Health Services Staffs Credit Union Limited
5 High Street, Dublin 8, also Phoenix View, 144-150 James’s Street, Dublin 8. Tel: 01 677 8648 or Lo Call: 1890 677864 (from outside 01 area) Fax: 01 677 8664 E-mail:
[email protected] Web: www.hsscu.ie
Transfer of Engagements Report Notice of Passed Board Resolution
St. Gabriel’s Credit Union Limited
C.I.E. Staff (Cork) Credit Union Limited
Castle Credit Union Limited
Contents Chairperson Address • Health Services Staffs Credit Union Limited to its members • St. Gabriel’s Credit Union Limited to its members • C.I.E. Staff (Cork) Credit Union Limited to its members • Castle Credit Union Limited to its members
2 3 4 5
Board Resolutions Proposed and Passed • Health Services Staffs Credit Union Limited • St. Gabriel’s Credit Union Limited • C.I.E. Staff (Cork) Credit Union Limited • Castle Credit Union Limited
6 7 8 9
Statement made under Section 130 of the Credit Union Act, 1997 (as amended) • Health Services Staffs Credit Union Limited regarding accepting transfer of engagements from St. Gabriel’s Credit Union Limited • Health Services Staffs Credit Union Limited regarding accepting transfer of engagements from C.I.E. Staff (Cork) Credit Union Limited • Health Services Staffs Credit Union Limited regarding accepting transfer of engagements from Castle Credit Union Limited • St. Gabriel’s Credit Union Limited regarding the transfer of engagement to Health Services Staffs Credit Union Limited • C.I.E. Staff (Cork) Credit Union Limited regarding the transfer of engagement to Health Services Staffs Credit Union Limited • Castle Credit Union Limited regarding the transfer of engagement to Health Services Staffs Credit Union Limited Financial Statements • Audited Accounts as at 30th of September 2014 of Health Services Staffs Credit Union Limited • Management Accounts as at 31st October 2014 of Health Services Staffs Credit Union Limited • Audited Accounts as at 30th of September 2014 of St. Gabriel’s Credit Union Limited • Management Accounts as at 31st October 2014 of St. Gabriel’s Credit Union Limited • Audited & most recent Management Accounts as at the 30th September 2014 of C.I.E. Staff (Cork) Credit Union Limited • Audited & most recent Management Accounts as at the 30th September 2014 of Castle Credit Union Limited
1
10 11 12 13 14 15
16 34 36 51 53 64
Health Services Staffs Credit Union Chairperson’s Address Dear Member, I am delighted to inform you that the Board of Directors of Health Services Staffs Credit Union Limited have, on the 9th of December 2014, passed a resolution to transfer to the Health Services Staffs Credit Union Limited, the engagements of: • St. Gabriel’s Credit Union Limited • C.I.E. Staff (Cork) Credit Union Limited • Castle Credit Union Limited These transfers arise from the belief of the Board of Directors of all credit unions concerned that their members can be better served together and we consider it an ideal opportunity to grow and develop our services to members nationally. On completion of the transfer of engagements, the common bond and services of the Health Services Staffs Credit Union Limited will be extended to include all current, former and future members of St. Gabriel’s Credit Union Limited, C.I.E. Staff (Cork) Credit Union Limited and Castle Credit Union Limited. The changing landscape of the Credit Union environment has led to openings for your credit union to seek out strategic opportunities. All the transferring credit unions are what are known as “industrial” credit unions. The financial details are outlined in this booklet, a brief outline of them is as follows. • St Gabriel’s Credit Union Limited is based in Cork, it is a medium sized credit union approximately €22 million in assets, with a long standing common bond drawn from post and telegraph employees in the Munster area. We will be retaining a branch office in Cork following the transfer. • C.I.E. Staff (Cork) Credit Union Limited, a small credit union of €1.2 million in assets, with a common bond drawn from, as the name suggests, workers of C.I.E. Cork, a volunteer run credit union, no staff and no office retained. • Castle Credit Union Limited, a small credit union of €1.4 million in assets with a common bond drawn from employees of Unilever based in Co Dublin. A volunteer run credit union, no staff and no office retained. The Board of Directors of Health Services Staffs Credit Union Limited are confident that the decision to join forces with these credit unions will strengthen our position to be the most trusted, respected and preferred financial institution for our members, providing good value, modern accessible and tailored services and support on a nationwide basis. I would like to take this opportunity to thank you the members for your continued loyalty to your credit union. Attached for your information is our Board Resolution approving the transfer and also the statement required under section 130 of the Credit Union Act, 1997 (as amended).
____________________ Mary Cullen Chairperson Health Services Staffs Credit Union Limited 2
TRANSFER OF ENGAGEMENTS REPORT
St. Gabriel’s Credit Union Chairperson’s Address Dear Member, Following several months of deliberation the Board of Directors of St. Gabriel’s Credit Union concluded that in order for our members to continue to enjoy the benefits of being a member of a credit union it is necessary to amalgamate with another credit union. After looking at a number of potential partners the Board of Directors concluded the best option for St. Gabriel’s Credit Union is to merge with Health Services Staffs Credit Union. At our AGM in December 2013 this decision was made known to our members. I am pleased to inform you that on the 9th of December 2014 the Board of Directors of St. Gabriel’s Credit Union passed a resolution to transfer its engagements to Health Services Staffs Credit Union. When the transfer of engagements is complete all current members of St. Gabriel’s Credit Union will automatically become members of Health Services Staffs Credit Union. The Common Bond of Health Services Staffs Credit Union will be extended so that anyone entitled to become a member of St. Gabriel’s Credit Union today will be able to join Health Services Staffs Credit Union in the future. St. Gabriel’s current office will remain open and will continue to be staffed by our existing staff. In addition to our existing services the members of St. Gabriel’s will be entitled to the full range of services and benefits provided by Health Services Staffs Credit Union. I would like to take this opportunity to thank all our members for their support and loyalty over the years. The Board of St. Gabriel’s is confident that this decision will be of great benefit to our members in the future. Attached for your information is our Board Resolution approving the transfer and also the statement required under Section 130 of the Credit Union Act 1997 (as amended).
William Casey Chairperson St. Gabriel’s Credit Union Limited
3
C.I.E. Staff (Cork) Credit Union Chairperson’s Address Dear Member, At the last Annual General Meeting the Board of Directors stated that due to a number of circumstances the strategic direction of the credit union needed to be addressed. As a result of this we are pleased to advise you that the Board of Directors of C.I.E. Staff (Cork) Credit Union Limited have passed a resolution of the 9th of December 2014 to proceed with a Transfer of Engagements from C.I.E. Staff (Cork) Credit Union Limited to the Health Services Staffs Credit Union Limited. This transfer arises from the belief of both Boards of Directors that members can be better served now and in the future by this transfer. On completion of the Transfer of Engagements all members of C.I.E. Staff (Cork) Credit Union Limited will automatically become full members of the Health Services Staffs Credit Union Limited. I would like to take this opportunity to thank you our members for your unwavering support over the years and we are confident that the decision to join forces with the Health Services Staffs Credit Union Limited will be of great benefit to our members in the future. Attached for your information is our Board Resolution approving the transfer, the statement required under section 130 of the Credit Union Act, 1997 (as amended) and the audited financial accounts for the year ended 30th of September 2014 for both credit unions.
Patrick McCarthy Chairperson C.I.E. Staff (Cork) Credit Union Limited
4
TRANSFER OF ENGAGEMENTS REPORT
Castle Credit Union Chairperson’s Address Dear Member, As you will be aware from discussions at the last Annual General Meeting of Castle Credit Union Limited, held on 1st March 2014 and following initial discussions with Health Services Staffs Credit Union Limited, the Board of Castle Credit Union Limited has determined to merge its activities with those of the Health Services Staffs Credit Union Limited. I am now pleased to advise that the Board of Castle Credit Union Limited passed a resolution on 9th of December 2014 to Transfer its Engagements to the Health Services Staffs Credit Union Limited. The boards of both Credit Unions, on behalf of its members, have taken this decision in the belief that the interests of members will be best served into the future. Members of Castle Credit Union Limited will, on the completion of the transfer of engagements, automatically become members of the Health Services Staffs Credit Union Limited and will become entitled to avail of the range of services and benefits provided by Health Services Staffs Credit Union Limited. Members will be notified when formal transfer is complete. I would like to thank you all for your support and loyalty over the years. I attach for your information the Board Resolution approving the transfer, together with the statement required under Section 130 of the Credit Union Act, 1997 (as amended).
Gerard Powell Chairman Castle Credit Union Limited
5
Proposed Board Resolutions regarding Health Services Staffs Credit Union Limited The Board of Health Services Staffs Credit Union Limited resolve to undertake the transfer of engagements of St Gabriel’s Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended). The Board of Health Services Staffs Credit Union Limited resolve to undertake the transfer of engagements of C.I.E. Staff (Cork) Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended). The Board of Health Services Staffs Credit Union Limited resolve to undertake the transfer of engagements of Castle Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
__________________________ David O’Brien Secretary Health Services Staffs Credit Union Limited
Passed Board Resolutions regarding Health Services Staffs Credit Union Limited That at its meeting of 9th day of December, 2014 the Board of Health Services Staffs Credit Union Limited resolved to undertake the transfer of engagements from St Gabriel’s Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended). That at its meeting of 9th day of December, 2014 the Board of Health Services Staffs Credit Union Limited resolved to undertake the transfer of engagements from C.I.E. Staff (Cork) Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended). That at its meeting of 9th day of December, 2014 the Board of Health Services Staffs Credit Union Limited resolved to undertake the transfer of engagements from Castle Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
__________________________ David O’Brien Secretary Health Services Staffs Credit Union Limited 6
TRANSFER OF ENGAGEMENTS REPORT
Proposed Board Resolutions regarding St Gabriel’s Credit Union Limited The Board of St Gabriel’s Credit Union Limited resolve that the Credit Union transfer its engagements to Health Services Staffs Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
Noreen McCarthy Secretary St Gabriel’s Credit Union Limited
Passed Board Resolutions regarding St Gabriel’s Credit Union Limited That at its meeting of 9th day of December, 2014 the Board of St Gabriel’s Credit Union Limited resolved that the Credit Union transfer its engagements to Health Services Staffs Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
Noreen McCarthy Secretary St Gabriel’s Credit Union Limited
7
Proposed Board Resolutions regarding C.I.E. Staff (Cork) Credit Union Limited The Board of C.I.E. Staff (Cork) Credit Union Limited resolve that the Credit Union transfer its engagements to Health Services Staffs Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
Finbarr Manning Secretary C.I.E. Staff (Cork) Credit Union Limited
Passed Board Resolutions regarding C.I.E. Staff (Cork) Credit Union Limited That at its meeting of 9th day of December, 2014 the Board of C.I.E. Staff (Cork) Credit Union Limited resolved that the Credit Union transfer its engagements to Health Services Staffs Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
Finbarr Manning Secretary C.I.E. Staff (Cork) Credit Union Limited
8
TRANSFER OF ENGAGEMENTS REPORT
Proposed Board Resolutions regarding Castle Credit Union Limited The Board of Castle Credit Union Limited resolve that the Credit Union transfer its engagements to Health Services Staffs Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
Marion O’Brien Secretary Castle Credit Union Limited
Passed Board Resolutions regarding Castle Credit Union Limited That at its meeting of 9th day of December, 2014 the Board of Castle Credit Union Limited resolved that the Credit Union transfer its engagements to Health Services Staffs Credit Union Limited in accordance with the relevant provisions of the Credit Union Act 1997 (as amended).
Marion O’Brien Secretary Castle Credit Union Limited
9
Health Services Staffs Credit Union Limited regarding St. Gabriel’s Credit Union Limited Statement under Section 130 of the Credit Union Act, 1997 (as amended) In accordance with Section 130 of the Credit Union Act, 1997 (as amended), the following matters are required to be stated: A. The financial position of Health Services Staffs Credit Union Limited and of St. Gabriel’s Credit Union Limited is set out in the form of; audited accounts for the Health Services Staffs Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014, and the audited accounts for the St. Gabriel’s Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014. B. No payment to members of Health Services Staffs Credit Union Limited or to members of St. Gabriel’s Credit Union Limited is proposed in connection with the transfer of engagements. C. Following the Transfer of Engagements, all new loans or amendments to existing loans to the former members of St. Gabriel’s Credit Union Limited will be subject to the current terms and conditions and interest rates of loans available in Health Services Staffs Credit Union Limited. Existing loans to former members of St. Gabriel’s Credit Union Limited will remain subject to their current terms and conditions. Interest Rates on Standard Loans will reduced from 9.52% (10% APR) to Health Services Staffs Credit Union Limited Standard Variable Loan Rate, currently 8.5% (8.9% APR). Interest Rates on Loans within Shares will reduced from 5.8% (6% APR) to Health Services Staffs Credit Union Limited Secure Variable Loan Rate, currently 5% (5.1% APR). D. The staff of St. Gabriel’s Credit Union Limited have been consulted regarding the Transfer of Engagements and will transfer to the Health Services Staffs Credit Union under the Transfer of Undertakings (Protection of Employment) Regulations 2006. E. The staff of Health Services Staffs Credit Union Limited have been consulted regarding the Transfer of Engagements with no issues arising.
10
TRANSFER OF ENGAGEMENTS REPORT
Health Services Staffs Credit Union Limited regarding C.I.E. Staff (Cork) Credit Union Limited Statement under Section 130 of the Credit Union Act, 1997 (as amended) In accordance with Section 130 of the Credit Union Act, 1997 (as amended), the following matters are required to be stated: A. The financial position of Health Services Staffs Credit Union Limited and of C.I.E. Staff (Cork) Credit Union Limited is set out in the form of; audited accounts for the Health Services Staffs Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014, and the audited accounts for the C.I.E. Staff (Cork) Credit Union Limited as at 30th September 2014 which are also their most recent management accounts. B. No payment to members of Health Services Staffs Credit Union Limited or to members of C.I.E. Staff (Cork) Credit Union Limited is proposed in connection with the transfer of engagements. C. Following the Transfer of Engagements, all new loans or amendments to existing loans to the former members of C.I.E. Staff (Cork) Credit Union Limited will be subject to the current terms and conditions and interest rates of loans available in Health Services Staffs Credit Union Limited. Existing loans to former members of C.I.E. Staff (Cork) Credit Union Limited will remain subject to their current terms and conditions. Interest rates on Standard Loans will reduced from 12% (12.68% APR) to Health Services Staffs Credit Union Limited Standard Variable Loan Rate, currently 8.5% (8.9% APR). D. As C.I.E. Staff (Cork) Credit Union Limited has no employees, no employment issues arise in relation to the Transfer of Engagements. E. The staff of Health Services Staffs Credit Union Limited have been consulted regarding the Transfer of Engagements with no issues arising.
11
Health Services Staffs Credit Union Limited regarding Castle Credit Union Limited Statement under Section 130 of the Credit Union Act, 1997 (as amended) In accordance with Section 130 of the Credit Union Act, 1997 (as amended), the following matters are required to be stated: A. The financial position of Health Services Staffs Credit Union Limited and of Castle Credit Union Limited is set out in the form of; audited accounts for the Health Services Staffs Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014, and the audited accounts for the Castle Credit Union Limited as at 30th September 2014 which are also their most recent management accounts. B. No payment to members of Health Services Staffs Credit Union Limited or to members of Castle Credit Union Limited is proposed in connection with the transfer of engagements. C. Following the Transfer of Engagements, all new loans or amendments to existing loans to the former members of Castle Credit Union Limited will be subject to the current terms and conditions and interest rates of loans available in Health Services Staffs Credit Union Limited. Existing loans to former members of Castle Credit Union Limited will remain subject to their current terms and conditions. D. As Castle Credit Union Limited has no employees, no employment issues arise in relation to the Transfer of Engagements. E. The staff of Health Services Staffs Credit Union Limited have been consulted regarding the Transfer of Engagements with no issues arising.
12
TRANSFER OF ENGAGEMENTS REPORT
St. Gabriel’s Credit Union Limited Statement under Section 130 of the Credit Union Act, 1997 (as amended) In accordance with Section 130 of the Credit Union Act, 1997 (as amended), the following matters are required to be stated: A. The financial position of St. Gabriel’s Credit Union Limited and of Health Services Staffs Credit Union Limited is set out in the form of; audited accounts for the St. Gabriel’s Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014, and the audited accounts for the Health Services Staffs Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014. B. No payment to members of St. Gabriel’s Credit Union Limited or to members of Health Services Staffs Credit Union Limited is proposed in connection with the Transfer of Engagements. C. Following the Transfer of Engagements, all new loans or amendments to existing loans to the former members of St. Gabriel’s Credit Union Limited will be subject to the current terms and conditions and interest rates of loans available in Health Services Staffs Credit Union Limited. Existing loans to former members of St. Gabriel’s Credit Union Limited will remain subject to their current terms and conditions. Interest Rates on Standard Loans will reduced from 9.52% (10% APR) to Health Services Staffs Credit Union Limited Standard Variable Loan Rate, currently 8.5% (8.9% APR). Interest Rates on Loans within Shares will reduced from 5.8% (6% APR) to Health Services Staffs Credit Union Limited Secure Variable Loan Rate, currently 5% (5.1% APR). D. The staff of St. Gabriel’s Credit Union Limited have been consulted regarding the Transfer of Engagements and will transfer to the Health Services Staffs Credit Union under the Transfer of Undertakings (Protection of Employment) Regulations 2006. E. The staff of Health Services Staffs Credit Union Limited have been consulted regarding the Transfer of Engagements with no issues arising.
13
C.I.E. Staff (Cork) Credit Union Limited Statement under Section 130 of the Credit Union Act, 1997 (as amended) In accordance with Section 130 of the Credit Union Act, 1997 (as amended), the following matters are required to be stated: A. The financial position of C.I.E. Staff (Cork) Credit Union Limited and of Health Services Staffs Credit Union Limited is set out in the form of; audited accounts for C.I.E. Staff (Cork) Credit Union Limited as at 30th September 2014 which are also their most recent management accounts, and the audited accounts for the Health Services Staffs Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014. B. No payment to members of C.I.E. Staff (Cork) Credit Union Limited or to members of Health Services Staffs Credit Union Limited is proposed in connection with the Transfer of Engagements. C. Following the Transfer of Engagements, all new loans or amendments to existing loans to the former members of C.I.E. Staff (Cork) Credit Union Limited will be subject to the current terms and conditions and interest rates of loans available in Health Services Staffs Credit Union Limited. Existing loans to former members of C.I.E. Staff (Cork) Credit Union Limited will remain subject to their current terms and conditions. Interest Rates on Standard Loans will reduced from 12% (12.68% APR) to Health Services Staffs Credit Union Limited Standard Variable Loan Rate, currently 8.5% (8.9% APR). D. As C.I.E. Staff (Cork) Credit Union Limited has no employees, no employment issues arise in relation to the Transfer of Engagements. E. The staff of Health Services Staffs Credit Union Limited have been consulted regarding the Transfer of Engagements with no issues arising.
14
TRANSFER OF ENGAGEMENTS REPORT
Castle Credit Union Limited Statement under Section 130 of the Credit Union Act, 1997 (as amended) In accordance with Section 130 of the Credit Union Act, 1997 (as amended), the following matters are required to be stated: A. The financial position of Castle Credit Union Limited and of Health Services Staffs Credit Union Limited is set out in the form of; audited accounts for the Castle Credit Union Limited as at 30th September 2014 which are also their most recent management accounts, and the audited accounts for the Health Services Staffs Credit Union Limited as at 30th September 2014 along with their management accounts as at 31st October 2014. B. No payment to members of Castle Credit Union Limited or to members of Health Services Staffs Credit Union Limited is proposed in connection with the Transfer of Engagements. C. Following the Transfer of Engagements, all new loans or amendments to existing loans to the former members of Castle Credit Union Limited will be subject to the current terms and conditions and interest rates of loans available in Health Services Staffs Credit Union Limited. Existing loans to former members of Castle Credit Union Limited will remain subject to their current terms and conditions. D. As Castle Credit Union Limited has no employees, no employment issues arise in relation to the Transfer of Engagements. E. The staff of Health Services Staffs Credit Union Limited have been consulted regarding the Transfer of Engagements with no issues arising.
15
Health Services Staffs Credit Union Limited Directors’ Report For the year ended 30 September 2014 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.
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TRANSFER OF ENGAGEMENTS REPORT
Health Services Staffs Credit Union Limited Directors’ Report (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 2014 of €1,645,826 (1.25%) 2013: €1,542,884 (1.25%). 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: 20 October 2014
Date: 20 October 2014
Date: 20 October 2014
17
Independent Auditor’s Report to the Members of Health Services Staffs Credit Union Limited For the year ended 30 September 2014 We have audited the financial statements of Health Services Staffs Credit Union Limited for the year ended 30 September 2014 which comprise the Income and Expenditure Account, the Balance Sheet, the Cashflow Statement and the related notes 1 to 17. 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 pages 16 and 17, 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.
18
TRANSFER OF ENGAGEMENTS REPORT
Independent Auditor’s Report to the Members of Health Services Staffs Credit Union Limited (Continued) For the year ended 30 September 2014 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 2014 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
Mill House Henry Street Limerick
20 October 2014
19
Income and Expenditure Account For the year ended 30 September 2014 Schedule INCOME Interest on Members’ Loans Members’ Deposit and Other Interest, Expense and Similar Charges Other Interest Income and Similar Income Net Interest Income Other Income TOTAL INCOME
2014 €
2013 €
8,174,445 (246,351) 1,788,262 9,716,356 107,829 9,824,185
7,948,089 (341,386) 1,754,236 9,360,939 115,789 9,476,728
1,963,244 4,540,639 137,365 500,000 (359,413) 6,781,835
1,744,108 4,875,370 67,327 1,500,000 (300,547) 7,886,258
EXCESS OF INCOME OVER EXPENDITURE FOR THE YEAR Add: Surplus for the period 1 October 2012 to 16 September 2013 James’ Street Credit Union Limited (“JSCU”) Surplus for the period 1 October 2012 to 16 September 2013 Texaco Employees’ Credit Union Limited (“TECU”)
3,042,350 -
1,590,470 105,269
-
70,524
TOTAL EXCESS OF INCOME OVER EXPENDITURE FOR THE YEAR Add: Undistributed Surplus at 1 October Undistributed Surplus at 16 September 2013 - JSCU Transfer from Special Reserve Reserves No Longer Required Less: Dividend Paid TOTAL
3,042,350 80,421 1,542,884 (1,542,886) 3,122,769
1,766,263 52,233 181,435 1,103,914 352,212 (1,103,914) 2,352,143
(573,610) -
(376,626) (152,212)
(1,645,826) (822,914) (3,042,350) 80,419
(1,542,884) (200,000) (2,271,722) 80,421
EXPENDITURE Salaries Other Management Expenses Depreciation Provision for Bad and Doubtful Debts Bad Debts Recovered TOTAL EXPENDITURE
Less:
1 2
3
Transfer to Statutory Reserve Transfer to Additional Regulatory Reserve Transfer to Other Reserves Special Reserve Other Realised Reserves
UNDISTRIBUTED SURPLUS AT 30 SEPTEMBER
Signed On behalf of the Credit Union CEO:
Sean Hosford
Date: 20 October 2014
Member of the Board Oversight Committee:
Anton Mullen
Date: 20 October 2014
Member of the Board of Directors:
Pat O’Neill
Date: 20 October 2014
20
TRANSFER OF ENGAGEMENTS REPORT
Statement of Total Recognised Gains and Losses For the year ended 30 September 2014
Surplus for the financial year
2014 € 3,042,350
2013 € 1,766,263
Total recognised gains relating to the year
3,042,350
1,766,263
Signed On behalf of the Credit Union CEO:
Sean Hosford
Date: 20 October 2014
Member of the Board Oversight Committee:
Anton Mullen
Date: 20 October 2014
Member of the Board of Directors:
Pat O’Neill
Date: 20 October 2014
21
Balance Sheet As at 30 September 2014 Notes ASSETS Cash on Hand and at Bank Deposits and Investments Loans to Members Less: Provision for Bad and Doubtful Debts Tangible Fixed Assets Debtors, Prepayments & Accrued Income TOTAL ASSETS
2014 €
2013 €
4,066,297 72,852,286 101,679,230 (9,301,307) 2,012,871 2,563,315 173,872,692
3,629,811 63,143,045 101,932,629 (8,801,307) 1,968,400 2,798,153 164,670,731
135,596,938 12,139,551 17,856 932,253 744,831 484,020 149,915,449
127,050,805 13,315,570 48,793 889,451 499,205 409,128 142,212,952
23,957,243
22,457,779
2 2
13,909,815 4,018,114 17,927,929
13,336,205 4,018,114 17,354,319
2
6,029,314
5,103,460
23,957,243
22,457,779
12 15 1
LIABILITIES Members’ Shares Members’ Deposit Accounts Members’ Deposit Interest (net of DIRT) Members’ Budget Accounts Other Liabilities, Creditors, Accruals and Charges Car Draw TOTAL LIABILITIES
17
13 14
NET WORTH Represented by: RESERVES Statutory Reserve Additional Regulatory Reserve TOTAL REGULATORY RESERVE Other Reserves Realised Reserves TOTAL RESERVES Signed On behalf of the Credit Union CEO:
Sean Hosford
Date: 20 October 2014
Member of the Board Oversight Committee:
Anton Mullen
Date: 20 October 2014
Member of the Board of Directors:
Pat O’Neill
Date: 20 October 2014
The notes and accounting policies on pages 23 to 28 form part of these Financial Statements
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TRANSFER OF ENGAGEMENTS REPORT
Significant Accounting Policies For the year ended 30 September 2014 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 3.7% SL per annum Furniture and Fittings 20% RB per annum Computer & Office Equipment 20% RB per annum Software 25% RB per annum Motor Vehicles 25% SL per annum
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 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. 23
Significant Accounting Policies (Continued) For the year ended 30 September 2014 1.3
(b) Investment Income (continued)
Perpetual Bonds, Bank Bonds and Government Bonds These are valued at the lower of cost and market value at the balance sheet date but not lower than the capital guaranteed amount. 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 they are valued at the lower of cost and par value. 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 period 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 €4,992,840.
24
TRANSFER OF ENGAGEMENTS REPORT
Cashflow Statement For the year ended 30 September 2014
Opening Cash and Investments James’ Street Credit Union Limited - Cash and Investments introduced at 16 September 2013 Texaco Staff Credit Union Limited - Cash and Investments introduced at 16 September 2013 RECEIPTS Members’ Shares Members’ Deposits Members’ Loans Repaid Member Loan Interest Received Deposit and Investment Income Bad Debts Recovered Other Receipts Decrease /(Increase) in Debtors, Prepayments and Accrued Income TOTAL RECEIPTS DISBURSEMENTS Members’ Shares Withdrawn Members’ Deposits Members’ Loans Granted Interest Paid Dividends Paid Operating Expenses Fixed Assets Purchased (Increase)/Decrease in Other Liabilities, Creditors, Accruals & Charges TOTAL DISBURSEMENTS Closing Cash and Investments
25
2014 €
2013 €
66,772,856
52,533,558
-
2,742,118
-
2,314,365
48,562,828 17,117,572 49,919,559 8,174,445 1,788,262 359,413 107,829 234,838
48,587,448 20,821,266 45,834,610 7,948,089 1,754,236 300,547 115,789 (252,402)
126,264,746
125,109,583
40,016,695 18,293,591 49,666,160 246,351 1,542,886 6,501,135 184,584 (332,383)
40,870,356 20,240,647 48,725,824 341,386 1,103,914 4,296,824 271,902 75,915
116,119,019
115,926,768
76,918,583
66,772,856
Notes to the Financial Statements for the year ended 30 September 2014 1. Tangible Fixed Assets Freehold Construction Premises in Progress
Furniture & Fittings
Computer & Office Equipment
Software
Motor Vehicles
Total
€ COST/ VALUATION At 1 October 2013 3,051,697 Additions Disposals Transfer 50,000 At 30 September 2014 3,101,697
€
€
€
€
€
€
50,000 (50,000) -
191,306 31,508 222,814
288,179 138,198 (13,800) 412,577
128,378 14,878 143,256
24,500 24,500
3,734,060 184,584 (13,800) 3,904,844
DEPRECIATION At 1 October 2013 1,446,697 Charge for the year 61,235 Depreciation on Disposal At 30 September 2014 1,507,932
-
79,951 26,164 106,115
121,154 37,778 (11,052) 147,880
105,608 6,063 111,671
12,250 6,125 18,375
1,765,660 137,365 (11,052) 1,891,973
NET BOOK VALUE At 30 September 2014 1,593,765
-
116,699
264,697
31,585
6,125
2,012,871
50,000
111,355
167,025
22,770
12,250
1,968,400
At 30 September 2013
1,605,000
2. Reserves
Regulatory Reserve Statutory Reserve Additional Regulatory Reserve Total Regulatory Reserve Other Realised Reserves Undistributed Surplus Special Reserve – Proposed Dividend (Note 18) General Reserve Total Other Reserves – Realised
Balance 1/10/2013 €
Net Movement €
Balance 30/9/2014 €
13,336,205 4,018,114 17,354,319
573,610 573,610
13,909,815 4,018,114 17,927,929
80,421 1,542,884 3,480,155 5,103,460
(2) 102,942 822,914 925,854
80,419 1,645,826 4,303,069 6,029,314
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.
26
TRANSFER OF ENGAGEMENTS REPORT
Notes to the Financial Statements for the year ended 30 September 2014 (Continued) 3. Proposed Dividend The Directors recommend the following distributions: 2014 Gross Dividend on Shares
Rate % 1.25%
2013 € 1,645,826
Rate % 1.25%
€ 1,542,884
4. Related Party Transactions During the year the Credit Union advanced €14,000 (2013: €30,950) in loans to directors. Directors’ balances at 30 September 2014 are as follows: Share balance €173,493 (2013: €295,606), Loan balance €93,644 (2013: €180,099). During the year the Credit Union advanced €166,800 (2013: €113,710) in loans to other Officers (comprising of staff and members of the Board Oversight Committee). Other Officers’ balances at 30 September 2014 are as follows: Share balance €177,897 (2013: €327,995), Loan balance €443,608 (2013: €577,542).
5. 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).
6. Pensions 2014 € 169,754
Pension Contributions
2013 € 132,697
7. Capital Commitments There were no capital commitments at 30 September 2014.
8. 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% 8.9% Special Rate Car Loans 0.60% 7.2% Education Loan 0.51% 6.1% Green Loan 0.60% 7.2% Secured Loan 0.43% 5.1%
27
9. Rates of Interest paid on Members’ Deposits Interest has been paid on Members’ deposits during the year as follows: Per Month % 0.08% 0.06% 0.125% 0.08%
Regular Deposit Account 0.75% + 0.75% 2yr Bonus 12 month Deposit Account Christmas Deposit
AER % 1% 0.75% 1.5% 1%
Bonus % 0.75% -
10. Contingent Liabilities There were no contingent liabilities in existence at 30 September 2014 that would impact on the financial statements.
11. Post Balance Sheet Events The Credit Union has a significant portfolio of Investments at 30 September 2014. 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 2014. 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 20 October 2014 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.
28
TRANSFER OF ENGAGEMENTS REPORT
Notes to the Financial Statements for the year ended 30 September 2014 (Continued) 12. Deposits and Investments These consist of deposits with and funds managed by the following institutions:
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 72,852,286
Prize Bonds Deposit Protection Account Allied Irish Bank Ulster Bank Irish Government Bank of Ireland BNP Paribas Central Bank MRR KBC Central Treasury FRN Fund Central Treasury Managed Fund Educational Building Society Rabo Bank Permanent TSB Pohjola Total
2013 € 253 246,826 4,628,000 1,000,000 302,840 14,597,578 320,000 914,156 7,901,340 364,767 13,097,510 1,742,132 4,074,221 13,891,422 62,000 63,143,045
Deposits and Investments are stated in line with the accounting policies as set out on pages 22 to 23. Included in Debtors, Prepayments and Accrued Income at 30 September 2014 is an amount of €842,579 (2013: €1,651,129) relating to accrued income and guaranteed returns on the above Deposits and Investments. The market value of Deposits and Investments (including accrued income and guaranteed returns) as at 30 September 2014 is €73,710,865 (2013: €64,827,473). The value of investments can rise and fall with market conditions.
13. Other Liabilities, Creditors, Accruals and Charges (Incl. DIRT)
DIRT Other Creditors and Accruals
2014 € 35,564 709,267 744,831
29
2013 € 31,590 467,615 499,205
14. Car Draw
Car Draw
2014 € 484,020
2013 € 409,128
The Credit Union operates a car draw for its members. The amount of €484,020 (2013: €409,128) 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.
15. Loans to Members The following is an analysis of Member Loans at 30 September 2014, 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
2014 € 94,383,366 6,459,316 836,548 101,679,230
2013 € 93,781,669 7,272,874 878,086 101,932,629
16. Special Reserve The directors decided to adopt a policy of setting aside the amount of the proposed dividend for the current year in a special reserve. This is reflected as a movement in reserves as set out in note 2.
17. Member Shares The following is an analysis of Member Shares:
Regular Shares Special Shares Term Shares
2014 € 135,412,011 184,927 135,596,938
30
2013 € 8,704,407 118,100,471 245,927 127,050,805
TRANSFER OF ENGAGEMENTS REPORT
Schedules to the Income and Expenditure Account For the year ended 30 September 2014 The following Schedules do not form part of the Statutory Financial Statements which are the subject of the Independent Auditor’s Report on pages 18 to 19.
SCHEDULE 1 – OTHER INTEREST INCOME AND SIMILAR INCOME
Deposit and Investment Income Bank Interest TOTAL PER INCOME AND EXPENDITURE ACCOUNT
2014 € 1,781,951 6,311 1,788,262
2013 € 1,741,530 12,706 1,754,236
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 Other TOTAL
2014 € 945,683 842,579 1,788,262
2013 € 912,673 841,563 1,754,236
SCHEDULE 2 – OTHER INCOME
ECCU refund Commissions Fees TOTAL PER INCOME AND EXPENDITURE ACCOUNT
31
2014 € 9,399 61,717 36,713 107,829
2013 € 20,601 57,099 38,089 115,789
Schedules to the Income and Expenditure Account (Continued) For the year ended 30 September 2014 Schedules to the Income and Expenditure Account For the year ended 30 September 2014 SCHEDULE 3 – OTHER MANAGEMENT EXPENSES 2014
2013
€
€
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 Treasurers Honorarium (Gross) Repairs and Maintenance General Insurance Bad Debts Written Off Audit Fees Pensions Supervisory/Board Oversight Committee Machinery Maintenance Computer and Software Maintenance Annual General Meeting Expenses Central Bank Resolution Fund Affiliation Fees Transfer of Engagements Costs Debit Card Expense Savings Protection Scheme Fund Contribution Rates Registrar Filing Fee Consultants Fees Debt Collection Marketing and Advertising Premises Impairment Building Maintenance Loss on disposal of fixed assets Staff Uniforms IT Strategy/ National Advertising Death Benefit Insurance Donations and Sponsorship Bursary Expenses Deposit Protection Charge
94,366 173,763 27,642 2,646 138,513 41,437 22,662 18,380 32,509 1,577 706,500 79,492 25,962 36,584 1,648,552 23,985 169,754 12,300 1,430 88,951 44,287 80,055 45,652 30,001 34,244 82,734 40,751 17,210 108,573 26,486 78,005 85,812 2,748 28,409 17,831 223,082 63,765 164,265 19,724
100,235 140,070 27,779 14,200 131,920 34,121 17,192 19,646 28,133 1,372 621,775 72,948 10,714 26,489 33,997 1,489,521 23,985 132,697 11,715 9,890 96,011 32,447 75,712 40,766 79,870 20,862 78,014 48,918 15,153 71,542 41,552 57,560 833,133 9,294 12,637 202,298 49,330 152,218 9,654
TOTAL PER INCOME AND EXPENDITURE ACCOUNT
4,540,639
4,875,370
32
TRANSFER OF ENGAGEMENTS REPORT
Report of the Board Oversight Committee Membership of the Board Oversight Committee for 2014 consisted of Mr. John Keppel (Chairman), Mr. Tom Mernagh (Secretary) and Mr. Anton Mullen. The Committee met on 12 occasions during year ended 30th September 2014. The Committee was represented at each meeting of the HSSCU Board of Directors and in reviewing the proceedings of those meetings, the Committee is satisfied that the Board at all times acted in accordance with current rules and legislation. In accordance with section 59 of the Credit Union Act 1997 and rule 85(1)(b)of the Standard Rules for Credit Unions, the Board Oversight Committee met with the Board of Directors on 4 separate occasions during the year, specifically to review their performance. The Committee wishes to thank the Directors and staff of the credit union for their courtesy and cooperation throughout the year.
John Keppel
Anton Mullen
Tom Mernagh
33
Health Services Staffs Credit Union Limited Unaudited financial statements as at 31st October 2014 INCOME AND EXPENDITURE A/C OCTOBER 14 INCOME Interest Income Investment Income Investment Loss/Gain Other Income Bad Debts Recovered Total Income
Y.T.D. Oct 14 €
Y.T.D. Oct 13 €
698,330.00 141,884.00 11,334.00 35,285.00 886,833. 00
678,666.00 140,792.00 3,269 .00 25,694.00 848,421.00
EXPENDITURE Net Loan Protection/Life Savings Insurance Salaries and Related Expenses
61,615.00
52,774.00
199,303.00
152,982.00
6,035.00
4,326.00
New Building Expense Interest on Deposits Interest + Bonus on Regular Saver Deposit NC Interest on Fixed Term of 12 Months Bad Debts Written Off Other Expenses
130.00
246.00
6,057.00
16,719.00
87,346.00
93,374.00
133,545.00
79,041.00
Total Expenditure
494,031.00
399,462.00
Excess of Income over Expenditure
392,802.00
448,959.00
Undistributed Surplus @ 01/10/2014 UNDISTRIBUTED SURPLUS @ 3lst October 2014
80,421 .00 473,223.00
80,422.00 529,381.00
34
TRANSFER OF ENGAGEMENTS REPORT
Health Services Staffs Credit Union Limited Unaudited financial statements as at 31st October 2014 Balance Sheet for Month 31st October 2014 ASSETS Cash Bank Accounts Minimum Reserve Deposit Protection Central Bank Investments Loaus Bad Debt Provision Specific Bad Debt Provision General
Y.T.D. Oct 14 €
Y.T.D. Oct 13 €
5,450.00 4,124,262.00 1,035,429.00 240,675.00 72,859,821.00 101,502,103.00
5,660.00 3,218,670.00 1,024,512.00 246,826.00 63,759,179.00 101,579,779.00
(9,301,307.00)
(8,801,307.00)
Fixed Assets Less Depreciation
2,013,591.00
1,969,227.00
Other Assets
2,272,272.00
2,665,757.00
174,752,296.00
165,668,303.00
TOTAL ASSETS LIABILITIES Shares
136,229,861.00
127,806,397.00
Deposits
6,449,848.00
4,503,354 .00
Fixed Term of 12 Months
4,677,926.00
7,889,517.00
Christmas Savings A/C
852,637.00
677,077.00
RSA2C l% + 100% Bonus Deposit A/C
133,177.00
135,387.00
RSAD 0.75% + 0.75%
17,968.00
Budgets
942,749.00
Other Liabilities TOTAL LIABILITIES NET WORTH
900,625.00
1,098,079.00
849,206.00
150,402,245.00
142,761,563.00
24,350,051.00
22,906,740 .00
13,909,818.00
13,336,205.00
REPRESENTED BY: CAPITAL Statutory Reserve Undistributed Surplus Brought Forward Other Reserves
Realised
Unrealised TOTAL CAPITAL
35
473,223.00
529,381.00
9,967,010.00
9,041,154.00
-
-
24,350,051.00
22,906,740.00
ST. GABRIELS CREDIT UNION LIMITED STATEMENT OF DIRECTORS’ RESPONSIBILITIES & STATEMENT OF BOARD OVERSIGHT COMMITTEE’S RESPONSIBILITIES FOR THE YEAR ENDED 30 SEPTEMBER 2014 STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR THE YEAR ENDED 30 SEPTEMBER 2014 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. The Credit Union Acts 1997-2012 requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Credit Union and of the Income & Expenditure of the Credit Union for that period. 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 a going concern basis unless it is inappropriate to presume that the Credit Union will continue in business. 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 are prepared in accordance with Accounting Standards generally accepted in Ireland and comply with the Credit Union Acts 1997-2012. 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. On behalf of the board of Directors: James O’Neill Member of the Board of Directors Date: 24/10/14
Noreen McCarthy Brady Member of the Board of Directors Date: 24/10/14
STATEMENT OF BOARD OVERSIGHT COMMITTEE’S RESPONSIBILITIES FOR THE YEAR ENDED 30 SEPTEMBER 2014 The Credit Union Acts 1997-2012 requires that each Credit Union has in place a Board Oversight Committee. The responsibilities of the Board Oversight Committee relate to the assessment, evaluation and reporting on whether the board of directors has operated in accordance with the Credit Union Acts 1997-2012 in relation to the management of the Credit Union.
Richard Barry On Behalf of the Board Oversight Committee Date: 24/10/14 36
TRANSFER OF ENGAGEMENTS REPORT
ST. GABRIELS CREDIT UNION LIMITED INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF ST. GABRIELS CREDIT UNION LIMITED We have audited the financial statements of St. Gabriels Credit Union Limited for the year ended 30 September 2014 which comprise the Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and the related notes. 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). Respective Responsibilities of Directors and Auditor As explained more fully in the Directors’ Responsibilities Statement set out on page 1, 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 (APB’s) Ethical Standards for Auditors. This report is made solely to the Credit Union’s members, as a body, in accordance with Section 120 of the Credit Union Acts 1997 - 2012. 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. 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 for our report. 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 2014 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 Union Acts 1997 - 2012. Other Matters Prescribed by the Credit Union Acts 1997 - 2012 - 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. Moore Stephens Nathans, Chartered Accountants & Registered Auditors, 83 South Mall, Cork. Date: 24/10/14 37
INCOME & EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2014 Notes Income Interest on Members’ Loans Members’ Deposit Interest and Other Interest Other Interest Income & Similar Income Gain on Sale of Investments
(Schedule 1)
Net Interest Income Other Income Total Income
(Schedule 2)
Expenditure Salaries and Wages Other Management Expenses Depreciation Impairment Loss on Freehold Premises Provision for Bad and Doubtful Debts Bad Debts Recovered Total Expenditure
(Schedule 3) Note 4 Note 4
Excess of Income over Expenditure for the year Less Dividends Paid
Note 5
Surplus/(Deficit) Undistributed surplus at 1 October Less: Transfer to Statutory Reserve Transfer from other reserves - unrealised
Note 7 Note 7
Undistributed Surplus at 30 September
2014 € 517,137 (18,214) 337,866 115,245
2013 € 593,434 (21,000) 474,661 -
952,034 32,282 984,316
1,047,095 20,041 1,067,136
236,499 750,561 34,441 82,432 (268,552) (12,820) 822,561
224,612 477,174 40,540 175,705 50,000 (14,305) 953,726
161,755 (85,609)
113,410 (124,098)
76,146 596,281 672,427
(10,688) 529,127 518,439
(16,176) 42,178
(11,341) 89,183
698,429
596,281
The financial statements were approved by the Board and authorised for issue and signed on behalf of the Credit Union on 24/10/2014.
Alan Duff Manager
Date: 24/10/14
Richard Barry Member of the Board Oversight Committee
Date: 24/10/14
James O’Neill Member of the Board of Directors
Date: 24/10/14
38
TRANSFER OF ENGAGEMENTS REPORT
BALANCE SHEET AS AT 30 SEPTEMBER 2014 Notes
2014 € 819,403 14,750,168 6,312,622 (631,448) 560,321 216,639 92,172
2013 € 1,128,367 13,030,630 7,293,195 (900,000) 675,987 419,438 124,898
TOTAL ASSETS
22,119,877
21,772,515
LIABILITIES Members’ Shares Members’ Deposits Money Management Accounts Accruals & Sundry Creditors
17,737,223 1,065,477 103,306 43,099
17,209,097 1,315,353 129,820 23,619
18,949,105
18,677,889
3,170,772
3,094,626
ASSETS Cash and Balances at Bank Deposits and Investments Loans To Members Less: Provision for Bad & Doubtful Debts Tangible Fixed Assets Prepayments & Accrued Income Eircom Payroll Deductions
3
4 8
6
TOTAL LIABILITIES ASSETS LESS LIABILITIES MEMBERS RESOURCES Statutory Reserve Additional Regulatory Reserve
7 7
2,344,817 121,800
2,328,641 121,800
Total Regulatory Reserve Other Reserves - realised Other Reserves - unrealised
7 7
2,466,617 698,429 5,726
2,450,441 596,281 47,904
3,170,772
3,094,626
TOTAL RESERVES
The financial statements were approved by the Board on 24/10/2014 and signed on behalf of the Credit Union by the following:
Alan Duff Manager
Date: 24/10/14
Richard Barry Member of the Board Oversight Committee
Date: 24/10/14
James O’Neill Member of the Board of Directors
Date: 24/10/14
39
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2014 2014 € 14,158,997
2013 € 13,226,034
9,684,777 23,451 3,774,900 517,137 337,866 12,820 115,245 32,282 235,525
8,882,763 415,207 4,067,274 593,434 474,661 14,305 20,041 (87,975)
14,734,003
14,379,710
9,156,651 273,327 3,118,714 85,609 18,214 662,673 1,207 7,034
8,586,372 763,611 3,301,282 124,098 21,000 621,970 4,711 23,703
Total Disbursements
13,323,429
13,446,747
Closing Cash and Investments
15,569,571
14,158,997
Opening Cash and Investments Receipts Members’ Shares Members’ Deposits Members’ Loans Repaid Members’ Loans Interest Received Investment Interest Received Bad Debts Recovered Gain on Sale of Investments Other Receipts Decrease/(Increase) in Prepayments Total Receipts Disbursements Members’ Shares Members’ Deposits Withdrawn Members Loans Granted Dividends Paid Interest Paid Operating Expenses Fixed Assets Purchased Decrease in Accruals
40
TRANSFER OF ENGAGEMENTS REPORT
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2014 1
Accounting Policies
1.1 Accounting Convention The financial statements are prepared under the historical cost convention. 1.2 Income Recognition Interest on members’ loans is recognised when payment is received as specified in Section 110(1)(C)(i) of the Credit Union Acts 1997-2012 (i.e. on a cash basis). Investment income is recognised on an accruals basis. Investment income comprises deposit interest, interest from medium term securities and gains/losses arising from the maturity or disposal of short and long term securities. Income on guaranteed growth bonds that are held to maturity is recognised over the period to maturity. The credit union is entitled to receive bonus payments under certain trailer policies, which are attached to a main investment policy and conditional upon holding that main investment policy to maturity. These policies are not held in the name of the credit union and therefore despite the intention of the credit union to hold the policy to maturity, no income will be recognised on these trailer policies until encashment. 1.3 Realised Income and Distribution Policy In financial years prior to and including the year ended 30 September 2008, any income recognised which was received or receivable at the balance sheet date, including, where the intention was to hold an investment to maturity, any income or gains which were guranteed under the terms of the investment/policy, is considered to be realised. In accordance with the ‘Guidance Note for Credit Unions on matters relating to Accounting for Investments and Distribution Policy’ issued by the Financial Regulator in April 2009, investment income recognised from the financial year ended 30 September 2009 is analysed between income which (i) was received at the balance sheet date; (ii) which will be received within twelve months of the balance sheet date and (iii) other investment income. Income included in (i) and (ii) is considered to be available for distribution; income included in (iii) is considered not to be eligible for distribution and is transferred to a non-distributable reserve. The change in policy from that applied in previous years in respect of (iii) has not been applied retrospectively and applies only to income recognised in the period since 1 October 2008. 1.4 Investments Investments held at the year end consists of deposits, corporate bonds and managed funds.
At year end, investments comprising deposits and managed funds are stated at cost except where managed funds have a guaranteed return over a specified time period and no encashment is anticipated before that date, they are valued at cost plus accrued income.
Corporate bonds, which the credit union intend to hold to maturity, are measured at a value which recognises the variables affecting the instrument. Corporate bonds have a nominal or guaranteed value which is payable by the issuer of the corporate bonds on the call date. Market value represents the value at which the instrument can be realised at the balance sheet date. Cost represents the original outlay incurred in obtaining the instrument. The value attributable to the corporate bond is the lower of cost and market value except in the case where the guaranteed value exceeds market value but is less than cost. In these cases the corporate bonds are valued at the lower of cost and the guaranteed value. A review of guaranteed values is carried out periodically and where the value is deemed to be permanently impaired, a provision is made for such an impairment. 41
Accounting policies
(continued)
1.5 Depreciation The cost of fixed assets is written off on a straight line basis over their expected useful lives as follows:
Freehold Premises Fixtures & Fittings Computer equipment
50 years 10 years 3 to 10 years
1.6 Pensions The Credit Union participates in the Irish League of Credit Unions Republic of Ireland Pension Scheme, with the assets of the scheme held seperately from those of the Credit Union, in seperately administered funds. The Credit Union’s contributions are affected by the surplus/ deficit in the scheme. However, it is not possible to identify the Credit Union’s share of the underlying assets and liabilities in the scheme on a consistent and reasonable basis. Therefore the scheme is accounted for by expensing actual contributions made to the income and expenditure account in the period to which they relate. The latest available information relating to the scheme and the implications for the Credit Union are detailed in note 12 in the financial statements. 1.7 Bad and Doubtful Debts Provision for doubtful debts is made against current loan balances which the directors consider are uncollectible. The amount provided is calculated based on the number of weeks a loan is in arrears adjusted for any specific bad debt, (using a formula set by the Irish League of Credit Unions, called Resolution 49 which is based on the number of weeks a loan is in arrears and then adjusting for any specific bad debts). 1.8 Members shares’ and deposits Unattached members’ shares and deposits are unconditionally repayable on demand and therefore exhibit characteristics of a liability. Under current accounting guidelines members’ shares and deposits have been recognised as a liability in the balance sheet. The corresponding dividends on members’ shares are charged to the income and expenditure account when paid. The corresponding dividends on members’ deposits is accounted for on an accruals basis and deducted from the total interest income for the year. 2
Going concern The Credit Union is in the process of finalising a “transfer of engagement” to another Credit Union as part of its strategic plan to provide a better service to its members. No adjustment has been made to the carrying value of assets or liabilities to reflect any adjustment that would be required as part of the transfer of engagement process.
42
TRANSFER OF ENGAGEMENTS REPORT
3
Deposits and Investments Deposits BNP Paribas AIB Deposits Central Bank Minimum Reserve Account EBS Building Society Bank of Ireland Ulster Bank Permanent TSB KBC Central Bank Deposit Protection Account Rabo Bank Investec An Post
Bonds BOI Guaranteed Growth and Income Bond Ulster Bank Bond ASIA Growth Bond PTSB Global Infrastructure Bond Eurozone Tracker Bond
Total Deposits and Investments
43
2014 €
2013 €
150,000 1,250,000 101,352 1,013,758 2,941,697 1,250,000 788,125 1,109,755 34,781 3,253,914 1,756,338 200,448
150,000 101,116 557,440 2,631,349 500,000 750,014 2,210,450 35,716 3,444,097 500,000 200,448
13,850,168
11,080,630
700,000 200,000
600,000 700,000 250,000 200,000 200,000
900,000
1,950,000
14,750,168
13,030,630
4
Tangible fixed assets Freehold Premises €
Fixtures & Fittings €
Computer Equipment €
Total
Cost or Valuation At 1 October 2013 Additions
1,115,173 -
169,774 -
217,064 1,207
1,502,011 1,207
At 30 September 2014
1,115,173
169,774
218,271
1,503,218
Depreciation At 1 October 2013 Impairment loss Charge for the year
465,173 82,432 17,568
168,168 507
192,683 16,366
826,024 82,432 34,441
At 30 September 2014
565,173
168,675
209,049
942,897
Net Book Value At 30 September 2014
550,000
1,099
9,222
560,321
At 30 September 2013
650,000
1,606
24,381
675,987
€
Impairment Loss During the year ended 30th September 2014, the premises of the Credit Union was written down by €82,432 to reflect its market value. This was based on a valuation carried out by a qualified auctioneer.
During the year ended 30th September 2013, the premises of the Credit Union was written down by €175,705 to reflect its market value. This was based on valuations carried out by two qualified auctioneers.
5
Dividends & Loan Interest Rebate
A dividend of €85,609 (2013: €124,098) was approved and paid during the year.
6
Accruals & Sundry Creditors
The proposed final dividend of 0.25% €43,056 (2013: 0.5% €85,609) for the year ended 30 September 2014 is subject to approval by the members at the Annual General Meeting and has not been included as a liability in these financial statements. The proposed dividend will be paid post year end to all registered members. It is proposed that no loan interest rebate will be paid for the year ended 30 September 2014.
Creditors & Accruals
2014 € 43,099 43,099
2013 € 23,619 23,619
44
TRANSFER OF ENGAGEMENTS REPORT
7 Reserves
Opening balance at 1 October 2013 Income and Expenditure Appropriation Closing balance at 30 September 2014
Statutory Reserve
Additional Regulatory Reserve
€
Realised Reserve
Total
€
Unrealised NonDistributable Investment Income Reserve €
€
€
2,328,641
121,800
47,904
596,281
3,094,626
16,176
-
(42,178)
102,148
76,146
2,344,817
121,800
5,726
698,429
3,170,772
Statutory Reserve Under the provisions of the Credit Union Acts 1997-2012, at least 10% of each year’s surplus must be transferred to Statutory Reserve.
Regulatory Reserve: In accordance with the Credit Union Acts 1997-2012, (Section 85) Rules 2009, the Credit Union is required to maintain a Regulatory Reserve Ratio of not less than 10% with effect from 30 September 2009. The Regulatory Reserve Ratio is defined as the amount held in the total Regulatory Reserve of the Credit Union expressed as a percentage of the total assets of the Credit Union. The total Regulatory Reserve is comprised of the Statutory Reserve and where relevant any amount held in a non- distributable additional regulatory reserve account. The current Regulatory Reserve in the financial statements represents 11.15% (2013:11.25%) of the total assets of the Credit Union.
Non- Distributable Investment Income Reserve Under the provisions of the “Guidance Note for Credit Unions on Matters Relating to Accounting for Investments and Distribution Policy ( April 2009)” issued by the Registrar of Credit Unions, the Credit Union is required to transfer the investment income not receivable within 12 months of the balance sheet date to a reserve which is not eligible for distribution. When such income becomes receivable within 12 months of the balance sheet date, it can be transferred to the Realised Reserve.
45
8
Prepayments and Accrued Income
Accrued Investment Interest Income Prepayments
2014 € 179,866 36,773
2013 € 376,810 42,628
216,639
419,438
9
Honorarium To Treasurer
The Treasurer was paid an honorarium of €1,000 for the year ended 30 September 2013. The position of Treasurer no longer exists following the commencement of the CUCORA Act 2012.
10 Related Party Transactions
During the year loans were approved for directors and officers of the Credit Union. These loans were approved in accordance with Standard Credit Union Rules. No material transactions in relation to other related parties require disclosure under Financial Reporting Standard No. 8.
Total loans advanced to directors and officers during the financial year amounted to €44,100 (2013: €65,750). Loans due by directors and officers at 30 September 2014 amount to €143,100 (2013: €151,803).
Directors and officers share balances stood at €529,207 (2013: €558,504) at 30 September 2014.
11 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 Acts 1997-2012.
46
TRANSFER OF ENGAGEMENTS REPORT
12 Pension Scheme
The credit union participates in an industry-wide pension scheme for employees (The Irish League of Credit Unions Republic of Ireland Pension Scheme). This is a funded scheme of the defined benefit type, with assets invested in separate trustee administered funds. However, St Gabriel’s Credit Union Limited is unable to identify its share of the underlying assets and liabilities. Consequently, St Gabriel’s Credit Union Limited accounts for its contributions to the scheme as if it were a defined contribution scheme. Contributions payable to the scheme are recognised in the income and expenditure account
An actuarial review of the fund is normally carried out every three years by the Scheme’s independent, professionally qualified, actuary. The actuarial review looks at the past & future liabilities of the scheme.
The last completed triennial actuarial review was carried out with an effective date of 1st March 2011 using the Projected Unit Credit method. The principal actuarial assumption used in the valuation was the investment return would be 1.75% higher than the annual salary increases. The market value of the scheme’s assets at 1st March 2011 was €107.3m. The actuarial valuation disclosed a past service deficit of €28.7m on the long term funding basis at 1st March 2011. This actuarial review recommended a long term funding rate of 22.5%. The cost of risk benefits is paid in addition to this rate.
It should be noted that the above rate is based on the long term funding objectives. As a separate requirement under section 56(1) of the Pensions Act 1990, the scheme actuary must carry out a separate valuation every 3 years and produce a funding certificate for submission to The Pensions Board within 9 months of the effective date of the valuation. The purpose of the certificate is to certify whether or not the assets of the scheme at the effective date are sufficient to meet the liabilities of the scheme based on the assumption that the scheme was wound up at that date.
An actuarial funding certificate, certifying the Scheme did not meet the statutory minimum funding standard was submitted to the Pensions Board with an effective date of 1st March 2009.
Consequently, the Trustees submitted a new funding proposal, to address the shortfall in funding, to the Pensions Board. The submitted funding proposal is designed to ensure that the scheme could reasonably be expected to satisfy the funding standard as at 1st March 2019 and provides for a retirement contribution rate of 27.7%. The cost of risk benefits is payable in addition giving a total contribution rate of 30% of Pensionable Salary. This funding proposal was approved by the Pensions Board.
For the scheme year ended 29th February 2012 the actuary advised that having been directed by the Trustees and Employer, in light of the current economic outlook, that it was appropriate to revise the assumption for salary increases over the remaining term of the funding proposal from 5% pa to 3.25% pa he was reasonably satisfied that the scheme will satisfy the funding standard as specified in Section 44 of the Pensions Act, 1990, at the date of 1 March 2019 specified by the Pensions Board under Section 49(2) (a) of the Act for the purpose of the existing funding proposal.
The scheme’s Solvency Position in accordance with the aggregate cover for total Funding Standard liabilities as at 28th February 2014 was 104.5%. 47
13 Rates of Interest charged on Members’ Loans
The rate of interest charged on member’s loans on a reducing balance basis were as follows:
Standard Rate Loan Home improvement loan Education loan One year loan
Monthly
APR
0.8333% 0.4875% 0.4875% 0.4168%
10% 6% 6% 5.1%
14 Contingent Liabilities
There were no contingent liabilities identified at the Balance Sheet date.
15 Capital Commitments & Contingencies
The Credit Union had no capital commitments at 30 September 2014.
16 Rates of Interest Paid on Members Deposits
There are two types of term deposit accounts. The rate of interest paid on these was: Duration Rate 3 year 2% 5 year 2%
17 Post Balance Sheet Events
The Credit Union continues to progress a possible transfer of engagement post year end.
18 Approval of financial statements
The financial statements were approved by and authorised for issue by the Board of Directors on the 24/10/2014.
48
TRANSFER OF ENGAGEMENTS REPORT
SCHEDULES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2014
Schedule 1 - Other Interest Income & Similar Income Investment Income Bank interest
2014 € 337,866 -
2013 € 459,280 15,381
Total Per Income and Expenditure Account
337,866
474,661
Analysed as follows: Received at the Balance Sheet Date Receivable within one year of Balance Sheet date Receivable after one year of Balance Sheet Date
158,000 174,140 5,726
320,018 144,986 9,657
337,866
474,661
2014 €
2013 €
Schedule 2 - Other Income ECCU Rebate Rental Income Fexco Commission Other Income
12,715 10,946 8,621
6,665 12,109 1,145 122
Total Per Income and Expenditure Account
32,282
20,041
49
SCHEDULES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2014 2014 €
2013 €
Bad debts written off ECCU insurance Pension Audit fees Affilliation fees Miscellaneous expenses Education and publicity Professional fees Security Light, cleaning and heating Bank charges Rates Printing and stationery Insurance Computer expenses Postage and telephone Donations and sponsorship AGM expenses and convention expenses Treasurer’s Honorarium Travelling Debt collection ICB Charges Repairs and renewals Credit institutions resolution fund levy Central Bank deposit protection account charges
324,387 153,927 40,750 21,631 4,269 10,970 10,145 23,019 14,343 10,454 18,521 9,997 16,562 8,503 36,708 11,314 5,235 3,885 5,222 220 1,596 1,004 15,068 2,831
79,816 143,788 40,345 16,666 8,863 12,478 13,281 22,221 13,904 10,402 14,496 9,880 12,786 8,258 25,065 9,662 3,825 6,665 1,000 6,501 373 1,600 10,818 4,481
Total Per Income and Expenditure Account
750,561
477,174
Schedule 3 - Other Management Expenses
50
TRANSFER OF ENGAGEMENTS REPORT
St. Gabriels Credit Union Limited Unaudited financial statements as at 31st October 2014 INCOME AND EXPENDITURE A/C OCTOBER 14 INCOME Loan Interest Income Interest on Deposit Accounts Rental from apartments Bad Debts Recovered Cash Over/Short Total Income
Period Oct 14 €
Y.T.D. Oct 14 €
44,500.09 18,767.66 1,393.80 934.92 (1.16) 65,595.31
44,500.09 18,767.66 1,393.80 934.92 (1.16) 65,595.31
EXPENDITURE Members Insurance Schemes
7031.73
7031.73
Salaries and Related Expenses
20297.83
20297.83
General Expenses
18,833.08
18,833.08
Total Expenditure
46,162.64
46,162.64
Excess of Income over Expenditure
19,432.67
19,432.67
UNDISTRIBUTED SURPLUS @ 3lst October 2014
19,432.67
19,432.67
51
St. Gabriel’s Credit Union Unaudited financial statements as at 31st October 2014
BALANCE SHEET FOR MONTH 31ST OCTOBER 2014 Fixed Assets Buildings Fixtures & Fittings Computer Equipment
Y.T.D. Oct 14 550,000.00 1,098.99 9,221.99 560,320.98
Current Assets Floats Current Accounts Deposit Accounts Loans to Members Provision for Bad Debts Miscellaneous Assets
48,790.00 769,727.77 14,839,398.32 6,287,097.55 (631,448.40) 326,591.49 21,640,156.73
Current Liabilities Members’ Funds Other Liabilities
1,133,769.94 43,098.80 1,176,868.74 20,463,287.99
Current Assets less Current Liabilities: Total Assets less Current Liabiliti es:
21,023,608.97
Members Funds and Reserves Members’ Funds Statutory Reserves Additional Statutory Reserve Unrealised Reserve Undistributed Surplus Undistributed Surplus Brought Forward P&L Account
17,833,406.77 2,344,817.00 121,800.00 5,726.00 698,428.70 (2.17) 19,432.67 21,023,608.97
52
TRANSFER OF ENGAGEMENTS REPORT
C.I.E. Staff (Cork) Credit Union Statements Of Directors’ and Supervisory Committees Responsibilities For the year ended 30 September 2014 Statement of directors’ responsibilities The Credit Union Act, 1997 (as amended) require the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the credit union and of the income and expenditure of the credit union for that period. 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. 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 to enable 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. Transfer of Engagement At the last AGM the Board of Directors stated that due to a number of circumstances the strategic direction of the Credit Union needed to be addressed. As a result of this we are very pleased to advise you that the Board of Directors of C.I.E. Staff (Cork) Credit Union Limited passed a resolution on the 26th November 2014 to proceed with the Transfer of Engagement from C.I.E. Staff (Cork) Credit Union Limited to Health Services Staffs Credit Union Limited. This transfer arises from the belief of both Boards of Directors that members can be better served now and in the future by this transfer. On completion of the Transfer of Engagements all members of C.I.E. Staff (Cork) Credit Union Limited will automatically become full members of the Health Services Staffs Credit Union Limited.
On behalf of the board Patrick McCarthy Chairman
James Ryan Manager
Statement of Board Oversight Committee Responsibilties The Credit Union Act, 1997 (as amended) requires the appointment of a Board Oversight Committee to assess whether the board of directors has operated in accordance with Part IV, Part IVA and any regulations made for the purposes of Part IV or Part IVA of the Credit Union Act, 1997 (as amended) and any other matter prescribed by the Bank in respect of which they are to have regards in relation to the board.
On behalf of the board oversight committee John Bowen Board Oversight Committee
Tom Deasy Board Oversight Committee 53
INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF C.l.E. STAFF (CORK) CREDIT UNION LTD We have audited the financial statements of CIE Staff (Cork) Credit Union Limited for the year ended 30 September 2014 which comprise the Income and Expenditure Account, Balance Sheet, Cash Flow Statement and the related notes. 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 soley 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 the directors and auditors As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the financial statements giving a true and fair view. Our responsibilty 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 (APB’s) Ethical Standards for Auditors. Basis of audit opinion 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 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 annual report to identify material inconsistencies with the audited financial statements. If we became aware of any apparent material misstatements or inconsistencies we consider the implications for our report. We have undertaken the audit in accordance with the requirements of APB Ethical Standards including APB Ethical Standard - Provisions Available for Small Entities, in the circumstances set out in note 11 to the financial statements . Opinion 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 2014 and of its income and expenditure for the year then ended; - have been properly 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 Union Act 1997 (as amended) Other matters prescribed by the Credit Union Act 1997 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. Crowley & McCarthy Chartered Accountants Registered Auditors, Charlotte House, 7 Fr Matthew Quay, Cork. 54
TRANSFER OF ENGAGEMENTS REPORT
INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 SEPTEMBER 2014 Income Interest on Members’ Loans Other Interest Receivable and Similar Income
Schedule 1
€ 29,519 15,378
€ 31,634 23,648
2
44,897 125
55,282 4
45,022
55,286
20,986 39,072 203 (2,092)
10,493 29, 172 226 2,000 -
58,169
41,891
Excess of Income over Expenditure for the Year
(13,147)
13,395
Add: Dividends Paid Interest Rebate Paid
( 10,055) -
(20,035) -
(23,202)
(6,640)
7 7 7
(10,055) (13,147)
2,000 (9,980) 1,340
(b)
23,202
6,640
-
-
Net Interest Income Other Income Total Income Expenditure Salaries Other Management Expenses Depreciatation Loss on investments Provision for Bad and Doubtful Debts Bad Debts Recoverd
3
Total Expenditure
Total
(a)
Less: Transfer to Statutory Reserve Transfer to Other Realised Reserves Rent and Building Fund General Reserve
Note
Total Undistrbuted Surplus Carried Forward
(a) - (b)
These financial statements were approved by the Board on 26/11/2014. On behalf of the Credit Union John Bowen Board Oversight Committee
Patrick McCarthy Chairman
55
James Ryan Manager
BALANCE SHEET AS AT 30 SEPTEMBER 2014 2014 €
2013 €
88,670 818,366 250,678 (58,784) 344 1,992
76,210 881,155 289,019 (58,784)
1,101,266
1,189,795
907,259 26,397
993,254 5,729
Total Liabilities
933,656
998,983
Net worth
167,610
190,812
Notes Assets Cash and Balances at Bank Deposits and Investments Loans to Members Less: Provision for Bad and Doubtful Debts Other Debtors & Prepayments Tangible Fixed Assets
2
3
Total Assets Liabilities Members’ Shares Other Liabilities, Accruals and Charges
5 4
2, 195
Represented by Statutory Reserve Additonal Reserve
7 7
151,673 151,673
151,673 151,673
Total Regulatory Reserve Other Reserves Realised Reserves Unrealised Reserves
7 7
15,937 -
39,139 -
167,610
190,812
Total Reserves
On behalf of the Credit Union John Bowen Board Oversight Committee
Patrick McCarthy Chairman
56
James Ryan Manager
TRANSFER OF ENGAGEMENTS REPORT
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2014
Opening Cash and Investments
2014 € 957,365
2013 € 963,227
119,422 175,344 29,517 13,935 2,092 1,568
171,353 168,574 31,634 22,458 1,194
341,878
395,213
205,417 137,003 10,055 3,361 56,697 (20,326)
183,031 158,400 20,035 3,361 36,304 (56)
(c)
392,207
401,075
(a) + (b) - (c)
907,036
957,365
(a)
Receipts Members’ shares Members’ loans repaid Members’ loan interest received Investment interest received Bad Debts Recovered Other Receipts Total Receipts
(b)
Disbursements Members’ shares Members’ loans granted Loan interest rebate paid Dividends Paid Rent paid Operating expenses Fixed Asset Purchased Other Disbursements Total Disbursements Closing Cash and Investments
57
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2014 1
2
3
Other Interest Receivable and Similar Income Income & gains received at the balance sheet date Income & gains receivable within 12 months of the balance sheet date Other investment income
2014 € 13,935 1,443 -
2013 € 22,458 1,190 -
Total per Income and Expenditure Account
15,378
23 ,648
Other Income
2014 €
2013 €
Members’ Fees Overprovisions Cash over/under Sundry Income
4 121
4 -
Total per Income and Expenditure Account
125
4
Lighting, Heating and Cleaning Printing and Stationery Telephone Rent Affiliation Fees SPS Contribution Education and Publicity Expenses Travel and Subsistence Bank Charges Legal and Professional Audit Fee General Insurance Death Benefit Insurance Regulatory Levy Miscellaneous Expenses
2014 € 705 875 862 3,361 492 344 237 20,400 746 215 2,236 1,521 5,490 1,206 382
2013 € 564 816 783 3,361 1,144 336 149 9,800 1,057
Total per Income and Expenditure Account
39,072
29,172
Other Management Expenses
58
2,236 1,557 5,753 1,218 398
TRANSFER OF ENGAGEMENTS REPORT
1
Accounting policies
1.1 Accounting convention The financial statements are prepared under the historical cost convention. 1.2 Compliance with accounting standards The financial statements are prepared in accordance with applicable law and the accounting standards issued by the Accounting Standards Board and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland), which have been applied consistently (except as otherwise stated). 1.3 Tangible fixed assets and depreciation Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Leasehold interest Office equipment
0% 10% Reducing Balance
1.4 Leasing Rentals payable under operating leases are charged against income on a straight line basis over the lease term. 1.5 Investments Investments are valued at the lower of cost plus accrued income and market value.
Decreases In the capital value of perpetual bonds are included in the Income & Expenditure Account. Increases which reverse a previous decrease in the value of the bond are included in the Income & Expenditure Account. All other increases in excess of the cost of the bond are recognised when the bond is sold.
The board of directors have a policy to hold until maturity all investments with a guaranteed return of capital plus guaranteed minimum return at maturity. As a result of this policy, these investments are valued at cost, with the minimum guaranteed return being recognised on an accruals basis over the life of the investment. Temporary reductions in value are not accounted for on the basis of the capital guarantee on maturity.
1.6 Income Recognition Interest on Member’s Loans is recognised when payment is received as specified in Section 110 (1) (c) of the Credit Union Act, 1997 (as amended) (i.e. on a cash basis).
Investment income is recognised on an accruals basis.
1.7 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 at 30 September 2014 based upon the number of weeks a loan is in arrears, rescheduled loans , share to loan transfers and other relevant loan information.
59
2
Summary of Deposits and Investments
Notes
Davy Private Clients Permanent TSB AIB PLC Bank of Ireland BCP Ulster Bank KBC Bank
(a) (b) (c) (d) (e) (f)
2014 €
2013 €
81,974 210,858 204,037 108,743 104,449 108,305
81,127 207,165 200,495 106,819 75,000 103,257 107,292
818,366
881,155
Under the Eligible Liabilities Guarantee Scheme (ELG Scheme) operated by the Government, certain investments/deposits carry an unconditional and irrevocable state guarantee.
Note
(a) This represents total funds under managment of Davy Private Clients. Davys accumulate funds from other Credit Union clients and then invest these funds in various financial products.
This amount of €81 ,974 is invested in a collective investment scheme comprising Irish and foreign deposits, some of which are covered by the ELG scheme. Due to the nature of the fund, the specific amount guaranteed relating to the credit union cannot be readily identified.
(b) These funds are covered by the ELG Scheme. (c) These funds are covered by the ELG Scheme. The funds are under the management of AIB PLC. (d) These funds are covered by the ELG Scheme. (e) These funds are covered by the ELG Scheme. (f) KBC Bank NV is not covered by the ELG Scheme as it is not an Irish Bank. KBC Bank NV has an ‘A’ Credit rating from the various rating agencies and is an eligible investment as set out by the Central Bank.
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TRANSFER OF ENGAGEMENTS REPORT
3
4
Tangible fixed assets
Leasehold interest €
Office equipment €
Total
Cost At 1 October 2013
165
8,310
8,475
At 1 October 2013 & at 30 September 2014
165
8,310
8,475
Depreciation At 1 October 2013 Charge for the year
-
6,280 203
6,280 203
At 30 September 2014
-
6,483
6,483
Net book value At 30 September 2014
165
1,827
1,992
At 30 September 2013
165
2,030
2,195
2014 € 26,397
2013 € 5,729
26,397
5,729
Regular share accounts
2014 € 907,259
2013 € 993,254
Total per Balance Sheet
907,259
993,254
Other Liabilities,Creditors, Accruals & Charges Accruals and deferred income
5
6
€
Members’ Shares
Rates of interest charged on Members’ Loans Per month APR 1% 12.6%
61
7
Statement of movements on reserves Statutory Other Reserve Realised Reserve
8
Balance at 1 October 2013 Movement during the year
€ 151,673 -
€ 13,901 -
Balance at 30 September 2014
151,673
13,901
Dividend General and Reserve Interest Rebate Reserve € € 10,055 15,183 (10,055) 13,147
Proposed Dividends, Loan Interest Rebate Dividend on Shares
-
2,036
2014 € -
2013 € 10,055
-
10,055
The directors recommend that a dividend of 0% (2013 1%) is paid on member shares and an interest rebate of 0% (2013 0%) for the year ended 30 September 2014.
9
Contingent liabilities
There were no material contingencies existing at 30 September 2014.
10 Capital commitments
The credit union had no capital commitments at the year end, 30 September 2014.
11 APB Ethical Standards - Provisions Available for Smaller Entities
In common with many entities of our size and nature, our auditors provide us with advisory and consulting services.
12 Insurance against Fraud
The credit union has insurance against fraud in the amount of €2,500,000 in compliance with Section 47 of the Credit Union Act, 1997.
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TRANSFER OF ENGAGEMENTS REPORT
13 Related party transactions
During the year loans were approved for officers of the credit union. These loans were approved in accordance with the standard credit union rules.
There were no other material transactions during the year which would require disclosure under Financial Reporting Standard No. 8 ( Related Party Disclosures).
14 Post balance sheet events
There were no material post Balance Sheet events.
15 Transfer of Engagement
The Board of Directors of CIE Staff (Cork) Credit Union Ltd have resolved to undertake a Transfer of Engagement in accordance with Section 130 of the Credit Union Act 1997 (as amended).
16 Approval of financial statements
The directors approved the financial statements on
63
Castle Credit Union Limited Directors’ Report For the year ended 30 September 2014 Principal Activity The principal activities of the credit union involves the acceptance of member’ share/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 Both the level of business and the year-end financial position were satisfactory. Authorisation The credit union is authorised to conduct investment business. 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 risk 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 engaging 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 5 High St, Dublin 8.
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TRANSFER OF ENGAGEMENTS REPORT
Castle Credit Union Limited Directors’ ‘Report For the year ended 30 September 2014 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 Financial Reporting Council 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. 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 5. Dividend and Loan Interest Rebate The directors recommend a dividend and interest rebate in respect of the year ended 30 September 2014 of €10,422 (1%) and of €2,843 (10%) respectively (2013: €10,660 (1%) and €2,290 (10%) respectively). Auditors In accordance with Section 115 of the Credit Union Acts, 1997 (as amended) the auditors Grant Thornton offer themselves for re-election.
On behalf of the board of Credit Union: Miriam Keleghan Manager Date: 28/10/14
John Greene Member of the Board Oversight Committee Date: 28/10/14
65
Gerard Powell Member of the Board of Directors Date: 28/10/14
Castle Credit Union Limited Independent Auditors’ Report to the Members for the year ended 30 September 2014 We have audited the financial statements of Castle Credit Union Limited for the year ended 30 September 2014 which comprise the Income and Expenditure Account, the Balance Sheet, the Cashflow Statement and the related notes l to 11. 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 2, 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 arc 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. 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 2014 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 Union Act, 1997 (as amended).
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TRANSFER OF ENGAGEMENTS REPORT
Castle Credit Union Limited Independent Auditors’ Report to the Members (continued) for the year ended 30 September 2014 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 Mill House Henry Street Limerick
Date: 28 October 2014
67
Income and Expenditure Account For the year ended 30 September 2014 Schedule INCOME Interest on Members’ Loans Other Interest Income and Similar Income TOTAL INCOME EXPENDITURE Other Management Expenses (Decrease)/ Increase in the Provision for Bad and Doubtful Debts TOTAL EXPENDITURE EXCESS OF INCOME OVER EXPENDITURE FOR THE YEAR Add:
Less:
TOTAL Less:
Undistributed Surplus as at 1 October Transfer from Special Reserve Transfer from Non Distributable Investment Income Reserve Interest Rebate Paid Dividend Paid
Transfer to Statutory Reserve Transfer to Unrealised Reserve Transfer to Special Reserve
UNDISTRIBUTED SURPLUS AT 30 SEPTEMBER
2
2014 €
2013 €
28,434 12.586 41,020
22,901 20.824 43,725
96,611 (66,511) 30,100
23,902 10,500 34,402
10,920
9,323
79,640 12,899
54,512 13,871
8,664 (2,297)
18,267 (3,026)
(10,602)
(10,845)
99,224 (1,092) -
82,102 (932) (1,530)
(1,984)
-
96,148
79,640
On behalf of the board of Credit Union:
Miriam Keleghan Manager Date: 28/10/14
John Greene Member of the Board Oversight Committee Date: 28/10/14
68
Gerard Powell Member of the Board of Directors Date: 28/10/14
TRANSFER OF ENGAGEMENTS REPORT
Statement of Total Recognised Gains and Losses For the year ended 30 September 2014
Surplus for the financial year
2014 € 10,920
2013 € 9,323
Total recognised gains relating to the financial year
10,920
9,323
On behalf of the board of Credit Union: Miriam Keleghan Manager Date: 28/10/14
John Greene Member of the Board Oversight Committee Date: 28/10/14
69
Gerard Powell Member of the Board of Directors Date: 28/10/14
Balance Sheet As at 30 September 2014 Notes ASSETS Cash and Balances at Bank Deposits and Investments Loans to Members Less: Provision for Bad and Doubtful Debts Tangible Fixed Assets Investment Interest Receivable Debtors and Prepayments TOTAL ASSETS
3
LIABILITIES Members Shares Other Liabilities, Creditors, Accruals and Charges TOTAL LIABILITIES
2 11
NET WORTH Represented By: RESERVES Statutory Reserve TOTAL REGULATORY RESERVE Other Reserves - Realised - Unrealised TOTAL RESERVES
4 4
2014 € 51,744 1,140,221 200,252 (18,653) 16,073 2,625 1,392,262
2013 € 52,402 1,106,320 298,339 (85,164) 37,537 3,171 1412605
1,042,636 7.395 1,050,031 342,231
1,062,921 5,474 1,068,395 344,210
213,430 213,430
212,338 212,338
128,801 342,231
123,208 8, 664 344,210
On behalf of the board of Credit Union: Miriam Keleghan Manager Date: 28/10/14
John Greene Member of the Board Oversight Committee Date: 28/10/14
Gerard Powell Member of the Board of Directors Date: 28/10/14
The accounting policies and notes on pages 71 to 77 form part of these Financial Statements.
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TRANSFER OF ENGAGEMENTS REPORT
Castle Credit Union Limited Significant Accounting Policies For the year ended 30 September 2014 1.1 Accounting Convention The Financial Statements have been prepared under the historical cost convention.
1.2 (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.
1.3 Valuation of investments and deposits 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:
(a) Bank deposits, short term deposits and term deposits These are valued at the deposit amount plus any accrued interest at the balance sheet date. Interest income is recognised in the Income and Expenditure Account on an accruals basis.
(b) Bonds Bonds arc 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 bonds 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.
(c) Investments with guaranteed returns These are valued at cost plus guaranteed returns proportionally spread out over the life of the investment. The relevant guaranteed amount each year is recorded in the Income and Expenditure Account. Investments are only capital guaranteed if held to maturity and if the Institutions fulfil their obligations.
(d) Investments with return of capital guaranteed These are valued at the lower of cost and market value 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 fulfil their obligations. Any Investments with return of capital guaranteed where the Directors expect to encash prior to maturity date are valued at the lower of cost and market value.
71
1.4 Depreciation Depreciation is provided over the expected lives of tangible fixed assets. Fixtures and fittings 25% Straight Line per annum
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 €7,384 . 1.6 Value Added Tax The Credit Union is not registered for VAT, therefore all expenses include VAT where charged.
72
TRANSFER OF ENGAGEMENTS REPORT
Cashflow Statement For the year ended 30 September 2014 2014 € 1,158,722
2013 € 1,104,708
RECEIPTS Members’ shares lodged Members’ loans repaid Investment Income Received Member Loan Interest Received Decrease in receivables
78,101 182,037 12,586 28,434 22,010
110,724 143,559 20,824 22,901 4,212
TOTAL RECEIPTS
323,168
302,225
Opening Cash and Investments
DISBURSEMENTS Members' shares withdrawn Members ' loans granted Dividends paid Interest rebate paid Operating expenses (increase)/Decrease in accruals TOTAL DISBURSEMENTS Closing Cash and Investments
73
98,386 83,950 10,602 2,297 96,611 (1,921) 289,925
109,487 94,600 10,845 3,026 23,902 6,351 248,211
1,191,965
1,158,722
Notes to the financial Statements For the year ended 30 September 2014 1.
Deposits and Investments These consist of the following: 2014 € 334,659 16 50,000 74,085 212,774 1,985 466,702 1,140,221
Overnight Fund AIB Call Account Asia Growth Bond July 2014 Diversified Investment Portfolio 2015 AIB Prescient SP Euro Liquidity Fund Goldman Sachs Corporate Bond February 2015 BOI Advanced Investment Deposit Protection Account CTMF
2013 € 205,022 16 100,000 50,000 212,774 74,077 2,108 462,323 1,106,320
Deposits and Investments are stated in line with the accounting policies as set out on page 8. Accrued Income in respect of the above Deposits and Investments amount to €16,073 at 30 September 2014 (2013: €37,537).
The market value of the Deposits and Investments as at 30 September 2014 including accrued income is €1,156,294 (2013: €1,143,857). The value of investments can rise and fall with market conditions.
2. Members’ Shares 2014 € 1,042,636 1,042,636
The following is an analysis of Member Shares: Regular Shares Special Share Accounts
74
2013 € 646,695 416,226 1,062,921
TRANSFER OF ENGAGEMENTS REPORT
3. Tangible Fixed Assets COST
Fixtures & Fittings € 10,648 10,648
At 1 October 2013 Additions At 30 September 2014
DEPRECIATION At 1 October 2013 Charge for the Year At 30 September 2014
10,648 10,648
NET BOOK VALUE At 30 September 2014
-
At 30 September 2013
-
4. Reserves
The Credit Union maintains the reserves to support its operations, provide a base for future growth and protect against the risk of unforeseen losses. The following reserves are maintained:
Regulatory Reserve Statutory Reserve
Balance 1/10/2013 €
Net Movement €
Balance 30/09/2014 €
212,338
1,092
213,430
Realised Reserves Undistributed Surplus Development Reserve Special Reserve - Investments Community Reserve Special Reserve - Proposed Dividend and Interest Rebate Total Other Reserves - Realised
79,640 3,809 10,000 5,579
16,508 -
96,148 3,809 10,000 5,579
24,180 123,208
(10,915) 5,593
13,265 128,801
Unrealised Reserves Non Distributable Investment Income Total Other Reserves - Unrealised
8,664 8,664
(8,664) (8,664)
-
In accordance with the Credit Union Act, 1997 (as amended), (Section 85) Rules 2009, the Credit Union is required to maintain a Regulatory Reserve Ratio of not less than 10% with effect from 30 September, 2009. At 30 September 2014 the Regulatory Reserve Ratio is 15.3%. The Regulatory Reserve is realised, unrestricted and non-distributable. 75
5. Proposed Dividend and Loan Interest Rebate
The Directors recommend the following distributions: 2014 Rate% Gross Dividend on Shares Loan Interest Rebate
€
2013 Rate%
€
1.00%
10,422
1.00%
10,660
10.00%
2,843
10.00%
2,290
6. Related Party Transactions
During the year the Credit Union advanced €10,000 (2013: €23,200) in loans to Directors. Directors balances at 30 September 2014 are as follows: Share balance €70,885 (2013: €93,827) Loan balance €22,933 (2013: €31,570).
During the year the Credit Union advanced €500 (2013: €8,000) in loans to other officers (comprising of members of the Board Oversight Committee). Other officers balances at 30 September 2014 are as follows: Share balance €25,256 (2013: €25,283), Loan balance €7,258 (2013: €7,883).
7. Insurance against Fraud
The Credit Union has insurance against fraud in the amount of €1,300,000 in compliance with Section 47 of the Credit Union Act, 1997 (as amended).
8. Rates of interest Charged on Members’ Loans
Interest is charged on Members’ Loans at a rate of 8.4% APR (0.7% per month) on a reducing balance basis (2013: 8.4% APR).
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TRANSFER OF ENGAGEMENTS REPORT
9. Post Balance Sheet Events
The Credit Union has a significant portfolio of Investments at 30 September 2014. 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 2014. 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 the date of approval of the Board of Directors 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.
10. Contingent Liabilities
There were no contingent liabilities in existence at 30 September 2014 that would impact on the financial statements.
11. Other Liabilities, Creditors, Accruals and Charges
Accruals
2014 €
2013 €
7,395
5,474
77
Castle Credit Union Limited Schedules to the Income and Expenditure Account For the year ended 30 September 2014 The following schedules form part of the statutory financial statements which are the subject of the Independent Auditor’s Report on pages 3 to 4.
SCHEDULE 1 - OTHER INTEREST INCOME AND SIMILAR INCOME 2014 €
2013 €
Deposit and Investment Income
12,586
20,824
TOTAL PER INCOME AND EXPENDITURE ACCOUNT
12,586
20,824
Other interest income and similar income consists of interest and net gains and is analysed as follows:
Received at the Balance Sheet date Receivable within 12 months of Balance Sheet Date Receivable after 12 months of Balance Sheet Date TOTAL
78
2014 €
2013 €
6,707 5,879 0 12,586
13,718 5,579 1,530 20,824
TRANSFER OF ENGAGEMENTS REPORT
Castle Credit Union Limited Schedules to the Income and Expenditure Account For the year ended 30 September 2014 SCHEDULE 2 -OTHER MANAGEMENT EXPENSES 2014 €
2013 €
Postage and stationary Donations and Sponsorship Chapter fees AGM fees Legal fees Audit fees General insurance Share and loan insurance (Gross) Computer maintenance Board Oversight/Supervisory Committee Due Diligence fees Miscellaneous office expenses ILCU affiliation fees Bad debts written off Bank charges
684 650 871 1,084 5,535 2,527 10,753 3,540 150 2,044 1,914 66,511 348
694 700 610 410 940 5,535 2,498 9,354 3,181 150 (6,413) 5,057 750 436
TOTAL PER INCOME AND EXPENDITURE ACCOUNT
96,611
23,902
79
Notes
80
Health Services Staffs Credit Union Limited 5 High Street, Dublin 8, also Phoenix View, 144-150 James’s Street, Dublin 8. Tel: 01 677 8648 or Lo Call: 1890 677864 (from outside 01 area) Fax: 01 677 8664 E-mail:
[email protected] Web: www.hsscu.ie
St. Gabriel’s Credit Union Limited
34-36 St Patrick’s Quay, Cork. Tel: 021 455 2345 Fax: : 021 455 3030 E-mail:
[email protected] Web: www.stgabrielcu.ie
C.I.E. Staff (Cork) Credit Union Limited
7 Father Matthew Quay, Cork. Tel: 021 427 7484 Fax: : 021 427 7484 E-mail:
[email protected]
Castle Credit Union Limited
c/o Unilever Ireland, 20 Riverwalk, City West Business Campus, City West, Dublin 22. Tel: 086 1963452 E-mail:
[email protected]
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