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Annual Report 2006Board of Directors' ReportFOR THE PERIOD APRIL 2006 TO APRIL 2007 Introduction:Fellow members - your Board of Directors is pleased to present its report for another successful year, ended 31st December 2006. The year 2006 was a very challenging one for the Credit Union movement as a whole. The cost of living (by measure of the Consumer Price Index) and the inflationary effect of oil price increases led to significant negative impact on members available cash reserves. Members’ household budgets were getting more difficult to control and maintain. However, despite that situation The Communal continued to provide dedicated high quality service to its members. We expect to continuously provide new and improved services as we grow older and plan strategic initiatives for development. We are strengthening our operational procedures to control the growth of the Credit Union; we are continuously upgrading the skills of the staff by encouraging relevant training and the employment of qualified and experienced staff. We have to foster and maintain strong membership bonds so as to ensure the growth and stability of The Communal and the Credit Union movement as a whole. We have established strong working alliances with other Credit Unions locally and many overseas; in Trinidad, Jamaica, Barbados and throughout the OECS. We share and learn from each other’s experiences. The overall strategic vision of The Communal is predicated on the principle that our Credit Union is a financial co-operative and must operate as such. With the conviction that the values and benefits that the members obtain from the Credit Union, coupled with experienced and sound management is what provides the attraction for the sustained membership growth over the past four (4) years. The membership has grown on average of over one hundred (100) members per month. At the 24th Annual General Meeting held Saturday April 22, 2006, a new Board of Directors was elected and subsequently appointed to the following positions at the first meeting on May 02, 2006.
Performance:The Communal, notwithstanding the fierce competition faced over the last two (2) years, again recorded improvements in all the important areas of the operation as follows:
We are continuously monitoring and managing our loan portfolio to ensure that loans are properly processed so as to reduce the risk of delinquency. The new membership in 2006 (1,257) contributed approximately $2,161,768 in additional shares/savings and deposits and borrowed $1,118,761 in various loan products. We again experienced share withdrawals of $254,174 by members for varied reasons. This highlights the need for the Credit Union to have Permanent Shares. We have to continue to build our institutional capital so as to strengthen the Credit Union and make it less vulnerable to liquidity deficiencies or weak operational results.
Income/Expenses:The overall income of the Credit Union was $3,329,662 resulting from the following as the significant contributors.
The cost of operations of the Credit Union is under constant control and review by the Board of Directors and management. Examples such as personnel costs, LP/LS insurances, interest costs, stationery, advertising/promotion, utilities etc. have all shown increases. There was an overall increase in costs, some of which are uncontrollable due to inflationary conditions in the economy, while others may be directly attributable to the level of operations. The Directors are ever conscious of the growing operational costs. The Credit Union business is not like other commercial activities where increased costs can be passed on so as to recover the increases from its members. Delinquency:The management and staff of the Credit Union are continuously monitoring the performance of the loan portfolio so as to identify as early as possible all loans that are not serviced as agreed. Our operating delinquency procedures are working efficiently, however with the prospect of a reduction in economic activities in the broader business environment, your Credit Union has to aggressively monitor all non-performing loans so as to take immediate actions to secure the Credit Union’s assets and your investment in the Credit Union. Obviously we will have to refer some delinquent loans to our lawyers for action to recover outstanding balances. Borrowers must remember that they have an obligation to service their loans as required. It is necessary to pay monthly installments on time. Branches:Your Credit Union opened a new branch office on December 18, 2006 at the Esplanade Mall. This was as a result of a survey conducted in 2005. Members had requested that a branch should be established in the downtown area so as to facilitate the members to conduct their business closer to the hub of the transport terminal and business activities centre. The branch is now fully operational with full service being offered at very accommodating opening hours – 9:30 a.m. to 5:00 p.m. Operations are now being carried out at the following locations:
Lower Depradine Street, Gouyave, St. John’s Vincennes Branch at Windsor Forest, St. David’s Esplanade Mall, St. George’s Training and Development:The Communal shares the view that a trained, educated and empowered employee is a great asset to the Human Resource of any organisation and the strength of the Credit Union itself. Therefore, your Credit Union has invested in the participation of management, staff and committee members in attendance at local and regional training workshops, seminars and professional presentations. Through our alliances with local and external Credit Unions we exchange training materials and accept offers to attend workshops and seminars. The Communal will therefore continue to invest in its human capital so as to produce employees who are competent to deliver high quality service to our members and the communities in which we operate. Some of the courses which were attended by Committee members and staff include the following:
Members of the management, staff and general membership continue to attend the Caribbean Confederation of Credit Unions’ Annual General Meeting and Convention and the OECS Annual Credit Union Summit. Community:We will like to maintain our focus on people and communities. We would share our part in advancing the cause of those we serve through our corporate social responsibility. As part of our commitment The Communal has made contributions to many needy individuals especially those with disabilities – e.g. blind, deaf and young children of members. Every case is examined on its own merit. We have also sponsored young children to attend workshops and training sessions which were conducted by professionals. Throughout the year donations were made to various charities, schools, church groups and community organizations We have given our commitment to continue with our scholarship programme for members’ children. At our last scholarship awards ceremony held in September 2006 it was stated that over sixty-four thousand dollars ($64,000.00) will be invested in scholarships and educational grants to members’ children. We stand by that commitment. At present we have six (6) students on scholarship at various secondary schools throughout the island. We aim to empower our people with the skills, tools and information that will enhance their knowledge, health, safety and personal well being. Corporate Governance And Relations With The Regulatory Authorities:In accordance with statutory requirements, the Board of Directors met at least once a month to examine the financial results of the Credit Union, to evaluate the plans and to discuss strategic matters for the way forward. All the reports required by the Registrar of Co-operatives and the Grenada Co-operative League were submitted on time.
Future Direction:The Communal has to complete the development and implementation of its strategic plan. This will be done with input from members. Members’ needs are of paramount importance for the further growth of the Credit Union. However, these needs have to be thoroughly analyzed and evaluated so that whatever is initiated, ultimately will lead to the growth of the Credit Union. The Communal is now having talks with a sister Credit Union and a local Bank in pursuit of issuing members with ATM, debit and later on Credit Card facilities. This is in response to the demands of the members for new and expanded services. Your Board will continue to use all possible avenues to market and promote the Credit Union. Our marketing strategy must be defined to attract more membership so as to increase our pool of funds in order to provide more loan facilities to you. We must aim at promoting the Credit Union through community based activities and institutions e.g. schools, local groups and youth organizations and interactive programmes such as quizzes and debates. All of these should form part of our strategic plan. We are now building a relationship with T.A. Marryshow Community College by sponsoring awards, offering financial counselling and guidance to the staff and students on a quarterly basis. So you see your Credit Union is extending itself to a potential market for future membership so as to ensure the sustainable growth of the Credit Union. We have to develop and maintain a strategy to attract and involve the youths in the Credit Union movement. The future of the Credit Union movement depends on their contribution. We have continued our initiatives which are aimed at obtaining and maintaining alliances with other Credit Unions in the OECS region and the wide Caribbean. We have had the opportunity at the Caribbean Confederation of Credit Union’s Annual General Meetings and Conventions to establish working relationship with other Credit Unions in the region e.g. City of Kingston, City of Bridgetown, Roseau, Nevis, Community First and UWI Cavehill Co-operative Credit Unions, among others. Nationally we have collaborated with other local Credit Unions in training, socials and management discussions. All these will eventually strengthen the Credit Union movement in Grenada.
CONCLUSION:We look ahead with great expectation to the development of the Credit Union by involving the membership, management and staff, the Registrar and his department staff, the Grenada Co-operative League Limited and all other interested parties. We have made large strides so far. We see no reason why we should not continue on the path to sustainable growth and development. All of this depends on the involvement of you the members. There would always be challenges facing us in this overheated competition in the financial market, but your Board, Management committees, all Executive management through their hard work has all ensured that the Communal stays on top. The Board of Directors expresses thanks to the general membership for their continued support throughout the years and hope and pray that you will continue to empower yourselves and your Credit Union by doing all your financial business with The Communal Co-operative Credit Union Limited. The success achieved in the year under review was only possible due to the contributions made by members which enabled us to provide you with high quality good products and services. We anticipate your continued support, suggestions and recommendations for the provision of greater benefits to you. We have opened the Esplanade Mall Branch as a result of your request for this facility closer to you. We are sure that you will use it to conduct all your business. The sustained hard work of the staff must be complimented. Without such dedicated and hardworking staff, The Communal would not have achieved this continuous success over the past five (5) years. We also express our sincere thanks to the retiring members of the Board, Supervisory and Credit Committees for their dedicated service. Once again it was a successful year of which we must be proud. We extend our appreciation to the general membership for the confidence placed in us to direct your affairs; to the Registrar and the staff of the Co-operative Department and the Grenada Co-operative League Limited for their supervision and assistance in ensuring that The Communal is effectively managed. Let us take up the challenge to grow our Credit Union over the next decade. You must protect your asset – service your loans as per your loan agreement; save regularly – savings is a habit, borrow wisely.
TO GROW WITH US 'SAVE WITH US!!! On behalf of your Board of Directors
______________________ ____________________ __________________ PRESIDENT VICE-PRESIDENT TREASURER
_____________________ _____________________ __________________ Dianne Brune Christopher Penny Raymond Lockiby SECRETARY ASST. SECRETARY/ DIRECTOR TREASURER
______________________ Anthony Forsyth DIRECTOR |
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