Notice of Annual General Meeting 2023 .......................................................... Agenda of 75th Annual General Meeting ....................................................... Minutes of the 74th Annual General Meeting ............................................... Board of Directors............................................................................................................ Board of Director’s Report .......................................................................................... Credit Union Staff.............................................................................................................. Credit Committee............................................................................................................ Credit Committee’s Report ....................................................................................... Supervisory Committee............................................................................................... Supervisory Committee’s Report .......................................................................... Treasurer’s Report ........................................................................................................... Auditor’s Report ................................................................................................................. Fixing Maximum Limit of Borrowing ................................................................... Appropriation of Undistributed Surplus ........................................................... Nominating Committee’s Report .......................................................................... Pictorial Highlights........................................................................................................... Prayer of St. Francis ........................................................................................................ 2 3 4 13 14 22 23 24 28 29 32 36 92 92 94 102 104
2022 Annual Report 2 75th Annual General Meeting NOTICE OF ANNUAL GENERAL MEETING 2023 Notice of Annual General Meeting
75th Annual General Meeting 3 2022 Annual Report AGENDA OF THE 75TH ANNUAL GENERAL MEETING 2023 1. Ascertain that Quorum is present Call to Order 2. Prayer of St. Francis of Assisi 3. Chairman’s Opening Remarks 4. Apologies for Absence 5. Confirmation of the Minutes of the 74th Annual General Meeting 6. Matters Arising from the Minutes 7. Reports of: a. The Board of Directors b. The Credit Committee c. The Supervisory Committee d. The Treasurer (including the Audited Financial Statements) 8. Report of Nominations & Elections Committee 9. Report of the Nominations & Elections Committee 10. Any other Business 11. Adjournment AGENDA OF THE 75TH ANNUAL GENERAL MEETING 2023 Agenda of Annual General Meeting
2022 Annual Report 4 75th Annual General Meeting MINUTES OF THE 74th ANNUAL GENERAL MEETING 01 CALL TO ORDER The President, Mr. Norris Gilbert, called the 74th Annual General Meeting (AGM) to order at 2:05 p.m. having ascertained a quorum was present. 02 PRAYER Prayer was offered by the President. The Prayer of St. Francis of Assisi was repeated by all. 03 NOTICE OF THE 74th ANNUAL GENERAL MEETING The Secretary of the Board Miss Karen Arscott read the Notice to convene the meeting of the 74th Annual General Meeting (AGM). 04 CHAIRMAN’S OPENING REMARKS The Chairman extended welcome to all present and online to the 74th Annual General Meeting of the PWD Co-Operative Credit Union Limited (PWDCCUL) and thanked everyone for attending and expressed the wish that all PWD family will be able to meet in one location instead of convening the hybrid meeting with most of the members being online. The Chairman gave a brief synopsis of what would be covered in the meeting. He also mentioned that next year PWD will be celebrating another major milestone. 05 WELCOME & APOLOGIES FOR ABSENCE The Chairman welcomed the following persons: On Location Miss Kimberley Lindo - JCCUL Miss Antonette Spencer - DCFS Mr. Edison Brown - DCFS Miss Georgia Morrison - CUNA Caribbean Insurance Ja Ltd Mrs. Dianne Bennett-Clarke - QNET Miss Marjorie Goodgame - Stenographer Miss Yvonne Bernard - Stenographer Mr. Ansel Lee - former volunteer (Supervisory Committee) Mr. Leroy Cole - former volunteer (Supervisory Committee) Mr. Everal Barnett - former volunteer (Board of Directors) Mr. Edward Forbes - former volunteer (Board of Directors) Mrs. Beryl Edwards - former Office Manager Virtual Mr. Noel Smith - Smith’s & Associates (Auditor) Mrs. Beryl Edwards - former Manager He recognized Ms Adrianna Hall (Treasure Chest) who celebrated her birthday. The Chairman officially introduced the members of the Board of Directors: Mr. Norris Gilbert - President Miss Cheryl Hawkins - Vice President Minutes of 74th Annual General Meeting MINUTES OF THE 74TH ANNUAL GENERAL MEETING
75th Annual General Meeting 5 2022 Annual Report Miss Karen Arscott - Secretary Miss Grace Bailey - Assistant Secretary Mr. Damon Escoffery - Treasurer Mr. Everton Walker - Assistant Treasurer (virtual) Mr. Bernard Allen - Director Miss Paula Brown - Director Mrs. Kaydian Gordon - Director Apologies for Absence Mr. Ian McNaughton - CEO – CUMAX Wealth Management Members Mr. Everton Walker Mr. Lenson Lee Miss Keisha Forbes Miss Barbara Faulkner Mrs. Jodian Carnegie Miss Tavia Smith Miss Shannon Singh Mr. Dane Nelson Miss R Roberts There was a query online on how to download the Financial Statements. The President directed them to page 43 to 96 of the Annual Report. 06 CONFIRMATION OF THE MINUTES OF THE 73rd ANNUAL GENERAL MEETING The Minutes of the 73rd Annual General Meeting was presented by the Secretary, Miss Karen Arscott outlined on pages 6 – 15 of the Annual report. She gave instructions on how to move a motion and vote on resolutions for persons online as well as in-house. She then asked for a motion for the Minutes to be taken as read. The Minutes of the 73rd Annual General Meeting was taken as read on a motion by Mr. Patrick Rose and seconded by Mr. Edward Forbes. There being no corrections, the acceptance of the Minutes of the 73rd Annual General Meeting was moved by Miss Shauna-Kay McKenzie and seconded by Mrs. Audrey Jones-Francis. All were in favour. The Secretary handed over the meeting to the Chairman. 07a REPORT OF THE BOARD OF DIRECTORS The Board of Directors’ Report was presented by the Chairman - Mr. Norris Gilbert. He asked for a motion for the report to be taken as read and this was moved by Mrs. Josiene Brown Nelson and seconded by Miss Genevieve Mykoo. The report was on pages 16 to 23 of the Annual Report. He informed the AGM that PWDCCU at the end of the Financial Year made a surplus Minutes of 74th Annual General Meeting
2022 Annual Report 6 75th Annual General Meeting although not extravagant. The focus on 2021 however, was to keep the Credit Union stable in the environment to satisfy members’ short to medium-term needs while applying new technologies to improve and enhance the existing ones. These measures were taken and while protecting the assets of the Credit Union the support to the existing business lines continued. The Credit Union was able to satisfy the needs of our members with increased technologies on various media platforms to increase the benefits in savings and loans products. Financial Performance He outlined the financial performance measures taken for 2021. He mentioned that last year PWDCCU made a loss, however there was a total comprehensive profit of 5.4M at the end of the year. There was no negative growth in 2021. There was positive growth in membership (2.79%), voluntary shares (5.33%), members deposits (4.81%), total savings (5.2%), loans (7.07%), assets (6.38%), surplus (way over a 100%). Scholarships and Grants The Credit Union continued to offer scholarships at the Secondary Level and grants at the Tertiary Level. $75,000 was allotted for scholarships and grants during the year under review. The scholarship on offer for 2021 was the Donald E. Miller Memorial Scholarship. This was awarded to Miss Reshauna Martin (St. Andrew Technical High School). The Stanley Williams Memorial Grant was awarded to Miss Chevelle Skervin and Gloria Wilson Memorial Grant was awarded to Miss Thelma Young. Miss Janae Forbes one of the awardees of the TOB Goldson Memorial Grant achieved nine distinctions. Congratulations were extended to the family. Directors’ Performance The Credit Union owes its seventy-four years of success to the solid commitment from its volunteers over the years even through the challenges of the pandemic and not being able to convene meetings every month. The Directors have given their time, expertise and resources to ensure that the credit Union’s targets have been met and the Credit Union’s performance remains optimal. Condolences The Chairman offered condolences on behalf of the Board and Management of the PWDCCU to the families and friends who lost loved ones. He noted that nine members passed during the year namely: Miss Sonia Roache Miss Joan Tucker Miss Daphne Robertson Mr. Luther Brown Miss Lyda Jones Mr. Hassim Fulton Mr. Albert Hanson Ms. Marlene Humphrey Mrs. Linette Campbell Minutes of 74th Annual General Meeting
75th Annual General Meeting 7 2022 Annual Report A moment of silence was observed for those who had passed on during the year. Learning and Development Staff and volunteers participated in several workshops during the year and were exposed to training in Anti-Money Laundering, Sales and Marketing and Customer Service. Various training initiatives exposed the staff to, collectively, 108 man-hours of training for the year. New processes, new technologies, new applications and new regulations require us to be constantly providing training to both volunteers and staff throughout the years and it continues even into this year and further on. PWDCCU was in the testing phase of Online Banking. Members are now in receipt of their Debit MasterCard which allows them to continue their ATM as well as do online transactions. The Way Forward The Chairman said that PWDCCU remain resilient and poised for further development and in order to attract new membership for the achievement of growth targets for sustainability, the Board today is proposing a rule change to allow for the widening of the bond, to allow every employee of a Ministry/Department and Agencies of the Government in Jamaica to be a member. This will give us a wider pool to get deposits as well as to lend. We know it has other risks, but we have taken the risks factors in place, and we have already had measures in place to manage the risks that are associated with widening the bond. Appreciation The Chairman expressed appreciation to the Ministry of Transport and Mining, Economic Growth and the National Works Agency (where 75 to 85 percent of membership comes from), JCCUL, JCIA, CUNA Caribbean, the Department of Co-operative and Friendly Societies, Smith and Associates (Auditors), BNS, Sagicor, Visual Tech He also expressed appreciation and gratitude to the management and staff of PWDCCU for their tireless effort in delivering service to their members; the Credit Committee for their support in assessing dealing with loans, risk factors; the Supervisory Committee for reviewing loan documents and operations of the credit union and ensuring that PWDCCU is compliant, the members who were not elected at the AGM but who served on various Sub-committees of the Board. At this point the Chairman of the Board paid special attention and appreciation, to some directors who after today would not serve in this capacity at least for the near future: Miss Karen Arscott, Miss Cheryl Hawkins, Mr. Bernard Allen, Miss Kaydian Gordon, Miss Paula Brown. He asked the meeting to give them a round of applause for giving tremendous service at least over the last five to six years consecutively and many of you who have served in a similar capacity in the past. The Chairman then invited questions/comments/commendations from the floor. Mr. Patrick Rose queried if by widening the bond the existing criteria are the same. The Chairman answered in the affirmative. Minutes of 74th Annual General Meeting
2022 Annual Report 8 75th Annual General Meeting Mr. Ansel Lee commended the Board for the $1.06M surplus. Mr. Edward Forbes seconded this sentiment. Mrs. Meisha Richard-Davidson (online) commended the Board for their invaluable service. The Board of Directors’ Report was adopted on a motion by Mr. Ansel Lee and seconded by Miss Angelina Brown. All were in favour. The Chairman paused to recognize some of the Treasure Chest members at the meeting. 07b REPORT OF THE CREDIT COMMITTEE Mr. Patrick Rose, Chairman of the Credit Committee presented the report. He introduced the members of his committee. He then asked for a motion to take the Report as read. This was done by Miss Annmarie Farquharson. and seconded by Mr. Lenson Lee (online). There was a decrease in the number of loans granted by the Credit Committee over the previous year. They processed a total of 3,336 loans and disbursed approximately $187M for the year in review. The top three performing Loans for the period were Debt Consolidation, Motor Vehicle and Personal Expenses (loans within shares). These accounted for approximately 58% of total loans issued. He mentioned that the TCB loan continued to be a significant engine for the Loans Portfolio. They expressed their appreciation and gratitude to the management and staff, and in particular those officers who worked long hours with the Credit Committee to fulfill the responsibilities to the membership. They thanked the members for making the PWD Credit Union their financial institution of choice. Thank you. The Chairman then invited questions/comments/commendations from the floor. Mr. Kevin Johnson asked what are Investment Loans? The Chairman replied that Investment loans are loans that persons borrow for investment purposes. Persons invest in not just financial instruments, but persons have start-up businesses which is real investment. The Chairman then asked for a motion to be moved and seconded for the acceptance of the Credit Committee Report. Mr. Ansel Lee moved, and it was seconded by Mrs. Chubeth Gordon-Hemmings. 07c REPORT OF THE SUPERVISORY COMMITTEE The Supervisory Committee Report was presented by Mr. Melvin Young. He asked for a motion to take the Report as read. This was done by Mr. Leroy Cole and seconded by Ms. Sharon Simmonds. He introduced the members of the Supervisory Committee: Miss Angelina Brown (Secretary), Mrs. Althea Cole-Martin, Mrs. Audrey Jones-Francis and Mr. Lenson Lee. Minutes of 74th Annual General Meeting
75th Annual General Meeting 9 2022 Annual Report He stated that the responsibilities of the Supervisory Committee were to oversee the operations of the Credit Union and provide objective reviews. He informed the meeting of some of the areas that were audited. Mr. Young said that the Committee is responsible for monitoring the scope of the Credit Union's operations and gave an impartial assessment. They reviewed the Internal Controls of the Credit Union. They focused on areas such as examinations of Payment Vouchers and loan Applications. They prepared and submitted monthly reports to the Board of Directors and attended quarterly joint meetings. He mentioned that during the CORONA pandemic, the Committee had to reschedule their meeting times and adhere to the national and parish lockdowns. However, the Manager facilitated their new meeting times. The Chairman paid tribute to Mrs. Sonia Cole for her invaluable contribution to PWDCCU. They expressed their gratitude to the Board, the dedicated and hard-working staff of the PWD Credit Union and other Volunteers for their support throughout the year. The Chairman then invited questions/comments/commendations from the floor. Mr. Edward Forbes queried the attendance of Mrs. Audrey Jones-Francis. The Chairman responded that she joined the committee in November/December. The motion for the acceptance of the report was moved by Miss Charmaine Nembhard and seconded by Miss Paula Hamilton. 07d TREASURER’S REPORT The Treasurer Mr. Damon Escoffery presented the Treasurer's Report. Audited Report He asked for a motion to take an abbreviated version of the Auditors Report before the Treasurer’s Report. This was moved by Mr. Edward Forbes and seconded by Mr. Leroy Cole. The Audited Report was presented through Zoom by Mr. Noel Smith, Auditor - Smith & Associates. The Auditor read the abbreviated version of the report. He concluded that “In our opinion, proper accounting records have been maintained and the financial statements are in agreement with the accounting records, and give the information required by the Co-operative Societies Act in the manner so required.” The Treasurer asked for a motion to accept the Audited Report. This was done on a motion by Mr. Ansel Lee and seconded by Miss Annmarie Farquharson. The Treasurer then presented his Report. He asked for a motion to be moved and seconded that the report be taken as read. The motion was moved by Mr. Ansel Lee and seconded by Miss Minutes of 74th Annual General Meeting
2022 Annual Report 10 75th Annual General Meeting Annmarie Farquharson. He stated that for the years 2017 to 2021, PWDCCU earned a surplus of 2017 - $6.3M; 2018 - $1.7M; 2019 - $50,000; 2020 - minus$1.06M and 2021 - $5.4M. He gave credit members and staff of PWDCCU for applying for loans during the year 2021 that we could achieve a surplus of $4.4M. Growth in assets 2017 to 2021. Assets were at 2021 - $485M; 2020 - $456M, 2019 - $420M, 2018 - $403M; 2017 - $392M. The Chairman then invited questions/comments/commendations from the floor. Mr. Kevin Johnson asked what contributed to the loss in 2020. The Chairman responded that there were additional expenses that were incurred due to COVID-19. For example, sanitization, increased expense to get the staff out to work to serve the members. Mr. Escoffery asked for a motion to accept the Treasurer’s Report. The motion was moved by Miss Genevieve Mykoo and seconded by Mr. Edward Forbes. 08 FIXING OF THE MAXIMUM LIMIT OF BORROWING The Treasurer asked the members to turn to Page 36 of the Annual Report. He proposed the maximum limit of borrowing remain at 16 times the Credit Unions Capital and the motion was seconded by Mr. Patrick Rose. All were in favour. 09 APPROPRIATION OF NET UNDISTRIBUTED SURPLUS Mr. Damon Escoffery – Treasurer, presented the Appropriation of the Net Undistributed Surplus found on page 36 of the Annual Report. It was proposed by the Treasurer and seconded by Mr. Wayne McTavish. All were in favor. The Treasurer then handed over the meeting to the Chairman. Mrs. Josiene Brown Nelson asked if the author of the Report can move the Report. The Chairman explained that these were Financial Resolutions and that they should be moved by the Treasurer. 10 REPORT OF THE NOMINATIONS AND ELECTIONS COMMITTEE The Chairman invited Miss Cheryl Hawkins to present the Nominations Report as the Chairman for this Committee was overseas. Miss Hawkins presented the report. The Report was accepted on a motion from Miss Shauna-Kay McKenzie and seconded by Mr. Errol Hamilton. All were in favour. ELECTIONS Miss Antonette Spencer, representative from the Department of Co-operatives and Friendly Societies was invited to conduct the election process. Miss Spencer proceeded to conduct the elections starting with the recommendations of the Nominating Committee. Board of Directors There being no nominations from the floor, Miss Spencer asked for a motion to accept the Minutes of 74th Annual General Meeting
75th Annual General Meeting 2022 Annual Report 11 nominations made by the nominating committee for the Board of Directors. This was done by Mr. Leroy Cole and seconded by Mr. Desmond Wilson. The members to serve for two years were: Mr. Everal Barnett Mr. Patrick Rose Mr. Melvin Young Mrs. Iolyn Donald Mrs. Geraldine Miles Credit Committee There being no nominations from the floor, Miss Spencer asked for a motion to accept the nominations made by the nominating committee for the Credit Committee. This was done by Miss Annmarie Farquharson and seconded by Miss Genevieve Mykoo. The members to serve for two years were: Miss Janet Stewart Miss Natalie Waldron-Cato Supervisory Committee There were two nominations from the floor for the Supervisory Committee – o Miss Shanine Stephenson-Pagon nominated by Mr. Melvin Young and seconded by Ms. Angelina Brown o Miss Michelle Pryce was nominated by Mr. Patrick Rose and seconded by Miss Cheryl Hawkins. Miss Spencer gave instructions on how to complete the ballot and invited the new nominees to say a few words about themselves. While the ballot was being tallied the Chairman moved to the next item on the Agenda. 11 RESOLUTIONS The Chairman stated that there were two resolutions to be passed by the membership 1) Widening of the Bond 2) Board of Directors Term of Office He read the resolutions and explained the need for the changes. There were some queries from the floor which were clarified by the chairman. The Chairman invited Miss Spencer to conduct voting for the resolutions. Miss Spencer first gave the results of the voting for the Supervisory Committee Persons elected to serve on the Supervisory Committee for one year were as follows: Mrs. Althea Cole-Martin Miss Angelina Brown Mr. Lenson Lee Mrs. Audrey Jones-Francis Mrs. Nadine Gordon Minutes of 74th Annual General Meeting
2022 Annual Report 12 75th Annual General Meeting Miss Spencer then invited Mr. Brown to conduct the election for the resolutions. Mr. Brown stated that for the resolutions to be carried three-fourths of the membership present should vote in the affirmative for the motion to be carried. For the resolution for the widening of the bond 159 members were both online and in the room. For the motion to be carried 120 people needed to vote for the resolution. Only 104 voted in the affirmative, therefore the motion was not carried. For the second resolution only 54% of the members voted, therefore the resolution was not carried. The motion for the acceptance of Mr. Norris Gilbert and Mr. Damon Escoffery as delegates to the Jamaica Co-operative Credit Union League’s Annual General Meeting was moved by Miss Karen Arscott and seconded by Miss Cheryl Hawkins. 12 ANY OTHER BUSINESS o There was a commendation from Mrs. Josiene Brown Nelson Board and staff performance for the year under review o Miss Stacy Ann Bartlett (overseas) wanted to know how she could get her PWD MasterCard. She was informed that she had to visit the office due to the pinning process. o Mr. Kenuth Jones asked when online banking will be implemented. The Chairman stated that this should be done in short order. o Mrs. Josiene Brown Nelson asked if the credit union can institute an ex-officio to the Board in the form of the immediate past President for one one-year tenure where the immediate past President would be a guiding hand for the new President coming in for his first term of office. The Chairman responded that the current rule does not allow for any director or anyone to sit as ex-officio director. However, the Board in its wisdom can co-opt or seek any advice at any time even to attend a meeting on a particular matter, but not with voting rights at any point in time. o Mr. Edward Forbes enquired what the Board is doing with the property at 60 Montgomery Avenue. The Chairman responded that the Credit Union is not allowed to hold real estate as an entity. o Miss Michelle Pryce queried if the new card, would give access to the shares and deposit accounts. The Chairman responded that it would only have access to the Deposit Accounts. o She also enquired if going forward will PWDCCU be using only hybrid meetings for the AGM or at some point going back to what we had obtained before. The Chairman responded that there were major benefits for the hybrid meeting as most persons in attendance were online. The Chairman thank the members for their attendance both virtually and in person and looked forward to continuing to serve a new set of Directors, 13 TERMINATION The 2022 AGM was terminated at 6:32 pm Minutes of 74th Annual General Meeting
OF DIRECTORS Board Norris Gilbert President Everton Walker Assistant Treasurer Everal Barnett Director Patrick Rose Vice President Grace Bailey Secretary Iolyn Donald Director Damon Escoffery Treasurer Geraldine Miles Assistant Secretary Melvin Young Director
2022 Annual Report 14 75th Annual General Meeting Report of the Board of Directors to the 75th Annual General Meeting In 2022, PWDCCU continued to remain resilient in a global economy that is now characterised by the COVID-19 pandemic. It was an interesting year for the Credit Union from the perspective of the many challenges and setbacks but also by the various successes experienced to elevate the Credit Union into a positive position. The Board of Directors, Management, Employees and Volunteers spent much of the time setting the tone for consolidation and treating with nonperforming loans in a climate where members were finding it hard or choosing to walk away from loan obligations. There is also the cost of treating with this delinquency. Our members were able to access loans at reduced rates and this helped to create an encouraging climate in which our members maintained their savings levels with the Credit Union and therefore assets increased to over half-billion dollars. The prudent management of our loan portfolio and the dedication and commitment of our members who remained steadfast and devoted. Our objectives of providing sound financial solutions, products, and support resulted in helping our members to make their dreams into their realities. Financial Performance For the financial year 2022 PWD’s focus was to keep the Credit Union in a stable environment and to satisfy our members’ short to medium-term needs while applying new technologies to improve and enhance existing ones. Much focus was also placed on new initiatives to drive new business to the entity. These measures were taken while protecting the assets of the Credit Union and continuing to support the existing business lines. We were still able to satisfy the needs of the members with increased use of technology and using the various media platforms to offer increased benefits in loans and savings products. Some of our overall financial results are depicted below: Table 1 Year 2017 2018 2019 2020 2021 2022 Membership 1,774 1,940 1,829 1,862 1,914 ϭ͕ϵϭϰ Voluntary Shares $231,503,000 $240,740,369 $247,378,061 $267,267,000 $281,521,000 ΨϮϴϳ͕ϭϳϳ͕ϭϴϰ Deposits $72,736,000 $75,608,303 $83,724,380 $96,122,642 $100,750,000 Ψϵϵ͕ϱϮϴ͕Ϯϱϵ Total Savings $304,239,000 $316,348,672 $331,102,441 $363,388,267 $382,271,986 Ψϯϴϲ͕ϳϬϱ͕ϰϰϯ Loans $302,287,000 $288,592,833 $291,412,746 $365,149,000 $390,951,440 Ψϯϴϲ͕ϳϲϮ͕Ϯϲϴ Assets $392,071,000 $403,337,533 $420,616,456 $456,024,363 $485,104,925 Ψϱϱϱ͕ϰϱϵ͕Ϭϰϲ Surplus $6,353,312 $1,785,594 $50,625 -$1,062,641 Ψϱ͕ϱϳϵ͕Ϭϳϵ ;ΨϭϬ͕ϭϬϳ͕ϴϰϭͿ Board of Directors Report Report of the Board of Directors To the 75th Annual General Meeting In 2022 PWDCCU continued to remain resilient in a global economy that is now characterised by the COVID-19 pandemic. It was an interesting year for the Credit Union from the perspective of the many challenges and setbacks but also by the various successes experienced to elevate the Credit Union into a positive position. The Board of Directors, Management, Employees and Volunteers spent much of the time setting the tone for consolidation and treating with nonperforming loans in a climate where members were finding it hard or choosing to walk away from loan obligations. There is also the cost of treating with this delinquency. Our members were able to access loans at reduced rates and this helped to create an encouraging climate in which our members maintained their savings levels with the Credit Union and therefore assets increased to over half-billion dollars. The prudent management of our loan portfolio and the dedication and commitment of our members who remained steadfast and devoted. Our objectives of providing sound financial solutions, products, and support resulted in helping our members to make their dreams into their realities. Financial Performance For the financial year 2022 PWD’s focus was to keep the Credit Union in a stable environment and to satisfy our members’ short to medium-term needs while applying new technologies to improve and enhance existing ones. Much focus was also placed on new initiatives to drive new business to the entity. These measures were taken while protecting the assets of the Credit Union and continuing to support the existing business lines. We were still able to satisfy the needs of the members with increased use of technology and using the various media platforms to offer increased benefits in loans and savings products. Some of our overall financial results are depicted below: Table 1 Year 2017 2018 2019 2020 2021 2022 Membership 1,774 1,940 1,829 1,862 1,914 1,914 Voluntary Shares $231,503,000 $240,740,369 $247,378,061 $267,267,000 $281,521,000 $287,177,184 Deposits $72,736,000 $75,608,303 $83,724,380 $96,122,642 $100,750,000 $99,528,259 Total Savings $304,239,000 $316,348,672 $331,102,441 $363,388,267 $382,271,986 $386,705,443 Loans $302,287,000 $288,592,833 $291,412,746 $365,149,000 $390,951,440 $386,762,268 Assets $392,071,000 $403,337,533 $420,616,456 $456,024,363 $485,104,925 $555,459,046 Surplus $6,353,312 $1,785,594 $50,625 -$1,062,641 $5,579,079 ($10,107,841) Norris Gilbert - President In 2022, PWDCCU continued to remain resilient in a global economy that is now characterised by the COVID-19 pandemic. It was an interesting year for the Credit Union from the perspective of the many challenges and setbacks but also by the various successes experienced to elevate the Credit Union into a positive position. The Board of Directors, Management, Employees and Volunteers spent much of the time setting the tone for consolidation and treating with non-performing loans in a climate where members were finding it hard or choosing to walk away from loan obligations. There is also the cost of treating with this delinquency. Our members were able to access loans at reduced rates and this helped to create an encouraging climate in which our members maintained their savings levels with the Credit Union and therefore assets increased to over half-billion dollars.
75th Annual General Meeting 2022 Annual Report 15 Table 2 – Percentage Growth over the years Year 2017 2018 2019 2020 2021 2022 Membership -0.11% 9.36% -5.72% 2.65% 2.79% 0.00% Voluntary Shares 5.74% 3.99% 2.76% 8.04% 5.33% 2.01% Deposits 20.27% 3.95% 10.73% 14.70% 4.81% -1.21% Total Savings 8.88% 3.98% 4.66% 9.72% 5.20% 1.16% Loans 11.16% -4.53% 0.98% 25.30% 7.07% -1.07% Assets 8.43% 2.87% 4.28% 13.25% 6.38% 14.50% Surplus -14.96% -71.90% -97.16% -2199% 625.02% -281.17% The growth figures in 2022 show positive changes in 3 areas and negative results in 3, in Table 2. The Credit Union made a deficit during the year when compared to the surplus in 2021. All the areas except assets had smaller growth than the previous year. Growth in Total Savings vs Loans PWD’s total savings grew by 5.2% to $386.7 million in 2022. This is an improvement of $4.43 million over the savings in 2021. The savings growth was consistent with the Jamaican credit union industry growth. Our loan balance decreased to $386.76 million in 2022 from $390.95 million in 2021. The loan reduction in 2022 was just 1.07%. This reduction was below Jamaica’s credit union industry average growth for the year. The growth in the year was due to reduced demands from members as well as the focus on managing delinquent loans to prevent them from moving to higher than 3% of gross loans. The Credit Union was able to satisfy the demand for 3,369 loans during the year 2022 which was just 3% higher than the number granted in 2021. The value of the new loans ΨϬ ΨϱϬ͕ϬϬϬ͕ϬϬϬ ΨϭϬϬ͕ϬϬϬ͕ϬϬϬ ΨϭϱϬ͕ϬϬϬ͕ϬϬϬ ΨϮϬϬ͕ϬϬϬ͕ϬϬϬ ΨϮϱϬ͕ϬϬϬ͕ϬϬϬ ΨϯϬϬ͕ϬϬϬ͕ϬϬϬ ΨϯϱϬ͕ϬϬϬ͕ϬϬϬ ΨϰϬϬ͕ϬϬϬ͕ϬϬϬ ΨϰϱϬ͕ϬϬϬ͕ϬϬϬ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ dŽƚĂů^ĂǀŝŶŐƐǀƐ͘>ŽĂŶĂůĂŶĐĞƐϮϬϭϳͲ ϮϬϮϮ >ŽĂŶƐ dŽƚĂů^ĂǀŝŶŐƐ Board of Directors Report
2022 Annual Report 16 75th Annual General Meeting granted for the year was however, $174.6 million, this was $6.5 million or 3.6% lower than what was granted in the previous year. The loan balances had a negative rate of increase in 2022 (-1.07%) over the 2021 growth (7.07%). The deposit in 2022 also declined over 2021 by 1.21% over the previous year where there was actual increase of 4.81%. Voluntary shares continue to have constant growth over the six-year period with 2.01% in 2022. ͲϭϬ͘ϬϬй Ͳϱ͘ϬϬй Ϭ͘ϬϬй ϱ͘ϬϬй ϭϬ͘ϬϬй ϭϱ͘ϬϬй ϮϬ͘ϬϬй Ϯϱ͘ϬϬй ϯϬ͘ϬϬй ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ 'ƌŽǁƚŚŝŶ^ŚĂƌĞƐ͕ĞƉŽƐŝƚƐĂŶĚ>ŽĂŶƐ sŽůƵŶƚĂƌLJ^ŚĂƌĞƐ ĞƉŽƐŝƚƐ >ŽĂŶƐ Ͳ ϱϬ͕ϬϬϬ͕ϬϬϬ ϭϬϬ͕ϬϬϬ͕ϬϬϬ ϭϱϬ͕ϬϬϬ͕ϬϬϬ ϮϬϬ͕ϬϬϬ͕ϬϬϬ ϮϱϬ͕ϬϬϬ͕ϬϬϬ ϮϬϭϳ ϮϬϭϴ ϮϬϭϵ ϮϬϮϬ ϮϬϮϭ ϮϬϮϮ dŽƚĂů>ŽĂŶƐ'ƌĂŶƚĞĚ Board of Directors Report
75th Annual General Meeting 2022 Annual Report 17 KZWKZdffi^K/>Zffi^WKE^//>/dz ƵƌŝŶŐϮϬϮϮ͕ĂLJĞĂƌƚŚĂƚ ǁĂƐĨŝůůĞĚǁŝƚŚŽŶŐŽŝŶŐĐŚĂůůĞŶŐĞƐǁŚĞƌĞƚŚĞĨŝŶĂŶĐŝĂůƌĞƐƵůƚƐǁĞƌĞŶŽƚ Ăůů ƉŽƐŝƚŝǀĞ͕ ǁĞ ƌĞŵĂŝŶĞĚ ƐƚĞĂĚĨĂƐƚ ĂŶĚ ĚĞĚŝĐĂƚĞĚ ƚŽ ŽƵƌ ŵĞŵďĞƌƐ ĂŶĚ ŽƵƌ ĐŽŵŵƵŶŝƚLJ͘ KƵƌ ƐƚƌŽŶŐ ďĞůŝĞĨ ŝŶ ďĞŝŶŐ Ă ƌĞƐƉŽŶƐŝďůĞ ďƵƐŝŶĞƐƐ ŝƐ ŐƌŽƵŶĚĞĚ ŝŶ ŽƵƌ ŽƌƉŽƌĂƚĞ ĂŶĚ ^ŽĐŝĂů ZĞƐƉŽŶƐŝďŝůŝƚLJ;^ZͿWŽůŝĐLJĂŶĚŝƐĂŶĐŚŽƌĞĚďLJŽƵƌĐŽƌĞǀĂůƵĞƐ͗ĨŝŶĂŶĐŝĂůƉƌƵĚĞŶĐĞ͕ƚƌĂŶƐƉĂƌĞŶĐLJ͕ ĨĂŵŝůLJͲŽƌŝĞŶƚĞĚ ĂŶĚĨƌŝĞŶĚůLJ͕ĐŽŵŵŝƚŵĞŶƚƚŽĞĚƵĐĂƚŝŽŶĂŶĚ ƉƌŽĨĞƐƐŝŽŶĂůŝƐŵ͘ ^,K>Z^,/WEzKhd,ffisffi>KWDffiEd Education has been a key beneficiary of the movement's co-operative social outreach over the years and as such, the PWD Co-operative Credit Union continues to invest in this sector as part of nation-building. PWD Co-operative Credit Union was able to offer two prestigious scholarships, The Donald E. Miller and the TOB Goldson Memorial to its member’s children who completed the PEP (Primary Exit Profile) exam at the Primary school level and will be entering the High School System from 1st to 5th forms. Additionally, the Stanley Williams and the Gloria Wilson Memorial grants were given to two of our members entering Tertiary Institution. A total amount of $200,000.00 was provided under the Scholarship and Tertiary Grant programme during the year. The two Scholarship Awarded were: Donald E. Miller – Dante Seaton – Ardenne High School TOB Goldson Memorial – Monique McLean – Ardenne High School Tertiary Grant Recipient September 2022 Stanley Williams Memorial – Jochelle Creary – University of Technology Gloria Wilson Memorial – Adrianne Hall – University of the West Indies Board of Directors Report
2022 Annual Report 18 75th Annual General Meeting Scholarship Holders as at September 2022 Tertiary Grant Recipients Since 2012 YEAR STANLEY WILLIAMS MEMORIAL GRANT GLORIA WILSON MEMORIAL GRANT 2012 Yola Ingleton Kimberley Cole 2013 2014 Anthony Cole Kevin Roy Johnson 2015 Darian SM Francis Amoy Williams McKenzie 2016 Mrs. Josiene Brown Nelson Tajera Douglas 2017 Mr. Rusean Lewis Ms. Stanesha Brown 2018 2019 Ms. Teniesha Powell Ms. Damoi Escoffery 2020 Ms. Peron Henry 2021 Ms. Chevelle Skervin Ms. Thelma Young 2022 Ms. Jochelle Creary Ms. Adrianne Hall Name of Scholarship Name of Student Name of Member /Parent Period of Scholarship School 1 TOB Goldson Memorial Monique McLean Ms. Oreta Spalding September 2022 to July 2027 Ardenne High School 2 Donald E. Miller / Gilbert O Rose Emelia McCausland Ms Shaunette Brown September 2018 to July 2023 Campion College 3 Monica Bolton Memorial Abigail Cato Ms Natalie Waldron September 2018 to July 2023 Immaculate Conception 4 Dudley M. Forrester Memorial Khallil McDonnough Ashiba Spence Glaves September 2022 to July 2024 Calabar High School 5 Minnette Jones Memorial Kayla Lyons Mr. Kingsley Lyons September 2020 to July 2025 Wolmers High School for Girls 6 RG Chambers Memorial Ashar Miller Ms. Miscaih Miller September 2020 to July 2025 Ardenne High School 7 Donald E Miller Dante Seaton Mr. Christopher Seaton September 2022 to July 2026 Ardenne High School Board of Directors Report
75th Annual General Meeting 2022 Annual Report 19 BOARD’S PERFORMANCE Our Governance Policy requires that the Board meets at least monthly and discharge its duties effectively, efficiently and in a timely manner. The Board also hold ad-hoc special meetings outside of the regular scheduled meeting. These meetings are called to discuss specific matters that are critical to the organization meeting its strategic objectives and goals. ŽĂƌĚDĞĞƚŝŶŐƚƚĞŶĚĂŶĐĞĨŽƌϮϬϮϭ EK͘ EĂŵĞƐ WŽƐŝƚŝŽŶƐ WŽƐƐŝďůĞ DĞĞƚŝŶŐƐ DĞĞƚŝŶŐƐ ƚƚĞŶĚĞĚ ϭ͘ EKZZ/^'/>ffiZd WZffi^/ffiEd ϵ ϵ Ϯ͘ WdZ/<ZK^ffi s/ffiWZffi^/ffiEd ϵ ϳ ϯ͘ DKEffi^K&&ffiZz dZffi^hZffiZ ϵ ϵ ϰ͘ ffisffiZdKEt><ffiZ ^^/^dEddZffi^hZffiZ ϵ ϱ ϱ͘ 'Zffi/>ffiz ^ffiZffidZz ϵ ϵ ϲ͘ 'ffiZ>/EffiD/>ffi^ ^^/^dEd^ffiZffidZz ϵ ϵ ϳ͘ Dffi>s/EzKhE' /ZffidKZ ϵ ϲ ϴ͘ ffisffiZ>ZEffidd /ZffidKZ ϵ ϳ ϵ͘ /K>zEKE> /ZffidKZ ϴ ϲ K/dhZ/ffi^ϮϬϮϮ EDffi^ DKEd,W^^ffi tz KZ'E/^d/KE ^KE/ZK,ffi :EhZz KhZd^DE'ffiDffiEdD/E :KEdh<ffiZ DZ, Zffid/Zffi – D/E͘ K&dZE^WKZdΘD/E/E' W,EffiZKffiZd^KE WZ/> Zffid/Zffi Ͳ WtKͲKWZffi/dhE/KE >hd,ffiZZKtE h'h^d Zffid/Zffi Ͳ Ed/KE>tKZ<^'ffiEz >z:KEffi^ ^ffiWdffiDffiZ D/E/^dZzK&tKZ<^ ,^^/D&h>dKE EKsffiDffiZ D/E/^dZzK&dZE^WKZdΘD/E/E' >ffiZd,E^KE EKsffiDffiZ Ε DZ>ffiEffi,hDW,Zffiz ffiffiDffiZ ^dDW K&&/ffiK&:D/ >/EffiddffiDWffi>> ffiffiDffiZ Zffid/ZffiͲD/E/^dZzK&dZE^WKZdΘ D/E/E' ZZ&><EKZ ffiffiDffiZ Zffid/Zffi Ͳ Ed/KE>tKZ<^'ffiEz “In another time, in a happier place, we’ll meet again.” The Board, Committees and Staff offer our condolences to the families and friends of our departed members. Board of Directors Report
2022 Annual Report 20 75th Annual General Meeting >ĞĂƌŶŝŶŐĂŶĚĞǀĞůŽƉŵĞŶƚ During the period all staff members were exposed to training spanning the area of anti-money laundering (AML), online banking, and enterprise risk management. With the full implementation of the new debit card, they also received training in MASTERCARD onboarding, and transaction monitoring. Education and Member Relations With the use of emails, SMS text messages and other social media platforms, we continue to make efforts to ensure that our members are always informed on the various loans and benefits that are available at the Credit Union and the overall industry. Our new look website is also active and provides useful information to users on the products and services and frequent notices. The Way Forward The Credit Union’s bond now includes all employees of a Ministry, Department or Agency of Government in Jamaica. We have placed as a strategic priority, the targeting of these individuals as potential members for providing financial services. We are now poised to offer most of our services globally through expanded, communication and technological infrastructures to ensure that our members are served in a safe, efficient and effective environment. The software purchased, as well as further development of existing technologies will aid in the preparation of PWD for this and the next generation of membership. We recognize and appreciate that our growth for 2022 was due largely to the trust that our members have in the sound and prudent management of the Credit Union. We are committed in 2023 and beyond to build on that trust and loyalty and will seek to expand our membership. Appreciation The Board of Directors wishes to convey sincere gratitude to the members who continued to conduct their business with the credit union throughout the year. We would also like to thank the management of our main sponsors, the then Ministry of Transport and Mining and the National Works Agency for their continued support. Our gratitude is also extended to the many individuals and institutions such as: Jamaica Cooperative Credit Union League, Cumax Wealth Management, Quality Networks Limited, Cuna Caribbean, Jamaica Cooperative Insurance Agency, the Department of Cooperatives and Friendly Societies, Smith and Associates, Bank of Nova Scotia, Sagicor Bank, and all others who worked with the PWD Cooperative credit Union throughout the year. Our greatest appreciation goes out to the Staff, and the Credit and Supervisory Committees who have given yeoman service to the credit union so that it remains the institution of choice for our members. NGilbert Norris Gilbert President Board of Directors Report
Credit Union Staff Fern Graham General Manager Elveda Morris Kerry-Ann Russell-Bramwell Kevin Wedderburn Accountant Grace McKenzie Peta-gaye Cargill-Stewart Dawn Benjamin-Simonds Jodian Campbell Leonie Martin-Thompson Angella Gentles-Roache
COMMITTEE Credit Janet Stewart Chairperson Natalie Waldron-Cato Kerriann Clarke Secretary Wayne Walton Paula Hamilton
2022 Annual Report 24 75th Annual General Meeting Report of the Credit Committee Credit Committee Members 1. Janet Stewart – Chairperson 2. Kerriann Clarke Henry – Secretary 3. Paula Hamilton 4. Wayne Walton 5. Natalie Cato The Credit Committee is pleased to welcome all to the 75th Annual General Meeting of the PWD Cooperative Credit Union Ltd. The Credit Committee is comprised of the five volunteers listed above. The committee met weekly to review loan applications and met with members experiencing challenges with their applications and approved loans. The committee has oversight responsibilities for the following areas:- Approving and ratifying all loans above shares while ensuring all loans within shares are met; Complying with legal requirements and ensuring compliance; Respecting and maintaining the confidential nature of the information; Following established policies and procedures; Maintaining objectivity in their analyses; Assessing and recommending loans to the Board as necessary; among others. The Credit Committee remained focused as we continue to serve our valued customers, responding to the financial needs of its members and provided quality service and support throughout the 2022 calendar year. There was a marginal increase of 1% in the number of loans granted by the Credit Committee, moving from 3,336 in 2021 to 3,370 in 2022. Loan Analysis A total of 3,370 loans were disbursed for the period which amounted to approximately $174.64M. The top three loans disbursed for the period were Personal Expenses, Motor Vehicle Purchase and Report of the Credit Committee
75th Annual General Meeting 25 2022 Annual Report repairs, and Consolidation of Debts. These three loans accounted for 62.8% of the total value of loans. $ 26.31 , 15.1% $2.45 , 1.4% $19.22 , 11.0% $1.12 , 0.6% $1.49 , 0.9% $21.85 , 12.5% $7.84 , 4.5% - , 0.0% $3.16 , 1.8% $1.10 , 0.6% $3.41 , $2.0% $61.51 , 35.2% $1.51 , 0.9% $0.62 , 0.4% - , 0.0% $0.72 , 0.4% $5.12 , 2.9% $17.29 , 9.9% Loan Disbursement - January to December 2022 $J'000 Consolidation of Debts Purchase of Land & Building Home Improvement Agriculture Medical Expense Motor Vehicle Purchase and Repairs Educational Expense Vacation & Travel Household Appliance Purchase & Repairs Development of Business Refinancing Personal Expense Funeral Expense Legal Expense Marital Expense Insurance Pay Day Purchases/Emergency Report of the Credit Committee
2022 Annual Report 26 75th Annual General Meeting LOANS FOR THE PERIOD – JANUARY TO DECEMBER 2022 VS 2021 No. Loan Purpose/Description Count 2022 2021 2022 2021 1. Personal Expense 1,829 1,701 61,451,582.81 62,274,076.45 2. Consolidation of Debts 85 88 26,310,719.40 21,659,507.88 3. Motor Vehicle Purchase and Repairs 45 33 21,852,500.00 24,505,499.00 4. Home Improvement 47 52 19,216,831.29 14,692,231.69 5. Purchases/Emergency 692 691 17,292,789.59 16,459,883.67 6. Educational Expense 59 64 7,836,150.00 11,207,901.61 7. Pay Day 540 585 5,105,500.00 5,528,500.00 8. Household Appliance Purchase & Repairs 13 19 3,161,012.70 1,897,072.70 9. Purchase of Land and Building 3 2 2,453,000.00 1,020,000.00 10 Funeral Expense 9 2 1,508,525.00 510,000.00 11 Medical Expense 22 41 1,486,250.00 5,684,460.53 12 Agriculture 3 - 1,120,000.00 - 13 Development of Business 1 8 1,100,000.00 3,931,000.00 14 Refinancing 6 24 3,408,665.06 13,896,797.37 15 Legal Expense 2 3 620,000.00 1,600,000.00 16 Insurance 14 18 717,441.64 2,032,392.58 17 Vacation and Travel 0 4 - 248,000.00 18 Marital Expense 0 1 - 250,000.00 TOTAL 3,370 3,336 174,640,967.49 187,397,323.48 Top three Loans With regards to the top three (3) loans of the Credit Union, a total of $109.6M was disbursed during the period under review, which represents a marginal increase of 1.07% over the $108.44M disbursed in the 2021 financial year. The records further showed Personal Expense Loans ($61.45M) and Motor Vehicle Purchase and Repairs Loans ($21.85M) were 1.32% and 10.58% below the $62.27M and the $24.51M disbursed in 2021, respectively. On a more positive note, Consolidation of Debt Loans ($26.31M) was 21.47% in excess of the $21.66M disbursed last year. Report of the Credit Committee
75th Annual General Meeting 27 2022 Annual Report $165,000,000.00 $170,000,000.00 $175,000,000.00 $180,000,000.00 $185,000,000.00 $190,000,000.00 2022 2021 Year Total Value of Loans 2022 vs 2021 2022 2021 Report of the Credit Committee
SUPERVISORY Committee Althea Cole-Martin Chairperson Nadine Gordon Angelina Brown Secretary Lenson Lee Audrey Jones-Francis
75th Annual General Meeting 29 2022 Annual Report Report of the Supervisory Committee for the 75th Annual General Meeting We report on our stewardship for the period January through to December 2022. At the 74th Hybrid Annual General Meeting held on Wednesday, 2022 September 21 at the Spanish Court Hotel, 1 St. Lucia Avenue, Kingston 10 the following officers were elected to serve on the Supervisory Committee for one (1) year: ✓ Mrs. Althea Cole-Martin ✓ Miss Angelina Brown ✓ Mrs. Audrey Jones Francis ✓ Mr. Lenson Lee ✓ Miss Nadine Gordon Meetings are held on Mondays and Wednesdays. Report of attendance of the Supervisory Committee for the period January to December 2022 is outlined below: Member Position Number of Possible Meetings Number of Meetings Attended Melvin Young Chairman 66 57 Angelina Brown Secretary 79 52 Althea Cole-Martin Member 78 61 Lenson Lee Member 78 70 Audrey Jones Francis Member 79 48 Nadine Gordon Member 13 13 *Mr. Melvin Young served January – September. **Miss Nadine Gordon was elected on 2022 September 21. *** Mrs. Audrey Jones Francis was on sick leave (COVID-19 admission) and vacation leave during the period. ****Mrs. Althea Cole-Martin was on vacation during the period. *****Ms. Angelina Brown was on vacation leave during the period. Althea Cole-Martin - Chairperson Report of the Supervisory Committee
2022 Annual Report 30 75th Annual General Meeting Scope of Work During the period under review, the committee was tasked to perform the following duties as per the mandate with oversight of the Credit Union's operations and providing objective evaluations. Some of the areas that were examined are listed below: Reviewed Internal Control Systems Verification of Payment Vouchers Examined Loan Applications Conducted surprise cash count. Prepared and submitted Monthly reports to the Board of Directors Requested management response on audit findings & follow-up on previous External Audit Reports. Observations As the world reverted to some level of normalcy in the aftermath of the Coronavirus pandemic, the PWD Co-operative Credit Union Limited also transitioned to normal business operations. The Committee analyzed the performance of the PWD Co-operative Credit Union in the areas mentioned above and is reasonably satisfied that the internal controls implemented by Management to safeguard the assets of the Credit Union were satisfactory. There was general adherence to the established policies, procedures, and standards. Most of our concerns brought to the attention of Management were satisfactorily addressed. Others are ongoing. Acknowledgment We thank the Board of Directors, the hard-working and committed staff, and the other volunteers for their assistance throughout the year. We really appreciate the membership's faith in electing us to serve in this capacity. Althea Cole-Martin Chairperson Report of the Supervisory Committee
2022 Annual Report 32 75th Annual General Meeting PWD Cooperative Credit Union Ltd Treasurer’s Report For the year ended December 31, 2022 For the year 2022, PWD Credit Union’s financial performance was focused on consolidation and the protection of the assets and therefore a deficit of $10.1 million was realized. The following areas contributed to the financial performance. Revenue For the year the Credit Union earned a total operating income of $70.79 million. This is $3.08 million or 4.55% more than the year 2021. The revenue distribution was as follows: Loan and Advances –for the year was $66.86 million, which was $3.97 million or 6.33% above 2021. Non-Interest Income for the year was $3.328 million or 9% below last year 2021. NonInterest Income includes; service charges, fees, commissions, and rental income. - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 2020 2021 2022 Total Revenue vs Expenditure Total Expenses Total Revenue Damon Escoffery - Treasurer Treasurer’s Report
75th Annual General Meeting 33 2022 Annual Report Expenses The total expenses for the year 2022 were $72.96 million. This was $15.03 million or 26% above the year 2021. Interest Expense for the year 2022 was $10.25 million. This was $5.00 million above 2021. The major contributing factors were the increased cost of debt that we had to borrow to ensure that we continue to meet our regulatory liquidity requirement. Operating Expenses for the year 2022 were $62.71 million. This was $10.02 million or 19% above that of 2021. The major increases were in; staff costs (increased by $2.8 million), Administrative Expenses (increased by $3.9 million), and Representation and Affiliation (increased by $3.4 million). BALANCE SHEET Assets At the end of 2022, the Credit Union had Total Assets of $555.46 million. This is an increase of $70.35 million or 15% over the previous year. The total assets comprise of: Financial Investments were $60.73 million, an increase of $24 million or 60% over last year. Investment Property was $38.7 million, this is $29.43 million over 2021. The increase amount is due to the valuation of the Montgomery Avenue property. Non-Current Assets in 2022 are $17.64 million. This increased by $8.8 million or 100% over 2021. Liabilities At the end of 2022, the liabilities of the Credit Union were $467.2 million. This is an increase of $55.75 million in comparison to the previous year. Capital & Reserves Capital and Reserves amounted to $88.2 million. This is $14.61 million more than 2021. The Institutional Capital is $47.18 million, and the ratio is at 8.49% which satisfies the regulatory requirement of more than 8% of Total Assets. Treasurer’s Report
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Financial Statements December 31, 2022 Smith & Associates Chartered Accountants 16 Hope Road Kingston 10
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited December 31, 2022 CONTENTS PAGE Report of the Independent Auditors ...................................................................................................................................................................................................1 ...................................................................................................................................................................................................Statement of profit and loss and other comprehensive income 4 Statem ..................................................................................................................................................................................................ent of Financial Position 5 - 6 Statem ...................................................................................................................................................................................................ent of changes in equity 7 ...................................................................................................................................................................................................Statement of Cash Flows 8 Notes to the Financial Statements ..................................................................................................................................................................................................9 - 56
FINANCIAL STATEMENT
FINANCIAL STATEMENT Report of the Independent Auditors Responsibility of Management and those charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing P.W.D. Co-operative Credit Union Limited ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Credit Union or to cease operations, or have no realistic alternative but to do so. Those charged with governance are responsible for overseeing P.W.D. Co-operative Credit Union Limited's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error in economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Credit Union’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Credit Union’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Credit Union to cease to continue as a going concern. 2
FINANCIAL STATEMENT
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Statement of Profit or Loss and Other Comprehensive Income For the Year Ended December 31, 2022 Interest Income calculated using the effective interest rate method: Note 2022 $ 2021 $ Interest Income / (expense) Loans and advances to members 6. 66,857,264 62,879,764 Liquid assets 6. 1,794,006 1,166,228 Financial investments 6. (1,181,341) (12,272) 67,469,929 64,033,720 Interest Expense Savings deposits 7. 2,836,960 2,248,800 Interest on voluntary shares 7. 2,656,254 2,764,933 Other interest expense 7. 4,757,180 230,063 (10,250,394) (5,243,796) Net Interest income before provision for loan losses 57,219,535 58,789,924 (Increase) / Decrease in provision for loan losses 9.d. (7,447,561) (4,208,093) Net interest income after provision 49,771,974 54,581,831 Non-interest income Dividend income - 673,649 Rental income -investment property 960,000 960,000 Other (expenses) / income 2,368,514 2,426,050 Non-interest expense Loss in market value of investment - (373,348) Total non-interest income / (expense) 3,328,514 3,686,351 Gross margin 53,100,488 58,268,182 Less operating expenses 8. 62,708,329 52,689,103 Net (loss) / income before Honoraria (9,607,841) 5,579,079 Honoraria 26. (500,000) - Net (Loss) / income after Honoraria (10,107,841) 5,579,079 Other comprehensive income Items that will not be classified subsequently to profit and loss: Investment property revaluation reserve 30,402,244 - Actuarial gain / (loss) on obligation 16,341,000 (278,000) Actuarial gain / (loss) on Plan Asset (5,116,000) (2,432,000) Change in effect of asset ceiling (15,838,000) 3,186,000 Total other comprehensive (loss) / income 25,789,244 476,000 Net profit, being total comprehensive income for the year 15,681,403 6,055,079 The accompanying notes form an integral part of these financial statements 4
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Statement of Financial Position December 31, 2022 Note 2022 $ 2021 $ ASSETS Non-current assets Earning assets Loans to members 9. 386,762,268 390,951,440 Financial investments 10. 60,729,824 36,678,663 Investment property 11. 38,735,833 9,298,878 Total non current, earning assets) 486,227,925 436,928,981 Non Earning assets Property, plant and equipment (net) 12. 5,310,006 7,715,955 Retirement benefit asset 13. 2,809,871 7,522,871 Total non-current, non-earning assets) 8,119,877 15,238,826 Total non-current assets 494,347,802 452,167,807 Current assets Earning assets Liquid assets 14. 41,494,876 23,696,978 Bank and cash 15. 1,976,571 423,438 Total current, earning assets 43,471,447 24,120,416 Non-earning assets Bank and cash 15. 11,096,936 3,308,144 Receivables 16. 6,542,861 5,508,558 Total current, non-earning assets 17,639,797 8,816,702 Total current assets 61,111,244 32,937,118 TOTAL ASSETS 555,459,046 485,104,925 The accompanying notes form an integral part of these financial statements 5
FINANCIAL STATEMENT
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Statement of Equity For the Year Ended December 31, 2022 Permanent Shares $ (note13) Statutory & Legal Reserves $ (note 13) Total Institutional Capital $ (note 13) Retirement Benefit Reserve $ (note 19) Revaluation Reserve $ (note 20) Other Reserves $ Accumulated surplus/ (deficit) $ Total nonInstitutional Capital $ Grand Total $ Balance as at December 31, 2020 5,560,482 38,925,243 44,485,725 - 6,958,871 9,882,558 7,875,752 (402,317) 24,314,864 68,800,589 Surplus for the year - - - - - - - 5,436,646 5,436,646 5,436,646 Shares issued and transferred 86,873 - 86,873 - - - - - - 86,873 (20% of net income before honoraria) statutory reserve transfer - 992,129 992,129 - - - - (992,129) (992,129) - Transfer to retirement benefit reserve - - - - 564,000 - - - 564,000 564,000 Entrance Fees - 5,000 5,000 - - - - - - 5,000 Other reserves (Payments) - - - - - - (1,285,578) - (1,285,578) (1,285,578) Balance as at December 31, 2021 5,647,355 39,922,372 45,569,727 - 7,522,871 9,882,558 6,590,174 4,042,200 28,037,803 73,607,530 Total comprehensive income for the year - - - - - - - 15,681,403 15,681,403 15,681,403 Remeasurement of defined benefit pension plan - - - - (4,613,000) - - 4,613,000 - - Asset appreciation revaluation reserve - - - - - 30,402,244 - (30,402,244) - - Transferred to inststitutional reserve - 1,477,464 1,477,464 - - - - (1,477,464) (1,477,464) - Shares issued and transferred 125,449 - 125,449 - - - - - - 125,449 Entrance fees - 3,250 3,250 - - - - - - 3,250 Amount paid in donation - - - - - - - (50,000) (50,000) (50,000) Movement in other reserves (Payments) - - - - - - - (388,528) (388,528) (388,528) Scolarships paid - - - - - - - (200,000) (200,000) (200,000) Dividened on permanent shares - - - - - - - (564,735) (564,735) (564,735) Balance as at December 31, 2022 5,772,804 41,403,086 47,175,890 - 2,909,871 40,284,802 6,590,174 (8,746,368) 41,038,479 88,214,369 The accompanying notes form an integral part of these financial statements 7
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Statement of Cash Flows For the Year Ended December 31, 2022 2022 $ 2021 $ Cash flows from (used in) operating activities Net profit for the year 15,681,403 5,436,647 Adjustments to reconcile net (loss)/ profit for year to net cash provided by operations Interest received 67,153,750 63,134,598 Adjustments for interest earned (67,469,929) (64,033,720) Depreciation and amortisation expense 2,967,717 3,428,462 Retirement benefit reserve 4,713,000 (564,000) Adjustments for interest expense 10,250,395 5,243,795 Adjustment to reflect gain on revaluation of investment property (30,402,244) - Interest paid (10,598,905) (5,628,257) Total from operations (7,704,813) 7,017,525 Decrease/ (increase) in current assets Accounts receivables and prepayments (1,034,304) 1,849,709 Increase / (Decrease) in current liabilities Accounts payable and accruals 5,169,745 (2,860,408) Adjustments for non-cash loss in market value of investment - 373,348 Other adjustments for non-cash items 162,549 (192,042) Net cash provided by operations (3,406,823) 6,188,132 Cash flows from (used in) investing activities Financial investments (24,051,161) (20,148,558) Loans to members 4,189,172 (25,752,625) Purchase of property, plant and equipment (297,600) (3,835,333) Net cash flows from (used in) investing activities (20,159,589) (49,736,516) Cash flows from (used in) financing activities Members' voluntary shares 5,656,151 14,255,408 Members' savings deposit (1,222,694) 4,628,311 Increase in Permanent share capital 125,449 86,875 Entrance Fees 3,250 15,450 Proceeds from borrowings 46,144,080 8,247,258 Net cash flows from (used in) financing activities 50,706,236 27,233,302 Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents 27,139,824 (16,315,082) Cash and cash equivalents at beginning of period 27,428,560 43,743,642 Cash and cash equivalents at end of period 54,568,384 27,428,560 The accompanying notes form an integral part of these financial statements 8
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Notes to the Financial Statements For the Year Ended December 31, 2022 1. Identification and principal activity P.W.D. Co-operative Credit Union Limited (the credit union) is registered under the Co-operative Societies Act of Jamaica. The registered office of the Credit Union is located at 147 Maxfield Avenue, Kingston 10. The Credit Union’s main activities are the promotion of thrift, the provision of loans to members exclusively for provident and productive purposes, and to receive the savings of its members either as payments on shares or as deposits. The Credit Union is exempt from Income Tax under Section 59 (1) of the Co-operative Societies Act and Section 12 of the Income Tax Act. The Credit Union employed 9 permanent persons as at December 31, 2022 (2021: 9). The Credit Union is a member of and is supervised by the Jamaica Co-operative Credit Union League (JCCUL). 2. Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and have been prepared under the historical cost convention. 3. IFRS compliance and adoption Standards, interpretations and amendments effective during the current year At the date of authorization of these financial statements, certain new standards, amendments and interpretations to existing standards have been issued which became effective during the current financial year, and which the Credit Union has not early adopted. The Credit Union has assessed the relevance of all such new standards, interpretations and amendments and has adopted the following as follows: Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 Effective for annual periods beginning on or after 1 January 2022. Key requirements The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment (PP&E), any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognises the proceeds from selling such items, and the costs of producing those items, in profit or loss. Transition The amendment must be applied retrospectively only to items of PP&E made available for use on or after the beginning of the earliest period presented when the entity first applies the amendment. Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37 Effective for annual periods beginning on or after 1 January 2022. 9
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Notes to the Financial Statements For the Year Ended December 31, 2022 3. IFRS compliance and adoption continued Standards, interpretations and amendments effective during the current year continued Key requirements In May 2020, the IASB issued amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a ‘directly related cost approach’. The costs that relate directly to a contract to provide goods or services include both incremental costs (e.g., the costs of direct labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfil the contract as well as costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. Transition The amendments must be applied prospectively to contracts for which an entity has not yet fulfilled all of its obligations at the beginning of the annual reporting period in which it first applies the amendments (the date of initial application). Earlier application is permitted and must be disclosed. Impact The amendments are intended to provide clarity and help ensure consistent application of the standard. Entities that previously applied the incremental cost approach will see provisions increase to reflect the inclusion of costs related directly to contract activities, whilst entities that previously recognised contract loss provisions using the guidance from the former standard, IAS 11 Construction Contracts, will be required to exclude the allocation of indirect overheads from their provisions. Judgement will be required in determining which costs are “directly related to contract activities”, but we believe that guidance in IFRS 15 Revenue from Contracts with Customers will be relevant. There is no transition relief for first-time adopters. 10
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Notes to the Financial Statements For the Year Ended December 31, 2022 3. IFRS compliance and adoption continued Standards interpretations and amendments issued but not yet effective At the date of authorization of these financial statements, certain new standards, amendments and interpretations to existing standards have been issued which were not effective at the date of the statements of financial position, and which the credit union has not early adopted. The credit union has assessed the relevance of all such new standards, interpretations and amendments, has determined that the following may be relevant to its operations and concluded as follows: Classification of Liabilities as Current or Non-current - Amendments to IAS 1 Effective for annual periods beginning on or after 1 January 2023. The IASB has tentatively agreed to defer the effective date to 1 January 2023. Key requirements In January 2020, the Board issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: What is meant by a right to defer settlement That a right to defer must exist at the end of the reporting period That classification is unaffected by the likelihood that an entity will exercise its deferral right. That only if an embedded derivative in a convertible liability is itself an equity instrument, would the terms of a liability not impact its classification Right to defer settlement The Board decided that if an entity’s right to defer settlement of a liability is subject to the entity complying with specified conditions, the entity has a right to defer settlement of the liability at the end of the reporting period if it complies with those conditions at that date. Existence at the end of the reporting period The amendments also clarify that the requirement for the right to exist at the end of the reporting period applies regardless of whether the lender tests for compliance at that date or at a later date. Management expectations IAS 1.75A has been added to clarify that the ‘classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period’. That is, management’s intention to settle in the short run does not impact the classification. This applies even if settlement has occurred when the financial statements are authorised for issuance. 11
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Notes to the Financial Statements For the Year Ended December 31, 2022 3. IFRS compliance and adoption continued Standards interpretations and amendments issued but not yet effective continued Meaning of the term ‘settlement’ The Board added two new paragraphs (paragraphs 76A and 76B) to IAS 1 to clarify what is meant by ‘settlement’ of a liability. The Board concluded that it was important to link the settlement of the liability with the outflow of resources of the entity. Settlement by way of an entity’s own equity instruments is considered settlement for the purpose of classification of liabilities as current or non-current, with one exception. In cases where a conversion option is classified as a liability or part of a liability, the transfer of equity instruments would constitute settlement of the liability for the purpose of classifying it as current or noncurrent. Only if the conversion option itself is classified as an equity instrument would settlement by way of own equity instruments be disregarded when determining whether the liability is current or noncurrent. Unchanged from the current standard, a rollover of a borrowing is considered the extension of an existing liability and is therefore not considered to represent ‘settlement’. Transition Many entities will find themselves already in compliance with the amendments. However, entities need to consider whether some of the amendments may impact their current practice. Entities need to carefully consider whether there are any aspects of the amendments that suggest that terms of their existing loan agreements should be renegotiated. In this context, it is important to highlight that the amendments must be applied retrospectively. Disclosure of Accounting Policies (Amendment to IAS!, Presentation of Financial Statements, and IFRS Practice Statement 2, Materiality Judgements) Effective January 1, 2023. The amendment continues the IASB Board's clarification on applying the concept of materiality. These amendments help companies provide useful policy disclosures including: requiring companies to disclose their material accounting policies rather than their significant accounting policies; clarifying that accounting policies related to imaterial transactions, other events or conditionsare themselves imaterial and do not need to be disclosed; and clarifying that not all accounting policiesthat relate to material transactions, other eventsor conditions are themselves material. The IASB Board also amended IFRS Practice Statement 2 to include guidance and examples on the application of materiality to accounting policy disclosures. 12
FINANCIAL STATEMENT P.W.D. Co-operative Credit Union Limited Notes to the Financial Statements For the Year Ended December 31, 2022 3. IFRS compliance and adoption continued Standards interpretations and amendments issued but not yet effective continued Defination of Accounting Estimates (Amendments to IAS 8, Accounting Policies, Changes in Accounting Estimates and Errors) Effetive January 1, 2023 The amendment clarifies how companies distinguish changes in accounting policies from changes in accounting estimates, with a primary focus on definition of and clariifications on accounting estimates. The distinction between the two is important because changes in accounting policies are applied retrospestively, wheras changes in accounting estimates are applied prospectively. The amendments clarify that accounting estimates are monetary amounts in the financial statements subject to measurement uncertainity. The amendments also clarify the relationship between accounting policies and accounting estimates by spesifying that a company develops an accounting estimate to achieve the objectives set out by an accounting policy. The credit union has concluded that all other standards, interpretations and amendments to existing standards which are published but not yet effective are either relevant to its operation but will have no material impact on adoption; or are not relevant to its operation and will therefore have no impact when they come into effect. This includes amendments resulting from IASB's ongoing improvement project. 4. Significant Accounting Policies a. Going concern These financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assumes that the company will continue to operate in the foreseeable future and will be able to realise its assets and discharge its liabilities in the normal course of operations. Should the company be unable to continue as a going concern, the basis of reporting the carrying values of assets may be adjusted. b. Presentation of financial statements The accounting policies adopted in the preparation of these financial statements are set out below. These accounting policies have been applied consistently to all the year’s presented, unless otherwise stated. i. Functional and presentation currency The financial statements are presented in Jamaican dollars, which is the company's functional and presentation currency. 13