Annual Report 2021

President's Message

From the Annual Report 2021, by Mr. Mark A. Ferrette, President. Summarised faithfully; the full message appears in the PDF.

Addressed to fellow co-operators, the President's message is built around the theme of gratitude — “the quality of being thankful; readiness to show appreciation for and to return kindness” — and its power to open the way for holistic blessing. He urges members to make the necessary sacrifices now, to save while the time is right, and to find the right portfolio for their goals, reminding them that “the cheese is constantly moving” and that adapting to change is essential to financial well-being. He closes with an expression of heartfelt thanks: to the Board, Credit Committee and Supervisory Committee for their time and dedication; to Management and Staff for making every member interaction memorable; to WESCU's stakeholders and partners; and above all to the membership, praying God's blessing over each of them and over WESCU.

Board of Directors Report

For the year ended 31 December 2021. Transcribed from the Annual Report 2021.

1.0 Introduction

The Board of Directors is pleased to present to the general membership its report on the affairs of the Western United Credit Union Co-operative Society Limited (WESCU) for the year ended Friday, December 31, 2021, for your thorough review and approval at this Annual General Meeting (AGM).

2.0 Composition of the Board 2021

The composition of the Board of Directors for the period under review comprised the directors listed in this report.

3.0 Executive Committee 2021

As mandated in Bye-Law 18d, at the inauguration meeting of the Board of Directors, the following persons were elected to serve as the Executive: Mr. Mark A. Ferrette, President; Ms. Sharon C. Hinds, Treasurer; Ms. Dixie Ann J. De Souza, Secretary; Ms. Helen Ann-Marie King, Assistant Secretary.

4.0 Meetings of the Board of Directors 2021

The Board of Directors held 12 Statutory Board Meetings throughout the year 2021 in the discharge of its functions to manage the affairs of the Credit Union.

Mr. Donald Duane O'Connor, Director, was suspended by the Supervisory Committee in the month of August 2020 until the year 2021, and therefore, could no longer serve on the Board of Directors. Mr. Donald Duane O'Connor, Suspended Director, was replaced by Mr. Deonecio Betancourt Salazar, 2nd Substitute. Mr. Nikoli Jean-Paul Edwards was asked to take a leave of absence from April 2021.

5.0 Outgoing Members

The term of office for the following members came to an end.

6.0 Membership

6.1 During the year 2021, eighteen (18) persons were admitted to membership.

6.2 The Board of Directors wishes to extend its condolences to the relatives and friends of members who died in 2021.

7.0 Financial Highlights

The Financial Review of the Treasurer, Ms. Sharon C. Hinds, appears in the Treasurer's Report section below.

8.0 Affiliated Organizations

The Board would like to recognize Ms. Lorraine Bobb, Ms. Nathalie Phillip and Mrs. Allison Manodath, Cooperative Division, Ministry of Labour, Small & Micro Enterprise Development, for their invaluable support and guidance during the period under review.

9.0 Training

The Co-operative is dedicated to fighting financial crime and therefore equipped its Board of Directors, Management, Staff members and Statutory Committee members with the knowledge to detect and prevent criminal activities through training in the Fundamentals of Anti Money Laundering and Counter Terrorist Financing with UWI-ROYTEC. The Board of Directors, Management, Staff members and Committee members attended an intense virtual four (4) day course on Money Laundering and Counter-Terrorism Financing. Additionally, staff members acting in the positions of Compliance Officer and Alternate Compliance Officer were sent on an Advanced AML/CFT Programme.

As a Co-operative, it is our duty to safeguard our membership from any, and all, inherent danger as best as humanly possible. It is also WESCU's fundamental sense of duty to holistically create avenues whereby we would protect our members from financial, mental, spiritual, and emotional poverty through education and empowerment. As a consequence, members were invited to attend a seminar entitled “Being innovative with your Small Business during COVID-19” hosted by the Cipriani College of Labour and Co-operative Studies in July 2021.

During the year 2021, WESCU sent ten (10) members to an online conference themed “Caribbean Co-operative Identity: Inspiring our Community for Beyond”, where speakers from all over the western hemisphere, including Brazil, Canada and the Caribbean, expounded on the significant contributions to the co-operative community and by extension the wider community at large.

10.0 Webinars

Throughout another challenging but strategically stable year 2021, WESCU lived its Co-operative responsibility by hosting several life changing Webinars with the intention of honouring its socioeconomic responsibility, by empowering its members to change their lives by the way they think, speak, listen and act towards themselves, their friends and family, and the wider community.

These Webinars were organized to teach individuals to live the lives that they were created to live, and thereby achieve holistic greatness. They challenged persons to make a conscious decision to lead lives filled with purpose, be it at home, work, church, or within the wider community. They are posted on all of our social media platforms and website. All of these life changing Webinars sought to awaken our four (4) human intelligences or capacities: Mental Intelligence (IQ), Physical Intelligence (PQ), Emotional Intelligence (EQ), and Spiritual Intelligence (SQ).

11.0 COVID-19 Measures

The destructive effects of COVID-19 continued to manifest into 2021 in the lives of people around the world and locally in the lives of membership. WESCU implemented the COVID-19 Humanitarian Fund from 2020, whereby those members who had been adversely affected by the COVID-19 pandemic could access funding for groceries and medical supplies. Initiatives continued in the year 2021 and included the timely distribution of grocery items to the staff and to members.

In some cases, members were still not able to honour their loan premiums and therefore the Credit Union continued the loan deferral facility, where members could apply for a loan deferral for either a three (3) month or six (6) month period or until their financial situation improved. In spite of the COVID-19 pandemic, the business of the organization had to endure, and the Credit Union continued to implement COVID-19 office security measures within the WESCU building to ensure that staff worked in a COVID-19 free environment.

12.0 Corruption and Delinquency Eradication

The Co-operative is committed to rooting out corruption from the membership and from the staff body and embarked on bringing all perpetrators to justice. Staff members who were caught in corrupt practices were removed from the organization and were subjected to the judiciary system. Significant efforts were made to recover the debt owed by members whose loans became delinquent and to improve the delinquency portfolio.

13.0 Staff Changes and Losses

The Board of Directors wishes to thank Management and the Staff members for their dedication and commitment to service to the membership, especially during the COVID-19 pandemic. In general, the Board of Directors decided to part ways with those staff members who were not in agreement with the vision and the mission of the Credit Union.

It is with the deepest sense of sadness that we announce that during the month of December 2021 the organization lost one of its finest. Ms. Naila Valere, Credit Officer, succumbed to COVID-19. Ms. Valere contributed immensely to the turnaround of the organization, not only through her performance in the carrying out of her duties but also by her charm, wit, and inspirational and unifying style, which brought a great influence of joy, encouragement, and unity among staff.

The Board of Directors welcomes Mr. Kade Elliot, who joined the staff of WESCU on a temporary basis on September 6th, 2021.

14.0 Policies and Improvement in Operations

The following policies were developed and finalized by the organization's legal team and approved by the Board of Directors: Code of Conduct and Ethics Policy; Confidentiality Policy; Laptop Policy; Top Up Loan Policy. In addition, WESCU's revised Compliance Programme and Manual was completed.

WESCU conducted its first virtual Annual General Meeting for 2018, 2019 and 2020 using associated technology for online voting. As a result of improved IT systems and system upgrades, the online banking facility continues to be successful, allowing members to conduct financial business with the Credit Union online, and loan interviews can be conducted virtually instead of in person. Most of the forms used by the Credit Union were revised, digitized and transformed into online editable forms that can be completed and uploaded into the in-house IT systems.

Significant measures were taken to bring the WESCU building into OSHA compliance. The Board of Directors partnered with the Trinidad and Tobago Solid Waste Management Company Limited (SWMCOL) to assist WESCU with its green initiative. WESCU's Membership Relief Fund was established to demonstrate that the organization cares for its membership and the wider community.

15.0 Renovations of Apartment Buildings

The Credit Union cares about its tenants and is committed to ensuring that they live in a secure and safe environment. For this reason significant renovations were made to the apartment building in the Cocorite area, so much so that the tenants expressed their satisfaction with the renovations and their feeling of safety given the new security construction measures.

16.0 Marketing Strategy

The first televised advertisement was displayed to the public on Thursday 29th July 2021. Advertisements highlighting members giving testimonies as to their experiences as part of the WESCU family were on the media airwaves from July 2021 to the end of August 2021, and these were very well received by the public.

For Credit Union month, WESCU was featured on TV6's Morning Edition programme. Additionally, in 2021 members were treated to the usual treats as well as gift cards. A documentary on WESCU's history, products and services is on its website under 'About Us', as well as on YouTube, Facebook, Twitter and Instagram, and is displayed in the Credit Union's lobby.

17.0 Conclusion

The Board of Directors would like to take the opportunity to thank Committee members, Management and staff for their dedicated service over the last year. We acknowledge and thank the members for their invaluable loyalty and we look forward to serving you in the coming year.

Yours Co-operatively,
Dixie Ann J. De Souza
Secretary of the Board of Directors

Management and Staff 2021

Mr. Noman Barton, Manager; Mr. Reagan Reece, Accountant; Mr. Gerard Gulston, IT Operations Support Officer; Mrs. Odia Thomas-Bascombe, Operations Manager; Mrs. Andrea Mc Queen-Mentor, Executive Secretary; Ms. Michelle N. Blackman, Administrative Assistant; Ms. Shivonne A. Rajkumar, Accounts Payable Clerk; Mr. Kade Elliot, Teller; Mr. Jaden Durham, Data Entry Clerk; Mrs. Sonia Isaac-Malchan, Senior Loans Officer; Mrs. Nadine Smith, Loans Officer; Mr. Von Archibald, Recoveries Officer; Mrs. Phyllis Chandler, Membership Care Representative; Ms. Akila Foster, Membership Care Representative; Mrs. Frederica Mc Knight, Custodian.

Credit Committee Report

For the year ended 31 December 2021. Submitted by Ms. Tricia-Ann Mitchell, Secretary, Credit Committee.

The Credit Committee is charged with managing the organization's loan portfolio — approving loan applications, ratifying office-approved loans, approving loan restructures for delinquent loans, and reviewing delinquent accounts. During the reporting period a total of 46 meetings were convened for these purposes.

The elected members who served were: Odith O'Connor-Gomez (Chairperson), Tricia-Ann Mitchell (Secretary), Kathyann Rodriguez, Listra Nedd and Anthony Superville. At the 15th Annual General Meeting held on 29 December 2021 the following were duly elected for the new term: Odith O'Connor-Gomez, Tricia-Ann Mitchell, Kathyann Rodriguez, Listra Nedd and Anthony Superville, with Vilma Goodman (1st substitute) and Herbert Mendez-Stewart (2nd substitute).

For a second year running the Credit Union faced challenges from the ongoing COVID-19 pandemic, with 2021 almost a replication of 2020. After the Easter vacation the country experienced a significant spike in infections and was again placed into a full lockdown of non-essential businesses, resulting in further economic contraction. According to the Central Bank of Trinidad and Tobago, domestic economic activity continued to contract in the second quarter before a gradual, growth-supportive reopening in the third quarter; by the end of 2021 most sectors had resumed and the contraction slowed.

Loans granted — year on year

The number and value of loans granted declined against the prior year. A total of 414 loans were disbursed in 2021 (a decline of 143, or 26%), at a value of $6,997,455.15 (a decrease of about $416,150, or 6%). The decline is consistent with pandemic-era trends and economic contraction.

Leading categories of loans disbursed in 2021 (by value)

House Repairs / Improvements covered about one-third of the portfolio by value, while Covered Loans commanded the highest number of loans overall. Debt Consolidation loans also increased, which the Committee attributes to uncertainty over employment stability during the pandemic, as members opted to consolidate to better manage their finances.

The Committee advised members of a new initiative: a dedicated email address, creditcommittee@wescutrinidad.com, created on 16 December 2021 so members can raise concerns directly with the Credit Committee during the loan application or disbursement process, or if they need financial guidance maintaining their facilities. The Committee thanked the membership, Board, Supervisory and ad-hoc Committees, Management and Staff for their continued support.

Supervisory Committee Report

Year in review, January 2021 to December 2021. Submitted by the Supervisory Committee: Elizabeth Henry-Stewart (Chairperson), Althea Rocke (Secretary), Vilma Goodman (Member).

The main purpose of the Supervisory Committee (SC) is to monitor WESCU's operations, ensuring agreed policies and procedures are followed. On behalf of the members it assesses the effectiveness of operating controls and appraises the internal controls and governance — largely through internal audit checks (reviewing documentation and operating systems) and attendance at Statutory Board meetings to observe decision-making, as prescribed by the Co-operative Societies Act, WESCU's Bye-Laws and other relevant regulations.

Attendance at Board meetings

The SC confirmed that regular Statutory Board Meetings are held monthly. Its role at these meetings includes assuring that meetings are run to international standard practice, that the Credit Union is governed in accordance with its Bye-Laws, overseeing the election of senior officers, examining Board minutes, reviewing monthly financial statements, and ensuring meetings are timed to the Board's standard.

Duties, responsibilities and reviews

The Committee serves as an audit committee and facilitates a close working relationship between WESCU, its members, the Board of Directors and the Office of the Commissioner of Credit Unions. It ensures timely, accurate financial reporting and that practices safeguard member assets. Activities kept under systematic review during the year included: reviewing health and safety policies; examining and revising Human Resource practices; monitoring loans, loan delinquency and debt recovery; commencing a revision of WESCU's Bye-Laws; updating employees' severance benefits; compiling a compliance manual as mandated by law; cleaning and reconciling accounts for the period 2018 to present; reviewing Building Committee financial statements and repairs to the Cocorite apartments and monitoring the related tendering process; monitoring payroll posting, member onboarding, the loan-loss provision and the investment portfolio; ensuring compliance with COVID-19 protocols; monitoring loan-approval times; crafting an Occupational Safety, Health and Environmental Policy Manual; and monitoring the upgrade of building security. Each review indicated that applicable policies, procedures and protocols were followed.

Accomplishments and general remarks

The SC noted several accomplishments during the pandemic season, including the introduction of online banking, webinars on mental health and generational wealth, a St. Vincent and the Grenadines relief-fund grant for an adopted credit union affected by the volcanic eruption, a July COVID-19 food grant, more stringent internal security measures, the onboarding of TTDF members, and expanded advertising across media and social platforms. The SC commended the Board and Management for their flexibility, patience and determination in guiding the organization through the critical months toward a sustainable long-term future and a stronger cash position.

The SC also reported on the success of WESCU's first virtual AGM, held on 28 December 2021, and thanked Mr. Nigel Thomas (who coordinated the technical aspect and virtual voting) and WESCU's media personnel Mr. Trevlon Hall and Mr. Brian Johnson for making the virtual AGM and its recording a resounding success. The Committee welcomed its incoming members — Avana-Marie Honore (Chairperson), Barry Pierre (Secretary), Donovan Duncan (Member), Claudia Phillips (1st substitute) and Richard Patterson (2nd substitute) — and thanked the Board, Management, Credit Committee and staff.

Building and Maintenance Committee Report

Ad-hoc committee. Submitted by Mr. Michael J. Valere (Chairman) and Ms. Helen A. King (Secretary).

The Building and Maintenance Committee is charged with providing tenants and members a safe, healthy and comfortable environment, adhering to the laws of Trinidad and Tobago on Occupational Safety and Health (building codes). The report appraises the membership of repairs completed at the Cocorite Apartments (#174C Western Main Road, Cocorite), WESCU's Head Office (#40 Fitt Street, Woodbrook), and the Dundonald Street property (#11 Dundonald Street, Port of Spain). WESCU was able to address more than 90% of its tenants' concerns. The Committee comprised Mr. Mark A. Ferrette (Ex-Officio), Mr. Michael J. Valere (Chairman), Ms. Helen A. King (Secretary), and members Ms. Ann-Marie Francis-Charles, Mr. Deonecio Salazar and Mr. Norman Barton.

Cocorite

Various repairs were carried out to the exterior and to some apartment interiors, including replacement of broken water and waste vent pipes, additional leaks addressed, an internal bedroom door changed (Apt #7), and the front balcony to Apt #7 burglar-proofed. Existing fire extinguishers and the fire hose were serviced and additional extinguishers installed. Non-skid tiles were laid on the landing outside Apt #1 and Apt #3 at the rear (stairs to be completed in the first quarter of 2022). Apt #3 was totally refurbished — floor and ceiling tiles, bathroom retiled, internal doors and lights replaced, painted, electrical brought up to code (rewired, new panel box, cable), plumbing, and a new kitchen window. Yard work included power washing, cutting grass, sweeping and cleaning the main stairway.

Dundonald Street

Repairs began in September 2021. Roof works were done to both the back (old sheets replaced) and front (old flashing replaced). The front porch and kitchen were repaired (rotten flooring replaced) and the front porch wall repaired. Old carpet in the porch and corridor was replaced with commercial sheet vinyl, also used on the kitchen floor, and new kitchen cupboards, counter tops and backsplash were installed. Some painting was completed inside and out. An old AC window unit and ducting from the old central system were removed and openings blocked up; demolition of the rear AC platform was ongoing.

Fitt Street

Upgrade works included additional floor-to-ceiling storage cupboards in the IT Operations and Support office, installation of two security access doors (one to the upstairs offices, one to the Accounts Department), repair of capping moulding to partitions in the loans department, varnishing of moulding and handrails, and a mobile storage unit and shelves installed in the teller's cage. The Committee thanked its tenants and members for their patience, and commended the President and Board for their support.

Nomination Committee Report

Submitted by Mr. Mark A. Ferrette, Chairman of the Nomination Committee.

The Nomination Committee's role is to identify fit-and-proper individuals for the membership's consideration at the Annual General Meeting. Its selection took a layered approach: nominees were invited to offer themselves for servant leadership, advertisements were placed in all three newspapers, and notices were posted in the Credit Union's lobby, on Facebook, Instagram and the website. Nominees were thoroughly vetted in accordance with WESCU's Bye-Laws and were also scrutinised by the Trinidad and Tobago Fraud Squad to ensure there were no criminal charges against any candidate. All nominees must adhere to the laws of Trinidad and Tobago, WESCU's Bye-Laws and Code of Conduct, and remain in good financial standing; anyone found in breach is to be removed from their position.

Nominees — Board of Directors

Nominees — Credit Committee

Nominees — Supervisory Committee

The Committee thanked the Board, Management, Staff and the nominees for their commitment to good governance, and extended special thanks to the Co-operative Division for its support.

Treasurer's Report

Presented by Ms. Sharon C. Hinds, Treasurer, for the year ended 31 December 2021. All figures in Trinidad and Tobago dollars (TTD).

Auditor's Opinion

In accordance with the Co-operative Societies Act and as approved by the Membership at the last AGM, WESCU changed its Auditors to Bob Gopee and Associates, Chartered Accountants. In their Independent Report to the Membership, they stated: “In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Credit Union as at December 31, 2021 and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.” In other words, an Unqualified Opinion. I cannot overemphasize the importance of an Unqualified Opinion, as this is your assurance that the affairs of the Credit Union are being conducted in a satisfactory manner.

This year we are on schedule with the presentation of the Audited Financial Statements. These statements were made available on our website for your review some two weeks before the AGM date, a major improvement in that regard.

Overview of 2021

The year 2021 was another challenging year for everyone, as the novel COVID-19 virus continued its deadly rampage worldwide. Fortunately, vaccines were developed, and the Government of the Republic of Trinidad and Tobago was able to procure, at great expense, an adequate supply for the population. The inoculation of a substantial percentage of the population gave us measured protection and a welcome respite from the virus that allowed the Government to gradually reopen businesses, thereby stimulating economic activity.

While the uncertainty associated with job availability and stability, and the added costs of keeping the work environment COVID-19 free, still persists, our Credit Union was able to successfully navigate the prevailing difficult environment through the combined efforts of the Staff, the Management Team, Board and Committee Members and undoubtedly God's Grace. So much so that I am pleased to report that WESCU recorded an operating Surplus of TTD 268,898.00 and a Total Comprehensive Income of TTD 510,494.00. This excellent performance represents an increase of 106.04% and 150.82% respectively in 2021 over 2020.

Income and Expenses

There was an increase in excess of 25.00% in Income for the fiscal year ended 2021 over 2020. Management's diligent, astute and sustained management of the Delinquency Loans Portfolio resulted in a Members Loan Impairment recovery of 1.465M. Expenditure, though closely managed, increased by 21.87%, attributed mainly to COVID-19, legal and professional fees, training, website creation and maintenance, and the provision for terminal benefits expenses.

Investment Instruments

Further analysis of WESCU's income, and specifically its investment instruments, shows our investment portfolios performed superbly, recording increases in both returns and gains of 65.82% and 200.85% respectively in 2021 when compared to 2020.

Liquidity and Total Assets

WESCU's liquidity and cash balance remained stable, increasing by 1.66% in 2021 over 2020. The overall analysis of Total Assets shows an increase of 1.63% in 2021 compared to 2020.

Receivables, Payables and Liabilities

Accounts Receivable and Prepayments increased by 20.00% in 2021 over 2020. While a receivable is an asset, management will continue to monitor this closely to improve cashflow. Accounts payable were reduced by 12.69% in 2021 over 2020. Management is therefore controlling cashflows efficiently to service bills when they become due, thereby keeping payables to a minimum.

Loans to Members

There was a reduction of Loans to Members by 2.71% to $26,838,750.00. This decline, though understandable as it is directly correlated to the existing economic climate, is and will continue to be closely monitored by management.

Members' Deposits and Members' Shares

Members' Shares remained relatively stable, increasing by $239,521.00 (0.61%) to $39,280,448.00 in 2021, reflecting the confidence in and support of the Credit Union by members. Members' Deposits declined by an insignificant 0.04% in 2021 over 2020.

Conclusion

Members, the financial results for the year ended December 31, 2021, were exemplary given the circumstances. The surpluses and gains achieved are indeed very pleasing and gratifying. WESCU's performance demonstrates stability and, importantly, steady incremental growth. It shows what can be achieved with dedication, hard work and co-operation.

We, the Board and Committee Members, Management and Staff, will continue on our journey to take WESCU to the next level by our efforts and strategies to:

• Raise the profile, image and offerings of the Credit Union
• Improve the quality of loans written on the books
• Astutely manage the delinquency portfolio
• Maximize other sources of income
• Closely manage expenses
• Improve the quality of life of our Tenants, Staff and Members

Sincerely Yours,
Sharon Hinds
Treasurer

Budget Projections

From the Annual Report 2021. All figures in Trinidad and Tobago dollars (TTD); “-” denotes nil and figures in parentheses are negative.

Income

Expenditure — summary

Appropriation of Surplus

Personal Expenses

Board of Directors

Depreciation

Risk Coverage

Property

Administrative

Legal & Professional

Financials

Capital Expenditure

Resolutions

Resolution 1 — Appointment of Auditors

In accordance with Section 51 of the Co-operative Societies Act and Bye-Law 40(a), be it resolved that the firm Bob Gopee & Associates Chartered Accountants be appointed as Auditors of the Society for the financial year 31 December 2022 to 31 December 2023. The firm has practised for over fifty years, operates three offices (Port of Spain, Chaguanas and San Fernando), and its audit work includes credit unions, manufacturing and construction companies, retail chains, professional associations and public-interest entities.

Resolution 2 — Distribution of Surplus

Whereas the Credit Union realised a net surplus of $269,193.00 for the financial period ended 31 December 2021, be it resolved that a dividend of 0.50% be credited to members' shares on their average shareholdings for 2021.

Resolution 3 — Honoraria

Whereas the affairs were prudently managed by the Board of Directors, Supervisory Committee and Credit Committee, and the Society realised a net surplus of $269,193.00, be it resolved that an honorarium of $30,000.00 be divided among the Board of Directors and Statutory Committees.

Resolution 4 — Maximum Liability

Pursuant to Regulation 14 of the Co-operative Societies Act and Bye-Law 9, be it resolved that the Maximum Liability of Western United Credit Union Co-operative Society Limited be set at $4,500,000.00.