Annual Report 2022

President’s Message

From the Annual Report 2022, by Mr. Mark A. Ferrette, President. Summarised faithfully; the full message appears in the PDF.

The President’s 2022 message is centred on mental health and holistic well-being, under the theme “Your Mental Health Matters, so don’t be afraid to be vulnerable with those you trust. Speak to someone for your healing to progressively take place.” He encourages members to seek healing and support, and frames WESCU’s purpose around the mental, emotional, spiritual and financial well-being of its members, their families and the wider community. He closes with heartfelt thanks: to the Board, Credit Committee and Supervisory Committee; to Management and Staff for making every member interaction memorable; to WESCU’s stakeholders and partners; and above all to the members for their loyalty, trust and confidence — quoting Psalm 100:4–5.

Board of Directors Report

For the year ended 31 December 2022. Submitted by Ms. Dixie Ann J. De Souza, Secretary of the Board of Directors.

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 31 December 2022, mindful throughout of the holistic well-being of its members, their families and the wider community, and of the good governance and stewardship entrusted to it by the membership.

2.0 Composition of the Board 2022

The Board for the period under review comprised: Mr. Mark A. Ferrette (President), Mr. Deonecio Betancourt Salazar (Vice President), Ms. Dixie Ann J. De Souza (Secretary), Ms. Helen A. King (Assistant Secretary), Ms. Sharon C. Hinds (Treasurer), and directors Mr. Kwasi M. C. Thomas, Mr. Michael J. Valere, Mr. Michael J. T. Scipio, Ms. Ann-Marie Francis-Charles, Mrs. Ayana Leacock-Sarjeant, Mr. Sherman W. Subero, Mr. Nikoli Jean-Paul Edwards and Ms. Marcia Ann Stewart, with Mr. Kester Fraser (1st Substitute) and Ms. Joyce C. Lynch (2nd Substitute).

3.0 Executive Committee 2022

As mandated in Bye-Law 18d, at the inauguration meeting the following were elected to serve as the Executive: Mr. Mark A. Ferrette (President), Mr. Deonecio Betancourt Salazar (Vice President), Ms. Dixie Ann J. De Souza (Secretary), Ms. Helen Ann-Marie King (Assistant Secretary) and Ms. Sharon C. Hinds (Treasurer).

4.0 Meetings of the Board of Directors 2022

The Board held 12 Statutory Board Meetings throughout 2022 in the discharge of its functions to manage the activities of the Credit Union.

5.0 Outgoing Members

The term of office of the members noted in the report came to an end.

6.0 Membership

During 2022, twenty-two (22) persons were admitted to membership. The Board extends its condolences to the relatives and friends of members who died in 2022.

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 recognises Mr. Randy Deyal and Mrs. Allison Manodath of the Co-operative Division, Ministry of Labour, Small & Micro Enterprise Development, for their invaluable support and guidance during the period under review.

9.0 Training

As a learning institution, WESCU annually trains its Board, Statutory Committee members, Management and Staff in Anti Money Laundering and Counter Terrorist Financing, as mandated by law, to detect and prevent the organization from being used for money laundering and to protect its brand and reputation. During the period all parties attended either the fundamental or advanced programme — an intense five (5) day virtual course. In addition, Board members, Committee members, Management and employees were trained in using the Emortelle System, good credit analysis and reading the TransUnion report, attended a workshop entitled “Recognizing and Supporting a Troubled Employee”, and attended cybersecurity workshops to safeguard members’ financial and personal data.

10.0 Webinars and “An Evening with Your Board”

Throughout 2022 WESCU continued to host several life-changing webinars empowering members in their mental, emotional, social, physical, financial and spiritual well-being. Sessions during the year included “Wills & Trusts” (Parts 1 and 2) and “Domestic Violence Against Men” (Parts 1 and 2). The President also launched a new quarterly initiative, “An Evening with Your Board of Directors — You talk, We Listen, We Act where necessary,” held on 8 April, 29 July and 2 November 2022 (the November session doubling as a Potential Membership On-boarding Forum), giving members a direct forum to raise concerns and hear a review of the organization’s performance.

11.0 COVID-19 Measures

Although national COVID-19 measures were relaxed, the Credit Union continued its COVID-19 Humanitarian Fund (running since 2020) so members adversely affected could access funding for groceries and medical supplies, and continued the loan-deferral facility (three or six months, or until a member’s situation improved). COVID-19 office-security measures were maintained to keep staff safe.

12.0 Corruption and Delinquency Eradication

The Co-operative is committed to rooting out corruption; staff caught in corrupt practices were removed and subjected to the judiciary system. To reduce delinquency the Board improved lending criteria through intensive Credit Analysis training; engaged debt-collection agencies Debt Recovery and Administrative Services Limited (DR&ASL) and A. V. Knowles Limited (AVK); on-boarded SurePay so members can honour obligations at 35 locations nationwide (22 at Massy Stores); and continuously monitored the loan portfolio. The Board reminds members that delinquency reduction is everybody’s business.

13.0 Staff Changes and Losses

The Board thanks Management and Staff for their dedication, and parted ways with staff not aligned with the Credit Union’s vision and mission. It welcomed Mr. Jaden S. Durham, who joined on a temporary basis during the year.

14.0 Policies and Improvement in Operations

Policies developed and approved by the Board included WESCU’s Occupational Health, Safety & Environmental Policy, the Virtual Conferencing Policy (Amendment), the Anti-Money Laundering Policy, and the Dress Code and Grooming Policy, along with ICT & Marketing Committee reports. WESCU held its second virtual AGM using online voting; online banking and virtual loan interviews continued successfully; forms were digitised into editable online forms; the building was made more OSHA-compliant; social-media presence expanded (Facebook, Google, Twitter, TikTok, Instagram); and the Board continued partnering with SWMCOL on its green initiative. WESCU’s Membership Relief Fund continued to support members and communities.

15.0 Renovations of Apartment Buildings

Significant renovations continued at the Cocorite apartment building, with daily security patrols added; tenants expressed satisfaction with the works and their sense of safety.

16.0 Marketing Strategy

Televised advertisements and member testimonials continued across TV and social media; WESCU was featured on TV6’s Morning Edition for Credit Union month, members received treats and gift cards, and the documentary on WESCU’s history, products and services remained on the website (under ‘About Us’), YouTube, Facebook, Twitter, Instagram and in the lobby.

17.0 Conclusion

The Board thanks Committee members, Management and staff for their dedicated service, and the members for their loyalty, and looks forward to serving in the coming year.

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

Management and Staff 2022

Mr. Norman Barton, Manager; Mr. Reagan Reece, Accountant; Ms. Michelle N. Blackman, Administrative Assistant; Mrs. Odia Thomas-Bascombe, Risk Management Department; Mrs. Sonia Isaac-Malchan, Senior Loans Officer; Mr. Gerard Gulston, IT Operations / Support Officer; Ms. Shivonne A. Rajkumar, Accounts Clerk; Ms. Akila Foster, Membership Care Representative; Mr. Aaron D. Williams, Loans Officer; Mr. Jaden S. Durham, Data Entry Clerk / Teller; Mr. Kade K. Elliot, Courier; Ms. Frederica Mc Knight, Custodian.

Credit Committee Report

For the year ended 31 December 2022. Submitted by Ms. Tricia-Ann Mitchell, Secretary, Credit Committee.

The Credit Committee supervises and manages the organization’s loan portfolio — approving loan applications, ratifying office-approved loans, approving restructures for delinquent loans and reviewing delinquent accounts. A total of 46 meetings were convened during the year. The elected members were Odith O’Connor-Gomez (Chairperson), Tricia-Ann Mitchell (Secretary), Listra Nedd, Vilma Goodman and Herbert Mendez-Stewart, with Terrance Lewis (1st substitute) and Arleen Tardieu (2nd substitute), duly elected at the 16th Annual General Meeting held on 14 July 2022.

Loans granted — year on year

A total of 367 loans were disbursed in 2022 at a value of $4,925,178.12, down from 414 loans worth $6,997,455.15 in 2021 — a decline in value of $1,604,297.77 (25.4%). The Committee attributes this to the economic climate (job losses, struggling small businesses) and continued caution in members’ spending and borrowing after the pandemic.

Leading categories of loans disbursed in 2022 (by value)

Covered Loans commanded the highest number and value of loans (an encouraging trend as they reduce risk to the organization), followed by House Repairs / Improvements. Members may reach the Credit Committee directly at creditcommittee@wescutt.com. The Committee thanked the membership, Board, Supervisory and ad-hoc Committees, Management and Staff for their support.

Supervisory Committee Report

For the financial year 1 January to 31 December 2022. Submitted by Mr. Barry Pierre, Secretary, Supervisory Committee.

The Supervisory Committee for the period comprised Ms. Avana-Marie Honoré (Chairwoman), Mr. Barry Pierre (Secretary), Mr. Donovan Duncan (Member), Ms. Claudia Phillips (1st Alternate) and Mr. Richard Patterson (2nd Alternate).

Training

Committee members completed training in: Managerial Training on Recognizing and Supporting a Troubled Employee; Credit Analysis Training; EAP Training; Fundamentals of Anti Money Laundering and Counter Terrorist Financing; Being Innovative with your Small Business during COVID-19; Cybersecurity Training; and How to Effectively Read and Interpret the TransUnion Report. Members also attended a development training session provided by the Co-operative Development Division (facilitated by Mrs. Mala Jagmohan Sookoo on 1 December 2022), a team-building exercise with Families in Action, and received mentorship from the previous Chairwoman, Mrs. Henry-Stewart.

Cash counts and document checks

The Committee conducted scheduled cash counts (3 May, 22 July, 30 August, 20 September, 12 October and 30 December 2022); at every cash count the figures reported matched the printed Tellers report. Document checks were also scheduled and attended; a few minor anomalies were identified and corrected, and requested documents were made available efficiently.

Anti-Money Laundering and conclusion

The Committee was pleased that WESCU adhered to all Acts and Regulations of the Financial Intelligence Unit of Trinidad and Tobago; an Anti-Money Laundering Policy took effect on 8 August 2022 (modified 20 August 2022), with training extended to staff. As a new committee it navigated the usual teething challenges with the Board’s patience and guidance, and looks forward to continuing in the business of the Credit Union for the betterment of the institution and its members.

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 provides tenants and members a safe, healthy and comfortable environment, complying with Trinidad and Tobago Occupational Safety and Health (building) codes. It reports on repairs 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), having addressed more than 90% of 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 Betancourt Salazar and Mr. Norman Barton.

Cocorite

Repairs to Apt #1 (toilet, shower mixer and head, and a new sliding kitchen window replacing broken louvres); the rear stairs outside Apt #1 and #3 completed with non-skid tiles; Apt #3 fitted with additional bedroom cupboards and A.C. units; plexiglass installed atop the rear security wall; a stolen manhole cover replaced; the automatic gate repaired with new remotes; and a new water pump installed. Electrical upgrades included the common-areas panel box, storeroom lights and plugs, wash-area plugs and repaired corridor security lights. The common wash area outside Apt #3 and #4 was tiled with non-skid tiles, and Apt #7’s bathroom shower mixer was replaced and the bathroom retiled. Guardia Security began daily patrols on 24 June 2022, and the basement apartment was tenanted from 31 December 2022.

Dundonald Street

Repairs (ongoing since September 2021) included a rear roof-leak repair, a leaking toilet and replaced face-basin tap, guttering and fascia work, external painting, fire-alarm servicing, new front windows (louvres removed), and old carpet replaced with commercial sheet vinyl.

Fitt Street (Head Office)

Outside storeroom roof and guttering replaced with a new door; the reception desk refurbished; electrical work in the accounts department; three first-floor doors repaired; concrete benches, tables and plant pots added at the rear; and monthly sanitisation continued.

Project costs

Cocorite vacant apartments

Nomination Committee Report

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

The Nomination Committee identifies 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 vetted in accordance with WESCU’s Bye-Laws and scrutinised by the Trinidad and Tobago Fraud Squad to ensure 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 in breach is to be removed. The Committee comprised Mr. Mark A. Ferrette (Chairman), Ms. Dixie Ann J. De Souza (Secretary), Ms. Sharon C. Hinds, Mrs. Helen A. King and Mr. Norman Barton.

Nominees — Board of Directors

Nominees — Credit Committee

Nominees — Supervisory Committee

The Committee thanked the Board, Management, Staff and nominees, and the Co-operative Division for its support.

Treasurer’s Report

Presented by Ms. Sharon C. Hinds, Treasurer, for the year ended 31 December 2022. All figures in Trinidad and Tobago dollars (TTD).

Bob Gopee and Associates, Chartered Accountants, audited the year ended 31 December 2022 and rendered an Unqualified Opinion, stating that the financial statements present fairly, in all material respects, the financial position of the Credit Union as at 31 December 2022 and its performance and cash flows for the year, in accordance with International Financial Reporting Standards.

2022 was another challenging year: partial vaccination allowed some recovery, but the war in Ukraine (from 24 February 2022) drove up food prices and strained supply chains. Demand for loans fell sharply on job losses, pay cuts and reduced disposable income, which hurt the Credit Union’s main income source — interest on loans. Total income for the year was $4,807,266, a decline of $1,333,119 (21.9%) from the prior year, with declines across all income sources; the write-back to Members’ Loan Impairment ($503,394) was less than anticipated. Investment income of $596,063 was 19.5% lower than 2021, and lower share prices at year-end produced a negative fair-value adjustment of $572,359.

Expenses for 2022 totalled $5,929,296; astute management of personnel costs cut $533,320 there, offsetting increases elsewhere so total expenditure was just $57,809 more than in 2021. Even so, the Credit Union recorded a net deficit of about $1,100,000 for the year.

Total assets stood at $49,352,365 (down 8.9%), mainly from lower Loans to Members (down 12.6% on increased collection of delinquent loans and diminished lending) and Other Financial Assets. As part of the drive to reduce delinquency, pledged shares were applied to loans, contributing to a 5.6% drop in Members’ Shares to $37,072,243.

Going forward the Treasurer’s strategies include increasing membership to grow the share base and lending, maximising other income (in particular rental of vacant apartments and FIP earnings), continued close management of expenses, and a rededicated focus on delinquency — especially larger accounts — to provide funds to re-lend, improve interest income and reduce the loan impairment required.

Yours truly,
Sharon C. Hinds
Treasurer

Budget Projections (Spending Plan 2023)

From the Annual Report 2022. 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 — Distribution of Surplus

Whereas the Credit Union did not realise a net surplus for the financial period ended 31 December 2022, be it resolved that the Board of Directors give a bonus dividend of 0.50%, credited to members’ shares on all fully paid shareholdings for 2022.

Resolution 2 — Honoraria

Whereas the affairs of the Credit Union were prudently managed but no net surplus was realised for the period ended 31 December 2022, be it resolved that no honorarium be paid to the Board of Directors and Statutory Committees.