2013 2014 abcul annual report and accounts

ABCUL ANNUAL REPORT 2013-2014ADDING VALUE

2 ABCUL Annual Report 2013-2014

PRESIDENTS FOREWORD PAGE4

ADDING VALUE FOR MEMBERS PAGE5

CONFERENCES AND EVENTS PAGE 6-7

POLICY AND COMMUNICATIONS PAGE 8-9

FACTS AND FIGURES PAGE 10

ACCOUNTS PAGE 11-12

BOARD OF DIRECTORS PAGE 13

ABCUL STAFF PAGE14

SUPPORTERS AND PARTNERS PAGE15

CONTENTS

ABCUL:

ABCUL Annual Report 2013-2014 3

isthemaintradeassociationforcreditunionsinBritain

isaco-operativeofco-operatives,governedbyvolunteerdirectors

representscreditunionstogovernments,policymakersandthemedia

providesafullrangeofinformation,traininganddevelopmentservicestohelpitsmembersgrowassustainablefinancialco-operatives

In its 50th anniversary year, Britains credit union movement has a proud record of supporting its members through thick and thin. Over the next 50 years, I want to see credit unions continue to grow and play a full part in a more competitive and diverse financial services landscape for their customers.

Andrea Leadsom MPEconomicSecretarytotheTreasury

ThisreportshowshowABCULworkedtowardsitsvisionthatcreditunionswillbecometheprimarysourceofaffordable,highqualityandethicalfinancialservicesforthepeopleofGreatBritainbetweenOctober2013andSeptember2014.


Wecelebrated50yearsofcreditunionsinGreatBritainaswerecalledthefirstcreditunionsinourcountry,andperhapsmoreimportantly,thepioneerswhowerethedrivingforcebehindtheestablishmentanddevelopmentofourmovement.

Fromcreditunionsthatoftenstartedwithahandfulofpeopleinahallorameetingroomsavingafewpoundseach,2014sawusreachonemillionadultmembersinBritishcreditunions,andmemberssharesbrokethe1billionmarkforthefirsttime.

ThiscontinuedgrowthofcreditunionshasbeensupportedbytheUK,ScottishandWelshGovernments,withHMTreasurylaunchingaCallforEvidencetoconsiderpotentialreformstobestfacilitatefurthercredituniondevelopment.

Thisyearhasalsoseenagroupofcreditunionsco-operateandcollaborateinthedevelopmentofsharedservicesthroughABCULssubsidiaryCornerstoneMutualServices,withfundingfromthe

DepartmentforWorkandPensionsCreditUnionExpansionProject.

ItwasanhonourtobeelectedABCULPresidentinMarch,andIhopetobuildontheexcellentworkofourpreviousPresident,SharonAngus-Crawshaw.

Weknowfrominternationalexperiencethatcreditunionsthrivewhentheyco-operateandworktogetherinthetruespiritofco-operativeprinciples.Thisco-operationamongco-operativesiswhatcreatedABCUL,andallowsourtradeassociationtodeliversignificantvaluetocreditunionsupanddownEngland,ScotlandandWales.

Iknowthiscontinuedco-operationamongcreditunionscanfurtherstrengthenABCULasweworktowardsourvisionofathrivingcreditunionmovement.

Robert Kelly ABCULPresident

IthasbeenanhonourtoserveasABCULPresidentduringayearwhichhasseenusmarkseveralkeymilestonesfortheBritishcreditunionmovement.

PRESIDENTS FOREWORD


EverymembercreditunionhasadedicatedMemberRelationshipManageravailabletohelpthemwithanyenquiries.ThisisinadditiontotherangeofinformationguidesonthememberssectionoftheABCULwebsite,andtheopportunitiesfordiscussionandknowledge-sharingaffordedbytheonlineforums.

Lastyear,thevalueofABCULmembershipincluded:

124informationguidespublished

Aweeklybulletin,includingupdatesandbriefings

Helpwitharound1,600enquiries

Helping53creditunionschangetheirrules

16,782phonecallsanswered

13,708outboundphonecalls

Trainingfor519people260inclassroomsessionsand259online

6,705creditunionstaffandvolunteerssignedupforthememberssectionoftheABCULwebsite

1,216contributionstotheonlineforums

307,555visitstotheABCULwebsite

352,782visitstofindyourcreditunion.co.uk

What our members say about ABCUL training:

Surprisingly relaxed course which helped enormously. I felt very upbeat afterwards and am determined to take further training if this is an example of ABCUL training.

Very useful and informative course. Ill recommend to all directors to attend.

First course I have ever done like this; found it very enjoyable and easy to keep up with.

Well delivered, being given the opportunity to ask questions. Clear and precise information provided. Thank you.

ADDING VALUE FOR MEMBERSABCUListhelargestproviderofadvice,guidanceandtrainingforcreditunionsinBritain.

ABCULsAGMandAnnualConferenceisthelargestcreditunioneventinBritain.Lastyear,morethan360delegatesjoinedusinManchestertocelebrate50yearsofcreditunionsandtohearfromspeakersincludingLeaderofManchesterCityCouncil,SirRichardLeese,PresidentandCEOoftheWorldCouncilofCreditUnions,BrianBranch,andarangeofrepresentativesfromGovernment,regulatorsandkeystakeholders.

ABCULorganisedaseriesofeventsatWestminsterassecretariatoftheAPPGonCreditUnions.ThisincludedourcelebrationofInternationalCreditUnionDay,whichwasaddressedbyDamianHindsMP,WelfareReformMinisterLordFreud,andMarkLawton,VicePresidentofNavyFederalCreditUniontheworldslargestcreditunion.

WealsocelebratedInternationalCreditUnionDayattheScottishParliament,whereourreceptionwasaddressedbytheBusinessMinister,FergusEwingMSP.

CONFERENCES AND EVENTS


Credit unions play a vital role in helping people build up savings and have access to loans.

Lord Freud MinisterforWelfareReform


WeorganisedthelaunchoftheLloydsBankingGroupCreditUnionDevelopmentFund,whichischannelling4millionininvestmentsintocreditunionsthroughTheCreditUnionFoundation,withareceptionaddressedbytheEconomicSecretarytotheTreasury,AndreaLeadsomMP.TheCreditUnionFoundationsworkwascelebratedattheHouseofLords,withaveryspecialaddressfromtheArchbishopofCanterbury.

ABCULwasrepresentedatthemajorUKpartyconferences,andABCULrepresentativesspokeatconferencesheldbyarangeofpartnerorganisations,includingtheWorldCouncilofCreditUnions,theBuildingSocietiesAssociation,theCharteredInstituteofHousingandtheMoneyAdviceLiaisonGroup.

WeconvenedtheLargerCreditUnionsAdvisoryCommitteetogiveourlargermembersregularopportunitiestosharelearningandexperiencewithsimilar-sizedcreditunionsaroundthecountry.

This is a really exciting time for the credit unions. But we have to recognize that this is the long haul. Its a marathon not a sprint, and therefore we need to keep going at a measured pace, developing so everyone knows about credit unions, and people pick it up. In 10 to 15 years it should be the norm, not the exception.

Most Reverend Justin Welby ArchbishopofCanterbury

POLICY AND COMMUNICATIONSABCULsrolerepresentingcreditunionstoGovernment,regulators,themediaandotherstakeholdersaddssignificantvalueforourmembers.

LastyearsawABCULsubmit19consultationresponsesandissue24briefingsformembersupdatingonkeypolicyissues.WesupportedParliamentariansaheadofdebatesandquestionson14occasions.Weheldmorethan50meetingswithUK,ScottishandWelshGovernments,including12meetingswithGovernmentMinisters,andgaveoralevidenceto2ParliamentaryCommitteeinquiries.WealsometandliaisedwithregulatorsatUKandEUlevelsonmorethan10separateoccasions.

ABCULalsoprovidesthesecretariattoboththeAll-PartyParliamentaryGrouponCreditUnionsatWestminster,andtotheScottishParliamentsCross-PartyGrouponCreditUnions,andorganised10meetingsintotal,including4withMinisterialspeakers.

ABCULspolicyworkincludedcallingforandrespondingtotheHMTreasuryCallforEvidence(launchedbytheEconomicSecretarytotheTreasuryAndreaLeadsomMPatABCULssummerreception);securingaseatontheArchbishopsTaskGrouponResponsibleCredit&Savings;influencingpartypolicyforthe2015GeneralElection;continuingtopromoteproportionateregulationofcreditunions;supportingmeasurestoenhanceaccesstobankingandbankingcompetition,suchasthePaymentSystemsRegulator;encouragingpayrolldeduction,includingintheArmedForces;givingevidenceontheBankruptcyandDebtAdvice(Scotland)Bill;andsecuringcreditunionsupportintheScottishGovernments12 Days of DebtmasandHelping Hand with Debtcampaigns.


Credit unions are good news for local communities as they play a valuable role in providing financial services and products to a wide range of customers. A key success factor for any credit union is the support of large local employers who may provide savings deducted direct from wages for staff who sign up.

John Swinney MSP ScottishGovernmentFinanceSecretary

ABCULisalsoamemberoftheEuropeanNetworkofCreditUnionswhichmeetstwiceyearlyandrepresentscreditunioninterestsacrossEurope.Workingwithourpartnersfromneighbouringcreditunionmovements,wepresstheEuropeanUniontorecogniseandsupporttheplaceofcreditunionsindirectiveswhichoriginatefromBrussels.

ABCULisproudtobeamemberoftheWorldCouncilofCreditUnions,sharingtheknowledgeandexperienceofcreditunionmovementsacrosstheglobeandco-operatingtorepresentthemovementsinterestsininternationalfinancialnegotiationssuchasBaselIII,taxinformationexchangeandanti-moneylaundering.

ABCULrepresentativeshavebeeninterviewedforaseriesofnewspaperarticlesandTVandradiofeatures,includingonBBCNews,LBCRadio,RadioClyde,BBCRadio5Live,andBBCRadioScotland.

Estimatednetbenefitof51millionfromlegislativereform

ConcessionsfromFinancialReportingCouncilworth7millionperyear

Interestratecaponcreditunionloansraisedto3%permonth,makingsmall,short-termloansmoresustainableforcreditunionsthatwishtoofferthem

SecuringcommitmentfromGovernmenttoreviewcreditunionlegislationandworkwithregulatorstoensureproportionateregulation

Retainingandextendingexemptionsfromconsumercreditregulation,securedexemptionfromtheinterimpermissionfeeandspeciallowerongoingfees

ExemptionsfrompotentiallyonerouskeyEUDirectives,includingtheMortgageCreditDirectiveandtheDepositGuaranteeSchemeDirective

SecuringpayrolldeductionfacilitiesforcreditunionsservingwholeArmedForcesandpromotingtheimportanceandvalueofpayrollsavingsgenerally

AchievingnewBaselIIIliquidityrulesmakingcredituniondepositsmoreattractivetobanksandbuildingsocieties

SecuringalightertouchSeniorManagersRegimeforsmallercreditunionsandpressingforitsextension

SecuringexemptionfromFATCAcomplianceforallbuttheverylargestcreditunionsandlight-touchregimeforthelargest

ExemptionsfromFinancialOmbudsmanServicestandardandPPIsupplementaryfees

Retentionofspecialminimumregulatoryfees

EnsuringUniversalCreditcanbepaidintoanycreditunionaccount

ReformstodebtmanagementanddebtreliefinScotlandtoreduceuseofProtectedTrustDeedsandsecureafairerreturnforcreditunions

ABCULspolicyandlobbyingworkhassecuredrealbenefitsforourmembercreditunions,includingcontributingto:


Credit unions have a key role to play in rebalancing our economy by encouraging higher rates of saving and ensuring affordable access to credit. They do vitally important work to promote greater financial understanding and responsibility.

Danny Alexander MP ChiefSecretarytotheTreasury

FACTS AND FIGURESIn the year to September 2014:

238 credit unions were members of ABCUL The average ABCUL credit union grew its membership by 16% Credit unions in Britain served over 1.1 million people Savings in credit unions reached over 1 billion Credit union lending reached 687 million British credit union assets hit 1.23 billion

1400

1200

1000

800

600

400

200

02004

Total membership incl juniors (thousands) Shares ( millions)Loans ( millions) Assets ( millions)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

British credit union growth 2004-2014

Source: PRA

Those of us who champion credit unions have always believed that what makes credit unions different is not just that they provide an affordable and responsible financial alternative, but that credit unions are motivated by the interests of the communities they serve.

Gareth Thomas MPChairoftheCo-operativeParty


CONSOLIDATED ACCOUNTS


INCOME MembersDues 747,260 727,019Othertradebodyincome 463,098 531,984CUEPandotherservicesincome 7,695,443 2,381,721 8,905,801 3,640,724EXPENDITURE Directcostsoftradebody 375,226 474,284DirectcostsofCUEPandotherservices 6,795,761 1,943,542Staffcosts 1,350,723 905,519Officecosts 286,766 170,178Professionalcosts 49,556 19,903

(8,840,032) (3,513,426)(DEFICIT) / SURPLUS FOR THE YEAR BEFORE TAXATION 65,769 127,298CorporationTaxcharge (2,207) (5,297)(DEFICIT) / SURPLUS FOR THE YEAR BEFORE TRANSFERS 63,562 122,001Transferfrom/(to)designatedfundsreForums (21,424) (20,588)

(DEFICIT) / SURPLUS FOR THE YEAR TRANSFERRED TO GENERAL FUNDS 42,138 101,413ACCUMULATEDGENERALFUNDSB/F 441,171 339,758ACCUMULATED GENERAL FUND C/F 483,309 441,171

Therearenorecognisedgainsandlossesotherthanthosepassingthroughtheincomeandexpenditureaccount.

FOR THE YEAR ENDED 30 SEPTEMBER 2014 2014 2013

IncomeandExpenditure


AT 30 SEPTEMBER 2014 2014 2013 FIXED ASSETS 7,914 17,551

CURRENT ASSETSStock - 800 Debtors 3,693,770 1,568,318 Cashatbank 1,111,307 1,472,479 4,805,077 3,041,597

CURRENT LIABILITIESCreditors 4,057,291 2,367,009

NET CURRENT ASSETS 747,786 674,588

TOTAL ASSETS LESS CURRENT LIABILITIES 755,700 692,139

LIABILITIES GREATER THAN ONE YEAR (-) (-) 755,700 692,139

SHARE CAPITAL 237 238

ACCUMULATED FUNDS DesignatedfundsinrespectofForums 102,154 80,730Designatedfundsforofficerelocation&refurbishment 50,000 50,000Designatedfundsforresearch&development 120,000 120,000Generalfunds 483,309 441,171 755,700 692,139

BALANCE SHEET

ThefollowingservedontheABCULBoardbetweenOctober2013andSeptember2014:

Robert Kelly DirectorforScotlandandPresident(fromMarch2014)Angela Hampson DirectorforScotlandandVicePresidentDavid Martin DirectorfortheNorthEast,YorkshireandHumberandTreasurerKevin Waters DirectorfortheWestMidlandsandSouthWestandSecretarySharon Angus-CrawshawDirectorforWales(untilAugust2014)andPresident(untilMarch2014)Grenville Bingham DirectorfortheSouthEastDerek Buckland DirectorfortheSouthEast(untilFebruary2014)Frank Duffy DirectorfortheNorthWestPeter Evans DirectorfortheWestMidlandsandSouthWest(fromMarch2014)Alan Hignett DirectorfortheNorthEast,YorkshireandHumberDon Kehoe DirectorfortheSouthEast(fromJune2014)John Macdonald DirectorfortheNorthWestCarol McHarg DirectorforScotlandClive Rix DirectorfortheEastRobert Taylor DirectorfortheNorthWestAndy Wright DirectorforScotland


Denis GreenallPeter Evans (untilMarch2014)John Weir (fromMarch2014)Ian Atkins (fromSeptember2014)

SUPERVISORY COMMITTEE

BOARD OF DIRECTORS

We want to make sure credit unions go from strength to strength and become a permanent sight on high streets across Wales. They are a real, community focused alternative to traditional banks and payday lenders.

Jeff Cuthbert AM thenWelshGovernmentMinisterforCommunitiesandTacklingPoverty

ABCUL STAFFChiefExecutiveMark LyonettehasledABCULsince2004.AttheendofSeptember2014,heledastaffteammadeupof:

Clare Atkinson ConferenceandEventsManagerMatt Bland PolicyManagerPhil Davies ITManagerRosanna Donovan SeniorMemberRelationshipManager Anna Douglas MemberRelationshipManagerHassan Hussain ITAdministratorMarcus Iles MemberRelationshipManagerKaren Knott WebContentandOnlineTrainingCo-ordinatorJudith McKenzie ExecutivePAFrank McKillop PolicyManager(Scotland)Maureen Mooney BusinessSupportAdministratorMoline Nensa FinanceOfficerAnne Odudu FinanceManagerStephen Pate FinanceManagerRhamis Sahibzada FinanceOfficerAbbie Shelton PrincipalAdvisorCarol Strand FinanceControllerVikki Strand FinanceAdministratorAnnette Warne-Thomas GroupServicesDirector

Duringtheyear,wesaidgoodbyetoSarah Anwar, Karina Byron, Jake Hankinson, Sam Hardwick, Maria Heneghan, Stephen Kay, Helen Lamont, Claire Lewis, James MoranandMary Patel.WethankthemfortheirworkwithABCULandwishthemallwellwiththeirfutureendeavours.


With the growing scourge of payday lending across the UK, credit unions are a viable, cheaper, non-profit local alternative and should be encouraged.

Martin LewisMoneySavingExpert


SUPPORTERS AND PARTNERS

Wewishtoextendourthanksto:BarclaysThe Church of EnglandThe Church of ScotlandCiti FoundationThe Co-operative GroupCUNA Mutual GroupLloyds Banking GroupSantander

Weworkedwitharangeofpartnersduringtheyeartodeliverservicestoourmembersincluding:Mitchell Charlesworth AuditorsHelen Bolton Management AccountantDWF Legal AdvisorsEthos Public RelationsExperianHallidays

ABCUL is grateful for the support of a range of organisations who share our vision of a stronger credit union movement.

ABCUListhemaintradeassociationforcreditunionsinEngland,ScotlandandWales.FormoreinformationontheAssociationoranyofitsservices,pleasecontacttheHeadOffice:

ABCUL HolyoakeHouse,HanoverStreet,ManchesterM600AS

Tel:01618323694Email:[email protected]:www.abcul.coop

ABCUL2015

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2013 2014 abcul annual report and accounts

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