Annual Report - Reddy Kilowatt Credit Union

Reddy Kilowatt Credit Union Limited
59th Annual General Meeting
Annual Report
as at December 31, 2014
Table of Contents
Mission. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Report of the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . .
4-5
Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Report of the General Manager/Treasurer. . . . . . . . . . . . . . . . . . . . .
7-8
Financial Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9-10
Statement of Comprehensive Income. . . . . . . . . . . . . . . . . . . . . . . . . 11
Statement of Financial Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Report of the Lending Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Report of the Governance Committee . . . . . . . . . . . . . . . . . . . . . . . . 14
Report of the Audit Committee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Report of the Nominations Committee. . . . . . . . . . . . . . . . . . . . . . . . 16
Our New Building/Official Opening . . . . . . . . . . . . . . . . . . . . . . . . 17-18
Credit Union Deposit Protection (CUDGC). . . . . . . . . . . . . . . . . . . . . 19
Investing In Our Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Community Initiatives/Involvement . . . . . . . . . . . . . . . . . . . . . . . . . . 21
Credential Financial Strategies Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Products and Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Organization for 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Volunteers 1956-2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
2
Reddy Kilowatt Credit Union
Mission
Reddy Kilowatt Credit Union Limited
is a financial cooperative committed to providing
a full range of competitive financial products,
services, and financial guidance for our members
to enable them to meet their financial goals.
Exterior Reddy Kilowatt Credit Union, Topsail Road
Annual Report – 2014
3
Report of the Board Of Directors
It is my pleasure and duty to present the Report of the
Board to Members at this 59th Annual General Meeting
of Reddy Kilowatt Credit Union.
between CUDGC and your Board. The results of these
audits again confirm that the governance and financial
performance of Reddy Kilowatt is sound.
In 2014, Reddy Kilowatt continued its journey of growth
and progress. We have achieved or exceeded the targets
of our 2014 Business Plan and Budget. There are many
factors contributing to this success. It is a result of a
fantastic team comprised of your Board providing strategic
direction, the General Manager and her Management
team providing operational leadership and a dedicated
Staff. The loyalty of Members and use of Reddy Kilowatt
by Members, as their financial centre of choice, is another
contributing factor for Reddy’s success – past, present &
future. You, the Members, are the owners and the reason
why we exist. We are also fortunate to have operated in
a time of high consumer confidence and spending in a
fairly robust economy in 2014. Financial information for
the year will be presented in the reports of our General
Manager and external Auditors.
The Board continues to use Committees, chaired by
a Director, as an effective tool for governance. We
acknowledge the diligent work of these Committees in
guiding your Credit Union and helping the Board to fulfill
its governance responsibilities. A report on the Board
and Committee meetings, and the attendance record of
individual Directors, is included elsewhere in this Annual
Report.
Corporate Governance
As an elected Board, sound and effective corporate
governance remains a priority for Directors. Directors
continue to upgrade their knowledge. They remain current
in the Credit Union system by completing courses offered
by the system education provider CuSource and other
educational organizations and by attending seminars and
conferences at regional, national, and international levels
within the system.
We recognize and appreciate the continued support
of our regulator, the Credit Union Deposit Guarantee
Corporation (CUDGC) with their policy of reimbursing
credit unions 50% of course fees associated with training
for Directors through CuSource. CUDGC also continues
to support the annual NL Director Conference, thus
allowing Directors to network with others in the provincial
and regional Credit Union system, to access educational
courses and presentations on financial matters and the
economy and to be apprised of system information. The
CUDGC Board and Credit Union Chairs continue to meet
annually for discussion and updates on the NL system.
Good governance and sound business practices require us
to perform annual external and internal audits. Biannually
we are also audited by CUDGC. The favourable results
of the CUDGC audit conducted in the last quarter of
2013 and reported to Reddy in January 2014 were part
of the discussions in a biannual Board on Board meeting
4
New Building
Last year we reported on the progress of construction
of our building at Topsail Road, Mount Pearl. The Board
is pleased and proud to report, as many of you already
know, construction was completed in 2014. We moved
from our location at Newfoundland Power, Duffy Place,
to the new building in August 2014 and held our official
opening during the International Cooperatives Week in
October. This is a spectacular landmark building of which
all should be very proud. If you have not viewed it yet
please do drop by!
Our strategy in moving forward will be on realistic cost
containment in the immediate term and a long-term
strategy of focused member growth, enhanced product
and service offerings and continued service excellence.
With the opening of our new building, Reddy Kilowatt
is positioned as a professional, member-focused financial
institution. We are ready for new growth and anticipate a
very bright future.
“We have achieved or exceeded
the targets of our 2014 Business
Plan and Budget.”
The Board extends its gratitude and thanks to
Newfoundland Power for the space afforded us at Duffy
Place, and other locations, and for its tremendous support
over the years.
Atlantic Central
As a financial central and trade association, Atlantic Central
(AC) provides services and products to most credit unions
in Atlantic Canada to help them succeed. AC is presently,
Reddy Kilowatt Credit Union
in collaboration with its Credit Union members, working
on changes and evolutions of the regional system to
better prepare Credit Unions for the future.
Your Board and its Directors continue to be engaged in
this process by attending and participating in the Annual
General Meeting, the Fall Conference and information
webinars of AC. Your Chair is also a member of the Credit
Union Chairs Association of Atlantic Credit Unions (CUCA)
and, again, serves as Chair of CUCA.
Newfoundland-Labrador Federation of Cooperatives
The Newfoundland-Labrador Federation of Cooperatives
(NLFC) is the trade association of non-financial
cooperatives in the province. We are pleased to announce
an initiative of Credit Unions and NLFC to have credit
unions (financial cooperatives) become members of the
NLFC. A resolution proposing changes to the By-Laws
of NLFC, to review membership criteria allowing credit
unions to become full members, was passed unanimously
at the 65th AGM of the Federation in September 2014.
It is expected the revised criteria and By-Laws will be
presented for approval at the next AGM in 2015. This
will bring all cooperatives, in the province, into one
organization and provide an opportunity for all to work
together for the benefit of cooperative members and
citizens of the province.
Community Investment and Social Responsibility
As in previous years, Reddy Kilowatt continues to sponsor,
support, and participate in community organizations,
initiatives and charities, as listed in this Annual Report. We
are also a contributor to the Kids Eat Smart Foundation as
a Bronze Partner, in both volunteer time and funds.
Youth Representative Colin Rose finished his term on
the Board in mid-2014 upon graduation from Memorial
University. He is now pursuing a career as an Engineer in
Alberta. The Board thanks Colin and presented him with
a gift for his service prior to his departure.
The Board has since appointed another Youth Rep, James
Goodridge, who as a former employee of Deloitte, is no
stranger to credit unions. He is now an employee of Fortis
Inc. Welcome aboard James!
Our Thanks
I extend my appreciation to Directors, Committee
Members, and Employees for their contribution to
another successful year. Thanks and appreciation again
to Members for your continued loyalty and patronage.
Looking Forward
The coming year poses some challenges due to changes
in the economy as a result of the drop in oil prices and the
downward change in the Bank of Canada interest rate.
Your Board remains confident that, with your support,
Reddy Kilowatt will have a successful year in 2015. Our
team is up to the task!
Respectfully submitted,
Robert G. Dicks, President
We are proud to invest in our province’s youth by
awarding two scholarships to students entering and/or
continuing post-secondary studies and by having a Youth
Representative on the Board.
The scholarship winners are noted elsewhere in this
Annual Report. Congratulations and best wishes to the
recipients!
The responsibilities of the Youth Committee include
presenting ideas and recommendations regarding youth
business and involvement, actively participating in youth
community events as well as any other duties assigned
by the Board. By engaging young people and seeking
out new ideas in the youth market, the Youth Committee
serves as a link between the Board of Directors and the
youth.
Annual Report – 2014
Robert Dicks,
President of the Board, at the Official opening of
Reddy Kilowatt’s building, October 2014
5
Board of Directors – 2014
Back (L-R): Robert Pike, Glenn Samms, Colin Rose, Greg Murphy
Middle (L-R): Michelle Ward, Dana Pope, Robert Dicks, Gail Tucker, Peggy Mercer (Recording Secretary)
Front (L-R): Carl Bishop, Andrea Avery, Sean Budgell
Board and Committee Meetings – Attendance Summary For 2014
Board/Committee
Member
6
Board
(5 Meetings)
Audit
(2 Meetings)
Governance
(2 Meetings)
Human Resources
(3 Meetings)
Executive
(3 Meetings)
Avery, Andrea
5/5
-
-
3/3
-
Bishop, Carl
5/5
-
2/2
-
-
Budgell, Sean
5/5
2/2
-
-
-
Dicks, Robert
4/5
-
2/2
3/3
3/3
Murphy, Greg
5/5
2/2
2/2
-
-
Pike, Robert
5/5
-
-
3/3
3/3
Pope, Dana
5/5
2/2
-
-
-
Samms, Glenn
5/5
-
2/2
3/3
3/3
Tucker, Gail
3/5
1/2
-
-
-
Ward, Michelle
5/5
2/2
2/2
3/3
3/3
Rose, Colin (Youth Rep)
2/3 (Jan-May)
-
-
-
-
Goodridge, James (Youth Rep)
1/1 (Oct-Dec)
-
-
-
-
Reddy Kilowatt Credit Union
Report of the General Manager/Treasurer
This has been a pivotal year for Reddy Kilowatt Credit
Union and it is my pleasure to present the Report of the
General Manager/Treasurer for 2014.
Reddy Kilowatt continues to achieve favorable results
despite an increasingly competitive market and the low
interest rate environment that has existed for the past
several years. Our income before taxes and rebates was
$374,188 (2013 $593,179). We are pleased with this
outcome given we have experienced significant increases
in expenses, kept service charges at or below market
prices and were able to continue to pay above market
rates to members for their investments. We are especially
proud that our new state-of-the-art building is mortgagefree and are pleased to be in a position to recommend
rebates of $200,000 this year.
Reddy Kilowatt ended the year with on-book assets of
$60.5 million; up 8.7 percent or $5 million over 2013.
Our portfolio for lending products grew by 12%, ($5.1
million) and members’ deposits grew by 9.3% ($4.9
million). We have been entrusted with, and now manage
on behalf of our members, a combined lending and
deposit portfolio in excess of $106 million. In addition
to our on-balance sheet growth, we hold approximately
$20 million in mortgages with our mortgage partner,
League Savings and Mortgage (LSM). Excerpts from
our financial statements are included in this report. The
financial reports were audited by Deloitte LLP who issued
their unmodified opinion dated February 25, 2015. The
complete audited statements and notes are included in
your meeting materials package and are also available on
our website or by contacting our office.
Membership in Reddy Kilowatt continues to grow. We
welcomed 142 new members in 2014 bringing our total
to 2,147. We remain committed to our goal of attracting
young families to our membership and are pleased to
report that the average age of our new 2014 members
continues to trend younger, with over 50% of them
under 35 years of age.
Conceivably, the biggest change of 2014 was the opening
of our new building in a well-travelled area on Topsail
Road. With the move to our new highly-visible home,
comes the ability to become more known in the open
marketplace. In fact, almost half of the new accounts
opened in 2014 were opened in the last quarter of the
year, after we moved.
Annual Report – 2014
Thank you to our many partners especially Newfoundland
Power on which our credit union has relied for almost
60 years. We value this long-standing relationship and
look forward to seeing it flourish even further in the years
ahead.
Our commitment to partnerships, and the belief that they
strengthen our business outcomes, remains strong. We
continue to focus on providing the best possible service
for our members and increasing income opportunities
by availing of partners’ services including CUMIS, LSM,
CUETS, Johnson, and Credential. As always, we promote
the benefits of cooperation between credit unions in our
region in an effort to maximize access and benefits for all
Reddy Kilowatt members. Further to this thinking, 2014
saw us enter a cost-share relationship with EasternEdge
Credit Union to hire a Marketing & Communications
Officer who is responsible for increasing promotion and
marketing efforts of both credit unions. This venture is
proving to be very successful and we are pleased to have
Rhonda Goodridge as part of our team.
Our community is at the heart of Reddy Kilowatt Credit
Union and, in 2014, we continued to provide support for
many worthwhile causes and organizations. A complete
listing of the organizations supported by Reddy Kilowatt
in 2014 can be found in this Annual Report.
“Reddy Kilowatt is known to be
a great place to work. Our team
is happy and strongly committed
to providing top-notch member
service”.
Reddy Kilowatt continues to invest in youth and youth
initiatives and we were very pleased to award 2014
scholarships to Tyler Slade and Sarah Manning. We offer
our congratulations to these outstanding individuals and
wish them every success in their chosen fields of study.
Additionally, in May, Ashley Warren represented Reddy
Kilowatt and our youth at the 2014 Canadian Conference
for Credit Unions by attending the Credit Union Nexgen
Leadership Intensive in Charlottetown, PE.
7
Report of the General Manager/Treasurer
(cont.)
Our Board of Directors remains a valuable source of
insight and leadership. You are dedicated, committed,
and devoted to the members of Reddy Kilowatt and I
remain truly grateful for your guidance and support.
Reddy Kilowatt is known to be a great place to work.
Our team is happy and strongly committed to providing
top-notch member service. We enjoy our jobs and work
hard on your behalf and have a lot of fun while doing it.
During 2014, besides the marketing position previously
mentioned, we welcomed three new employees to our
team – Jennifer Piercey, Jared Amaral and Pam Hillyer.
Also in 2014, we said goodbye to Rosalind Piercey as she
accepted a promotion with another credit union. Though
sorry to see Rosalind leave, we are happy she remains
within the credit union system and wish her much success.
Also two employees were recognized and received awards
for years of service within the credit union system: Peggy
Mercer, 10 years; and Ashley Warren, 5 years. We offer
our congratulations and recognition on the achievement
of these milestones. Also congratulations are extended to
Ashley Warren who, in December 2014, became a Fellow
of the Credit Union Institute of Canada. Employees are
encouraged to pursue educational opportunities and we,
currently, have several employees availing of credit unionspecific courses.
We wish to reiterate our strong commitment to closely
monitoring expenses and continually seeking ways to
become more efficient while exploring opportunities for
prudent and well managed growth. We are well positioned
to continue providing competitive financial services in a
sustainable and profitable manner. We confidently boast
that we have a proven record of excellent member service
and ask you, as our best marketers, for your continued
assistance in helping us grow, by referring family, friends
and colleagues. Next year, we celebrate 60 years since
Reddy Kilowatt Credit Union was incorporated. Thank
you for your continued loyalty and we look forward to
serving you in the future.
Robert Dicks and Michelle Ward presenting Brenda Holden
with service award, 25 years
Robert Dicks and Michelle Ward presenting Sharon Bradley
with service award, 15 years
Respectfully submitted,
Michelle Ward, General Manager
Robert Dicks and Michelle Ward presenting Sheila Smith
with service award, 10 years
8
Reddy Kilowatt Credit Union
Financial Trends
Assets
$70,000,000.00 $60,000,000.00 $50,000,000.00 $40,000,000.00 Other Assets Property, PPlant
Property, lant aand
nd Equipment
Equiptment Cash & Cash Equivalents $30,000,000.00 Investments Mortgages $20,000,000.00 Loans $10,000,000.00 $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Deposits
$70,000,000.00 $60,000,000.00 $50,000,000.00 Savings Accounts Membership Shares $40,000,000.00 Tax Free Savings Accts Chequing Accts $30,000,000.00 RRIFs $20,000,000.00 Demand Deposits RRSPs $10,000,000.00 Term Deposits $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Annual Report – 2014
9
Financial Trends
Loans and Mortgages
$50,000,000.00 $45,000,000.00 $40,000,000.00 $35,000,000.00 $30,000,000.00 $25,000,000.00 Mortgages Loans $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 $0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 10
Reddy Kilowatt Credit Union
Financial Statement
Reddy
Credit Union
UnionLimited
Limited
Reddy Kilowatt
Kilowatt Credit
Statement
Income
andand
Retained
Earnings
StatementofofComprehensive
Comprehensive
Income
Retained
Earnings
Year
December31,
31,
2014
Yearended
ended December
2014
(CDN
dollars)
(CDN dollars)
2014
$
2013
$
2,636,049
157,322
2,793,371
2,445,760
271,672
2,717,432
Cost of funds
Interest on members' deposits (Note 5)
Net financial margin
1,339,240
1,454,131
1,238,686
1,478,746
Other income
Commissions
Other
Financial margin and other income
387,690
293,019
2,134,840
379,881
244,672
2,103,299
Operating expenses
Personnel
General business (Note 12)
Members' security
Total operating expenses
760,575
678,608
321,469
1,760,652
743,271
554,421
212,428
1,510,120
374,188
593,179
Financial revenue
Members' loans and mortgages (Note 4)
Investment income
Earnings before income taxes
Income taxes (Note 14)
Net comprehensive income for the year
Retained earnings, beginning of year
Dividends and patronage rebates (Note 11)
Retained earnings, end of year
Annual Report – 2014
374,188
2,512,546
(200,000)
2,686,734
42,621
550,558
2,261,988
(300,000)
2,512,546
11
Financial Statement
Reddy
CreditUnion
UnionLimited
Limited
Reddy Kilowatt
Kilowatt Credit
Statement
Position
StatementofofFinancial
Financial
Position
As
at December 31, 2014
As at December 31, 2014
(CDN
dollars)
(CDN dollars)
2014
2013
$
$
Assets
395,274
1,642,368
5,805,894
8,074,415
42,624
10,083
Loans and mortgages receivable (Note 8)
48,519,000
43,378,938
Property, plant and equipment (Note 10)
5,598,247
2,329,655
114,375
215,674
60,475,414
55,651,133
Accounts payable and accrued liabilities
289,180
487,353
Dividends and patronage refunds payable (Note 11)
200,000
300,000
57,299,500
52,351,234
57,788,680
53,138,587
2,686,734
60,475,414
2,512,546
55,651,133
Cash and cash equivalents (Note 6)
Investments (Note 7)
Income taxes receivable
Other assets
Liabilities
Members’ deposits (Note 11)
Members' equity
Retained earnings
Approved on behalf of the Board:
______________________________ Director
12
_______________
______________________________
Director
Reddy Kilowatt Credit Union
Report of the Lending Committee
All loans at Reddy Kilowatt Credit Union are approved
by the Board of Directors, Lending Committee, lending
staff or management . Directors are required to approve
any loan applications that are outside the established
lending policy . The Lending Committee is responsible
for approving loan applications for directors, committee
members, employees and their families .
All other loans are approved by lending staff or
management . In 2014, the Lending Committee met 24
times and approved 30 applications for an approximate
total of $802,814 .
During 2014, loans advanced were over $18 .2 million .
The following is a summary of all Personal Loans, Lines
of Credit and Mortgage Loan activity, by purpose, for the
period January 1 to December 31, 2014 .
PERSONAL LOANS / MORTGAGES
Purpose
Vehicle Purchase
Amount
126
3,393,400
27
5,916,216
136
3,055,597
Other
46
546,007
Recreation/Vacation
29
415,598
5
149,949
29
1,479,736
9
150,243
68
1,380,020
473
16,486,766
Mortgage
Consolidation Loans
Investment
Home Improvements
Refinanced - no new funds
Loan Line of Credit
Subtotal
Personal Lines of Credit
Total
1,730,350
18,217,116
I would like to thank the lending staff for their cooperation
and dedication over the past year . Their role in the lending
process is an important part of your Credit Union’s
continued success .
Respectfully Submitted on behalf of the Committee,
Personal Loans/
Mortgages 2014 Personal Loans / Mortgages 2014
Vehicle Purchase Mortgages Consolidation Loans Other Recreation/
Vacation Investment Home Improvements Re=inanced-­‐no new funds Loan Line of Credit Personal Lines of Credit Personal Loans /
Mortgages 2013 Personal Loans / Mortgages 2013
Vehicle Purchase Mortgages Consolidation Loans Other Recreation/
Vacation Investment Home Improvements Re=inanced-­‐no new funds Loan Line of Credit Personal Lines of Credit Sean Budgell, Chairperson
Annual Report – 2014
13
Report of the Governance Committee
The Board of Directors of Reddy Kilowatt Credit Union
(RKCU) is ultimately responsible for stewardship of the
credit union. The Chair of the Board of Directors appoints
a Governance Committee, consisting of board members
to assist them with that responsibility, with the following
specific duties:
• To ensure that the Board of Directors acts within
the specified guidelines relating to stewardship,
independence, effectiveness, assessment, new
director recruitment and orientation, size of
the Board and its committees and director
remuneration;
• To ensure that the By-Laws of the Credit Union
are complete and consistent with The Credit
Union Act and Regulations and to ensure that the
Directors and Credit Union operate within these
By-Laws;
• To ensure that all policies are in accordance with
the By-Laws and are in the best interest of the
Credit Union and its Members;
• To ensure that the Credit Union and its Board
act within the standards of sound business and
financial practices as set out by the Credit Union
Deposit Guarantee Corporation;
• To ensure that there is a viable succession plan for
both the Board of Directors and the Credit Union’s
Management; and
• To ensure that there is an assessment process
in place for the Board, Management and the
Credit Union overall, and that the assessments are
conducted on a regular basis.
The Governance Committee was appointed in May 2014
and consists of Robert Dicks, Greg Murphy, Glenn Samms,
and Chairperson Carl Bishop. Michelle Ward attends our
meetings as a resource person. Over the past year we
have held five meetings via teleconference or in person.
Significant accomplishments of the Committee for the
past year include:
• Review of all RKCU committees’ Terms of
Reference.
• Organize the nominations process for new Board
of Directors.
• Review and recommend new policies to the Board
that are consistent with the standards of sound
business and financial practices.
• Review board remuneration and make
recommendations to the Membership.
• Review and recommend changes to RKCU’s ByLaws.
• Recommend appointment of a new Youth
Representative to the Board, James Goodridge.
• Review of RKCU’s Capital Adequacy requirements.
This report is respectively submitted on behalf of our
Governance Committee by,
Carl Bishop, Chairperson
Carl Bishop receiving his accreditation certificate from Robert Dicks
at AGM, March 2014
14
Reddy Kilowatt Credit Union
Report of the Audit Committee
The Audit Committee provides a knowledgeable, wellinformed communications bridge between the Board
of Directors, the various auditors and our regulators.
Our role is to assist the Board of Directors in fulfilling its
supervisory tasks.
The responsibilities of the Audit Committee are set out
in the Credit Union Act and Regulations. In addition,
the Audit Committee is responsible for other duties as
assigned by the Board of Directors.
The Audit Committee has the overall responsibility for
monitoring:
• The integrity of the financial statements;
• Internal accounting and financial controls;
• The external and internal auditors’ qualifications
and independence;
• The performance of the external and internal
auditor; and
• Compliance with legal and regulatory
requirements.
During 2014, the following were the key activities of the
Audit Committee:
• Reviewed quarterly and annual financial
statements;
• Met with the external auditor, Deloitte, to discuss
the results of the 2014 audit;
Annual Report – 2014
• Met with the internal auditor, Brian Scammell, to
discuss the results of the 2014 audit;
• Ensured the independence of the external and
internal auditors;
• Ensured Financial Transactions Reports Analysis
Center of Canada’s Report (FINTRAC) Biennial
Review completed as required;
• Monitored compliance with respect to legal and
regulatory requirements as prescribed in the
Credit Union Act and Regulations;
• Reviewed various management reports including
the Asset Liability Management Report and
Delinquency Report, as well as received reports
on Remittances to Canada Revenue Agency and
CUMIS pension remittances.
It is the opinion of the Audit Committee that in 2014, your
Credit Union operated in a reasonable and responsible
manner and in the best interest of, you, the Members.
Respectfully submitted on behalf of the Committee,
Dana Pope, Chairperson
15
Report of the Nominations Committee
The Nominations Committee of Reddy Kilowatt
Credit Union (RKCU) is responsible for identifying and
encouraging qualified members of our credit union to fill
vacant positions on our Board of Directors.
Since opening our bond, the potential for market growth
is endless and with that, comes new opportunities for
leadership in our strategic development. The Board
recognizes that future Directors of our organization will
come from the general population who are members of
RKCU. We must continue to ensure that their skill sets
match the strategic needs of the organization.
The role of Director is becoming increasingly demanding
in a world of changing economic factors that influence
how we direct our future. Candidates must possess a
wide range of talents and knowledge to assist the Board
with recognizing significant risks to the organization.
They must be diligent in ensuring adequate controls are
in place to ensure operational efficiency while providing
support to the management team. Communications
with all stakeholders is a vital component of director
responsibilities in today’s environment.
James Goodridge,
Incoming Youth Representative
The Board of RKCU recognizes the opportunity, and
challenges, of securing continued growth for our
organization. Although we believe opening our bond
has created much more potential for growth than ever in
our history, we have also identified the need for attracting
youth to our membership. As a result, we created a Youth
Representative position on our board. We believe the
youth representative, and the committee he/she will
Chair, will provide important consumer behaviour insight
to help direct our marketing to that key demographic.
Our Youth Representative participates in all Board
activities and will help steer our strategic plan for growth.
On January, 23, 2015, we issued a call for nominations
for three vacating Director positions currently occupied
by Andrea Avery, Greg Murphy, and Dana Pope. All three
incumbents offered themselves for re-election and no
other nominations were received by the deadline date of
February 6, 2015. As a result, the incumbents have been
elected by acclamation.
Respectfully submitted on behalf of the Nominations
Committee,
Carl Bishop, Chairperson
16
Reddy Kilowatt Credit Union
Our New Building
2014 marked the opening of Reddy Kilowatt Credit
Union’s environmentally friendly and efficient new home
at 885 Topsail Road, Mount Pearl.
Directors, managers, and employees were all smiles (with
maybe a few happy tears!) when our long-awaited move
came to fruition on August 18, 2014. After years of happily
sharing space with NF Power, we are pleased to finally be
in a position to offer members additional services such as
a drive-through ATM and privacy for their meetings and
transactions. Located in a very high-traffic area in Mount
Pearl, we look forward to the increased opportunity to
welcome new members under our open bond.
- High velocity electric hand dryers as opposed to
paper towel dispensers.
- No Added Urea Formaldehyde (NAUF) panel
materials in the woodwork or finish carpentry.
- High recycled content in things like gypsum board,
ceiling tile and carpeting.
The Reddy Kilowatt Credit Union building was officially
opened on Wednesday, October 15, 2014.
Designed by LAT49 Architecture Inc. (formerly Sheppard
Case Architects Inc.), the design Architect was Jim
Case with Jeremy Bryant as the project Architect. The
construction was administered by Jeremy in partnership
with Terry and Jim Power from J & T Construction
Limited. The building committee was comprised of Gail
Tucker (Chair), Robert Dicks, Robert Pike, Glenn Samms,
and Michelle Ward.
Besides being visually appealing, this building has
substance! It was designed with efficiency and the
environment in mind. Reddy Kilowatt Credit Union is
proud of its many environmentally friendly features such
as:
- A geothermal system which provides heat at onethird the energy cost of a traditional electrical heat
system. This particular system also has the ability
to move heat within the building from rooms-incooling to rooms-requiring-heat which improves
efficiency even further.
Reddy Kilowatt Credit Union, Topsail Road
- A heat recovery ventilation system that recovers
60% of the heat contained in the building exhaust
air and pre-heats the required fresh air.
- Low-flow faucets and fixtures for water
conservation.
- Occupancy based interior lighting control.
Michelle Ward,
General Manager,
in her office.
- Exterior lighting controlled with an astronomic
time clock.
- High performance fluorescent and LED light
sources.
Annual Report – 2014
Brenda Holden,
Manager, Operations & Compliance,
in her office.
17
OFFICIAL OPENING
18
Reddy Kilowatt Credit Union
Credit Union Deposit Protection
Did you know that Credit Union Members’ deposits are
insured up to $250,000 per account type which is more
coverage than what is available at chartered banks? Even
better, it isn’t necessary to apply - insurance coverage is
automatic and free .
Depositors should ensure that each joint and trust deposit
is designated as such and the names and address of each
participant is identified . For trust deposits, if there is
more than one beneficiary, the portion owned by each
beneficiary must be recorded and updated annually .
The Credit Union Deposit Guarantee Corporation
(CUDGC) is a Provincial Crown Corporation that was
established in the late 1980’s to insure deposits of Credit
Union Members in Newfoundland and Labrador .
Superior Deposit Insurance – just one more reason why it
pays to be a Reddy Kilowatt Credit Union member . For
more information visit cudgcnl .com .
There are some exceptions noted below . However, to
demonstrate the great significance of the insurance, the
following table represents the CUDGC NL coverage for
credit union members, Mary and Bob, including the trust
account for their daughter, Krista .
G
UA
RAN
O
TEE C
R
EDIT UNION
CR
Balance
Insured
D E P O SIT
DEPOSIT
PROTECTION
R AT
IO N
Depositor
PO
D E P O SIT
DEPOSIT
PROTECTION
R AT
IO N
EDIT UNION
CR
Mary
Chequing, Savings, Term Deposits
Mutual Funds
RRSPs
TFSAs
251,000 .00
5,000 .00
252,000 .00
20,000 .00
Bob
Chequing, Term Deposits
US Dollar Savings
RRSP
RRIF
53,000 .00
15,000 .00
100,000 .00
255,000 .00
53,000 .00
100,000 .00
250,000 .00
Bob, In Trust for Krista
Term Deposit
255,000 .00
250,000 .00
255,000 .00
250,000 .00
250,000 .00
RRAN E CO
TE
250,000 .00
20,000 .00
PO
G
UA
Mary and Bob (Joint)
Total Coverage for Mary and Bob
1,423,000.00
Exceptions: Mutual funds, foreign currency deposits, term deposits with a maturity date more than
five years from date of deposits, bonds and debentures issued by chartered banks, governments,
and corporations, treasury bills, and investments in mortgages and stocks .
Annual Report – 2014
19
Investing In Our Future
Reddy Kilowatt Credit Union recognizes the contribution of our community builders of tomorrow. We aim to encourage
qualities of good citizenship and co-operation through our scholarship program. We are proud to support our youth
and recognize their achievements.
Congratulations to our worthy 2014 Scholarship recipients, Tyler Slade and Sarah Manning. The Directors, Managers,
and Employees of Reddy Kilowatt Credit Union wish you the very best in all of your future endeavours!
Do you know someone who will be graduating high school or pursuing post secondary education this year? They could
be one of the next recipients of the Reddy Kilowatt Credit Union scholarships. Watch for eligibility requirements and
other details on www.reddyk.net. Applications will be due by August 31, 2015.
Tyler Slade
Carbonear Collegiate, Class of 2014
Memorial University
20
Sarah Manning
Queen Elizabeth High School, Class of 2014
Memorial University
Reddy Kilowatt Credit Union
Community Initiatives/Involvement
Reddy Kilowatt Credit Union remains committed to the
community in which we operate. As such, we were very
pleased to provide support for the following worthwhile
organizations in 2014.
Athletic Groups
• Mount Pearl Blades Minor Hockey
• North East Minor Hockey Association
• Goulds Hoopsters Basketball Team
• Newfoundland and Labrador Bantam Boys Fast
Pitch Team
Health & Wellness
• Dr. H. Bliss Murphy Cancer Care Foundation
• Daffodil Place
• Young Adult Cancer Canada – Shave for the Brave
• Prostate Cancer Fight Foundation - Motorcycle
Ride for Dad
• Heart and Stroke Foundation
• Children’s Wish Foundation
• Annual Central Northeast Health Foundation’s
Regatta
• Health Care Foundation Dialysis Unit
• Canadian Mental Health Association
• Canadian Breast Cancer Society
• Power of Life
Youth & Schools
• Kids Eat Smart Foundation
• Holy Heart of Mary High School
Other Worthwhile Causes
• Heavenly Creatures Bark In The Park
Walk-A-Thon
• Portugal Cove - St Philip’s Regatta
• NLCU Charitable Foundation Annual Rod
Benson Memorial Golf Tournament
• Terry Fox Foundation
• Drugs & Addictions Awareness Campaign
Community Support
• Choices for Youth
• Big Brothers Big Sisters of Eastern Newfoundland
• Seniors Resource Centre
• Newfoundland and Labrador Foster Families
• Community Food Sharing Association
• Stella’s Circle
• Salvation Army Newfoundland & Labrador
• The Gathering Place
Membership Associations/Business Engagement
• Mount Pearl/Paradise Chamber of Commerce
• St. John’s Board of Trade
• NF Power Employee Association & Retiree Groups
NLCU Rod Benson Memorial Golf Tournament L-R Sean
Budgell, Paddy Bragg, Brenda Holden, Keith Holden
Annual Report – 2014
21
Credential Financial Strategies Inc.
Reddy Kilowatt Credit Union is constantly seeking ways
to add quality products, services and convenience to
members’ lives. In partnership with EasternEdge, Public
Service and Community Credit Unions, we are pleased
to continue to offer the services of Credential Financial
Strategies to our Members.
Wanda Howlett is your Credential Financial Strategies
Wealth Consultant and is available to assist members
of Reddy Kilowatt with their insurance and retirement
planning needs. Wanda is an Investment Specialist with
12 years experience in the insurance industry. She offers a
number of investment products as well as retirement and
insurance planning options to help safeguard your future
and, most importantly, your family. Wanda will work with
you at no charge to create a personal financial blueprint
to help achieve your monetary objectives.
In 2014, Wanda successfully completed her Certified
Financial Planner 1 exams and we congratulate her
for being a recipient of the Million Dollar Round Table
(MDRT). MDRT is recognized internationally as the
standard of excellence in the life insurance and financial
services business. As such, the MDRT continues to be
the benchmark qualification for all financial advisors
worldwide. Wanda also leads the way for the most net
sales for the Credential Atlantic Group in 2014.
Wanda Howlett
Credential Financial Strategies Wealth Consultant
Reddy Kilowatt is pleased to continue offering this service
at no charge to members and Wanda can now be reached
at:
Reddy Kilowatt Credit Union
885 Topsail Road, PO Box 126
Mount Pearl, NL A1N 2C2
709-739-1080
709-691-9423
whowlett@credential.com
*Mutual funds are offered through Credential Asset Management Inc. Credential Financial Strategies Inc. is a member
company under Credential Financial Inc., offering financial planning, life insurance and investments to members of
credit unions and their communities. Credential® is a registered mark of Credential Financial Inc. and is used under
license.
22
Reddy Kilowatt Credit Union
Products and Services
YOUR MONEY
Chequing Services
• Personal Chequing
• Business Chequing
• Student Chequing
• US Chequing
Savings
• High Interest Savings Accounts
• Power Plus Savings
• Youth Savings
• Monthly Savings Plan
Electronic Services
• MemberDirect™Integrated - Online Banking
• TeleService™
• Mobile Web Banking
• Interac®
• Interac® direct payment
• Interac® PLUS network
• Interac® e-Transfer
• E-Statements
• ding-free® (Surcharge-Free ATMs)
• Drive-through ATM
• IntelliResponse
• Cross-border Debit
YOUR FINANCING
Loans and Mortgages
• Personal Loans
• Mortgage Loans
• Home equity loans
• Personal Line of Credit
• Student Loans
• RRSP and Investment Loans
• RRSP Line of Credit
YOUR FUTURE
Investment Products and Services
• Term Deposits
• RRSP/RRIF/RESP
• Mutual Funds
• Trust Accounts
• Index Linked Deposits
• On-line Trading
• Retirement Planning
• Tax-Free Savings Accounts
• Incentive Shares
Insurance
• Travel Insurance
• Term Life Insurance
• Credit Life & Disability Insurance
• Critical Illness Insurance
• Mortgage Insurance
• Home/Auto Group Insurance
Financial Management
• Wealth Management Services
• Trust Services
• Financial Counselling
Additional Services
• Travellers’ Cheques
• Foreign Exchange
• Canadian/Foreign Money Orders
• Bill Payments
• Safety Deposit Box Rentals
• Legal Witnessing
Coming soon…
• iPhone and Android Apps (2015)
• Deposit Anywhere™ (2015)
Card Services
• Small & Medium Enterprise Merchant Card Services
• MasterCard® Credit Card
• MasterCard® Global Payment Card
• Choice Rewards™ Points Program
• Member Card™
• Debit Card Purchase Protection &
Extended Warranty Plan
Annual Report – 2014
23
Organization for 2014
Board of Directors
Robert Dicks, President
Robert Pike, Vice-President
Glenn Samms, Corporate Secretary
Michelle Ward, General Manager/Treasurer
Andrea Avery
Carl Bishop
Sean Budgell
Greg Murphy
Dana Pope
Gail Tucker
Colin Rose, Outgoing Youth Representative
James Goodridge, Incoming Youth Representative
Peggy Mercer, Recording Secretary
Employees
Human Resources Committee
Robert Pike, Chairperson
Robert Dicks
Andrea Avery
Glenn Samms
Michelle Ward, Resource
Governance Committee
Carl Bishop, Chairperson
Robert Dicks
Greg Murphy
Glenn Samms
Michelle Ward, Resource
Audit Committee
Michelle Ward, General Manager
Brenda Holden, Manager, Operations & Compliance
Peggy Mercer, Manager, Lending Services
Jared Amaral, Member Service Officer
Sharon Bradley, Member Service Officer
Lisa Bungay, Member Service Officer
Rhonda Goodridge, Mktg. & Comm. Officer
Pam Hillyer, Member Service Rep.
April Kelly-Barnes, Member Service Rep.
Suzanne Maher, Member Service Rep.
Ursula Maloney, Member Service Officer
David Mercer, Member Service Rep.
Jennifer Piercey, Member Service Officer
Tina Samson, Member Service Officer
Sheila Smith, Member Service Rep.
Ashley Warren, Accounting Admin. Officer
Dana Pope, Chairperson
Sean Budgell
Greg Murphy
Gail Tucker
Michelle Ward, Resource
Lending Committee
Sean Budgell, Chairperson
Youth Committee
Colin Rose , Outgoing Youth Chairperson
James Goodridge, Incoming Youth Chairperson
Back L-R: Jared Amaral, Pam Hillyer, Suzanne Maher, Sheila Smith, Jennifer Piercey, David Mercer, Michelle Ward,
Front L-R: Ursula Maloney, Sharon Bradley, Ashley Warren, April Kelly-Barnes, Lisa Bungay, Brenda Holden,
Missing from photo: Peggy Mercer, Rhonda Goodridge, Tina Samson
24
Reddy Kilowatt Credit Union
Volunteers 1956-2014
Abbott, Raymond
Adams, Charlie
Adams, George
Adams, Gerry
Ainsworth, Scott
Ainsworth, Verne
Alteen, Peter
Anstey, Gerry
Antle, Austin
Avery, Andrea
Ball, Anne
Banfield, Ester
Barnes, Diane
Barrett, Kelvin
Batstone, Dale
Benger, G.
Bennett, Sharon
Beresford, Kevin
Birmingham, Llewellyn
Birmingham, Tony
Bishop, Carl
Bishop, Chari
Bishop, Noel
Bonnell, Aubrey
Bragg, Don
Brennan, Rose
Briffett, Kirk
Broderick, Don
Bruce, Christie
Budgell, Sean
Butt, Darryl
Butt, Wayne
Canning, Tom
Carpenter, T.
Casey, Jack
Chafe, Carl
Chafe, Doug
Chancey, Roy
Chaulk, Frank
Christie, Bruce
Clark, Gwen
Clark, Jeff
Clark, Ron
Clarke, Blair
Clarke, D.
Colford, Robert
Collins, Peter
Collins, R.
Conway, Richard
Cook, Jeffrey
Annual Report – 2014
Coombs, Kevin
Corbett, J
Crane, Ronald
Crewe, Carol Anne
Critch, Theresa
Cumby, Eric
Curtis, Gerard
DaSilva, Tony
Dawe, Ron
Delahunty, Brian
Dicks, Robert
Dodd, R.
Duke, Nora
Dymond, B.
Earles, Joseph
Emberly, Ches
Evans, Barbara
Evans, John
Fitzgerald, Megan
Flynn, Noel
Follett, Doug
French, Frank
French, Rod
French, Ted
Gaye, Cavell
Gifford, Kingsley
Gladden, M.
Goodridge, Eileen
Goodridge, James
Green, Wayne
Greenland, Lewis
Griffin, Joe
Grouchy, Doug
Hall, Ewart
Hall, Fred
Halliday, Peter
Hancock, Karen
Hancock, Scott
Hann, Chesley
Hannaford, Pat
Hanrahan, John
Hapgood, A.
Harris, Darlene
Harvey, Gerard
Henderson, John
Henderson, Lorne
Hennessey, Clara
Henry, C.W.
Henry, Charles
Hoffe, Dennis
Howell, Baxter
Humby, Gary
Hunt, R.P.
Hynes, Hubert
Hynes, Remi
Ivany, Lawrence
Ivany, Lester
Jamieson, Alex
Janes, Elaina
Jardine, Mike
Joy, Anna
Keough, John
Keough, Robert
Kielley, J.S.
King, Les
King, R.
Knight, Alex
Knight, Steve
Kohout, Doug
Lane, Frank
Learning, Walter
Legge, Gerald
Lester, Crosbie
Ludlow, Earl
MacDonald, Stan
Mahar, Kevin
Mandeville, George
Manning, Elizabeth
Marshall, Stan
Martin, James
McLeod, Neil
Meaney, Jennifer
Meyers, Maureen
Mowbray, Lynn
Moores, Henley
Mouland, Lillian
Murdoch, Robert
Murphy, Dick
Murphy, Greg
Murphy, John
Murphy, Robert
Nickerson, Bruce
Nurse, Richard
O’Brien, Maurice
O’Leary, Sean
O’Neill, Ronald
O’Reilly, Albert E
Peters, Brendan
Piercey, William
Pike, Robert
Pittman, Fred
Pollett, Graham
Poole, Carol Ann
Pope, Dana
Pope, Mike
Press, Fred
Roberts, Derek
Rockwood, S.
Rodway, Wayne
Rose, Colin
Rowe, Linda
Russell, Don
Ryan, Aiden
Ryan, Bernie
Ryan, Patrick
Samms, Glenn
Schofield, Ray
Sheppard, Graham
Simms, Lloyd
Slaney, Bill
Snow, Boyd
Stack, Marilyn
Stewart, Cyril
Styles, Albert
Taylor, Leah
Templeton, David
Thompson, Lorne
Tilley, Barry
Toner, Kathy
Trask, William
Tremblett, Don
Tucker, Gail
Tulk, Jeff
Tulk, Zeta
Underhay, Robert
Vincent, Blair
Vincent, Peter
Walsh, Brian
Walsh, Gerry
Walsh, Ken
Warr, Kevin
Warren, Elroy
White, Cluney
White, Wade
Whittle, Brian
Whittle, Maureen
Williams, Beverly
25
Did you know?
The
bank of choice for many
businesses is no bank at all.
Credit unions ranked #1 in serving small and medium-sized enterprises (SME), according to a
survey by the Canadian Federation of Independent Business (CFIB). Credit unions have been
ranked #1 by CFIB members in four of the last five triennial surveys.
Celebrating 10 Years of Excellence
e
For the 10th consecutive year, Canadians ranked credit unions #1 in overall Customer Service
Excellence among all Canadian financial institutions in the 2014 Ipsos® Best Banking
Awards program.*
Best Places to Work
Six Atlantic credit unions are proud to be included as Best Places to Work
by Progress Magazine.
focusedonme.ca
*The Ipsos 2014 Best Banking Awards are based on quarterly Customer Service Index (CSI) survey results.
Sample size for the total 2014 CSI program year ended August 2014 was 45,428 completed surveys yielding 68,738 financial institution ratings.
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Johnson Inc. (“Johnson”) is a licensed insurance intermediary. Home and auto policies are primarily underwritten by Unifund Assurance Company (“Unifund”). Unifund and Johnson share
common ownership. Auto insurance not available in BC, SK or MB. Alternate plan available in QC. Eligibility requirements, limitations, exclusions or additional costs may apply, and/or may vary
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1
Notes