fall behind their agreed repayment schedule. We accept that this is sometimes unavoidable. / i V ÌÌii Ü Ã iÃ Ì Ài ` i LiÀÃ Ì >Ì V Ì>VÌ } Ì i vwVi >à i>À Þ >à « Ãà L i Ü minimise the effect of these restrictions on future borrowings.

We also wish to remind members of the co-operative nature of the credit union, where members save together to create a common pool of funds from which members can borrow.

Ann Gibson

40th Anniversary Loan borrow up to €2000 Special Rate 4.99% APR Black Raven Credit Union is regulated by the Central Bank of Ireland *Terms & Conditions apply. Enquire today. Email loans@blackravencu.ie or phone 01 4610682

42

BLACK RAVEN CREDIT UNION

REPORT OF THE RISK AND AUDIT COMMITTEE The role of the Risk and Audit committee is to assist the board in carrying out its statutory and regulatory obligations through its Risk Management, Compliance and Internal Audit Functions.

RISK AND COMPLIANCE:

Russell Brennan Keane (RBK) continue to be appointed to provide outsourced Risk and Compliance services in accordance with best practice and regulatory requirements to ensure safeguarding the assets of BRCU. , Ài« ÀÌ ` ÀiVÌ Þ i>V Ì Ì Ì i , à E ƂÕ` Ì ÌÌii v , 1° 7i >Ài Ã>Ì Ãwi` Ü Ì Ì i >Ãà ÃÌ> Vi «À Û `i` LÞ , Ì Ì i ƂÕ` Ì > ` , à ÌÌii vÕ w } Ì i À duties with respect to the Risk & Compliance functions on a monthly and quarterly basis respectively. In turn the Risk and Audit Committee reports to the monthly board meeting > ` V ÌÌiià > ` vwViÀÃ Ì i ÀiëiVÌ Ûi w ` }à > ` ÀiV i `>Ì Ã v , °

INTERNAL AUDIT:

Under the Credit Union Act, 1997 a Credit Union must appoint an Internal Auditor. Moore provide BRCU with an outsourced Internal Audit service. The Audit and Risk Committee à Ã>Ì Ãwi` Ì >Ì Ài >Ûi V>ÀÀ i` ÕÌ Ì i À >Õ` ÌÃ Ü Ì V « iÌi `i«i `i Vi° Ài have provided BRCU with assurance in relation to the effectiveness of the credit union’s risk management, internal controls and governance processes in particular with regard to our increased on-line services and presence.

The Committee wishes to thank the Board of Directors, the CEO, Staff and volunteers, Board Oversight Committee, Moore and RBK for their assistance and co-operation during the year.

Mary Egan

Raymond Carroll

MONEY SAVER ACCOUNT Access your savings anytime with a Money Saver Account

43

ANNUAL REPORT AND ACCOUNTS 2020

REPORT OF THE NOMINATION COMMITTEE NOMINATION PROCEDURE +PVGTGUVGF KP XQNWPVGGTKPI VQ CUUKUV $NCEM 4CXGP %TGFKV 7PKQP! 9J[ PQV ƂPF QWV OQTG! In accordance with the requirement of the Credit Union Act 1997 to 2012, there have been changes to Nomination procedures. Every candidate to be nominated for appointment either as a member of a Committee or the Board of Directors of a Credit Union shall be proposed through the Nomination Committee of the Credit Union.

On receipt of your expression of interest, the Nomination Committee will contact you to acknowledge receipt and also explain the nomination process.

All candidates go through a due diligence process as outlined in the Training & Standards Policy of Black Raven Credit Union Ltd. If you are interested in becoming involved as a Volunteer with the credit union, the Nomination Committee would be happy to provide further details.

Please contact a member of the Nomination Committee below: Nomination Committee 2020

Eamon Conlon South Dublin County Council

Mary Egan Fingal County Council

GEQPNQP"UFWDNKPEQEQ KG

OCT[ GICP"ƂPICN KG

Jason O’Sullivan Dun Laoghaire & Rathdown County Council LQUWNNKXCP"FNTEQEQ KG

NEW FINANCIAL 8.99% PLAN! 9.4% APR

DO YOU WANT TO CONSOLIDATE YOUR DEBTS? TALK TO US TODAY! Standard terms and conditions apply.

44

BLACK RAVEN CREDIT UNION

BOARD OVERSIGHT COMMITTEE REPORT The Board Oversight Committee is pleased to submit its Annual Report in accordance with sections 59 & 60 of the Credit Union Act 1997 (as amended) to you. The role of the Board Oversight Committee is to protect the safety and soundness of your Credit Union by overseeing the Board of Directors and assessing whether they are operating in accordance with all relevant legislation, best practice and good corporate governance.

The Board Oversight Committee assessed the board’s performance with regard to their responsibilities under the Act in the following areas: 1. Statutory functions of the board, Board Performance and Conduct of Meetings 2. The Board Oversight Committee appraised a range of documentation, systems and practices within the Credit Union.

3. The Board Oversight Committee reviewed the board’s performance in the area of Risk Management and Compliance and met with Russell Brennan Keane in 2020. The Committee met with Moore in 2020 regarding the Internal Audit Plan. The Board Oversight Committee was represented at each monthly meeting of the Board of Directors.

4. The Board Oversight Committee met with the Board of Directors on 4 occasions this year and provided feedback to the board on our assessment of business practices in Black Raven Credit Union. It is the view of the Board Oversight Committee that the Board of Directors were compliant in their legal and regulatory requirements.

As always we are determined to ensure that the highest principles of governance, transparency and accountability are adhered to. The Committee wish to thank the Board of Directors and the CEO for their continued assistance and cooperation during the year.

Michael Galvin Chairperson

Sharon Stevenson Secretary

Rachel Fleming BOC Member

Home Renovation Loan Borrow up to €70,000 over 10 years

8.99% 9.4% APR

*Terms and conditions apply. Black Raven Credit Union is regulated by the Central Bank of Ireland.

45

ANNUAL REPORT AND ACCOUNTS 2020

RULE AMENDMENTS Motion 1

That this Annual General Meeting amends the Standard Rules for Credit Unions (Republic of Ireland) by the insertion of a new Rule 1A as follows: Any reference in these rules to a member present and voting at a general meeting shall be construed as including a reference to a member in attendance and voting at a general meeting conducted wholly or partly by the use of electronic communications technology.

Motion 2

That this Annual General Meeting amends Rule 96 of the Standard Rules for Credit Unions (Republic of Ireland) in paragraph (1), by the substitution of “at a time, at a place in the State (where applicable) and in the manner (where applicable)” for “in the State at such date, time and place”,

And

by the insertion of a new 96A as follows: 96A (1) The credit union need not hold a general meeting at a physical venue but may conduct the meeting wholly or partly by the use of electronic communications technology as long as all attendees have a reasonable opportunity to participate in the meeting in accordance with this Rule.

(2) (a) The credit union may provide for participation in a general meeting by providing or facilitating, for that purpose, the use of electronic communications technology, including a mechanism for casting votes by a member, whether before or during the meeting. (b) The mechanism referred to in paragraph (a) shall not require the member to be physically present at the general meeting.

(3) The use of electronic communications technology pursuant to paragraph (2) may be made subject only to such requirements or restrictions put in place by the VÀi` Ì Õ >Ã >Ài iViÃÃ>ÀÞ Ì i ÃÕÀi Ì i `i Ì wV>Ì of attendees and the security of the electronic communications technology, to the extent that such requirements or restrictions are proportionate to the achievement of those objectives.

(4) The credit union shall inform attendees, before the general meeting concerned, of any requirements or restrictions which it has put in place pursuant to paragraph (3).

(5) The credit union that provides for the use of electronic communications technology for participation in a general meeting by an attendee shall endeavour to ensure, as far as practicable, that— (a) such technology: (i) provides for the security of any electronic communications by the attendee, (ii) minimises the risk of data corruption and unauthorised access, and (iii) provides certainty as to the source of the electronic communications. (b) in the case of any failure or disruption of such technology, that failure or disruption is remedied as soon as practicable, and (c) such technology enables the attendee to: (i) hear what is said by the chair of the meeting and any person introduced by the chair, and (ii) speak and submit questions and comments during the meeting to the chair to the extent that the attendee is entitled to do so under the rules of the credit union.

(6) Any temporary failure or disruption of electronic communications technology shall not invalidate the general meeting or any proceedings relating to the meeting.

(7) Unless such failure or disruption is attributable to any wilful act of the credit union, the credit union shall not

be liable in respect of any failure or disruption relating to the equipment used by an attendee to access a general meeting by electronic communications technology that occurs and which failure or disruption prevents or interferes with the attendee’s participation, by the use of such technology, in the meeting.

(8) Where, in the opinion of the board of directors, it is deemed necessary, due to exceptional and unexpected circumstances, the board of directors may, by resolution, cancel a general meeting at any time prior to the holding of the meeting.

Motion 3

That this Annual General Meeting amends Rule 98 of the Standard Rules for Credit Unions (Republic of Ireland) (a) In paragraph (2): (i) by the substitution of the following paragraph for paragraph (a): “(a) shall state the date, time, place (where applicable) and manner of holding (where applicable) of the general meeting;”, (ii) in paragraph (c), by the substitution of “;” for “; and”, (iii) in paragraph (e), by the insertion of “and”, (iv) by the insertion of the following paragraph after paragraph (e): “(f) shall, in the case of a general meeting proposed to be held wholly or partly by the use of electronic communications technology, state (i) the electronic platform to be used for the meeting, (ii) details for access to the electronic platform, (iii) where required by a credit union, the time and > iÀ LÞ Ü V > >ÌÌi `ii ÕÃÌ V wÀ Ã À her intention to attend the meeting, (iv) any requirements or restrictions which the credit union has put in place in order to identify attendees who intend to attend the meeting, (v) the procedure for attendees to communicate questions and comments during the meeting, and (vi) the procedure to be adopted for voting on resolutions proposed to be passed at the meeting.” (b) In paragraph (4), by the insertion of “and containing such information” after “in such form”.

And

by the insertion of a new Rule 98A as follows: 98 A (1) Notwithstanding Rule 98 but subject to paragraph (2), notice for the purposes of Rule 96A(8) shall be given in the same manner as the notice for the general meeting referred to in Rule 98 but where, in the opinion of the board of directors, giving such notice in that manner is not reasonably practicable, notice shall be given (a) where the credit union has a website, on that website, (b) by email to every member for whom the credit union has an email address, and (c) in at least one national newspaper published in the State and circulating in the area in which the registered vwVi v Ì i VÀi` Ì Õ Ã Ã ÌÕ>Ìi`] > V> «>«iÀ and on local radio.

(2) Paragraph (1) shall not apply where all members agree in writing to the cancellation, change of venue or change of means of holding the general meeting concerned, or to dispensing with notice for the general meeting.”.

Motion 4 That this Annual General Meeting amends Rule 99(3)(a) of the Standard Rules for Credit Unions (Republic of Ireland) by the substitution of “paragraphs (a), (b), (d) (e) of paragraph (2)” for “paragraphs (a), (b), (d), (e), (f) of paragraph (2)”.

Check account balances and transactions

Full Online Statements

Apply for Loans Online

Withdraw Money

Check loan approvals

Calculate loan repayments

Loan Drawdown

Secure messaging to the Credit Union GET APP

DOWNLOAD OUR NEW AND IMPROVED APP WITH MORE FUNCTIONALITY THAN EVER BEFORE

STEP 1

Search CuMobile

STEP 2

Download App

STEP 3

Select Black Raven

L A I C SPE

Car Loan Rate

5.90% 6.1% APR

Standard terms and conditions apply.

Follow us on Social Media

County Hall, Belgard Square North, Tallaght, Dublin 24 01 461 0682 enquiries@blackravencu.ie Web: www.blackravencu.ie

County Hall: Swords, Co. Dublin County Hall: Dun Laoghaire, Co. Dublin

Û V "vwViÃ\ À Ûi , >`] ÕL £x Operations Centre: Ballyogan, Dublin 24.