AGECU 39th AGM Brochure

Angostura Group Employees Credit Union Co-operave Society Ltd.
Annual Report 2013
Lord, make me an instrument of thy peace. Where there is hatred, let me sow love. Where there is injury, pardon. Where there is doubt, faith. Where there is despair, hope. Where there is darkness, light. And where there is sadness, joy. O Divine Master, Grant that I may not so much seek To be consoled, as to console; To be understood, as to understand; To be loved, as to love. For it is in giving that we receive. It is in pardoning that we are pardoned, And it is in dying that we are born to Eternal Life. (Prayer of St. Francis Assisi)
Forged from the love of liberty In the res of hope and prayer With boundless faith in our desny We solemnly declare: Side by side we stand Islands of the blue Caribbean sea, This our nave land We pledge our lives to thee. Here every creed and race nds an equal place, And may God bless our naon Here every creed and race nds an equal place, And may God bless our naon.
39th Annual General Meeng
Angostura Group Employees Credit Union Co-operave Society Ltd. Annual Report 2013
BOARD OF DIRECTORS President Mr. Lambert George Vice President Mr. Wayne McDonald Secretary Mr. Albert Rojas Assistant Secretary Ms. Evelyn Sco Treasurer Mr. Johann Merri Assistant Treasurer Mr. David St. George Member Mr. Andrew Brown Member Mr. Terran Eligon Member Mr. Mario Clarke Member Mr. Lance Paul Garcia Member Mr. Marc Paul Member Ms. Sharon Ramsaran _________________________________________________________ MANAGEMENT Manager Ms. Debra Solomon _________________________________________________________ COMMITTEE CHAIRPERSONS Supervisory Mr. Carson Chadee Credit Mr. Andrew Brown Educaon Ms. Sharon Joseph _________________________________________________________ ATTORNEYS AT LAW L.K Doodnath & Co. Ltd.Notary Public, #9 Anglican Street, Arima _________________________________________________________ AUDITORS Pannell Kerr Foster#245 Belmont Circular Road, Belmont _________________________________________________________ BANKERS RBC Royal Bank of Trinidad & Tobago - #55 Independence Square, Port of Spain Republic Bank Ltd. Eastern Main Road, San Juan _________________________________________________________ AFFILIATION Cuna Mutual Group _________________________________________________________ REGISTERED OFFICE Corner Trinity Ave. & EMR, LavenlleTel/Fax: 625-2662
STANDING ORDERS MEMBERS FIXED DEPOSIT RATES ELECTION PROCEDURES COMMITTEE MEMBERS PRESIDENTS MESSAGE AGM 2013 MINUTES AGECU FUN CORNER BOARD OF DIRECTORS REPORT SUPERVISORY COMMITTEE REPORT CREDIT COMMITTEE REPORT EDUCATION COMMITTEE REPORT RESOLUTIONS BUDGETARY PROPOSALS FINANCIAL STATEMENT / AUDITORS REPORT
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To be the premier nancial instuon catering to the needs of our members.
To develop an environment that fulls the social and nancial goals of our members and their families without compromising the integrity, philosophy and statute of Credit Unionism.
Noce is hereby given that the 39th Annual General Meeng of Angostura Group Employees Credit Union Co-operave Society Limited will take place on Saturday March 22nd 2014 in the Glass Room, House of Angostura, Eastern Main Road, Lavenlle at 2:00 p.m. Registraon begins at 1:00 p.m.
_______________ ALBERT ROJAS SecretaryBoard of Directors

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Opening Prayer/Invocaon Naonal Anthem Acknowledgement-Invited Guest Presidents Message Feature Address Credenal Report Reading and Conrmaon of Minutes (38th A.G.M.) Maers Arising Reports: Board of Directors Supervisory Commiee Credit Commiee Educaon Commiee Financial Statement/Auditors Report Budgetary Proposals
10. Resoluons 11. Elecons of Ocers: Supervisory Commiee Credit Commiee Board Of Directors 12. Other Business 13. Door Prizes 14. Vote of Thanks 15. Refreshments
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A member shall stand and state his name when addressing the Chair. Speeches shall be clear and relevant to the subject before the meeng. A member shall address the meeng when called upon by the Chairman to do so, aer which, he shall immediately take his seat. No member shall address the meeng except through the Chairman. A member shall not speak twice on the same subject except: The mover of the moon who has a right to reply. He rises to object to or to explain any maer (with the permission of the Chair). No speeches shall be made aer the queson has been put and carried or negave. The mover of a procedural moon (adjournment, lay on the table, moon to postpone) shall have no right to reply. A member rising on a point of order shall state the point clearly and concisely. (A point of order must have relevance to the Standing Orders). A member shall not call another member to order but may draw the aenon of the Chair to a Breach of Order. On no account can a member call the Chair to order. Only one amendment shall be before the meeng at one and the same me. When a moon is withdrawn, any amendment to it fails. The Chairman shall have the right to a casng vote. If there is an equality of vong on an amendment and if the Chairman does not exercise his casng vote, the amendment is lost. Provision shall be made for protecon by the Chairman from vilicaon (personal abuse). No member shall impute improper moves against another.
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Members Fixed Deposit Rates (Revised) / Guidelines Due to connued challenges in the local and internaonal investment arena coupled with excess liquidity within the economy and with the advice and guidance of our Investment Advisor, at a Special Execuve Meeng held 23rd April, 2013, the xed deposit rates oered by the AGECU have been revised as: With eect from Friday 25th April 2013:
BREAK RATE % AFTER SIX (6) MONTHS 1.50 1.75 2.00 2.25
RANGE ($$) $1,000 - $49,999.99 $50,000 - $99,999.99 $100,000 - $249,999.99 $250,000 and Over
% FULL YEAR (12 MONTHS) 2.00 2.25 2.50 2.75
BREAK RATE (%) Less 0.75 Less 0.75 Less 0.75 Less 0.75
(N.B. the period for ALL Fixed Deposits shall be twelve (12) months.)
These will apply to All Fixed Deposits (NEW / RENEWALS) A Noce should be sent to each Depositor as a reminder PRIOR to the maturity date, and asking for their decision of the principal. The cercate must be signed by the Treasurer and the Manager and issued immediately, or in their absence, the protocol for signing of cheques must be followed. ONLY PENSIONERS can use their interest to service their loans monthly. Provide proof that member has agreed to the rates oered and that member signs for receiving cercate and copy placed on members le.
. Lambert George President

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Johann Merri Treasurer
ELECTION PROCEDURES
1. Ballot papers for elecons for the Board of Directors, Credit and Supervisory Commiees will be given to members at the me of vong. Nominaons of persons to contest elecons to the Board and Commiees will come from the general membership present. See list of current and outgoing commiee members eligible for reelecon. There will be separate boxes for the board, Credit and Supervisory Commiees. On compleon of the nominaon process, members will cast their ballots. The appointed persons will count the ballots while the meeng is in progress. The results will be announced immediately on compleon of the count. Members may accept nominaons for the Board, Credit and Supervisory Commiees. However, those elected for the Supervisory Commiee will not be eligible for elecon to the Credit Commiee or Board.
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COMMITTEE MEMBERS
MAY 2013 APRIL 2014
Board of Directors:
Mr. Lambert George Ms. Evelyn Sco Ms. Sharon Ramsaran Mr. Terran Eligon Mr. Johann Merri Mr. David St. George Mr. Andrew Brown Mr. Marc Paul 20132016 20132016 20132016 20132016 20122015 20122015 20122015 20122015
Out-going and eligible for re-elecon:

Mr. Wayne McDonald Mr. Albert Rojas Mr. Mario Clarke Mr. Lance Paul Garcia Outgoing Outgoing Outgoing Outgoing
Supervisory Commiee Outgoing and eligible for re-elecon:

Ms. Beverly De Freitas Ms. Olivia Bunche Mr. Dennis Brown Ms. Marilyn Smith Mr. Carson Chadee Ms. Leslie-Ann Wilson 2013 3rd Term 2013 3rd Term 2013 3rd Term 2013 Resigned 2013 2nd Term 2013 1st Term
Credit Commiee Outgoing and eligible for re-elecon:

Mr. Andrew Brown Ms. Evelyn Sco Mr. Alvin Sandy Mr. Marc Paul Ms. Sharon Ramsaran
On behalf of the Board of Directors, and our Administrave sta, welcome to our 39th Annual General Meeng. (AGM)
As I write this message on this y-h day of this New Year 2014, according to news papers report our country has recorded seventy-seven murders. What does this has to do with our AGM? To me everything. Any patrioc cizen of our Naon will be concern, because if this trend connues our communies will be negavely aected, and as we all know, these communies make up our beauful twin island Republic of Trinidad and Tobago. Our mission statement is To develop an environment that fulls the social and nancial goals of our members and their families without compromising the integrity, philosophy and statute of Credit Unionism I will like to be very modest in saying that generally, we have been achieving our members nancial and social goals. The very fact that today we can declare ve percent dividend bears tesmony to this. Lets us not take this for granted. We could do more in the area of social. Acvies. Permit me too respecully focus on the instuon call the family, which is the building block of society. As is the family in any naon (Trinidad and Tobago) so is the church, state, educaon, business, arts, and life of that naon.
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It is my humble belief that the challenges facing our naon today may be aributed to neglect of our children by parents. It is in our homes our childrens are inslled with godly character and biblical world-view, both of which are necessary to support free, just, and prosperous naons. (Trinidad and Tobago). The future of our Naon in wrapped up in the minds of our sons and daughters (future members of our credit unions). When we hear the word government, in most cases we usually think of civil government (U.N.C. / C.O.P. / P.N.M. / etc) There are two spheres of government internal and external. Another name for internal government is self government. All government begins internally in our minds as parents which will be transferred to our children. We must culvate the ability to govern our conscience, will, character, thoughts, ideas, moves, convicon, atudes, and desires. How we govern ourselves internally aects our external acons, speech, conduct, use of property, etc. We are in the third month of a new year 2014. God has given us this awesome privilege, if we have not already did some reecon on the past year, some internal auding, its not too late. Starng with ourselves and then lets do all in our power to keep the family unit together, the results will be beer communies and a beer Trinidad and Tobago.
Co-Operavely Yours
__________________ LAMBERT GEORGE President
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Minutes of the 38th Annual General Meeng of the Angostura Group Employees Credit Union (AGECU) held on Saturday, April 6th, 2013 in the Glass Room, House of Angostura, Eastern Main Road, Lavenlle. 1.0 Call to order The 38th Annual General Meeng was called to order at 2:15pm by Mr. Lambert George, President of the AGECU, who also said the opening prayer. Mr. George then asked all present to say the Credit Union prayer, which was followed by a minute of silence for members who had passed during the period. The Naonal Anthem was then played on the steel pan by Mr. Anthony Livingston. Acknowledgements The President acknowledged all invited guests and asked the following persons to bring greengs on behalf of their organisaon:

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Ms. Cassian George-Cowie Co-Operave Division Ms. Angela Ramkissoon Co-Operave Division Ms. Marsha Santlal-Phagoo Co-Operave Division Mr. Neil Alexander - PKF Mr. Edward King President, NWRC Ms. Petra Cooper Secretary, NWRC Mr. Horace Leach Trinidad & Tobago Deposit Insurance Fund Mr. Wayne Estrada CUNA Mutual Group Ms. Kathleen Lewis-Garcia President, Neal & Massy (North) Credit Union Mr. Gary Francois - CCULTT Ms. Esme Raphael President, CFF Mr. Christopher McShine Community Care Credit Union W.A. Inniss - CCCU
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Presidents Message Mr. George drew reference to the Presidents message in the brochure and took it that all present had read same. Feature Address a. The President then introduced the feature speaker, Mr. Jerome Chambers CEO of Going Global who also acts as a consultant to the AGECU. b. Mr. Chambers began by drawing reference to an observaon made by one of the guests in his greengs, Mr. Wayne Estrada CUNA representave , who commended the Board of Directors for having the annual general meeng on me. He suggested that having such a meeng on me may give false hope to members who assume that all is well within the organisaon. He also recounted a conversaon with a member who, when asked if she was coming to the AGM, replied that she was unsure. He then asked if she was not interested in the money she had invested in the credit union. c. Mr. Chambers went on to give a denion of the term responsibility. He said he found that people oen accept responsibilies and obligaons with no concept of or cares for
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the consequences or penales associated with not fullling same d. Mr. Chambers stated there are between 400k to 500k cizens of Trinidad and Tobago who are credit union members, but wondered how many of them acvely parcipate in the aairs of the organisaon when called to serve. He said bad things happen when members sit back and allow others to control how their money is handled. e. Mr. Chambers connued by saying it was a members duty to aend his/her credit unions annual general meeng AND to acvely parcipate in its aairs, i.e. to serve. On acceptance of such a responsibility, it is then the members duty to full his/her duciary responsibility while in service. f. Mr. Chambers ended his contribuon by stang nothing will change unless someone does something dierently. He was then presented with a token of appreciaon by Mr. Codrington Plante, representave for the educaon commiee. 6.0 Credenal Report a. Mrs. Gillian Mitchell gave the 1st credenal report for the evening, stang that at 2:55pm there were 58 members and 13 guests present. b. The President advised that the meeng was duly constuted as it had the necessary quorum. He then invited the Secretary, Mr. Albert Rojas, to read the noce for the 38th annual general meeng, the agenda and the standing orders. c. The President asked for the adopon of the agenda and the standing orders, which was moved by Mr. David Gibson, who rst pointed out a correcon to the numbering of the agenda. The moon was then seconded by Mr. Noel Grant and carried by the members present. 7.0 Minutes of the 37th AGM a. The Minutes were taken as read and members were invited to give their recommendaons on any correcons or omissions to be made to same. b. Mr. Clarence Lewis drew reference to the word outburst on page 21 (13.0, e) and stated that he took objecon to the term, asking for it to be removed. The President asked Mr. Lewis to suggest a replacement for the word and it was agreed by the members that the note would then read for his statement c. There being no other correcons to the minutes, the membership was asked to move a moon for its adopon. This was done by Mr. Marc Paul and seconded by Mr. Kenneth Philips. The moon was then carried. 8.0 Maers Arising a. Pg 13, item 7.2 Investment Commiee: Mr. Gibson asked for an update on the remaining refund of the Brish American investment. The President advised this had been subsequently received. b. There being no further maers arising out of the minutes, the meeng moved on to the next item.
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Amendments to Bye-Laws a. The President asked members if to read out the proposed amendments to the ByeLaws or to take it as having been read. Aer agreeing to read them, Mr. George then asked the educaon commiee to assist with counng the votes during the process. b. The rst proposed amendment to secon 4(a) membership qualicaon was read out. Mr. David Gibson asked the chair to clarify the term business associates as noted in secon 4(b). Mr. George explained these would be persons who do business with the credit union and advised that this term was already in the exisng bye-laws and there were in fact several associates who are members of the AGECU. Mr. Everton Callendar then asked if the discussions could be cantered on the proposed changes only. c. Mr. Anthony Livingston asked for a denion as it pertained to the term children in the proposed amendment secon 4(a)ii children of members subject to Secon 10(2) of the Co-operave Sociees Act Chapter 81:03. The President then read out a copy of the relevant secon of the Act to the members. Mr. George went on to explain that the current Bye-Laws do not have provisions for children of members becoming members themselves, even though some of these children are being treated as members now. The proposed amendment sought to recfy that gap. d. Mr. Clarence Lewis asked for a denion of the term former employees and rerees receiving pension as it related to the proposed amendment Secon 4(a)i. He advised that there were some former employees of Angostura who had rered from the Company, but had received a lump sum payment and were not receiving a pension. He quesoned if these persons would be excluded from joining the credit union if the amendment was passed as suggested. The President said the Board would be willing to consider amending the statement if Mr. Lewis could suggest a new wording. e. Mr. Robert Pierre then suggested that the credit union needs to nd a guarantee to ensure non-employees who are members do not default on their loans. Mr. George asked that Mr. Lewis proposal be given consideraon before addressing Mr. Pierres concerns. f. Mr. Everton Callender said that the statement as it stands says former employees and therefore should not be assumed to exclude anyone, even those not receiving a pension from the Company. The President added that the context of the term former employees meant persons currently working elsewhere. g. Mr. Callender then suggested that perhaps the statement was improperly worded. Mr. Clarence Lewis added that his (Mr. Lewis) point would only become relevant if the intent was to exclude those former employees not receiving a pension from the Company. He agreed with Mr. Callender that either the word former or the words receiving pension should be removed from the statement. h. Mr. Lance Garcia advised that the intent of the term was really to ensure that those rered employees who are members of the credit union would be able to service any exisng loans they may have with a pension. He added that, as it stands, there is no need to make any amendment, as the current clause does not contain the words receiving a pension.
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i. Savitri Balkissoon asked if the term former employees also included casuals who were no longer with the Company. She was advised that this would include them as well. j. It was then suggested to remove the words receiving pension from the and the statement would now read former employees and rerees of the Angostura Group of Companies. The President advised that the members would have to vote on each separate item and the proposed changes. He then asked for a credenals report and a vote on the suggested change to the wording of the proposed amendment. k. At this point 3:35pm - it was reported that there were 68 members present.
l. The President asked for a move to second the proposed change to the wording by Mr. Clarence Lewis. This was moved by Mr. Lance Garcia and the results were 38 in favour; 6 against and 4 abstenons. m. Mr. Anthony Livingston expressed his concern that, if the credenals report stated 68 members present, the numbers vong were not adding up. The President advised that if members chose not to put their hands up, they could not be forced to do so. n. The President then asked for a vote to accept the proposed amendment with the changes to the wording. The results were 58 in favour; 0 against and 2 abstenons. o. The second amendment secon 28(vii) Annual General Meeng was then read and put for consideraon. There being no change the proposed amendment was put to a vote. The results were 51 in favour; 0 against and 8 abstenons. p. The third amendment secon 33 Rules, to include a nominaon commiee was read out and put for consideraon. Mr. David Gibson pointed out a typographical error and said the word should be for and not fro as it appeared in the brochure. q. Mr. Anthony Livingston said this was a new concept to many members and asked for an explanaon of the purpose of a nominaon commiee. r. The President explained that it was oen dicult to get members to accept nominaons to the Board or a commiee. He added out that it was a task to even get members to aend their AGM. The purpose of the nominaon commiee would be to screen members wishing to serve and make recommendaons at the AGM for their elecon. Members would however sll retain their right to nominate persons for elecon at the AGM as well. s. Mr. Everton Callender asked that, as this was a new concept, if any persons would be exempt from consideraon to avoid self-nominaon. The President advised that the nominaon commiee would receive training and guidance and a policy document would be established. t. Mr. Anthony Livingston asked if there would be a form that members could apply to be on this commiee. u.
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There being no further discussion or changes to the proposed amendment, it was

then put to a vote. The results were 48 in favour; 0 against and 3 abstenons. v. The nal amendment was to renumber the bye-laws from secon 33 to the end to reect the new changes. The proposed amendment was put to a vote and the results were 38 in favour; 0 against and 2 abstenons. w. Mr. Clarence Lewis then asked if the proposed amendments to the bye-laws could be approved by a simple majority vote or if it should be by a specic percentage of the membership present. x. The President advised that only a majority vote was required to pass the amendments. Mr. Lewis noted that this was done on a previous occasion and the changes were not approved as the majority vote did not carry. y. The President asked the representave from the Ministry of Co Operave for claricaon. Ms. Angela Ramkissoon advised that a 3/4 majority was required to approve proposed amendments to the bye-laws. This would mean that at least 51 of the members present should vote yes on each amendment. Based on the results of the vong, the proposed amendments to secon 4 and secon 28 were carried. However, the proposed amendment to secon 33 would fail. Even though more persons voted in favour of the moon, it did not obtain the 3/4 majority. Ms. Ramkissoon advised that the moon could be re-presented at a later date, but not less than one month aer the AGM. z. Mr. Clarence Lewis stated that he expected the Board to have had this informaon available to the membership before vong was done. 10. 0 Board and Commiee Reports 10.1 Board of Directors Report The report was taken as read and the President asked for a moon to move for the adopon of the report. This was moved by Marc Paul and seconded by Beverly De Freitas. 10.2 Maers Arising a. Page 26, paragraph 1, aendance Mr. Anthony Livingston asked if the posion of Treasurer was now a salaried one, as the statement on line 4 seemed to infer such. He stated that any member could be elected as Treasurer and there is no guarantee that Mr. Merri would be re-elected to either the Board or the post when that me came. The President advised Mr. Livingstons point was noted. b. Page 28, real estate Mr. Livingston asked the cost of the second piece of land purchase by the credit union. The President advised the land was purchased for $400,000, and valued at $625,000. c. Mr. Everton Callender stated that a building plan had been presented some me ago and asked how the plan would look now and would it be returned to the membership for approval. He added that if no income is to be generated from the new building, then the cost of the mortgage payments would come from members. He stressed the importance of generang a revenue stream from the building to support the mortgage.
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d. The President advised that the construcon cost of the inial building would have been too high due to the basement parking. The new plan would see the rst piece of land levelled for parking and a cheaper structure erected. He added that the new plan would be brought back to members for consideraon and approval. He also noted Mr. Callenders concerns about the mortgage payments. e. Mr. Clarence Lewis asked how much was spent on the feasibility study for the previous building. The President advised that informaon was on page 70 in the nancial report $90,939. f. Page 28, membership Mr. Livingston quesoned why there was such a low number of rerees who are members and suggested there should be a drive to encourage them to join. It was noted that several rerees had passed away over the years. 10.3 Supervisory Commiee Report The report was taken as read and the President asked for a moon to move for the adopon of the report. This was moved by Shelly-Ann Joseph and seconded by Noel Grant. No maers were raised by the membership on this report. 10.4 Credit Commiee Report The report was taken as read and the President referred to the inclusion of an errata sheet detailing a breakdown of loans for the period. He then asked for a moon to move for the adopon of the report. This was moved by Olivia Bunche and seconded by Cachita Mitchell. 10.5 Maers Arising a. Page 35, delinquency Mr. Clarence Lewis drew reference to the magnitude of the delinquent loans porolio and quesoned reason for the signicant increase over a one-year period. He asked what was being done to reduce this gure. b. The President advised that there was one loan which exceeded $1M and legal acon was being taken to levy on that members shares, which currently stand at approximately $1M to apply it against the outstanding amount. He further advised that discussions were being held with the member and that this loan should be seled by June this year. c. Mr. Lewis asked about the maer that was currently at the Ministry for arbitraon. The President advised that a meeng was scheduled for April 16 with the relevant pares to resolve this maer. d. Mr. Lewis then asked what was being done to recover the other delinquent loans. The President advised that in a few cases it was proving dicult to get in touch with those members whose contact informaon was out of date. He added that the oce was working on these maers all the same. e. Mr. Everton Calender also expressed his concern at the increasing rate of delinquent loans, which in previous years stood at zero. He added that the credit union should consider, going forward, its level of exposure even with members who have signicant shareholdings. He said the credit union could be faced with a dangerous situaon if le unchecked.
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10.6 Educaon Commiee Report The report was taken as read and the President asked for a moon to move for the adopon of the report. This was moved by Fitzroy Phillip and seconded by Cachita Mitchell. 10.7 Maers Arising a. Mr. Clarence Lewis commended the educaon commiee for supplying detailed reports on its acvies. He said he felt vindicated from the previous AGM. b. The President also commended Mr. Marc Paul for developing and sustaining a Facebook page for the AGECU. 10.8 Financial Statements/Auditors Report a. Mr. Neil Alexander was invited to read the auditors report on behalf of PKF. There being no correcons or quesons arising from the report, Mr. Alexander thanked those who worked alongside the auditors for the period. A moon to accept the report was moved by Noel Grant and seconded by Keith Selby. b. Mr. Johann Merri, in his capacity as treasurer, gave an overview of the nancial statements, which were taken as read. He pointed to page 50 where it was noted an increase in the credit unions assets, which indicated posive growth. He added that the loan porolio also increased stated that 95% of the credit unions income was due to interest on loans which was also increased for the period. c. Mr. Merri noted two correcons on page 72 which omied the dividend percentage and value and asked members to delete the second sentence on rebates in Note 16. A moon to adopt the nancial report was then moved by Mr. Lance Garcia and seconded by Mr. Marc Paul. 10.9 Budgetary Proposals The President drew reference to the 2013 budget proposal on page 45. There being no correcons or quesons raised, a moon to adopt the budget proposal was moved by Mrs. Claudia Hunte and seconded by Mr. Lance Garcia. 11.0 Credenals Report It was noted that, at 4:57pm, there were 75 members present. 12.0 Resoluons 12.1 The resoluons noted on page 44 were placed before the membership by the President for acceptance. 12.2 Resoluon #1 dividends: seconded by Ms. Beverly De Freitas: 57 in favour; 0 against; 0 abstenons. 12.3 Resoluon #2 honorarium: seconded by Mrs. Claudia Hunte: 60 in favour; 0 against; 0 abstenons. 12.4 Resoluon #3 auditors: seconded by Mrs. Cachita Mitchell: 47 in favour; 3 against; 0 abstenons.
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13.0 Elecon of Ocers a. Ms. Cassieann George of the Ministry of Labour Cooperaves Division was invited to preside over the proceedings for vong of Ocers. b. Ms. George read out leers from Ms. Sharon Joseph and Ms. Dion Fraser who oered themselves for nominaon to the credit commiee. c. Supervisory Commiee Nominee Olivia Bunche Marilyn Smith Beverly De Freitas Dennis Brown Carson Chadee Leslie Wilson Elizabeth Huggins d. Credit Commiee Nominee Andrew Brown Alvin Sandy Marc Paul Evelyn Sco Sharon Ramsaran Sharon Joseph Dion Fraser Nominated By Lance Garcia Beverly De Freitas Cachita Mitchell Elizabeth Huggins Andrew Browne Anthony Livingston Codrington Plante Seconded By Dennis Brown Lambert George Codrington Plante Beverly De Freitas Marc Paul Terran Eligon No of Votes 59 55 53 51 40 34 34 Nominated By Beverly De Freitas Lambert George Elizabeth Huggins Fitzroy Phillip Dennis Brown Olivia Bunche Alvin Sandy Seconded By Lambert George Russell Wilson Albert Rojas Lambert George Andrew Browne Marc Paul Albert Rojas No of Votes 62 60 58 52 43 33 (1st alternate) 17 (2nd alternate)
As both Ms. Sharon Joseph and Ms. Dion Fraser received the same number of votes, and were not present at the meeng, it was agreed by the membership that, at the rst meeng of the credit commiee, it would be decided who would serve as rst and second alternate. e. Board of Directors Nominee Lambert George Sharon Ramsaran Terran Eligon Evelyn Sco Cachita Mitchell Anthony Livingston f.
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Nominated By Anthony Livingston Albert Rojas Lambert George Marc Paul Lambert George Beverly De Freitas
Seconded By Albert Rojas Lambert George Anthony Livingston Elizabeth Huggins Lance Garcia Johann Merri
No of Votes 62 42 38 38 35 (1st alternate) 33 (2nd alternate)
A moon to destroy the ballots aer vong was moved by Mr. Fitzroy Phillips and se39th Annual General Meeng
conded by Mr. Mario Clarke. This was unanimously agreed to by the members present. 14.0 Other Business a. The President invited Mr. Wayne Estrada of CUNA to introduce a new product being oered to members by that company called Life Savings Plus Insurance. Mr. Estrada began his presentaon by congratulang the members on a successful meeng and drew aenon to the point raised concerning the revenue earning potenal of the proposed new building. He also urged those members not already on the FIP plan to join as soon as possible. b. Mr. Anthony Livingston asked if there was intent to review the current FIP plan to include older children or even grandchildren. Mr. Estrada responded that members should urge their children to join a credit union and also the FIP plan. With the opening up of the AGECUs bond, this was now a possibility. c. Mr. Estrada then explained the purpose of the new product and some of the benets which members would have under that plan. He advised that the AGECU had put it as an opon for members on their dividend slip to contribute one small annual fee and that the credit union had negoated for an increased monthly payout over a shorter period of me for members beneciaries accessing the plan. d. Mr. Anthony Livingston asked how soon aer joining the plan would a members beneciary be able to access the benet aer death of the member. Mr. Estrada advised that, members with pre-exisng condions for illness should have been on the plan at least six (6) months prior to death. However, with accidental or unforeseen death, the benet could be eected immediately aer the member has signed up. He added that this new plan could be used as a tool for recruing new members to the credit union and ended by encouraging all to parcipate. e. The President thanked Mr. Estrada for his contribuons and reminded members of the opon on their dividend slips to join the plan. f. The President advised on a 10 week Saturday course on credit unionism starng on May 4th at the Cipriani Labour College and encouraged members to take part in the program. g. Ms. Ronda Betancourt expressed her disappointment that the moon to amend the bye-laws to include a provision for a nominaon commiee had failed to be carried. She stressed the importance of vong on all resoluons and members being aware and understanding the signicance of the rules governing same, so that me would not be wasted. Ms. Betancourt added that now the Board had the task of trying to call another meeng to reintroduce this proposal. h. Mr. Clarence Lewis said he had raised the issue of a lack of communicaon to rerees on maers relang to the credit union at the last AGM and again wanted to know what was being done about it. He had also asked about training of oce sta and performance appraisals for them, as well as succession planning. Mr. Lewis suggested that there seemed to be a plan to eliminate rerees from all commiees and that many of the members who no longer worked at Angostura did not know some of the Ocers.
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i. The President said a newsleer was published in October, in me for Credit Union month celebraons. He urged members to give the oce their email addresses if they had one and he reminded them about the new Facebook page. Mr. George added that training for sta and Board members was ongoing and there was a plan to introduce performance appraisals for Board and other commiee members soon. j. Mrs. Claudia Hunte drew the aenon to a new person sing at the head table who had not been formerly introduced to the members present as the new oce manager. She also wanted to publicly thank Ms. Jacqueline Clarkson for her years of service to the AGECU and welcomed the new manager. k. The President apologised for his lapse, saying it had been his intent to do so at the appropriate me. He also acknowledged the contribuons to the credit union over the years of Mr. David St. George who was due to rere from the company in June 2013. l. Ms. Olivia Bunche reminded members that anyone could be nominated on the oor for any oce, including rerees, so it was not correct to say that rerees were fading away as Mr. Lewis suggested. She added that he (Mr. Lewis) did not nominate any member for oce at this AGM. m. Mr. Clarence Lewis said that at the previous AGM he had been nominated for oce; however a note was circulated prior to the meeng, advising members not to vote for him. He stated that this note came from the head table. n. Mr. Anthony Livingston asked for a report from the Manager to be included in the AGM brochure. o. The President commended Ms. Natasha Ganpat for her assistance in designing the 2013 brochure and added that the prinng was done in-house. Mr. Anthony Livingston suggested that the yers and ckets for the annual charity party could also be printed internally to save on cost. However, the President noted the dierent type of prinng needs for the ckets and advised members that the cost of this and the yers were sponsored by Angostura. p. Ms. Shelly-Ann Joseph said this was the second occasion that the enre Board of Directors was not represented at the head table. She recommended that at the next AGM this should be reced. 15.0 Door Prizes a. Winners of the door prizes were: Johann Merri Roderick George Clarence Lewis Juanita Valenne b. The special guest door prize was won by Mr. Christopher McShine Community Care Credit Union.
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16.0 Vote of Thanks The vote of thanks was given by the Manager, Ms. Debra Solomon who included a special thank you to Ms. Ganpat for her assistance with the 2013 brochure and Mr. Paul for his assistance with the Facebook page. There being no further business, the meeng concluded at 6:20pm.
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ACROSS 1. rate and eciency of work 4. ask the bank to advance money 6. money paid for a loan 10. wealth of person or business 12. promise to repair or replace 13. amalgamaon of two companies 14. legal agreement 16. total sales of a company 17. share of prots paid to shareholders DOWN 2. proof of payment 3. put money into a company or business 5. money paid to owner of copyright or patent 7. part of the capital of a company 8. where shares are bought and sold 9. money lent 11. amount of money spent 14. neither cheque nor credit card 15. money returned
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Financial Year January December 2013 INTRODUCTION It is an honour and a privilege for the Board of Directors to report to you, our cherished members on our stewardship for the year 2013. This year was another challenging year for the Credit Union. At the end of 2012, the economy grew by a mere 0.2% and this trend connued into 2013. By the end of the rst quarter the economy grew to 1.6% and by the end of the last quarter no signicant growth was recorded. The low interest rate also connued throughout the nancial year due to high liquidity in the banking system. Though this situaon may have aected addional income we are pleased to report that despite the dicult nancial circumstances experienced in our country, we have once again achieved overall growth for the nancial year ending December 2013. The period January March 2013 the under menon members connued to serve in their caponed posion unl aer the AGM on April 6th 2013. Name Lambert George Wayne Mc Donald Albert Rojas Evelyn Sco Johann Merri David St George Cachita Mitchell Shelley Ann Joseph Lance Garcia Andrew Brown Mario Clarke Marc Paul Terran Eligon Yvonne Superville Posion President Vice President Secretary Asst. Secretary Treasurer Asst. Treasurer Member Member Member Member Member Member 1st Alternate 2nd Alternate Present 2 2 2 1 2 0 1 2 2 2 2 2 1 1 Excused 0 0 0 1 0 2 1 0 0 0 0 0 1 1 Absent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total 2 2 2 2 2 2 2 2 2 2 2 2 2 2
The rst meeng for the new term was held on April 16, 2013. Ms. Cassian George from the Ministry of Labour Small and Micro Enterprises Co-operave Division was in aendance to witness and conduct the elecons, which resulted in the under menoned posions. ATTENDANCE RECORDS During the period under review there were nine (9) Statutory Board meengs with the aendance as follows:
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Name Lambert George Wayne Mc Donald Albert Rojas Evelyn Sco Johann Merri David St George Terran Eligon Sharon Ramsaran Lance Garcia Andrew Brown Mario Clarke Marc Paul Cachita Mitchell Anthony Livingston
Posion President Vice President Secretary Asst. Secretary Treasurer Asst. Treasurer Member Member Member Member Member Member 1st Alternate 2nd Alternate
Present 7 7 8 4 7 6 6 8 7 7 6 7 7 8
Excused 2 2 1 5 2 3 3 1 2 2 3 2 2 1
Absent 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Total 9 9 9 9 9 9 9 9 9 9 9 9 9 9
During the period under review there were also eleven (11) Execuve meengs as follows: Name Lambert George Wayne Mc Donald Albert Rojas Evelyn Sco Johann Merri David St George Posion President Vice President Secretary Asst. Secretary Treasurer Asst. Treasurer Present 11 7 8 8 10 7 Excused 0 4 3 3 1 4 Absent 0 0 0 0 0 0 Total 11 11 11 11 11 11
INVESTMENT COMMITTEE The Credit Union connued to ulize the services of investment adviser Mr. Nigel Deosaran who along with the Execuve sought to eecvely manage the organizaons investment porolio, including our members xed deposit where we persist in maintaining very compeve rates. We would like to encourage our members to come and speak to us about their investment needs especially those who are planning to rere from Angostura Limited. TRAINING AND DEVELOPMENT The Strategic Plan 2010-2015 was reviewed during an all Commiee Meeng, including the Board and members of Sta, held on Saturday 18th January 2014. It was agreed by all members that our Vision and Mission statements were sll relevant, while overall nancial and membership growth was achieved. We agreed that our major weakness is the challenges related to expansion of our oces. This is crical as we seek to extend membership to our spouses and children; we also need to focus on our net savers. Sta aended a one-day training in June
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2013 entled Communicaon Excellence and was facilitated by Mr. Jerome Chambers of Going Global Ltd. Board members parcipated in performance evaluaon training; this will be connuous excises to develop ourselves in order to beer serve the organizaon. REAL ESTATE Members may recall the concerns expressed at our last AGM about the high cost of building our oces at this me. Another opportunity was given to us to purchase the building at 218 Eastern Main Road Lavenlle, which is opposite Trinity Avenue. The searches were completed, and while the property is free of all encumbrances, the releases are sll outstanding. We are presently working on this, with the expectaon of compleng this transacon by April, with the connued guidance and assistance of our Creator. MEMBERSHIP: At 31st December 2013 membership in our Credit Union was as follows: Permanent Employees Casual/Temporary AGECU Sta Rerees Past employees 307 49 2 69 72
MAJOR ACHIEVEMENTS The organizaon was able to successfully achieve the approval from Co-operave Division to have members spouse and children become members of the Credit Union. We are currently revising our applicaon form and examining all other administrave requirements for its implementaon. Members of our Legal, Insurance and Recoveries Sub-Commiee held discussions with Mr Wayne Estrada from CUNA on our Loan Protecon Rates (LPR) on Thursday 19 December 2013. Once we extend membership to spouse and children we ancipate that our membership would double and as such our monthly Loan Protecon (LP) premium will also increase. The Board has taken a decision that eecve 1st April 2014 members will pay these rates which is reected on our dividend noces. We decided to increase our Life Saving Coverage for our members to Sixty Thousand ($60,000.00) which your Credit Union will connue to pay on your behalf. CONDOLENCES The Board of Directors, members of all commiees and Sta, and Members of our Credit Union, join together to convey our deepest sympathies to the families of members who passed and to our members who have lost loved ones during the past year. CONCLUSION In conclusion the Board of Directors would like to thank Mrs. Gillian Mitchell who resigned on November 10, 2013 for her services to our Credit Union. We welcome Ms. Hazel Thomas as our new member of sta eecve 8th January 2014. It has been a privilege to have served you. The diligence executed was subscribed through the values and principles to promote exceponal governance while aligning our iniaves to the strategic goals set out in the Strategic Plan.
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The organizaon achieved another award in 2013 for best nancial (P.E.A.R.L.S.) category which seems to be the norm since. Though the year has been challenging, it was evident that we cannot go about our business as usual. Despite the economic climate in our country and what is going on in the global market we must focus on future growth and development so that we are not le behind. We must be very selecve as we are faced with a world of shrinking demands, smaller prot margins and scarce resources. This in itself means our partnership with you our valued members becomes even more crical. Our major goal is to place emphasis on the delivery of superior products and services. So much so, that we aim to commence renovaons to our new headquarters during 2014. The Board of Directors is commied to this phenomenon as we strive for not only success of the organizaon but educang the sta and the membership alike. We praise and thank God for being in charge as he connues to pour down his blessings upon our Credit. We thank you, our members for giving us the opportunity to serve you and the organisaon over the last term. We say special thanks to the Manager of the Credit Union Ms. Debra Solomon and her sta for their valuable contribuon.
May god connue to bless you all!
Wayne Mc Donald Vice President
.... Albert Rojas Secretary
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The Supervisory Commiee hereby presents to the Annual General Meeng, its Report on the aairs of the Angostura Group Employees Credit Union Co-operaon Society Ltd. (AGECU) for the period 2013-2014. STRUCTURE OF THE COMMITTEE On April 16th, 2013, the Commiee held its rst meeng, in accordance with Bye-law 38 (c). Mr Carson Chadee and Ms Marilyn Smith were elected as the Chairperson and Secretary respecvelly.On the 29th June, 2013, Ms Marilyn Smith (secretary) resigned from the Supervisory Commiee , a special meeng to elect a Secretary was held on 2nd July,2013. Leslie Ann Wilson (rst alternate) was declared a Full member and Olivia Bunche was nominated secretary unopposed. The Commiee is as follows:

Mr Carson Chadee - Chairperson Ms Olivia Bunche Secretary Ms Beverly De Freitas - Member Mr Dennis Brown - Member Ms Leslie Ann Wilson Member (was 1st Alternate) Mr Elizabeth Huggins - 2nd Alternate Ms Marilyn Smith - Secretary (Resigned)
During the year under review, the Supervisory Commiee aended all training session and examined the nancial aairs of the Credit Union and paid special aenon to the organizaons internal controls. A summary of several areas that were examined are as follows: LOANS The loan porolio represents the largest single source of income for AGECU, therefore its careful management is imperave in order to ensure the overall risks to Members are kept at a minimum. The Commiee dedicated signicant me in auding loan applicaons and submied monthly reports on its ndings to the Treasurer who dealt with the issues accordingly. The Commiee was generally sased that the policies and procedures were adhered to and internal controls were maintained. FINANCIAL STATEMENTS Financial Statements essenally reveal to the Members how the Credit Union is performing at the end of the reporng period. The informaon therefore must be relevant, accurate, complete and must present fairly in all material aspects the nancial posion of the Credit Union. A review of the nancial statements shows that AGECU is operang progressively and well. AGECU and the corresponding PEARLS raos are within Industry Standards. DELINQUENCY Delinquency reects a Members inability to service his/her loan commitment. The Commiee acknowledges that high delinquency loans would result in a negave impact on the Credit Unions performance. The Commiee is sased that the Credit Union is vigorously addressing the delinquency issue and was able to achieve 72% reducon from the prior year gure of 1,874,702.54 TT Dollars to $668,594.21 TT Dollars. The following is a short summary of the Commiees and the Board of Directors during the 2013-2014 periods.
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CREDIT COMMITTEE It is the responsibility of the Credit Commiee to safeguard the funds of AGECU, by making loans repayable and to ensure that the credit union performs the greatest loan service and operates in the best pracces and the highest degree of solvency. Special Loans were carefully monitored during this period to ensure members did not exceed their debt service rao. For the period 2013-2014 the Supervisory Commiee is sased with the performance of the Credit Commiee and acknowledges the reducon of the Net Savers vs. Net Borrowers, when comparing 2010 to 2013 for the same period and looks forward to a connuous trend of an increase in Net borrowers. EDUCATION COMMITTEE The Educaon Commiee presented a budget with detail capon of all acivies calendared for the said period. Highlighted below are just a few of the events/acvies that were successfully spearheaded by this Commiee:

A game of Bingo was used for social gathering. This generated much excitement amongst members. The Supervisory Commiee wishes to encourage more social acvates in the future. Members Kids day was another social acvity iniave used to aract our younger members which was complimented nicely with our Annual Children Christmas party. The All Commiee retreat in Tobago, to evaluate and amend AGECUs Oce Procedure Manual. The All Commiee Meeng, to review AGECUs Strategic Plan for the period 2010-2015.
BOARD OF DIRECTORS Several reports to the Board of Directors were Issues and ndings were highlighted and discussed. Recommendaons were made in relaon to the Credit Unions overall objecves thus improving the Credit Unions internal controls, eciency, and eecveness and reducing its overall risks. These recommendaons were accepted and implemented, an example of such is the soon to be installed Suggeson/Complaints Box in the credit union oce; this would further assist the Supervisory Commiee to address the needs of its shareholder. The Board of Directors engaged in reinstang a Human Resource Sub-Commiee, which is chaired by the Treasurer and other sing members of the board. This sub-commiee is to assist with the proper management of AGECUs oce sta and the soon to be implemented Oce Procedures Manual. The proposed Credit Union Bill 2011 which is yet to be enacted has introduced several instrucve requirements for Credit Unions. It carries harsh penales if not complied with the Supervisory Commiee acknowledge iniaves of establishing a Nominaon commiee which is in compliance with the Credit Union Bill. The Nominaon commiee would assist in the reducon of Commiee Ocers serving on mulple commiees and promote transparency. Loan Premiums a cost that is absorbed by the credit union is now being charged to members. By this acon the Board of Directors has reduce expenses. The Supervisory Commiee recognises this as a proacve move in retaining prot. The Board of Directors took the decision to purchase the two-story building property adjacent Angostura Limited at the cost of 1.3 million TT Dollars. The Supervisory Commiee favours this acon as it eliminates the cost and construcon me which was associated with the development of the two parcels of land that were previously purchased.
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OFFICE STAFF The Supervisory Commiee expresses gratude towards the ever accommodave oce sta at AGECU. They manage to operate eecvely despite the sudden resignaon of the Administrave Assistant II Mrs Gillian Greigg- Mitchell in the last quarter of 2013. The experse of Mr David St George was instated so as to absorb some dues/ funcons that could not be addressed by the reduced oce sta. On the 8th, January 2014 AGECU employed the services of Ms Hazel Thomas who is currently on 3 months probaon. CONCLUSION In closing the Supervisory Commiee would also challenge members to take acve ownership of our credit union. Over the last year we note a lack of communicaon with members about service standards or the services available. There has also been lile aempt to engage the membership to idenfy what they expect or need from the credit union. The success of our credit union relies on volunteer eort. We acknowledge the commitment from the Board of Directors and other Commiees, who give unselshly of their free me and the sta to provide a service for its members. We can improve our credit union in so many ways. We face an uncertain nancial future and we believe our co-operave can make a signicant dierence to the lives of so many members. With your ideas and your help we could together connue to make AGECU a premier nical instuon. It has been our pleasure to act on your behalf and we trust that you will be sased with our stewardship of your interests. SUPERVISORY COMMITTEE MEETINGS During the period January December 2013 the Commiee recorded thirteen (13) meengs. Aendance is as follows: January March (Previous Term) Name Carson Chadee Olivia Bunche Beverly De Freitas Dennis Browne Marilyn Smith Elizabeth Huggins Savitri Balkissoon Posion Chairperson Secretary Member Member Member Alternate Alternate Present 4 3 4 1 4 4 3 Excused 0 1 0 3 0 0 1 Absent 0 0 0 0 0 0 0 Total 4 4 4 4 4 4 4
March - December (Current Term) Name Carson Chadee Olivia Bunche Beverly De Freitas Dennis Browne Marilyn Smith Leslie Ann Wilson Elizabeth Huggins
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Posion Chairperson Secretary Member Member Member Member Alternate
Present 9 9 9 9 2 6 7
Excused 0 0 0 0 0 3 2
Absent 0 0 0 0 0 0 0
Total 9 9 9 9 2 9 9
________________________ CARSON CHADEE Chairperson
_______________________ OLIVA BUNCHE Secretary
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Financial Year January December 2013 Credit Commiee aendance January December 2013 Previous Term 7th January 2nd April Name Mr. Andrew Brown Ms. Evelyn Sco Mr. Alvin Sandy Mr. Marc Paul Mr. Troy Barrow Posion Chairman Secretary Member Member Member Present 10 7 10 10 7 Absent 1 2 1 Excused 2 4 0 2 4
Total No. of Aendance Total No. of Meengs held
10 7 10 10 7
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Current Term 9th April 31st December Name Mr. Andrew Brown Ms. Evelyn Sco Mr. Marc Paul Mr. Alvin Sandy Ms. Sharon Ramsaran Ms. Sharon Joseph Mr. Dionne Fraser Posion Chairman Secretary Member Member Member Alternate Alternate Present 34 27 34 36 34 15 16 Absent 3 3 3 2 3 19 12 Excused 4 11 4 3 4 7 13
Total No. of Aendance
Total No. of Meengs held
34 27 34 36 34 15 16
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The inaugural meeng of the term 2013/2014 took place in the conference room of the credit unions oce on 9th April 2013 to elect a chairman and a secretary. The results were as follows: Andrew Brown Chairman Evelyn Sco Secretary Alvin Sandy Member Marc Paul Member Sharon Ramsaran Member Sharon Joseph 1st Alternate Dionne Fraser 2nd Alternate LOAN PORTFOLIO This term proved to be a challenge to the credit commiee, the task was to realign all the lending policy acvies to the new governing policy being proposed by the central bank. We have introduced and implemented changes to our new loan policy as well as exisng loan policies. These included the Pillow to Pitch loan, Cash and Investments loan, Vehicle Import loan and lending criteria for 2013 Special Loans. In the last AGM report there was an error reported for the breakdown of loans for the 2012 period. The total loans reported as 469 loans amounng to a value of $10,694,600.77. The correct value that should have been reported was 461 loans amounng to a value of $10,297,711.75. This error was due to the CUMME soware carrying forward loans from the 2011 period into the 2012 period, this problem has since been corrected and the current summary table shown has the correct values for the 2013/2012 comparison. We do sincerely apol32
ogise for this mistake and we will connue to be vigilant with our reporng going forward. During the 2013 period under review a total of 449 loans were assessed and approved amounng to $10,351,407.30. From loan breakdown table it can be seen that the number of loans approved decreased from the previous term from 461 to 449 a decrease of 12 loans but there was an increase in the amount of money dispersed which amounts to $53,695.55. The next two tables are a quarterly breakdown of the loans taken. As seen in the third quarter there was a signicant dip in the average loans taken for the 2013 period. In an eort to increase the average loans in the fourth quarter acve eorts were made in the legal, special Christmas and special loans category. The eorts made can be seen in the fourth quarter being above the usual 20-25 thousand range shown per quarter. As the credit commiee connues to strive for the catering of our membership there were several loans not approved due to the members nancial standing, based on our revised loan policy and in keeping with good nancial pracces.
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QUARTERLY ASSESSMENT OF LOANS FOR 2013 VS. 2012

2013 No. of Loans Q1 Q2 Q3 Q4 Total 75 114 143 117 449 $ Value of Loans $1,776,869.91 $2,382,198.71 $2,198,819.67 $3,993,519.01 $10,351,407.30 2012 No. of Loans 84 133 146 98 461 $ Value of Loans $2,454,898.00 $1,977,776.66 $3,138,296.23 $2,726,740.86 $10,297,711.75
Average Loans Taken Per Quarter

2013 Q1 Q2 Q3 Q4 AVG $23,691.60 $20,896.48 $15,376.36 $34,132.64 $23,524.27 2012 $29,224.98 $14,870.50 $21,495.18 $27,823.89 $23,353.64
DELINQUENCY Our delinquency porolio stands at 15 loans valuing $759,327.04. Due to vigorous and persistent eorts our delinquency porolio showed a signicant decrease from the previous period which had amounted to a total of $2,360,115.75. We will connue to make every eort to ensure mely payment of loans by members and to retrieve any assets owed to the society by delinquent members. EVALUATION There was a decrease in nine of the eighteen categories of loans between 2013 and 2012. Despite this decrease and partly through the eorts exerted to revamp and launch new products the credit union saw a small growth from the previous term. We will connue to analyse the trends and paerns of our membership borrowing habits and needs, revamp exisng loans and develop new packages in order to further grow the loan porolio. NEW SERVICES Only two special loans were introduced by the credit union during this nancial period. These were the Compeon Loan made available to our rst ever compeon winners and the spin o Triple Ten Loan made available to the general membership. This compeon was introduced to smulate the minds of the membership about the rich history and benecial policies of the AGECU. Parcular menon should be made to the repackaged special Christmas loan which was called the Double Up Christmas Loan and the new Export/Import vehicle policy for our members who would like to bring in their own vehicles through nancing from the credit union.
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CONCLUSION We would like to thank the membership for allowing us the privilege of oering our services during the past nancial period of the credit union. We take this opportunity to thank the oce sta and Board of Directors for their ongoing assistance and guidance as we push the boundaries to develop new and innovave ways of being the premier nancial instuon catering to the needs of our members. We have laid the foundaon for the incoming Commiee to connue the drive and commitment to steer our growth within the path of the new legislaons that will secure our perpetual existence.
Yours co-operavely
________________ Andrew Brown Chairperson
_________________ Evelyn Sco Secretary
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Annual General Meeng Report Year Ending December 31st 2013 THE COMMITTEE The rst monthly meeng of the Educaon Commiee for this period was held on Tuesday 14th May, 2013 at the Credit Union oce. At this meeng the elecon of a new Chairman and Secretary took place. The commiee is as follows: Sharon Joseph Chairperson Ronda Betancourt Secretary Michelle Foreman Member Brent Romeo Member Codrington Plante Member Rondell Lewis Member Alvin Sandy Member ACTIVITIES FOR 2013 Members Kids Camp Two one-day camps were held for members children on Saturday, July 27 and Saturday, August 10 in the Recreaon Room at the House of Angostura. Approximately 43 children were registered for the camp whose acvies included cra, cooking, zumba and interacve games. Feedback from the camp was very posive and it was recommended to have another in 2014 but for a longer period. Lindley Abdullah S.E.A. Awards Eleven (11) members children who sat the Secondary Entrance Assessment Examinaon in 2013 were presented with Credit Union share cercates at a brief ceremony held on Wednesday, September 18. Congratulaons go out to the following members and children who were successful in the S.E.A. Examinaon: Child Joshua Calisa Isaiah Tyrell Asha Kirsha Ariel Jhared Kristoph Troy Leshem Parent Ann Marie Bynoe Keston Blackman Darlene Coombs Isabella Wade David James Kirk Taylor Ronda Betancourt Ricky Douglas Ronald Braithwaite Fitzroy Daniel Gregory Carty
All Commiee Retreat This year, ocers aended an All Commiee Retreat at Crown Point Hotel, Tobago the weekend of October 25th to 27th. The main purpose of which was to review, discuss and make amendments to the Oce Policy Manual which would be the governing document for the AGECU. The policy document in its nal revision stages and will be implemented soon.
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Children's Christmas Party The annual Christmas party for members' children was held on Sunday, December 01. Approximately 250 children aended the party with their parents or guardians where they indulged in face painng or put on temporary taoos, made greeng cards to Santa and played video games. The highlight of the aernoon was of course Santa Claus, who handed out presents to the babies and younger children, much to their delight. A breakdown of the expenses and revenue for this event is detailed below. As usual, the revenue generated from the party was used to oset some of its expenses. Expenditure Toys Childrens snack boxes Party bags (items & bags) Treats (lollies, juices, etc.) DJ Entertainment Face painng/Taoo Santa Claus (shares) Setup/clean up Miscellaneous Adult tea boxes TOTAL Revenue Registraon fee/adult tea boxes Ne Expenditure Cost $38,432.67 $ 9,000.00 $ 2,377.87 $ 3,464.97 $ 2,000.00 $ 9,525.00 $ 1,350.00 $ 1,000.00 $ 2,050.00 $ 1,935.00 $ 3,600.00 $74,785.51
$16,400.00
$58,385.51
Other Acvies The educaon commiee held a Bingo in July in the Recreaon Room. The aernoon was an enjoyable one and had many winners, including Beverly De Freitas who won two prizes, and Brian Jack who won the grand prize of a deluxe alcohol hamper courtesy the Export Department of Angostura. Unfortunately, the annual Charity Fund Raising party had to be deferred in 2013 due to the unavailability of a boat to host the cruise at the desired me. The cruise will be held aer Easter on a date to be advised. The Ocers Christmas dinner was not held in 2013 in favour of aending the weekend allcommiee retreat. In house workshops were conducted during the year for all ocers, one of which was to review, discuss and update the AGECUs Strategic Plan.
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Congratulaons to the following members on the birth of their children during the period: Name of Member Stephen Bowen Ricky Douglas Kyron John Carson Chadee Neil Daniel Marlon Farmer Name of Child Elijah Shemar Ethan Lemuel Jonathan Kyron Nicholas Jr. Ethan Dinesh Jonathan Malachi
Condolences We wish to extend condolences to the family and friends of the following members who passed away during the year and to those members who lost loved ones: Patricia Hutchinson Brian Sue Robin Rampaul Brian was a great friend of the Angostura Group Employees Credit Union where he and assisted greatly in the early stages of its development. Patricia supported all acvies held by the AGECU and was present for most. Conclusion The Educaon Commiee would like to thank the Board of Directors for the opportunity to serve the AGECU in its capacity and extends its appreciaon to the oce sta for their connued support and assistance.
Respecully submied,
__________________ Sharon Joseph Chairperson
______________________ Ronda Betancourt Secretary
ATTENDANCE SCHEDULE 2013 There were eight (8) meengs held during the period January December 2013. PRESENT 0 8 8 4 6 8 6 2 EXCUSED 1 0 0 1 0 0 1 1 ABSENT 0 0 0 3 2 0 0 0
Geetanjalie Gobin (previous term) Sharon Joseph Ronda Betancourt Alvin Sandy Rondell Lewis Codrington Plante Michelle Foreman Dale Garraway replaced Brent Romeo aer his resignaon in September 2013
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DIVIDENDS & INTEREST REBATE Whereas the Board of Directors has connued to manage the Societys resources in an ecient and eecve manner; and Whereas the Society is commied to providing adequate facilies and services for its members; and Whereas it is necessary to keep pace with globalizaon, and the technological and managerial changes taking place in the nancial services environment; and Whereas the Board of Directors is determined to provide members with a reasonable return on their investment; and Whereas the Angostura Group Employees Credit Union Co-operave Society Ltd. has realised a Net Surplus of $2,350,268 for the nancial year ended 31st December 2013. BE IT RESOLVED THAT: A dividend of 5%, to be paid in cash, be declared on average shareholding for 2013
MAXIMUM LIABILITY Whereas the authority for determining maximum liability is stated in Regulaon 14 of the Co-operave Sociees Act Chapter 81:03. BE IT RESOLVED THAT: The maximum liability of Angostura Group Employees Credit Union Co-operave Society Limited shall be $50,000,000.00 for the period January 1st to December 31st 2014.
HONORARIUM Whereas the Angostura Group Employees Credit Union Co-operave Society Ltd. has realized a Net Surplus of $2,350,268 despite contracng Interest Rates; and Whereas the duciary responsibilies of the Management Team connue to increase signicantly; and Whereas the Management Team has performed its dues with commitment, eciency and prudence; BE IT RESOLVED THAT: An Honorarium of $219,000 be declared and divided among the Management Team which consists of 30 Members.
AUDITORS Whereas the Board is sased with the quality of work performed by our present Auditors: PKF Chartered Accountants and Business Advisors . BE IT RESOLVED THAT: The Firm PKF Chartered Accountants and Business Advisors is retained as Auditors of the Society for the next nancial year.
39
AGECU PROPOSED BUDGET FOR 2014

$ $
INCOME
Loan Interest Income from Deposits Income from Other Investments Other Income (FIP, Entrace Fees etc) TOTAL INCOME 4,213,280 67,000 7,100 22,000 4,309,380
EXPENSES
Governance Expenses Annual General Meeng Board & Commiee Expenses Honoraria Administrave Expenses Banking & Financial Fees IT & Data Processing Depreciaon Insurance - Fidelity, All Risk, DEGL Property Maintenance Oce Operang Expenses Prinng & Staonery Telephone Personnel Expenses Salaries Employee Welfare Employers' Contribuon - NIS & Pension Medical & Life Insurance Legal & Professional Fees Audit & Accounng Fees Legal & Advisory Fees Markeng & Promoonal Expenses Educaon Expenses Markeng Expenses Co-Op Celebraon Acvies Donaons Other Expenses CUNA Premiums Interest on Members Deposits League Dues Stabilizaon Fund TOTAL EXPENDITURE 47,500 70,000 219,000 336,500 3,960 34,500 17,500 15,000 6,000 38,740 16,460 7,200 139,360 310,620 21,240 77,460 12,500 421,820 100,000 52,000 152,000 95,500 22,000 50,350 20,000 187,850 180,000 150,000 4,388 5,000 339,388 1,576,918
PROJECTED NET INCOME FOR THE YEAR

40
2,732,462
AGECU PROPOSED BUDGET FOR 2014
Capital Budget 2014/2015

Building Acquision Building Renovaons - Roof replacement - Electrical rewiring - Tree removal Furniture & Fings - 1 Computer - 1 Laser printer - 3 UPS units 1,300,000.00 1,300,000.00 280,000.00 120,000.00 35,000.00 435,000.00 4,500.00 1,000.00 1,500.00 7,000.00 Total 1,742,000
41
ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED FINANCIAL STATEMENTS 31 DECEMBER 2013
ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED INDEX
Page Statement of Management Responsibilities Independent Auditors Report Statement of Financial Position Statement of Comprehensive Income Statement of Appropriated Funds and Undivided Earnings Statement of Cash Flows Notes to the Financial Statements 1 2 3 4 5-6 7 8 36
1.
STATEMENT OF MANAGEMENT RESPONSIBILITIES
2.
INDEPENDENT AUDITORS' REPORT
3. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED STATEMENT OF FINANCIAL POSITION ASSETS Notes Current Assets: Cash and cash equivalent Accounts receivable and prepayments Total Current Assets Non-Current Assets: Investments Loans to members Fixed assets Total Non-Current Assets Total Assets 7 8 9 5,555,574 35,270,412 682,630 41,508,616 $ 46,439,860 LIABILITIES AND MEMBERS EQUITY Liabilities: Accounts payable and accruals Members deposits Members shares (non-permanent) Total Liabilities Members Equity: Reserve fund Education fund Building fund Investment re-measurement reserve Undivided earnings Total Members Equity Total Liabilities and Members Equity 12 13 14 15 2,748,628 107,568 1,096,565 527,195 2,108,292 6,588,248 $ 46,439,860 2,513,491 113,911 979,052 373,176 1,772,585 5,752,215 $ 42,230,148 10 11 $ 464,762 7,070,775 32,316,075 $ 308,939 6,405,518 29,763,476 36,477,933 5,948,754 32,908,069 693,134 39,549,957 $ 42,230,148 5 6 $ 2,884,932 2,046,312 4,931,244 $ 751,396 1,928,795 2,680,191 2013 31 December 2012
39,851,612
These financial statements were approved by the Board of Directors and authorised for issue on 10 February 2014 and signed on their behalf by:
President
Treasurer
(for) Chairman Supervisory Committee
(The accompanying notes form part of these financial statements)
4. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED STATEMENT OF COMPREHENSIVE INCOME
Notes Income: Loan interest Income from deposits Income from other investments Gain on foreign exchange Entrance fees Total Income Expenditure: Administrative expenses Board and committee expenses Finance cost Personnel costs Total Expenditure Net surplus for the year Other comprehensive income: Unrealised gain on available-for-sale financial assets Total Comprehensive Income for the year $ 19 20 $
For the year ended 31 December 2013 2012 4,027,934 159,036 68,981 2,315 110 4,258,376 $ 3,334,346 155,103 69,806 8,636 375 3,568,266
1,517,212 83,039 2,553 305,304 1,908,108 2,350,268
1,414,472 72,292 467 342,826 1,830,057 1,738,209
154,019 2,504,287 $
108,070 1,846,279
5. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED STATEMENT OF APPROPRIATED FUNDS AND UNDIVIDED EARNINGS For the year ended 31 December 2013
Reserve Fund Balance as at 1 January 2013 Total comprehensive income for the year Appropriations: (i) (ii) 10% to the Reserve Fund 5% to the Education Fund 5% to the Building Fund 2,748,518 Adjustments:Entrance fees Education expenses 2012 dividends and interest rebate paid Balance as at 31 December 2013 $2,748,628 110
Education Fund $
Building Fund 979,052
Investment Re-measurement Reserve $
Undivided Earnings
Total $ 5,752,215
$ 2,513,491 $ 113,911
373,176 $ 1,772,585
154,019
2,350,268
2,504,287
235,027 117,513 231,424 117,513 1,096,565 527,195
(235,027) (117,513) (117,513) 3,652,800
8,256,502
(iii)
(110) (123,856) $ 107,568 $ 1,096,565 $ 123,856 (1,668,254)
(1,668,254) $ 6,588,248
527,195 $ 2,108,292
6. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED STATEMENT OF APPROPRIATED FUNDS AND UNDIVIDED EARNINGS (CONTD) For the year ended 31 December 2013
Reserve Fund Balance as at 1 January 2012 Total comprehensive income for the year Appropriations: (iv) (v) 10% to the Reserve Fund 5% to the Education Fund 5% to the Building Fund 2,513,116 Adjustments:Entrance fees Education expenses 2011 dividends and interest rebate paid Balance as at 31 December 2012 $2,513,491 375
Education Fund 87,202 $
Building Fund 892,142
Investment Re-measurement Reserve $
Undivided Earnings
Total $ 5,468,248
$ 2,339,295 $
265,106 $ 1,884,503
108,070
1,738,209
1,846,279
173,821 86,910 174,112 86,910 979,052 373,176
(173,821) (86,910) (86,910) 3,275,071 7,314,527
(vi)
(375) (60,201) $ 113,911 $ 979,052 $ 60,201 (1,562,312) (1,562,312) $ 5,752,215
373,176 $ 1,772,585
7. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED STATEMENT OF CASH FLOWS For the year ended 31 December 2013 2012 Cash flows from operating activities: Net surplus for the year Adjustment for: Depreciation Loan loss expense Operating profit before working capital changes Net change in accounts receivable and prepayments Net change in accounts payable and accruals Net cash provided by operating activities Cash flows from investing activities: Net change in loans to members Net change in investments Net change in fixed assets Net cash used in investing activities Cash flows from financing activities: Increase in members shares Net change in members deposits Dividends and interest rebate Net cash provided by financing activities Net change in cash resources Cash resources, beginning of year Cash resources, end of year Represented by: Cash and cash equivalent $ 2,884,932 $ 751,396 2,552,599 665,257 (1,668,254) 1,549,602 2,133,536 751,396 $ 2,884,932 $ 2,442,481 (579,841) (1,562,312) 300,328 (1,749,504) 2,500,900 751,396 (2,462,343) 547,199 (5,292) (1,920,436) (4,247,240) 1,224,526 (443,109) (3,465,823) 15,796 100,000 2,466,064 (117,517) 155,823 2,504,370 12,481 1,750,690 (440,685) 105,986 1,415,991 $ 2,350,268 $ 1,738,209
8. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 1. Registration and Objectives: The Society is registered under the Co-operative Societies Act Ch: 81: 03. Its objectives are to promote the economic welfare of its members, encouraging the spirit and practice of thrift, selfhelp and co-operation and to promote the development of co-operative ideas. Its registered office is situated at Angostura Limited, Corner Eastern Main Road and Trinity Avenue Laventille. The Societys Bye-Laws were amended in 2000. The name of the Society was changed from Trinidad Distillers Credit Union Co-operative Society Limited to Angostura Group Employees Credit Union Co-operative Society Limited under the amended Bye-Laws. These amended ByeLaws were approved by the Commissioner for Co-operative Development on 13 November 2000. 2. Significant Accounting Policies: a) Basis of financial statements preparation These financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), and are stated in Trinidad and Tobago dollars, rounded to the nearest whole dollar. These financial statements are stated on the historical cost basis, except for the measurement at fair value of available-for-sale investments and certain other financial instruments. b) Use of estimates The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires management to exercise its judgment in the process of applying the Societys accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the reporting period. Although these estimates are based on managements best knowledge of current events and actions, actual results may ultimately differ from those estimates. c) New Accounting Standards and Interpretations i) The Society has not applied the following revised standard, which became effective during the current year, as it does not apply to the activities of the Society: IAS 1 Presentation of Financial Statements Amendments to revise the way other comprehensive income is presented (effective for accounting periods beginning on or after 1 July 2012). Financial Instruments: Disclosure Amendment on the disclosure of offsetting financial assets and financial liabilities (effective for accounting periods beginning on or after 1 January 2013).
IFRS 7
9. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): c) New Accounting Standards and Interpretations (contd) IFRS 13 Fair Value Measurement (effective for accounting periods beginning on or after 1 January 2013).
ii) The Society has not applied the following standards, amendments and interpretations that became effective during the current year, as they do not apply to the activities of the Society: IAS 16 Property, Plant and Equipment Amendment re: classification of servicing equipment (effective for accounting periods beginning on or after 1 January 2013). Employee Benefits Amended standard resulting from the PostEmployment Benefits and Termination Benefits projects (effective for accounting periods beginning on or after 1 January 2013). Consolidated and Separate Financial Statements Reissued as IAS 27 Separate Financial Statements (effective for accounting periods beginning on or after 1 January 2013). Investments in Associates Reissued as IAS 28 Investments in Associates and Joint Ventures (effective for accounting periods beginning on or after 1 January 2013). Interim Financial Reporting Amendment on the clarification of interim financial reporting on segment information (effective for accounting periods beginning on or after 1 January 2013). Consolidated Financial Statements (effective for accounting periods beginning on or after 1 January 2013). Consolidated Financial Statements Amendment to the transition guidance on consolidated financial statements, joint arrangements and disclosures of interest in other entities (effective for accounting periods beginning on or after 1 January 2013). Joint Arrangements (effective for accounting periods beginning on or after 1 January 2013). Disclosure of Interest in Other Entities (effective for accounting periods beginning on or after 1 January 2013).
IAS 19
IAS 27
IAS 28
IAS 34
IFRS 10
IFRS 10
IFRS 11 IFRS 12
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (effective for accounting periods beginning on or after 1 January 2013).
10. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): c) New Accounting Standards and Interpretations (contd) iii) The Society has not applied the following standards, revised standards and interpretations that have been issued but are not yet effective as they either do not apply to the activities of the Society or have no material impact on its financial statements, except for IFRS 9 Financial Instruments: IFRS 1 First-time Adoption of International Financial Reporting Standards Amendment on borrowing costs relating to qualifying assets (effective for accounting periods beginning on or after 1 January 2013). First-time Adoption of International Financial Reporting Standards Government Loans (effective for accounting periods beginning on or after 1 January 2013). Share-based payment Amendment to the definition of vesting condition (effective for accounting periods beginning on or after 1 July 2014). Business Combinations Amendment re: accounting for a contingent consideration in a business combination (effective for accounting periods beginning on or after 1 July 2014). Business Combinations Amendment on the scope of exception for joint ventures (effective for accounting periods beginning on or after 1 July 2014). Operating Segments Amendment re: disclosure of the aggregation of operating segments and the reconciliation of assets (effective for accounting periods beginning on or after 1 July 2014). Financial Instruments: Classification and Measurement (effective for accounting periods beginning on or after 1 January 2015). Financial Instruments: Accounting for Financial Liabilities and Derecognition (effective for accounting periods beginning on or after 1 January 2015). Consolidated Financial Statements Amendment to measure at fair value eligible investment entities (effective for accounting periods beginning on or after 1 January 2014). Joint Arrangements (effective for accounting periods beginning on or after 1 January 2013). Disclosure of Interest in Other Entities (effective for accounting periods beginning on or after 1 January 2013).
IFRS 1
IFRS 2
IFRS 3
IFRS 3
IFRS 8
IFRS 9
IFRS 9
IFRS 10
IFRS 11 IFRS 12
11. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): c) New Accounting Standards and Interpretations (contd) IFRS 13 Fair Value Measurement Amendment re: clarification of portfolio exception (effective for periods beginning on or after 1 July 2014). Regulatory Deferral Accounts (effective for accounting periods beginning on or after 1 January 2016). Presentation of Financial Statements Amendment re: clarification of the requirement for comparative information (effective for accounting periods beginning on or after 1 July 2013). Property, Plant and Equipment Amendment re: proportionate restatement of accumulated depreciation under the revaluation method (effective for accounting periods beginning on or after 1 July 2014). Related Party Disclosures Amendment on disclosures for entities providing key management personnel services (effective for accounting periods beginning on or after 1 July 2014). Separate Financial Statements Amendment to measure at fair value eligible investment entities (effective for accounting periods beginning on or after 1 January 2014). Financial Instruments; Presentation Amendment re: application guidance on the offsetting of financial assets and financial liabilities (effective for accounting periods beginning on or after 1 January 2014). Impairment of Assets Amendment re: disclosure of recoverable amount on non-financial assets (effective for accounting periods beginning on or after 1 January 2014). Intangible Assets Amendment re: the proportionate restatement of accumulated amortisation under the revaluation method (effective for accounting periods beginning on or after 1 July 2014). Financial Instruments: Recognition and Measurement Amendment re: the novation of derivatives and continuation of hedge accounting (effective for accounting periods beginning on or after 1 January 2014). Investment Property Amendment re: clarification of specific transactions that are both business combinations and investment property (effective for accounting periods beginning on or after 1 July 2014).
IFRS 14 IAS 1
IAS 16
IAS 24
IAS 27
IAS 32
IAS 36
IAS 38
IAS 39
IAS 40
IFRIC 21 Levies (effective for periods beginning on or after 1 January 2014).
12. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): c) New Accounting Standards and Interpretations (contd) The adoption of IFRS 9 Financial Instruments may result in significant changes in the Societys classification and presentation of financial instruments. d) Fixed assets Property, plant and equipment are stated at historical cost less accumulated depreciation. Depreciation is provided using both the reducing balance method and the straight-line method. The following rates are considered appropriate to write-off the assets over their estimated useful lives are applied: Office furniture and equipment Computer hardware Computer software 12 % 15% 12 %
No depreciation is provided on freehold land or capital work-in-progress. The assets residual values and useful lives are reviewed at each Statement of Financial Position date, and adjusted as appropriate. An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income. The Credit Union purchased a parcel of land situated at Lot #257 Old St. Joseph Road, Laventille in the year 2004. In accordance with IAS #16, freehold land is not depreciated. e) Investments The Societys investments are classified as available-for-sale. Available-for-sale These securities are intended to be held for an indefinite period of time but may be sold in response to the needs for liquidity or changes in interest rates, exchange rates or equity prices. After initial recognition, available-for-sale investments are measured at fair value with unrealised gains or losses recognised in the Investment Re-measurement Reserve. For actively traded investments, fair value is determined by reference to the Stock Exchange quoted market prices at the Statement of Financial Position date, adjusted for transaction costs necessary to realise the investment. For investments where there is no quoted market price, the carrying value is deemed to approximate fair value.
13. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): f) Financial instruments Financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets and financial liabilities are recognised on the Societys Statement of Financial Position when the Society becomes a party to the contractual provisions of the instrument. Financial assets All regular way purchases and sales of financial assets are recognised or derecognised on the trade date, that is, the date on which the Society commits itself to purchase or sell an asset. A regular way purchase and sale of financial assets is a purchase or sale of an asset under a contract whose terms require delivery of the asset within the timeframe established generally by regulation or convention in the marketplace concerned. When financial assets are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the asset. Financial assets are derecognised when the contractual rights to receive the cash flows expire or where the risks and rewards of ownership of the assets have been transferred. Impairment of financial assets The Society assesses at each Statement of Financial Position date whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and impairment losses are incurred if and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a loss event) and that event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
14. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): f) Financial instruments (contd) Impairment of financial assets (contd) Objective evidence that a financial assets or group of financial assets is impaired includes observable data that comes to the attention of the Society about the following loss events: i) ii) iii) iv) v) Significant financial difficulty of the issuer or obligor. A breach of contract, such as default or delinquency in interest or principal payments. It becoming probable that the borrower will enter in bankruptcy or other financial reorganization. The disappearance of an active market for that financial asset because of financial difficulties. Observable data indicating that there is a measurable decrease in the estimated cash-flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with individual financial assets in the group, including adverse changes in the payment status of borrowers in the Society or national or economic conditions that correlate with defaults on assets in the Society.
The Society first assesses whether objective evidence of impairment exists individually for financial assets that are individually significant. If the Society determines that no objective evidence of impairment exists for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment.
15. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): f) Financial instruments (contd) Impairment of financial assets (contd) Impairment losses are recorded in an allowance account and are measured and recognised as follows: i) Financial assets measured at amortised cost The difference between the assets carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate is recognised in the Statement of Comprehensive Income. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as improvement in the debtors credit rating), the previously recognised loss is reversed to the extent that the carrying amount of the financial asset does not exceed what the amortised cost would have been had the impairment not been recognised at the date that the impairment is reversed. The amount of the reversal in recognised in the Statement of Comprehensive Income. ii) Financial assets measured at cost The difference between the assets carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the current markets rate of return for similar financial assets is recognised in the Statement of Comprehensive Income. These losses are not reversed Financial liabilities When financial liabilities are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the liability. Financial liabilities are re-measured at amortised cost using the effective interest method. Financial liabilities are derecognised when they are extinguished, that is, when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability extinguished and the consideration paid is recognised in the Statement of Comprehensive Income.
16. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): f) Financial instruments (contd) Financial liabilities (contd) Cash and cash equivalents Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less and are carried at cost, which approximates market value. Accounts receivable Accounts receivable are measured at cost. Appropriate allowances for estimated irrecoverable amounts are recognised in Statement of Comprehensive Income when there is objective evidence that the asset is impaired. Loans to members Loans to members are stated at principal amounts outstanding net of allowances for loan losses. Specific provisions are made for potential losses on non-performing loans on the basis of net realisable value. Periodic portfolio reviews are conducted during the course of each year to determine the adequacy of provisions. Loans are secured by various forms of collateral, including charges over tangible assets, certificates of deposit, and assignment of funds held with other financial institutions. Accounts payable Accounts payable are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method. Members deposits Members deposits are stated at the principal amounts invested by members together with any capitalised interest. Members deposits bear interest at rates that are not significantly different from current market rates and are assumed to have discounted cash flow values which approximate carrying values.
17. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): f) Financial instruments (contd) Financial liabilities (contd) Members shares Given their non-permanent nature members shares are classified as a liability and stated at fair value. In accordance with the Societys bye-laws, shareholdings comprise of the following:a) Section 5 (c) requires every new member, to pay an entrance fee of five dollars ($5.00) and an operational fee five dollars ($5.00) both of which shall go towards the Reserve Fund; and Section 5 (c) requires that every member shall purchase at least one (1) ordinary share valued at five dollars ($5.00) each.
b) g)
Revenue recognition Loan Interest Interest charged on all loans to members is calculated, at a rate determined by the Board, on the outstanding balance at the end of each month in accordance with Section 40 (a) of the Bye-laws. Loan interest is accounted for on the accrual basis. Interest on non-performing loans is not accrued or taken into income on an ongoing basis because there is doubt as to the recoverability of the loans. Income from non-performing loans is taken into income on a cash basis, but only after specific provisions for losses have been made. For non-performing loans, specific provisions are made for the unsecured portion of the loan. The amount of the provision is dependent upon the extent of the delinquency. Investment Income Income from investments is accounted for on the accruals basis except for dividends, which are accounted for on a cash basis, consistent with International Accounting Standard (IAS) #18.
h)
Dividends payable to members Dividends are computed on the basis of the average value of shares held throughout the year, the average being determined on the basis of the value of shares held at the end of each day. Dividends that are proposed and declared after the Statement of Financial Position date are not shown as a liability in accordance with IAS #10 but are disclosed as a note to the financial statements.
18. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 2. Significant Accounting Policies (Contd): i) Foreign currency Monetary assets and liabilities denominated in foreign currencies are expressed in Trinidad and Tobago dollars at rates of exchange ruling at the Statement of Financial Position date. All revenue and expenditure transactions denominated in foreign currencies are translated at the average rate and the resulting profits and losses on exchange from these trading activities are recorded in the Statement of Comprehensive Income. j) Provisions Provisions are recognised when the Society has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows. k) Comparative figures Certain changes in the presentation have been made during the year and comparative figures have been restated accordingly. These changes have no impact on the surplus reported for the previous year. 3. Financial Risk Management: Financial Instruments The following table summarizes the carrying amounts and fair values of the Societys financial assets and liabilities:
19. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013
3.
Financial Risk Management (Contd): Financial Instruments 2013 Carrying Value Financial Assets Cash in hand and at bank Investments Loans to members Financial Liabilities Members deposits 7,070,775 2012 Carrying Value Financial Assets Cash in hand and at bank Investments Loans to members Financial Liabilities Members deposits $6,405,518 $6,405,518 $ 751,396 5,948,754 32,908,069 $ 751,396 5,948,754 32,908,069 Fair Value 7,070,775 $ 2,884,932 5,555,574 35,270,412 $ 2,884,932 5,555,574 35,270,412 Fair Value
3.
Financial Risk Management (Contd): Quality of Financial Assets: The Society maintains high quality financial instruments in its operation and these are neither past due nor considered to be impaired. 31 December 2013 Loan to members (no defaults anticipated) Short term investments with no default anticipated Accounts receivable with full repayment expected Cash held at reputable financial institutions $ 33,815,570 5,555,574 2,046,312 2,884,932 $ 44,302,388 2012 $ 30,468,591 5,948,754 1,928,795 751,396 $ 39,097,536
Aged Analysis of Financial Assets As at 31 December 2013, a total of $1,296,158 in loans were considered to be past due. This value includes loans whose payments were received after 31 December 2013 but were at that date considered to be due. Receivables identified as past due but were considered to be impaired are as follows: 31 December 2013 Up to 3 months More than 3 months but less than 6 months More than 6 months but less than 9 months More than 9 months but less than 1 year Over 1 year $ 451,038 434,508 83,177 39,656 1,008,379 $ 2012 79,362 210,832 111,095 1,961,241 7,222 2,369,752
21. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 3. Financial Risk Management (Contd): Aged Analysis of Financial Assets (contd) As at 31 December 2013, a total of $287,779 (2012: $69,725) were considered impaired. The individually impaired loans mainly relate to members who are in unexpected difficult economic situations. It was assessed that a portion of the receivables is expected to be recovered. The aging of these impaired receivables is as follows: 31 December 2013 Up to 3 months More than 3 months but less than 6 months More than 6 months but less than 9 months More than 9 months but less than 1 year Over 1 year $ 287,779 287,779 $ 2012 69,725 69,725
Financial risk factors The Society is exposed to interest rate risk, credit risk, liquidity risk, currency risk, operational risk, compliance risk and reputation risk arising from the financial instruments that it holds. The risk management policies employed by the Society to manage these risks are discussed below: a) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Society is exposed to interest rate risk through the effect of fluctuations in the prevailing levels of interest rates on interest bearing financial assets and liabilities, including investments in bonds, loans, customer deposits and other funding instruments. The exposure is managed through the matching of funding products with financial services and monitoring market conditions and yields. Funding products such as follows:
22. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 3. Financial Risk Management (Contd): i) Bonds The Society invests mainly in medium term bonds consisting of fixed rate instruments. The market values of the fixed rate bonds are not very sensitive to changes in interest rates. The market values of the floating rate bonds are sensitive to changes in interest rates. The longer the maturity of the bonds, the greater is the sensitivity to changes in interest rates. Because these assets are being held to maturity and are not traded, any changes in market values will not impact the Statement of Income. Loans The Society generally invests in fixed rate loans to members not exceeding ten years. These are funded mainly from member deposits and shares.
23. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 Interest rate sensitivity analysis The Societys exposure to interest rate risk is summarized in the table below, which analyses assets and liabilities at their carrying amounts categorized according to their maturity dates.
2013 Effective Rate Financial Assets Cash in hand and at bank Investments Loans to members Financial Liabilities Members deposits 2.80% 5,982,176 1,088,599 7,070,775 1.10% 4.25% 8.43% $ 2,384,052 4,618,371 1,264,054 $ 465,807 8,080,556 $ 25,667,118 $ 759,564 471,396 $ 3,143,616 5,555,574 35,011,728 Up to 1 year 1 to 5 years Over 5 years Non Interest Bearing Total
2012 Effective Rate Financial Assets Cash in hand and at bank Investments Loans to members Financial Liabilities Members deposits 2.80% 5,419,340 986,178 6,405,518 1.10% 4.25% 8.43% $ 569,522 4,942,754 1,181,948 $ 500,000 7,555,685 $ 24,170,436 $ 181,874 506,000 $ 751,396 5,948,754 32,908,069 Up to 1 year 1 to 5 years Over 5 years NonInterest Bearing Total
3.
Financial Risk Management (Contd): Financial risk factors (contd) b) Credit risk Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the Statement of Financial Position date. The Society relies heavily on a written Loan Policy Manual, which sets out in detail the current policies governing the lending function and provides a comprehensive framework for prudent risk management of the credit function. Adherence to these guidelines is expected to communicate the Societys lending philosophy; provide policy guidelines to team members involve in lending; establish minimum standards for credit analysis, documentation, decision making and postdisbursement administration; as well as create the foundation for a sound credit portfolio. The Societys loan portfolio is managed and consistently monitored by the Credit Committee and is adequately secured by collateral and where necessary, provisions have been established for potential credit losses on delinquent accounts. Cash balances are held with high credit quality financial institutions and the Society has policies to limit the amount of exposure to any single financial institution. The Society also actively monitors global economic developments and government policies that may affect the growth rate of the local economy. c) Liquidity risk Liquidity risk is the risk that arises when the maturity dates of assets and liabilities do not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Society has procedures with the object of minimising such losses such as maintaining sufficient cash and other highly liquid current assets and by having available an adequate amount of committed credit facilities. The Society is able to make daily calls on its available cash resources to settle financial and other liabilities. i) Risk management The matching and controlled mismatching of the maturities and interest rates of assets and liabilities are fundamental to the management of the Society. The Society employs various asset/liability techniques to manage liquidity gaps. Liquidity gaps are mitigated by the marketable nature of a substantial segment of the Societys assets as well as generating sufficient cash from new and renewed members deposits and shares. To manage and reduce liquidity risk the Societys management actively seeks to match cash inflows with liability requirements.
25. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 3. Financial Risk Management (Contd): Financial risk factors (contd) c) Liquidity risk (contd) ii) Liquidity gap The Societys exposure to liquidity risk is summarised in the table below which analyses assets and liabilities based on the remaining period from the Statement of Financial Position date to the contractual maturity date. 2013 Up to 1 year Financial Assets Cash in hand and at bank Investments Loans to members Financial Liabilities Members deposits 5,982,176 1,088,599 2012 Up to 1 year Financial Assets Cash in hand and at bank Investments Loans to members Financial Liabilities Members deposits 5,419,340 986,178 6,405,518 $ 751,396 4,942,754 1,181,948 $ 1,000,000 7,555,685 $ 6,000 24,170,436 $ 751,396 5,948,754 32,908,069 1 to 5 years Over 5 years Total 7,070,775 $ 2,884,932 5,089,767 1,522,738 $ 465,807 8,080,556 $ 25,667,118 $ 2,884,932 5,555,574 35,270,412 1 to 5 years Over 5 years Total
d)
Currency risk Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Societys measurement currency. The Society is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States Dollar. The Societys management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.
e)
Operational risk Operational risk is the risk derived from deficiencies relating to the Societys information technology and control systems, as well as the risk of human error and natural disasters. The Societys systems are evaluated, maintained and upgraded continuously. Supervisory controls are installed to minimise human error. Additionally, staff is often rotated and trained on an on-going basis.
f)
Compliance risk Compliance risk is the risk of financial loss, including fines and other penalties, which arise from non-compliance with laws and regulations of the state. The risk is limited to a significant extent due to the supervision applied by the Inspector of Financial Institutions at the Central Bank of Trinidad and Tobago, as well as by the monitoring controls applied by the Society.
g)
Reputation risk The risk of loss of reputation arising from the negative publicity relating to the Societys operations (whether true or false) may result in a reduction of its clientele, reduction in revenue and legal cases against the Society. The Society engages in public social endeavours to engender trust and minimize this risk.
h)
Market risk For the Societys non- variable interest bearing assets, the income and operating cash flows are substantially independent of changes in market interest rates. However, for the money market investments, had the interest rates increased or decreased by 1% the effect on the interest income would be a change of $5,075 (2012: $5,450). As the Society does not have any interest based loans with commercial banks or other institutions changes to the interest rates would have had no effect on our interest expense for 2013 and 2012.
27. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 4. Critical Accounting Estimates and Judgments: The preparation of financial statements in accordance with International Financial Reporting Standards requires management to make judgements, estimates and assumptions in the process of applying the Societys accounting policies. See Note 2 (b). Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events, that are believed to be reasonable under the circumstances. The Society makes estimates and assumptions concerning the future. However, actual results could differ from those estimates as the resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below: Changes in accounting estimates are recognised in the Statement of Comprehensive Income in the period in which the estimate is changed, if the change affects that period only, or in the period of the change and future periods if the change affects both current and future periods. The critical judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are as follows: i) ii) iii) Whether investments are classified as held-to-maturity investments, available-for-sale or loans and receivables. Whether leases are classified as operating leases or finance leases. Which depreciation method for plant and equipment is used.
The key assumptions concerning the future and other key sources of estimation uncertainty at the Statement of Financial Position date (requiring managements most difficult, subjective or complex judgements) that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: i) Impairment of assets Management assesses at each Statement of Financial Position date whether assets are impaired. An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment. Recoverable amount is the present value of the future cash flows. Provisions are made for the excess of the carrying value over its recoverable amount. ii) Plant and equipment Management exercises judgement in determining whether future economic benefits can be derived from expenditures to be capitalised and in estimating the useful lives and residual values of these assets.
28. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 5. Cash and Cash Equivalent: 31 December 2013 Cash in hand RBC Royal Bank (Trinidad and Tobago) Limited: - TTD Current Account - USD Current Account Trinidad and Tobago Unit Trust Corporation: - TTD Income Fund - USD Income Fund Republic Bank Limited - TTD Current Account $ 6,000 88,863 3,123 148,094 334,587 2,304,265 $ 2,884,932 6. Accounts Receivable and Prepayments: 31 December 2013 Prepayments Payroll receivables Other receivables $ 8,258 1,781,604 256,450 $ 2,046,312 7. Investments: 31 December Available-for-Sale Shareholdings: First Citizens Bank Limited Co-operative Credit Union League of Trinidad and Tobago The Central Finance Facility Co-operative Society of Trinidad and Tobago Limited KCL Capital Market Brokers Limited 4.8% Preference shares Bonds: Capital Protected Bonds Main Directional Investment Limited Frank Templeton Investments Limited KCL Capital Market Brokers Limited Murphy Clarke Financial Limited Units: AIC Finance Limited British American Insurance Company Trinidad and Tobago Unit Trust Corporation 1st Scheme 2013 $ 406,565 6,000 1,000,000 $ 2012 6,000 450,000 1,000,000 $ 2012 11,003 1,635,191 282,601 $ $ 2012 181,874 90,092 3,123 146,474 329,385 448 751,396
$ 1,928,795
291,722 308,073 500,000 1,000,000 500,000 500,000 1,043,214 $ 5,555,574
315,219 409,100 500,000 1,341,159 500,000 500,000 927,276 $ 5,948,754
29. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 7. Long-Term Investments (Contd): On 30 January 2009, the Ministry of Finance (MOF) and the Central Bank of Trinidad and Tobago announced that the Government of the Republic of Trinidad and Tobago (GORTT) had reached an agreement with CL Financial Limited Group for the provision of a package of financial support for the Groups financial services companies. These companies included Colonial Life Insurance Company Limited (CLICO), Caribbean Money Market Brokers Limited (CMMB) and British American Company (Trinidad) Limited (BAT). Subsequent to this, the Minister of Finance stated that GORTT would repay local investors of Short Term Investment Products (STIPS) in CLICO and BAT, their principal balances, that is, the capital sum as at the issue date or last renewal date, minus any capital withdrawals or loans made prior to 8 September 2010. A similar guarantee was not made for interest accrued on the principal balances. On 26 September 2011, the GORTT revised its offer to Credit Unions and Trade Unions that fifty percent (50%) of the principal balance as shown on the EFPA II policy to be paid immediately across the RTGS into their bank account, and the remaining fifty percent (50%) will be paid similarly within twelve (12) months of the date of execution of a signed Deed of Assignment and Declaration of Trust unto the GORTT. 8. Loans to Members: Loans to members are stated at principal outstanding net of a provision for loan losses. The provision for loan losses is based on managements evaluation of the performance of the loan portfolio under current economic conditions and past loan loss experience. 31 December 2013 Loan to members Less: Provision for loan losses $35,452,777 (182,365) $35,270,412 Provision for loan losses: Balance, beginning of year Charge for the year Amounts written-off Balance, end of year $ 82,365 100,000 182,365 $ 84,400 (2,035) 82,365 2012 $32,990,434 (82,365) $32,908,069
9.
Fixed Assets: Freehold property $ 521,480 1,893 523,373 Construction in progress $ 90,939 90,939 Office furniture and equipment $ 153,214 7,049 (3,272) 156,991 Computer software $ 14,006 14,006 Computer hardware $ 85,534 (378) 85,156
Cost Balance as at 1 January 2013 Additions Transfers Balance as at 31 December 2013 Accumulated Depreciation Balance as at 1 January 2013 Charge for the year Balance as at 31 December 2013 Net Book Value Balance as at 31 December 2013 Balance as at 31 December 2012 $ $
Total $ 865,173 8,942 (3,650) 870,465
88,488 7,137 95,625
13,025 140 13,165
70,526 8,519 79,045
172,039 15,796 187,835
523,373 521,480
$ $
90,939 90,939
$ 61,366 $ 64,726
$ $
841 981
$ $
6,111 15,008
$ 682,630 $ 693,134
9.
Fixed Assets (Contd): Office furniture and equipment $ 128,895 24,319 153,214
Cost Balance as at 1 January 2012 Additions Balance as at 31 December 2012 Accumulated Depreciation Balance as at 1 January 2012 Charge Balance as at 31 December 2012 Net Book Value Balance as at 31 December 2012 Balance as at 31 December 2011 $ $ $
Freehold property 102,690 418,790 521,480
Construction in progress $ 90,939 90,939
Computer software $ 14,006 14,006
Computer hardware $ 85,534 85,534
Total $ 422,064 443,109 865,173
82,889 5,599 88,488
12,885 140 13,025
63,784 6,742 70,526
159,558 12,481 172,039
521,480 102,690
$ $
90,939 90,939
$ $
64,726 46,006
$ $
981 1,121
$ $
15,008 21,750
$ 693,134 $ 262,506
32. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 10. Accounts Payable and Accruals: 31 December 2013 2012 Sundry creditors Audit fees Interest on members fixed deposits CUNA premiums Statutory deductions Pension payable $ 146,893 65,550 89,953 129,893 23,159 9,314 $ 464,762 11. Members Shares: According to the Bye-Laws of Angostura Group Employees Credit Union Co-operative Society Limited Section 11 - Shares, shares shall be valued at $5.00 each. In accordance with International Financial Reporting Interpretation Committee (IFRIC) Interpretation #2, these redeemable shares have been treated as liabilities. 12. Reserve Fund: In accordance with the Bye-Laws of Angostura Group Employees Credit Union Co-operative Society Limited Section 46 Distribution of Surplus, 10% shall be credited to the Reserve Fund. Section 21 of the Bye-Laws says that the Reserve Fund shall be indivisible and no member shall be entitled to any specific share thereof. It goes further to say that the Reserve Fund may, subject to the approval of the Commissioner, be used in the business of the Society or may be invested in accordance with the Provision of the Act. 13. Education Fund: In accordance with the Bye-Laws of Angostura Group Employees Credit Union Co-operative Society Limited Section 46 Distribution of Surplus, 5% shall be credited to an Education Fund. Section 23 of the Bye-Laws says that the Education Fund shall be used solely for the education and training of the members/staff of the Society or any other organizations or persons who qualify under the Societys education policy. 14. Building Fund: 5% of the net surplus is transferred annually to a Building Fund. $ 45,861 65,550 112,339 85,189 -
$ 308,939
33. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 15. Investment Re-measurement Reserve: In accordance with IAS #39, the Board of Directors has created an investment re-measurement reserve which includes the following: i) ii) 16. Unrealised gains/losses on available-for-sale investments. Transfers from Retained Earnings.
Dividend and Interest Rebate: The Board of Directors has proposed a dividend of 5% for the year ended 31 December 2013 which is estimated at $1,503,627. This is subject to approval by the membership at the Annual General Meeting and is not recorded as a liability in these financial statements in accordance with IAS #10.
17.
Related Party Transactions: Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial decisions. Key management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the Society. A number of transactions are entered into with related parties in the normal course of business. These transactions were carried out on commercial terms at market rates.
34. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 17. Related Party Transactions (Contd): Balances and transaction with related parties and key management personnel during the year were as follows: 31 December 2013 2012 Assets, Liabilities and Members Equity Loans and other receivables Directors, committee members, key management personnel Shares, deposits and other liabilities Directors, committee members, key management personnel Expenses Interest due to related parties Dividends paid to related parties $ $ Key management compensation Short-term benefits Post employment benefits $ 139,125 23,785 162,910 $ 123,731 7,396 131,127 5,253 143,622 148,875 $ $ 7,862 133,501 141,363 $ 3,747,502 $ 3,355,131 $ 4,596,091 $ 4,202,101
35. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 18. Fair Values: Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arms length transaction. The existence of published price quotation in an active market is the best evidence of fair value. Where market prices are not available, fair values are estimated using various valuation techniques, including using recent arms length market transactions between knowledgeable, willing parties, if available, current fair value of another financial instrument that is substantially the same and discounted cash flow analysis. The following methods have been used to estimate the fair values of various classes of financial assets and liabilities: a) Current assets and liabilities The carrying amounts of current assets and liabilities are a reasonable approximation of the fair values because of their short-term nature. b) Members loans Loans are net of specific provisions for losses. These assets result from transactions conducted under typical market conditions and their values are not adversely affected by unusual terms. The inherent rates of interest in the portfolio approximate market conditions and yield discounted cash flow values which are substantially in accordance with financial statement amounts. c) Investments The fair values of investments are determined on the basis of market prices available at 31 December 2013. d) Members deposits Members deposits bear interest at rates that are not significantly different from current rates and are assumed to have discounted cash flow values which approximate carrying values.
36. ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2013 19. Administrative Expenses: 31 December 2013 Audit and accounting fees Annual general meeting Co-op celebration activities CUNA insurance Data processing Depreciation Education expenses General expenses Honoraria Insurance Interest on members fixed deposits League dues Legal and professional fees Loans loss expense Maintenance and cleaning Office expenses Printing and stationery Stabilization fund Telephone $ 99,100 32,753 92,677 403,424 34,288 15,796 123,856 54,640 156,400 12,395 211,805 61,078 47,703 100,000 9,174 24,814 21,216 9,313 6,780 $ 2012 85,950 47,970 105,686 485,596 19,369 12,481 60,201 145,251 140,731 14,560 197,639 4,388 6,000 36,640 23,811 20,676 7,523
$ 1,517,212 20. Personnel Costs:
$ 1,414,472
31 December 2013 Salaries and staff benefits Staff pension $ $ 281,121 24,183 305,304 $ $ 2012 322,051 20,775 342,826
44

AGECU 39th AGM Brochure

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Angostura Group Employees Credit Union Co-operave Society Ltd.

Annual Report 2013

39th Annual General Meeng

39th Annual General Meeng

39th Annual General Meeng

To be the premier nancial instuon catering to the needs of our members.

_______________ ALBERT ROJAS SecretaryBoard of Directors

39th Annual General Meeng

9. 10. 11. 12.

39th Annual General Meeng

% FULL YEAR (12 MONTHS) 2.00 2.25 2.50 2.75

. Lambert George President

Johann Merri Treasurer

39th Annual General Meeng

Out-going and eligible for re-elecon:

Supervisory Commiee Outgoing and eligible for re-elecon:

Credit Commiee Outgoing and eligible for re-elecon:

39th Annual General Meeng

39th Annual General Meeng

__________________ LAMBERT GEORGE President

39th Annual General Meeng

39th Annual General Meeng

39th Annual General Meeng

There being no further discussion or changes to the proposed amendment, it was

39th Annual General Meeng

39th Annual General Meeng

No of Votes 62 42 38 38 35 (1st alternate) 33 (2nd alternate)

39th Annual General Meeng

39th Annual General Meeng

39th Annual General Meeng

39th Annual General Meeng

May god connue to bless you all!

Wayne Mc Donald Vice President

.... Albert Rojas Secretary

39th Annual General Meeng

39th Annual General Meeng

Posion Chairperson Secretary Member Member Member Member Alternate

39th Annual General Meeng

________________________ CARSON CHADEE Chairperson

_______________________ OLIVA BUNCHE Secretary

39th Annual General Meeng

39th Annual General Meeng

QUARTERLY ASSESSMENT OF LOANS FOR 2013 VS. 2012

Average Loans Taken Per Quarter

39th Annual General Meeng

________________ Andrew Brown Chairperson

_________________ Evelyn Sco Secretary

39th Annual General Meeng

39th Annual General Meeng

39th Annual General Meeng

__________________ Sharon Joseph Chairperson

______________________ Ronda Betancourt Secretary

39th Annual General Meeng

AGECU PROPOSED BUDGET FOR 2014

PROJECTED NET INCOME FOR THE YEAR

AGECU PROPOSED BUDGET FOR 2014

Capital Budget 2014/2015

39th Annual General Meeng

ANGOSTURA GROUP EMPLOYEES CREDIT UNION CO-OPERATIVE SOCIETY LIMITED INDEX

STATEMENT OF MANAGEMENT RESPONSIBILITIES

INDEPENDENT AUDITORS' REPORT

(for) Chairman Supervisory Committee

(The accompanying notes form part of these financial statements)

1,517,212 83,039 2,553 305,304 1,908,108 2,350,268