Annual Report & Accounts 2017 Member First is different. It’s fresh, modern and dynamic, but firmly rooted in the community. We are technically capable and accessible remotely, yet we also have a visible local presence. By concentrating on the services members want, and offering expertise in these areas, Member First can become their first choice for savings and loans. We believe in the Credit Union ethos. Our members are always looking to the future. Now, with Member First, their Credit Union is too.
Swords Branch Members Day with FM104 Whitehall Colmcille GAA Defibrillator Presentation 2017 ANNUAL REPORT & ACCOUNTS 2017
Content
Notice and Agenda for Annual General Meeting 4 Agenda 5 Standing orders 6 Report of the Chair 8 Report of the Chief Executive Officer 11 Community Report 14 Directors Report and Financial Statements 19 Credit Union Resolutions 55 Board Oversight Committee Report 56 Audit Committee Report 57 Risk Committee Report 58 Nomination Committee Report 59 Central Credit Register Notice 60 Submitting Questions for the AGM 63
Sponsorship of 73rd Raheny Scouts St. Joesphs Church Bonnybrook Parish Donation
3. ANNUAL REPORT & ACCOUNTS 2017
Notice and Agenda for Annual General Meeting Notice is hereby given that the Annual General Meeting (AGM) of Member First Credit Union will take place on Monday, 11th December 2017, at 8.00 p.m. in the Crowne Plaza, Northwood Park, Santry. Members are requested to bring this report and their passbooks to the AGM.
All members attending the AGM will be eligible to participate in a FREE draw on the night.
Free car parking will be available in the Crowne Plaza Hotel. Transport by bus will be available for members from the Credit Union offices. Please see below bus timetable to the AGM. Members must reserve a seat by contacting us on 8513 400 or emailing [email protected]
Bridget Johnston, Secretary.
Bus serving NWS, Donnycarney, Artane Location Departure time NWS/DBCU Bus. MFCU North William Street Office 6.35pm NWS/DBCU Bus. Donnycarney Church 6.45pm Artane Bus. Member First Credit Union, Artane Branch 7.00pm Artane Bus. Roundabout Pub, Ardlea Road 7.05pm Artane Bus. Artane Beaumont Family Recreation Centre 7.15pm Artane Bus. St. Luke’s Church, Kilmore West 7.20pm
Bus serving Coolock Location Departure time St Brendan’s Church, Coolock 7.00pm St Joseph’s Church, Bonnybrook 7.10pm Northside Shopping Centre, Taxi Rank 7.20pm
Bus serving Swords Location Departure time St Cronan’s School (Across from Dr. O’Kelly) 7.00pm JC’s Supermarket (Across from Howard’s Hardware) 7.10pm Member First Credit Union, Swords Branch 7.25pm
Bus serving Raheny Location Departure time Member First Credit Union, Raheny Branch, Church Car park 7.00pm
All buses will arrive at Crowne Plaza at approx. 7.50pm
4. ANNUAL REPORT & ACCOUNTS 2017
Agenda 1. Early Raffle at 8.00pm sharp 2. Ascertainment that a quorum is present 3. Adoption of standing orders 4. Reading and approval of minutes AGM 2016 5. Address by MFCU Chair
6. CEO Report MFCU Defibrillator Launch Raheny Village 7. Finance Report 8. Report of the Auditor 9. Report of Board Oversight Committee 10. Appointment of Tellers 11. Report of the Nomination Committee 12. Balloting 13. Community Report MFCU School Quiz 2017 14. Announcement of Election Results 15. Any other business 16. Adjournment of meeting 9.15pm sharp followed by refreshments *Subject to change
MFCU School Savings Scheme Best Saver Presentation
St. Joesph's National School St. Monica's GAA Defibrillator Saving Scheme Presentation 2017
5. ANNUAL REPORT & ACCOUNTS 2017
Standing Orders
1. Voting by the proposer. If the proposer is absent when the motion is called, the motion shall be deemed to have failed. Each member shall be entitled to one vote 5. A proposer of a motion may speak for irrespective of his/her shareholding, in such period as shall be at the discretion of accordance with section 82(2) of the Credit the Chair of the meeting and shall have the Union Act, 1997 (as amended). right of reply before the motion is put to the meeting for a vote. 2 – 3. Election Procedure 6. In exercising his/her right of reply, a proposer may not introduce new material. 2. Elections to the Board of Directors, to 7. The seconder of a motion shall have such the Board Oversight Committee and the time as shall be allowed by the Chair to position of Auditor shall be by majority vote second the motion. and by secret ballot. 8. Members are entitled to speak on any 3. When nominations are announced such motion and must do so through the tellers shall be appointed by the Chair Chair. All speakers to any motion shall have and ballot papers shall be distributed. such time as shall be at the discretion of the Nominations shall be in the following order: Chair. (a) nominations for Auditor; (b) nominations 9. The Chair shall have the absolute right for members of the Board Oversight to decide at any time when a motion has Committee; (c) nominations for Directors. been sufficiently discussed and may put the When voting is completed, the votes shall motion to the meeting giving the proposer be taken and tallied by the tellers. Any ballot the right of reply before doing so. paper which contains votes for more than the number required to be elected shall be 10 – 15. Miscellaneous void. All elections shall be by secret ballot
and by majority vote. When the votes have 10. The Chair of the Board of Directors shall been counted by the tellers, the results shall be the Chair of any general meeting, except be announced by the Chair. In the event that where he/she is not available, in which case all vacancies are not filled by the first ballot it shall be the Vice Chair, except where he/ further ballots shall be taken as required. In she is not available, in which case the Board the event of an equality of votes between shall decide amongst themselves who shall candidates for the remaining vacancies act as Chair of any general meeting. not filled in accordance with the above 11. The Chair may at his/her discretion, procedure one further ballot shall be taken extend the privilege of the floor to any and should that ballot fail to determine the person who is not a member. issue, the vacancies shall be filled by lot from 12. Matters not covered by the Agenda may among such candidates having an equality be introduced under “Other Business” at of votes. the discretion of the Chair. 13. The Chair’s decision on any matter 4 – 9. Motions to approve relating to these Standing Orders or interpretation of same shall be final. 4. All motions from the floor of the AGM 14. No member shall have more than one must be proposed and seconded by vote on each question at any general members present at the AGM and approved 6. ANNUAL REPORT & ACCOUNTS 2017
DIRT Notice meeting of the Credit Union or any Since 1 January 2014, all Credit Union adjournment thereof irrespective of his/her share dividend and deposit interest paid shareholding or the number of accounts in to members is subject to DIRT, with the his/her name in the Credit Union provided, exception of dividend or interest paid however, that except in voting at elections, to members who are exempt from DIRT. the presiding member shall have a second A rate of 39% applies to interest paid or casting vote in the event of equality of or credited on or after 1 January 2017. voting. Voting by proxy shall be allowed only when a member other than a natural The tax is deducted by the Credit Union person votes through a representative, who before the interest is paid to you. If you is a member of the group, duly authorised request it, you are entitled to be given in writing for that purpose and accepted as a statement of the amount of DIRT such by the Board of Directors. deducted from your interest. If you 15. Any matter to be decided upon by vote receive annual interest payments (or at the AGM shall, unless otherwise expressly similar profit-type payments) of over €300 provided for by law or the rules, be decided your Credit Union must automatically upon by simple majority. report this to Revenue.
16. Suspension Of Standing Orders Certain people may qualify for a refund of DIRT or may have their deposit interest Any one of these Orders or all of these paid without the deduction of DIRT. Standing Orders may be suspended on a These include: motion to this effect receiving a two-thirds majority of those present and entitled to • First -time buyers vote. • People aged over 65 • People with disabilities • Non-residents 17. Alteration Of Standing Orders However please note that specific criteria Standing Orders may be amended or altered apply where a refund or an exception at a general meeting and only if a motion to applies. Further information is available this effect has received a two-thirds majority to you at www.revenue.ie/en/additional- of those present and voting. incomes/dirt/index.aspx 18. Adjournments
Adjournments of the AGM shall take place only in accordance with section 81(1) of the Credit Union Act, 1997 (as amended)
7. ANNUAL REPORT & ACCOUNTS 2017
Report of the Chair As a voluntary, member-elected Chair of for you. On the other hand, you can call in Member First Credit Union, it is a pleasure to lodge money, make a payment or ask for to introduce this year’s Annual Report to my advice. You don’t get that everywhere these fellow Credit Union members. This annual days! But don’t worry, despite the innovations, report reflects the energy, professionalism, the technology and the enthusiasm, we’re commitment to community and belief in still very firmly rooted in the community. And our members that is present in the work of that’s something we will never forget. Member First Credit Union over the last year. The year under review was an extremely busy Member First Credit Union proudly supports year and one that brought significant change a variety of community activities – from local and progress. schools, education initiatives and literacy programmes to the arts, community groups In November 2016, the transfer of and sports clubs. This has always been a Donnycarney Beaumont Credit Union hallmark of our organisation and in 2016/17 was completed. I would like to take this we continued our community projects across opportunity to formally welcome all of the our enlarged branch network donating in members from Donnycarney Beaumont and excess of €185,000. You can read more about to acknowledge their efforts and openness in this in our Community Report. joining the Member First family. Your Board works extremely hard and Results for the financial year have been diligently on your behalf. Each year seems satisfactory with an overall surplus of income to bring another raft of regulations which over expenditure of €4.6 million. The Board, further challenges the Board. However, on in considering a potential dividend, is aware your behalf, I thank them sincerely for their that we don’t live in isolation from the national counsel, commitment and time. or international interest rate environment. Your Board, after significant consideration, in I want to pay particular praise to our Chief particular of the reality and outlook for interest Executive Officer, Fiona Cunningham for her rates and the need to manage the levels of leadership, energy and dedication to Member reserves, has decided to recommend to the First. Our Management and Staff continue Annual General Meeting a dividend rate of to work tirelessly to serve our members and .25% on members’ shares and an interest continually rise to new challenges each year. rebate of 5% on standard loans.
The pace of change in the financial services industry continues to accelerate and Member First is well equipped to meet I want to express these challenges. We remain fully compliant, my sincere thanks to competitive and innovative in line with our all our members for members changing needs to ensure we the confidence you deliver a convenient, affordable and efficient have shown in service. Member First. You’ll find that Member First is different. For Joan Barker, Chair instance, we embrace the technology that makes saving and lending easier, so you can transact from home or work if that’s best Joan Barker Chairperson 8. ANNUAL REPORT & ACCOUNTS 2017
Board of Directors
Joan Barker Chairperson Michael McKenna Vice Chair Bridget Johnston Secretary John Matthews
Jeff Kennedy Olive McMahon Catherine Bannon Pascal Delahunty
Gráinne Brennon Valerie Mulvaney Richard Murphy
Board Oversight Committee
Helen Walker (BOC) Paddy Carpenter (BOC) George Mongey (BOC) 9. ANNUAL REPORT & ACCOUNTS 2017
A Year Of Growth
€ € MI ION MI ION OPERATING LOAN BOOK SURPLUS
€ € MI ION MI ION ASSETS INVESTMENTS
UNIOR MEMBERS TOTA MEMBERS I NE MEMBERS
TRANSACTIONS 0.25 € MI ION BRANC ES MEMBERS SAVINGS DI IDEND RETURNS ACROSS AID NORT DUB IN
MI ION TRANSACTIONS IN 2017 INTEREST5 REBATE STANDARD INCREASE OANS IN LOANS ISSUED
COMPETITIONS COMMUNIT ISSUED IN LOCAL CAR DRAW ENTRIES COMMUNIT PRO ECTS PHONE CALLS LOCAL GROUPS SUPPORTED
10. ANNUAL REPORT & ACCOUNTS 2017
Report of Chief Executive Officer I am delighted to present the results of another very successful year for Member First Credit Union. Our focus this year has been to fully integrate all our new branches, to fully embed the Member First culture and apply our first-class operational standards consistently across the branch network.
Growth
Our recent mergers have cemented our growth and have been delivered on top of a very strong financial performance. We can also see strong underlying growth coming from Fiona Cunningham - CEO our original common bond areas in Coolock, Artane and Swords with membership, loans and savings all on the increase. Our loan book now stands at a staggering €82 million. The Income and Expenditure account shows a strong surplus, of €4.6 million. Interest By the end of 2017 your Credit Union will income on members’ loans has increased have assets of over €273 Million, six branch to €6.3 million up 29% from 2016. The locations across North Dublin, 73,500 increased loan portfolio will deliver a higher members, a growing loan book and a very level of loan income next year. Average strong balance sheet. return on investments has decreased slightly and this is a result of the lower interest rate Member First prides itself on our commitment environment and we expect this environment to our members and their communities to remain, which will continue to have an by supporting local schools, groups, impact in the medium term. organisations and charities by granting in excess of €185,000 to them. This year there has been a significant improvement in bad debt costs, the write off A review of our financial situation and figure was €686k a decrease of almost 40% operations further reinforces our success and a recovery of €774k. We cannot achieve during 2016/17 and points to a strong delivery these results without acknowledging the of services and financial results. vast majority of members who continue to honour their loan agreements. The key Financials highlights are as follows:
Despite an anticipated reduction in income • The Credit Union remains financially mainly attributed to a significant rate strong with €273 million in total assets decrease on investments, continuing robust • Net income of €8.9 million management of costs and a strong focus on • Expenditure of €4.3 million maximising income opportunities, Member • Surplus of €4.6 million First managed to deliver another set of strong • Investments are secure with a well- financial results. diversified portfolio 11. ANNUAL REPORT & ACCOUNTS 2017
Report of Chief Executive Officer continued • Bad debts recoveries €774k participation in the Death Benefit Scheme, • Bad debt provisions stand at €5.4 million I am happy to advise that we now have a • The Board is in a position to propose a Member Pay Scheme in operation. The dividend of 0.25% Member Death Benefit program will auto- • The Board is in a position to propose an renew on an annual basis at a cost to you interest rebate of 5% on standard loans of €52 per annum for €2,000 cover. Please note that it is your responsibility to ensure Member Excellence Centre that there are sufficient funds in your share account at renewal i.e. (the 1st January each At Member First, we are fully committed year.) to provide the best possible service to all our members across our wider common Lending bond area. The Member Excellence Centre continues to offer an alternative channel This year we issued over 18,336 loans to the of service delivery to members. We have value of €55m within our community, up 39% a team of highly trained and skilled staff on last year. It is reflective of an increased ready to answer your calls, deal with on- demand for services and a strong effort to line and other enquiries and process loan position ourselves within the community applications. All calls are answered promptly as the first choice for affordable financial by a professional and experienced staff services. Our loan rates continue to be very member. Please do not hesitate to call us if competitive when compared to other lenders there’s anything we can do to help. You can and we would encourage all members to contact the Member Excellence Centre on consider us first when borrowing. (01) 8513400 We offer our members a unique loan Information Technology and Data application process and all loans are Protection reviewed within 24 hours subject to terms and Member First Credit Union has successfully conditions. The quality of our lending remains retained our certification relating to the an important focus and loan decisions are International Information Security Standard based on assessment of a member’s ability to ISO 27001. This follows an extensive external repay. This enables us to be fair to all members audit conducted by Certification Europe, and facilitates good lending decisions. a body accredited by the Irish National Accreditation Board (INAB) the statutory Membership body for quality standards in Ireland. Certification to ISO 27001 enables Member Our team continues to welcome new First Credit Union to prove to its members members at a significant pace, 3,334 that we are comprehensively managing members joined us last year. There are now the security of the information held in our a total 73,500 members of our Credit Union possession. from communities all across North Dublin. I extend a warm welcome to all our new Death Benefit Insurance members who joined this year and initial feedback shows that our new members are After much communication with our delighted with the service on offer from the members and campaigns to encourage staff of Member First. In November 2016, 12. ANNUAL REPORT & ACCOUNTS 2017
the members of Donnycarney Beaumont generated a lot of talkability locally and we and District Credit Union joined Member thank all the members who took part and First and we extend a warm welcome to shared their stories and experiences. them also. Our marketing efforts, coupled with our mergers, are factors leading to the Acknowledgements increased membership. Member First continues to be a strong, Research stable, efficient, well-governed, well- managed and transparent Credit Union, We started the year by carrying out research meeting the everyday financial needs of its to get a better understanding of what our members, thereby retaining member trust members and non-members need from and confidence. I am very proud of the a financial service provider. We would commitment of our Management Team and like to thank all the people who took part Staff. I am deeply grateful for their continued in this research, which has given us an dedication and relentless hard work, invaluable insight into the wants, needs and assisting our members in achieving their desires of the members of our community financial goals. I also want to express my when it comes to their financial choices. deepest gratitude to our volunteer Board of This consisted of: Directors, Board Oversight Committee and Volunteers for their support and contribution • 5 Super Focus Groups to our continued success. • 60+ Participants • 200+Surveys I want to thank all of our members for their continued loyalty and unwavering support Putting our Members Centre Stage over the last few years at a time of significant change in the Credit Union. In 2016/17, we launched a new marketing campaign not only focused on our members, Fiona Cunningham - CEO but actually fronted by our members. That’s right – real people, real members! The strapline of the campaign – “Re-member your first” – was a twofold message. Firstly, we wanted to remind you that you, the member, come first and secondly, to invite you to reminisce on your memories about key-life milestones from your first car to your first day at college.
To help resonate with your own memories, we shared real life stories and testimonials of our members who took part in the campaign. Every business benefits from Take a look at our having a human face, and who better to fill new website this role than the people who actually use MFCU.ie our products and services. This approach 13. ANNUAL REPORT & ACCOUNTS 2017
Community Report Your Credit Union has donated over West Community Association, St. Brendan’s €400,000 to local projects across North Parish, Grange Woodbine Seniors Club and Dublin since the inception of Member Glasmore Park Residents Association. First Credit Union in 2014 School Saving Scheme Community Fund We continue our School Saving Scheme Member First Credit Union is a supporter program at primary and secondary level of community activities, promoting educating children on the importance of development across broad categories such money management. We have 36 local as education, literacy, sports and the arts. schools taking part with over 4,500 children In 2016/17 we continued this important saving every month. In 2016/17 we donated work in recognition of the crucial role that €36,000 to 36 local schools. our communities play in the success of the Credit Union. Defibrillator Programme
Local GAA Sponsorship We continue to support the provision of life-saving defibrillators in the community. Our local GAA clubs are at the heart of Some of those who received defibrillators the community and play an important role in 2016/17 are Priorswood Scouts, St. in its social and economic development. Monica’s GAA, Whitehall Colmcille, Raheny In recognising this, each year we make a Community First Responders and Swords significant investment to Fingallians GAA Community First Responders. Club, Parnells GAA Club, Clontarf GAA Club, Raheny GAA, Naomh Barróg GAA and Car Draw Whitehall Colmcille GAA Our members draw continues to be a Local Football Club Sponsorship popular event, this year we issued prizes totalling €618,000 with 354 lucky winners In addition to our long standing GAA roots across our branch network. we also support a number of local football clubs; Home Farm FC, Kilmore Celtic FC, Villa Celtic FC, Swords Celtic FC, Artane Beaumont FC and St. Brendan’s United FC
We also sponsor various community groups. The following are just some of the groups that we supported in 2016/17: Pieta House, St. Francis Hospice, Donnycarney Beaumont Local Care Centre, Clancarthy Residents Association, St. John Ambulance, Near FM, O’Connell Musical Society, Swords Bridge Club, Raheny Tidy Village, Bonnybrook Parish, D5 Horticultural Society, Raheny Darren O'Reilly Scouts, Artane School of Music, Donnycarney Chief Marketing Officer 14. ANNUAL REPORT & ACCOUNTS 2017
Community
OCA COMMUNIT EDUCATION BURSARIES ISSUED TO RO ECTS A ARDED TO STUDENTS
SCHOOL SA ING SCHEME €36,000 6 DONATED NEW SCHOOLS
TO OINED LOCAL36 SCHOOLS T ROUG OUR 4,600 SC OO SA ING CHILDREN SC EME TA ING PART
RADIO WEE L FINANCIAL AD ICE FINANCIAL AD ICE
BROADCAST TO COLUMNS SHOWS NORTH COUNT DELI ERED 100,000 DUBLIN TO O ER HOMES
RAHEN
NAOMH FINGALLIANS BARR G
WHITEHALL CLONTARF COLMCILLE
ST. MONICA S PARNELLS GAA PARTNERSHIPS
- MEMBER APPRECIATION DAYS -
INDI IDUAL OFFERING MEMBERS COMPETITIONS GI EAWA S FUN INSURANCE WITH ACROSSDA S BRANCH AD ICE 12 NETWOR FREECOFFEES GOODIES FM104 WITH CUsafe
15. ANNUAL REPORT & ACCOUNTS 2017
Social Media
TOTA TOTA REAC ENGAGEMENT million
Ireland s most followed Credit Union on Social Media @ Member First Credit Union @ mfirstcu INCREASE For your LARGEST CU TWITTER INCREASE LIKES FOLLOWING IN IRELAND FOLLOWERS next car loan,
@ mfirstcu @ mfirstcu pull in to SNAPCHAT INSTAGRAM INCREASE INCREASE FOLLOWERS FOLLOWERS Member First. Swing by Member First Credit Union and check out a real value-for-money car loan. You can apply even 14,992 before you start looking for your dream motor. And ONLINE USERS when you go car shopping, you’ll have all the SOCIAL MEDIA 200,000 FINANCIAL TIPS negotiating power of a cash customer. WEBSITE VISITS SNIPPET ADVICE, COMPETITIONS ENGAGEMENT • 24 hour approval * • No lump sum payment or minimum deposit required • You own the car outright from the very start
BLOGS MESSENGER Ask us a out our promotional car loan today LONG FORM INFORMATIVE FINANCIAL ADVICE, 100 RESPONSE RATE ENGAGEMENT 30,000 + AVE RESPONSE TIME < 15 MINS
James Kavanagh: William Murray: REAC 70,000 REAC 66,936
RESU TS INF UENCER RESU TS First Financial Institution in Ireland CAM AIGNS Increase in snapchat follo ing to use Snapchat Re launched oung & Free aunched Snapchat as a platform Increase in lending to and ac uired FIRST follo ers young mem ers The next generation credit union aunched oung & Free via Snapchat and sold out ithin eeks of campaign *Lending criteria, terms and conditions apply
16. 01 851 3400 Drop in mfcu.ie ANNUAL REPORT & ACCOUNTS 2017
Social Media
TOTA TOTA REAC ENGAGEMENT million
Ireland s most followed Credit Union on Social Media @ Member First Credit Union @ mfirstcu INCREASE For your LARGEST CU TWITTER INCREASE LIKES FOLLOWING IN IRELAND FOLLOWERS next car loan,
@ mfirstcu @ mfirstcu pull in to SNAPCHAT INSTAGRAM INCREASE INCREASE FOLLOWERS FOLLOWERS Member First. Swing by Member First Credit Union and check out a real value-for-money car loan. You can apply even 14,992 before you start looking for your dream motor. And ONLINE USERS when you go car shopping, you’ll have all the SOCIAL MEDIA 200,000 FINANCIAL TIPS negotiating power of a cash customer. WEBSITE VISITS SNIPPET ADVICE, COMPETITIONS ENGAGEMENT • 24 hour approval * • No lump sum payment or minimum deposit required • You own the car outright from the very start
BLOGS MESSENGER Ask us a out our promotional car loan today LONG FORM INFORMATIVE FINANCIAL ADVICE, 100 RESPONSE RATE ENGAGEMENT 30,000 + AVE RESPONSE TIME < 15 MINS
James Kavanagh: William Murray: REAC 70,000 REAC 66,936
RESU TS INF UENCER RESU TS First Financial Institution in Ireland CAM AIGNS Increase in snapchat follo ing to use Snapchat Re launched oung & Free aunched Snapchat as a platform Increase in lending to and ac uired FIRST follo ers young mem ers The next generation credit union aunched oung & Free via Snapchat and sold out ithin eeks of campaign *Lending criteria, terms and conditions apply
17. 01 851 3400 Drop in mfcu.ie ANNUAL REPORT & ACCOUNTS 2017
Are your details up to date?
Customer Due Diligence requirements under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 (as amended)
Please be advised that to ensure compliance with legislation Member First Credit Union are obliged to keep up to date records on our members. As a result we are currently in the process of updating our member records.
Therefore the next time you visit our office you may be asked for documentation including:
✔ Proof of Identity e.g passport, driving license, national identity card
✔ Proof of Address e.g. current bill, current bank statement, government issued documentation
Failure to provide us with the required documentation and information in a timely manner will lead to the suspension of your account until such time as our records are updated.
Your co-operation and assistance in this matter is greatly appreciated.
If you have any questions please call us on 01 851 3400
Raheny GAA Sponosrship Launch with School Savings Scheme Competition Dublin GAA Player Brian Fenton at St. Michaels House
18. ANNUAL REPORT & ACCOUNTS 2017
Directors Report and Financial Statements
➤ Directors Report 20
➤ Report of the Auditor 23
➤ Income and Expenditure 26
➤ Balance Sheet 27
➤ Statement of Reserves 28
➤ Cashflow Statement 30
➤ Notes to Financial Statements 31
19. ANNUAL REPORT & ACCOUNTS 2017
Directors Report for the year ended 30 September 2017
Review of Business and Future and Auditors in the Auditor’s Report Developments to the members, is made with a view to distinguishing for the members, The Directors are pleased to report the respective responsibilities of the a strong surplus for the year, with a Directors and of the Auditors in relation significant growth in loan volumes as to the 'financial statements'. the year progressed. We also note an The Credit Union Act 1997 (as amended) improvement in members' ability to requires the Directors to prepare financial maintain their loans within terms; all statements for each financial year which of which have contributed to a very give a true and fair view of the state of satisfactory result for the year. This has affairs of the Credit Union and of the allowed us to build our reserves in the income and expenditure of the Credit current year. Union for that period. In preparing those We expect that trading in the coming year financial statements, the Directors are will be solid and very much dependent required to : on the health of our local economy; we expect continued loan growth to boost • Select suitable accounting policies and our income; however; the income on our then apply them consistently; investments has decreased significantly in the current low interest environment. • Make judgments and estimates that are Despite the low investment income the reasonable and prudent; and Board expect total income to increase over the next couple of years. • Prepare the financial statements on We are happy that the finances of a going concern basis unless it is Member First Credit Union Limited are in inappropriate to presume that the very good shape, that our loans are well Credit Union will continue in business. provisioned, our investments prudently invested, that we are well capitalised with The Directors are responsible for keeping strong reserves and that we are well able proper accounting records which disclose to fund our future plans. with reasonable accuracy at any time the financial position of the Credit Union Authorisations and to enable them to ensure that the financial statements are prepared in Member First Credit Union Limited accordance with applicable Irish law and maintains the authorisation to carry out Generally Accepted Accounting Practice foreign exchange transactions and to in Ireland, including the standards issued arrange insurance polices on behalf of its by the Financial Reporting Council, members. and in particular FRS102 “The Financial Reporting Standard applicable in the UK Statement of Directors' Responsibilities and Republic of Ireland”. The Directors are responsible for safeguarding the The following statement, which should be assets of the Credit Union and hence read in conjunction with the statement for taking reasonable steps for the of respective responsibilities of Directors prevention and detection of fraud and 20. ANNUAL REPORT & ACCOUNTS 2017
other irregularities. against this risk by employing suitably Principal risks and uncertainties qualified individuals to underwrite and assess loan applications. Subsequently The principal risks and uncertainties facing loans are regularly reviewed for any factors the Credit Union are: that may indicate that the likelihood of repayment has changed. i) Credit risk The Directors have identified the risk of ii) Lack of demand for loans loan default as being the principal risk to The Credit Union offers a wide range the Credit Union. Credit risk is the risk that of competitive lending products to its a borrower will default on their contractual members. The products and service are obligations relating to repayments to the promoted by regular marketing activities Credit Union, resulting in financial loss. throughout the year. The need to increase demand for loans is balanced by the need ii) Liquidity risk to ensure that borrowers have the capacity Is the risk that the Credit Union will not have to repay the amount borrowed. sufficient cash resources to meet day to day running costs and repay members savings iii) Investment portfolio performance when demanded. The Board regularly reviews and approves the Credit Union’s Investment Policy in iii) Lack of demand for loans which it sets out the types of investments The provision of loans to members is a key within which the Credit Union can invest function of the Credit Union. The interest funds. A key factor for all investments is the received from loans is the main source of need to balance the secure return of capital revenue from which both operating costs with the interest yield. Funds are invested in are serviced and surpluses generated. compliance with the Credit Union’s Policy and regulatory guidance. iv) Investment portfolio performance Is the risk both through the potential to loss v) Liquidity risk of capital and/or insufficient rate of return. The liquidity level of the Credit Union is monitored on a regular basis to ensure funds v) Operational risk are maintained in short term deposits at all Is the risk of loss resulting from inadequate times so that it has sufficient cash to meet its or failed internal processes, people and obligations as they fall due. systems or from external events. v) Operational risk These risks are managed by the Board as The operational risk of the Credit Union follows: is managed through the recruitment and employment of suitably qualified staff to i) Credit risk ensure appropriate processes, procedures In order to manage this risk the Board and systems are implemented and applied. regularly reviews and approves the Credit Union’s Lending Policy. All loan applications This is further supported by a robust reporting are assessed with reference to the Lending structure and an active management of Policy. The Credit Union further protects operational risk events. 21. ANNUAL REPORT & ACCOUNTS 2017
Post balance sheet events
There were no events after the balance sheet date which impact upon the financial statements.
Auditors
In accordance with the Credit Union Act 1997 (as amended), the Auditors MKO Partners offer themselves for re-election.
On behalf of the Board
Joan______Barker Chairperson
Date: 24 October 2017
Statement of Board Oversight Committees Responsibilities for the year ended 30 September 2017
The Credit Union Act 1997 (as amended) requires the appointment of a Board Oversight Committee to assess whether the Board of Directors has operated in accordance with Part IV, Part IV (a) and any regulations made for the purposes of Part IV or Part IV (a) of the Credit Union Acts 1997 (as amended) and any other matter prescribed by the Central Bank in respect of which they are to have regard in relation to the Board.
On behalf of the Board Oversight Committee
Helen______Walker Chairperson
Date: 24 October 2017
22. ANNUAL REPORT & ACCOUNTS 2017
Report of the Auditor Independent Auditor’s Report to the Members financial statements in Ireland, including the Of Member First Credit Union Limited for the Ethical Standard issued by the Irish Auditing year ended 30 September 2017 and Accounting Supervisory Authority (“IAASA”), and we have fulfilled our other Opinion ethical responsibilities in accordance with We have audited the financial statements these requirements. of Member First Credit Union Limited (‘the Credit Union’) for the year ended 30 We believe that the audit evidence we have September 2017, which comprise the Income obtained is sufficient and appropriate to and Expenditure Account, the Statement of provide a basis for our opinion. Other Comprehensive Income, the Balance Sheet, the Statement of Changes in Reserves, Conclusions relating to going concern the Cash Flow Statement and the related We have nothing to report in respect of the notes to the financial statements, including following matters in relation to which ISAs the summary of significant accounting (Ireland) require us to report to you where: policies set out in note 2. The financial • the Directors’ use of the going concern reporting framework that has been applied basis of accounting in the preparation of in their preparation is Irish Law, including the the financial statements is not appropriate: Credit Union Act 1997 (as amended), and or FRS 102 The Financial Reporting Standard • the Directors have not disclosed in the applicable in the UK and Republic of Ireland. financial statements any identified material uncertainties that may cast significant In our opinion the financial statements: doubt about the Credit Union’s ability to • give a true and fair view of the state of the continue to adopt the going concern basis Credit Union’s affairs as at 30 September of accounting for a period of at least twelve 2017 and of its income and expenditure months from the date when the financial and cashflows for the year then ended; statements are authorised for issue. • have been properly prepared in accordance with FRS 102 The Financial Reporting Other information Standard applicable in the UK and Republic The Directors are responsible for the of Ireland; and other information. The other information • have been properly prepared in accordance comprises the information included in the with the requirements of the Credit Union Annual Report other than the financial Act 1997 (as amended). statements and our Auditor’s report thereon. Our opinion on the financial statements does Basis for opinion not cover the other information and, except We conducted our audit in accordance with to the extent otherwise explicitly stated in International Standards on Auditing (Ireland) our report, we do not express any form of (“ISAs (Ireland)”) and applicable law. Our assurance conclusion thereon. responsibilities under those standards are described in the Auditor's Responsibilities In connection with our audit of the financial for the Audit of the Financial Statements statements, our responsibility is to read the section of our report. We are independent of other information and, in doing so, consider the Credit Union in accordance with ethical whether the other information is materially requirements that are relevant to our audit of inconsistent with the financial statements 23. ANNUAL REPORT & ACCOUNTS 2017
or our knowledge obtained in the audit, or related to going concern and using the otherwise appears to be materially misstated. going concern basis of accounting unless If we identify such material inconsistencies management either intends to liquidate the or apparent material misstatements, we Credit Union or to cease operations, or has are required to determine whether there no realistic alternative but to do so. is a material misstatement in the financial statements or a material misstatement of Auditor’s responsibilities for the audit of the other information. If, based on the the financial statements work we have performed, we conclude that Our objectives are to obtain reasonable there is a material misstatement of this other assurance about whether the financial information, we are required to report that statements as a whole are free from material fact. misstatement, whether due to fraud or error, and to issue an Auditor's Report We have nothing to report in this regard. that includes our opinion. Reasonable assurance is a high level of assurance, but Opinions on other matters prescribed by is not a guarantee that an audit conducted the Credit Union Act 1997 (as amended) in accordance with ISAs (Ireland) will always Based solely on the work undertaken in the detect a material misstatement when it exists. course of the audit, we report that: Misstatements can arise from fraud or error • We have obtained all the information and and are considered material if, individually explanations which we consider necessary or in the aggregate, they could reasonably for the purposes of our audit. be expected to influence the economic • In our opinion proper accounting records decisions of users taken on the basis of these have been kept by the Credit Union, and financial statements. • The financial statements are in agreement with the accounting records. Further information regarding the scope of our responsibilities as Auditor Respective responsibilities As part of an audit in accordance with ISAs (Ireland), we exercise professional judgment Responsibilities of Directors for the and maintain professional scepticism financial statements throughout the audit. We also: As explained more fully in the Statement of • Identify and assess the risks of material Directors’ Responsibilities set out on page misstatement of the financial statements, 20, the Directors are responsible for the whether due to fraud or error, design and preparation of the financial statements and perform audit procedures responsive to for being satisfied that they give a true and those risks, and obtain audit evidence that is fair view, and for such internal control as sufficient and appropriate to provide a basis they determine is necessary to enable the for our opinion. The risk of not detecting a preparation of financial statements that are material misstatement resulting from fraud free from material misstatement, whether is higher than for one resulting from error, due to fraud or error. as fraud may involve collusion, forgery, In preparing the financial statements, the intentional omissions, misrepresentations, Directors are responsible for assessing the or the override of internal control. Credit Union’s ability to continue as a going • Obtain an understanding of internal control concern, disclosing, as applicable, matters relevant to the audit in order to design 24. ANNUAL REPORT & ACCOUNTS 2017
audit procedures that are appropriate in the undertaken so that we might state to the circumstances, but not for the purpose of Credit Union’s members those matters we expressing an opinion on the effectiveness are required to state to them in an Auditor’s of the Credit Union's internal control. report and for no other purpose. To the • Evaluate the appropriateness of accounting fullest extent permitted by law, we do not policies used and the reasonableness accept or assume responsibility to anyone of accounting estimates and related other than the Credit Union and the Credit disclosures made by the Directors. Union’s members, as a body, for our audit • Conclude on the appropriateness of the work, for this report, or for the opinions we director’s use of the going concern basis have formed. of accounting and, based on the audit evidence obtained, whether a material MKO Partners uncertainty exists related to events or Chartered Accountants, Statutory Audit Firm conditions that may cast significant doubt Dublin on the Credit Union’s ability to continue as going concerns. If we conclude that a material uncertainty exists, we are 24 October 2017 required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's report. However, future events or conditions may cause the Credit Union to cease to continue as going concerns. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
The purpose of our audit work and to whom we owe our responsibilities Our report is made solely to the Credit Union’s members, as a body, in accordance with section 120 of the Credit Union Act 1997 (as amended). Our audit work has been 25. ANNUAL REPORT & ACCOUNTS 2017
Income & Expenditure
Note 2017 € 2016 €
Income Interest on members' loans 6,317,426 4,912,912 Other interest and similar income 5 2,017,956 1,834,060 Interest payable on members' deposits 6 480 17,262 Net interest income 8,335,862 6,764,234 Other income 8 197,469 439,632 Changes in fair value of 'other' investments 13 394,900 - 0 Total income 8,928,231 7,203,866
Expenditure Employment costs 9 2,496,019 1,876,987 Other management expenses (Schedule 1) 4,019,831 3,134,435 Depreciation 268,790 244,311 Net impairment gains on loans to members 15 (2,216,791) (1,386,964) Changes in fair value of 'investment properties' 12 (245,833) - Total expenditure 4,322,016 3,868,769
Surplus for the financial year 4,606,215 3,335,097
Other comprehensive income - -
Total comprehensive income 4,606,215 3,335,097
The financial statements were approved, and authorised for issue, by the Board on 24 October 2017 and signed on its behalf by: J Joan Barker Helen Walker Chairperson Board Oversight Committee
Fiona Cunningham Date: 24 October 2017 Chief Executive Officer
26. ANNUAL REPORT & ACCOUNTS 2017
Balance Sheet as at 30 September 2017
Note 2017 € 2016 €
Assets
Cash and cash equivalents 10 64,859,758 40,782,136 Deposits and investments 13 126,295,864 112,912,775 Loans to members 14 82,370,993 59,343,898 Provision for Bad & Doubtful Debts 15 (5,495,189) (4,976,279) Prepayments and accrued income 16 1,350,158 1,667,152 Tangible fixed assets 11 3,427,582 2,622,627 Investment Property 12 880,000 395,000 Total Assets 273,689,166 212,747,309
LIABILITIES
Members' shares 17 (221,591,872) (168,100,278) Members' deposits 18 (13,227,225) (13,372,653) Creditors and accruals 19 (431,145) (937,210) Total Liabilities (235,250,242) (182,410,141)
Total Assets less Total Liabilities 38,438,924 30,337,168
Reserves
Regulatory reserve 27,378,856 21,274,731 Operational risk reserve 1,422,726 670,000 General reserve 8,918,257 8,391,066 Unrealised reserve 640,733 - Non-distributable investment income reserve 78,352 1,371 Total Reserves 38,438,924 30,337,168
The financial statements were approved, and authorised for issue, by the Board on 24 October 2017 and signed on its behalf by:
Joan Barker Helen Walker Chairperson Board Oversight Committee
Fiona Cunningham Date: 24 October 2017 Chief Executive Officer
27. ANNUAL REPORT & ACCOUNTS 2017
Statement of Changes in Reserves for year ending 30 September 2017
Other Reserves
Regulatory Operational Realised Unrealised Non Total Reserves Reserve Risk Reserve Reserves Reserves Distributable Investment Income Reserve
€ € € € € €
Opening balance at 1 October 2016 21,274,731 670,000 8,391,066 - 1,371 30,337,168
Total comprehensive income for the year - - 3,965,482 640,733 - 4,606,215
Dividends paid during the year (Note 7) - - (407,725) - - (407,725)
Loan interest rebate paid during the year (Note 7) - - (483,204) - - (483,204)
Transfer between reserves 1,403,067 752,726 (2,183,172) - 27,379 -
Transfer of engagements 4,701,058 - (364,190) - 49,602 4,386,470
Closing balance at 30 September 2017 27,378,856 1,422,726 8,918,257 640,733 78,352 38,438,924
(1) The regulatory reserve of the Credit Union as percentage of total assets as at 30 September 2017 was 10.0% (2016: 10.0%) which is in line with the Credit Union's regulatory reserve requirement of 10%. The Board of Member First Credit Union Limited has transferred €1,403,726 (2016: €901,878) of its current year surplus to its regulatory reserve in order to meet its regulatory reserve requirement.
(2) The operational risk reserve as at the 30 September 2017 was €1,422,726 (2016:€670,000) . In this regard, the Board approved an increase in the operational risk reserve of €752,726 from realised reserves, following the completion of an internal process to estimate the Credit Union's operational risk reserve requirement.
28. ANNUAL REPORT & ACCOUNTS 2017
Other Reserves
Regulatory Operational Realised Unrealised Non Total Reserves Reserve Risk Reserve Reserves Reserves Distributable Investment Income Reserve
€ € € € € €
Opening balance at 1 October 2016 21,274,731 670,000 8,391,066 - 1,371 30,337,168
Total comprehensive income for the year - - 3,965,482 640,733 - 4,606,215
Dividends paid during the year (Note 7) - - (407,725) - - (407,725)
Loan interest rebate paid during the year (Note 7) - - (483,204) - - (483,204)
Transfer between reserves 1,403,067 752,726 (2,183,172) - 27,379 -
Transfer of engagements 4,701,058 - (364,190) - 49,602 4,386,470
Closing balance at 30 September 2017 27,378,856 1,422,726 8,918,257 640,733 78,352 38,438,924
29. ANNUAL REPORT & ACCOUNTS 2017
Cashflow Statementfor year ending 30 September 2017
2017 € 2016 € Cash flows from operating activities Cash & Investments introduced by Raheny Credit Union 31,185,085 Limited and North William Street Parish Credit Union Limited Cash & Investments introduced by Donnycarney Beaumont & 34,335,547 District Credit Union Limited Loans repaid by members 41,125,691 28,418,732 Loans granted to members (54,966,126) (33,123,566) Loan interest received 6,317,426 4,912,912 Interest paid on members’ deposits 480 17,262 Investment income received 1,472,899 1,834,060 Investment gains received 545,057 Other income received 197,469 39,632 Bad debts recovered & impaired cash flows 1,551,046 915,323 Dividends & Interest Rebate paid (890,929) (878,179) Operating expenses including employment costs (6,330,760) (4,885,301) Movement in other assets and liabilities (275,816) 814,955 Net cash flows from operating activities 23,081,984 29,250,915
Cash flows from investing activities (260,578) (106,071) Purchase of property, plant and equipment - - Disposal of Investment property (13,361,887) (30,635,390)
Net cash flows from other investing activities (13,622,465) (30,741,461) Net cash flows from investing activities
Cash flow from financing activities Members’ shares received 95,584,777 70,814,838 Members’ shares withdrawn (80,966,674) (59,024,994) Net cash flows from financing activities 14,618,103 11,789,844
Net increase / (decrease) in cash and cash equivalents 24,077,622 10,299,298
Cash and cash equivalents at beginning of year 40,782,136 30,482,838 Cash and cash equivalents at end of year 64,859,758 40,782,136
30. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements as at 30 September 2017 1. Legal and regulatory framework Investment income Member First Credit Union Limited is Investment income is recognised on an established under the Credit Union Act 1997 accruals basis using the effective interest rate (as amended). The Credit Union is registered method. with the Registry of Credit Unions and is regulated by the Central Bank of Ireland. Other income Other income such as commissions receivable 2. Significant Accounting policies on insurance products and foreign exchange 2.1. Statement of compliance and basis of services arises in connection to specific preparation transactions. Income is recognised on an The financial statements have been prepared accruals basis. in the accordance with the historical cost convention. The financial reporting framework 2.5. Dividends to members and interest on that has been applied in their preparation is members’ deposits FRS 102 “The Financial Reporting Standard Interest on members’ deposits applicable in the UK and Republic of Ireland” Interest on members’ deposits is recognised (“FRS 102”) as issued by the Financial on an accruals basis using the effective interest Reporting Council and promulgated by the method. Institute of Chartered Accountants in Ireland. Dividends on shares and loan interest rebates 2.2. Currency Dividends and loan interest rebates are made The financial statements are prepared in from current year’s surplus or reserves set Euro (€), which is the functional currency aside for that purpose. The Board’s proposed of the Credit Union. Monetary amounts in distribution to members each year is based on these financial statements are rounded to the the Dividend and Loan Interest Rebate Policy nearest Euro. of the Credit Union.
2.3. Going concern The Credit Union recognises dividends and The financial statements are prepared on the loan interest rebates when approved at the going concern basis. The Directors of Member Annual General Meeting. First Credit Union Limited believe this is appropriate as the Credit Union: The rate of dividend and loan interest rebate recommended by the Board will reflect inter • is generating annual surpluses; alia: • maintains an appropriate level of liquidity; and • the Board's responsibility to ensure that • has reserves that are currently above the members' savings are safeguarded; minimum requirements of the Central Bank • the Credit Union's regulatory reserve of Ireland. requirements; • the macro economic environment and the 2.4. Income Recognition returns available for similar savings products Interest on members’ loans in the Irish financial services sector; Interest on loans to members is recognised on • the Board's desire to maintain dividends at an accruals basis using the effective interest a sustainable level on an ongoing basis; and method. 31. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued • members' legitimate dividend and loan fixed or determinable payments. Loans interest rebate expectations. are recognised when cash is advanced to members and measured at amortised cost 2.6. Taxation using the effective interest method. The Credit Union is not subject to income tax or corporation tax on its activities. ii) Deposits and investments held at amortised cost 2.7. Cash and cash equivalents Investments held at amortised cost are Cash and cash equivalents comprise operating measured at amortised cost using the cash on hand and cash deposited with banks effective interest method less impairment. with original maturity of less than or equal to This means that the investment is measured three months. at the amount paid for the investment, minus any repayments of the principal; plus or 2.8. Financial instruments minus the cumulative amortisation using the The Credit Union has elected to apply in full effective interest method of any difference the provisions of Section 11 ‘Basic Financial between the amount at initial recognition and Instruments’ and Section 12 ‘Other Financial the maturity amount; minus, in the case of a Instruments Issues’ of FRS 102 to its financial financial asset, any reduction for impairment instruments. Financial instruments are or un-collectability. This effectively spreads out recognised when the Credit Union becomes the return on such investments over time and a party to the contractual provisions of the takes account immediately of any impairment instrument. in the value of the investment.
Financial assets and liabilities are offset, with iii) Prepayments the net amounts presented in the financial Other receivables such as prepayments are statements, when, and only when, there initially measured at transaction price including is a legally enforceable right to set off the transaction costs and are subsequently recognised amounts and there is an intention measured at amortised cost using the effective to settle on a net basis or to realise the asset interest method. and settle the liability simultaneously. 2.10. Other financial assets Financial assets and liabilities are classified i) Investments held at fair value according to the substance of the contractual The Credit Union initially recognises its arrangements entered into. complex investments at fair value. At the end of each reporting period, the Credit Union 2.9. Basic financial assets measures these investments at fair value and Basic financial assets are initially measured recognise changes in fair value in profit or loss. at the transaction price including transaction The Credit Union uses the following hierarchy costs, and are subsequently carried at to estimate the fair value of these investments: amortised cost using the effective interest method. Basic financial assets include the Level 1 fair values. The best evidence of fair following: value is a quoted price for an identical asset in an active market. Quoted in an active i) Loans to members market in this context means quoted prices Loans to members are financial assets with are readily and regularly available and those 32. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued prices represent actual and regularly occurring market transactions on an arm's length basis. If there is objective evidence of impairment, The quoted price is usually the current bid loss is recognised in the income and price. expenditure account immediately. Objective evidence that a financial asset or group of Level 2 fair values. When quoted prices are assets is impaired includes observable data unavailable, the price of a recent transaction about the following loss events: for an identical asset provides evidence of fair value as long as there has not been a significant • significant financial difficulty of the member change in economic circumstances or a or investment issuer; significant lapse of time since the transaction • a breach of contract, such as a default took place. If the entity can demonstrate or delinquency in interest or principal that the last transaction price is not a good payments; estimate of fair value (e.g. because it reflects • the Credit Union, for economic or legal the amount that an entity would receive or pay reasons relating to the member's or in a forced transaction, involuntary liquidation investment issuer's financial difficulty, or distress sale), that price is adjusted. granting a concession that the Credit Union would not otherwise consider; Level 3 fair values. If the market for the asset • it has become a probable that the member is not active and recent transactions of an or investment issuer will enter bankruptcy or identical asset on their own are not a good other financial reorganisation; and estimate of fair value, an entity estimates the • observable data indicating that there fair value by using a valuation technique. The has been a measureable decrease in the objective of using a valuation technique is to estimate future cash flows from a group of estimate what the transaction price would loans. have been on the measurement date in an arm's length exchange motivated by normal In the case of impairment of loans to members, business considerations. the loans are assessed collectively in groups that share similar credit risk characteristics 2.11. Impairment of financial assets except for individually significant loans which Financial assets, other than those held at fair are assessed on a loan by loan basis for value, are assessed for objective evidence of impairment. impairment at each reporting end date. Investments are assessed for impairment Financial assets are impaired where there individually. If there is a decrease in the is objective evidence that, as a result of one impairment loss arising from an event occurring or more events that occurred after the initial after the impairment was recognised, the recognition of the financial asset, the estimated impairment is reversed. The reversal is such future cash flows have been affected. If an that the current carrying amount does not asset is impaired, the impairment loss is the exceed what the carrying amount would have difference between the carrying amount and been, had the impairment not previously the present value of the expected cash flows been recognised. The impairment reversal is discounted at the asset’s original effective recognised in the Income and Expenditure interest rate. Losses expected from future account. events are not recognised. 33. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued liabilities if payment is due within one year or 2.12. De-recognition of financial assets less. If not, they are presented as non-current Financial assets are derecognised when and liabilities. Other payables are recognised only when a) the contractual rights to the initially at transaction price and subsequently cash flows from the financial asset expire measured at amortised cost using the effective or are settled, b) the Credit Union transfers interest method. to another party substantially all of the risks and rewards of ownership of the financial 2.14. De-recognition of financial liabilities asset, or c) the Credit Union, despite having Financial liabilities are derecognised when the retained some significant risks and rewards of obligations of the Credit Union specified in the ownership, has transferred control of the asset contract are discharged, cancelled or expire. to another party and the other party has the practical ability to sell the asset in its entirety to 2.15. Tangible fixed assets and depreciation an unrelated third party and is able to exercise Tangible fixed assets comprises items of that ability unilaterally and without needing to property, plant and equipment, which are impose additional restrictions on the transfer. stated at cost, less accumulated depreciation and any accumulated impairment losses. In the case of loans to members, loans are Cost includes expenditure that is directly derecognised, when the right to receive cash attributable to the acquisition of the asset. flows from the loans have expired, usually when all amounts outstanding have been Depreciation is provided to write off the repaid by the member. Member First Credit cost of each item of property, plant and Union Limited does not transfer loans to third equipment, less its estimated residual value parties. over its estimated useful life. The categories of property, plant and equipment are 2.13. Basic financial liabilities depreciated as follows: Basic financial liabilities are initially recognised at the transaction price, including transaction Freehold land and buildings 2% per annum costs, unless the arrangement constitutes Lease Amortisation 4% per annum a financing transaction, where the debt Leasehold Premises 10% per annum instrument is measured at the present value Computer Equipment 25% per annum of the future payments discounted at a Fixtures and fittings 10% - 25% per annum market rate of interest. Financial liabilities are Motor Vehicles 20% per annum subsequently carried at amortised cost using the effective interest method. The gain or loss arising on the disposal of an i) Members' shares, deposits and money asset is determined as the difference between management accounts the sale proceeds and the carrying value of Members’ shares, deposits and money the asset, and is recognised in the Income and management accounts are redeemable and Expenditure account. therefore are classified as financial liabilities. They are initially recognised at the amount of 2.17. Impairment of tangible fixed assets cash deposited and subsequently measured At each reporting end date, the Credit Union at amortised cost. reviews the carrying value of its tangible fixed ii) Creditors assets to determine whether there is any Other payables are classified as current indication that those assets have suffered 34. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued an impairment loss. If any such indication exists, the recoverable amount of the asset 2.18. Leases is estimated in order to determine the extent Leases entered into by the Credit Union as of the impairment loss (if any). Where it is not a lessee, are primarily operating leases. The possible to estimate the recoverable amount total fixed payments made under operating of an individual asset, the Credit Union leases are charged to the income statement estimates the recoverable amount of the cash- on a straight-line basis over the period of the generating unit to which the asset belongs. lease.
Recoverable amount is the higher of the fair 2.19. Investment Properties value of the asset less costs to sell and the The Credit Union initially measures investment asset's value in use ("VIU"). VIU is the present properties at cost comprising the purchase value of the future cash flows expected to be price and any directly attributable expenditure. derived from the asset. In assessing VIU, the Investment properties whose fair value can be estimated future cash flows to be derived measured reliably are measured at fair value from continuing use of the asset and from at year end with changes recognised in profit its ultimate disposal are discounted to their and loss. present value using a pre-tax discount rate that reflects current market assessments of the 2.20 Employee benefits time value of money and the risks specific to Pension Scheme the asset for which the estimates of future cash The Credit Union operates a defined flows have not been adjusted. contribution pension scheme for staff. There are no liabilities for pension benefits under the If the recoverable amount of an asset is defined contribution pension scheme, other estimated to be less than its carrying amount, than contributions payable as a proportion of the carrying amount of the asset is reduced to employees’ salaries in respect of each year. its recoverable amount. An impairment loss is recognised immediately in the Income and Other Employee Benefits Expenditure account. The costs of short-term employee benefits, including holiday pay, are recognised as a Recognised impairment losses are reversed if, liability and as an expense (unless those costs and only if, the reasons for the impairment loss are required to be recognised as part of the have ceased to apply. Where an impairment cost of fixed assets) over the period they are loss subsequently reverses, the carrying earned. amount of the asset is increased to the revised estimate of its recoverable amount, but so Termination benefits are recognised that the increased carrying amount does not immediately as an expense when the Credit exceed the carrying amount that would have Union is demonstrably committed to terminate been determined had no impairment loss the employment of an employee or to provide been recognised for the asset in prior years. termination benefits. A reversal of an impairment loss is recognised immediately in the Income and Expenditure 2.21. Reserves account. i) Regulatory reserve The Credit Union is required to maintain and establish a minimum regulatory reserve of at 35. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued least 10% of the assets of the Credit Union former members of the transferor Credit in accordance with Credit Union Act 1997 Unions represents the consideration for the (Regulatory Requirements) Regulations 2016. assets transferred.
ii) Operational risk reserve 3. Use of estimates and judgements In accordance with section 45 of the Credit The preparation of financial statements Union Act 1997 (as amended) the Credit Union requires the use of certain accounting established an operational risk reserve which estimates. It also requires the Directors to is separate, distinct and in addition to the exercise judgement in applying its accounting reserves the Credit Union is required to hold policies. The areas requiring a higher degree in its Regulatory reserve. The amount held in of judgement, or complexity, and areas where the operational risk reserve is the predicted assumptions or estimates are most significant impact of operational risk events that may to the financial statements are disclosed have a material impact on the Credit Union’s below: business. i) Impairment losses on loans to members iii) General reserves The Credit Union’s Accounting Policy for General reserves are the accumulated realised impairment of financial assets is set out in surpluses to date. Note 2.11. The estimation of loan losses is inherently uncertain and depends upon many iv) Non-distributable investment income factors, including loan loss trends, credit reserve risk characteristics in loan classes, local and international economic climates, conditions Investment income that has been recognised in various sectors of the economy to which in the financial statements but will not be the Credit Union is exposed, and, other received within 12 months of the Balance Sheet external factors such as legal and regulatory date is classified as “non-distributable” and is requirements. not distributable as a dividend in accordance with Section 31 of the Credit Union Act 1997 Credit risk and loss is identified, assessed (Regulatory Requirements) Regulations 2016. and measured through the application of A reclassification between non-distributable the Credit Union's Accounting Policy. The and distributable is made as investments estimated methodology used to apply this come to within 12 months of maturity date. policy incorporates provisions calculated based upon: 2.22 Transfers of engagements Transfers of engagement are accounted for a) Grouped assessment – Transition rate by using the purchase method of accounting methodology in accordance with Section 19 ‘Business The transition rate methodology determines, Combinations and Goodwill’ of FRS 102. This for a defined period, the pattern or trend of involves recognising assets and liabilities of deterioration (or “transition) or improvement any transferor Credit Union at fair value plus of loans for a given arrears profile to a period any costs directly attributable to the business at which loss on the loan (100% provision) is combination. The value of member interests deemed to have occurred (arrears of 150 days transferred by Member First Credit Union or more). Limited (the Transferee Credit Union) to the 36. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued This observable historical deterioration pattern specific provision, the Credit Union writes off is used to determine transition rates and that amount of the loan deemed irrecoverable thereafter Probabilities of Default rates (“PD”) against the specific provision held against the which are applied to the net loan balance loan. of loans (i.e. gross loans net of attached savings), at a point in time, to determine the ii) Determination of depreciation, useful appropriate provision for bad and doubtful economic life and residual value of tangible debts at that time. fixed assets The annual depreciation charge depends b) Individually significant loans primarily on the estimated useful economic Having calculated a loan provision using the life of each type of asset and, in certain transition rate assessment, an additional circumstances, estimates of residual values. The assessment is undertaken upon loans Directors review the useful lives on an annual considered individually significant and loans basis and change them if necessary to reflect deemed unsuitable for the transition rate current conditions. In determining these useful assessment. Individually significant loans are lives management consider technological assessed for objective evidence of impairment. change, patterns of consumption, physical Where objective evidence of impairment is condition and expected economic utilisation identified, a DCF is performed to determine a of the assets. Changes in the useful lives can revised net present value for these loans. have a significant impact on the depreciation charge for the financial year. c) Qualitative review of the Credit Union's governance and control framework relating to credit underwriting 4. Transfer of engagements A qualitative review is undertaken to assess A Transfer of Engagement ("TOE") was the risk the loan contract issuance may be undertaken during the year where the assets, distorting delinquency in the arrears profile liabilities and operations of Donnycarney of loans (e.g. Top-up loans). Where a risk Beaumont & District Credit Union Limited is identified, the output of the grouped was transferred to Member First Credit Union assessment is reviewed and amended Limited. This transfer of engagement was accordingly. completed on 1 November 2016. The assets and liabilities transferred under the transfer Loan loss provisioning is monitored by the were accounted for at fair value. Credit Union, and the Credit Union assesses and approves its provisions and provision No consideration was payable in relation to adequacy on a quarterly basis. If a loan is the Transfer of Engagement. On the date of impaired, the impairment loss is the difference the transfer, the members of Donnycarney between the carrying amount of the loan and Beaumont & District Credit Union Limited the present value of the expected cash flows became members of Member First Credit discounted at the asset’s original effective Union Limited and thereby became entitled interest rate taking account of pledged shares to member interests associated with such and other security as appropriate. After a membership. In applying the purchase period of time, when it is concluded that method of accounting for the business there is no real prospect of recovery of loans/ combination, members’ interests transferred part of loans which have been subjected to a by Member First Credit Union Limited 37. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued represents the consideration transferred for the net assets of Donnycarney Beaumont & District Credit Union Limited. This consideration has been estimated as the equivalent fair value of the members’ interests in Donnycarney Beaumont & District Credit Union Limited (the aggregate of the fair value of total assets and liabilities) at the date of transfer, and is reflected as an adjustment in reserves in the Statement of Changes in Reserves.
Set out opposite is a summary of the financial performance and statement of affairs of Donnycarney Beaumont & District Credit Union Limited disclosed in accordance with Section 19 ‘Business Combinations and Goodwill’ of FRS 102.
38. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 4. Operating Surplus of Donnycarney Beaumont Credit Union Limited
1 October 1 November 2017 2016 to 31 2016 to 30 October 2016 September (pre TOE) 2017 Member First branch (post TOE)
€ € € Total income 129,337 - 129,337 Operating Surplus/ (Loss) before fair value adjustment (197,952) 165,383 (32,569) Write down to Fair value on Premises - - - Operating Surplus/ (Loss) after fair value adjustment (197,952) 165,383 (32,569)
Balance sheet of Donnycarney Beaumont Credit Union Adjustment Transfer Value Limited as at 31 October 2016 Pre -Transfer to Fair Value ASSETS € € € Cash and cash equivalents 3,096,645 - 3,096,645 Deposits and investments 31,238,908 - 31,238,908 Loans to members 9,843,124 - 9,843,124 Less Provision for Bad Debts (1,871,076) - (1,871,076) Prepayments and accrued income 147,955 - 147,955 Investment Property 239,167 - 239,167 Tangible fixed assets 813,167 - 813,167
Total Assets 43,507,890 - 43,507,890
LIABILITIES
Members shares (38,793,006) - (38,793,006) Creditors and accruals (320,024) - (320,024)
Total Liabilities (39,113,030) - (39,113,030)
Total Assets less Total Liabilities 4,394,860 - 4,394,860
Reserves
Statutory Reserve 4,701,058 - 4,701,058 Revenue Reserve (452,408) - (452,408) Investment Income reserve 49,602 - 49,602 General reserve 96,608 - 96,608
Total Reserves 4,394,860 - 4,394,860
39. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 5. Other interest and similar income 2017 2016 € € Investment income and gains received by 30 September 1,164,781 911,073 Investment income and gains receivable within 12 months of 30 853,175 922,987 September Total interest and similar income 2,017,956 1,834,060
6. Interest payable on members' deposits The interest expense for the Credit Union comprises of interest payable on deposits, and was as follows for the current and prior year: 2017 2016 € €
Interest payable for the year 480 17,262
Interest rate: Members’ deposits 0% 0%
40. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 7. Dividends and loan interest rebates The dividend and any loan interest rebate are formally proposed by the Directors after the year end and are confirmed at an AGM of the members. As a result the proposed dividend for the current year does not represent a liability at the Balance Sheet date and the dividend included in the Statement of Reserves in the current year relates to dividends paid to members in relation to the prior year. 2017 2016 € € The dividends and loan interest rebate for the current and prior year periods were as follows:
Dividend paid during the year 407,725 878,179
Dividend rate: Members’ shares (gross) 0.25% 0.75%
Proposed Dividends 554,961 363,285
Dividend rate: Members’ shares (gross) 0.25% 0.25%
Interest Rate Rebate paid during the year
Interest Rebate 483,204 -
Interest Rebate Rate 10% 0%
Proposed Interest Rate Rebate The Directors recommend the following loan interest rebates 355,515 528,010
Interest Rebate Rate 5% 10%
41. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 8. Other Income 2017 2016 € € Insurance Commission 16,053 14,632 Foreign Exchange Income 27,701 17,842 New Member Fees 1,970 1,310 Bill Pay and Coin Charges 2,300 - CCC Legal Fees Recovered 7,302 8,334 Rental Income 18,750 (2,486) ReBo Funding 123,393 400,000 Total Other income 197,469 439,632
9. Employees and employment costs
9a. Number of employees 2017 2016 No No The average monthly number of employees during the year was:
Management 15 9 Other staff 44 42 Total 59 51
9b. Employment costs 2017 2016 € € Wages and salaries 2,169,700 1,628,206 Social security costs 226,312 166,035 Contributions to defined contribution pension scheme 100,007 82,746 Total employment costs 2,496,019 1,876,987
9c. Key management personnel The remuneration of key management personnel was as follows: 2017 2016 € € Short term employee benefits 929,267 655,015 Contributions to defined contribution pension scheme 73,298 60,617 Termination payments - 20,000 Total key management personnel compensation 1,002,565 735,632 Short-term employee benefits include wages, salaries, social security contributions and paid annual leave.
42. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 10. Cash and cash equivalents 2017 2016 € € Cash balances 5,516,778 9,526,046 Short term deposits with banks 59,342,980 31,256,090 Total cash and cash equivalents 64,859,758 40,782,136
Short term deposits with banks are deposits with original maturity of less than or equal to three months. All other deposits with banks are included under deposits and investments in the Balance Sheet and disclosed in Note 13.
11. Tangible fixed assets Tangible fixed assets comprise the following property, plant and equipment: Freehold Leasehold Office Motor Computer Premises Premises Equipment Vehicles Equipment Total € € € € € €
Cost At 1 October 2016 9,149,073 949,269 974,123 14,000 1,441,312 12,527,777 Additions 103,721 - 48,512 - 108,345 260,578 Revaluations ------Disposals ------Transfers of Engagement 813,167 - - - - 813,167 At 30 September 2017 10,065,961 949,269 1,022,635 14,000 1,549,657 13,601,522
Depreciation At 1 October 2016 6,994,614 763,154 869,001 4,667 1,273,714 9,905,150 Charge for year 101,898 62,745 39,330 2,800 62,017 268,790 Impairment losses ------Adjustments on revaluations ------Disposals ------At 30 September 2017 7,096,512 825,899 908,331 7,467 1,335,731 10,173,940
Net book Value At 30 September 2017 2,969,449 123,370 114,304 6,533 213,926 3,427,582
At 30th September 2016 2,154,459 186,115 105,122 9,333 167,598 2,622,627
Leased assets included above: Net book Value At 30 September 2017 - 123,370 - - - -
At 30th September 2016 - 186,115 - - - - Continued overleaf
43. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued The Directors reviewed the carrying value of the Credit Union's principal tangible fixed assets, its premises, at the financial year-end to determine whether there is any indication that it has suffered an impairment loss. As set out in the Credit Union's Accounting Policy, if any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). FRS 102 Section 27 defines "Recoverable Amount" as the higher of fair value less cost to sell and VIU. In the case of premises, fair value less cost to sell would normally be the amount obtainable from the sale of the premises in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.
The Directors commissioned freehold valuations for the buildings held in Artane and Swords dated 18 September 2017 from Flynn & Associates (MIAVI) estate agents. The Directors also commissioned freehold valuations for the buildings held in Raheny and North William Street. These valuations indicate that there is no evidence of permanent impairment of the properties required at the end of the year. Subsequently as part of the transfer of engagement process valuations were commissioned by the Board of Directors on the buildings held in Donnycarney Beaumont & District Credit Union. These valuations were dated 26 May 2016. These valuations indicate that there is no evidence of permanent impairment of the properties required at year end. The Directors have placed the building at 101/102 Malahide Road on the open market. It is expected that the sale of the property will take place within the next 6 months. 12. Investment properties
Investment Properties comprised of three premises acquired by Member First Credit Union Limited as part of the transfers of engagments with Raheny & District Credit Union Limited and Donnycarney Beaumont & District Credit Union Limited. These properties are not used in the ordinary course of the Credit Unions buisness and are currently vacant.
Reconciliation of the Carrying Amount € At 1 October 2016 at fair value 395,000 Acquisitions - through Transfer of Engagement with Donnycarney & District Beaumont Credit 239,167 Union Change in Fair Value 245,833 Disposal - At 30 September 2017 at fair value 880,000
The fair value of the investment properties located in Raheny (Old Credit Union Premises and Church) is based upon a valuation by independent valuers from Flynn & Associates (MIAVI) estate agents dated 15 June 2017. The fair value of the investment property located in Donnycarney (113 Malahide Road) is based upon the ‘sale agreed’ price for this property. In line with FRS 102 Section 16.7, the Directors have reflected the investment properties held by the Credit Union at fair value. This has resulted in an increase in fair value of €245,833 being recognised in the income and expenditure account. During the year, the Directors placed the building at 113 Malahide Road on the open market.
Measurement of Fair Value The fair value of the investment properties was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the properties being valued. The independent valuers provided the fair value of the Credit Union's investment properties in June 2017. It is the intention of the Board of Directors to obtain annual valuations on these properties.
Valuation Technique The comparison method of valuation has been used in assessing the value of the properties. There were no direct comparisions in the village area of development type opportunities. Alternative unencumbered properties recently sold in similar type areas are referenced by the valuers.
44. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 13. Deposits and investments Deposits and investments at the current and prior Balance Sheet date have been classified as either basic or other financial instruments and are measured at amortised cost or fair value as appropriate and comprised of the following:
Basic Financial Instruments
2017 2016 € € Accounts in Authorised Credit Institutions (Irish and Non-Irish based) 70,737,554 56,900,000 Bank Bonds 29,513,067 16,596,861 Collective Investment Schemes 244,020 8,573,627 Central Bank minimum deposits 2,105,896 1,842,287 Total investments at amortised cost 102,600,537 83,912,775
Other Financial Instruments 2017 2016 € € Other - Structered bonds 23,695,327 29,000,000 Total investments at fair value (Level 3) 23,695,327 29,000,000
Total Investments (Basic & Other) 126,295,864 112,912,775
Other Financial Instruments - Fair Value Fair Value 2017 2016 Heirarchy € € Cost 23,300,427 29,000,000 Capital Guaranteed 23,300,427 29,289,500 Fair Value Level 3 23,695,327 -
Estimation of fair values The principal methods and assumptions used in estimating the fair values of 'other investments' are explained below. Level 3 The level 3 fair value for investment products classified as 'other investments' is based on valuations received from Irish Credit Institutions using valuation techniques, for example discounted cashflow models. As the values provided by the counterparties exceeds the carrying value, the Directors have recognised an unrealised gain of €394,900 in the financial statements of Member First Credit Union Limited. The changes in fair value reflected above are attributable solely to changes in market conditions.
45. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 13. Deposits and investments continued
Set out below is summary of the Credit Union's investment portfolio, analysed by the credit rating of deposit/ investment counterparty: Credit rating of deposit/investment counterparty: Basic Financial Instruments 2017 2016 € € A 26,820,533 2,300,000 Baa 57,179,840 26,596,861 Ba 18,600,164 44,600,000 B - 10,415,914 102,600,537 83,912,775
Other Financial Instruments 2017 2016 € € A 8,500,000 8,500,000 Baa 15,195,327 20,500,000 23,695,327 29,000,000
14. Loans to members 2017 2016
Mortgage Unsecured Mortgage Unsecured loans Loans Total loans Loans Total € € € € € €
As at 1 October 269,009 59,074,889 59,343,898 - 49,064,965 49,064,965 Transfer from TOE - 9,843,124 9,843,124 - 6,050,883 6,050,883 Advanced during the year 2,735,634 52,260,449 54,996,083 270,000 32,853,566 33,123,566 Repaid during the year (128,059) (40,997,632) (41,125,691) (991) (28,417,740) (28,417,740) Loans written off - (686,421) (686,421) - (476,784) (476,784)
Gross loans to members 2,876,584 79,494,409 82,370,993 269,009 59,074,889 59,343,898
Loan provision Individually significant loans (14,891) (52) (14,943) - (113,766) (113,766) Grouped assessed loans - (5,480,246) (5,480,246) - (4,862,513) (4,862,513) Loan provision (14,891) (5,480,298) (5,495,189) - (4,976,279) (4,976,279)
As at 30 September 2,861,693 74,014,111 76,875,804 269,009 54,098,610 54,367,619
46. ANNUAL REPORT & ACCOUNTS 2017
Member First Credit Union Limited offer mortgages to its members. All mortgages issued by Member First Credit Union Limited are secured by a first legal charge as outlined in the terms and conditions of the mortgage product. There are maximum amounts set out by the regulations in terms of the maximum amount a member can borrow from the Credit Union. €350,000 (net) is the maximum mortgage loan that a member can borrow from the Credit Union as set out in the Mortgage Policy.
The carrying amount of the loans to members represents Member First Credit Union Limited's maximum exposure to credit risk. The following table provides information on the credit quality of loans. Where loans are not impaired it is expected that the amounts repayable will be received in full.
2017 2017 2016 2016 Credit quality of loans: Proportion Proportion Amount of loan Amount of loan book book Non-impaired loans € % € % Neither past due nor impaired Up to 4 weeks past due 58,009,149 70% 48,757,215 82% Between 5 and 8 weeks past due 18,074,730 22% 6,265,155 11% Between 9 and 12 weeks past due 2,368,695 3% 1,109,158 2% 854,785 1% 619,757 1%
Impaired loans Between 13 and 16 weeks past due 519,423 1% 433,014 1% Between 17 and 20 weeks past due 453,776 1% 280,591 0% 20 or more weeks past due 2,090,435 3% 1,879,008 3% Total gross loans 82,370,993 100% 59,343,898 100%
Less: Loan provisions
Individually significant loans (14,943) (113,766) Grouped assessed loans (5,480,246) (4,862,513) Total provisions (5,495,189) (4,976,279)
Total carrying value 76,875,804 54,367,619 Factors that are considered in determining whether loans are impaired are discussed in Note 3, dealing with esti- mates. Loans which are neither past due nor impaired are reviewed on a quarterly basis. The Credit Union has not identified any material matters which impact upon the credit quality of these assets.
Description of collateral held as security 2017 2016 Mortgage Unsecured Mortgage Unsecured loans Loans Total loans Loans Total € € € € € €
Total gross loans 2,876,584 79,494,409 82,370,993 269,009 59,074,889 59,343,898 Attached savings 102,842 39,477,210 39,580,052 - 31,907,222 31,907,222 Estimated value of security 2,708,222 - 2,708,222 269,009 - 269,009 65,520 40,017,199 40,082,719 - 27,167,667 27,167,667
47. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 15. Loan provision account for impairment losses 2017 2016 € € As at 1 October 4,976,279 5,469,979 Transfer in on TOE 1,871.076 452,767 Provisions reversed during the year (1,352,166) (946,467) As at 30 September 5,495,189 4,976,279
2017 2016 Net impairment gains on loans to members € € Bad debts recovered (773,947) (583,218) Impairment of loan interest reclassed as bad debt recoveries and net (777,099) (332,105) impairment gains Reduction in loan provisions during the year (1,352,166) (946,467)
Loans written off 686,421 474,826 Net recoveries on loans to members recognised for the year (2,216,791) (1,386,964)
16. Prepayments and accrued income 2017 2016 € € Prepayments 317,234 228,417 Accrued investment income 853,175 922,987 Accrued loan interest income 179,749 115,748 Other receivables - 400,000 1,350,158 1,667,152
17. Members’ shares 2017 2016 € € As at 1 October 168,100,278 122,567,831 Acquired under transfer of engagement 38,793,006 32,354,826 Received during the year 78,970,564 55,442,053 Withdrawn during the year (64,271,976) (42,264,432) As at 30 September 221,591,872 168,100,278
Members’ shares are repayable on demand except for shares attached to loans. Attached and unattached shares are as follows: Unattached shares 182,011,820 149,237,105 Attached shares 39,580,052 18,863,173 Total members’ shares 221,591,872 168,100,278 Consequently, €182,011,820 of members' shares are repayable on demand.
48. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 18. Members’ deposits 2017 2016 € € As at 1 October 13,372,653 14,497,501 Acquired under transfer of engagement - 262,930 Received during the year 16,549,275 15,372,784 Repaid during the year (16,694,703) (16,760,562) As at 30 September 13,227,225 13,372,653
Members' deposits maturity analysis
< 3 mths 13,227,225 13,110,278 3-6 mths - 173,499 6-12 mths - 88,876 >1 yr - - Total as at 30 September 13,227,225 13,372,653
19. Creditors and accruals 2017 2016 € € DIRT 641 2,457 PAYE/PRSI 52,365 43,397 Trade creditors 134,195 197,739 Car draw 8,146 90,337 Other creditors and accruals 235,798 603,280 431,145 937,210
20. Additional financial instruments disclosures
20a. Financial risk management
Member First Credit Union Limited is a provider of personal, business and mortgage loans and also provides savings products to its members. The Credit Union invests excess funds with a view to ensuring that the return from members’ loans and investments is adequate to meet the overheads of the Credit Union and provide a reasonable return to members on shares and deposits. The Credit Union has a risk register in place to help the Directors man- age the various risks arising from its activities to include the issuing of loans to members and investing the excess funds of the Credit Union. The main financial risks arising from Member First Credit Union Limited activities are credit risk, liquidity risk and interest rate risk. The Board reviews and agrees policies for managing each of these risks, which are summarised overleaf.
49. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 20a. Financial risk management continued
Credit risk: Credit risk is the risk that a borrower will default on their contractual obligations relating to repayments to Member First Credit Union Limited, resulting in financial loss to the Credit Union. In order to manage this risk the Board ap- proves the Credit Union’s Credit Policy, and all changes to it. Loan applications are assessed with reference to the credit policy in force at the time. Subsequently loans are regularly reviewed for any factors that may indicate that the likelihood of repayment has changed. Credit risk information on members’ loans is disclosed in Note 14. The Credit Union complies with section 12 of the Credit Union Act, 1997 (Regulatory Requirements) Regulations 2016. This regulation: • restricts the concentration of lending by the Credit Union within certain sectors or to connected persons or groups; • restricts the absolute amount of lending to certain sectors to a set percentage of the regulatory reserve; • restricts the loan duration of certain loans to specified limits; and • requires specified lending practices to be in place where loans are made to certain sectors such a commercial loans, community loans and loans to other Credit Unions.
The Credit Union’s cash at banks and investments are also exposed to credit risk and the Credit Union mitigates the risk by only placing investments with financial institutions where the counterparties have strong credit ratings and using investment products authorised by the Central Bank. The credit ratings of the financial institutions where investments are held are disclosed in Note 13.
Liquidity risk The Credit Union’s Policy is to maintain sufficient funds in liquid form at all times to ensure that it can meet its liabili- ties as they fall due. The Credit Union adheres on an ongoing basis to the minimum liquidity ratio and minimum short term liquidity ratio as set out in the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016. The Credit Union's liquidity ratio as at 30 September 2017 was 29.50% (2016: 27.02%).
Market risk: Market risk is generally comprised of interest rate risk, currency risk and other price risk. Member First Credit Union Limited conducts all its transactions in Euro and does not deal in derivatives or commodity markets. Therefore, the Credit Union is not exposed to any form of currency risk or other price risk. Interest rate risk is the risk that future cash flows of a financial instrument fluctuate because of a change in market interest rates. The Credit Union manages interest rate risk via its business model of maintaining the vast majority of its liabilities as non-interest bearing (i.e. member shares).
The Credit Union receives variable interest income from its loans to members, a combination of variable and fixed interest income from its deposits and investments and pays fixed interest on its members deposits accounts. Divi- dends are also payable to members but these do not constitute interest payments. The Credit Union is not exposed to any material interest rate risks relating to the mismatch of interest rates on its financial assets and liabilities. The Credit Union's main interest rate risk relates to its exposure to low yielding money market and bond products which are currently available in the current low interest rate environment. Consequently, the Credit Union's investment income has decreased during the year.
Set out on the opposite page is a sensitivity analysis for the Credit Union's interest rate risk disclosing the impact on profit or loss and total reserves for a 10% increase and 10% decrease in interest rates on its investment portfolio. The interest income on members' loans has not been adjusted on the basis that interest rates do not tend to vary.
50. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued
2017 2017 2017 Actual Interest Interest rate +10% rate -10% € € € Investment income 2,017,956 2,219,752 1,816.160 Surplus for the financial year 4,606,215 5,066,836 4,145,593 Total reserves 38,438,924 42,282,816 34,595,031
20b. Interest rate risk disclosures 2017 2017 2016 2016
Average Average interest Amount interest rate Amount rate € € € € Financial assets Gross loans to members 82,370,993 9.4% 59,343,898 10.2%
Financial liabilities Members’ shares 221,591,872 168,100,278 Members’ deposits 13,227,225 0% 13,372,653 0.25% 234,819,097 - 181,472,931 -
20c. Liquidity risk disclosures
All of the financial liabilities of the Credit Union are repayable on demand except for some members’ shares attached to loans and members’ deposits which have a fixed maturity date. 20d. Fair value of financial instruments
Member First Credit Union Limited has a number of other financial instruments which are required to be accounted for under FRS 102 at fair value. See note 13 for further details. 21. Capital
The Credit Union maintains sufficient reserves to buffer the Credit Union against unforeseen losses. The Credit Union's regulatory reserves are in excess of the minimum requirement set down by the Central Bank, and are 10.0% of the total assets at the balance sheet date. The Credit Union's total capital reserves at 30 September 2017 were €38.4m (2016:€30.4m) (14.05% of total assets).
51. ANNUAL REPORT & ACCOUNTS 2017
Notes to the Financial Statements continued 22. Events after the end of the reporting period
There are no adjusting or non adjusting events after the end of the reporting period which would require disclosure in the financial statements. 23. Contingent liabilities
Member First Credit Union Limited had no contingent liabilities at the current or prior balance sheet date. 24. Capital commitments
There were no capital commitments either contracted for or approved by the Board at the year end. 25. Related party transactions
(i) Disclosures required by FRS 102 Loans During the year loans were advanced to Directors and the management team of the Credit Union (to include their family members or any business in which the Directors or management team had a significant shareholding) in the amount of €115,973 (2016: €110,050). These loans were approved in accordance with the Credit Union's lending policy and the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016. The loans outstanding from these parties at 30 September 2017 were €341,827 (2016: €156,217). These loans amounted to 0.41% of total gross loans outstanding at 30 September 2017 (2016: 0.26%). There were no provisions held against the loans due from the Directors and the management team at the current or prior Balance Sheet date.
Shares The total share transactions by related parties during the year were €148,955 (2016: €68,934). The total amount of shares held at the year end was €274,487 (2016: €125,532).
(ii) Disclosure required by Section 47(1)(b) of the Credit Union Act 1997 (Regulatory Requirements) Regulations 2016 Total loans outstanding to Directors and the Management Team of the Credit Union (to include their family members or any business in which the Directors or Management Team had a significant shareholding) at 30 September 2017 were €341,827 (2016: €156,217). These loans amounted to 0.41% of total gross loans outstanding at 30 September 2017 (2016: 0.26%). 26. Operating Lease Commitments
There are commitments to operating leases in relation to branch premises for Member First Credit Union Limited.
2017 2016 € € Within 12 months 15,956 4,078 1 to 5 years 41,832 12,790 After 5 years - - Total 57,788 16,868
27. Approval of Financial Statements The financial statements were approved, and authorised for issue, by the Board on 24 October 2017.
52. ANNUAL REPORT & ACCOUNTS 2017
Non-statutory financial information
SCHEDULE 1 - OTHER MANAGEMENT EXPENSES (UNAUDITED)
2017 2016 € € LP/LS Insurance 1,018,241 699,927 Death Benefit Insurance 115,580 198,835 Rent, Rates & Service Charges 290,946 214,430 Printing and Stationery 56,217 55,832 Conventions, Meetings & Seminars 18,304 16,605 Education & Training 24,851 20,991 General Insurances 75,765 40,770 Repairs & Maintenance 141,661 122,337 Computer & Equipment Maintenance 366,259 211,013 ISO Costs 13,100 21,224 Postage and Telephone 89,960 107,617 Audit & Accountancy 80,326 75,250 AGM Expenses 99,881 55,871 Security 120,486 55,409 Travel Expenses 11,581 11,899 CCC Legal fees 190,058 96,155 Legal & Consultancy Fees 143,004 124,738 Advertising & Promotions 157,214 75,235 Light & Heat 74,339 54,687 Registration Fees 18,608 5,008 Uniforms & Staff Development 5,572 5,691 Bank Interest & Charges 96,848 85,672 Affilation Levies 83,246 115,239 Shorts & Overs 5,521 740 REBO Levy 78,380 200,000 Resolution Levy 117,303 83,788 Regulatory Levy 56,341 37,588 Sundry Expenses -19,054 -18,748 Project le Cheile 75,606 234,511 Community Development Expenses 185,090 126,121 Deposit Guarantee Scheme 228,597 -
Total per Income and Expenditure Account 4,019,831 3,134,435
The following information does not form part of the statutory financial statements and consequently is not audited.
53. ANNUAL REPORT & ACCOUNTS 2017
130th Priorswood Scouts Defibrillator Adam Shelley European Tae Kwon Do Presentation 2017 Champion sponsored by MFCU
Artane Castle Members Day Gaelscoil Bhrian Boroimhe School Savings Scheme Donation
Northside Branch Members Night in Raheny Branch Members Day with FM104 Northside Shopping Centre
54. ANNUAL REPORT & ACCOUNTS 2017
Credit Union Resolutions
Statutory Reserve Rule 13 (I) (ii): his/her application for membership ‘That this Annual General Meeting agrees that shall have been approved by the Board of the sum of €1,403,067 be transferred from the Directors or by the Membership Committee. appropriation account to the Statutory Reserve.’ Rule 19: An account that has had no member Dividend initiated transaction within a 36 month period, ‘That this Annual General Meeting agrees that the will be deemed dormant by the Credit Union. sum of €554,961 be distributed to members by Members with balances greater than €500.00 will way of a dividend.’ be advised of the status of their account in writing and invited to contact their branch should they Interest Rebate wish to continue to operate their account. In the ‘That this Annual General Meeting agrees that the event that a member does not engage with the sum of €355,515 be distributed to members by Credit Union within thirty days of the sending way of an interest rebate on standard loans.’ of such notification the account will be flagged as dormant and will retain this status until such Affiliation Fee time as the member chooses to reactivate the ‘That this Annual General Meeting agrees that the account. This is done by means of completing a sum of €3 be deducted from each adult members’ new Membership Application form, providing the share account by way of an Affiliation Fee.’ required identification and verification documents and conducting a transaction on the account. Rule Changes Funds held in the account remain the property That this here Annual General Meeting agrees to of the member and dividends and interest shall amend the following rules to read: continue to be payable on these accounts. However it is noted that a dormant account status Rule 12: Each application for membership must be may impact on a member’s Loan Protection and approved in accordance with Rule 13 Life Savings benefits.
Member First Credit Union are pleased to offer our Members DEATH BENEFIT a Death Benefit Insurance Program to assist with end of life INSURANCE expenses. In summary this Program will provide the following:
• €2,000 life assurance cover payable on your death; • Immediate cover – no medical – fixed €2,000 Death Benefit Participation in the Program costs €1 per week, payable in a lump Insurance for only sum in advance from your share account. As this is a community €1 per week program all members pay the same cost regardless of age or gender, and all get the same level of cover. Please be aware you must opt-in to this Program, enrolment is not automatic and you can do so by completing an entry form in branch or online at www.mfcu.ie. For full product details and T&Cs see our website or speak with a member of staff.
This policy is arranged, on behalf of Member First Credit Union by Cuna Mutual Group Services (Ireland) Limited which is regulated by the Central Bank of Ireland. The policy is underwritten by Covea Life Ltd. which is authorised by the Prudential Regulation Authority of the UK and complies with the Central Bank of Ireland’s conduct of business rules in relation to the provision of this MemberDeath Benefit Insurance program 55. ANNUAL REPORT & ACCOUNTS 2017
Board Oversight Committee Report The Board Oversight Committee is an independent body elected at the AGM. It is our duty to assess, evaluate, and report on whether the Board of Directors has operated in accordance with Part IV and Part IVA of the Credit Union Act, 1997 (as amended).
At the beginning of the year the Committee met to set out their Terms of Reference and Work Plan. During the past year the Committee met on 12 occasions, attended sub-Committee meetings and were represented at monthly Board meetings. We are satisfied that those meetings were conducted in accordance with the rules and regulations of the Credit Union.
In 2017 the Committee held four meetings with the Board in line with “The Credit Union and Co-Operation with Overseas Regulators Act 2012”, where the performance of the Board was reviewed under, Governance and Committees, Cyber Security and Risk, Auditing and Financials and Strategic Planning. The Committee had no occasion to bring any matters to the Boards attention. All members of the Board Oversight Committee and Board continue to attend appropriate professional training in order to meet fitness and probity requirements.
During 2017, the Board was particularly proactive around an organisational review, IT infrastructure, enhancement of member services and long-term strategy including financial planning.
Due to its nature, scale and complexity, the Credit Union was subject to a Central Bank of Ireland PRISM inspection visit where members of the Board and Board Oversight Committee, Management and Staff were interviewed. We are satisfied that the Credit Union was fully co- operative and professional with the Central Bank during their visit.
As a result of our examinations during the year, we believe that the Board of Member First has acted in the best interest of its Members by maintaining the strategic objectives of the Credit Union and continues with good governance. At this time, the Board Oversight Committee would like to thank the Board of Directors, Chief Executive Officer, staff and volunteers for their complete co-operation whilst we carried out our duties during 2017.
Board Oversight Committee Helen Walker (Chairperson), George Mongey (Secretary), Paddy Carpenter
MfCU Sponsored Family Day Kilbarrack School Saver Scheme Best Saver Award
56. ANNUAL REPORT & ACCOUNTS 2017
Audit Committee Report The principal function of the Audit as appropriate. Committee is to oversee the financial • Meetings covered all areas of the reporting process, the system of internal committee’s responsibilities and thereby control, and all audit related matters of the enabled the committee to discharge its credit union on behalf of members. duties effectively.
Tasks completed during the year The Committee is satisfied that its activities during the year supported the delivery Internal Audit of its responsibilities as set out above. In the opinion of the committee the financial • Carried out a review of the Internal Audit control environment of the credit union function’s performance and held a review is robust, and sufficient personnel with meeting with the lead Internal Auditor appropriate expertise have been employed • Approved the Internal Audit Work Plan for to ensure compliance with the credit union’s 2017 obligation to keep proper books of account • Considered the effectiveness of the and to provide to members’ financial internal audit function, adequacy of statements free from material misstatement. resources, experience and expertise and deemed these to be satisfactory for the Audit Committee John Matthews, Olive credit union’s current needs. McMahon, Richard Murphy, Bridget Johnston External Audit
• External Auditors presented a clean 2017 audit and a summary of internal control to the Board of Directors and confirmed that internal controls were strong and there were no concerns or recommendations they wished to bring to the attention of the Audit committee.
Reporting to Board
• Chairperson of the committee provided regular updates to the Board on the committee’s activities including formal quarterly written updates.
Committee Meetings
• Committee met on a number occasions during the year. The CEO, Deputy CEO, Risk and Compliance Officers, Internal and External Auditors attend these meetings
57. ANNUAL REPORT & ACCOUNTS 2017
Risk Committee Report The purpose of the Risk Committee is New Product Offerings to assist the Board in its oversight of risk within the Credit Union through reviewing • During the year, the Credit Union the Credit Unions, risk appetite and risk introduced Mortgage Loans. As part of profile, the effectiveness of the Credit this process, the Risk Committee reviewed Unions risk management framework and the risk assessments completed to ensure the methodology and assumptions used that all associated risks are appropriately in determining the Credit Unions, capital managed. requirements. Strategic Review The Committee oversees all aspects of risk management in the Credit Union including • During the year, the Board of Directors market, credit, liquidity, insurance and approved a new Strategic Plan for the operational risk (including merger risk), next three years. As part of this process, and their impact on both financial and non- the Risk Committee assessed the strategic financial goals. initiatives and ensured that the necessary During the year the Committee focused on risk management processes are applied. the following areas: Committee performance and Risk Appetite Monitoring effectiveness
• Against a backdrop of significant market The Committee undertook an Annual volatility during the year, the Committee Review of its performance and effectiveness received regular detailed reports on key which concluded that overall the Committee risk exposures, emerging and potential was effective in carrying out its duties. The risks, and the drivers of risk throughout the Committee agreed its priorities for 2017. Credit Union's. It assessed and challenged the appropriateness of the Credit Unions, The Risk Committee, along with the Board overall risk appetite and approved revised of Directors, recognises the importance of risk appetites. safeguarding the reputation of the Credit Union and protecting members' funds, in Pricing Model particular ensuring they are not put at risk. Managing risk prudently is critical to the • The Committee received regular update continued long-term viability of MFCU and on the Pricing Policy of the Credit Union. to the continued safety of members’ funds. The Committee ensured that all prices offered to the members incorporates the Risk Committee associated risk attached with the product Pascal Delahunty, Valerie Mulvaney and offering. Michael McKenna
58. ANNUAL REPORT & ACCOUNTS 2017
Nomination Committee Report The principal activity of the Nomination Committee is to review the composition of the Board to ensure that it has the right skills, diversity and experience in place to ensure the effective oversight of Member First Credit Union and to identify candidates to be nominated for appointment to the Board.
Every candidate to be nominated for appointment as a member of the Board of Directors shall be proposed through the Nominations Committee only. No person shall otherwise be put forward for election or seek election at the AGM.
The Committee must ensure that prospective candidates meet the competency requirements of MFCU and satisfy the Fitness and Probity requirements of the Central Bank of Ireland. This standard ensures that all Board Members are capable and competent, are financially sound and have the appropriate skills, experience and integrity to govern the Credit Union.
It is also the responsibility of the Nominations Committee to ensure that there is an appropriate Succession Plan in place for the Board of Directors. As such, we are preparing a panel of suitable candidates for nomination to the Board of Directors in future years as vacancies arise and actively encourage members who have expertise and experience in any relevant area to consider putting themselves forward for election as either a Director or a member of the Board Oversight Committee. Key areas of expertise required include marketing, governance, risk and finance. We would encourage anyone interested in the role of a Director to contact the Credit Union for details around the competency requirements for the role.
If you are interested in standing for the Board of Directors in the future and wish to be considered for our Directorship Programme in 2018, please email [email protected].
Notice of Elections
The terms of office of the following members has expired and are seeking re-election.
Candidate Role Term of Office Catherine Bannon Director 3 years Joan Barker Director 3 years John Matthews Director 3 years George Mongey Board Oversight Committee 3 years MKO Auditor Election 1 year
Having considered the balance of skills, experience and knowledge required for the Board of Directors and the Board Oversight Committee, the Nomination Committee proposes the above mentioned for election by the members.
Nominations Committee Jeff Kennedy, Gráinne Brennan, Michael McKenna, Joan Barker 59. ANNUAL REPORT & ACCOUNTS 2017
Central Credit Register Notice I wish to inform you about the Central Credit • If you ask to change the term of an existing Register (CCR) which is being established by loan; or the Central Bank of Ireland under the Credit • If they are reviewing a loan in arrears. Reporting Act 2013. Employers, Landlords, or any other person The CCR is a national database that will, on or entity cannot access your credit report request, provide: without your written consent.
➤ A borrower with an individual credit report You do not need to take any action in detailing their credit agreements; response to this letter. We are writing only ➤ A lender with comprehensive information to inform you that we will now be sending to help with credit assessment; and information on your loan to the CCR. ➤ The Central Bank with better insights into national trends in relation to the provision As a result of the introduction of the CCR, all of credit. new loan applications will now require proof The loan you want, of your PPSN (e.g. copy of latest P60, letter The Credit Reporting Act 2013 requires us to from Revenue with your PPSN on it etc). process your personal and credit information Failure to provide the Credit Union with this the way for the CCR. From 30th June 2017, we will information will result in a delay in your loan submit personal information to the CCR that application decision. we may already have about you, like; your you want it. name, address, date of birth and Personal We invite you to read the factsheet that Public Service Number (PPSN). is available in branch or online at www. Now, there’s an improvement. mfcu.ie. If you have any other question We will submit credit information each about any of your loans with us, you can Your home is never finished. There’s always something to month about your loans, if the loan is for €500 contact us at [email protected] or speak with a or more. The CCR needs this information to be done. Something to change. A next project. Whatever member of our Member Services Centre at it is you have in mind – converting the attic or building on, create and maintain an accurate and up-to- 01 8513400. date credit report for each borrower. a bit of sprucing up or a total revamp – you’ll find it hard to improve on a loan from Member First Credit Union. John Phillips Your loan information will be stored Deputy CEO securely on the CCR where it will be used • Discounted interest rate* to create your credit report. The CCR will • Available for loan amounts of €25,000 - €50,000 not calculate a score or grade for your credit • Flexible repayment options report. Information will be kept on the CCR for a period of five years after your loan is Ask us a out our promotional paid off. home renovation loan In early 2018, credit reports will become available from the CCR. Once available, you may request your report at any time and are entitled to one free report each calendar year.
Lenders may only access your Credit Report in the following circumstances; The next generation credit union • When considering an application for a new loan; *Lending criteria, terms and conditions apply John Phillips Deputy CEO 60. 01 851 3400 Drop in mfcu.ie ANNUAL REPORT & ACCOUNTS 2017
The loan you want, the way you want it. Now, there’s an improvement.
Your home is never finished. There’s always something to be done. Something to change. A next project. Whatever it is you have in mind – converting the attic or building on, a bit of sprucing up or a total revamp – you’ll find it hard to improve on a loan from Member First Credit Union.
• Discounted interest rate* • Available for loan amounts of €25,000 - €50,000 • Flexible repayment options
Ask us a out our promotional home renovation loan
The next generation credit union
*Lending criteria, terms and conditions apply
61. 01 851 3400 Drop in mfcu.ie ✁
Go Green & Stay up to date with Member First Credit Union
Member First Credit Union Ltd. would like to reduce the number of communications via traditional means such as print and postage and keep you informed by phone, SMS and e-mail about our products and services. Please complete this form, the use of your details for marketing purposes will depend on the preferences that you express below:
Name:
Account Number:
Email Address:
Mobile:
I consent to Member First Credit Union contacting me for marketing purposes via:
YES NO Phone ■ ■
SMS ■ ■
Email ■ ■
I understand that at any time I can ask you to stop or change the methods by which Member First Credit Union may send me marketing materials. This can be done free of charge by writing to Marketing Department, Member First Credit Union, Artane Roundabout, Malahide Road, Dublin 5 or by emailing [email protected]
Please note that you have the right to access data held about you by the Credit Union and to correct any inaccuracies in such data.
Members Signature: Print Name:
Date:
Witnessed by: Print Name:
Date: ✁
ANNUAL REPORT & ACCOUNTS 2017
Your questions answered Invitation to members to submit questions in advance of the AGM
In order to improve the smooth running of the Annual General Meeting and taking on feedback from members at our 2016 AGM regarding the submission of questions, we have created the below form which can be used to submit questions to the Board of Directors in advance of the meeting. In addition questions can be emailed to [email protected]
Name:
Account Number:
Email Address:
Mobile:
Question(s):
Other relevant information (if any)
Any questions submitted that are not relevant to the business of the AGM will be forwarded for the attention of a relevant officer to be addressed, as appropriate.These might include matters relating to a members account or affairs which are unlikely to be relevant to the business of the AGM. Submitting a question in advance of the AGM does not affect your rights as a shareholder to attend and speak at the AGM.
Please return the above form completed to your local Credit Union branch no later than 4th December 2017 or to the address overleaf. 63. Head Branch Artane Roundabout, Malahide Road, Dublin 5
Tel: 01-8513400
The next generation Credit Union
(01) 851 3400 Drop In mfcu.ie