HSSCU Annual Report 2015

Annual Report 2015

Annual General Meeting Goldsmith Hall, Radisson Blu, Golden Lane, Dublin 8, on Monday 7th December 2015 commencing at 6.30pm.

SAFE

SOUND

SECURE

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

Contents Notice of Annual General Meeting

1

Christmas Opening Hours

2

Notice of Elections

3

Agenda

4

Standing Orders Rule Changes Report of the Board of Directors

5-6 7 8 -9

Directors’ Report

11 - 12

Independent Auditor’s Report Income and Expenditure Account Statement of Total Recognised Gains and Losses Balance Sheet Significant Accounting Policies Cashflow Statement Notes to the Financial Statements Schedules to the Income and Expenditure Account

13 - 14 15 16 17 18 - 19 20 21 - 27 28 - 29

Report of the Board Oversight Committee

30

Report of the Credit Committee

31 - 33

Report of the Credit Control Committee

34 - 35

Report of the Membership, Education and Development Committee

36 - 38

Committees 2015

39

Attendance

40

Deceased Members

41

1

Notice of Annual General Meeting Notice is hereby given that the 45th Annual General Meeting of Health Services Staffs Credit Union will be held in Goldsmiths Hall, Radisson Blu Hotel, Golden Lane, Dublin 8 on Monday the 7th December 2015, commencing at 6:30pm. Please note the change of venue.

Parking:

There is parking available in the hotel, however, there is a charge for this.

Dublin Bus:

14, 15, 83 from O’Connell St. or Dame St. 145 from Heuston Station to Dame Street.

Refreshments:

Will be served from 5.30pm.

RTANT M PO

RTANT M PO

SAGE • IM ESnote Please

that o ur AG will no M w be h eld on Mond ay the 7th of Decem ber 20 15 in th Radis e son B lu Hote Golde l on n Lane , Dubli n8 at 6.30 pm.

WIN cash prizes on the night!!!!

SAGE • IM ES

Jane Joyce Secretary

Journey from O’Connell Street to Radisson Blu Hotel (Golden Lane)

Car Park

Red Luas Line

Red Luas Line

Dart Line

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

2

Health Services Staffs Credit Union wish all of our members peace and happiness for Christmas & the New Year.

Christmas Opening Hours Thursday 24th December Friday, 25th December Saturday, 26th December Monday, 28th December Tuesday, 29th December Wednesday, 30th December Thursday, 31st December Friday, 1st January

09.00-12.30 Closed Closed Closed Closed 09.00-17.00 09.00-12.30 Closed

Normal opening hours resume on Monday, 4th January.

3

Notice of Elections Elections will be held to fill 3 vacancies on the Board of Directors, 1 vacancy on the Board Oversight Committee and the position of Auditor.

During the course of the year the Nominations Committee identified candidates to stand for the above positions and they have been assessed under the fitness & probity regime, as required by the Central Bank, with satisfactory results.

There are 6 candidates standing for the 3 vacancies on the Board of Directors, they are as follows: • Christine Barretto, Cheeverstown House.

• Tom Carroll, Retired, Health Service Executive.

• Patricia Carter, Retired, St. Lukes • Pascal Keeve, Letterkenny Hospital.

• Marie McBryan, St Michael’s Hospital.

• Sarah O’Leary, Retired, Health Service Executive.

There is 1 candidate standing for the 1 vacancy on the Board Oversight Committee: • Anthony Hoey, Central Remedial Clinic.

There is 1 candidate proposed by the Board of Directors standing for the vacancy of Auditor: • Grant Thornton, Chartered Accountants If you are interested in standing for the Board of Directors and wish to be considered for our Volunteer Programme in 2016 please contact the Nominations Committee at info@hsscu.ie.

Brendan Fagan Nomination Committee

Geraldine Higgins Nomination Committee

Jane Joyce Nomination Committee

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

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Agenda (a)

The acceptance by the Board of Directors of the authorised representatives of members that are not natural persons;

(b)

Ascertainment that a quorum is present;

(c)

Adoption of Standing Orders;

(d)

Reading and approval (or correction) of the minutes of the last annual general meeting and any intervening special general meeting;

(e)

Report of the Board of Directors;

(f)

Finance Report;

(g)

Report of the Auditor;

(h)

Report of the Board Oversight Committee;

(i)

Declaration of dividend;

(j)

Report of the Credit Committee;

(k)

Report of the Credit Control Committee;

(l)

Report of the Membership Committee;

(m)

Report of the Education, Planning and Development Committee;

(n)

Report of the Nominating Committee;

(o)

Appointment of Tellers;

(p)

Election of Auditor;

(q)

Election to fill vacancies on the Board Oversight Committee;

(r)

Election to fill vacancies on the Board of Directors;

(s)

Any other business;

(t)

Announcement of election results;

(u)

Adjournment or close of meeting.

5

Standing Orders Reference: Recommendation 41 (b) of the Planning Committee; 1. VOTING. Each member shall be entitled to one vote irrespective of his/her shareholding, in accordance with Standard Rule 140.

2 - 4 ELECTION PROCEDURE 2. Nominations may be accepted from the floor in accordance with Standard Rule 138.

3. Elections to the Board of Directors, to the Supervisory Committee and the position of Auditor shall be by majority vote and by secret ballot.

4. A Ballot Paper for the election of the Board and Supervisory Committee, where applicable, will be distributed to each member at the AGM. 5 - 10 MOTIONS. 5. All motions from the floor of the AGM must be proposed and seconded by members present at the AGM and moved by the proposer. If the proposer is absent when the motion is called, the motion shall be deemed to have failed.

6. A proposer of a motion may speak for such period as shall be at the discretion of the Chairman of the meeting and shall have the right of reply before the motion is put to the meeting for a vote.

7. In exercising his/her right of reply, a proposer may not introduce new material.

8. The seconder of a motion shall have such time as shall be allowed by the Chairman to second the motion.

9. Members are entitled to speak on any such motion and must do so through the Chair. All speakers to any motion shall have such time as shall be at the discretion of the Chairman.

10. The Chairman shall have the absolute right to decide at any time when a motion has been sufficiently discussed and may put the motion to the meeting giving the proposer the right of reply before doing so.

11 - 16 MISCELLANEOUS. 11. The Chairman of the Board of Directors shall be the Chairman of any general meeting, except where he/she is not available, in which case it shall be the Vice-Chairman, except where he/ she is not available, in which case the Board shall decide amongst themselves who shall act as Chairman of any general meeting.

12. The Chairman may at his/her discretion, extend the privilege of the floor to any person who is not a member.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

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Standing Orders (Continued) 13. Matters not covered by the Agenda may be introduced under “Other Business” at the discretion of the Chairman.

14. The Chairman’s decision on any matter relating to these Standing Orders or interpretation of same shall be final.

15. In accordance with Standard Rule 133 (1) no member shall have more than one vote on each question at any general meeting of the credit union or any adjournment thereof irrespective of his/her shareholding or the number of accounts in his/her name in the credit union provided, however, that except in voting at elections, the presiding member shall have a second or casting vote in the event of equality of voting. Voting by proxy shall be allowed only when a member other than a natural person votes through a representative, who is a member of the group, duly authorised in writing for that purpose and accepted as such by the Board of Directors. Refer to Standard Rule 139 also re election procedure.

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

17. SUSPENSION OF STANDING ORDERS. Any one of these Orders or all of these Standing Orders may be suspended on a motion to this effect receiving a two-thirds majority of those present and entitled to vote.

18. ALTERATION OF STANDING ORDERS. Standing Orders may be amended or altered at a general meeting and only if a motion to this effect has received a two-thirds majority of those present and voting.

19. ADJOURNMENTS. Adjournments of the AGM shall take place only in accordance with Standard Rule 133.

Issued by ILCU August 2015

7

Rule Changes Change To Common Bond, Qualification of Membership The transfer of engagements of St. Gabriel’s, C.I.E. Staff (Cork) and Castle Credit Unions to Health Services Staffs Credit Union has resulted in the following changes to our common bond rule: 1. Qualification of Membership To qualify for membership the applicant must satisfy the criteria as set out in our common bond below: • Employees, retirees and trainees, of the Health Services Executive, Voluntary and Private Hospitals, Clinics and Practices providing direct healthcare.

• Employees of centres providing healthcare to the disabled.

• Persons undertaking a degree in general nursing, psychiatric nursing, paediatrics or midwifery.

• Employees of Health Services Staffs Credit Union Limited.

• Members and employees of the Law Library, employees of the Court Services and those employees of Hayes DX that work for the Court Services.

• Persons residing and employed within the following area. The area runs a line alongside the Southside of the Liffey from the junction of South Circular Road and Conyngham Road to Watling Street Bridge. Here it crosses the Liffey and runs along Watling Street, Crane Street and Bellevue until it meets Marrowbone Lane at the junction of Summer Street. Turn right along Marrowbow Lane to the junction with Cork Street and Dolphins Barn across Dolphins Barn Bridge where it turns right down Dolphin Road and Suir Road where it meets again with the South Circular Road back to Conyngham Road.

• Full-time employees of Valero Energy (Ireland) Limited and its affiliated companies serving in Ireland and such temporary or non-established employees as the Board may from time to time decide and Pensioners of Texaco (Ireland) Limited, Chevron (Ireland) Limited and its affiliated companies, Pensioners of Valero Energy (Ireland) Limited and all those who were members of Texaco Credit Union Ltd. on 13 April 1991.

• Persons of employment within CIE in Cork City and former employees of CIE who were members prior to the termination of employment in CIE Cork City.

• Employees of Unilever Ireland.

• Persons of employees resident or employed within the province of Munster, of Eircom and An Post or any wholly owned subsidiary of Eircom and An Post, employees of St Gabriel’s Credit Union Ltd, and employees resident or employed within the province of Munster.

• Employees of the following companies in the province of Munster: • Vodafone Ireland Ltd. • NTL Irish Networks Ltd. • Three Ireland Ltd. • Meteor Mobile Communications.

• Phonewatch.

• Golden Pages.

• One Direct.

• National Lottery.

• Also included are family members which reside at the same address as a current member.

“Family Members” include, husband, wife, civil partners, son, daughter, parents, brother, sister, half-brother, half-sister, grandfather, grandmother, grandson, granddaughter, father-in-law, mother-in-law, brother-in-law, sister-inlaw, son-in-law, daughter-in-law, uncle, aunt, nephew, niece and first cousin. All applicants must be resident within the State.

• All current members as of the 7th of December 2015.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

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Report of the Board of Directors It is a great pleasure for me to address you, our members, as President of our credit union in this the year of our 45th consecutive Annual General Meeting. Once again I can inform you that our credit union has had a very successful year both financially and operationally.

Finance Our auditors, Grant Thornton, will present the detailed financial accounts to you later but the main points of our financial performance are, • Income increased by 4.9% to €10.3M. • Expenditure has increased by 6.8% to €7.2M. • Surplus for the year at €3.07M has increased by a marginal 0.79%.

• Total Assets have increased by 21.7% to €212M. • Loans have increased to €112.4M (10.5%) while shares have increased by 22.7%. to €166.4M. • Total reserves have increased by 20% to 28.8M and now represent 13.60% of our assets.

These results are attributable to your continuing loyalty to HSSCU and enable your Board of Directors to propose the payment of a 1% dividend as well as a 5% loan interest rebate.

Transfers of Engagements This year has been a busy year with the completion of the transfer of engagements from St Gabriel’s, CIE Staff (Cork) and Castle Credit Unions. Health Services Staffs Credit Union is recognised as one of the leading credit unions in our movement and would be a preferred partner for smaller credit unions who might be looking for a transfer of engagements to a larger credit union. In looking at such proposals your Board of Directors try to balance what is good for HSSCU with the overall good of the credit union movement. Apart from the transfers of engagement our membership has increased in the past year by a total of 2302 members, which is over 40 per week, which is a great achievement Regulation During the past year we have continued to implement the many changes introduced in The Credit Union and Co-operation with Overseas Regulators Act (CUCORA) 2012. Following a recent consultation paper CP88 the Central Bank of Ireland are introducing a further raft of regulations for 2016. The most controversial of these is their plan to cap the savings of any member in a credit union at €100,000. Credit Unions have for the past few months lobbied TD’s and the Government in relation to CP88 without any success. It has been quite obvious that although credit unions are held in the highest regard in political circles, there is no official government policy on the role of credit unions in the financial sector. We hope to address this issue as we now head into an election year.

Governance Following the election at last year’s AGM, we welcomed Amanda Buggle and Geraldine Higgins back to our Board of Directors while Patricia Carter also joined the board as a first time director.

Sadly, we had to say goodbye to our past president Mary Cullen who emigrated this year and also to our long standing colleagues Tom Carroll, Shay Torsney and Tom Mernagh. On your behalf I wish to thank them and all our volunteers for their continued commitment and hard work.

9

New Products During the year we added two new loan products, a mortgage product and a large home improvement loan, both of which are at very competitive rates. We had also hoped to launch our debit card during the year, however due to reasons beyond our control this was not possible. I am delighted however to inform you that pilot testing on the debit cards has commenced in the last few weeks. Your credit union has also agreed to be a pilot site for the personal micro credit project announced recently by the Department of Social Protection. This project is aimed primarily at members on Social Welfare who are availing of the services of moneylenders and to allow them access to appropriate credit facilities from us instead.

Strategic Plan During the year your Board reviewed our 2012 -2015 strategic plan “Embracing Change” and are in the process of developing our 2015 -2018 plan called “Building for Growth”. As the name suggests our new plan aims to continue to build on our successes in the last three years. We aim to maintain our reputation as the preferred supplier of financial services to you our members and through strategic alliances we also aim to increase our membership and continue to offer improved and additional services to you our members. Our Credit Union was represented at the Irish League of Credit Unions’ monthly chapter meetings, the ILCU AGM, Chapter Officers’ Forum, and at the World Council of Credit Unions convention in Denver, USA. As well as reporting a successful year financially your credit union continues to pay social dividends through our Betty Noone Memorial Bursary, Death Benefit Insurance and our involvement in charitable and voluntary organisations. It makes us all very proud that our credit union works for you, our members, and through our focus on members we continue to grow and thrive.

As is tradition the names of deceased members are listed on page 41 of the report. In late September Paddy Hicks, a former director and our past vice president, passed away and on behalf of everyone in the credit union we would like to extend our sincere sympathies to the families of all colleagues and members who have departed this life in the past 12 months.

I will conclude by reminding each of you that as a member you are also an owner of this great organisation, and on behalf of the Board of Directors I wish each one of you and your families a happy and joyful Christmas and an interesting 2016

David O’ Brien President

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

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11

Health Services Staffs Credit Union Limited Directors’ Report For the year ended 30 September 2015 Principal Activity The principal activities of the credit union involves the acceptance of members’ shares/savings and lending to members in accordance with legislation and criteria determined by the Irish League of Credit Unions and the Credit Union itself.

Review of Business and Future Developments Both the level of business and the year-end financial position were satisfactory. The directors expect to develop and expand the credit union’s current activities and they are confident of its ability to operate successfully in the future.

Authorisation The credit union is authorised to conduct investment business (arrange insurance products for members) and undertake foreign exchange transactions for members. It is regulated by the Central Bank of Ireland for these activities.

Risk Assessment The purpose of our credit union is to allow members save together and lend to each other at a fair and reasonable rate of interest.

The principal risks and challenges facing this credit union are loan default; not lending a sufficient proportion of funds so that too much of the credit union’s resources are tied up in investment products; poor performance of investments; the risk that we will not have sufficient cash resources to meet day to day running costs and repay members savings when demanded (liquidity risk). These risks are managed by the credit union board so as to achieve an acceptable balance of growth and security for members’ resources.

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 accounting personnel with appropriate expertise and by providing adequate resources to the financial function. The books of account of the credit union are maintained at the credit union’s premises at 5 High St, Christchurch, Dublin 8.

Statement of Directors’ Responsibilities The Directors are responsible for preparing the financial statements in accordance with applicable law and Generally Accepted Accounting Practice in Ireland, including the accounting standards issued by the Accounting Standards Board and promulgated by the Institute of Chartered Accountants in Ireland.

In • • •

preparing those financial statements the Directors are required to: Select suitable accounting policies and then apply them consistently Make judgements and estimates that are reasonable and prudent Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Credit Union will continue in business.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

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Health Services Staffs Credit Union Limited Directors’ Report For the year ended 30 September 2015 (Continued) The Directors are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Credit Union and which enables them to ensure that the financial statements comply with the Credit Union Act, 1997 (as amended). They are also 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.

Results The surplus for the year and appropriation thereof are set out in the Income and Expenditure Account on page 15.

Dividends The directors recommend a dividend in respect of the year ended 30 September 2015 of €1,602,312 (1%) 2014: €1,645,826(1.25%).

Interest Rebate The directors recommend an interest rebate in respect of the year ended 30 September 2015 of €432,794 (5%) (2014: Nil (0%).

Auditors In accordance with Section 115 of the Credit Union Act, 1997 (as amended) the auditors Grant Thornton offer themselves for re-election.

Signed On behalf of the Credit Union

Sean Hosford CEO

Anton Mullen Member of the Board Oversight Committee

Pat O’Neill Member of the Board of Directors

Date: 21 October 2015

Date: 21 October 2015

Date: 21 October 2015

13

Independent Auditor’s Report to the Members of Health Services Staffs Credit Union Limited For the year ended 30 September 2015 We have audited the financial statements of Health Services Staffs Credit Union Limited for the year ended 30 September 2015 which comprise the Income and Expenditure Account, the Balance Sheet, the Cashflow Statement and the related notes 1 to 18. The financial reporting framework that has been applied in their preparation is Irish Law and accounting standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland).

This report is made solely to the Credit Union’s members, as a body, in accordance with Section 120 of the Credit Union Act, 1997 (as amended). 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.

Respective responsibilities of Directors and Auditors As explained more fully in the Statement of Directors’ Responsibilities set out on page 11, the Directors are responsible for the preparation of the financial statements giving a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Credit Union’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors’ report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications of our report.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

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Independent Auditor’s Report to the Members of Health Services Staffs Credit Union Limited (Continued) For the year ended 30 September 2015 Opinion on financial statements In our opinion the financial statements: •

give a true and fair view of the state of the credit union’s affairs as at 30 September 2015 and of its income and expenditure for the year then ended;

•

have been prepared in accordance with Generally Accepted Accounting Practice in Ireland; and

•

have been properly prepared so as to conform with the requirements of the Credit Unions Act, 1997 (as amended).

Other matters prescribed by the Credit Union Act, 1997 (as amended).

• We have obtained all the information and explanations which we considered were necessary for the purposes of our audit.

•

In our opinion proper accounting records have been kept by the credit union.

•

The financial statements are in agreement with the accounting records.

Grant Thornton Chartered Accountants & Registered Auditors Date: 21 October 2015

Mill House Henry Street Limerick

15

Income and Expenditure Account For the Year ended 30 September 2015 2015

2014

€

€

Interest on Members’ Loans

8,503,663

8,174,445

Members’ Deposit and Other Interest, Expense and Similar Charges

(199,309)

(246,351)

INCOME

Schedule

Other Interest Income and Similar Income

1

Net Interest Income Other Income

2

TOTAL INCOME

1,699,742

1,788,262

10,004,096

9,716,356

303,813

107,829

10,307,909

9,824,185

EXPENDITURE Salaries

2,500,545

1,963,244

4,368,802

4,540,639

Depreciation

731,433

137,365

Provision for Bad and Doubtful Debts

100,000

500,000

(459,260)

(359,413)

TOTAL EXPENDITURE

7,241,520

6,781,835

EXCESS OF INCOME OVER EXPENDITURE FOR THE YEAR

3,066,389

3,042,350

80,419

80,421

1,570,000

-

Other Management Expenses

3

Bad Debts Recovered

Add:

Undistributed Surplus at 1 October Transfer from General Reserve Transfer from Special Reserve

Less:

Dividend Paid

TOTAL Less:

Transfer to Statutory Reserve

1,645,826

1,542,884

(1,641,998)

(1,542,886)

4,720,636

3,122,769

(350,000)

(573,610)

Transfer to Additional Regulatory Reserve

(2,170,000)

-

Transfer to Special Reserves

(2,035,106)

(1,645,826)

Transfer to Undistributable Reserve Transfer to General Reserve UNDISTRIBUTED SURPLUS

(4,610)

-

-

(822,914)

160,920

80,419

On behalf of the Credit Union CEO:

Sean Hosford

Date: 21 October 2015

Member of the Board Oversight Committee:

Anton Mullen

Date: 21 October 2015

Member of the Board of Directors:

Pat O’Neill

Date: 21 October 2015

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

16

Statement of Total Recognised Gains and Losses For the Year ended 30 September 2015 2015 €

2014 €

Surplus for the financial year

3,066,389

3,042,350

Total recognised gains relating to the year

3,066,389

3,042,350

On behalf of the Credit Union CEO:

Sean Hosford

Date: 21 October 2015

Member of the Board Oversight Committee:

Anton Mullen

Date: 21 October 2015

Member of the Board of Directors:

Pat O’Neill

Date: 21 October 2015

17

Balance Sheet As at 30 September 2015 ASSETS

Notes

Cash on Hand and at Bank

2015

2014

€

€

4,266,851

4,066,297

Deposits and Investments

13

99,976,500

72,852,286

Loans to Members

16

112,397,613

101,679,230

(9,972,687)

(9,301,307)

2,025,874 2,896,747

2,012,871 2,563,315

211,590,898

173,872,692

166,373,825

135,596,938

13,544,232

12,139,551

Less: Provision for Bad and Doubtful Debts Tangible Fixed Assets

2

Debtors, Prepayments & Accrued Income TOTAL ASSETS LIABILITIES Members’ Shares

18

Members’ Deposit Accounts Members’ Deposit Interest (net of DIRT) Members’ Budget Accounts Other Liabilities, Creditors, Accruals and Charges

14

Car Draw

15

TOTAL LIABILITIES NET WORTH

16,084

17,856

1,046,717

932,253

1,494,532 340,942

744,831 484,020

182,816,332

149,915,449

28,774,566

23,957,243

16,969,735 6,309,914

13,909,815 4,018,114

23,279,649

17,927,929

5,490,307 4,610

6,029,314 -

28,774,566

23,957,243

Represented by: RESERVES Statutory Reserve

3

Additional Regulatory Reserve

3

TOTAL REGULATORY RESERVE Other Reserves Realised Reserves

3

Unrealised Reserves

3

TOTAL RESERVES On behalf of the Credit Union CEO:

Sean Hosford

Date: 21 October 2015

Member of the Board Oversight Committee:

Anton Mullen

Date: 21 October 2015

Member of the Board of Directors:

Pat O’Neill

Date: 21 October 2015

The notes and accounting policies on pages 18 to 27 form part of these Financial Statements.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

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Significant Accounting Policies For the Year ended 30 September 2015 1.1 Accounting Convention The Financial Statements have been prepared under the historical cost convention as modified for the revaluation of the premises.

1.2 Tangible Fixed Assets Depreciation is provided over the expected lives of tangible fixed assets.

Freehold Premises 12.80% per annum(2014: 3.70% SL) Furniture and Fittings 20% SL per annum(2014: 20% RB) Computer & Office Equipment 20% SL per annum(2014: 20% RB) Software 25% SL per annum(2014: 25% RB) Motor Vehicles 25% SL per annum The Board of Directors reviewed the useful economic life of the Premises and following their review determined that the above rate is appropriate. The effect of the change in rate from 3.70% to 12.80% per annum increased the depreciation charge for the year by €400,000. This will be subject to annual review by the Board of Directors.

The Board of Directors reviewed the useful economic life of the Furniture and Fittings, Computer & Office Equipment and Software and following their review determined that the above rates are appropriate. The effect of the change in rates from 20% RB to 20% SL for Furniture and Fittings and Computer & Office Equipment and 25% RB to 25% SL for Software per annum increased the depreciation charge for the year by €74,850. This will be subject to annual review by the Board of Directors.

1.3 (a) Interest on Members’ Loans Interest on Members’ Loans is recognised when payment is received as specified in Section 110(1) (c)(i) of the Credit Union Act, 1997 (as amended) (i.e. on a cash basis). (b) Investment Income Investment income is recognised when received or receivable. Investments are recognised at cost less any permanent diminution in capital value but ignoring any increase in capital value or encashment value until realised in the form of cash or cash equivalents.

The specific Investment products held by the Credit Union are accounted for as follows: Bank deposits, term deposits and other short term deposits These are valued at the deposit amount plus any accrued interest at the balance sheet date. The interest income is recognised in the Income and Expenditure Account on an accruals basis. The accrued interest at the balance sheet date is included in Debtors, Prepayments and Accrued Income.

Investments with guaranteed returns These are valued at cost plus guaranteed returns at the balance sheet date proportionally spread out over the life of the investment. These investments and any gains which are guaranteed under the terms of the investment/policy are only guaranteed if held to maturity. The relevant guaranteed amount for these investments each year, where no encashment is anticipated prior to maturity, is recorded in the Income and Expenditure Account. The cumulative guaranteed amount at the balance sheet date is included in Debtors, Prepayments and Accrued Income. Investments are only

19

capital guaranteed if held to maturity and if the Institutions fulfill their obligations. The Board of Directors is currently satisfied that these conditions will be met.

Investments with return of capital guaranteed These are valued at the lower of cost and market value at the balance sheet date but not lower than the capital guaranteed amount. Dividend or other income is recognised in the Income and Expenditure Account when it is received or receivable. Investments are only capital guaranteed if held to maturity and if the Institutions fulfill their obligations. The Board of Directors is currently satisfied that these conditions will be met.

Perpetual Bonds, Bank Bonds and Government Bonds These are valued at the lower of cost and market value at the balance sheet date. Interest income is recognised in the Income and Expenditure Account when it is received or receivable.

Decreases in the capital value of the bond are included in the Income and Expenditure Account.

Increases which reverse a previous decrease in the value of the bond are included in the Income and Expenditure Account. All other increases in excess of the cost of the bond are ignored until the bond is sold/matures. Perpetual Bonds have no fixed maturity date. Bank and Government Bonds which are capital guaranteed are valued at cost, except where the cost is greater than par, the excess over the par value is amortised over the life of the Investment. Bank Bonds and Government bonds are only capital guaranteed if held to maturity and if the Institutions fulfill their obligations. The Board of Directors is currently satisfied that these conditions will be met.

Central Treasury FRN Fund This is valued at the lower of cost and market value at the balance sheet date. Dividend or other income is recognised in the Income and Expenditure Account when it is received or receivable. The accrued interest at the balance sheet date is included in Debtors, Prepayments and Accrued Income.

1.4 Pensions The Credit Union operates a defined contribution pension scheme for employees. The annual contributions are charged to the Income and Expenditure Account in the year to which they relate, net of employees’ contributions.

1.5 Bad and Doubtful Debts Bad debts written off are included in Other Management Expenses. Bad Debts Recovered are included in the Income and Expenditure Account. A provision for doubtful debts is made against loan balances in arrears on the basis of Resolution 49 of the Irish League of Credit Unions. An additional provision is considered prudent by the Board to the amount of €5,781,951.

1.6 Transfer of Engagements Transfer of Engagements are accounted for using the acquisition method of accounting. This involves recognising identifiable assets and liabilities of the acquired Credit Unions at fair value. In applying the acquisition method of accounting for these business combinations, the member interests transferred

by Health Services Staffs Credit Union Limited represents the consideration transferred for the net assets acquired. This consideration has been estimated as equivalent to the acquisition date fair value of the member interests in the Transferor Credit Unions (the fair value of the Transferor Credit Unions) at the date of the transfer, and is reflected as an adjustment in “other reserves”.

1.7 Comparative figures The comparative figures have been reanalysed where necessary.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

20

Cashflow Statement For the Year ended 30 September 2015

Opening Cash and Investments

St Gabriel’s Credit Union Limited - Cash and Investments introduced Castle Credit Union Limited - Cash and Investments introduced CIE Credit Union Limited - Cash and Investments introduced

2015

2014

€

€

76,918,583

66,772,856

15,632,190

-

1,182,077

-

883,464

-

11,259,154

8,546,133

393,687

(1,176,019)

RECEIPTS Members’ Shares Movement Members’ Deposits Movement Members’ Loans Repaid

52,975,211

49,919,559

Member Loan Interest Received

8,503,663

8,174,445

Deposit and Investment Income

1,699,742

1,788,262

459,260

359,413

Bad Debts Recovered Other Receipts

303,813

107,829

(145,288)

234,838

75,449,242

67,954,460

58,509,860

49,666,160

199,309

246,351

Dividends Paid

1,641,998

1,542,886

Operating Expenses

5,744,897

6,501,135

201,871

184,584

(475,730)

(332,383)

Decrease /(Increase) in Debtors, Prepayments and Accrued Income TOTAL RECEIPTS

DISBURSEMENTS Members’ Loans Granted Interest Paid

Fixed Assets Purchased (Increase)/Decrease in Other Liabilities, Creditors, Accruals & Charges

TOTAL DISBURSEMENTS Closing Cash and Investments

65,822,205

57,808,733

104,243,351

76,918,583

21

Notes to the Financial Statements For the Year ended 30 September 2015 1. Transfer of Engagements On 26 January 2015 Health Services Staffs Credit Union Limited (“HSSCU”) accepted the Transfer of Engagements of St Gabriel’s Credit Union Limited (“SGCU”), Castle Credit Union Limited (“CCU”), and C.I.E. Staff (Cork) Credit Union Limited (“CIECU”). The Assets and Liabilities of SGCU, CCU and CIECU were incorporated into the Balance Sheet of HSSCU at this date.

HSSCU did not pay any consideration in respect of the Transfer of Engagements. On the date of transfer, the members of the transferor credit unions became members of HSSCU, and thereby became entitled to member interest associated with such membership. In applying the acquisition method of accounting for these business combinations, the members interests transferred by HSSCU represents the consideration transferred for the net assets acquired. This consideration has been estimated as equivalent to the acquisition date fair value of the member interests in the transferor credit unions (the fair value of the transferor credit unions) at the date of transfer, and is reflected as an adjustment in “realised reserves” in note 3 on page 23.

The book values and fair values of the net assets acquired are detailed in the table below: SGCU assets and liabilities prior to transfer € Cash and Balances at Bank Deposits and Investments

CCU assets and liabilities prior to transfer €

CIECU assets and liabilities prior to transfer €

Fair value of assets and liabilities acquired by HSSCU €

263,932

42,926

64,464

371,322

15,368,258

1,139,151

819,000

17,326,409

Loans to Members

5,885,037

185,889

237,258

6,308,184

Provision for Bad and Doubtful Debts

(493,943)

(18,653)

(58,784)

(571,380)

542,565

-

-

542,565

Tangible Fixed Assets

170,461

14,024

3,659

188,144

Members Shares

(17,580,277)

(1,040,449)

(897,007)

(19,517,733)

Member Deposit

(1,010,994)

-

-

(1,010,994)

(118,240)

-

-

(118,240)

(122,681)

(969)

(1,695)

(125,345)

2,904,118

321,919

166,895

3,392,932

Prepayments and Accrued Income

Member Budget Other Liabilities, Creditors, Accruals and Charges

No fair value adjustments arose on transfer as these were processed in the individual standalone Credit Unions prior to the date of transfer.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

22

Notes to the Financial Statements For the Year ended 30 September 2015 (Continued) 2. Tangible Fixed Assets Freehold Construction Furniture & Premises in Progress Fittings €

Computer Software Motor & Office Vehicles Equipment

Total

€

€

€

€

€

€

3,101,697

-

222,814

412,577

143,256

24,500

3,904,844

51,223

15,200

50,628

64,634

20,186

-

201,871

1,115,172

-

-

-

-

-

1,115,172

4,268,092

15,200

273,442

477,211

163,442

24,500

5,221,887

1,507,932

-

106,115

147,880

111,671

18,375

1,891,973

546,499

-

52,873

100,055

25,881

6,125

731,433

572,607

-

-

-

-

-

572,607

2,627,038

-

158,988

247,935

137,552

24,500

3,196,013

NET BOOK VALUE At 30 September 1,641,054 2015

15,200

114,454

229,276

25,890

-

2,025,874

116,699

264,697

31,585

6,125

2,012,871

COST/ VALUATION At 1 October 2014 Additions Transfer Of Engagements At 30 September 2015

DEPRECIATION At 1 October 2014 Charge for the year Transfer Of Engagements At 30 September 2015

At 30 September 2014

1,593,765

-

23

3. Reserves Balance Transfer of 1/10/2014 Engagements

Surplus

Transfer to/(from) reserves

Dividend payment

Balance 30/09/2015

€

€

€ 16,969,735

€

€

€

13,909,815

2,709,920

350,000

-

-

Additional Regulatory Reserve 4,018,114 Total Regulatory Reserve 17,927,929

121,800

600,000

1,570,000

-

6,309,914

2,831,720

950,000

1,570,000

-

23,279,649

80,419

-

76,673

3,828

-

160,920

-

437,464 108,523

-

-

-

437,464 108,523

-

15,225

-

-

-

15,225

1,645,826 4,303,069

-

2,035,106 -

(3,828) (1,570,000)

(1,641,998) -

2,035,106 2,733,069

6,029,314

561,212

2,111,779

(1,570,000)

(1,641,998)

5,490,307

-

-

4,610

-

-

4,610

-

-

4,610

-

-

4,610

Regulatory Reserve Statutory Reserve

Other Realised Reserves Undistributed Surplus Transfer of Engagement SGCU Transfer of Engagement CCU Transfer of Engagement CIECU Special Reserve – Proposed Dividend & Interest Rebate General Reserve Total Other Reserves – Realised Other Unrealised Reserves Undistributable Reserve Total Other Reserves – Unrealised

The Undistributed Surplus and General Reserve are in place for the future growth of the Credit Union, for movements on Investments, for bad debts and includes future dividend payments where deemed appropriate by the Board.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

24

Notes to the Financial Statements For the Year ended 30 September 2015 (Continued) 4. Proposed dividend and interest rebate The Directors recommend the following distribution

Gross Dividend on Shares Interest Rebate

Rate

2015 €

Rate

2014 €

1.00%

1,602,312

1.25%

1,645,826

5.00%

432,794

0.00%

-

5. Related Party Transactions During the year the Credit Union advanced €25,700 (30 September 2014: €14,000) in loans to directors. Directors’ balances at 30 September 2015 are as follows: Share balance €154,173 (30 September 2014: €173,493), Loan balance €81,911 (30 September 2014: €93,644).

During the year the Credit Union advanced €220,550 (30 September 2014: €166,800) in loans to other Officers (comprising of staff and members of the Board Oversight Committee). Other Officers’ balances at 30 September 2015 are as follows: Share balance €354,529 (30 September 2014: €177,897), Loan balance €586,734 (30 September 2014: €443,608).

6. Insurance against Fraud The Credit Union has insurance against fraud in the amount of €5,200,000 in compliance with Section 47 of the Credit Union Act, 1997 (as amended).

7. Pensions

Pension Contributions

2015 € 169,040

2014 € 169,754

8. Capital Commitments There were capital commitments in the amount of €750,000 at 30 September 2015. These are in relation to the planned renovation of the Credit Union’s premises at 34-36 Patricks Quay, Cork.

25

9. Rates of Interest Charged on Members’ Loans The rates of interest charged on Members’ Loans per annum on a reducing balance basis were as follows: Per Month %

APR %

Standard Rate Loans

0.74%

8.90%

Special Rate Car Loans

0.60%

7.20%

Education Loan

0.51%

6.17%

Green Loan

0.60%

7.20%

Secured Loan

0.43%

5.12%

10. Rates of Interest paid on Members’ Deposits Interest has been paid on Members’ deposits during the year as follows: Per Month

AER

%

%

Regular Deposit Account

0.06%

0.75%

Normal Deposit Account

0.02%

0.25%

12 month Deposit Account

0.08%

1.00%

Christmas Deposit

0.02%

0.25%

Term Deposit

0.17%

2.00%

11. Contingent Liabilities There were no contingent liabilities in existence at 30 September 2015 that would impact on the financial statements.

12. Post Balance Sheet Events The Credit Union has a significant portfolio of Investments at 30 September 2015. The value of these investments can rise and fall with market conditions. The current market conditions are volatile and it is reasonable to expect that there has been volatility in the valuations of some investments since 30 September 2015. However, it is not possible to quantify the effect of this volatility. In accordance with FRS 21 “Events After the Balance Sheet Date”, any such effect on the valuation of Investments since the balance sheet date and 21 October 2015 is a non-adjusting event and accordingly the financial statements do not reflect any adjustment in respect of same.

In the opinion of the Board of Directors, there are no other events after the balance sheet date which requires disclosure or adjustment in accordance with FRS 21.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

26

Notes to the Financial Statements For the Year ended 30 September 2015 (Continued) 13. Deposits and Investments These consist of deposits with and funds managed by the following institutions:

Prize Bonds Deposit Protection Account Allied Irish Bank Ulster Bank Bank of Ireland BNP Paribas Central Bank Minimum Reserve KBC Central Treasury FRN Fund Central Treasury Managed Fund Rabo Bank Permanent TSB EBS An Post Investec Total

2015 € 254 333,579 18,038,091 6,424,463 23,126,917 1,021,909 1,289,324 12,756,338 2,845,025 8,475,580 22,703,955 760,617 200,448 2,000,000

2014 € 254 241,213 14,898,558 1,040,000 9,816,287 320,938 1,035,388 13,510,347 372,200 10,900,811 4,966,290 15,750,000 -

99,976,500

72,852,286

Deposits and Investments are stated in line with the accounting policies as set out on pages 18 to 19. Included in Debtors, Prepayments and Accrued Income at 30 September 2015 is an amount of €866,328 (30 September 2014: €842,579) relating to accrued income and guaranteed returns on the above Deposits and Investments. The value of investments can rise and fall with market conditions.

14. Other Liabilities, Creditors, Accruals and Charges (Incl. DIRT)

DIRT Other Creditors and Accruals

2015 € 23,049 1,471,483 1,494,532

2014 € 35,564 709,267 744,831

27

15. Car Draw

Car Draw

2015 € 340,942

2014 € 484,020

The Credit Union operates a car draw for its members. The amount of €340,942 (30 September 2014: €484,020) represents the excess of cash received over cost of prizes as at the balance sheet date. No gain or loss has arisen or will arise, as all funds received will be used to purchase prizes.

16. Loans to Members The following is an analysis of Member Loans at 30 September 2015, as required by Section 35 of the Credit Union Act, 1997 (as amended):

0 to five years Five to ten years Ten years or more

2015 € 105,412,411 6,082,119 903,083 112,397,613

2014 € 94,383,366 6,459,316 836,548 101,679,230

17. Special Reserve The directors decided to adopt a policy of setting aside the amount of the proposed dividend and interest rebate for the current year in a special reserve. This is reflected as a movement in reserves as set out in note 3.

18. Member Shares The following is an analysis of Member Shares:

Special Shares Term Shares

2015 € 166,212,375 161,450 166,373,825

2014 € 135,412,011 184,927 135,596,938

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

28

Schedules to the Income and Expenditure Account For the Year ended 30 September 2015 The following Schedules do not form part of the Statutory Financial Statements which are the subject of the Independent Auditor’s Report on pages 13 to 14.

SCHEDULE 1 – OTHER INTEREST INCOME AND SIMILAR INCOME

Deposit and Investment Income Bank Interest TOTAL PER INCOME AND EXPENDITURE ACCOUNT

2015 €

2014 €

1,699,742 1,699,742

1,781,951 6,311 1,788,262

Other interest income and similar income consists of interest and net gains and is analysed as follows:

Received at the Balance Sheet date Received within 12 months of the Balance Sheet date Received after 12 months of the Balance Sheet date TOTAL

2015 €

2014 €

833,414 861,718 4,610

945,683 842,579 -

1,699,742

1,788,262

SCHEDULE 2 – OTHER INCOME

ECCU refund Commissions ReBo Rebate Rental Income Fees Sundry TOTAL PER INCOME AND EXPENDITURE ACCOUNT

2015 € 167,712 (982) 90,336 8,580 30,110 8,057 303,813

2014 € 9,399 61,717 36,713 107,829

29

SCHEDULE 3 – OTHER MANAGEMENT EXPENSES 2015

2014

Print and Stationery Office Expenses Leasing National Recruitment Drive Postage and Telephone Light and Heat Cleaning Security Travel and Subsistence Chapter Fees Share and Loan Insurance (Gross) Convention, Training & Annual Conference Repairs and Maintenance General Insurance Bad Debts Written Off Audit Fees Pensions Board Oversight Committee Computer and Software Maintenance Annual General Meeting Expenses Regulatory Levies Affiliation Fees Transfer of Engagements Costs Debit Card Expense Savings Protection Scheme Fund Contribution Rates Consultants Fees Marketing and Advertising Loss on disposal of fixed assets Staff Uniforms IT Strategy/ National Advertising Death Benefit Insurance Donations and Sponsorship Bursary Expenses

€ 111,633 143,069 27,573 2,675 154,978 51,035 26,139 61,464 53,725 1,269 695,670 86,880 42,395 41,659 1,124,450 35,860 169,040 22,340 154,722 55,367 184,423 53,141 135,157 43,545 27,803 49,807 247,617 67,058 2,675 14,955 256,342 57,237 167,099

€ 94,366 173,763 27,642 2,646 138,513 41,437 22,662 18,380 32,509 1,577 706,500 79,492 111,774 36,584 1,648,552 23,985 169,754 12,300 90,381 44,287 116,989 45,652 30,001 34,244 82,734 40,751 135,059 78,005 2,748 28,409 17,831 223,082 63,765 164,265

TOTAL PER INCOME AND EXPENDITURE ACCOUNT

4,368,802

4,540,639

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

30

Report of the Board Oversight Committee In 2015, the Board Oversight Committee consisted of John Keppel, Chairman, Antoin Mullen, Secretary and Tony Hoey.

The Committee met on twelve occasions in the year ended 30 September 2015.

The Committee was represented at each meeting of the Board of Directors held in the last year and is satisfied that those meetings were conducted in accordance with the legislation and the Rules of the Credit Union.

In 2015, the Committee held four meetings with the Board under Rule 85 where the performance by the Board of its duties was reviewed. The Committee had no occasion to bring any matters to the Board’s attention.

The Committee wishes to thank the Directors, management and staff of the Credit Union for their courtesy and co-operation in the last year.

John Keppel

Anthony Hoey

Antoin Mullen

31

Report of the Credit Committee Fellow Members, I am delighted to report to you that this year has, once again, proven to be a very busy year for both your Credit Committee and Loans Officers, seeing an almost unprecedented demand for loans. A total of 17,779 loan applications were received for a total value of €64,407,698.41. As you will see in the figures that follow, the total approved has increased by over €11 million.

In keeping with the general, positive, changes in the outlook for our economy, we have seen a significant increase in the number and amount of loan applications made by our members. This positive outlook is shown in the breakdown of loan purposes below. There you can see that the main areas that have shown significant growth are, Housing, Motoring and Health & Leisure. Thus proving our members have more confidence to get their home improvements done or to change their car.

The increase that we have seen in the number of loan applications and the ever increasing assessment requirements has meant that, whereas we strive to provide a speedy turnaround time for loan applications, some applications will require more timely consideration and/or additional paperwork to enable the loans officer to come to a decision. We, as a committee, are sure that members will understand that it is vitally important that the appropriate time and consideration is given to all loan applications while also continuing to meet the needs of you, our members and maintaining a prudent lending policy.

We would like to remind members that a proportion of our loan applications will always require additional paperwork. This is mostly an up to date payslip, however, can include more detailed supporting documentation. With this in mind, it is vital that members wishing to make a loan application should do so as early as possible to avoid delays.

New Loan Products This year, in response to demand from our members, seen your Credit Union introduce two exciting new loan products. These are: The Large Home Improvement Loan: This loan is set at 5.1% APR and is for loans between €25,000 and €100,000.

Mortgage Loan: For the first time your Credit Union is offering our members a mortgage loan. The loan is for between €40,000 and €150,000 and is being offered at a variable APR of 4.1%.

As with all loans, lending terms and conditions apply. If you are interested in either of these products, or indeed, any of our loan products, contact any of our offices for details.

Debt Counselling and Budgeting As always, we would remind our members that our staff contains a number of Qualified Financial Advisors and we would urge any member who feels they are experiencing difficulty with a debt burden or feel they would benefit from assistance with budgeting to contact the Credit Union, where we will be happy to assist you in a courteous, profession and above all, confidential manner.

Loan Decisions We strive, always, to be fair and provide help and assistance to all of our members, however, sometimes we have to refuse a loan. This occurs in very rare circumstances, as you can see from the following table, less than 3% of all applications were refused this year, this figure has actually dropped in comparison with last year’s figure.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

32

Report of the Credit Committee (Continued) The most common reasons for a loan to be refused are, a members overall indebtedness, the performance of a members overall debt or doubts regarding a members ability to repay a loan. If a members loan has been refused and they feel that there are additional factors, information or explanations, which are relevant to their application they should provide such information and make an appeal to the Board of Directors. Any appeal to the Board of Directors must be received in the office prior to the board meeting. The board meetings are typically held on the last Wednesday of every month.

Rescheduling Loans An application to reschedule loan payments requires the same assessment procedures as the reviewing of a loan applications. This means members are typically asked to provide supporting documentation for their request. Rescheduling of a loan has always had an impact on a members’ ability to borrow following their reschedule. However, as confirmed previously, the Central Bank of Ireland have imposed restrictions on accounts which have been the subject of a reschedule.

All accounts rescheduled after the 1st of October 2013, are now subject to these restrictions. We would again advise our members that these restrictions cannot be overruled by the either the Credit Committee or the Board of Directors.

We would ask members to consider these implications before applying for a reschedule and to discuss their options with the Credit Union staff before applying for a reschedule. The Credit Union staff will ensure that members are aware of the implications of an approved reschedule on their borrowing capacity.

The following served on the Credit Committee in 2014/2015: Pat O’Neill, Chairman, Sean Hosford, Secretary, Sarah O’Leary, Director, Emer Walsh, Director, Dolores O’Neill, Volunteer, Gerry Lynch, Volunteer.

Please find below comparative statistics for this year and last year:

No. of Loan Applications received No. of loans approved by Credit Committee No. of loans approved by Loans Officer Total value of loans approved in year No. of refusals during the year % refusals of total applications received Average approved loan

2014/15 17,779 149 17,157

2013/14 16,044 372 15,179

€61,018,885.36

€49,781,991.10

473 2.66%

493 3%

€3525.00

€3201.20

33

Breakdown Of Loan Purposes Housing Home Improvements, deposits, furnishing etc.

Motoring Car purchase, repair, insurance etc.

Personal Finance Household bills, debt consolidation etc.

Health & Leisure Holidays, Christmas, Weddings etc.

Miscellaneous All other purposes and secured loans

2014/15 €15,638,323.79

2013/14 €12,161,030.73

€15,232,921.08

€10,973,379.27

€3,990,289.24

€3,658,952.60

€16,397,065.29

€14,789,332.50

€9,760,285.96

€8,199,296.00

I would like to thank my fellow committee members for their hard work and attendance during the year. I would also like thank our Loans Officers and all our staff, especially Ms. Anne Marie Kelly and Ms. Collette Ryan for their work during the year

Pat O’Neill Chairman Credit Committee

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

34

Report of the Credit Control Committee 2015 The Credit Control Committee met and reported monthly to the Board of Directors in 2015 . The committee continuously monitored the Credit Control Function throughout the year using a number of different KPI’s.

The past financial year from a Credit Control perspective has been very positive. It has seen a considerable decrease in the value of accounts written off along with a sizeable increase in the amount of money recovered in respect of our Bad Debts. It is our expectation that the improvement in the economic climate and reduction in employment levies will reduce the level of financial difficulty encountered by members over the last number of years and hopefully continue the reduction of the annual write off of accounts.

The Directors do recognise however that there are still a number of our members experiencing some level of financial difficulty and all members can be assured that their situation will receive immediate attention and they will be treated with absolute confidentiality.

We very much appreciate the service being provided to our members by the staff of the Money Advice and Budgeting Service and the Board of Directors wish to stress to members in financial difficulties that it is in their best interest to contact this office at the earliest opportunity for assistance in dealing with your finances.

Written Off Accounts The annual accounts for 2015 confirm that the total loans outstanding was €112,397,613 with 14,293 active loans. The Directors recognise unfortunately that some members no longer have the capacity to continue to meet their current repayments and are no longer considered viable loans.

The total value of the accounts written off this year was €1,124,450 and this amount represents 1% of the total loans outstanding. This amount is considerably lower than last year Bad Debts Recovered On a positive note the total amount of income from bad debts received increased by almost €100,000 to €459,260 with over 400 accounts making some payment during the year.

Rescheduling of Loans While it was necessary and appropriate that a number of members reschedule their loan repayments during the year it is noted that this number and value has again reduced considerably this year primarily due to the restrictions recently introduced by the Central Bank regarding eligibility for future loans Provisioning The Financial Regulator introduced new guidelines regarding provisions for bad debts and rescheduling loan repayments in 2013 and these guidelines continue to have some restrictions with regard to providing additional credit facilities to members who have rescheduled their loan repayments.

35

The current method of providing reserves for bad debts in credit unions is based on a percentage of the net loan balance and the number of weeks in arrears. The following are the details of our accounts in arrears and the provisions required for our accounts at year end 30th September 2015.

Accounts in Arrears 10 to 18 Weeks 19 to 26 Weeks 27 to 39 Weeks 40 to 52 Weeks 53 to 99 Weeks Rescheduled Loans

% Required 10 % 20 % 40 % 60 % 100 %

No of Loans 198 107 71 38 188

Net Loan

€1,059,655 €614,135 €340,476 €284,179 €995,896

Total Resolution 49

Provision

€ 105,966 € 122,827 € 136,191 € 170,508 € 995,896 € 2,673,491

€ 4,204,878

There is a further requirement by the Central Bank to provide for loans which have been rescheduled and this amount can range from 20 % to 100 % of the outstanding loan balance depending on the number of times an account has been rescheduled. The total amount provided for in these cases is €2,673,491. This method of provisioning requires the credit union to have a total provision of €4,204,878 In October 2014 our total provision for Bad Debts was €9,301,307 which increased during the year following the transfer of engagements with St Gabriel’s , Cork C.I.E. and Castle Credit unions to €9,872,687. It is a requirement by the Central Bank that our provisions for bad debts are reviewed regularly and a full loan book review has been carried out during the year. In consultation with our Auditor the Board of Directors have deemed it appropriate to increase the current provision for bad debts during the coming year by €100,000 to a total amount of €9,972,687.

Marie Mc Bryan

Tom Carroll

Sudhakar Srinivasan

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

36

Report of the Membership, Education and Development Committee 2015 Membership of the committee: Damien O’ Brien (Chairperson), Amanda Buggle, Pat O’Neill, Patricia Carter, Pascal Keeve, Dolores O’Neill, Patricia Carter, Sarah O’Leary and Anna Byrne. Recording Secretaries: Alan Duff and Deirdre Downey, Membership Report This year has seen the merger of this committee with the membership committee.

2015/14 New Members Accepted 2,302 Accounts Closed 378 Accounts Re-opened 39

2014/13 1,907 380 62

During the year, your credit union accepted 2,302 new members. This is exclusive of the members accepted through the transfer of engagements with St. Gabriel’s Credit Union, C.I.E. Staff (Cork) Credit Union and Castle Credit Union. The total new members accepted from the transfer was 3,629.

The number of members with a shareholding of €6.35 or more at 30th September 2015 stood at 32,976.

Our member recruitment visits took us to Donegal, Sligo, Cork Kerry, Meath, Kildare, Wicklow and Dublin.

Member Communications: eZine Over 6000 of your fellow members have now signed up for our eZine. The eZine is the quickest and easiest way to receive communications from your credit union. The eZine contains updates on our latest products, services, competitions, kids’ pages and more. If you have an email address and wish to sign up you can do so at: www.hsscu.ie/e-zine-sign-up Kredit For those members who prefer to receive their statements and correspondence via post, our Kredit newsletter was issued 4 times during the year. It, once again, included relevant financial information, news on HSSCU events, competition winners, Kids corner and up to date bulletins on developments in HSSCU products and services. As Kredit and the eZine are our main ways of contacting you, our members, if there is anything you wish to see in these publications, just drop us an email to kredit@hsscu.ie.

Facebook & Twitter For those of you that are following us on Facebook and Twitter we hope you are enjoying our updates. For those of you who haven’t found us yet, you are missing out on some great competitions and the latest news from the office as it happens. All of our followers on Facebook and Twitter will be put into a draw for a chance to win a €100 One 4 All gift voucher in time for Christmas. The draw will be held on the 11th of December so get your like/follow in before then.

37

Betty Noone Bursary Once again, the Bursary, named after our late Secretary Betty Noone, has proven to be hugely popular. Over 600 valid applications were received and this year HSSCU gave back over €167,000 to members to aid them with the costs of their educational pursuits. For more information on our bursary, including opening dates, closing dates and the terms and conditions please go to www.hsscu.ie/educational-bursary.

Monthly Car Draw This year we upgraded the prizes available in the car draw. We now have 12 cars on offer to the value of €20,000 along with 10 monthly prizes of €1,000 each. We also continue to run our ever popular Christmas draw of 500 prizes of €500 and our “pay your bills for 1 year” prize of €12,000.

As this draw is completely not for profit, all funds received for the draw are used for prizes, occasionally we will accumulate more funds than required for the prizes. This year we decided to give that back with our exciting quarterly draw, 4 cars worth €35,000 were given out as well as 4 holidays worth €20,000 and cash prizes of €10,000 and €5,000. We also used the accumulated funds to give out 150 prizes of €500 in our summer prize draw.

We would like to congratulate all of our winners this year and remember if you wish to enter the draw, please contact the office. It costs just €2.54 per month.

Training As always the Board of Directors and Management of HSSCU continue to encourage all Directors, Board Oversight Committee Members, Staff and Volunteers to participate in on-going development and training.

This year saw 1 member of staff complete their Masters in Social and Co-Operative Studies in UCC, while another staff member is currently working their way through this course. We had 6 staff complete their Diploma in Credit Union Operations, 2 directors complete their Diploma in Credit Union Governance, a further 6 staff complete their Certificate in Credit Union Operations and 3 directors completed their Certificate in Credit Union Governance. We also seen 4 staff and a member of the Board Oversight Committee attain the designations CUA and CUG. All those who have previously attained qualifications, continue to partake in continuous professional development in relation to these qualifications.

Members of the Board of Directors, Board Oversight Committee and management team have attended a number of relevant workshops throughout the year. Your credit union was represented at the WOCCU World Council of Credit Unions Conference in Denver, USA, The ILCU AGM in Killarney.

This committee would like to congratulate all those who completed courses during the year and wish every success to those continuing or about to embark on Further education/training.

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

38

Report of the Membership, Education and Development Committee 2015 (Continued) Charitable Donations and Sponsorship As one of Ireland’s leading credit unions, where people helping people is still our core value, we are delighted to be in a position to continue to donate much needed funds to charity. Each year we sponsor a number of charities: local, national and international. In June we hosted a special event where we invited the main beneficiaries this year to meet with membership of this committee and to present a brief outline of the work they do and how our contributions can assist them with that work.

We also sponsor our members in a variety of activities as they fundraise via marathons, sponsored walks, etc. In 2015 we donated more than €55,000 on behalf of our members to over 80 charities.

I would like to thank my fellow committee members, the staff and management team, Anna Byrne, Deirdre Downey, Alan Duff and a special word of thanks to Orla O’Mahony who left us this year to pursue other ventures, for all of their efforts in contributing to another very successful year for your credit union.

Damien O’Brien, Chairperson, Education, Planning & Development Committee

39

Committees 2015 Executive Committee President – David O’Brien Vice President – Damien O’Brien Secretary – Jane Joyce Audit & Compliance Committee Geraldine Higgins Marie McBryan Emer Walsh Risk Committee Patricia Carter Brendan Fagan Damien O’Brien Remuneration Committee Pat O Neill Amanda Buggle Damien O Brien Credit Committee Emer Walsh Pat O’Neill Gerry Lynch Dolores O’Neill Sean Hosford Credit Control Committee Tom Carroll Marie McBryan Sudhakar Srinivasan Membership Committee (Now Merged with EPD) Patricia Carter Anna Byrne Training Liaison Officer Catherine Byrne Risk Officer David Hosford Compliance Officer Mary Peters

Complaints Officer Deirdre Downey Credit Control Officer Declan Finlay Money Laundering Reporting Officer A money laundering officer was elected.

Education Planning & Development Committee Dolores O’Neill Pat O’Neill Damien O’Brien Amanda Buggle Pascal Keeve Nominations Committee Brendan Fagan Geraldine Higgins Jane Joyce Chapter Delegate Geraldine Higgins Youth Officer Deirdre Downey Investment Committee Sean Hosford Geraldine Higgins Marie Mc Byran Jane Joyce Sarah O Leary Information Technology Committee Brendan Fagan Catherine Byrne Mary Peters David Hosford Board Oversight Committee Anton Mullen Anthony Hoey John Keppel

E

1

Gerry Lynch

Tom Carroll

Not Applicable

1

N/A

E

Shay Torsney

Mary Cullen

Excused

N/A

E

N/A

Patricia Carter

1

1

1

Emer Walsh

Marie Mc Bryan

Geraldine Higgins

1

1

1

1

1

E

N/A

N/A

1

N/A

N/A

1 N/A

Brendan Fagan

1

Pat O'Neill

1

1

Amanda Buggle

1

Jane Joyce

N/A

1

Damien O'Brien

E

Nov

Sarah O'Leary

1

Oct

David O Brien

Directors

N/A

N/A

N/A

N/A

1

1

1

1

1

1

1

1

1

1

1

Dec

N/A

N/A

N/A

N/A

1

1

1

1

1

1

1

1

1

1

1

Jan

N/A

N/A

N/A

N/A

1

1

1

1

1

1

1

1

1

1

1

Feb

Board Attendance October 2014 to September 2015

N/A

N/A

N/A

N/A

1

1

1

1

E

1

1

1

1

1

1

Mar

N/A

N/A

N/A

N/A

1

1

1

1

1

1

1

1

1

1

1

Apr

N/A

N/A

N/A

N/A

1

1

1

1

1

1

1

1

1

1

1

May

N/A

N/A

N/A

N/A

E

1

1

1

1

1

1

1

1

1

1

Jun

N/A

N/A

N/A

N/A

1

1

1

1

1

1

1

1

1

1

1

Jul

N/A

N/A

N/A

N/A

1

1

1

1

1

1

1

1

1

1

1

Aug

N/A

N/A

N/A

N/A

1

1

1

E

1

1

1

1

1

1

1

Sep

N/A

N/A

N/A

N/A

9

10

12

11

11

10

10

12

12

12

11

Total

HEALTH SERVICES STAFFS CREDIT UNION LIMITED Annual Report 2015

40

41

Deceased members of Health Services Staffs Credit Union October 2014- September 2015 Dennis Agleam Mary Ashman William Bacon Christopher Balfe Josephine Ball Liam Barrett Richard Bennett John Boland Hilda Brennan Josephine Brennan David Browne Joan Buckley Nora Buckley William Buckley Angela Byrne Gabriel Byrne Mary Byrne Rita Conalty Joseph Conroy William Corcoran William Cox Catherine Crowther Desmond Cummins Sadie Dalgarno Daniel Dawe Denis Dineen Anne Doogue Marie Doyle Fergus Egan Sarah Egan Bridget Eiffe Sean Fanning Caroline Farrelly James Feely Mary Fitzharris Joseph Fitzpatrick Patrick Fitzpatrick Dermot Gallagher

Rita Gallagher Noel Galvin Marie Gogan Karen Goonery Thomas Grace Catherine Guerin Helena Halligan Richard Hammond Michael Hever Patrick Hicks Daniel Houlihan Annie Hussey Philomena Kavanagh Ita Keaveny Sean Kelleher Gerard Kelly John Kelly Mary Kelly Olwen Kennedy John Kenny Thomas Keogh Paul Lindsay William Loveridge Kathleen Macken Kathleen Maczka Vincent Madden James Magee Michael Maher Bridget Mc Ateer Michael Mc Donnell Annie Mc Guinness Raymond Mc Cann John Mc Gee Bernard Mc Keon Kieran Mc Namara Margaret Mc Nulty Brian Mooney Bernard Mullen

David Murphy Julia Murphy Liam Murray James Nicholson Pat Nixon Breda Norton Mary O’Brien Daniel O’Connor Philomena O’Connor Winifred O’Connor Marie O’Gorman Charles O’Hara Patrick O’Malley Marie Ormonde Bernie O’Riordan Pauline O’Riordan Tomas O’Ruairc Mary O’Shaughnessy Denis O’Shea Margaret O’Toole Edwin Panelo Michael Perkins Marie Power Patrick Reilly Cornelius Rodgers Denis Sandoval Elizabeth Sheehy Mary Shevlin David Spain Yolanda Torres Denis Walker Michael Walsh Stephen Walsh William Walsh Mary White Mary Winter

The Board of Directors would like to extend their sincerest sympathy to the families of members who died during the year. May they rest in peace.

SAFE

SOUND

SECURE

Health Services Staffs Credit Union Ltd. Registered Office: 5 High Street, Dublin 8.

James’s Street Branch: Phoenix View, 144-150 James’s Street, Dublin 8.

St. Gabriel’s Branch: 34-36 St. Patrick’s Quay, Cork.

Tel: 01 677 8648 or Lo Call: 1890 677864 (from outside 01 area) Fax: 01 677 8664 E-mail: info@hsscu.ie

www.hsscu.ie Health Services Staffs Credit Union is regulated by the Central Bank of Ireland