CU AGM document - Castlemilk Credit Union



-72978661590589002381250Castlemilk Credit Union31st Annual General MeetingWednesday 24th March 2021Agenda TOC \o "1-1" \h \z \u welcome PAGEREF _Toc67488579 \h 2Credit Union Invocation PAGEREF _Toc67488580 \h 3Adoption of Standing Orders PAGEREF _Toc67488581 \h 4Ascertain quorum PAGEREF _Toc67488582 \h 6Attendance & Apologies PAGEREF _Toc67488583 \h 6A minute silence for deceased members PAGEREF _Toc67488584 \h 6reading & approval of AGM previous minutes PAGEREF _Toc67488585 \h 7Matters arising from previous agm minutes PAGEREF _Toc67488586 \h 10Board of Directors Report PAGEREF _Toc67488587 \h 11General Managers Report PAGEREF _Toc67488588 \h 13Guest Speaker PAGEREF _Toc67488589 \h 16Credit Union personnel PAGEREF _Toc67488590 \h 17independent Auditor Report PAGEREF _Toc67488591 \h 18income & expenditure account PAGEREF _Toc67488592 \h 20Loans & Shares PAGEREF _Toc67488593 \h 21balance sheet PAGEREF _Toc67488594 \h 22Appointment of Auditor PAGEREF _Toc67488595 \h 23Membership Committee Report PAGEREF _Toc67488596 \h 24Credit Committee Report PAGEREF _Toc67488597 \h 27Credit Control Report PAGEREF _Toc67488598 \h 29Internal AuditOR REPORT PAGEREF _Toc67488599 \h 30nominations & Elections PAGEREF _Toc67488600 \h 31Any Other Business PAGEREF _Toc67488601 \h 32Close of Meeting PAGEREF _Toc67488602 \h 32welcomeDirector: Craig Mathie It gives me great pleasure to welcome you to Castlemilk Credit Union’s 31st Annual General Meeting. On behalf of the Board of Directors, I am pleased to present our Annual Report and Financial Statements for the year ended 30th September 2020. Our aim is that whatever stage of life you are at, we have a savings or loan product to suit you.I would like to welcome our Guest speaker Mr. Dermot O’Neill – CEO of the Scottish League of Credit Unions (SLCU) whom we have been affiliated to since 1998.I would also like to welcome our invited guests from other Credit Unions and of course, you the members.This time last year saw us introducing our 30th Anniversary and what should have been a welcome from Jaci McInally, our chairperson. Unfortunately, Jaci was unwell and unable to present the meeting. Jaci has subsequently retired from her position on the board. Jaci had been an integral part of the Board since 2009 and will be sorely missed. We would like to take this opportunity of thanking her for her contribution over the years and wish her well in the future.We were also exposed to the introduction of a virus which would subsequently lead to what we now know as COVID 19 and a Global Pandemic.This report will detail how we have performed up to year end September 2020 and how the business has managed during these extraordinary times.Credit Union InvocationMake me an instrument of your peaceWhere there is hatred, let me sow loveWhere there is injury, pardonWhere there is doubt, faithWhere there is despair, hopeWhere there is darkness, lightAnd where there is sadness, joyGrant that I may not so much seekTo be consoled as to consoleTo be understood, as to understandTo be loved, as to loveFor it is giving that we receivedIt is pardoning that we are pardonedAnd it is dying that we are born to eternal lifeAdoption of Standing OrdersGeneral Manager: Elizabeth CampbellStanding Orders for the Annual General Meeting shall inter alia be:A Member shall address all comments through the Chair. A Member shall only address the Meeting when called upon by the Chair to do so and should raise their hand to indicate that they wish to address the floor. Speeches are to be clear and relevant to the subject before the Meeting. The person proposing the motion shall be allowed a maximum of five minutes to speak on the motion. The person seconding the motion shall be allowed a maximum of three minutes to speak in support. A Member may not speak twice on the same subject except he/she: (a) Is the Mover of a motion with the right of reply. (b) Wishes to object or to explain (with permission of the Chair). The Mover of a “Procedural Motion” (Adjournment, Lay on the Table, Motion to postpone) shall have no right of reply. Debate shall cease when the Chair decides sufficient debate has taken place. No speeches or amendments are to be made after the “Motion” has been put and carried or negated. A Member speaking on a “Point of Order” is to state the point clearly and concisely. (A “Point of Order” must have relevance to the “Standing Order”.) (a) A Member shall not “Call another Member to order” but may draw the attention of the Chair to a “Breach of Order”. (b) In no event can a Member call the Chair to Order. A “Question” shall not be put to the vote if a Member desires to speak on it or move an amendment to it, however the following may be moved at any time: a “Procedural Motion: The Previous Question” “Proceed to the Next Business” or the Closure:“ That the Question be now Put.” Only one amendment should be before the meeting at one and the same time. When a motion is withdrawn, any amendment to it fails. The Chair shall have the right to a “Casting Vote” If there is equality of voting on an amendment and if the Chair does not exercise a Casting Vote, the amendment is lost. Provision is to be made for protection of the Chair from vilification. No Member shall impute improper motives against another Member. Conduct at General Meetings Any person in breach of these Standing Orders, who interrupts the person speaking, who uses rude or abusive language, or disrupts the conduct of the meeting, shall be warned that any repeat of such misconduct will result in his/her expulsion from the meeting. Elections If the chair is a candidate standing for election, she/he shall hand over the chairing of the meeting to another officer or member of staff for that item.Ascertain quorumCredit Union Rule 50.1 states that:10% of the membership or 15 members, whichever is the lesser number, shall constitute a quorum. A meeting may proceed to business if a quorum is present within half an hour after the fixed time for commencement of the meeting. If after this time a quorum is not established the meeting shall be adjourned to a later date within 28 days when the meeting so adjourned may proceed to business whatever the number of Members present.Attendance & ApologiesNumber of member’s present Other persons in attendance Apologiescenter28799300A minute silence for deceased membersreading & approval of AGM previous minutesDirector: Craig Mathie Castlemilk Credit Union, 30th Annual General Meeting, Friday 13th March 2020, at 5pm Held at Castlemilk Credit Union, 155 Castlemilk Drive, Castlemilk, GlasgowMinutesWelcome Angus McIntosh, Treasurer, opened the meeting and welcomed all persons present to the 30th AGM. Jaci McInally had taken ill and was unable to chair meeting although she remained for meeting.InvocationLiz Campbell invited all present to join her in saying the Credit Union Invocation.Adoption of Standing OrdersStanding Orders were read and approved by all present.Proposed by Irene Hume and Seconded by Jaci McInallyAscertain a quorum A quorum was ascertained; all persons present having signed inApologiesApologies were accepted from Janet McLean and David Ross A minute’s silence for deceased members The meeting held a minute silence for deceased members. Remembering Frank Farrell who was a founder member of Castlemilk Credit Union. Our thoughts are with the family at this time.Approval of 2019 AGM minutes & matters arisingThe minutes of 29th AGM held on 20th March 2019 were read and there were no matters arising Proposed by Eileen McKee and Seconded by Rose Adam.Board of Directors reportThe report explained that as a Board it is their responsibility to establish objectives and formulate a business plan, monitor the financial position of the Credit Union, determine and document policies and procedures, maintain adequate reserves and provide for bad and doubtful debts. The board must ensure that the Credit Union complies with all statutory and regulatory requirements and that the Credit Union complies with the requirements of its registered rules. We are now fulfilling the demands of the FCA and The PRA and are compliant with the Senior Management (SMR) Regime and Certification Regime (CR) for UK banks, building societies and Credit Unions. General Manager Report The general manager’s report was read and accepted by the meeting. Liz gave a brief overview and reflected over the past 30 years of the credit union; from its birth to its present day. Liz also paid tribute to the members, to the volunteers, and to staff past and present for being an integral part in the process of co-operation. Liz thanked Crudens buildings and Renewals for painting the office as part of the Community Legacy Programme.Proposed by Debbie Barr Seconded by David Falconer Guest SpeakerDermot O’Neill, CEO of the Scottish League of Credit Unions gave a presentation on “Credit Unions in 2020 and beyond”. Dermot spoke of 4 credit unions failing in Glasgow over the past 2 years. This poses a threat to the entire sector. Going forward community based Credit Unions face challenges across five main areas; Personnel, Financial, Regulation, Technology and Relevance. Credit Unions should be reflecting on these areas and asking themselves why they exist, how they change their lives of their members and what they offer in terms of savings & loans. Financial Statements Liz Campbell briefly explained the auditor’s role for the new members present at the AGM, and explained the Financial Statements to all members present. Liz presented the statements this was due to Sharles being told the wrong time for meeting. . When Chris arrived he advised that we had a clean management report and audit. Adoption of accounts Proposed by Eileen McKee and Seconded by Ellen Kerr.Appointment of auditorSharles Audit Ltd were elected as our Auditor for 2019/2020Proposed by Jaci McInally and Seconded by Catherine Moran. Credit Committee report We have now introduced R post and R sign which means loan agreements can now be sent via email for the member to electronically sign. We anticipate this should sped up the loan turnaround time. Proposed by Ellen Kerr and Seconded by Anton McLeanCredit Control Report There is a difference between members who can’t pay and those who won’t pay. We now have introduced accepting card payments in the office and over the phone to ensure an easier process for our members. Liz welcomed anyone who had difficulty paying to speak to ourselves before things spiral out of control. Proposed by Catherine Moran and Seconded by Claire PeaceSupervisory report As read.Proposed by Eileen McKee and Seconded by Debbie BarrInsurance reportLPLS is the life savings and loan protection plan that Castlemilk credit union pay into on behalf of their members. The insurance protection gives extra peace of mind for members and their families and the credit union provides savings insurance benefit at no direct cost to the member. The credit union loans are insured at no direct cost to the member. The majority of loans are cleared in the event of a member’s death. (This plan is subject to terms and conditions and certain restrictions apply based on age and cover limits. Cuna mutual have limits and restrictions, which may vary over time.)Proposed by Liz Campbell and Seconded by Ann LairdNominations & ElectionsThere were no nominations and no directors were due for re-electionAny Other Competent Business Angus raised the concern of the Coronavirus and the impact facing the Credit Union Liz added that we should embrace change or we will be left behind. The meeting finished at 5.40pm with refreshments for members presentMatters arising from previous agm minutesBoard of Directors Report Director: Craig Mathie We would like to take this opportunity to thank you all for your continuedco-operation and support throughout the year.As a Board, it is our responsibility to establish objectives and formulate a business plan, monitor the financial position of the Credit Union, determine and document policies and procedures, maintain adequate reserves and provide for bad and doubtful debts. We must ensure that the Credit Union complies with all statutory and regulatory requirements and that the Credit Union complies with the requirements of its registered rules.The Credit Union Boards of Management need to have written policies on a range of issues and to review these policies periodically. The best way of doing this is to timetable the reviews into the annual series of board meetings, which we have carried out during the last financial year. This has been an unprecedented year and its impact is something we will continue to monitor and review.The Board’s key objective is to ensure that, as our members’ savings continue to grow, we continue to build our capital adequacy ratio to a level, which provides us with a strategic buffer above the regulatory requirements. To achieve this objective, without curtailing members’ ability to save, we need to focus on growing our loan book and retaining most of the profits generated from those loans. This has proven to be more difficult because of the pandemic. The injection of the Third Sector Resilience fund and the sub ordinated loan provided for by the Scottish Government, has allowed to continue operating during these times. Our strategic direction of travel going forward will hopefully keep us on the right path to continued success and growth. The General Manager’s report will elaborate on what this means.As a financial cooperative, we understand that we can most effectively serve you and strengthen the Credit Union movement by working through local, regional, national, and even international organizations. We are very involved in our local Glasgow Credit Union strategy group, for instance, which allows us to benefit from the training, tools, and resources available through our trade body SLCU as well as support from the other trade bodies and independent Credit Unions.The Board’s wants to maintain the balance between ensuring that Castlemilk Credit Union continues to be sustainable whilst remaining relevant to the members, growing with them, and continuing to make their financial lives better.The purpose of the Credit Union is to allow members to save together and lend to each other at a fair and reasonable rate of interest. The principal risks and challenges facing this Credit Union are loan default; not lending a sufficient proportion of funds so that too much of the Credit Union’s resources are tied up in investment products. These risks are managed by the Credit Union board to achieve an acceptable balance or growth and security for members’ resources. Member’s money serves better when in circulation through loans. Something we will strive towards improving.Regulatory Compliance - Castlemilk Credit Union, like all Credit Unions in the UK, is dual regulated by the Financial Conduct Authority and the Prudential Regulation Authority (PRA). The PRA requires that each Credit Union’s governing body will report to the members at the annual general meeting in respect of compliance as follows: Depositor Protection – Castlemilk Credit Union members are protected by the Financial Services Compensation Scheme. This means we are required to comply with various regulatory requirements in respect of the deposits we hold. In accordance with the PRA Credit Union Rule Book Part 10.1 we can confirm that we are compliant with the requirements of Depositor Protection 11 and 49 to 51. Policy of Insurance - The PRA Credit Union Rule Book Part 2.10 requires us to maintain insurance to protect against any loss suffered or liability incurred by reason of the fraud or other dishonesty of any of our officers or employees. In accordance with the PRA Credit Union Rule Book Part 10.1, we can confirm that we have complied with those requirements.We would also like to take this opportunity of formally welcoming Craig Mathie to the Board as well as reiterating our thanks to Jaci McInally for her previous years tenure.We look forward to serving you for another financial year.General Managers ReportGeneral Manager: Elizabeth CampbellIt has now been a year since we first had to take the necessary action in relation to the Pandemic. Something that none of us would have had the experience in dealing with. I would like to say a huge thankyou to those who have been there every step of the way.The first thing we had to do, was to let our existing volunteers go. This was mainly for their health and wellbeing and having sought advice from our peers. We had to take this on very seriously. The next thing we had to consider, was how to maintain the credit union and to continue serving our membership. Some of the following steps had to be put into place:No appointments for loans, death claims or otherwise will be carried out during this period. We must encourage as much as possible online activity and limit cash handling.Those who can, take payments over the phone.Avoid sharing workstations at all costs, stick to your own area. All staff will be responsible for their own working environment, this will include the use of hand sanitizer and anti-bacterial wipes. Before and after entering the kitchen or using the toilets.Gloves are an option to wear for handling cash and paperwork (incoming mail/application forms).Door entry Keypads should be wiped.All doors that are away from the public should be left opened to limit the need to touch the handles.All equipment including telephones, printers/photocopiers, keyboards, cash drawers, pens, computer screens, chairs etc. should be wiped with anti-bacterial wipes at the start of the shift and at the end of the shift.Wash your hands often with soap and water for at least 20 seconds!Cover your cough or sneeze with a tissue or flexed elbowAvoid touching your face!Avoid close contact with people who are sick!Clean and disinfect frequently touched objects and surfaces that you are in contact with in the credit union and shared workspaces.Do not go to work if you are sick!We acknowledged the severity of this pandemic and the safety of our employees and members was paramount and will remain so. We continued to monitor the course of this situation and sent updates as the information became available.We reduced our opening times but maintained the staffing levels and business hours, which allowed the staff the opportunity to manage more business online or over the telephone. Our staff worked diligently behind the scenes tending to our member’s needs. The situation was very fluid and could have changed at any given time.Fortunately, we were able to determine and justify that the credit delivered essential services which allowed us to remain open and allow our staff who would be deemed as “Key Staff” to travel for work.So here we are, still surviving and serving our members. From a strategic point we decided to look at the opportunities which this situation had brought about. We had to make our journey for the members as easy and frictionless as possible. To date we have introduced new methods and hope to introduce more, to make our credit union the easy place to do business with.Where are we at?We have remained opened and have fixed operating hours.Monday, Tuesday, Thursday & Friday, the office is opened between 10am – 2pmStaff are all working from home on a Wednesday with a continued service.Members can pay in over the phone using their debit cards.Members can now apply online for a loan, no paper forms or proof of income.Online loan applications automatically trigger a link to our open banking.Approved loans are now sent electronically and are signed for using e signature.Loans can now be approved and paid out on the same day under certain circumstances.We have reduced the need for producing as many paper trails as possible internally.All contact information is visible and available on our website.What is in the pipeline?We will be changing our software provider to allow us to utilise many different tools and new technology.We expect our new provider to enable us to have faster, online applications, better communications and engagement, and easy-to-use online services to enhance the Member experience.Members to access our products and services online, and on any device 24/7. This includes online sign-up and application processes, pre-populated and authorised loans, and end-to-end loan fulfilment.A communications platform that intelligently monitors our data and allows us to send professional communications.This and much more.Hopefully, this will all be in place by the end of this year, but not forgetting that this is as well as how we currently do our business and not instead of.All that is left for me to say, that whilst the past year has been very challenging, it has been very rewarding and enlightening. I would like to say a special thanks to my staff and in particular Eileen who stepped up to the mark and took over a completely operational role whilst I continued to work from home on the strategic development of the credit union.And to the team, Anton McLean, Catherine Moran, Susan Caldwell, Claire peace and Margaret Ronald without whom we would not be here.To the Board of Directors for managing to cope with virtual Board Meetings and still being here.Guest SpeakerSLCU CEO: Dermot O’NeillSome words from special guest Dermot O’Neill, CEO of the Scottish League of Credit Unions.Credit Union personnelindependent Auditor Report Financial StatementCastlemilk Credit Union Ltd 30 September 2020 External Auditors Report Overall Clean audit report on page 4 & 5. We can confirm that there are no matters that we are required to bring to the attention to the members at the AGM from the results of our audit testing and review. The Credit Union complies with both their own rules and those laid down by the Bank of England through the PRA and the FCA. Financials It has been an unusual year for the credit union with 6 months of the financial year during the pandemic however, the credit union has continued to serve it members and remain financial stable. Generally, this year credit unions have seen the wrong type of growth, with loans falling and share continuing to rise as member’s needs and spending has changed significantly. Castlemilk CU is similar to many credit unions this year with loans to members decreasing while share growth has increased. This is a change from the results in 2019. This has resulted in the loan %age to overall assets to fall. For 2020 the %age fell from 51% in 2019 to 40%, as the loan book fell by around ?304k (12%) with members saving an additional ?367k (8%). This resulted in the credit union’s bank balances rising by nearly ?761k (34%) this year and at 30 September the bank balances stood at nearly ?2.97m. In terms of the capital asset ratio which is the PRA’s main indicator of the health of the credit union, the ratio rose to 7.2% from 4.4%. The credit union remains above the PRA minimum of 5% at the year-end for the size of credit union. This rise was greatly assisted by receipt of ?125,000 subordinated loan from the Scottish government as well as other grants. Income and Expenditure (Summary page 7, detailed 19 & 20) In terms of the Revenue Account for the year, total income has rose to ?502k up ?99k. Main variances include loan interest up ?27k, grants up ?77k. All other income is consistent with 2019. Overall costs this year mainly similar to 2019, total costs up ?43k with the main changes: Wages up ?8k, computer maintenance up ?10k, insurance up ?8k, impaired losses recovered expenses down ?5k. Bad debts and provisioning showed a net increase of ?22k this year. This left the credit union with a small surplus after tax for the financial year of ?52,894 which compared to 2019 represents a rise of ?55k Sharles Audit Ltd income & expenditure accountleft48979100financial statementLoans & Sharescenter54295500financial statementbalance sheetfinancial statementcenter416220Appointment of Auditor 2021 AGM proposal: Re-appoint Sharles Chartered Accountants as Credit Union auditor.Membership Committee Report General Manager: Elizabeth CampbellLast year we introduced the use of Smartsearch, this is an Anti-Money Laundering (AML) and Know your customer (KYC) verification service. This is for identity validation for the prevention of fraud and/or AML and KYC requirements.When a member joins it is in their best interest to provide us with as much information as possible to pass this verification process. We will no longer be required to retain any personal identity information.The numbers of members joining this year is down on last year with 103 compared to 125. We are hoping to have the “apply for membership” online up and running soon.A Credit Union is a financial co-operative which provides savings, loans, and a range of services to its members. It is owned and controlled by the members.Each member has one vote and volunteer directors are elected from the membership, by the membership.Credit Unions are owned by the people who use their services, and not by external shareholders or investors. So, the emphasis is always on providing the best service to members – not maximising profits.Credit Unions have a proven track record across the world. Presented at our AGM last year.left126431Presented 24/03/2021-2368556375left169003153 adult members as of 30th September 2020.July is when annual maintenance is carried out on inactive accounts.left20574000401 junior members as of 30th September 2020.Credit Committee Report Loans Officer: Catherine MoranCatherine Moran (Loans Officer) would like to take this opportunity of thanking all those who have supported her during this financial year. This has been one of the most difficult years we have faced. The pandemic has created a very difficult situation for people on furlough, being made redundant or reduced hours. Immediately after we went into lock down, I found myself dealing with members who has previously borrowed and where now having to rearrange payment schedules and offering payment holidays. Loans can now be applied for online via our website. This system will also be upgraded nearer the end of the year. When using apply online, you will automatically receive an email to allow us access to open banking.The need for members to provide us with the most current information about their income & expenditure is no longer required if they have access to their banking via the internet or a mobile app. This allows us access open banking with consent from the member. We still use the same principles behind the matrix criterion that we used previously, however this has been scaled back because of the open banking information. To process loans efficiently & timeous, using open banking will be the way forward, although we will still be available to conduct a loan application as previous. To best serve the member, we are constantly reviewing how we do things although the member must also be responsible for their part in the process. A significant large number of loans granted are indeed secure which can be applied for at any anytime and can be processed at the front counter. Loans are now available for signing electronically and if you have an up-to-date email address please inform the staff or email directly.Failure to respond to the open banking request or where necessary, production of proof of income & expenditure, will result in the Loan Application being UNNECESSARILY DELAYED. Please help us to ensure a prompt response to your request by providing the relevant information with your application.center53315671466852005330right176810Credit Control Report Assistant Manager: Eileen McKeeAs a people centered organisation, Castlemilk Credit Union is willing to negotiate loan terms with members who have difficulty in making payments. We have and will continue to have an open-door policy with our members, as most problems can be resolved. Any member experiencing difficulties in meeting agreed repayments are encouraged to contact the Credit Union at the earliest possible stage. All member engagement is of course confidential and non-judgmental, and our door is always open to members.“The Credit Union firmly operates within a “here to help” philosophy. The objective is to amicably reach a solution which works for both parties”.All of us can experience difficult financial circumstances after entering commitments in good faith. We in the Credit Union are here to assist you in managing the change in your circumstances through credit control. All our procedures i.e., phone calls, emails, text messages, letters and visits, & social media are to encourage those in arrears to come and talk over their problems with a view to resolving them. This we will do very sympathetically. However, we will use all legal means to pursue members who ignore their commitments.We are currently using Stirling Park as our external recovery agency.It is our main responsibility to protect our members’ savings and to recover bad debt on behalf of the membership.Please contact us if you are having trouble and we can signpost you to a better alternative way of managing your debt.Long term and with the introduction of a new software system, we hope to engage more with our members in assisting them with better financial education based on shared information provided by the member during the lifetime of membership.In the first instance please contact:Margaret Ronald - m.ronald@castlemilkcu.co.ukInternal AuditOR REPORTInternal Auditor: Claire PeaceI am satisfied with all the tasks carried out during the past year. I would like to thank the Board of Directors and Staff for their assistance and patience, which enables me to carry out my duties.During the pandemic we have carried out a review of many of our processes and adapted them to take into consideration the spread of the virus. This has also created Efficiencies and improvements.We would also like to thank the volunteers whom we sadly had to let go due to the pandemic. Their contributions over the years have been valuable beyond estimation.Helen CameronAnne LairdMichael SolomonVolunteer Supervisor Volunteer SupervisorVolunteer Supervisornominations & Elections General manager: elizabeth campbellRatification is required for:Craig Mathiewho was co-opted onto the Board of Directors during the year.Nominations have been received for:Lin MasonPersonPositionElectedDue for re-electionAngus McIntoshDirector20202023Linda BarnwellDirector20182021Janet McLeanDirector20182021Craig MathieDirector20202023(vacancy)DirectorAny Other Business General Manager: elizabeth campbellClose of Meeting Director: Craig Mathie Once again, we would like to take this opportunity of thanking for joining us in our 31st AGM. We very much look forward to reporting to you next year.center6985133 ................
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