2015 annual report - Auto Workers Community Credit Union

Auto Workers Community Credit Union
2015 ANNUAL REPORT
Built by the community, For the community.
TABLE OF CONTENTS
AGENDA & RULES OF ORDER.................................. 4
VISION, MISSION AND VALUES. . .............................. 5
CHAIRS REPORT.................................................... 6
REPORT OF THE AUDIT COMMITTEE.. ..................... 7
INDEPENDENT AUDITOR’S REPORT........................ 9
2015 CONDENSED FINANCIAL STATEMENTS.......... 10
CREDIT COMMITTEE REPORT................................ 12
BOARD OF DIRECTORS . . ....................................... 13
COMMUNITY.......................................................14
LOCATIONS.. ........................................................ 15
AGENDA AND RULES OF ORDER FOR AGM 2016
AGENDA
­­ Call to Order
­­ Welcome & Introductions
­­ Minute of Silence for Deceased Members
­­ Approval of Minutes of the
78th Annual Meeting
Reporting
Reports presented at the meeting are for
information only and do not require a motion.
­­ Report of the Chair
­­ Report of the Audit Committee
Where a report contains a recommendation for
the AGM to consider, a motion to act on the
recommendation will be presented, seconded and
debated and voted on.
­­ Condensed Report of the External
Auditor
­­ Appointment of the External
Auditor Credit Committee Report
­­ Elections, Old Business, New Business
­­ Oath of Office Adjournment
RULES OF ORDER FOR AWCCU AGM
Debate
Speaker must approach a microphone and wait to
be recognized by the chair before speaking. Upon
recognition by the chair, the speaker will state his
or her name.
Only members of Auto Workers Community Credit
Union in good standing will be entitled to the floor.
No member may speak longer than two (2) minutes
at a time or more than twice on the same question
without permission from the assembly.
A member who wishes to speak a second time on
the same issue or ask more than one follow up
question at a time must wait until other members
who wish to speak on the issue for the for the first
time have spoken.
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Voting
Only a member in good standing under the rules of
Auto Workers Community Credit Union may vote,
and is entitled to one vote. Voting shall be by show
of hands. If the result is inconclusive, the chair may
appoint scrutineers to assist in the counting of the
votes.
Time Management
The chair may propose time limits on agenda
items and may propose that these time limits be
extended.
The meeting is scheduled to adjourn no later than
8:30PM. An extension of the meeting beyond this
time will require approval by the assembly by a 2/3
vote.
General Rules
The current edition of Roberts Rules of Order,
newly revised, shall govern the meeting in all cases
to which they are applicable and in which they are
not inconsistent with the rules of Auto Workers
Community Credit Union or with any applicable
legislation.
With the exception of motions that fit within the
jurisdiction of the AGM, motions from the floor are
generally considered advisory to the board. To be
considered, such motions must first be presented
to the chair in writing.
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AWCCU VISION
The vision of the Auto Workers Community Credit
Union is to be the primary Financial Institution for
our members by building lifelong relationships one
member at a time.
The mission of Auto Workers Community Credit
Union is to earn our members trust and confidence
by providing quality products and services in an
efficient and professional manner by motivated
employees who share our organizational success.
Our focus is to exceed our members’ expectations
in our commitment to their financial success while
operating in an ethical and financially sound matter.
The Corporate Values of the Auto Workers
Community Credit Union are the same today as
they were since our founding on April 2, 1938, the
well-being of our members, employee’s and the
communities we serve.
The Auto Workers Community Credit Union is a
financial service co-operative, therefore our values
are still centered on our belief in “People helping
People”.
www.awccu.com 5
AWCCU BOARD CHAIR REPORT 2015
2015 BOARD CHAIR ANNUAL REPORT
This year your credit union has experienced both the ups and downs, with
changing conditions in both our management team working leaner, as both
board and staff await the return of our CEO Beverly Hume. The Credit Union
staff in all our locations have been outstanding in providing the service and
generosity that you come to expect from our organization.
This year also marks our 79th year and we had some changes throughout the organization. We worked
with our COPE 343 employees during the bargaining process to find effective and responsible ways to
ease impacts of future pension liabilities, resulting in prosperity for both the workers and our members.
These factors have had impacts to our capital, however AWCCU continues to meet our required
regulatory capital ratios.
As we get started into 2016, our board is focused on providing a strong future for the credit union both in
Bowmanville and in Oshawa. Our mortgage lines are competitive, our term deposits are quite active, and
the board continues to deepen our knowledge and industry outlooks to provide a bright, strong future.
We still struggle as all credit unions do, in attracting more members into our branches, with your help, we
can reverse this trend and expand the membership, building on our successes of the past and equipping
ourselves for the road before us in the coming years.
Our board is very grateful
to our unionized and
management team’s
commitment and leadership
they show day in and day out
towards our organization. Our staff have always displayed and developed relationships with members,
and members remind us of this every day.
Our board is very grateful to our unionized and
management team’s commitment and leadership
they show day in and day out towards our organization.
We look forward to building a strong, vibrant credit union with our cooperative principals as we meet the
challenges we face this coming year. Through our heritage, compassion and strengths we will pursue both
economic viability and social responsibility. We look forward to strengthening our commitment to you.
John MacDonald
Chair
Board of Directors
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REPORT OF THE AUDIT COMMITTEE 2015
2015 AUDIT REPORT
The Audit/Risk Committee of Auto Workers Community Credit Union is a
committee of the Board of Directors and operates under Section 125 of the
Credit Unions and Caisse Populaires Act of 2007.
The committee is elected annually and consists of: Doug Sanders–Chair Person,
John MacDonald–Chair of the Board, Irene Babin, John Roberts and Adam King
(Advisor). Also in attendance at our monthly meetings are our Chief Executive Officer and Chief Financial
Officer.
This has been a very challenging year for all Managers & staff, they have stepped up to make tough
decisions for the future of the Credit Union. I personally want to say thank you. The increase Residential
Mortgage loans have risen from $223,447,985 to $288,644,910 in 2015. Personal loans have decreased
and Commercial Loans have increased with many safe guards in place to protect the Credit Union. The
amount of total member’s loans as of December 31, 2015 was $322,646,133 in 2014, $259,863,197.
The Committee’s Terms of Reference are defined by the duties of the Audit/Risk Committee specified in
the Regulations Credit Union Caisse Populaires Act and our Ontario Government Regulators. Based upon
our duties the Committee is pleased to report the following activities for 2015.
­­ Reviewed the monthly Internal Financial Statements of the Credit Union and the associated notes
and schedule monitoring the results of compliance with the International Financial Reporting
Standards (IFRS), capital reserve requirements, liquidity and interest rate risk requirements as
outlined by the Credit Union Caisse Populaire Act, Regulations and our Government Regulators.
­­ The Committee held eleven (11) regular meetings during the year; the Committee also met
quarterly with the internal auditor to discuss audit findings and recommendations as well as
reviewing all material internal control issues. The committee reviewed management’s response to
all internal audit recommendations.
­­ Reviewed all of the Policies and Procedures and controls of the Credit Union which relate to
legislative compliance with a particular focus on Credit Management, ERM Risks, Investments,
Interest Rate Risk Management, Liquidity Management, Corporate Governance, Conflict of
Interest and Capital Management as these Policies are specified in the Act or by the Deposit
Insurance Corporation of Ontario (DICO).
­­ The Committee reviewed and understands the status and quality of our commercial loan portfolio
as we moved to a more security based approach.
www.awccu.com 7
REPORT OF THE AUDIT COMMITTEE 2015 cont…
­­ The Committee served as the principle communication link between the External Auditor and the
Board of Directors and, in particular, reviewed the terms of engagement, the scope of the annual
audit, the Auditors Management Letter and the Credit Union’s Financial Statements. In addition,
we hosted a meeting with the whole committee and our External Auditor, at which the Board of
Directors were present to review the year-end Financial Statements.
­­ Enterprise Risk Management (ERM) was a focus by both the Audit Committee and Management
and how ERM would integrate into the management organization processes. The committee
focused on the top 24 risks as identified by the board and management. Discussions throughout
the year were impactful in reducing and eliminating many of the risks to ensure the continued
success of credit union.
Based on its findings, the Audit/Risk Committee reports and makes recommendations to the Board of
Directors with respect to the matters outlined above regarding; policy, internal controls, legal actions,
compliance with the Credit Union Caisse Populaires Act and Regulations, and DICO’s By-Law #5. The
committee follows up on all issues ensuring all of our recommendations are implemented.
The Audit Committee is
pleased to report to the
Membership that all aspects
of the Committee’s annual
mandate have been achieved
and that all significant
recommendations of the
Committee have either
been implemented or are in
the process of being implemented. There are no matters that the Audit Committee believes should be
reported to the Membership and there are no issues that are required to be disclosed pursuant to the
Credit Union Caisse Populaires Act or the Regulations. The Committee is pleased with the co-operation
from Management and both External and Internal Auditors in completing all of the required activities in
an efficient timeframe during the 2015 fiscal year.
The Audit Committee is pleased to report to the
Membership that all aspects of the Committee’s
annual mandate have been achieved and that all
significant recommendations of the Committee
have either been implemented or are in the process
of being implemented.
Respectfully Submitted,
Doug Sanders
Irene Babin
John Roberts
John MacDonald
Adam King (Advisor)
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CREDIT COMMITTEE REPORT 2015
CREDIT STATISTICS FROM JANUARY 1ST, 2015- DECEMBER 31ST, 2015
NUMBERS ARE ALL IN MILLIONS
(with the exception of LOC it is thousands)
TOTAL REJECTED REQUESTS
CANCELLED
FUNDED
$32.4
$139.6
$151.5
BREAKDOWN FOR FUNDED ARE
LOANS
BRIDGE
LOC
MERITLINES
MORTGAGES
TOTAL
TOTAL OF ALL
CREDIT REQUESTS
$1.8
$2.2
$632
$11.3
$135.5
$151.5
$323,564,677.00
The Credit Committee meets with management twice a year at which time we review loans that
have been charged off; all within the recommended guidelines of our policies. The Committee is proud
to report this was another great year in the recovery of charge-offs; a testament yet again to the hard
work and diligent efforts of the staff in this department.
Collections was able to recoup a total amount of $102,285.00. Our hats off to the department for their
concerted effort & success! The Credit Committee is pleased to report to the membership our duties
have been fulfilled as required under the Act; we have reviewed established policies, monitored guidelines
and systems to ensure credit, investment and structural risks are at acceptable levels.
On behalf of the Credit Committee, I would like to thank them for their dedication and thank the staff
for the quality service they continuously provide to our membership.
Co-operatively submitted,
Terri Rice, Chairperson
John Roberts
Adriana Grande
John MacDonald
Doug Sanders
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AWCCU BOARD OF DIRECTORS
DOUG SANDERS............................................... 2019
JOHN MACDONALD. . ........................................ 2018
JOHN ROBERTS................................................ 2018
IRENE BABIN.....................................................2017
TERRI RICE........................................................2017
www.awccu.com 13
AWCCU ‐IN THE COMMUNITY
AWCCU Financial was involved in our community with staff getting in on the fun! Our members & staff were
instrumental in ensuring that many families had a wonderful Christmas this year. AWCCU became a pipeline partner
by donating to the Community Innovation Lab- Neet Youth Incubator and staff had the opportunity to be panel
participants in a Pitch Competition. We love hearing from you! Email information@awccu.com for community suggestions!
below
SALVATION ARMY
ANGEL TREE
AWCCU families bring
Christmas to the
Community.
above
CANADA DAY 2015
Staff of AWCCU tower over
Canada Day!
right
Community Innovation Lab
–Our Entrepreneurial Youth
AWCCU assists in building
Durham Youth Entrepreneurs'
businesses of tomorrow…
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www.awccu.com
AWCCU ‐IN THE COMMUNITY
below
AWCCU staff having a good
time at a SPARTAN RACE!
left
Celebrating AWCCU Member
Albert Bracey's 100 Birtday!
Left & Below
SUNRISE GROUP BBQ
Every year AWCCU and Sunrise Youth group get together for a
BBQ, this year, like the past, was a successful event with everyone
partaking in the fundraising and food. Sunrise Youth Group benefits
young people with special needs get an opportunity to participate in
activities most young people take for granted. Thank you SYG!
www.awccu.com 15
AWCCU FINANCIAL
BRANCH LOCATIONS
Main Branch Oshawa
Address
322 King Street West L1H7L1
Phone
905-728-5187 or Toll-free 1-800-2688771
Fax
905-728-8727 (main floor)
905-728-9725 (loan dept.)
905-728-4441 (main floor)
Bowmanville Branch
Address
221 King Street East L1C1P7
Phone
905-728-5187 or Toll-free 1-800-2688771
Fax
905-623-4821
BUILT BY THE COMMUNITY, FOR THE COMMUNITY.
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www.awccu.com
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DID YOU KNOW?
AWCCU has many convenient channels to help you conduct your banking needs.
AWCCU’s free ATMs have increased
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AWCCU has partnered with The Exchange
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thousands of ATMs across Canada! AWCCU
is removing ATMs outside branches effective
June 2016. Please use any of the alternatives
listed to conveniently access your AWCCU
account. Visit our FAQ page to learn more
www.awccu.com/abmfaq
322 King Street West, Oshawa | 221 King Street East, Bowmanville
MOBILE APP easy and secure way to
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FREE 24/7. Download our app today!
DEPOSIT ANYWHERE take a picture
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ONLINE BANKING secure, user
friendly website www.awccu.com
CASH BACK available in most stores
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18
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ARE YOU?
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AUTO WORKERS COMMUNITY CREDIT UNION
AWCCU App now available for download.
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MAIN BRANCH OSHAWA
322 King Street West, Oshawa L1H7L1
BOWMANVILLE BRANCH
221 King Street East, Bowmanville L1C1P7