2019 Annual Report

2019 ANNUAL REPORT Credit Union Invocation LORD, make me an instrument of Thy peace; where there is hatred, let me sow love; where there is injury, pardon; where there is doubt, faith; where there is despair, hope; where there is darkness, light; where there is sadness, joy. O DIVINE MASTER, grant that I may not so much seek to be consoled as to console; to be understood as to understand; to be loved as to love; for it is in giving that we receive, it is in pardoning that we are pardoned, and it is in dying that we are born to eternal life. CONTENTS 1 Agenda . 2 General Information . 3 Chairman’s Report . 4 CEO’s Report . 6 Directors’ Responsibilities Statement . 9 Board Oversight Committee Report . 10 Independent Auditors’ Report to the Members of Croí Laighean Credit Union Limited . 11 Audit & Finance Committee Report . 14 Risk & Compliance Committee Report . 15 Community Committee Report . 16 Nominations Committee Report . 20 Directors’ Report . 21 Income and Expenditure Account . 23 Balance Sheet . 24 Statement of Changes in Reserves . 25 Statement of Cash Flows . 26 Notes to the Financial Statements . 27 Schedules to the Income and Expenditure Account . 43 Model Standing Orders . 44 Members Draw Report . 45 Annual Report 2019 2 AGENDA Notice is hereby given that the AGM of Croí Laighean Credit Union will take place on Wednesday, December 11th, 2019 at 7pm, in MU Barnhall Rugby Football Club, Parsonstown, Leixlip, Co . Kildare, W23 V56N . The agenda for the AGM is as follows: ▪ Acceptance by the Board of Directors of the authorised representatives of clubs/organisations ▪ Ascertainment that a quorum is present ▪ Adoption of Standing Orders ▪ Reading & approval (or correction) of the Minutes of the last AGM ▪ Report of the Board of Directors ▪ Report of the CEO and Consideration of the Accounts ▪ Report of the Auditor ▪ Report of the Board Oversight Committee ▪ Declaration of Dividend and Loan Interest Rebate ▪ Report of the Risk and Compliance Committee ▪ Report of the Audit and Finance Committee ▪ Report of the Nominations Committee ▪ Appointment of Tellers ▪ Election of Auditor ▪ Election to fill vacancies on the Board Oversight Committee ▪ Election to fill vacancies on the Board of Directors Motions ▪ Motion 1 – that €0.90 affiliation fee to Irish League of Credit Unions be deducted from the savings of each adult member at 30th September 2019 . Any Other Business ▪ Announcement of election results ▪ Adjournment or close of meeting Yours sincerely, Board of Directors Croí Laighean Credit Union Annual Report 2019 GENERAL INFORMATION 3 Directors Marketing Central (Allenwood, Coill Brian Manning Joanne Shelley Dubh, & Prosperous) Chairman Head of Marketing Deirdre Harris Emily Cosgrove Eugene Kearney Niamh Boland Lorraine Smullen Vice Chairman Martin Fitzgerald Theresa O’Neill Eamonn O’Farrell Secretary Finance East (Clane) Shane Corcoran Ber Power Michael Devine Head of Finance Gemma Donnelly Josephine O’Neill Liz Rickard Monica Cross Niall Kenna Bernardine Farrell Amy O’Rourke Henry Byrne Stephen Mooney Kulwant Gill North (Leixlip) Denise Larkin Lending & Business Annmarie Mackey Donal Daly Development Claire O’Neill Aida Best Monica Cribbin John Cummins Veronica Dunne Board Oversight Niamh Mahon Committee Bernadine Sheridan Michael Hyland Catherine Boyce Michael Whelan Community/Schools Edel Bagnall Sheila Flynn Lorraine Murphy Conor Barcoe Sean Fitzgerald Training Officer Charlene O’Shea Annemarie McNamee CEO Member Services Executive Assistant Paul Kennedy Charlene Hoey Member Services Centre Operations West (Edenderry & Aine Heffernan Caroline Daniels Carbury) Carol Flynn Deputy CEO and Amanda McLoughlin Mary Dunne Head of Operations Andrew Forde Olive Hughes Denise Thompson Caitriona Coates Internal Auditors Caroline McNamee Moore Ireland Risk Elaine McCloskey Emily Harte Bernard Hunter Emma Forde Judge External Auditors Grant Thornton Compliance/Data Jackie Groome Protection Katie Gallagher Kevin O’Brien Investment Advisors Brona Byrne Olive Rowe Goodbody Stockbrokers Patrice Cave Regulation Sandra McLoughlin Noelle Wallace Pauline O’Flanagan Annual Report 2019 4 CHAIRMAN’S REPORT Dear Members, ▪ Nominations Committee Report – this committee must ensure the Board of Welcome to the third annual report of Croí Directors has the necessary skills and Laighean Credit Union, and the first where we knowledge to direct the course of Croí had one full year after two years of mergers . Laighean Credit Union, and constantly review This annual report is a representation of the their work in the appropriate manner . work carried out by your Board of Directors, your ▪ CEO Report – our CEO will update our Board Oversight Committee and your staff during members on several areas, including results another busy year . The report is structured as for the year, overview of lending, credit follows, to give you an overview of all the work control, investments, community involvement carried out: and membership . ▪ Risk & Compliance Committee Report This is my final year as chairman however, I am – this committee has the hugely important extremely proud of our achievements since the role of dealing with regulation overall and mergers in 2017 and 2018 . We came together ensuring Croí Laighean Credit Union has to grow, and I am hugely enthused by the robust policies and procedures in place in the amount of lending, community involvement and areas of risk management, and compliance . positivity in the last three years . All our external ▪ Audit & Finance Committee Report – this reviews have been positive, which is a huge committee are responsible for oversight of compliment to our entire team . I would like to external audit, internal audit, investments and thank our Board, our Board Oversight and our financial reporting. staff for making Croí Laighean Credit Union one of the strongest Credit Unions in the country, and ▪ Board Oversight Committee Report – this certainly at the Heart of Leinster . committee are the overseers of the work of the Board of Directors and ensure, on Brian Manning members behalf, that the work of the board is Chairman in line with legislation . Annual Report 2019 A YEAR OF GROWTH 5 €0.6 million €66 million Operating Surplus Loan Book €211 million €144 million Assets Investments 36,069 2,073 Total Members New Members Transactions €180 million Member Savings 0.05% Dividend Paid 1.34 million Automated Transactions 7 branches Across Common Bond 414,700 In-branch Transactions 10% 9% Interest Rebate Increase in Loans Issued (ALL LOANS) Current Account & Community & Schools Debit Account Live in September €156,000 One of the highest issued to local pick-up rates in the Community Clubs and Country Schools Annual Report 2019 6 CEO REPORT My role as CEO is to have overall responsibility How are our results presented this year? for the day to day management of Croí Laighean This is the third year of Croí Laighean Credit Credit Union, including operations, finance, Union . regulation and overall performance, including the implementation of the Strategic Plan . ▪ 2019 – full year of Croí Laighean Credit Union It would be impossible for one single person to perform this role, and my job is aided by ▪ 2018 – full year of Croí Laighean Credit an unbelievable team of people who are Union and six months of Leixlip and District responsible for: Credit Union . Member Services 34 What do our results represent this year? Lending 7 You will see from our Income & Expenditure Account that our overall result for the year was Marketing 3 €0 .6m . From an overall perspective, this is a very positive endorsement of both mergers, and Regulation 4 allows us to provide a return to our members Finance 4 this year . I would now like to go through the main areas contained in the results . Other departments 6 The growth achieved here is well ahead of our Total 58 targets, so it is a major positive for our lending team . With such poor returns on investments, This report is a summary of the work of this the growth in lending is a massive achievement dedicated group of people, who work tirelessly and bodes well . on behalf of Croí Laighean Credit Union . Lending The graph below shows the growth in lending overall and is a huge achievement for Croí Laighean this year . Lending 2019 vs 2018 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Business Covered Home Motor Mortgage Celebration 5 Year Fixed Other 2019 2,000,500 7,028,701 8,076,978 10,550,773 1,682,283 1,395,305 3,043,520 3,515,521 2018 1,705,500 6,232,478 8,414,684 9,459,465 1,209,300 1,341,945 2,130,855 3,575,192 Annual Report 2019 Investments Credit Control 7 Our overall investment portfolio is now €144m . The levels of loans in arrears, which reflects This is a significant amount of money to the hard work of our credit control team, is seek some return on, however it is vital for shown on page 38 . As you can see, accounts the continued future of Croí Laighean that in arrears are falling, meaning we are lending we do obtain as much return as we can . At better, and collecting better . present, the returns being offered on some demand deposit accounts are negative, we Collections on charged off accounts this year would basically be charged by other financial have been very strong, with an average of over institutions for holding our money . Unfortunately, €40k per month . given the global economic uncertainty, this is unlikely to change in the near future . Expenditure Some of the larger changes in costs are outside of our control, however the primary categories which have seen changes are as follows: Change % Explanations The cost of ensuring we are reviewed and measured Professional fees 11% correctly is vital for the protection of all members interests . We have added resources to member services, lending and Salary costs 11% marketing this year to expand our offerings to members These costs are outside our control and are based on the Regulatory fees 22% size of our assets The cost of insurance rises based on the growth in savings LP/LS 20% and loans .

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