contents · 2019-04-12 · contents ... s

Contents

National Anthem

Credit Union Prayer

Vision Statement

Mission Statement

Notice of Annual General Meeting

Standing Orders

Board and Committees

President’s Address

Minutes of Annual General Meeting

Report of The Board of Directors

Report of The Credit Committee

Report of The Supervisory Committee

Report of The Education Committee

Report of The Silver Club

Report of The Nominating Committee

Statement of Management Responsibilities

Auditors’s Report

Financials

Budget

Resolutions

Compliance and the Law

Founded Members

Members Testimonials

Notes

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CREDIT UNIONCO-OPERATIVE SOCIETY LTD

“On us you can rely”

Annual Report 2016

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Annual Report 2016



Annual Report 2016

Notice is hereby given that the 50th Annual General Meeting of the PSCU Credit Union Co-operative Society Limited takes place at The Southern Academy for the Performing Arts (SAPA), San Fernando on Saturday 16th April, 2016, commencing promptly at 10:00a.m.

AGENDA1. NATIONAL ANTHEM 2. INVOCATION a) Credential Committee’s Report b) Notice of Meeting c) Adoption of Standing Orders d) President’s Address e) Feature Speaker

3. MINUTES OF 49TH ANNUAL GENERAL MEETING HELD ON 19 APRIL 20154. BUSINESS ARISING FROM THE MINUTES5. REPORTS a) Board of Directors b) Credit Committee c) Supervisory Committee d) Education Committee e) Auditor’s Report / Financial Statements for the year ending 31 December, 20156. NOMINATING COMMITTEE’S REPORT AND NOMINATIONS7. ELECTIONS8. BUDGET FOR THE YEAR ENDING DECEMBER 31ST 20169. RESOLUTIONS10. AMENDMENT TO BYE-LAWS #2 and #2611. GENERAL BUSINESS12. CLOSING REMARKS

Members are requested to confirm their attendance at any of our Branches. Registration commences at 9:00 a.m. and ceases before the voting process.

MEMBERS ARE REQUIRED TO PROVIDE IDENTIFICATION FOR REGISTRATION AND TO BE SEATED BY 9:45AM ON 16th APRIL, 2016.

Notice Of Annual General Meeting

By Order of the BoardBRIAN LA ROCHE (Mr)SECRETARY

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Annual Report 2016

Standing Orders

Guidelines for Nominees

Persons wishing to serve should be:• Of sound mind• Knowledgeable and possess a sound understanding of the business of a Credit Union• Honest, possess integrity and of good repute• Prudent in the management of his/her own financial affairs

Additionally these persons should not:Have been engaged in unlawful business practices or possess an employment record which shows that he/she carriedout any act of impropriety in handling of his/her employer’s business;Have been convicted by a court for an offence involving violence, fraud, or any form of dishonesty.

Please note that:Directors are obligated to attend the monthly statutory meetings of the BOD and on other occasions as may be requiredThe Credit Committee usually meets twice weeklyThe Supervisory Committee usually meets twice weekly

Please note that Bye-Law 24 (a) iii of the PSCU Credit Union states:“No member shall serve both on the Board of Directors and the Credit Committee”.

1. (a) A member will stand when addressing the Chair and shall identify himself/herself. (b) Speeches are to be clear and relevant to the subject before the meeting.

2. A member’s contribution shall be clear and relevant to the subject before the Meeting.

3. A member shall address the meeting when called upon by the Chairman to do so, after which, he/she immediately take his/her seat.

4. No member shall address the Meeting except through the Chairman.

5. A member may not speak twice on the same subject except: (a) He/She is the mover of a motion - in which he has a right to reply, or (b) He/she rises to object or explain (with the permission of the Chair).

6. No speeches shall be made after the “question” has been put and carried or denied.

7. The Mover of a Procedural Motion - (Adjournment, Lay on the table, Motion to postpone) shall have no right of reply.

8. 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”).

9. (a) A member shall not call another member “to order” - but may draw the attention of the Chair to a “breach of order”. (b) In no event can a member call the Chair “to order”.

10. Only one amendment should be before the meeting at anytime.

11. When a motion is withdrawn, any amendment to it fails.

12. The Chairman has the right to a “Casting Vote”.

13. If there is equality of voting on an amendment, and if the Chairman does not exercise his casting vote, the amendment is lost.

14. Provision to be made for the protection by the Chairman for vilification (personal abuse).

15. No member shall impute improper motives against another member.

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Annual Report 2016

Board and CommitteeBOARD OF DIRECTORS EDUCATION COMMITTEEMrs. Yvette Hall President Mr. Stephen Creese ChairpersonMr. Stephen Creese Vice President Ms. Alana George SecretaryMr. Brian La Roche Secretary Ms. Margaret Parillon MemberMr. Hugh Clarke Asst. Secretary Dr. Janet Stanley-Marcano MemberMr. Derek Greaves Treasurer Mrs. Margaret Weston MemberMs. Gillian Viechweg Director Ms. Shirley Medford Director Mrs. Alison Alleyne-Young DirectorDr. Janet Stanley-Marcano DirectorMrs. Margaret Weston 1st Alternate

SUPERVISORY COMMITTEE NOMINATING COMMITTEEMr. Anstey L Payne Chairperson Ms. Lolitta Wheeler ChairpersonMrs. Cynthia Francis Secretary Mrs. Esther Mc Ewen Secretary Mrs. Miriam Mc Leod Member Mr. Victor Pilgrim Member

CREDIT COMMITTEE WAIVER COMMITTEEMs. Brenda Elwin Chairperson Mrs Yvette Hall MemberMrs. Charmaine Richardson Secretary Mr Derek Greaves MemberMrs. Gloria Melville Paul-Black Member Ms Susan Nurse MemberMrs. Kathy Ann St. Louis Member Ms. Brenda Roberts-George MemberMs. Ursula Mendonca 1st Alternate

OUT-GOING

BOARD OF DIRECTORS SUPERVISORY COMMITTEEMr. Stephen Creese Mr. Anstey L PayneDr. Janet Stanley-Marcano Mrs. Cynthia Francis Mr. Brian La Roche Mrs. Miriam Mc LeodCREDIT COMMITTEEMrs. Kathy Ann St. LouisMrs. Brenda Roberts-George

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Fellow Members

I am pleased to report that PSCU Credit Union Cooperative Society Limited. achieved another year of solid financial results in 2015. The credit union has managed to thrive despite the sustained harsh economic environment which prevails in Trinidad and Tobago. Our overall profitability was maintained largely because of our disciplined cost management focus while pursuing and achieving the organization’s strategic goals. The Credit Union demonstrated great strength and resilience with the loyal support of you our credit union members.

As at December 2015, we provided financial services and support to 22,925 members and accumulated $297,353,340 in total assets. Our loan portfolio increased to $239,234,312; total deposits to $61,111,372 and shares to $189,774,971 We are pleased to report an end of year net income earning of $8.9M. Our success was hard earned as the Trinidad and Tobago financial services sector is fiercely competitive and aggressive with both the banks and credit unions competing for a share of the same purses, yes your purses.

The Central Bank has formally confirmed that Trinidad and Tobago is in a recession. It is forecasted that world energy prices will remain depressed for another four years and that the Trinidad and Tobago economy will experience low growth during this period. What this means is that it is likely that we will see a high increase in unemployment, lack of affordable housing options and stagnant wages. Against this backdrop there would be a significant rise in the cost of living. VAT has already been added to 7000 new items. Foreign exchange to purchase much needed medication is currently not available. As government revenues continue to fall there is the likelihood that the social programmes that people have come to rely on may be negatively impacted.

I am urging you to take heed of these issues and exercise strong restraint in terms of your spending habits. Prepare a monthly budget of expenses and income to assist you in making prudent choices with regard to decisions on expenditure.

It simply cannot be business as usual. There has to be a drastic change in your spending and savings habits. Buy local; Grow food; become creative and find ways to increase your monthly income. Lean economic times are forcing all of us to adapt and adjust to successfully navigate the changed circumstances of the national economy. Tough times are ahead but please be assured that the Credit Union will do all within its power to provide you with the necessary support and assistance. You know we have your back.

Moving forward in 2016 we will continue to focus on building the prosperity of the credit union for future growth and sustainability through the fulfillment of our key strategic priorities:

• Build membership relationships based on the delivery of innovative financial products and services which are in sync with the changing needs of members • Increase member confidence in the strength and success of the credit union • Provide membership education to emphasize the cooperative philosophy and principles; savings for retirement, money management, debt reduction strategies and estate planning • Build technological capacities in all areas of the organization for increased efficiencies in our operations • Attract youth membership for the continued growth and sustainability of the credit union • Maintain a high performance work team with strong leadership competencies and financial knowledge. • Maintain a high performance work team with strong leadership competencies and financial knowledge.

President’s Address“Empowering Members to Achieve Financial Success.”

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President’s Address• Ecumenical services in Trinidad and Tobago• Youth event – Photo Competition “Snap, Submit and Win”.• Tobago health fair, Sports and family day. 5K walk-athon.• Gala Awards Ceremony and Dinner to honor the contributions made by members to the development of the Credit Union• Celebratory Cruise

As the winds of change blow across our beloved nation the Credit Union movement must play a critical role in the social and economic transformation of Trinidad and Tobago. The controversial 2011 Credit Union Bill has been withdrawn from the senate. We now have an oppor-tunity to ensure that any new bill that is drafted will contain provisions which will allow us to grow sustain-ably, remain loyal to our cooperative philosophy and values, and meet the needs of our members. Building and forging a stronger cooperative sector is important to us and we support the call to government for the return of the tax credit for savings on shares.

Despite the dismal news of a recession I am confident of our resilience as a people and our capacity to rise up and meet the challenges we now face. We are excited about the future and remain committed to working with you to strengthen our credit union. People build institutions. We will overcome, succeed and continue to grow.

PSCU would like to thank you our members for your continued loyalty to the credit union through the years. You are the owners of this organization and play a pivotal role in its growth and development. Remember our success is your success.

I further wish to take this opportunity to thank all mem-bers of staff who demonstrate on a daily basis through their hard work and dedication that they are doing their very best to ensure that this credit union remains relevant and successful for the next 50 years.

May God richly bless us all.

Mrs. YVETTE HALLPresident

The new reality of fierce competition has prompted radical changes in the Trinidad and Tobago financial services marketplace. Previously people had limited choices in the range of products and services offered. All that mattered in choosing a financial institution was that it was stable and secure. However with so many institutions with a solid reputation vying for the same customers those who succeed must differentiate their product offerings and standards of service. We also recognize that to remain relevant and competitive in the future we must engage our members on the social media platforms such as Facebook, Twitter, YouTube and LinkedIn to deepen our relationship and remain connected to you.

We do value you as a member and our goal is to be your primary financial institution through every stage of your life. In fact when you joined PSCU you became a member for life.

Please join us on Facebook and let us know how we can serve you today and the years ahead.

In these recessionary times it will be necessary for mem-bers of staff to get to know you better to understand your personal financial circumstances so that we may provide the most beneficial service that is suited to you. Youth membership programmes will also be conducted to assist young members in building a strong and secure future. These programmes will cover subject areas related to building life and social skills and financial literacy.

We have commenced the improvement of our online environment with the launch of our new website facility in 2015. Further upgrades to the computer information system would be completed in 2016 which will facilitate online banking services. This is expected to dramatically improve the ways and means by which you transact business with us. Improved technological capacity remains the key success factor in terms of long term strategy to improve efficiency in all aspects of our core operations.

2016 is a significant year in the history of the PSCU Credit Union. It is the year we celebrate the significant milestone of fifty (50) years. The theme of the 50th Anni-versary celebration is:

“Celebrating a Legacy, Preserving a Culture of Service.” Please join with us in the celebration of our history, growth and success. Some of the events which will be held to mark this occasion are:

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Annual Report 2016

Minutes of the Annual General Meeting1.0 COMMENCEMENT The meeting of the 2015 Annual General Meeting was held at Gaston Court, Gaston Street, Chaguanas. It was called to order by the President, Mrs Yvette Hall at 10:30 a.m. The National Anthem was sung by the assembly followed by the Credit Union Prayer.

2.0 CREDENTIAL REPORT The President Mrs. Yvette Hall informed the meeting that at 10:30 a.m. the Credential Report revealed that one hundred and ninety-seven (197) members had registered their attendance at the AGM.

3.0 READING OF THE NOTICE AND STANDING ORDERS The Notice of the Meeting, which had been duly published in accordance with the Bye-Laws of PSCU Credit Union Cooperative Society Limited, was then read by the Secretary, Mrs. Margaret Weston. This was followed by the reading of the Standing Orders.

The Standing Orders were accepted on a motion moved by Mr. Fitzherbert Phillips and seconded by Mr. Hugh Clarke.

THE PRESIDENT ADDRESSThe President complimented members of the Silver Club who were in attendance and sported their newly acquired T-Shirts. She further extended a warm welcome to the following invited guests:

In her address the President reported a successful year of solid financial results for PSCU in 2014. This perfor-mance was credited to sound management, prudent cost cutting and the dedicated work of members of staff.

She also indicated that the Society’s investments in new technologies would play a key role in keeping the CreditUnion relevant in the future. Steps were taken in 2014 to have the entire telephone system across all branch offices upgraded. This project would serve to improve the standard of customer service experienced by members.

The President also pointed out that Credit Unions were now operating in a more complex business environment with increased governance and regulatory requirements in addition to an uncertain economic environment. As a consequence the work processes and business systems of the past were proving to be irrelevant. The Credit Union therefore had to change its business strategies to ensure the continued growth and sustainability of the Credit Union in the future.

The President took the opportunity to speak about the proposed introduction of the 2011 Credit Union Bill which had been laid in the Senate. She identified some of the negative aspects of the Bill and the likely impact they would have on the Credit Union Movement if enacted in its present form.

She reminded members that PSCU would be celebrating fifty (50) years in 2016 and acknowledged the presence of two surviving foundation members of the Credit Union; Mr. CM John and Mr. Frank Clarke who carried membership numbers of No.2 and No.3 respectively.

She ended her address by conveying her gratitude to the members of the Board, Committees and Staff for their commitment and service to the Credit Union. She also acknowledged the presence of: Ms. Esme Raphael President of Central Finance Facility Ms. Evelyn Joseph Sagicor Life Insurance

ADOPTION OF THE AGM BROCHUREThe President apologized to the members for their late receipt of the AGM brochure. She proposed therefore that in fairness to the membership that there would be a twenty (20) minute adjournment to allow the membership to peruse the brochure.

The motion to adjourn the meeting for twenty (20) minutes was moved by Ms. Brenda Elwin and seconded by Mr. Hugh Clarke. The motion was carried. The meet-ing was adjourned at 11:10 a.m.

The President then reconvened the meeting at 11:30 a.m.

Mr. Ruthven Walker - Community Care Credit UnionMr. David Montgomery - D. Montgomery & CompanyMr. Commissiong - Representative of Sagicor LimitedMr. Keston Sealy - TATECO North Credit UnionMr. Nigel Matthews - NEM Consultants Limited.

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Annual Report 2016

Minutes of the Annual General MeetingREADING AND CONFIRMATION OF MINUTES OF THE 2014 ANNUAL GENERAL MEETING The President invited another motion to take the Minutes of the whole brochure as being read. A motion for the brochure to be taken as being read was moved by Mrs. Lolitta Wheeler and seconded by Mrs. Adana Murray. The motion was carried.

Omissions and Corrections(a) Page 13 under “Results”

The name of the Co-operative Officer from the Co-operative Division was spelt incorrectly. Shelly Charles should read “Shelley Charles”

(b) Under “Drawing and distribution of prizes” the list of sponsors should include “The Silver Club”,

(c) The time of adjournment of the AGM was omitted on page 13. Sentence inserted to read “The meeting was adjourned by the President, Mr. Stephen Creese at 4:35 p.m.”

(d) Under the paragraph “Dividend”: whereas the PSCU Credit Union Cooperative Society has realized a net surplus….It should read “$4,982,022” and not “$4,082,022”.

A motion for the adoption of the Minutes was moved by Mr. Gene Hutchinson and seconded by Fitzherbert Phillips. The motion was carried.

MATTERS ARISING FROM THE MINUTESThere were no Matters arising from the Minutes.

REPORT OF THE BOARD1. The report was presented by the President Mrs. Yvette Hall.

2. Omissions and Corrections a. Page 16 - Directors Meeting attendance: the asterisk at the end of the table did not refer to any name. It should have referred to “Yvette Hall, whose term of office commenced in April 2014.”

Mr. Fitzherbert Phillips enquired about the sale of the commercial lot of land located at the BacoletDevelopment.

The President stated that the Society had sold all the lots located at the Housing Development in Tobago except the Commercial lot in the vicinity of the Health Centre.

Upon enquiry from Mr. Fitzherbert Phillips, the Chair-man informed the meeting that CLICO had refunded all funds owed to the Society.

Mr. Hugh Clarke enquired of the status of the negotia-tions with BIGWU for a new collective agreement.

The President stated that the Credit Union was awaiting a response from the Union on the scheduled dates for commencement of the negotiations.

Mr. Bobby Charles requested details of the procedures followed by the Recoveries Officers in their collection efforts on delinquent loan accounts. He was informed of the procedures laid out in the approved Delinquency Policy.

Mr. Lennard Baldwin complimented the Board on the establishment of a Performance Management System. A motion for the adoption of the report of the Board of Directors was moved by Mr. Ainsworth Dalrymple and seconded by Mr. Fitzherbert Phillips.

Mr. Lennard Baldwin stated that an analysis of the delin-quent loans should be undertaken to discern whether any common factors were recurring in the loans which were delinquent.

REPORT OF THE CREDIT COMMITTEE1. The report was presented by the Chairperson, Ms. Brenda Elwin2. Omissions and Corrections There were no omissions and corrections

At the request of Ms. Dianne Lewis, Ms. Elwin clarified that housing loans related to those loans approved to members for the purpose of undertaking renovations on their homes.

The Chairperson, Ms. Elwin thanked the membership for giving the Committee the opportunity to serve and the Board, management and staff for their support.

A motion for the acceptance of the Credit Committee’s Report was moved by Mr. Fitzherbert Phillips and seconded by Ms. Ursula Mendonca. The motion was carried.

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Annual Report 2016

Minutes of the Annual General MeetingREPORT OF THE SUPERVISORY COMMITTEEMs. Cynthia Francis, Secretary, presented the report of the Supervisory Committee in the absence of the Chair-person Ms. Ingrid Andrews.

It was observed by Ms. Lolitta Wheeler that it would not have been possible for the Committee to carry out the range of the required Audit functions within the time frame of the number of recorded meetings stated in their report.

The membership of the AGM expressed some concern about the reduced number of meetings convened by the Committee in carrying out their functions.

Following a discussion of this issue a motion for the acceptance of the Report of the Supervisory Committee was moved by Ursula Mendonca and seconded by Hugh Clarke.

When put to the vote, however, 20 members voted to accept the report and 49 members voted against while there were 4 abstentions. The report of the Supervisory Committee was therefore not accepted.

In light of the AGM’s non-acceptance of the report, a motion regarding the non-payment of Honorarium to the members of the Committee was moved by Mr. Bobby Charles and subsequently withdrawn, following a discus-sion on the matter. Mr. Bobby Charles moved another motion for the issue of payment of honorarium to the members of the Committee to be considered by the Board of Directors and appropriate action taken. The motion was seconded by Mr Fitzherbert Phillips.

The motion was carried.

REPORT OF THE AUDITORSDirector, Ms. Gillian Viechweg, moved a motion to have the Agenda amended to allow the Audit Report to take precedence over the Report of the Education Committee. The motion was seconded by Mr. Ainsworth Dalyrmple. Mr. David Montgomery of D Montgomery and Company presented the Audit Report which consisted of the Consolidated Financial Statements as of 31 December 2014 and the Statements of the Comprehensive Income, Appropriated Funds and Cash Flows for the year ended in addition to a summary of significant accounting policies and other explanatory notes.

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In the opinion of the Auditor the financial position of PSCU Credit Union was fairly represented in all material aspects.

On a motion moved by Lolitta Wheeler and seconded by Fitzherbert Phillips the Auditor’s Report was accepted.

PRESENTATION OF THE FINANCIAL STATE-MENT ON THE 2015 BUDGETThe financials were presented by the Treasurer, Mr. Derek Greaves. A motion for the acceptance of the Financial Statements was moved by Mr. Daniel Maynard and seconded by Mr. Fitzherbert Phillips. The motion was carried.

THE REPORT OF THE EDUCATION COMMITTEEThe report was presented by the Vice President, Mr. Stephen Creese.

Mr. Fitzherbert Phillips complained about the failure of the Committee to provide quarterly updates to members on matters and events taking place at the Credit Union.

The Vice President promised to do so in the future electronically, through mass texting and the PSCU website.

Ms. Sylvia Edwards stated that she had been unable to attend the Children’s Christmas party and that she was experiencing some difficulty in obtaining her Children’s Toys at the Credit Union’s office in Port of Spain.

The President assured the member that she would be contacted next week and advised of a date when she would be given the toys.

The report was accepted on a motion moved by Mr. Ainsworth Dalyrample and seconded by Mr. Bobby Charles. The motion was carried.

REPORT OF THE TOBAGO ADVISORY COM-MITTEE This report was presented by the Chairperson, Ms. Joy Boatswain-George.

Mr. Fitzherbert Phillips requested that the Board recon-sider its decision with respect to the Commercial lot at Bacolet, Development.

The President stated that the Board would review its position regarding the sale of the land and take a decision which served the best interest of the membership. The membership would be informed of the decision in the matter.



Annual Report 2016

Minutes of the Annual General MeetingA motion for acceptance of the report was moved by Mr. Fitzherbert Phillips and seconded by Ms. Nicole Phillips. The motion was carried.

REPORT OF THE NOMINATING COMMITTEEThe report of the Nominating Committee was presented by the Chairperson Mrs. Lolitta Wheeler.

Based on an enquiry from Mr. Daniel Maynard, Ms. Wheeler stated that in accordance with Bye Law Section (8) (a), which required that active members must have purchased a minimum number of twelve (12) full shares within the calendar year at a value $5.00 each. All persons nominated for election must satisfy this require-ment or they would be disqualified.

A motion for acceptance of the report was moved by Mr. Bobby Charles and seconded by Mr. Fitzherbert Phillips. The motion carried.

ELECTIONSThe meeting was handed over to Mrs. Debra Moore, a former employee of the Election and Boundaries Com-mission (EBC) to conduct the elections.

The President informed the meeting that the Credential Report revealed that at that juncture 327 persons were present.

Ms. Moore informed members of the procedures for the actual voting.

Ms. Moore reminded the members that, notwithstanding the Report of the Nominating Committee, any member shall have the right to nominate from the floor of the AGM, other members for election to the Board and other Committees. All positions were then declared vacant.

Board of DirectorsThe following members were accepted by the Nominat-ing Committee for election to the Board of Directors: (a) Margaret Weston (b) Derek Greaves (c) Alison Alleyne-Young (d) Linda Waithe-Wells (e) Hugh Clarke (f) Fitzherbert Phillips (g) Roselyn Walcott

After a period of five (5) minutes in which no nomina-tions were made from the floor a motion was moved by Mr. Ronald Bobb that nomination cease. The motion was seconded by Mr. Derek Greaves.

Supervisory CommitteeThe following members were accepted by theNominating Committee for election to the Supervisory Committee: (a) Anstey Payne (b) Ingrid Andrews (c) Cynthia Francis (d) Miriam Mc Leod (e) Susan Duncan-Thomas

Mr. Vishnu Persad was nominated from the floor. He was nominated on a motion moved by Mr. Bobby Charles and seconded by Mr. Fitzherbert Phillips.

A motion for the close of nomination for the Supervisory Committee was moved by Mr. Bobby Charles and seconded by Mr. Ronald Bobb.

Credit CommitteeThe following members were accepted by the Nomina-ting Committee for the election to the Credit Committee: (a) Brenda Elwin (b) Charmaine Richardson (c) Ursula Mendonca (d) Donzella Moses (e) Gloria Melville Paul-Black

Ms. Shelley Slater was nominated from the floor by a motion moved by Ms. Audrey Holder and seconded by Mr. Michael Isaac.

A motion for the close of nomination for the Credit Com-mittee was moved by Ms. Audrey Holder and seconded by Mr. Michael Isaac. The motion was carried.

At the close of voting, the Chair was handed back to the President.

PRESENTATION OF THE 2015 BUDGETThe Budget was presented by the Treasurer, Mr. Derek Greaves. On completion of the presentation of the budget no comments or questions were asked by members. A motion for acceptance was moved by Mr. MarkOlliverie and seconded by Mr. Ronald Bobb.The motion was carried.

RESOLUTIONSThe following resolutions were read by the Secretary, Mrs. Margaret Weston:

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Annual Report 2016

Minutes of the Annual General MeetingDividendsWhereas the Board of Directors is committed to provide the members of the Society with a reasonable return on their investment and

Whereas the Society is steadfastly working towards providing its members with efficient member service in facilities which are customer-friendly and

Whereas the Board of Directors continue to keep pace with current statutory and topical issues within the finan-cial services sector and

Whereas the PSCU Credit Union Cooperative Society Limited has realized a Net Surplus of 7.7 million for the financial year ending 31 December 2014.

BE IT RESOLVED THAT:A dividend of 3% to be paid in cash, be declared on average shareholdings for 2014. I so move. The resolu-tion was seconded by Mr. Ronald Bobb. The resolution was carried.

HONOURARIUMWhereas the Board of Directors and other Statutory Com-mittees have performed with efficiency and dedication; and

Whereas the PSCU Credit Union Cooperative Society Limited achieved a Net Surplus $7.7 Million.

BE IT RESOLVED THAT:An honorarium of $200,000.00 be declared to be divided among the Board and Committees. I so move. The resolution was seconded by Mr. Ronald Bobb. The resolution was carried.

AUDITORS BE IT RESOLVED THAT:The Firm of PKF Internal Chartered Accountants and Burness Advisors be retained as Auditors of the Society for the financial year 2015.

I so move. The motion was seconded by Vishnu Seepersad.

The resolution was carried.

DRAWING AND DISRIBUTION OF PRIZESThe General Manager, Ms. Susan Nurse coordinated the drawing of numbers and the distribution of door prizes to

the successful members. She was assisted by the Opera-tions Manager, Ms. Lecia Celestine.

ELECTION RESULTSThe Returning Officer, Ms. Daphne Moore, announced the results of the elections as follows:

Board of Directors (a) Alison Alleyne Young - 93 (b) Derek Greaves - 87 (c) Hugh Clarke - 87 (d) Margaret Weston - 82 (e) Fitzherbert Phillip - 80 (f) Linda Waithe-Wells - 69 (g) Rosalind Walcott - 29

Supervisory Committee (a) Anstey Payne - 227 (b) Miriam Mc Leod - 190 (c) Cynthia Francis - 138 (d) Susan Duncan-Thomas - 95 (e) Ingrid Andrews - 86 (f) Vishnu Seepersad - 56

Credit Committee (a) Gloria Melville Paul-Black - 196 (b) Charmaine Richardson - 187 (c) Brenda Elwin - 174 (d) Urusla Mendonca - 122 (e) Donzella Moses - 108 (f) Shelly Slater - 67

A motion was moved for the destruction of the ballots by Director Gillian Viechweg and seconded by Director Shirley Medford. The motion was carried.

ANY OTHER BUSINESSThe President took the opportunity to thank the Visitors, Staff, Management, Committee Members, Board of Directors and the Membership for their contribution, cooperation and patience throughout the meeting and their support throughout the year.

There being no further business. The President adjourned the meeting at 4:30 p.m.

By Order of the BoardBRIAN LA ROCHE (Mr)SECRETARY

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Annual Report 2016

Report of the Board of DirectorsINTRODUCTIONThe Board of Directors is pleased to present the Annual Report on its performance for the period 01 January 2015 to 31 December 2015.

PSCU Credit Union Cooperative Society Ltd., during the financial period continued to follow its strategic objectives to achieve the successes recorded although the prevailing economic climate presented challenges. The Board and Management met in the last quarter of 2015 to reassess the position of the organization’s finances in line with its income and reduced expenditure based on advice from the Treasurer. This measure was successful in keeping the organization in good financial standing.

In spite of the continued prevailing low interest rates, the Society was able to achieve positive growth and remain viable and relevant. The growth in income is attributed to prudent strategic cost management, stringent internal controls and the realigning of operations which enabled us to withstand the fiercely competitive financial markets and meet the needs of the membership.

Group Performance highlights for 2015: o Net income earnings of $8.9 Million o Retained earnings increased from $8.5 million in 2014 to $9.3 Million in 2015 o Total loans increased from $226 million in 2014 to $239 Million in 2015 o Fixed Deposits assets moved from $59 million in 2014 to $61 Million in 2015 o Capital Ratios increased from 9.1% in 2014 to 16% in 2015 o The Credit Union’s total assets stand at $297 million at the end of 2015

Board of DirectorsFor yet another year the Board of Directors was entrusted with the responsibility for the overall management of the Society. As such, the Board of Directors continued to provide strategic direction to management and continued updating its systems of internal controls and supervised the management team for effective performances.

During the period 01 January 2015 to 19 April 2015 the Board comprised:

NAME POSITION

Mrs Yvette Hall President

Mr Stephen Creese Vice President

Ms Margaret Weston Secretary

Mr Derek Greaves Treasurer

Mrs Alison Alleyne-Young Assistant Secretary

Ms Gillian Viechweg Director

Dr Janet Stanely-Marcano Director

Mr Brian La Roche Director

Ms Shirley Medford Director

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Annual Report 2016

Report of the Board of DirectorsSubsequently to the Annual General Meeting which was held on Saturday 19 April 2015, an Inaugural meeting was held on 21 April 2015. The following persons comprised the new Board of Directors for the reporting period:

The Executive comprised Ms. Yvette Hall, Mr. Stephen Creese, Mr. Brian La Roche and Mr. Derek Greaves.

Directors Meeting AttendanceThe Board met formally monthly, while Special Board Meetings were scheduled to deal with matters arising out of statutory meetings. The following table summarizes the attendance for Directors and the Executive Committee during the fiscal period 2015:

NAME POSITIONMrs Yvette Hall President

Mr Stephen Creese Vice President

Mr Brian La Roche Secretary

Mr Derek Greaves Treasurer

Mr Hugh Clarke Assistant Secretary

Ms Gillian Viechweg Director

Dr Janet Stanely-Marcano Director

Mrs Alison Alleyne-Young Director

Ms Shirley Medford Director

Mrs. Yvette Hall 11 5 15

Mr. Stephen Creese 11 4 16

Mr. Brian La Roche 11 3 10

Mr. Derek Greaves 11 5 16

Mr. Hugh Clarke^ 6 2 na

Ms. Shirley Medford 10 3 na

Ms. Gillian Viechweg 9 2 na

Dr. Janet Stanley-Marcano 10 4 na

Mrs. Alison Alleyne-Young 9 4 na

Mrs. Margaret Weston* 9 2 na

NAMESBOARD (12) SPECIAL

(5)EXECUTIVE (16)

* Term of office ended on 21 April 2015 ^ Term of office commence on 21 April 2015

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Annual Report 2016

Report of the Board of DirectorsCommittees of the BoardThe Board delegated specific responsibilities to five (5) committees to assist in effectively fulfilling its mandate. In keeping with this mandate, Directors shared responsi-bilities on various Ad Hoc committees as follows:

i. Audit and Risk Committee This Committee continues to assist by overseeing the accuracy and effectiveness of the systems of financial reporting and internal controls. The Committee during the period, held several meetings to review the internal and external audit functions of the organiz- tion and make recommendations for improvements The Committee also reviewed the reports of the organization’s mid-year 2015 Audit and made assessments based on internal and industrial standards for improvement. This Committee continues to function in the best interest of the organization.

ii. The Governance/Legislative Committee This Committee is responsible for ensuring that effective governance, policies and procedures are consistent with the industry best practices and are implemented accordingly. The committee met and reviewed existing policies and procedures which are part of the organization’s mandate. Policies were drafted and approved by the Board of Directors based on recommendations from the Committee.

iii. The Human Resource Committee

This Committee continues to ensure that the Human Resource Management (HRM) policies are maintained consistently and revised when needed. The Commit- tee in 2015, played an integral role in the Negotia- tions, the streamlining the organization’s structure and integration of the PMS System for employees.

iv. The Waiver Committee

This Committee continues to meet and approve waivers based on the Credit Union’s Loan Policy. Two hundred and two (202) waivers were approved for the reporting period.v. Nominating Committee

This Committee is charged with the primary function of ascertaining whether members who offer themselves as candidates for the Board of Directors, Credit and Supervisory Committees are fit and proper to serve. The Committee met during the reporting period advising on training for elected members.

Director Orientation and TrainingMembers of the Board of Directors received training in various areas during the reporting period. Due to impend-ing economic challenges, the Society selected training programmes which would have allowed Directors to better equip themselves to manage and make better strate-gic decisions on behalf of the Society. The training included:-Programme Facilitator o Corporate Governance NEM Consultants o Effects of Falling Oil Prices in the Financial Sector & Credit Unions Central Finance Facility o Caribbean Fraud Conference Going Global o Housing Opportunities for Credit Unions Central Finance Facility o Finance for Senior Executives Institute of Chartered Accountants o Enhancing Board Performance Central Finance Facility o Unlocking the Potential of Credit Unions in Economic Times Central Finance Facility o PSCU Strategic Review Going Global

2015 Performance ObjectivesThe Credit Union is proud to report that the objectives outlined for the fiscal year 01 January 2015 to 31 Decem-ber 2015 were achieved. The hard work and dedication of the staff have once again resulted in the Credit Union achieving successful results and being able to compete against other institutions and remain viable.

The Credit Union’s Business Plan for 2015 identified the following performance objectives:1. To achieve a loan target of $80M2. To increase the Share base by 8% or 14.1 M on the share balance of $176.6 M in 2014. 3. Deposit target an increase of 5% or $2.9 M. 4. Reduce expenditure by 4% percentage point per year over the next four (4) years

Staff MattersThe Credit Union continues to promote an organization that is staff oriented with a focus on promotion and conti-nuity with the following:

16



Annual Report 2016

Report of the Board of Directors o New Appointment During the period under review Ms Lecia Celestine, Accounts Supervisor was promoted to the position of Operations Manager, PSCU Credit Union effective 05 January 2015.

o Contract Renewal Mr Michael Blache-Fraser, Finance Manager employment contract ended on 28 October 2015. His employment contract was renewed for a period of one (1) year effective 29 October 2015.

We wish to congratulate both Managers and wish them all the best as they continue to support the strategic focus of the organization.

RetirementPSCU continues to recognize our employees who have been committed to the Society and have served the organization over the years. The following employees retired after serving the Credit Union well and we wish them the best as the move on to another stage in life.

o Mr. Lennox Trotman served the Credit Union as a Driver at Head Office, Port of Spain for fourteen (14) years. o Ms. Cynthia Cadette-James served the Credit Union as a Maid/Cleaner at the San Fernando Branch for a period of twenty-one (21) years.

STAFF TRAININGPSCU remains committed to staff development and training. In this regard, in an effort to improve staff efficiency and effectiveness, members of staff received training in the following areas:

NEGOTIATIONSThe Board of Directors in conjunction with the Negotia-ting Committee concluded negotiations with the Banking and Insurance General Workers Trade Union (BIGWU) for a new Collective Agreement for the period 2013 – 2015. We settled at twelve percent (12%).

PSCU COMPREHENSIVE MAJOR GROUP HEALTH PLANPSCU continues to promote the Group Health Plan to members. CUNA introduced in the last quarter of 2015 a new part to the Family Indemnity Plan (FIP) called the Critical Illness (CI) Rider. It is only available to the Primary Insured Member who has access to a living benefit of up to $25,000 and a death benefit coverage value of $40,000. The FIP CI Rider covers five (5)conditions:• Cancer • Stroke• Heart Attack • Major Burns• Paralysis

The total benefit will be paid upon the diagnosis of one of the listed specified conditions. Upon death of the primary insured if a claim is not made under the rider plan all premiums paid will be refunded in addition to the payment of the policy. The plan is accessible to members who have not yet attained the age of sixty (60) years at the time of enrolment and is only available to Plan F as stated in the Policy Contract.

PSCU Onyx Visa/Debit Card The number of Onyx Visa cards issued for the reporting period was three hundred and sixty-three (363). The marketing of the cards via a promotion which ran for three (3) months in 2015 contributed to its overall success. The Society continues to encourage all members to use the Onyx Visa/Debit Card. It allows our members to shop online and access free point of sale purchases, wherever the card is accepted.

INFORMATION TECHNOLOGYThe Information Technology Department continues to support the organization by ensuring that the data and system processes are up to date and the highest levels of security is maintained. During the first quarter of 2015, the organization upgraded its Website ensuring that infor-mation regarding the Credit Union can be disseminated across the World Wide Web.

PROGRAMME FACILITATOR• Functions of the OSH Committee Arthur Lok Jack• Effective Suspicious Transaction/ Activity Report Credit Union League• Customer Service Professional Arthur Lok Jack• Leadership Training for Managers Leadership Training Institute• Delinquency Management Programme Credit Union League• Technology - The Future of Electronics ACUPTT• Running Effective Meetings Going Global• Diversify or Die EACTT• Appraisal Forum on the TTNGL IPO TTCUDIF• Effective and Accurate Minute Writing Employee Solutions Centre• A-Z Two Day Mortgage Financing Institute of Banking Workshop of T&T• Responsible Cooperative Governance T&T Chamber of Industry & Commerce

17



Annual Report 2016

Report of the Board of DirectorsDue to the introduction of new work processes, new software and the lack of integration with the existing information system platform, the organization had no choice but to upgrade from Trinergy. A new system called “Emortelle’ was researched and presented to the Board of Directors in the second half of 2015. The new system will facilitate online banking and will be capable of effecting paperless transactions resulting in greater efficiency throughout the organization.

MEMBERSHIPMembership in the Credit Union rose to 22,925 in 2015. This represents an increase of 765 members from 2014.

OBITUARIESThe Board of Directors wishes to convey its heartfelt condolences to the relatives of members who passed away during 2015. They are as follows:

8.0) FINANCIAL REVIEW 2015 FOR PSCU CREDIT UNION 8.1) ASSETS 8.1.1) During the year 2015 total assets of the credit union increased by $20.5 million or 7.4%, moving from $276.9 million in the year 2014 to $297.4 million in 2015. 8.1.2) This increase arose primarily due to the following factors: a) Member Loan Balances which increased by $14.2 million or 6.3%, from $225.0 million in 2014 to $239.2 million in 2015. b) Short Term Investments increased by $4.0 million or 22.2%, from $18.2 million in 2014 to $22.2 million in 2015. The continued improvement in PSCU's short term investments and cash positions reflects the attractive rates of return being offered on PSCU's share and deposit products, in addition to the prudent financial management employed across the organization to ensure value for money in all operations.

• Hazel Edwards • Lerone Guy• Fenwick Roberts • Carl Wells• Vernon Elcock • Lennox Braxton• Rachel Pierre • Augustus Caesar• Utrice Douglas • Leila Sylvester Hunte• Zoffany Sealy • Robert Moore• Ruffie Mohammed • Riley St. Clair• Jasmin Thurton • Joseph Mehandibaig• Kevin Morris • Claire Phillips• Donna Patton-Rojas • Erica Lewis• Parbatee Pallai • Monica Joshua• Berdette Bushell • Mervyn Henry• Jennifer Millington-Lake • Basnath Ramsingh• Marva Thomas-Yorke • Marjorie Applewhite• Dexter Scott • Julianna Jobe-Kirk• Emerson Ross • St Clair Dorant• Ratnee Dookie • Kelvin Peter• Ramdaye Jaglal • Stephen Peters • Arnold Gentle • Paulina Cole• Michael Miguel • Michelle Blackwell• Ulrica Cobb • Yvonne Scott-Taylor• Sylvia Moses • Marilyn Winchester• Kennrick Hall • Edward Ayres

Total PSCU Assets Increase

2011 206,908 9,659 5%2012 227,276 20,368 10%2013 252,765 25,489 11%2014 276,897 24,132 10%2015 297,353 20,456 7%

Year($000’) $000’ %

$- $50,000

$100,000 $150,000 $200,000 $250,000 $300,000

2011 2012 2013 2014 2015

$206,908 $227,276 $252,765 $276,897 $297,353

Total PSCU Assets ($000')

18



Annual Report 2016

Report of the Board of Directors8.2) LOANS TO MEMBERS 8.2.1) The membership loan portfolio increased from $225.0 million in 2014 to $239.2 million in 2015, an increase of $14.2 million or 6.3%.

8.2.2) Table 2 shows the growth in member loan balances. TABLE 2 - GROWTH IN MEMBER LOANBALANCES 2011 - 2015

Loan Balance IncreaseYear$000’ $000’ %

2011 152,817 15,838 12%2012 178,150 25,333 17%2013 206,117 27,967 16%2014 225,034 18,917 9%2015 239,234 14,200 6%

Deposits Increase/DecreaseYear$000’ $000’ %

2011 43,473 (1,985) (4%)2012 47,222 3,749 9%2013 52,554 5,332 11%2014 58,213 5,659 11%2015 61,111 2,898 5%

8.3) MEMBER DEPOSITS

8.3.1) At the end of December 2015, member deposits increased by $2.9 million or 5.0% compared with the end of December 2014, increasing from $58.2 million to $61.1 million as at December 2015.

8.3.2) The year-on-year slowdown in attracting new deposits was partially due to an increased focus on increasing PSCU's share portfolio, in addition to a reduction in PSCU's deposit rates in June 2015. PSCU's deposit rates remain very favorable in the local market relative to our industry peers.

8.3.3) Table 3 shows the growth in member deposits over the five year period 2011 to 2015.

TABLE 3 - GROWTH IN MEMBER DEPOSITS2011 - 2015

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000

2011 2012 2013 2014 2015

$43,473 $47,222 $52,554

$58,213 $61,111

Deposits $000'

8.4) FINANCIAL INVESTMENTS 8.4.1) During 2015, investments in financial instruments increased by $4.9 million or 25%, increasing from $19.3 million at December 2014 to $24.1 million at December 2015.

Subdued loan growth in 2015, steady growth in deposits and shares, and tight cost management has allowed PSCU's financial investment portfolio to grow by $4.9 million in 2015. 8.4.2) Table 4 shows the movement of these investments over the five year period 2011 to 2015.

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Annual Report 2016

Shares Increase Year$000’ $000’ %

2011 138,313 10,424 8%2012 151,274 12,961 9%2013 165,407 14,133 9%2014 176,552 11,145 7%2015 189,775 13,223 7%

Income Increase Year$000’ $000’ %

2010 22,223 1,988 10%2011 20,744 (1,479) (7%)2012 21,934 1,190 6%2013 24,634 2,700 13%2014 28,468 3,834 16%2015 31,256 2,788 10%

Investment Increase/DecreaseYear$000’ $000’ %

2011 25,759 (3,003) (10%)2012 18,348 (7,411) (29%)2013 10,767 (7,581) (41%)2014 19,251 8,484 79%2015 24,112 4,861 25%

Report of the Board of DirectorsTABLE 4 - MOVEMENT OF INVESTMENTS INFINANCIAL INSTRUMENTS 2011 - 2015

$0 $5,000

$10,000 $15,000 $20,000 $25,000 $30,000

2011 2012 2013 2014 2015

$25,759

$18,348

$10,767

$19,251 $24,112

Financial Investments $000'

8.5) MEMBER SHARES 8.5.1) In 2015 member shares increased by $13.2 million or 7.5% compared with 2014, moving from $176.6 million to $189.8 million in the year. Share growth was encouraging in 2015 due to a combination of strategically focused operations and marketing activities, attractive dividend rates, as well as a reduction in PSCU's deposit rates designed to incentivize members to invest on shares. This will continue to be a focus in 2016. 8.5.2) Table 5 shows the growth of shares over the period 2011 - 2015 TABLE 5 - GROWTH IN MEMBERS' SHARES 2011 - 2015

$0

$50,000

$100,000

$150,000

$200,000

2011 2012 2013 2014 2015

$138,313 $151,274 $165,407 $176,552

$189,775 Shares $000'

8.6) TOTAL INCOME

8.6.1) Total PSCU Credit Union income in 2015 was $31.3 m illion, up $2.8 milion o r 9.8% compared with 2014 when it was $28.5 million.

8.6.2) The f ollowing sources of income were responsible for t his movement:

a) Loan inte rest income represented 95% of total PSCU Credi t Union income, and in creased by $3.0 million or 11% in 2015, from $26.6 million in 2014 to $29.6 million in 2015.

b) Other / Miscellaneous income decreased in 2015 by $48.7 thousand or 3.3% to en d 2015 at $1.4 million. Relatively subdued loan performance would have significantly contributed to this reduction.

Table 6 shows the growth of total income over the period 201 1 - 2015.

TABLE 6 - GROWTH OF TOTAL INCOME 2011 - 2015

20



Annual Report 2016

Report of the Board of Directors

8.7) EXPENDITURE 8.7.1) During 2014 through prudent management of the financial resources, PSCU Credit Union was able to keep total expenditure to $20.8 million which was $230 thousand dollars less than the approved budgeted expenditure of $21.0 million. Of the $20.8 million total PSCU expenditure in 2014, $1.1 million represented an impairment loss on PSCU property based on updated valuations received in the financial year.

8.7.2) The principal items of expenditure are shown in table 7 which accounts for 75% of the total expenditure in 2014 for PSCU Credit Union.

TABLE 7 - PRINCIPAL ITEMS OF EXPENDITURE 2015

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

2011 2012 2013 2014 2015

$20,744 $21,934 $24,634

$28,468 $31,256

Income $000'

Items 2015 $ % of Total

1. Salary expense (incl. backpay) 9,090,345 41%2. Loan loss expense 1,283,369 6%3. Interest on Deposits 1,248,982 6%4. Depreciation 904,648 4%5. Severance expense 744,901 3%6. Rental of Buildings 604,164 3%7. CUNA Insurance 549,218 2%8. Telephone 540,522 2%9. Legal & professional fees 537,512 2%10. NIS - Employer's Contribution 506,500 2%11. Other Items 6,362,856 28%TOTAL EXPENDITURE 22,373,017 100%

Items 2015 $ % of Total 1. Salary expense 6,657,136 32%2. Loan loss expense 1,482,171 7%3. Depreciation 1,388,430 7%4. Interest on Deposits 1,257,654 6%5. Legal & professional fees 741,581 4%6. Rental of Buildings 609,592 3%7. Telephone 522,330 3%8. Severance expense 510,026 2%9. NIS - Employer's Contribution 459,541 2%10. Security 455,101 2%11. Other Items 6,732,546 32%TOTAL EXPENDITURE 20,816,108 100%

* These items are non-cash flow items.

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Annual Report 2016

50TH ANNIVERSARY CELEBRATIONSThe Board of Directors appointed a Committee, chaired by Ms. Margaret Weston to oversee 50 Anniversary celebration. The Committee submitted to the Board for its approval, the following planned events:

• Ecumenical Services in both Trinidad and Tobago • Youth Event - Photo Competition “Snap, Submit & Win” • Tobago Health Fair, Sports & Family Day at Heritage Park, Pigeon Point Tobago• Gala Awards Ceremony and Dinner to honour the contributions made by members to the development of the Credit Union• Celebratory Cruise

CLOSING REMARKSOn behalf of the Board of Directors, I take this opportunity to thank the General Manager, members of staff and members of the various Committees for their unwavering service commitment and dedication. Sincere appreciation is also extended to you our valued members of the Credit Union for your continued loyalty and support to the Society. 50 years strong and growing.


1. Salary expense (incl. backpay) 41%

2. Loan loss expense 6%

3. Interest on Deposits 6% 4. Depreciation 4%

5. Severance expense 3%

6. Rental of Buildings 3%

7. CUNA Insurance 3%

8. Telephone 2%

9. Legal & professional fees 2%

10. NIS - Employer's Contribution 2%

11. Other Items 28%

GRAPH 7 - Principle Items of Expenditure - 2015

1. Salary expense 32%

2. Loan loss expense 7%

3. Depreciation 7% 4. Interest on Deposits 6%

5. Legal & professional fees 4%

6. Rental of Buildings 3%

7. Telephone 3%

8. Severance expense 2%

9. NIS - Employer's Contribution 2%

10. Security 2%

11. Other Items 32%

Graph 7 - Principle Items of Expenditure - 2014

8.8) NON-PERFORMING LOANS 8.8.1) As at December 31st 2015, there were 563 non-performing loans amounting to $10.6 million whereas at the end of December 2014, there were 432 non-performing loans amounting to $9.6 million.

PSCU Credit Union's provision for bad debts for 2015 decreased to $5.0 million from $6.5 million in 2014, resulting from a loan write-off exercise that was completed in 2015 to the value of $2.8 million. Overall, the delinquency rate of 4.8% remains within recommended industry standards and PSCU will continue to work to reduce the number of delinquent accounts, while continuously improving PSCU's loan recovery effectiveness and reporting. TABLE 8: DELINQUENT LOAN PERFORMANCE 2011 - 2015

YEAR # OF DELINQ.LOANS

VALUE OF DELINQ.LOANS

SHARES OF NONPERFORMINGACCOUNTS $

LOAN LOSSPROVISION $

DELINQUENCYRATIO %

NON PERFORMINGLOANS MINUS

SHARES $

2011 446 4,174,246 200,206 3,974,040 3,696,297 3.002012 511 6,351,337 33,501 6,317,836 3,974,709 3.472013 546 8,352,079 605,894 7,746,185 5,053,195 3.672014 432 9,597,731 773,777 8,823,954 6,535,367 4.142015 563 11,528,107 943,582 10,584,524 4,981,823 4.82

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Annual Report 2016


9.0) ACKNOWLEDGEMENTS 9.1) We wish to acknowledge the patronage and support of our members whose continued commitment to the Credit Union has been our mainstay. We take this opportunity also, to recognise the hard work of our staff who translates boardroom dreams into reality. The unceasing efforts of all the various committees must be placed on record and this we now do. 9.2) Finally we wish to extend our appreciation to the staff of the Co-operative Division for their co-operation and collaboration during the year under review. 9.3) May we build a sustainable institution.

BRIAN LA ROCHE (Mr) Secretary of the Board

23



Annual Report 2016

Report of the Credit Committee1.0 Introduction1.1 The Credit Committee of PSCU Credit Union Co-operative Society Limited takes pleasure in presenting its report for the financial year ending 31 December, 2015.

2.0 Committee Members:2.1 The members were elected to serve at the last Annual General Meeting. At the Inaugural meeting of the Committee members were appointed as follows:

o Ms. Brenda Elwin - Chairperson o Mrs. Charmaine Richardson - Secretary o Mrs. Brenda Roberts-George - Member o Mrs. Kathy Ann St. Louis - Member o Mrs. Gloria Melville Paul Black - Member o Mrs. Ursula Mendonca - First Alternate

3.0 Meetings3.1 The Credit Committee met twice weekly throughout 2015 to review loan applications, interview members, conduct site visits and approve loans. The Committee ensured that all applicants met the approved requirements before approvals were granted.

3.2 Special Meetings3.3 The Credit Committee had the privilege of meeting with the Board of Directors and also the Supervisory Committee. Discussion were held on the delinquency factors which continue to be of great concern to all as it is a key indicator of the performance of the Credit Union. The general consensus was to continue reviewing the existing policies and procedures, implement and ensure that there is continuous monitoring and control going forward. The initiatives taken would ensure a strong and sustainable future for the organization.

3.4 Attendance3.5 The attendance by members of the Committee was as follows:

Brenda Elwin 94 79 15Charmaine Richardson 94 82 12Brenda Roberts-George 94 77 17

Kathy Ann St. Louis 94 70 24Gloria Melville Paul Black 67 52 15Ursula Mendonca*(1stAlternate) 38 37 1

NAMES POSSIBLEATTENDANCE

ACTUAL EXCUSED

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Annual Report 2016

Report of the Credit Committee4.2 The Credit Committee had the opportunity of conducting several site visits to various locations in Trinidad. Many loan requests were for the purpose of housing renovations and erection, inclusive of the acquisition of residential mortgages. Members were very appreciative of the financial counselling and information received and on mortgage financing.

5.0 Correspondence 5.1 The Credit Committee reviewed approximately one hundred and ninety-five (195) various documents submitted by the membership which comprised of the following: o Waiver of Loan Policy to apply for further loans o Release of Fixed Deposits which were used as collateral for loans o Share withdrawals o Share transfers

6.0 Analysis of Loan Portfolio 6.1 The year 2015 showed members borrowing a total sum of $75,374,556 from $74,056,013 in 2014. The loan portfolio grew by approximately 1.78% during 2015, with $1,318,543 in loan advances. Most of the loans granted were secured by shares and deposits, motor vehicles and real estate.

6.2 The credit union was able to assist more borrowers with their needs for housing purposes, representing 32.32% of the total loan portfolio and motor vehicles 11.96% likewise.

7.0 Delinquency 7.1 The delinquency at the end of 2015 was 4.8% in comparison to a rate of 4.1% in 2014. 7.2 Shareholders are advised to “continue supporting your credit union through your loans” as well as honouring the obligation of repaying. 7.3 Shareholders were also advised that if their accounts became delinquent, it would result in bad credit ratings which would impact on acquiring future loans.

8.0 Training Workshop 8.1 The Chairperson of the Credit Committee attended a Caribbean Fraud Conference hosted by Going Global on 8-9 June 2015. The Conference was entitled, Fraud, Compliance and Security. The conference dealt with identifying fraud, theft and crime, anti-money laundering and a number of other topics relating to the detection of fraud and its effect on the business sector.

9.0 Conclusion 9.1 The Credit Committee wishes to thank the shareholders for placing their trust and confidence in the committee and allowing us to be of service; also to the Board of Directors, Management and Staff, your efforts and dedication is acknowledged.

BRENDA ELWIN (MS.)Chairperson - Credit Committee



Annual Report 2016

Report of the Credit CommitteePURPOSE JAN - DEC 2015 JAN - DEC 2014 2013 2014

No NoValue ($) Value ($) Percentage (%) ofTotal

HOUSING LOANS 656 22321 ,971.60 633 24364,819.35 30. 14% 32.32%MORTGAGE PROPERTY 14 4903,829.57 32 7216,296.37 6.62% 9.57%MOTOR VEHICLE ORDINARY 308 8542,471.48 272 9008,642.49 11.54% 11.96%MORTGAGE VElflCLE LOANS 70 9351,362.46 56 8737,170.86 12.63% 11 .60%DEBT CONSOLIDATION 120 2923,398.48 122 2769,905.66 3.95% 3.67%MEDICAL 117 1544,977.75 87 960,012.00 2.09% 1.27%VACATION 191 2664,272.86 170 2584,303.00 3.60% 3.42%HOUSEHOLD REQ. 211 2764,514.39 204 3647,406.72 3.73% 4.84%LAND PURCHASE 26 3131 ,130.00 10 2726,640.00 3.34% 3.61%INVESTMENT 91 2880,520.32 86 2170,215.48 4.23% 2.87%EDUCATION 232 2473,266.50 188 2040,043.18 3.89% 2.70%LEGAL 23 432,475.00 17 193,498.00 3.34% 0.26%CEREMONIAL 56 863,008.00 56 1115,522.98 0.58% 1.48%DOMESTIC 584 3178,761.23 506 2999,436.47 1.17% 3.98%BURIAL 23 214,987.00 18 153,168.00 0.29% 0.20%SME 3 158,000.00 0.21% 0.00%P.E.R.L 99 377,500.00 89 336,400.00 0.29% 0.45%CHRISTMAS 376 3662,338.82 297 2678,786.52 4.95% 3.55%CHAGUANAS SPECIAL LOAN 0 3 274,033.91 0.01% 0.36%TOBAGO INVEST. LOAN 3 20,000.00 1 5,000.00 0.00% 0.01%BRIDGING LOAN 2 24,000.00 11 200,000.00 0.03% 0.27%SEASONAL LOAN 231 1613,228.00 166 1154,148.41 2.18% 1.53%CHRISTMAS INVESTOR LOAN 1 10,000.00 0.51% 0.00%FAST CASH 16 39,107.00 0.05%TOTAL 3437 74056.013.46 3040 75374.556.40 99% 100%

MOTOR VEHICLEORDINARY

11.96%

MOTRGAGEPROPERTY; 9.57%

HOUSING LOANS 32.32%

MORTGAGE VEHICLELOANS;11.60%

DEBT CONSOLIDATION;3.67%

MEDICAL; 1.27%

VACATION;3.42%

HOUSEHOLD REQ.; 4.84%

LAND PURCHASE;3.61%

INVESTMENT; 2.87%

EDUCATION; 2.70% LEGAL; 0.26%CEREMONIAL; 1.48%

DOMESTIC; 3.98% SME; 0.00% BRIDGING LOAN; 0.27%CHRISTMAS 5.55%

BURIAL;0.20%

P.E.R.L.0.45%

CHRISTMAS INVESTORLOAN; 0.00%

FAST CASH0.05%

SEASONALLOAN; 1.55%

CHAGUANAS SPECIALLOAN;0.35%

TOBAGO INVEST.LOAN; 0.01%

Percentage Value of Loans by Purpose 2015

27



Annual Report 2016

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Comparison of Values of Loans Approved by Purpose 2014 and 2015

JAN - DEC 2014

JAN - DEC 2015

Report of the Credit Committee

28



Annual Report 2016

Report of the Supervisory CommitteeINTRODUCTION1.0 The members of the Supervisory Committee wish to present its Annual Report for the 50th Annual General Meeting (AGM) for the financial year 01 January - 31 December 2015. Members of the Committee are aware that the wellbeing of the organization is of utmost importance and every attempt be made to fulfill its duties on behalf of you the members.

2.0 The Inaugural Meeting of the Committee was held on 21 April 2015. The first matter of business was the internal elections of the Committee. The results were as follows:- o Chairperson Anstey L Payne o Secretary Cynthia Francis o Member Miriam Mc Leod

OPERATIONS EXAMINED:3.1 We began our duties by examining the files of elected members of the Board and Committees for the purpose of ascertaining that all members were in good financial standing in the Credit Union, according to the Bye Laws. All members were found to be in good financial standing. 3.2 The Committee continued its duties by reviewing and updating a Supervisory Committee checklist of activities. Discussions were held with the Supervisors and Managers of the Organization, to ensure that the info- mation on the checklist was relevant to the operations of the Credit Union. Copies were circulated to the General Manager, the Board and Supervisors of the Branches for any suggestions or comments.

3.3 The Committee made a request to host a meeting with previous sitting members of the committee, to hold discussion on past experiences and to make recommendations for improvements to aid in enhancing the work of the new Committee. Approval was not given for this venture. A request was also made for copies of brochures from ten (10) years prior which would have assisted in helping assess the progress of the Credit Union. Not all copies were received for a valid assessment to be made.

3.4 The Committee read the Bye Laws and held discussions on its contents. The Committee recommended that the Bye Laws be reviewed regarding the “Financial Year” to reflect the auditing period of the accounts.

4.0 Branches4.1 Arima: Three (3) visits were made to the Arima Branch Office. The Committee identified the good work that was being performed by the staff. Some of the improvements made were repairs to the air conditioning system and sealing of the floor. Areas identified for improvement were regarding general office safety and the emergency exits.4.2 Chaguanas: Three (3) visits were made to the Chaguanas Branch Office. There were challenges with staffing, due to a shortage of man power. The office had to be closed to the public during the mid-day period. This denied prospective and current members the opportunity to be served during their lunch period. Other matters looked at were general safety, toilet signage identifying units used by the organization and the air condition being turned off at 4:00 p.m. The Committee requested the contract for the premises, to review the terms and conditions so that recommendations can be made.

The staff present demonstrated good customer relationship under the circumstances and it was recommended that more staff be added to the Chaguanas Branch. 4.3 San Fernando: Three (3) visits were made to the San Fernando Branch Office. The office space is very roomy and the staff is quite comfortable. Staff indicated that membership was not moving with the kind of dynamism as was identified at the previous location of the San Fernando Office. Discussions were held with the Marketing Department to help with building the membership.

Some members identified limited parking as a concern. Options were discussed to utilize the unused space for earning additional income on behalf of the membership. 4.4 Tobago: Three (3) visits were made to the Tobago Branch Office. Concerns highlighted were in terms of safety, the emergency exits and general comfort of the staff and members. Some inconsistencies with regard to the operations were raised with the Supervisor who has put measures in place.

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Annual Report 2016

Report of the Supervisory Committee4.5 Port of Spain – Head Office: The Committee raised concerns with the clutter stored in the emergency exit at the Branch. This was rectified and the space was cleared. All other checks were found to be acceptable. During Branch visits a list of assets was requested from each Supervisor. Unfortunately Branches were not aware of a listing. The Committee enquired and was informed that there is a listing at Head Office. The Committee recommends the List of Assets should reflect all items held at each Branch and Branch Supervisors given a copy.

5.0 COMMITTEES5.1 Credit Committee The Supervisory Committee met with the Credit Committee and discussed matters relating to loan applications. Inconsistencies were identified on loan application and in some instances critical information was not included. The Credit Committee noted the recommendations of the Supervisory Committee.

5.2 Education Committee The Supervisory Committee met with the Education Committee. Discussions were held on the benefits of the SEA Programmes to the Credit Union. The Education Committee explained that the money allocated to the programme all did not leave the Credit Union but some were given as shares to students making them members of the Credit Union.

The Committee said that they were time constraints to complete a much more enhanced programme of activities for its members for the year. The Com- mittee begins work between the end of May and early June.

This Committee recommends that the Term of Engagement be increased to a period of two (2) years for Education Committee Members.

5.3 Tobago Advisory Committee (TAC): The Supervisory Committee met twice with the Tobago Advisory Committee (TAC) and some members from Tobago. The TAC Executive explained that they felt slighted since they worked hard in building the membership at Tobago. The members of the TAC felt that if they were a statutory committee, they would have more recognition from the Board.

The Supervisory Committee met with the Board and discussion were held and the Committee recommended that the Board take into consideration the concerns of the TAC.

5.4 Audit Committee: The Supervisory Committee should have at least quarterly meetings with the Audit Committee to discuss the internal operations of the Credit Union.

5.5 Legislative Committee: The Supervisory Committee should have at least semi-annual meetings with the Legislative Commit- tee to meet and discuss the policies of the Credit Union ensuring that they are up to date and relevant.

5.6 Nominating Committee: The Supervisory Committee met with the Nomina- ting Committee who requested a meeting to discuss the regularity and punctuality of Board Members at meetings and adjournment of meetings due to a lack of a quorum. The Supervisory Committee could only answer based on the Minutes received. All those details were not furnished in the Board Minutes.

Anstey L. Payne 84 81 3

Cynthia Francis 84 81 3

Miriam McLeod 84 80 4

Name ofMember

TotalAttendance

Attendance Absent Excuses

7.0 EXAMINATION OF RECORDS: The Committee in performing its duties reviewed registers, loan files, Cash Receipts/Vouchers, aged payable statements and other financial records were examined by the Committee. The examination of the records followed the policies and procedures of the Credit Union.

8.0 TRAINING Members of the Committee were invited to two training sessions in an effort to inform of their duties and improve their performances. The training sessions were: o A seminar on “Money Laundering”, facilitated by Going Global Limited held on 9 May 2015; at the PSCU Head Office, Port of Spain.

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Annual Report 2016

Report of the Supervisory Committee o A seminar on “Audit Functions for Supervisory Committee” held on 23 May 2015 held at Cascadia Hotel, St Ann’s. All Committee members attended.

Our chairperson Mr. Payne was invited to attend the Caribbean Fraud Conference 2015 - Fraud, Com- pliance, and Security: The Fraud Tiers. This was held at the Hilton Trinidad Hotel and Conference Centre from June 08-09, 2015. Mr. Payne again thanked the Board for providing this training.

9.0 SUBSIDIARIES: The Committee identified that the Credit Union is the owner of a Subsidiary Company Property Management Limited (PML).

10.0 DELINQUENCY: The Committee reviewed several files of members that were identified as delinquent. As a result of these reviews the Committee observed that many of the delinquent members did not have their applications filled out properly. The Committee found that in some cases dates in the application were omitted, reference documents were not in order among other oversights.

The Committee recommends that the application process be monitored more closely and there should always be follow-up checks with references on the applications, in an effort to help reduce delinquency.

11.0 OTHER MATTERS: The Committee held meetings with the Board and discussed several matters. The Committee requested a list of all Land and Building assets of the organization and their present values.

Discussions were held with the Board, having joint meetings with the Supervisory and Credit Com- mittees at least quarterly.

Alternates should be allowed to attend Supervisory meetings quarterly. This will ensure that members are informed and kept up to date on the functions and operations of the Committee.

12.0 GENERAL RECOMMENDATIONS: When Statutory Committees members are elected, a package which includes a Letter of Secrecy; PSCU policies; Bye-laws; Letter of Introduction and any other relevant documents required to support the duties of the Committees should be made available.

The Committee recommends that the Annual Report should be made available to the General Membership at least two (2) weeks in advance of the Annual General Meeting.

13.0 CONCLUSION: The members of the Supervisory Committee wish to thank our employers, you the Mem- bership for giving us the job to monitor your affairs in this Credit Union. We believe that we have tried our best and wish you the best Credit Union Management available and continued progress in the future.

Thank you all and God Bless. Respectfully

ANSTEY L. PAYNEChairperson Supervisory Committee

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Annual Report 2016

Report of the Education CommitteeINTRODUCTIONThe Education Committee is a committee selected by the Board of Directors to pursue initiatives of training and educational programmes for the members of the PSCU. The Committee is formed after each Annual General Meeting and works steadfastly in executing its mandate. MANDATE OF THE EDUCATION COMMITTEEAccording to the Bye Laws, the Education Committee is mandated to:i) Be in charge of publicity and education for the membership, and in particular education in the philosophy of co-operativismii) Prepare and submit to the Board a budget to cover the cost of its programmes of activities andiii) Submit an annual report of its activities to the Board for the presentation to the Annual General Meeting.

The following is an account of the stewardship of the Education Committee for the period under review January to December 2015.

COMPOSITION OF THE EDUCATION COMMITTEEThe composition of the Committee for the period January to December 2015 is as follows:January – April 2015Mr. Stephen Creese – ChairpersonMs. Phyllis Borde – SecretaryMs Beverly Williams – MemberMrs Alana Goodridge-George – MemberMr Daniel Maynard – Member

May – December 2015Mr Stephen Creese – ChairpersonMrs Alana Goodridge-George – SecretaryMs. Margaret Parillon – MemberDr. Janet Stanley-Marcano – MemberMrs. Margaret Weston – Member

MEETINGSThe Education Committee met once a month, during the period under review, and also held Special meetings to address concerns regarding various programmes held.

The inaugural meeting of the Committee was held on Tuesday 26 May, 2015 and at this meeting a Secretary was selected by vote. The Chairperson then outlined the plan of the last committee, gave information on the budget and invited all to contribute their ideas on taking the Credit Union forward while keeping in line with our mandate.

It was decided that all programmes for the ensuing term must address the basic needs which is to educate the members about Credit Unionism. This will in turn empower, inspire and increase the knowledge of the membership as it relates to the Credit Union, while providing feedback enabling the committee to address any other areas of concern.

ACTIVITIESIt was decided that rather than continuing with the traditional programs that would have resulted in commit-tee members stretching themselves to thin, that the committee concentrate on just two or three programs. This would allow for better planning and execution of projects and the achieving of set targets and objectives. The following were the activities agreed upon for the term:1) S.E.A. / C.S.E.C. Awards2) Development of the Youth Arm3) Financial Planning for Retirement Seminars4) Member Development Seminar

S.E.A. / C.S.E.C. Awards This year it was decided to include C.S.E.C. in our awards to the youth program as a way of bridging the gap between the junior and senior Members in the Credit Union. This awards program held three objectives, re-introducing the youth to the Credit Union, building a base for the development of the Youth Arm and building the philosophy of Credit Unionism among the Youth.

The Committee held its annual Motivational Seminar for the S.E.A. students, which took place at the San Fernando Hill and was enjoyed by all, followed by the S.E.A. awards, which took place at the Audio Visual room at the Nalis Library, Port-of-Spain. There were fifty-seven (57) applicants out of which thirty (30) were chosen for awards. The theme for the year was “In Recognition of Excellence”.

This was followed by the Credit Union’s first ever C.S.E.C. awards, carrying the same theme. There were fourteen (14) applicants who received commendations with five (5) recipients receiving the top awards in the selected categories.

List of S.E.A. Awardees o Rhea Grant o Aaliyah Patrick o Chalee Hamilton o Rikel Hagley o Telle Samuel o Takiya Thompson

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Annual Report 2016

Report of the Education Committee o Kaylah-Marie Smith o Jabari Neptune o Kristen Badal o Kymani Campbell o Chelsea-Marie Singh o Curelle Vespry o Thalia Worme o Kaylan Joseph o Reanna Greene o Zakeda Parks o Dana Ecles o Malique Wallace o Shashom William o Shaniece Williams o Saurav Bhaggan o Arianna Shockness o Shawnese Balfour o Desiree Bruno o Kal-el Agard o Talia Clarke o Kerysten Rahim o Amy Campbell o Omni Lewis o Tyriek Romany o Sonique Remy o Que Markie Mc Millan o Josh Noel o Anisa Goodridge o Mikaele Antoine o Rawl Pierre o Aydin James o Michael Cuffy-Mannette o Daniell Murray o Michal Sanchez o Anthony Simmons o Justin Guevara o Brett Jagroop o Andy Bachan o Joseph Bacchus o J'vani Phillip o Isaiah Williams o Nkosi Guy o Tyrell Turpin o Shimackie Stewart o Terrell Daniel o Churlon St. Louis o Annzora Bebe o D'andre Guevara o Caleb Hinds o Rikel Hagley o Diallo-Amari George o Telle Samuel o Jada-Mia Fonrose o Takiya Thompson List of C.S.E.C. Awardees o Solange Prince o Samantha Ramdhanie o Danielle Noel o Kyra Lewis o Paige Forde o Shakir George o Mitra Beharry o Danielle Rollocks o Tyreke Cooper

Development of the Youth ArmAfter much discussion it was decided that for the devel-opment and sustainability of the Youth Arm that a policy be formed that would guide the Youth Members of our Credit Union ensuring the philosophy of the Credit Union is kept at heart. Dr. Janet Stanley-Marcano and Mrs. Margaret Weston are currently working on this document.

At the third meeting of the Education Committee we were informed of a request made by the Treasurer to adjust expenditure to facilitate financial changes taking place within the Credit Union. The Committee agreed to curtail all set programs for the rest of the year. As a resultthe Financial Planning Retirement Seminars and the Member Development Seminar were rescheduled to 2016.

WORKSHOPSMembers of the Education Committee were invited to attend a workshop hosted by the Central Finance Facility on “Enhancing Board Performance”. The purpose of this

workshop was to enhance Board and Committee perfor-mance within the Credit Union. It was attended by four members and was well received.

FUNDING (ANNUAL BUDGET)It is our hope that for the coming year the proposed budget will be adequate to meet the needs of the commit-tee for the implementation and execution of upcoming activities. The following are some of the proposed activities of the Education Committee for 2016.• The development of a Youth Arm• Financial Planning for Retirement Seminars• Art Competition• S.E.A. / C.S.E.C. Awards

RECOGNITIONThe Committee would like to take this opportunity to congratulate Mr. Stephen Creese, Vice – President of PSCU Credit Union and Chairman of the Education Committee on his appointment as an Independent Sena-tor. We join the Nation in recognising your outstanding achievement and proudly refer to you now as Senator the Honourable Stephen Creese. You have stood fast with this Credit Union and we stand fast with you.

RECOMMENDATIONSThe last Education Committee made representation to the Board that the committee term is extended to two (2) years, in order for members to properly execute the mandate given and to aid in continuity for the successful completion of programs that would be of invaluable use to the Credit Union in the future. We hereby support this recommendation.

CONCLUSIONFinally, the Committee members would like to thank the Board, Management and staff for the support given during the period under review. Notwithstanding various challenges, the members worked steadfastly to fulfil its mandate. The Committee wishes PSCU Credit Union continued successes.

MRS ALANA GOODRIDGE-GEORGESecretary,Education Committee.

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Annual Report 2016

Report of the Education CommitteeTOBAGO ADVISORY COMMITTEE (TAC)1.0 INTRODUCTION1.1 I am pleased to present the report of my stewardship of the Tobago Advisory Committee for the period January 2015 – December 2015.

2.0 COMPOSITION OF THE COMMITTEE2.1 The Committee comprised of: Mrs. Joy Boatswain-George - Chairperson Mr. Prisgar Woods - Secretary Mrs. Karen John-Prince - Member Mr. Preston Trim - Member Mr. Frank Grimshaw - Member Ms. Aldina Salandy - Alternate Mrs. Vera Stewart-Joefield - Alternate

3.0 MEETINGS3.1 In discharging its responsibilities, the Committee held ten (10) Statutory Meetings, three (3) Special Meetings and one (1) Joint Meeting.

3.1 ORIENTATION OF NEW MEMBERS3.2 An orientation session was held on 28 April 2015 at the Policy Research and Development Institute Conference Room (PRDI) Scarborough Tobago.4.2 Director Alison Alleyne-Young brought greetings on behalf of the Board of Directors. The Tobago Branch staff gave presentations on the services that are offered.

4.0 TRAINING PROGRAMME An Events Management workshop was held on 21 & 28 March 2015 for Tobago Advisory Committee members and Liaison Officers. It was presented by Ms Sandra Hendrickson.

5.0 MOTHERS AND FATHERS DAY TALENT SHOW The Mothers’ and Fathers’ Day Talent Show was held on 06 June 2015 at the Signal Hill Senior Comprehensive Secondary School. There were seven male and six female contestants vying for the prizes. Mr Keishon Jack and Kabasi with his band were the Guest Artistes. The Tobago Advisory Committee wishes to thank the Board of Directors, the Liaison Officers, the Tobago Office Supervisor, the participants and the audience who would have contributed to making the event a success.

6.0 KIDDY TOUR The children were taken to Harry’s Water Park in Trinidad on 19 August 2015. Forty-three (43) persons were in attendance. We travelled on the 6:30 a.m. Ferry and returned on a Caribbean Airlines flight at 8:30 p.m.

7.0 S.E.A. AWARDS CEREMONY7.1 The S.E.A. Awards function took place on 01September 2015 at the PRDI Lecture Room, Scarborough Tobago. The theme was “Continuing the Journey.” The feature speaker was Rev. Fidel James.8.0. Strategic Review8.1 The Chairperson of the Tobago Advisory Com- mittee was invited to a strategic Review session on 21 November 2015. The core values of the Credit Union were discussed. Presentations will be made in March 2016 on the new initiatives that will be implemented. 9.0 CHILDREN’S CHRISTMAS PARTY9.1 The Children’s Christmas Party was held on 29 November 2015 at the compound in front of the PSCU Credit Union Branch office. Approximately two hundred and fifty (250) children registered. 10.0 CHRISTMAS DINNER A Christmas dinner was held on 15 December 2015 at Tropikist Hotel for T.A.C Officers and Liaison Officers. 11.0 CONDOLENCES: Members of the Committee would like to convey condolences to the families of the late Kevin Morris, Christiana Jones, Deon Austin, Utrice Douglas, Greta Young-Williams and Marilyn Winchester, who were past members of the credit union. 12.0 CONCLUSION 12.1 On behalf of the Committee, I wish to express sincere thanks and appreciation to the Board of Directors, the Management and Staff of the Tobago Branch for their cooperation and assistance given to us over the period. To you the members of the Society, the Tobago Advisory Committee expresses its deepest appreciation for the trust and confidence you placed in us by electing us to serve on this Committee. It was an honour and privilege to have served. On my own behalf, I wish to thank all of you who would have encouraged and supported me in any way to making my term a not so challenging one. As I move on I wish the new committee members all the best. I will certainly encourage and support you with that same zeal that was given to me. I sincerely thank you all.Respectfully Submitted

MRS JOY BOATSWAIN-GEORGEChairperson - Tobago Advisory Committee

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Annual Report 2016

Report of the Silver Club1.0 INTRODUCTION: I am pleased to submit this Report to the 2016 Annual General Meeting (AGM) of the PSCU Credit Union Co-operative Society Limited Silver Club in the capacity of Secretary. First of all I must thank the Lord for his blessings upon the members and myself of this Club and for the confidence in which the members have shown in giving me the opportunity to serve for the period 2015/2016.

2.0 COMPOSITION OF THE EXECUTIVE:2.1 At the 2014/2015 Annual General Meeting (AGM) held on 11th April, 2015, the under-mentioned persons were elected to serve on the Executive: • Mr. D. Greaves - Chairperson • Ms. S. Medford - Vice Chairperson • Ms. C. Francis - Secretary • Ms. E. McEwen - Asst. Secretary • Ms. L. Wheeler - Treasurer

2.2 After the elections the first meeting of the Executive was held on 4th May, 2015. Several matters were discussed. Among them were: • The Calendar of Events for the 2015 to 2016 term. • Participation of members from the South to Silver Club events. • Members who assisted in managing the Silver Club’s desk at the Credit Union’s Annual General Meeting. • Members Outreach. • Meeting for Members.

2.3 The Executive meets on the first Monday of each month to deal with the business of the Silver Club.

2.4 ATTENDANCE OF THE EXECUTIVE FOR THE PERIOD APRIL 2015 – MARCH 2016:

Derek Greaves Chairman 9 2 Shirley Medford Vice Chairman 10 1 Lolita Wheeler Treasurer 10 1 Cynthia Francis Secretary 10 1 Esther McEwen Asst. Secretary 9 2 Janet Mc Sween Committee Member 9 2 Priscilla Wright-Forte Committee Member 9 2 Michael Isaac Trustee 9 2 Augustine Chin Trustee 9 2

Name PositionAttendance Record

Attendance Excused Absent

3.0 SOCIAL EVENTS FOR 2015/2016:DATE FUNCTION LOCATION

• Mr. M. Isaac - Trustee• Mr. A. Chin - Trustee• Ms. J. McSween - Committee Member• Ms. P. Wright-Forte - Committee Member

January 31, 2015 Carnival Lime CancelledMarch 25, 2015 Lenten Reflections Credit Union, Sackville St. POSApril 11, 2015 Silver Club’s AGM Credit Union, Sackville St., POSMay 16, 2015 Celebrating our Mothers Nu Pub (formerly Mas Camp Pub)June 20, 2015 Celebrating our Fathers TocoAugust 15, 2015 Meeting – Legal Affairs Credit Union, Sackville St., POSSeptember 19, 2015 Outside Event Clifton Hill Beach ResortOctober 17, 2015 Outside Event Sea Wall, GuayguayareDecember 12, 2015 Christmas Luncheon Nu Pub

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Annual Report 2016

Report of the Silver Club3.1 The Social Events have been well attended by members together with their friends and family. They all enjoyed themselves at the different venues singing, dancing, eating and sea bathing. On returning to their destinations, they all ask the question – where are we going next month? 3.2 In the year 2016, the Credit Union will be celebrating its Fiftieth Anniversary. A list of activities is planned for this year and the Silver Club will be taking part in the activities.

4.0 BENEFITS OF THE SILVER CLUB: On becoming a Member of the Silver Club, one can enjoy the following benefits: • Exemption from service charges • Increase on the Annual Rate of new deposits by 0.5% • Reduction of the interest rate on loans by 0.05% • No appointments required for obtaining services

5.0 OBJECTIVES OF THE SILVER CLUB: The objectives of the Silver Club are: a. To establish a Range of Services specifically geared towards our members; b. To encourage our members to: - Form themselves into a Network Group - Develop Social and Cultural activities - Lend their experience and skills to the Credit Union - Continue to build their savings after retirement

5.1 The annual membership fee is $50.00 whereas the lifetime membership fee is $150.00.

6.0 CONDOLENCES: Members of the Committee would like to convey condolences to the family and relatives of Donna Paton-Rojas who passed away in 2015. She was a former member of the Executive of the Silver Club.

7.0 CONCLUSION: During the period under review, the Executive has been very pleased to devote their time, working diligently in executing the business of the Club. We are encouraged by the thankfulness expressed by members when they attend events put on by the Club.

7.1 Finally, I wish to extend heartfelt gratitude to the members of the Executive for their steadfast and untiring service and you the members of this Club for affording us the opportunity to serve you.

CYNTHIA FRANCISSecretary

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Annual Report 2016

Report of the Nominating Committee

1.0 INTRODUCTION1.1 The members of the Nominating Committee respectfully submit their report for consideration at the 2016 Annual General Meeting of the PSCU Credit Union Co-operative Society Limited

2.0 COMPOSITION OF COMMITTEE2.1 In accordance with Section 17 (i) of the Bye-Laws, three (3) members were appointed to form the Nominating Committee as follows:- Ms. Lolitta Wheeler - Chairperson Ms. Esther Mc Ewen - Secretary Mr. Victor Pilgrim - Member

3.0 TERMS OF REFERENCE3.1 “Selection of qualified members who are willing to be considered for election to the Board and other Committees by the General Meeting”

4.0 SELECTION PROCESS4.1 Nominations were invited from the general membership by means of newspaper advertisements, postings on our Website and Facebook. Notices were also displayed at the Head Office and all four (4) Branch Offices.

4.2 SIXTEEN (16) NOMINATIONS were received and were examined in detail to ensure proper completion. Two (2) completed forms which were received after the stipulated deadline date were not accepted and One (1) nominee withdrew,

4.3 The Committee reviewed the financial records of NOMINEES to ensure that they were active members in good standing

4.4 ALL NOMINEES were interviewed to ensure that they were aware of the responsibilities and functions of the Board and Statutory Committees. Outgoing Directors and Committee members were encouraged to make suggestions for general improvement in the functioning and overall performance of the Board and Committees.

4.5 Accordingly, the Nominating Committee is pleased to recommend the following THIRTEEN (13) NOMINEES for election to the Board of Directors, Credit and Supervisory Committees in accordance with our existing Bye-Laws.

5.0 NOMINATIONS FOR BOARD AND COMMITTEES

5.1 BOARD OF DIRECTORS Mr. Stephen Creese Ms. Ursuline Hood Mr. Brian La Roche Mr. Kirk A. Pantin Dr. Janet Stanley-Marcano 5.2 CREDIT COMMITTEE Ms. Versil Charles-Wright Ms. Janelle Jeffrey-Joseph Ms. Anne Marie Sheppard-White

5.3 SUPERVISORY COMMITTEE Mr. Anstey L. Payne Ms. Deborah Haynes-Collins Ms. Kerneisha Prince-King Ms. Melissa Chevalier Ms. Kathy Ann St. Louis

5.4 Profiles of the thirteen (13) nominees are attached.

6.0 CONCLUSION6.1 All Nominees are expected to benefit from an Orientation Seminar which is scheduled to take place two (2) weeks prior to our Annual General Meeting.

6.2 Members are encouraged to exercise due care and diligence in the election of nominees to fill vacant positions.

7.0 ACKNOWLEDGEMENTS The Committee wishes to express our gratitude to the following:-

– ALL NOMINEES for offering to serve and also for attending the interview and Orientation Seminar– The Board of Directors for giving us the opportunity to serve on the Nominating Committee.– Officers of the Co-operative Division for their guidance and kind assistance.– The General Manager and Staff for their Co-operation and support

Respectfully submitted

LOLITTA WHEELERFor and on behalf of theNominating Committee

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Annual Report 2016

Nomination for the Board of Directors1. MR. STEPHEN CREESE Ministry/Department Local Government Position Retired Deputy Permanent Secretary Membership in PSCU 11/11/91 (24 years) Credit Union Experience Outgoing Vice-President Served as President and Secretary Training & Skills BSc. Government & Public Administration Certificate - Project Analysis Executive Diploma – Public Sector Management Considerable Senior Management experience

2. MS. URSULINE HOOD Ministry/Department East Port of Spain Development Company Limited Position Human Resource/Administration Officer Membership in PSCU 20/10/08 (7 years) Credit Union Experience Nil Training & Skills BSc. – Social Work MHRM – Masters – Human Resource Development Approximately 15 years - Human Resource Management Approximately 8 years – Administration

3. BRIAN LA ROCHE - Angostura (Trinidad) Limited Position Manager Human Resource Operations Membership in PSCU 09/08/91 (24 years) Credit Union Experience Outgoing Secretary to the Board Served previously on the Credit, Education and Human Resource Committees Training & Skills BA. Labour Relations Certificate in Human Resources

4. DR. JANET STANLEY-MARCANO Ministry/Department Ministry of Education Position Retired Chief Education Officer Membership in PSCU 09/04/08 (8 years) Credit Union Experience Outgoing Director Served on Education, H.R. Committees Training & Skills Ed.D. Comparative & International Education Development Considerable Senior Management Experience

5. MR. KIRK A. PANTIN Ministry/Department Ministry of Community Development Culture and the Arts Position Best Village Officer II Membership in PSCU 07/06/01 (14 years) Credit Union Experience Served as Secretary, Credit Committee Training and Skills Associate Degree in Labour Studies Currently completing Bachelor of Arts Degree In Labour Studies

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Annual Report 2016

Nomination for the Credit Committee1. VERSIL CHARLES-WRIGHT Ministry/Department Election and Boundaries Position Deputy Chief Elections Officer (Retired) Membership in PSCU 28/12/82 (33 years) Credit Union Experience Served as member of the Supervisory Committee Training and Skills BSc. Sociology and Government

2. JANELLE JEFFREY-JOSEPH Ministry/Department Ministry of Community Development Culture and Arts Position Civil Servant Membership in PSCU 8/06/09 (6 years) Credit Union Experience Nil Training and Skills Associate Degree in Arts and Labour Studies Certificate in Industrial Relation Currently pursuing BSc. Degree in Arts and Labour Studies

3. ANN MARIE SHEPPARD WHITE Ministry/Department Ministry of Health Position Cook Membership in PSCU 12/12/96 (19 years) Credit Union Experience Member of Silver Club Training and Skills Courses at the Cipriani Labour College

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Annual Report 2016

Nomination for the Supervisory Committee1. MR. ANSTEY L. PAYNE Pinnacle Technical Services Position Director Membership in PSCU 05/04/79 (35 years) Credit Union Experience Served on Supervisory Committee of other Credit Union Training & Skills BSc. Education, BBA Finance, Business Teacher Training Considerable Teaching experience – 34 years

2. MS. DEBORAH HAYNES-COLLINS Ministry/Department Ministry of Foreign Affairs Position Financial Attache in Consulate Foreign Services Executive Officer III Membership in PSCU 20/05/80 (34 years) Credit Union Experience Served as member of Credit Committee Training & Skills CPA (UWI) Certificate in Public Administrative

3. KERNEISHA PRINCE-KING - B.P TRINIDAD & TOBAGO Position Manager Membership in PSCU 16/04/02 (13 years) Credit Union Experience Nil Training & Skills MSc. Business Studies Bachelor in Administration Associate Degree – Business Management Experience in Corporate Governance Management Consulting and Strategic Planning

4. MELISSA CHEVALIER - National Schools Dietary Services Limited Position Supervisor Membership in PSCU 7/07/10 (15 years) Credit Union Experience Nil Training & Skills Diploma in Food Technology Experience Event Planner

5. KATHY ANN ST. LOUIS Ministry/Department Ministry of Health Position Laundry Manager Membership in PSCU 9/10/95 (20 Years) Credit Union Experience Outgoing Credit Committee member for past 6 years Training & Skills Practical Management Skills

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Annual Report 201643

45

PSCU CREDIT UNION CO-OPERATIVE SOCIETY LIMITEDAND ITS SUBSIDIARY

STATEMENT OF FINANCIAL POSITION

ASSETSCredit Union31 December

Group31 December

2014 2015 Notes 2015 2014

$ 1,974,33218,173,659

20,147,991

1,935,604-

6,088,047225,034,144

967,5903,760,000

-18,963,995

-

256,749,380

$ 4,079,62322,214,404

26,294,027

2,281,135-

6,088,047239,234,311

1,071,7881,580,0001,600,000

19,204,032-

271,059,313

Cash Resources:Cash in hand and at bankAvailable-for-Sale investments

Total Cash Resources

Other Assets:Accounts receivable and prepaymentsTaxation refundDue from subsidiaryLoans to membersHeld-to-Maturity investmentsInvestment propertyInvestment property – Held-for-SaleFixed assetsDeferred taxation

Total Other Assets

56

7

89

10111213

$ 4,899,40822,214,404

27,113,812

2,749,2932,944

-239,234,311

1,071,7881,580,0001,600,000

41,281,159-

287,519,495

$ 2,286,55018,173,658

20,460,208

2,515,2182,944

-225,034,144

967,5903,760,000

-41,445,868

97,452

273,823,216

$ 276,897,371 $ 297,353,340 Total Assets $314,633,307 $294,283,424

LIABILITIES AND MEMBERS’ EQUITY

$ 3,382,5687,018,191

-58,213,063

176,551,862-

245,165,684

5,000,000-

250,165,684

8,457,5331,485,178

6,000-

355,99216,426,984

26,731,687

$ -11,032,231

-61,111,372

189,774,971-

261,918,574

5,000,000-

266,918,574

9,352,4061,538,706

6,000-

460,18819,077,466

30,434,766

Current Liabilities:Bank overdraftAccounts payable and accrualsCorporation tax payableMembers’ depositsMembers’ sharesLoans – Current portion

Total Current Liabilities

Non-Current Liabilities:Loans – Non-current portionDeferred taxation

Total Liabilities

Members’ Equity:Reserve FundEducation FundDividend Equalisation FundRevaluation ReserveInvestment Remeasurement ReserveUndivided earnings

Total Members’ Equity

14

1516

1613

1718192021

$ -11,330,042

228,56061,111,372

189,774,9711,280,464

263,725,409

10,731,658407,032

274,864,099

9,412,8771,568,942

6,0007,613,243

460,18820,707,958

39,769,208

$ 3,404,385 7,372,734

228,56158,213,063

176,551,862870,702

246,641,307

12,180,702-

258,822,009

8,457,5331,485,178

6,0007,613,243

355,99217,543,469

35,461,415

$ 276,897,371 $ 297,353,340 Total Liabilities and Members’ Equity $314,633,307 $294,283,424

These financial statements were approved by the Board of Directors and authorised for issue on 4 April 2016and signed on their behalf by:

____________________ ____________________ ____________________President Treasurer Chairman

Supervisory Committee(The accompanying notes form part of these financial statements)

46

PSCU CREDIT UNION CO-OPERATIVE SOCIETY LIMITED AND ITS SUBSIDIARY

STATEMENTS OF COMPREHENSIVE INCOME

Credit UnionFor the year ended

31 December

GroupFor the year ended

31 December2014 2015 Notes 2015 2014

$ 26,568,147419,516

1,455,678-

24,9703,404

28,471,715

1,700,5912,537,2251,008,0478,401,8205,395,956

680,5501,091,919

20,816,108

$ 29,609,163186,936

1,406,958-

47,1005,998

31,256,155

1,713,8032,444,9961,131,958

11,231,4635,222,184

627,643-

22,372,047

Income:

Interest on loansInvestment incomeMiscellaneous incomeManagement feeRental incomeGain on foreign exchange

Expenses:

Cost of fundsAdministrative expensesRisk management expensesPersonnel expensesGeneral expensesBoard and Committees’ expensesImpairment of fixed assets

272829303132

$ 29,609,163192,216

1,406,958-

2,622,0365,998

33,836,371

2,305,7492,563,3211,193,489

11,280,7535,842,659

649,369-

23,835,340

$ 26,568,147421,957

1,455,6788,741

2,599,9063,404

31,057,833

2,411,1262,656,1091,094,7888,499,6045,974,524

718,823-

21,354,974

7,655,607 8,884,108 Net surplus before taxation 10,001,031 9,702,859

- - Taxation 33 (512,209) (213,450)

7,655,607 8,884,108 Net surplus for the year 9,488,822 9,489,409

11,138

-

104,196

-

Other comprehensive income:

Items that may be reclassified subsequentlyto profit or loss:

Unrealised gain on available-for-sale investments

Items that will not be reclassified subsequentlyto profit or loss:

Revaluation of properties

104,196

-

11,138

7,613,243

$ 7,666,745 $ 8,988,304 Total Comprehensive Income for the year $ 9,593,018 $ 17,113,790

(The accompanying notes form part of these financial statements)

47


STATEMENTS OF APPROPRIATED FUNDS AND UNDIVIDED EARNINGS

Credit Union - 2015 ReserveFund

Education Fund

Dividend Equalisation

Fund

Investment Remeasurement

ReserveUndividedEarnings Total

Balance as at 1 January 2015

Total comprehensive income for the year

Appropriations:(a) 10% to Reserve Fund (b) 5% to Education Fund

Entrance feesEducation expensesDividends and Honoraria – 2014

$ 8,457,533

-

888,411-

9,345,944

6,542--

$ 1,485,178

-

-444,205

1,929,383

-(390,677)

-

$ 6,000

-

--

6,000

---

$ 355,992

104,196

--

460,188

---

$ 16,426,984

8,884,108

(888,411)(444,205)

23,978,476

(6,542)390,677

(5,285,225)

$ 26,731,687

8,988,304

--

35,719,991

--

(5,285,225)

Balance as at 31 December 2015 $ 9,352,406 $ 1,538,706 $ 6,000 $ 460,188 $ 19,077,466 $ 30,434,766

Credit Union - 2014 ReserveFund

Education Fund

Dividend Equalisation

Fund

Investment Remeasurement




Appropriations:(a) 10% to Reserve Fund (b) 5% to Education Fund

Entrance feesEducation expensesDividends and Honoraria – 2013

$ 7,686,144

-

765,561-

8,451,705

5,828--

$ 1,500,441

-

-382,780

1,883,221

-(398,043)

-

$ 6,000

-

--

6,000

---

$ 344,854

11,138

--

355,992

---

$ 13,674,793

7,655,607

(765,561)(382,780)

20,182,059

(5,828)398,043

(4,147,290)

$ 23,212,232

7,666,745

--

30,878,977

--

(4,147,290)

Balance as at 31 December 2014 $ 8,457,533 $ 1,485,178 $ 6,000 $ 355,992 $ 16,426,984 $ 26,731,687


48


STATEMENTS OF APPROPRIATED FUNDS AND UNDIVIDED EARNINGS

Group - 2015 ReserveFund

EducationFund

DividendEqualisation

ReserveRevaluation

Reserve

InvestmentRemeasurement




10% to Reserve Fund5% to the Education Fund

Entrance feesEducation expensesDividends and honoraria – 2014

$ 8,457,533

-

948,882-

9,406,415

6,462--

$ 1,485,178

-

-474,441

1,959,619

-(390,677)

-

$ 6,000

-

--

6,000

---

$ 7,613,243

-

--

7,613,243

---

$ 355,992

104,196

--

460,188

---

$ 17,543,469

9,488,822

(948,882)(474,441)

25,608,968

(6,462)390,677

(5,285,225)

$ 35,461,415

9,593,018

--

45,054,433

--

(5,285,225)

Balance as at 31 December 2015 $ 9,412,877 $ 1,568,942 $ 6,000 $ 7,613,243 $ 460,188 $ 20,707,958 $ 39,769,208

Group - 2014 ReserveFund

EducationFund

DividendEqualisation

ReserveRevaluation

Reserve

InvestmentRemeasurement




10% to Reserve Fund5% to the Education Fund

Entrance feesEducation expensesDividends and honoraria – 2013

$ 7,686,144

-

765,561-

8,451,705

5,828--

$ 1,500,441

-

-382,780

1,883,221

-(398,043)

-

$ 6,000

-

--

6,000

---

$ -

7,613,243

--

7,613,243

---

$ 344,854

11,138

--

355,992

---

$ 13,207,476

9,489,409

(765,561)(382,780)

21,548,544

(5,828)398,043

(4,397,290)

$ 22,744,915

17,113,790

--

39,858,705

--

(4,397,290)

Balance as at 31 December 2014 $ 8,457,533 $ 1,485,178 $ 6,000 $ 7,613,243 $ 355,992 $ 17,543,469 $ 35,461,415


49


STATEMENTS OF CASH FLOWS

Credit UnionFor the year ended

31 December

GroupFor the year ended

31 December2014 2015 2015 2014

$ 7,655,607

1,388,4301,482,171

-1,091,919

-

11,618,127

2,346,258-

(25,700)426,472

-

14,365,157

(10,772)(20,399,126)

(2,780,385)-

(23,190,283)

(4,147,290)-

11,144,9215,658,859

12,656,490

3,831,36412,934,059

$ 8,884,108

903,6781,283,369

3,443-

80,000

11,154,598

(348,974)--

4,014,040-

14,819,664

(2)(15,483,536)

(1,143,715)500,000

(16,127,253)

(5,285,225)-

13,223,1092,898,309

10,836,193

9,528,60416,765,423

Cash Flows from Operating Activities:Net surplus before taxationItems not involving cash:

DepreciationLoan loss expenseBad debt expenseImpairment of propertyLoss on disposal of investment property

Net change in accounts receivable and prepaymentsNet change in inventoriesNet change in due to/from subsidiaryNet change in accounts payable and accrualsTaxation paid

Cash provided by Operating Activities

Cash Flows from Investing Activities:Net change in Held-to-Maturity investmentsNet change in loans to membersNet change in fixed assetsProceeds from sale of investment property

Cash used in Investing Activities

Cash Flows from Financing Activities:Dividends and honorariaNet change in loansNet change in members’ sharesNet change in members’ deposits

Cash provided by Financing Activities

Net change in cash resourcesNet cash resources at beginning of year

$ 10,001,031

1,308,4241,283,369

3,443-

80,000

12,676,267

(237,518)--

3,957,308(7,726)

16,388,331

(2)(15,483,536)

(1,143,715)500,000

(16,127,253)

(5,285,225)(1,039,282)

13,223,1092,898,309

9,796,911

10,057,98917,055,823

$ 9,702,859

1,836,0421,482,171

---

13,021,072

2,245,609--

502,022(7,725)

15,760,978

(10,772)(20,399,126)

(2,780,385) -

(23,190,283)

(4,397,290)(1,206,990)

11,144,9215,658,859

11,199,500

3,770,19513,285,628

$ 16,765,423 $ 26,294,027 Net cash resources at end of year $ 27,113,812 $ 17,055,823

$ 1,974,33218,173,659(3,382,568)

$ 4,079,62322,214,404

-

Represented by:Cash in hand and at bankAvailable-for-Sale investmentsBank overdraft

$ 4,899,40822,214,404

-

$ 2,286,55018,173,658(3,404,385)

$ 16,765,423 $ 26,294,027 $ 27,113,812 $ 17,055,823


50


NOTES TO THE FINANCIAL STATEMENTS

31 DECEMBER 2015

1. Registration and Objectives:

The Society is registered under the Co-operative Societies Act Chapter 81:03. Its objectives are to promote the economic welfare of its members, encourage the spirit and practice of thrift, self-help and co-operation and promote the development of co-operative ideas. Its registered office issituated at #24 Sackville Street, Port-of-Spain. Its fully owned subsidiary, PSCU Property Management Limited, incorporated in Trinidad and Tobago, is included in these consolidated statements.

2. Significant Accounting Policies:

a) Basis of financial statements preparation -

These consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS), and are stated in Trinidad and Tobago dollars, rounded to the nearest dollar. These consolidated 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) Basis of consolidation -

The consolidated financial statements incorporate the financial statements of PSCU Credit Union Co-operative Society Limited and its wholly owned subsidiary, PSCU Property Management Limited. The Society has the power to govern the financial and operating policies of PSCU Property Management Limited so as to obtain benefits from its activities.

The results of PSCU Property Management Limited are included in the consolidated Statement of Comprehensive Income from the date of incorporation. Where necessary, adjustments are made to the financial statements of PSCU Property Management Limited to bring the accounting policies used in line with those used by PSCU Credit Union Co-operative Society Limited.

All significant inter-company transactions and balances have been eliminated on consolidation.

c) Use of estimates -

The preparation of consolidated 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 Society’s 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 these consolidated financial statements and the reported amounts of income and expenditure during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates.

51



31 DECEMBER 2015

2. Significant Accounting Policies (Cont’d):

d) New Accounting Standards and Interpretations -

i) The Society has not applied the following standard that became effective during the current year, as it does not apply to the activities of the Society or have a material impact on its financial statements:

IFRS 7 Financial Instruments: Disclosures - Mandatory effective date and transition disclosures (effective for accounting periods beginning on or after 1 January 2015).

ii) 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 5 Non-current Assets Held for Sale and Discontinued Operations -Amendments regarding changes in methods of disposal (effective for accounting periods beginning on or after 1 January 2016).

IFRS 7 Financial Instruments: Disclosures - Servicing contracts and applicability to condense interim financial statements (effective for accounting periods beginning on or after 1 January 2016).

IFRS 9 Financial Instruments (effective for accounting periods beginning on or after 1 January 2018).

IFRS 10 Consolidated Financial Statements - Amendments regarding the sale or contribution of assets between an investor and its associate or joint venture (effective for accounting periods beginning on or after 1 January 2016).

IFRS 10 Consolidated Financial Statements - Amendments regarding the application of consolidation exception (effective for accounting periods beginning on or after 1 January 2016).

IFRS 11 Joint Arrangements - Amendments regarding the accounting for acquisitions of an interest in a joint operation (effective for accounting periods beginning on or after 1 January 2016).

IFRS 12 Disclosure of Interest in Other Entities - Amendments regarding the application of consolidation exception (effective for accounting periods beginning on or after 1 January 2016).

52



31 DECEMBER 2015


d) New Accounting Standards and Interpretations (cont’d) -

IFRS 14 Regulatory Deferral Accounts (effective for accounting periods beginning on or after 1 January 2016).

IFRS 15 Revenue from Contracts with Customers (effective for accounting periods beginning on or after 1 January 2017).

IFRS 16 Leases (effective for accounting periods beginning on or after 1 January 2019).

IAS 1 Presentation of Financial Statements - Amendments resulting from disclosure initiative (effective for accounting periods beginning on or after 1 January 2016).

IAS 7 Statement of Cash Flows - Amendments resulting from disclosure initiative (effective for accounting periods beginning on or after 1 January 2017).

IAS 12 Income Taxes - Amendments resulting from recognition of deferred tax assets for unrealised losses (effective for accounting periods beginning on or after 1 January 2017).

IAS 16 Property, Plant and Equipment - Amendments regarding the clarification of acceptable methods of depreciation and amortisation (effective for accounting periods beginning on or after 1 January 2016).

IAS 16 Property, Plant and Equipment - Amendments bringing bearer plants into the scope of IAS 16 (effective for accounting periods beginning on or after 1 January 2016).

IAS 19 Employee Benefits: Disclosures - Amendments regarding discount rate: regional market issue (effective for accounting periods beginning on or after 1 January 2016).

IAS 27 Separate Financial Statements - Amendments reinstalling the equity method as an accounting option for investments in subsidiaries, joint ventures and associates in an entity's separate financial statements (effective for accounting periods beginning on or after 1 January 2016).

IAS 28 Investment in Associates - Amendments regarding the sale or contribution of assets between investor and its associate or joint venture (effective for accounting periods beginning on or after 1 January 2016).

53



31 DECEMBER 2015


d) New Accounting Standards and Interpretations (cont’d) -

IAS 28 Investment in Associates - Amendments regarding the application of consolidation exception (effective for accounting periods beginning on or after 1 January 2016).

IAS 34 Interim Financial Reporting - Amendments regarding disclosure of information "elsewhere in the interim financial report" (effective for accounting periods beginning on or after 1 January 2016).

IAS 38 Intangible Assets - Amendments regarding the clarification of acceptable methods of depreciation and amortisation (effective for accountingperiods beginning on or after 1 January 2016).

IAS 41 Agriculture - Amendments bringing bearer plants into the scope of IAS 16 (effective for accounting periods beginning on or after 1 January 2016).

The adoption of IFRS 9 Financial Instruments may result in significant changes in the Society's classification and presentation of financial instruments.

e) Fixed assets -

Fixed assets are stated at historical cost less accumulated depreciation. Depreciation is provided using the straight-line method.

The following rates are considered appropriate to write-off the assets over their estimated useful lives are applied:

Building - 2%Building improvements - 5% - 10%Furniture and fixtures and fittings - 10% - 25%Office equipment - 2 % - 25%Air-condition Units - 10%Computer equipment - 10% - 25%Motor vehicles - 5% - 20%Library - 5%

No depreciation is provided on Land.

54



31 DECEMBER 2015


e) Fixed assets (cont’d) -

The assets’ residual values and useful lives are reviewed at each reporting date, and adjusted as appropriate. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s 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.

f) Investment property – held-for-Sale -

This property is stated at its revalued amount. Any gains or losses arising on the sale of this property will be realised through the Statement of Comprehensive Income.

g) Investments -

The Society has classified all investments into the following category:

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 Remeasurement Reserve.

For actively traded investments, fair value is determined by reference to the Stock Exchange quoted market prices at the reporting 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.

Held to maturity

These are securities which are held with the positive intention of holding them to maturity and are stated at amortized cost less provisions made for any permanent diminution in value. Amortized cost is calculated by taking into account any premium or discounts on acquisition over the period of maturity using the effective interest rate method.

55



31 DECEMBER 2015


h) 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 Society’s Statement of Financial Position when the Society becomes a party to the contractual provisions of the instrument.

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 reporting 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.

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) Significant financial difficulty of the issuer or obligor.

ii) A breach of contract, such as default or delinquency in interest or principal payments.

iii) It becoming probable that the borrower will enter in bankruptcy or other financial reorganisation.

iv) The disappearance of an active market for that financial asset because of financial difficulties.

56



31 DECEMBER 2015


h) Financial instruments (cont’d) -

Impairment of financial assets (cont’d) -

v) 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.

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 asset’s 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 debtor’s 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 market’s rate of return for similar financial assets is recognised in the Statement of Comprehensive Income. These losses are not reversed.

57



31 DECEMBER 2015



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 remeasured 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.

Cash and cash equivalents

Cash and cash equivalents consist of highly liquid investments with original maturities of twelve months or less and are carried at cost, which approximates market value.

Accounts receivable

Accounts receivable are initially measured at cost. Appropriate allowances for estimated irrecoverable amounts are recognised in the 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.

58



31 DECEMBER 2015



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.

Members’ shares

Members’ shares are classified as liabilities and stated at fair value.

i) Revenue recognition -

Loan Interest

Interest charged on all loans to members is calculated between 0.56% to 1.75% per month on the outstanding balance at the end of each month in accordance with Section 12 of the Bye-laws and the General Loan Policy. Loan interest is accounted for on the cash 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.

59



31 DECEMBER 2015


j) 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 lowest value of shares held in each month. Dividends that are proposed and declared after the reporting date are not shown as a liability in accordance with IAS #10 but are disclosed as a note to the financial statements.

k) Foreign currency -

Monetary assets and liabilities denominated in foreign currencies are expressed in Trinidad and Tobago dollars at rates of exchange ruling at the reporting 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.

l) 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 reporting 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.

m) Taxation -

Current tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

60



31 DECEMBER 2015


n) Taxation (cont’d) -

Deferred tax

Deferred income tax is provided, using the liability method on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognised for all taxable temporary differences except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carry-forward of unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, carry forward of unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.

o) Comparative figures -

Where necessary, comparative amounts have been adjusted to conform with changes in presentation in the current year.

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31 DECEMBER 2015

3. Financial Risk Management:

Financial instruments

The following table summarizes the carrying amounts and fair values of the Group’s financial assets and liabilities:

2015BookValue

Fair Value

Financial Assets

Cash in hand and at bankAvailable-for-Sale investmentsAccounts receivable and prepaymentsHeld-to-Maturity investmentsLoans to members

Financial Liabilities

Accounts payable and accrualsLoansMembers depositsMembers’ shares

$ 4,899,40822,214,404

2,749,2931,071,788

239,234,311

11,330,04112,012,12261,111,372

189,774,971

$ 4,899,40822,214,404

2,749,2931,071,788

239,234,311

11,330,04112,012,12261,111,372

189,774,971

2014BookValue

Fair Value

Financial Assets



Bank overdraftAccounts payable and accrualsLoansMembers depositsMembers’ shares

$ 2,286,55018,173,658

2,515,218967,590

225,034,144

3,404,3857,372,734

13,051,40458,213,063

176,551,862

$ 2,286,55018,173,658

2,515,218967,590

225,034,144

3,404,3857,372,734

13,051,40458,213,063

176,551,862

62



31 DECEMBER 2015

3. Financial Risk Management (Cont’d):

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 loans, customer deposits and other funding instruments.

The exposure is managed through the matching of funding products with financialservices and monitoring market conditions and yields.

Loans

The Society generally invests in fixed rate loans to members for terms that average five years, however, mortgage loans can extend to a maximum of twenty-five (25) years. These are funded mainly from member deposits and shares and loan repayments.

63



31 DECEMBER 2015


Interest rate sensitivity analysis

The Society’s 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.

2015

EffectiveRate

Up to1 year

1 to5 years

Over5 years

Non-InterestBearing Total

Financial Assets

Cash in hand and at bankAvailable-for-Sale investmentsAccounts receivable and

prepaymentsHeld-to-Maturity investmentsLoans to members


Accounts payable and accrualsMembers’ depositsMembers’ shares Loans

0.01%0.79%

0.00%1.79%

12.38%

0.00%2.47%3.00%7.75%

$ 4,899,40822,214,404

---

-61,111,372

189,774,9711,280,464

$ --

-1,071,788

239,234,311

---

10,731,658

$ --

---

----

$ --

2,749,293--

11,330,041---

$ 4,899,40822,214,404

2,749,2931,071,788

239,234,311

11,330,04161,111,372

189,774,87112,012,122

2014

EffectiveRate

Up to1 year

1 to5 years

Over5 years

Non-InterestBearing Total

Financial Assets

Cash in hand and at bankAvailable-for-Sale investmentsAccounts receivable and

prepaymentsHeld-to-Maturity investmentsLoans to members


Bank overdraftAccounts payable and accrualsMembers’ depositsMembers’ shares Loans

0.01%0.83%

0.00%2.97%

11.81%

11.25%0.00%2.61%2.50%9.00%

$ 2,286,55018,173,658

---

3,404,385-

58,213,063176,551,862

870,702

$ --

-967,590

225,034,144

----

12,180,702

$ --

---

-----

$ --

2,515,218--

-7,372,734

---

$ 2,286,55018,173,658

2,515,218967,590

225,034,144

3,404,3857,372,734

58,213,063176,551,862

13,051,404

64



31 DECEMBER 2015


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 reporting date. The Society relies heavily on its written Policies and Procedures Manuals, 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 Society’s lending philosophy; provide policy guidelines to team members involve in lending; establish minimum standards for credit analysis, documentation, decision making and post-disbursement administration; as well as create the foundation for a sound credit portfolio.

The Society’s 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.

The Society is able to make daily calls on its available cash resources to settle financial and other liabilities.

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 Society’s assets as well as generating sufficient cash from new and renewed members’ deposits and shares.

To manage and reduce liquidity risk the Society’s management actively seeks to match cash inflows with liability requirements.

65



31 DECEMBER 2015


c) Liquidity risk (cont’d) -

Liquidity gap

The Society’s exposure to liquidity risk is summarized in the table below which analyses assets and liabilities based on the remaining period from the Balance Sheet date to the contractual maturity date.

2015Up to1 year

1 to5 years

Over5 years Total

Financial Assets



Accounts payable and accrualsMembers’ depositsMembers’ sharesLoans

$ 4,899,40822,214,404

2,749,293--

11,330,04161,111,372

189,774,9711,280,464

$ ---

1,071,788239,234,311

---

10,731,658

$ --

---

----

$ 4,899,40822,214,404

2,749,2931,071,788

239,234,311

11,330,04161,111,372

189,774,97112,012,122

2014Up to1 year

1 to5 years

Over5 years Total

Financial Assets



Bank overdraftAccounts payable and accrualsMembers’ depositsMembers’ sharesLoans

$ 2,286,55018,173,658

2,515,218--

3,404,3857,372,734

58,213,063176,551,862

870,702

$ ---

967,590225,034,144

----

12,180,702

$ -----

-----

$ 2,176,93318,173,658

2,515,218967,590

225,034,144

3,404,3857,372,734

58,213,063176,551,862

13,051,404

66



31 DECEMBER 2015


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 Society’s measurement currency. The Society is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the United States Dollar. The Society’s 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 Society’s information technology and control systems, as well as the risk of human error and natural disasters. The Society’s systems are evaluated, maintained and upgraded continuously. Supervisory controls are also installed to minimise human error.

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 Society’s 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.

67



31 DECEMBER 2015

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 Society’s accounting policies. See Note 2 (c).

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) Whether investments are classified as held-to-maturity investments, available-for-sale or loans and receivables.

ii) Whether leases are classified as operating leases or finance leases.

iii) Which depreciation method for fixed assets is used.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date (requiring management’s 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 reporting 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) Fixed assets

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.

68



31 DECEMBER 2015

5. Cash in Hand and at Bank:

Credit Union31 December

Group31 December

2014 2015 2015 2014

$ 318,443

1,542,6653,608

109,617

$ 327,898

2,922,3573,792

825,576

Cash in handRBC Royal Bank (Trinidad and Tobago) Limited- current account- US$ accountIntercommercial Bank Limited

$ 328,398

3,003,4873,792

1,563,731

$ 318,943

1,542,6643,609

421,334

$ 1,974,333 $ 4,079,623 $ 4,899,408 $ 2,286,550

6. Available-for-Sale Investments:


Group31 December

2014 2015 2015 2014

$ 11,969,142257,061

2,323,968

1103,623,378

$ 15,098,356261,818

2,277,112

1104,577,008

Trinidad and Tobago Unit Trust Corporation- TT$ Account- US$ Account

RBC Royal Bank (Trinidad and Tobago) Limited

Eastern Credit Union Co-operativeSociety Limited

Guardian Asset Management

$ 15,098,356261,818

2,277,112

1104,577,008

$ 11,969,141257,061

2,323,968

1103,623,378

$ 18,173,659 $ 22,214,404 $ 22,214,404 $ 18,173,658

7. Accounts Receivable and Prepayments:


Group31 December

2014 2015 2015 2014

$ -672,967948,162284,475

30,000

$ -1,770,772

288,452181,403

40,508

VAT receivablePayroll deductionsInterest receivablePrepaymentsOther receivables

$ 5851,770,772

288,452207,246482,238

$ 5,927672,967948,162311,786576,376

$ 1,935,604 $ 2,281,135 $ 2,749,293 $ 2,515,218

69



31 DECEMBER 2015

8. Loans to Members:

Loans to members are stated at principal outstanding net of a provision for doubtful debts. The provision is based on the Board’s evaluation of the loan portfolio under current economic conditions and past loan loss experience.


Group31 December

2014 2015 2015 2014

$ 231,321,250(6,535,367)

224,785,883

248,261

$244,049,039(4,981,823)

239,067,216

167,095

Loans to membersLess: Provision for loan losses

Staff loans

$244,049,039(4,981,823)

239,067,216

167,095

$ 231,321,250(6,535,367)

224,785,883

248,261

$225,034,144 $ 239,234,311 $239,234,311 $225,034,144

$ 5,053,1961,482,171

-

$ 6,535,367

$ 6,535,3671,283,369

(2,836,913)

$ 4,981,823

Provision for loans losses:Balance, beginning of yearCharge for the yearAmounts written-off

Balance, end of year

$ 6,535,3671,283,369

(2,836,913)

$ 4,981,823

$ 5,053,1961,482,171

-

$ 6,535,367

9. Held-to-Maturity Investments:


Group31 December

2014 2015 2015 2014

$ 95,199

25,000

280,470

66,640

179,463

320,818

$ 223,511

25,000

264,880

58,834

174,598

324,965

Shares - National Flour Mills Limited

- Central Finance FacilityCo-operative Society Limited

- First Citizen Bank Limited

Deposits - Praetorian Property Mutual Fund

- Trinidad and Tobago Unit Trust Corporation –North American Fund

- Trinidad and Tobago Unit Trust Corporation –Growth and Income Fund

$ 223,511

25,000

264,880

58,834

174,598

324,965

$ 95,199

25,000

280,470

66,640

179,463

320,818

$ 967,590 $ 1,071,788 $ 1,071,788 $ 967,590

70



31 DECEMBER 2015

10. Investment Properties:


Group31 December

2014 2015 2015 2014

$ 1,979,4171,780,583

--

$ 3,760,000

$ 3,760,000-

(580,000)(1,600,000)

$ 1,580,000

CostBalance, beginning of yearAdditionDisposalTransfer

Balance end of year

$ 3,760,000-

(580,000)(1,600,000)

$ 1,580,000

$ 1,979,4171,780,583

--

$ 3,760,000

11. Investment Property – Held-For-Sale:

This property is located a the Corner of Fort Street and Cuyler Street, Scarborough, Tobago.

71

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Balan

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5

Accu

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Balan

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5

$ 7,9

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0 -

7,900

,000 - - -

$12,3

71,79

9 -

12,37

1,799

3,392

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247,4

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3,639

,883

$

595,2

73 -

595,2

73

105,6

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135,4

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$ 1,1

80,15

524

0,923

1,421

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744,8

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,319

841,1

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$ 9

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336

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951,1

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530,9

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592,8

38

$ 21

6,282

22,16

3

238,4

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138,1

8421

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159,2

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$ 4,3

62,20

784

3,997

5,206

,204

3,664

,154

447,2

51

4,111

,405

$41

,357 -

41,35

7

41,35

7 -

41,35

7

$ 27

,581,6

061,1

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5

28,72

5,321

8,617

,611

903,6

78

9,521

,289

Net B

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5$

7,900

,000

$ 8,

731,9

16$

459,8

52$

579

,903

$ 3

58,32

7$

79,2

35$

1,094

,799

$-

$ 19

,204,0

32

Balan

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4$

7,900

,000

$ 8,9

79,35

2$

489,6

16$

435

,299

$ 3

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7$

78,0

98$

698

,053

$-

$ 18

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$ 3,2

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0 - - -4,7

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7,900

,000 - - - - -

$ 14,0

00,00

0 - -5,9

44,30

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12,37

1,799

1,360

,833

620,6

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10,96

6

3,392

,447

$

4,501

,944

2,037

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(5,94

4,301

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1,486

,859

29,76

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105,6

57

$ 1,0

75,82

310

4,332 - - -

1,180

,155

659,6

9185

,165 - -

744,8

56

$ 5

29,73

838

4,795 - - -

914,5

33

490,0

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,936 - -

530,9

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$ 1

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416

,338 - - -

216,2

82

121,7

3516

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138,1

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$ 4,24

8,381

237,2

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4,362

,207

3,192

,150

595,4

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) -

3,664

,154

$41

,357 - - - -

41,35

7

41,35

7 - - -

41,35

7

$ 27,7

97,18

72,7

80,38

5(12

3,464

) -(2,

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27,58

1,606

7,352

,645

1,388

,430

(123,4

64) -

8,617

,611

Net B

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4$

7,900

,000

$ 8,

979,3

52$

4

89,61

6$

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5,299

$ 3

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7$

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$ 6

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3$

-$ 1

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,995

Balan

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3$

3,200

,000

$ 12,6

39,16

7$

3,01

5,085

$

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32$

39

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$

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9$1

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31$

-$ 2

0,444

,542

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$15,3

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0 -

15,30

0,000 - - -

$30,0

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0 -

30,01

4,070

6,005

,047

600,2

81

6,605

,328

$

595,2

73 -

595,2

73

105,6

5729

,764

135,4

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$ 1,18

1,598

240,9

23

1,422

,521

746,2

9996

,319

842,6

18

$ 9

19,28

436

,632

955,9

16

534,9

2962

,357

597,2

86

$21

6,282

22,16

3

238,4

45

138,1

8421

,026

159,2

10

$ 4,37

7,957

843,9

97

5,221

,954

3,679

,225

447,9

32

4,127

,157

$ 671

,754 -

671,7

54

621,0

0950

,745

671,7

54

$ 41

,357 -

41,35

7

41,35

7 -

41,35

7

$ 53,3

17,57

51,1

43,71

5

54,46

1,290

11,87

1,707

1,308

,424

13,18

0,131

Net B

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ce as

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mber

2015

$15,3

00,00

0$2

3,408

,742

$ 4

59,85

2$

579,9

03$

358

,630

$ 7

9,235

$ 1,0

94,79

7$

-$

-$

41,28

1,159

Balan

ce as

at 31

Dece

mber

2014

$15,3

00,00

0$2

4,009

,023

$ 4

89,61

6$

435,2

99$

384

,355

$ 7

8,098

$ 6

98,73

2$

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45$

-$

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5,868

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Addit

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Balan

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Charg

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Balan

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mber

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$ 5,4

11,28

8 - - -9,8

88,71

2

15,30

0,000 - - - - -

$ 28,1

25,82

1 - -5,9

44,30

1(4,

056,0

52)

30,01

4,070

3,620

,588

973,4

93 -1,4

10,96

6

6,005

,047

$

4,501

,944

2,037

,630 -

(5,94

4,301

) -

595,2

73

1,486

,859

29,76

4 -(1,

410,9

66)

105,6

57

$ 1,0

77,26

610

4,332 - - -

1,181

,598

661,1

3485

,165 - -

746,2

99

$ 5

34,48

938

4,795 - - -

919,2

84

493,5

1841

,411 - -

534,9

29

$ 1

99,94

416

,338 - - -

216,2

82

121,7

3516

,449 - -

138,1

84

$ 4,26

4,131

237,2

90(12

3,464

) - -

4,377

,957

3,205

,857

596,8

32(12

3,464

) -

3,679

,225

$ 6

71,75

4 - - - -

671,7

54

528,0

8192

,928 - -

621,0

09

$

41,35

7 - - - -

41,35

7

41,35

7 - - -

41,35

7

$ 44,8

27,99

42,7

80,38

5(12

3,464

) -5,8

32,66

0

53,31

7,575

10,15

9,129

1,836

,042

(123,4

64) -

11,87

1,707

Net B

ook V

alue

Balan

ce as

at 31

Dece

mber

2014

$15,3

00,00

0$ 2

4,009

,023

$

489

,616

$

435,2

99$

384

,355

$

78,09

8$

698

,732

$ 5

0,745

$

-$ 4

1,445

,868

Balan

ce as

at 31

Dece

mber

2013

$ 5,4

11,28

8$ 2

4,505

,233

$ 3

,015,0

85$

416,1

32$

40

,971

$

78,20

9$ 1

,058,2

74$

143,6

73$

-

$ 34,6

68,86

5

75



31 DECEMBER 2015

13. Deferred Taxation:


Group31 December

2014 2015 2015 2014

$ --

$ -

$ --

$ -

Balance at beginning of yearEffect of Statement of Comprehensive Income

Balance at end of year

Deferred taxation is attributable to the following item:

$ 97,452(504,484)

$ (407,032)

$ 97,452-

$ 97,452

$ --

$ -

$ --

$ -

Excess of net book value overwritten-down tax value

Tax losses carried forward$ (1,029,398)

622,366

$ (407,032)

$ 97,452-

$ 97,452

14. Accounts Payable and Accruals:


Group31 December

2014 2015 2015 2014

$ 2,272,189185,344

3,651,824724,751

-50,000

134,083

$ 2,570,218225,688

3,789,774930,685

-1,165,3072,350,559

Provision for staff severanceUnallocated depositsSundry creditors and accrued expensesDeposit interest payableVAT payableCustomer depositsProvision for back pay

$ 2,570,218225,688

5,041,267930,685

32,187179,438

2,350,559

$ 2,272,189185,344

3,771,874724,751105,055179,438134,083

$ 7,018,191 $ 2,350,559 $ 11,330,042 $ 7,372,734

15. Members’ Shares:

According to the Bye-Laws of PSCU Credit Union Co-operative Society Limited, the capital of the Society may be composed of an unlimited number of shares of $5 each.

76



31 DECEMBER 2015

16. Loans:


Group31 December

2014 2015 2015 2014

$ 5,000,000-

5,000,000

-5,000,000

$ 5,000,000-

5,000,000

-5,000,000

(a) Rhand Credit Union Co-operativeSociety Limited

(b) Intercommercial Bank Limited

Current portionNon-current portion

$ 5,000,0007,012,122

12,012,122

1,280,46410,731,658

$ 5,000,0008,051,404

13,051,404

870,70212,180,702

$ 5,000,000 $ 5,000,000 $ 12,012,122 $ 13,051,404

(a) This balance represents a loan granted by Rhand Credit Union Co-operative Society Limited in the amount of $5 million. The loan is secured on the property at Cocorite Street, Arima and accrues interest at a rate of 5.2% per annum for a period of 5 years. The loan is payable on 4 January 2017 or by equal annual instalments.

(b) This balance represents a loan granted by the Intercommercial Bank Limited in the amount of $15 million to construct a building on premises situated at 57-59 Dundonald Street, Port of Spain. This loan is secured by a legal mortgage over these premises. This loan accrues interest at a rate of 7.75% per annum and is repayable by monthly instalments of $152,147 over periods of 180 months.

17. Reserve Fund:

In accordance with the Co-operatives Societies Act, 1971, Section 47 (2), 10% of the annual net surplus of the Society is charged to the Reserve Fund.

18. Education Fund:

In accordance with the Co-operatives Societies Act, 1971, Section 50(b), 5% of the net surplus for the year, after making provision for the Reserve Fund is allocated to the Education Fund. This fund is to be used for educational purposes of its members.

19. Dividend Equalisation Fund:

This fund was set up to provide a reserve for the payments of dividends.

77



31 DECEMBER 2015

20. Revaluation Reserve:

The revaluation of the Credit Union’s properties was done by independent valuators Charles B. Lawrence and Associates Limited during the year 2014. This resulted in an increase in the property revaluation reserve of $7,613,243.

21. Investment Remeasurement Reserve:

The Society has created an investment reserve which includes the following:-

i) Unrealised gains/losses on available-for-sale investmentsii) Transfers from Undivided Earnings.

22. Dividends:

The Board of Directors has proposed a dividend of $6,159,270 and honoraria of $283,000 for the year ended 31 December 2015. This is subject to approval by the membership of the Society at the Annual General Meeting and has not been recorded as a liability in the financial statements in accordance with IAS #10.

23. Capital Risk Management:

The Society manages its capital to ensure that it will be able to continue as a going concern while maximising the return to members, whilst providing value to its members by offering loan and savings facilities. The Society’s overall strategy remains unchanged from previous years.

The capital structure of the Society consists of equity attributable to members, which comprises issued members shares, reserves and undivided earnings.

24. Commitments and Contingencies:

In accordance with the industrial agreement between the Society and the Bank and General Workers Union, the Society is contingently liable for termination benefits of approximately $2,570,218 (2014: $2,272,189). A provision of $298,029 has been made for the year ended 31 December 2015 (2014: $44,148). The balance of the Severance Fund at 31 December 2015 was $2,570,218 (2014: $2,272,189).

78



31 DECEMBER 2015

25. Fair Values:

Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arm’s 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 arm’s 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 2015.

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.

79



31 DECEMBER 2015

26. 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.

Balances and transaction with related parties and key management personnel during the year were as follows:

31 December2015 2014

Assets, Liabilities and Members’ Equity

Loans and other receivablesDirectors, committee members, key management personnel

Shares, deposits and other liabilitiesDirectors, committee members, key management personnel

Interest and other incomeDirectors, committee members, key management personnel

Interest and other expensesSubsidiary, directors, committee members, key management personnel

Key management compensationShort-term benefits

$ 2,959,317

$ 724,213

$ 104,031

5,053

$ 250,800

$ 2,682,155

$ 12,103

$ 2,982,927

$ 684,121

$ 115,264

3,669

$ 250,800

80



31 DECEMBER 2015

27. Cost of Funds:


Group31 December

2014 2015 2015 2014

$ 182,937212,775832,587212,292

260,000

$ 204,821204,014902,145142,823

260,000

Bank charges and interestInterest – GIANT depositsInterest – Members’ fixed depositsInterest – Members’ ordinary depositsInterest – RHAND Credit Union

Co-operative SocietyLimited loan

$ 796,767204,014902,145142,823

260,000

$ 893,472212,775832,587212,292

260,000

$ 1,700,591 $ 1,713,803 $ 2,305,749 $ 2,411,126

28. Administrative Expenses;


Group31 December

2014 2015 2015 2014

$ 218,562174,392158,585292,123741,581

-32,332

162,86319,551

-72,56661,152

-21,440

522,33059,748

$ 225,740127,330188,775297,789537,512

-32,428

225,3645,945

-90,51486,80711,56433,157

540,52241,549

Annual General MeetingAssociation duesAudit feesElectricityLegal and professional feesLicensesLoan processing feesOffice suppliesOSHAPenalty and interestPostage and stampsRecoveries expensesSpecial meeting expensesStorage Telephone Vehicle expenses

$ 225,740127,330203,895297,789626,342

2,49632,428

227,3765,9458,366

90,51486,80711,56433,157

542,02341,549

$ 218,562174,392173,585292,123830,411

-32,332

169,39219,551

79072,56661,152

-21,440

530,06559,748

$ 2,537,225 $ 2,444,996 $ 2,563,321 $ 2,656,109

81



31 DECEMBER 2015

29. Risk Management Expenses:


Group31 December

2014 2015 2015 2014

$ 383,81555,152

113,979455,101

$ 549,218-

101,303481,437

CUNA insuranceDeath claims expensesGeneral insuranceSecurity

$ 549,218-

162,834481,437

$ 383,81555,152

200,720455,101

$ 1,008,047 $ 1,131,958 $ 1,193,489 $ 1,094,788

30. Personnel Expenses:


Group31 December

2014 2015 2015 2014

$ 18,0006,647,755

9,381459,541130,063261,652

99,241510,026

5,000107,775153,086

300

$ -6,873,8692,216,476

506,500124,980189,859109,300744,901

-92,353

217,121156,104

GratuitySalariesBack payNIS – Employers’ contributionsMedical insurance contributionStaff trainingTravel, subsistence and uniformsSeverance benefitsStaff grantsStaff performance incentivesStaff recognition and appreciationStaff uniforms

$ 18,0006,903,0862,216,476

508,575124,980189,859109,300744,901

-92,351

217,121156,104

$ 18,0006,710,141

9,381464,629130,063261,652

99,301510,026

5,000138,025153,086

300

$ 8,401,820 $ 11,231,476 $ 11,280,753 $ 8,499,604

82



31 DECEMBER 2015

31. General Expenses:


Group31 December

2014 2015 2015 2014

$ 299,38425,149

8,335153,905109,305

1,388,43013,636

398,04389,496

1,482,171--

43,7719,092

609,592210,172

49,6572,040

182,5362,779

227,84390,620

$ 352,7933,443

12,716341,427

86,032903,678

10,590390,677

69,7891,283,369

80,000277,362138,490

21,313604,164201,025

33,382-

141,943877

269,114-

Advertising and marketingBad debt expensesComputer consultancyComputer expensesCorporate activitiesDepreciationDonationsEducation expensesJanitorial servicesLoan loss expenseLoss on disposal of investment propertyMisappropriation provisionMiscellaneous expensesRates and taxesRental of buildingsRental of equipmentRental of plantsRental of landsRepairs and maintenance – buildingsRepairs and maintenance – equipmentStationery and printingValuation expense

$ 352,7933,443

12,716341,427

86,0321,308,424

10,590390,677

69,7891,283,369

80,000277,362138,490

21,313604,164201,025

33,382-

357,672877

269,114-

$ 299,38425,149

8,335153,905109,305

1,836,04313,636

398,04389,496

1,482,171--

43,7719,172

609,592210,172

49,6572,040

313,4112,779

227,84390,620

$ 5,395,956 $ 5,222,184 $ 5,842,659 $ 5,974,524

32. Board and Committees’ Expenses:


Group31 December

2014 2015 2015 2014

$ 19,100--

58,139405,300145,287

52,724

$ 19,804--

50,399411,183

87,46258,795

Board/Committee Recognition andAppreciation

Directors’ feesMeals and entertainmentMeetingsOfficer’s allowancesOther expensesTravel, subsistence and accommodation

$ 19,80421,000

72650,399

411,18387,46258,795

$ 19,10036,500

1,77358,139

405,300145,287

52,724

$ 680,550 $ 627,643 $ 649,369 $ 718,823

83



31 DECEMBER 2015

33. Taxation:


Group31 December

2014 2015 2015 2014

$ ----

$ -

$ -

$ -----

--

$ ----

$ -

$ -

$ -----

--

Corporation TaxBusiness LevyGreen Fund LevyDeferred taxation

Net surplus before taxation

Tax calculated at 25%Business levyGreen Fund LevyPortion re. Credit Union activitiesExpense not deductible for tax purposesPermanent difference re: Fixed Assets

which do not attract Wear and TearAllowance

Other

(14$ -

(5,150)(2,575)

(504,484)

$ (512,209)

$ 10,000,061

$ (2,500,015)(5,150)(2,575)

1,774,551(2,137)

(223,117)-

(14$ (210,875)

-(2,575)

-

$ (213,450)

$ 9,702,859

$ (2,425,715)-

(2,575)(2,186,881)

(308)

-28,267

$ - $ - $ (512,209) $ (213,450)



Annual Report 2016

PSCU Credit UnionCo-operative Society Limited.

BUDGETED 2016 BUDGETED

2015 ACTUAL 2015 2015 VARIANCE$000 $000 $000 $000

Income :

Loan Interest 28,553 27,830 29,609 1,779Investment Income 214 182 187 5Rental Income 80 70 47 -23Other Income 1,573 1,576 1,413 -163

Total Income 30,420 29,659 31,256 1,597

Expenses :

Cost of funds 1,265 1,552 1,714 -161Administrative Expenses 2,569 2,437 2,445 -8Risk Management Expenses 1,199 1,095 1,132 -37Personnel Expenses 9,776 8,971 11,231 -2,260General Expenses 5,314 5,784 5,223 561Board and Committee Expenses 651 637 628 10

Total Expenses 20,774 20,477 22,373 -1,896

NET SURPLUS/(LOSS) : 9,646 9,182 8,883 -298

ITEM BUDGETED 2016 BUDGETED

2015 ACTUAL 2015 2015 VARIANCE $000 $000 $000 $000

Building Improvements - Freehold 310 440 0 440Air Conditioning 0 0 22 -22Furniture and Fixtures 75 113 241 -128Office Equipment 121 47 37 10Computer Hardware and Software 983 980 844 136

Total 1,489 1,580 1,144 436

Budgeted Income and Expenditure Statement

for the year 2016

Budgeted Capital Expenditure 2016

84



Annual Report 2016

ResolutionsWhereas the Board of Directors is committed to provide the members of the Society with a reasonable return on their investment; and

Whereas the Society is steadfastly working towards providing its members with efficient member service in facilities which are customer friendly; and

Whereas the Board of Directors continue to keep pace with current statutory and topical issues within the finan-cial services sector; and

Whereas the PSCU Credit Union Co-operative Society Limited has realised a Net Surplus 8.9M for the financial year ending 31 December 2015.

BE IT RESOLVED THAT:

A dividend of 3.5%, to be paid in cash, be declared on average shareholdings for 2015.

HONORARIUMWhereas the Board of Directors and other Statutory Committees have performed with efficiency and dedica-tion; andWhereas the PSCU Credit Union Cooperative Society Limited achieved a Net Surplus $ 8.9 Million.

BE IT RESOLVED THAT:An honorarium of $260,000 be declared to be divided among the Board and Committees.

AUDITORS

BE IT RESOLVED THAT:The Firm of PKF Chartered Accountants & Business Advisers be retained as Auditors of the Society for the financial year 2016.

AMENDMENT TO BYE LAWS

BE IT RESOLVED THAT BYE LAW #2 WHICH STATES:

The Society shall be called “The PSCU Credit Union Co-operative Society Limited”. The Registered address shall be No. 57 Dundonald Street, Port of Spain or such other place as the Board may from time to time decide. In the event of any change of the name or of the regis-tered address, notice of such change shall be sent to the Commissioner within thirty (30) days

BE AMENDED TO:

The Society shall be called “The PSCU Credit Union Co-operative Society Limited”. The Registered address shall be No. 24 Sackville Street, Port of Spain or such other place as the Board may from time to time decide. In the event of any change of the name or of the regis-tered address, notice of such change shall be sent to the Commissioner within thirty (30) days

BE IT RESOLVED THAT BYE LAW #26 WHICH STATES:

Financial YearThe financial year of the Society, shall begin on the first (1st) day of November each year and end on the last day of October following.

BE AMENDED TO:

Financial YearThe financial year of the Society, shall begin on the first (1st) day of January each year and end on the last day of December following.

85



Annual Report 2016

Compliance and the LawIn the fight against Money Laundering and the Financing of Terrorism

Apart from the Co-operative Societies Act 81:03, there are several other legislations which impact upon the operations of our Credit Union and others alike. These include:

• The Finance Act, 2015• Financial Intelligence Unit of Trinidad and Tobago Act, 2009• Anti-Terrorism Act, 2005• Proceeds of Crime Act, 2000• Financing of Terrorism Regulations, 2011• Financial Intelligence Unit Regulations, 2011• Financial Obligation Regulations, 2010

Credit Unions by law are required to obtain standard personal information from its members ensuring that it is accurate and up to date. Under the Proceeds of Crime Act, 2000, Section 2, the Credit Union is classified as a financial institution, having been registered as a Society under the Co-operative Society’s Act.

As a result, all financial institutions, in accordance with the Financial Obligation Regulations (FOR), must have a Know Your Customer Policy, (including customer due diligence procedures) as part of their Compliance as detailed below:

Section11. (3) The financial institution or listed business shall:(a) request evidence of the identity of the customer in accordance with its compliance programme established under regulation 7 (a) and record all the information received; and (b) implement any other customer identification policies and procedures required to prevent money laundering.

Section12. (1) A financial institution or listed business shall identify and owner verify the identity of the benefi-cial owner of any accounts held at the financial institu-tion or listed business or potential accounts and for that purpose, shall request original identification documents, data or other information form an applicant for business.

Section15. (1) The financial institution or listed business shall on initiating a business relationship or transaction with an applicant, obtain relevant identification records of the applicant as follows:(a) full name of the applicant(s);(b) permanent address and proof thereof;(c) date and place of birth;(d) nationality;(e) nature and place of business/occupation where applicable;(f) occupational income where applicable;(g) signature;(h) purpose of the proposed business relationship or transaction and source of funds; and

(i) any other information deemed appropriate by the financial institution or listed business.

(2) A valid passport, national identification card or driver’s license shall be proof of identification and shall also be obtained or examined by the financial institution or listed business.

Although it may seem as an unnecessary intrusion and a bother at times, and to some, as though we are behaving ‘just like the banks’, which are classified as financial institutions also, we are simply ensuring that we do our part in complying with the law. We must do our part in the local, regional and international fight against money laundering and the financing of terrorism.

86



Annual Report 2016

1. ANNE MARIE DICKIE : On September 19th 1996, I joined PSCU Credit Union. Since then, my entire family including my nieces, nephews and grandchildren all joined the credit union including several friends and my colleagues. I am also a member of the Silver’s Club. The staff at the San Fernando branch is very friendly, I feel at home and comfortable with their services. Despite all the developments in the credit union, there is still that sense of belonging.

2. ANNE MARIE BOWEN YOUNG: In the year 1976, I joined PSCU Credit Union at the Chaguanas Branch. My reason for joining was that I saw a need to save my limited resources and I felt that PSCU was the ideal place to start. Since that day I joined, PSCU have continu-ally exceeded my expectations. I highly recommend PSCU Credit Union to anyone who is seeking to save their money in a financial institution that is safe and secure.

3. BARBARA COX: On March 5th 2001 I joined PSCU Credit Union, Arima branch. The employees at that branch have always showed me great respect and courtesy. The hard work and dedication of employees such as Mrs. Karen Holder Parks, Tricia De Freitas and Keisa Hamilton, were very helpful in making my experience a delightful one. The present front line staff at the Arima Branch should also be commended for their exemplary Customer Services Skills. I thank PSCU Credit Union for the invaluable service offered to me.

Member Testimonials

4. JOAN BRAVO OLIVIER: I Joan Bravo Oliver a founding member for the past years congratulate PSCU Credit Union on their 50th year anniversary. I joined PSCU Credit Union in the 70’s at the Arima Branch. As the years went by, I was able to borrow money from the credit union which was beneficial to me in the long run. The staff at the Arima branch played a significant role in my life, they understood my needs, was genuine and pleasant. Thank God I never regretted joining. May God’s continue to richly bless PSCU Credit Union.

5. MANUELITA FERMIN FELICIAN: In the year 1982, I joined PSCU Credit Union at the Port of Spain office. My family and I were able to benefit from PSCU’s vacation loans, the children Christmas party, which my grandchildren now enjoy. PSCU assisted my children with loans to start their own business, to study and with their every endeavor. The staff was always pleasant, ready to assist me from Manager to Assistant, President to Loan officer, all of the front desk staff, security officers, and even the Cashiers. I just want to say thank you to all of the staff members and I pray that the level of hospitality will be maintained.

88



Annual Report 2016

Notes

89



Annual Report 2016

Notes

90

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