dubco credit union limited · o divine master, grant that i may ... ar dheis dé go raibh a anam....

Dubco Credit Union Limited

WHERE PEOPLE ARE WORTH MORE THAN MONEY

Annual Report & Accounts 2004

Credit Union

CREDIT UNION INVOCATION

Lord, make me an instrument of Thy peace

Where there is hatred, let me sow love;

where there is injury, pardon;

where there is doubt, faith;

where there is darkness, light;

and where there is sadness, joy.

O Divine Master, grant that I may

not so much seek to be consoled as to console;

to be understood as to understand;

to be loved as to love;

for it is in giving that we receive,

it is in pardoning that we are pardoned,

and it is in dying that we are born to eternal life.

A THIARNA, déan díom uirlís de Do shiocháin

Áit a bhfuil fuath, lig dom grá a chur;

áit a bhfuil dochar déanta, pardún;

áit a bhfuil amhras, creideamh;

áit a bhfuil éadóchas, dóchas;

áit a bhfuil dorchadas, solas;

agus áit a bhfuil brón, áthas.

A mhaistir Dhiaga, deonaigh

nach niarraim, chomh mór sólás;

a fháil le sólás a thabhairt;

a bheith tuigthe chomh mór le tuigsint a bheith agam;

grá a fháil le grá a thabhairt;

oir is ó bheith ag tabhairt a fhaighimíd;

is ó phardún a thabhairt a fhaighimíd pardún,

agus is trí bhás a fháil a saolaítear sinn

don bheatha shíorraí.

ACHAINÍ AN CHOMHAIR CHREIDMHEASA

Dubco Credit Union Limited - Annual Report 2004

Directors and Supervisory Committee Information 2

Chairperson's Report 3

Report of Board of Directors 4

Treasurer's Report 5

Income and Expenditure Account 6

Balance Sheet 8

Cashflow Statement 9

Notes to Financial Accounts 9

Report of the Auditor 12

Credit Committee Report 13

Membership, Education and Promotion Report 15

Budget Plan Report 16

Planning and Development Report 17

Credit Control Report 18

Insurance Report 18

Supervisory Committee Report 19

Staff and Other Information 20

C O N T E N T S

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Carmel McGrane, Chairperson

Barry Fennell, Vice-Chairperson

John O’Sullivan, Treasurer

Harry Rose, Secretary

James Garland, Assistant Treasurer

Monica Murphy, Assistant Secretary

Michael Comiskey

Tom Corrigan

Matthew Dawson, Deceased March 2004

George Finglas

Noel Fitzgerald

William A Harnett, Resigned April 2004

Jeremiah Linehan

Margaret Muldoon

Sean Murray

Michael Moylan, Chairperson Sean Casey, SecretaryBridget O’Connor, Co-opted January 2004 Seamus Costello, Resigned January 2004

D I R E C T O R S

S U P E R V I S O R Y C O M M I T T E E

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Jeremiah Linehan

Carmel McGraneChairperson

Barry FennellVice-Chairperson

Harry RoseSecretary

John O’SullivanTreasurer

Michael Comiskey Tom Corrigan George Finglas

Margaret Muldoon Sean Murray

Matthew DawsonDeceased March 2004

Noel Fitzgerald

James GarlandAssistant Treasurer

Monica MurphyAssistant Secretary

William A. HarnettResigned April 2004

B O A R D O F D I R E C T O R S 2 0 0 3 / 0 4

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I am honoured to have been elected Chairpersonof your Credit Union by my fellow Directors andhave great pleasure in presenting our annualreport for the year ended 30th September 2004.

A comprehensive review of your CreditUnion's activities and finances is detailedin the report. Thanks to your supportand confidence, the dedication of ourManagement and Staff and theunstinting commitment of myColleagues on the Board of Directors and SupervisoryCommittee Dubco has enjoyed a very successful year.

Sadly however, 2004 also marked the passing of one ofour founder members and long serving Directors MattDawson. Matt always had the welfare of his colleaguesclose to his heart and it was fitting that he was a signatoryto the founding of Dubco in 1977. He served as FirstTreasurer until April 1981, as Chairman from December1990 to January 1994, as Secretary from February 1995 toJanuary 1998. He also served on numerous committeessince the founding of the Credit Union until his death.The success of Dubco today is a fitting epitaph to Matt'ssignificant input to Dubco's development over the years.Our deepest sympathies go to his wife Pat and his lovingfamily. Ar dheis Dé go raibh a anam.

NEW PREMISESAs a member of the premises committee Matt wouldhave been very proud to witness Dubco's move intoour new Green Street premises on 10th November2004. I am delighted to say that we now have amodern, flexible and tailored office environment forMembers, Staff and Volunteers. I have no doubt thatit will be a platform for the continued development ofour Credit Union.

I would like to express gratitude to our premisescommittee, ably led at all times by Noel Fitzgerald,for their work over the last number of years on thisproject. Thanks also to the Project Manager JohnKelly, Billy Doyle who was Project Manager up to hissecondment to CUDA, Mark Turpin of DonnellyTurpin Architects and Derek Feeney our I.T.Consultant. A word of thanks to our Staff who haveco-operated so enthusiastically in the transfer ofoperations from Capel Street to Green Street.

Finally a big thank you to you our Members for yourpatience and understanding during the move. I stronglyencourage you to call in to our new office because thismagnificent new premises belongs to you all.

CUDA (CREDIT UNION DEVELOPMENTASSOCIATION) As previously advised Dubco is a foundingmember of CUDA.

The past year marked the furtherdevelopment of CUDA as a distinct,credible and progressiverepresentative / developmentassociation for its member creditunions. In addition to further

establishing its organisational structure andintroducing a variety of service / developmentsupports, CUDA's status as a recognised and forwardlooking representative voice of the Credit UnionMovement was confirmed by the recent appointment,by the Minister for Finance, of CUDA nominees to theCredit Union Advisory Committee (CUAC) and to theFinancial Services Industry Panel.

Both the Department of Finance and IFSRA have indicatedthat a review of the Credit Union Act is likely to take placein 2005. Your Board, through CUDA, will now be in aposition to influence this process and hopefully bringabout legislative / regulatory changes which will allowprogressive Credit Unions like Dubco to move onto afurther stage of development and allow you as membersobtain access to a more comprehensive range of servicesfrom a brand you can trust - Dubco Credit Union.

ACKNOWLEDGEMENTSOn behalf of the Board may I convey a sincere thank youto Tony Harnett, who retired from the Board during theyear, for his many years of sterling service as a Director,as Chairman from 1994 to 1996 and as a member ofvarious committees; to Seamus Costello and Pat Lawlorwho gave unstinting sevice on the SupervisoryCommittee for many years until their retirement duringthe year; to John Kelly, Manager, Martina Kennedy,Executive Officer and all the Staff. My thanks also to thevarious Management and Staff in Dublin City Council,CDVEC and DIT for their continued co-operation.

On your behalf may I again sincerely thank the Boardof Directors and Supervisory committee.

Looking forward to meeting you at the AGM. Season'sgreetings and best wishes to you all.

C H A I R P E R S O N ’ S R E P O R T


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R E P O R T O F B O A R D O F D I R E C T O R S

The Directors present their report for the year ended30th September 2004.

PRINCIPAL ACTIVITY AND REVIEW OF BUSINESSThe principal activity during the year was the operationof a Credit Union under the terms of the Credit UnionAct, 1997 as amended. The Credit Union has continuedits growth pattern both in terms of loans granted andshares issued during the financial year.

ACCOUNTING RECORDS The Directors believe that they comply with therequirements of Section 108 of the Credit Union Act, 1997with regard to books of account by employing accountingpersonnel with appropriate expertise and by providingadequate resources to the financial function. The booksof account of the Credit Union are maintained at thecompany's premises at Little Green Street, Dublin 7

RESULTS AND DIVIDENDSThe results for the year are set out in detail in thisReport. The Directors propose that a dividend of€1,648,845 (3%) be paid for the year and a loaninterest rebate of €312,500 (7.5%) be paid toqualifying borrowing members.

EVENTS SINCE THE YEAR ENDThere have been no significant events affecting theCredit Union since the year end.

HEALTH AND SAFETYThe well being of the Credit Union's employees issafeguarded through the strict adherence to health

and safety standards. The Safety, Health and Welfareat Work Act, 1989 imposes certain requirements onemployers and the Credit Union has taken thenecessary action to ensure compliance with the Act,including the adoption of a safety statement.

DIRECTORS' RESPONSIBILITIESThe Credit Union Act, 1997 requires Directors toprepare financial statements for each financial yearwhich give a true and fair view of the state of affairs ofthe credit union and of the income and expenditure ofthe credit union for that year. In preparing thosefinancial statements, the directors are required to:

• select suitable accounting policies and then applythem consistently;

• make judgements and estimates that arereasonable and prudent;

• prepare the financial statements on the goingconcern basis unless it is inappropriate to presumethat the credit union will continue in business.

The Directors are responsible for keeping properaccounting records which disclose with reasonableaccuracy at anytime the financial position of thecredit union and which enables them to ensure thatthe financial statements comply with the Credit UnionAct, 1997. They are also responsible for safeguardingthe assets of the credit union and hence for takingreasonable steps for the prevention and detection offraud and other irregularities.

On behalf of the Board of Directors

Carmel McGrane John O'SullivanChairperson Treasurer


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T R E A S U R E R ’ S R E P O R T

As referenced in The Board of Directors'Report your Credit Union has had anothersuccessful year and continued the stronggrowth trends of previous years.

Some of the main financial highlights include:

• Total income exceeded €5m • Total assets have increased by

€13m to stand at €83m at yearend

• Loans outstanding at year endincreased by over 12% year onyear

• Member shares are up 13% • Member SSIA balances now

stand at over €12m• Total capital reserves now stand at almost €9m• Almost €2m returned to Members by way of

return on savings

FINANCIAL OBJECTIVES ACHIEVED I am particularly satisfied to see a balancedsustainable growth in Loans and Shares. FurthermoreI have said on many occasions that providing acompetitive savings and loan package whilecontrolling costs and strengthening our capital orfinancial reserves are the key financial objectives ofmy term as Treasurer. We have again achieved a year -end outcome consistent with these goals.

In particular not only are we increasing our reservesand proposing a very competitive dividend but wewere also in a position to significantly reduce loaninterest rates during the year - at a time whenmarket rates are static or likely to increase. Inaddition as you can see from the surplus distributionoutlined below we are still in a position to pay a 7.5%interest rebate to qualifying borrowing Members.

GREEN STREET PREMISESDubco is now operating from a newly refurbishedstate of the art premises in Little Green Street. Notonly does this reflect well on the success andambitions of the Credit Union but also importantlyfrom a financial perspective we had sufficientresources to fund the bulk of the €3m refurbishmentand fit out cost ourselves.

We have also freed up a very significant debt freeasset in the form of our premises at 159/160 CapelStreet that is located in a prime development area.

The Board are considering ways to best maximisethe use / return of this property to the Credit Union.

PROPOSED DISTRIBUTION OF SURPLUSThe Board of Directors are recommending the

following return to members for approval atthe forthcoming AGM:

1. The payment of a 3% dividend onMember Shares thereby returning€1.6m to Members

2. The payment of a 7.5% loaninterest rebate to qualifyingborrowing members

When added to the attractive SSIAdeposit account returns a total figure in excess of€2m is being returned to Members.

As outlined in last year's report a range of attractivetax efficient saving account options are now availablefrom your Credit Union.

ACKNOWLEGEMENTSI would like to express my sincere thanks to the Boardof Directors and Supervisory Committee for theirsupport and confidence during the year. In particulara word of thanks to Jimmy Garland, our AssistantTreasurer.

I owe a great deal of gratitude to our Manager, JohnKelly, Executive Officer, Martina Kennedy, SeniorAdministrator, Ben Gillick and all the Staff for theirexcellent work and support to me during the year.

Thanks also to our Auditor, Tom Fitzpatrick for theprofessional advice and services provided.

Finally, I wish to thank you the Members for yoursupport and confidence and I look forward to up-dating you in greater detail at the AGM.


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I N C O M E & E X P E N D I T U R E A C C O U N TFor the year ended 30th September 2004

Income

Expenditure

2004 2003€ €

Loan Interest 4,221,339 3,843,634Deposit Interest & Investment Income 893,434 831,261Bad Debts Recovered 14,092 2,000Other Income 30,471 64,408Budget Account Fees & Interest 99,357 101,574Insurance Commissions 85,275 92,138

Total Income 5,343,968 4,935,015

Administration

Salaries, Pensions & Staff Costs 832,435 751,639Stationery & Office Supplies 20,971 34,836Postage 20,646 16,211Honorarium 6,000 6,000Telephone Calls & Maintenance 24,709 18,188Board/Sub-Committee & Chapter Meeting Costs 13,612 21,120Government Stamp Duty 2,940 1,522Affiliation Fees 26,624 6,956Legal & Reporting Fees 43,580 14,034

Sub Total 991,517 870,506

Maintenance of Fixed Assets

Depreciation & Asset Disposal 141,417 136,606Repairs, Rates, Security & Office Maintenance 42,824 73,722Computer costs 99,908 81,900Light & Heat 10,953 10,144Office Machine Maintenance 3,324 1,761

Sub Total 298,426 304,133

Insurance

Life Savings & Loan Protection Cover 318,377 298,859General 26,456 14,406

Sub Total 344,833 313,265

Promotion & Education

Convention, Training & Education Costs 63,540 63,914Annual Report & AGM Costs 23,605 22,199Promotion & Advertising 30,650 30,782Third World Development Contribution 7,178 6,914Sponsorship & Donations 5,685 7,190

Sub Total 130,658 130,999

Income & Expenditure Account Cont’d overleaf

6


INCOME & EXPENDITURE ACCOUNT CONT ’D

2004 2003

€ €

Financial

Deposit Interest Payable to Members 179,470 149,974

Bank Interest & Charges 68,061 76,400

Provision for Doubtful Debts 70,000 55,000

Bad Debts written off 59,218 20,178

Audit & Accountancy Fees 13,717 15,823

Sub Total 390,466 317,375

Total Expenditure 2,155,900 1,936,278

Excess of Income over Expenditure 3,188,068 2,998,737

Add

Balance 1st October 2003 1,037 800

Over Provision for Dividend/Loan Interest Rebate 26,345 22,132

Total 3,215,450 3,021,669

Less

Transfer to Statutory Reserve -350,000 -300,000

Transfer to General Reserve -900,000 -1,000,000

Transfer to Interest Rebate Reserve -312,500 -288,500

Transfer to Dividend Reserve -1,648,845 -1,432,132

Undistributed Surplus 30th September 2004 4,105 1,037

These accounts were approved by the Board of Directors on the 18th November 2004

Carmel McGrane John O'Sullivan Michael MoylanChairperson Treasurer Chairperson, Supervisory Committee

7

The accompanying notes form part of these accounts.

BALANCE SHEETas at 30th September 2004

Assets

Liabilities

Members’ Resources



Michael MoylanChairperson, Supervisory Committee

2004 2003€ €

Cash and Balances at bank 4,966,846 1,206,632Investments 25,101,344 22,783,929Loans to Members 48,146,804 42,881,907Less Provision for Bad & Doubtful Debts -325,000 -255,000Tangible Fixed Assets 4,820,885 3,079,336Prepayments and Accrued Income 298,878 304,943

Total Assets 83,009,757 70,001,747

Member SSIA Balances 12,043,208 7,624,229Bank Overdrafts 0 403,932Creditors and Accruals 731,530 584,209Member Budget Account Balances 1,891,312 1,133,692Proposed Dividend & Interest Rebate Issue 1,961,345 1,720,632Member Car Draw Balances 252 280Bank Loan (Premises) 757,954 885,870

Sub Total 17,385,601 12,352,844

Member Shares 56,670,687 49,937,264Statutory Reserve 4,770,000 4,420,000General Reserve 4,166,000 3,266,000Undistributed Surplus 4,105 1,037Other Reserves 13,364 24,602

Sub Total 65,624,156 57,648,903

Total Liabilities 83,009,757 70,001,747

These accounts were approved by the Board of Directors on the 18th November 2004


8

The accompanying notes form part of these accounts.

1. ACCOUNTING POLICIES. The results for the year have been determinedand the Balance Sheet compiled in accordancewith the following accounting policies:

ACCOUNTING CONVENTIONThe financial statements are prepared inaccordance with generally accepted accountingprinciples under the historical cost conventionand comply with financial reporting standardsof the Accounting Standards Board, aspromulgated by the Institute of CharteredAccountants in Ireland.The credit union hasconsistently applied all relevant accountingstandards.

INCOME RECOGNITIONInterest received on members loans represents

the full interest for the year, calculated on a day today basis.

DEPRECIATIONDepreciation is provided at rates calculated to writeoff the cost of each asset over its expected useful lifeas follows:

Premises Straight Line over 50 yearsComputer equipment 20% Straight LineFixtures & fittings 20% Straight LineEquipment 10/20% Straight Line

INVESTMENTSFixed Asset investments are stated at cost lessprovision for diminution in value. Current assetinvestments are generally stated at the lower of costand net realisable value with the exception of a

N O T E S T O F I N A N C I A L A C C O U N T SF O R T H E Y E A R E N D E D 3 0 T H S E P T E M B E R 2 0 0 4

CASHFLOW STATEMENT FOR THE YEAR ENDED as at 30th September 2004

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2004 2003€ €

Opening cash and investments 23,584,213 16,969,890

ReceiptsMembers’ savings 24,233,339 22,721,597 Increase/(Decrease) in Member Budgets Accounts 757,620 -38,495 Members’ loans repaid 23,176,005 20,320,462 Members’ loan interest received 4,221,339 3,843,634 Investments interest received 893,434 831,261 Bad debts recovered 14,092 2,000 Fixed assets sold 0 17,629 Other receipts 215,103 258,120 Decrease/(Increase) in prepayments 6,065 -8,243

Total 53,516,997 47,947,965

DisbursementsMembers’ savings withdrawn 13,080,937 12,364,374 Members’ loans granted 28,497,808 25,433,029 Bank loan repayments 157,809 157,809 Dividend & Loan Interest Rebate paid 1,694,287 1,372,479 Operating expenses 1,857,685 1,702,217 Fixed assets purchased 1,882,966 568,589 (Increase)/Decrease in other liabilities -136,056 -264,855

Total 47,035,436 41,333,642

Closing cash and investments 30,065,774 23,584,213

2. RETURNS TO MEMBERS2004 2003

Rate € Rate €

Proposed Dividend 3.00% 1,648,845 3.00% 1,432,132Proposed Loan Interest Rebate 7.50% 312,500 7.50% 288,500SSIA Deposit Interest 2.00% 179,470 2.65% 149,974

3. RATE OF INTEREST CHARGED ON MEMBERS LOANSThe credit union currently charges 0.749% per month on outstanding loan balances for standard class loans. The rateper month is 0.666% for eligible vehicle loans and is 0.583% for eligible house purchase/bridging loans.

4. TANGIBLE FIXED ASSETS

Premises Computer Fixtures & Fittings Equipment Total

€ € € € €

Cost

At 1st October 2003 3,311,434 264,159 126,985 171,008 3,873,586

Additions 1,882,966 0 0 0 1,882,966

Disposals 0 0 0 0 0

At 30th September 2004 5,194,400 264,159 126,985 171,008 5,756,552

Deprecation

At 1st October 2003 335,171 237,222 121,891 99,966 794,250

Charge for Year 103,888 13,131 2,706 21,692 141,417

Disposals 0 0 0 0 0

At 30th September 2004 439,059 250,353 124,597 121,658 935,667

Net Book Values

At 30th September 2004 4,755,341 13,806 2,388 49,350 4,820,885

At 30th September 2003 2,976,263 26,937 5,094 71,042 3,079,336

€3.5m investment in an AIB Corporate bond whichis being held to maturity and carried at cost valuewith interest accrued on a straight line basis. Withprofit bonds are stated at cost on the basis they willbe held to maturity with no early encashmentpenalty.

PENSIONSThe Credit Union operates both definedcontribution and target benefit pensionschemes. The assets of the schemes are heldseparately from those of the Credit Union in

independently administered funds. Thepension charges represent contributionspayable by the Credit Union to the schemes.

BAD AND DOUBTFUL DEBTSBad debts written off and bad debts recoveredare included in the Income and ExpenditureAccount and provision for doubtful debts ismade against current loan balances inaccordance with Resolution 11 of 1987 asadopted by Credit Unions. It is also felt prudentto allocate an additional provision of €70,000.


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N O T E S T O F I N A N C I A L A C C O U N T SC O N T I N U E D

5. RELATED PARTY TRANSACTIONSThe following details relate to officers’ accounts with the credit union

2004 2003€ €

Aggregate amount of savings held by officers 394,608 260,274Aggregate amount of loans held by officers 104,364 186,165

The aggregate amount of loans issued to officers during the year under 36(3) of the Credit Union Act 1997 was €57,000

6. INSURANCE AGAINST FRAUDThe Credit Union has insurance against fraud in the amount of €2,000,000 in compliance with section 47 of the CreditUnion Act 1997.

7. STATUTORY RESERVE 2004 2003€ €

Balance as at 1 Oct 2003 4,420,000 4,120,000Transfer from Income & Expenditure Account 350,000 300,000Balance at 30th September 2004 4,770,000 4,420,000

OTHER RESERVES Balance 1/10/03 Net Movement Balance 30/9/04€ € €

General Reserves 3,266,000 900,000 4,166,000Other Reserves 24,602 -11, 239 13,363Undistributed Surplus 1,037 3,068 4,105

The Statutory and General Reserves represent 15.03% of Savings at 30th September 2003

8. INVESTMENTS2004 2003€ €

Deposits 20,553, 468 17,999,496Bonds 4, 545, 460 4,782,017Shares 2, 416 2,416

9. CAPITAL COMMITMENTThe Board expect to have further expenditure in the order of €1,000,000 in respect of fit out, IT Systems andProfessional Fees for the premises project at Little Green Street. The Board are considering ways to best maximisethe use/return of the property at 159/160 Capel Street.

10. CONTINGENT LIABILITIESAll capital invested in bonds is guaranteed only if held to maturity. In the unlikely event of early encashmentthere may be early settlement penalties.

11. BAD DEBTS WRITE OFF2004 2003€ €

Credit Union 56,906 20,178Budget 2,312 0

12. APPROVAL OF FINANCIAL STATEMENTSThe financial statements were approved by the Board on the 18th November 2004.

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I have audited the financial statements of DubcoCredit Union Limited for the year ended 30 September2004 which comprise of the Income and ExpenditureAccount, the Balance Sheet, the Cash Flow Statementand related notes. These financial statements havebeen prepared under the historical cost conventionand the accounting policies set out therein.

This report is made solely to the credit union’smembers, as a body, in accordance with Section 120of the Credit Union Act, 1997. My audit work has beenundertaken so that I might state to the credit union’smembers those matters I am required to state tothem in an auditor’s report and for no other purpose.To the fullest extent permitted by law, I do not acceptor assume responsibility to anyone other than thecredit union and the credit union’s members as abody, for my audit work, for this report, or for theopinions I have formed.

RESPECTIVE RESPONSIBILITIES OF THEDIRECTORS AND AUDITORSAs described in the Statement of Directors’Responsibilities, the credit union’s directors areresponsible for the preparation of the Annual Reportand the financial statements in accordance withapplicable law and Irish Accounting Standards.

My responsibility is to audit the financial statementsin accordance with relevant legal and regulatoryrequirements and Auditing Standards promulgated bythe Auditing Practices Board.

I report to you my opinion as to whether the financialstatements give a true and fair view and are properlyprepared in accordance with the Credit Union Act,1997. I also report to you whether in my opinion,proper accounting records have been kept by thecredit union and whether the information in theDirectors’ Report is consistent with the financialstatements. In addition, I state whether I haveobtained all the information and explanationsnecessary for the purposes of my audit and whetherthe credit unions balance sheet and its income andexpenditure are in agreement with the books ofaccount.

I read the other information contained in the AnnualReport and consider whether it is consistent with theaudited financial statements.Basis of opinion

I conducted my audit in accordance with AuditingStandards issued by the Auditing Practices Board. Anaudit includes examination, on a test basis, ofevidence relevant to the amounts and disclosures inthe financial statements. It also includes anassessment of the significant estimates andjudgements made by the directors in the preparationof the financial statements, and of whether theaccounting policies are appropriate to the creditunion’s circumstances, consistently applied andadequately disclosed.

I planned and performed my audit so as to obtain allthe information and explanations which I considerednecessary in order to provide me with sufficientevidence to give reasonable assurance that thefinancial statements are free from materialmisstatement, whether caused by fraud or otherirregularity or error.

In forming my opinion I also evaluated the overalladequacy of the presentation of information in thefinancial statements.

OPINIONIn my opinion the financial statements give a trueand fair view of the state of the credit union’s affairsas at 30 September 2004 and of its income andexpenditure for the year then ended and have beenproperly prepared in accordance with the provisionsof the Credit Union Act, 1997.

I have obtained all the information and explanations Iconsider necessary for the purposes of my audit. Inmy opinion proper books of account have been keptby the credit union. The financial statements are inagreement with the books of account.

In my opinion the information given in the directors’report on page 4 is consistent with the financialstatements.

Tom Fitzpatrick F.C.A.Fitzpatrick Morrris Barrett,Chartered Accountant,74 Pembroke Road, Ballsbridge, Dublin 4.25th November 2004.

INDEPENDENT AUDITOR ’S REPORT TO THE MEMBERS


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C R E D I T C O M M I T T E E R E P O R T

The past year has been a very busy one for theCredit Committee. Meeting at a minimum on aweekly basis over 8,400 loans were approvedand in excess of €28m issued to Members.Reflecting the scale of operations whichDUBCO now encompasses these loanswere for a wide variety of purposesand amounts.

The general loan limit is now at€75,000 with higher amountsavailable depending on ability torepay, purpose, term etc. Asidefrom mortgages Dubco is nowplaying the pivotal role in meeting the financialneeds of our members.

DUBCO - A COMPETITIVE & ETHICAL LOAN PACKAGEYour Credit Union strives at all times to ensurethat the ethical and fair treatment of all ourborrowing Members is backed up by ascompetitive a loan package as possible. With thereduction of our standard loan interest rate to8.99% from May 2004 and the introduction ofspecial Car and House Purchase loan products atinterest rates of 7.99% and 6.99% respectivelyDubco's not for profit co-operative approach hasclear borrowing cost advantages compared withaverage equivalent lending facilities in the widerfinancial sector.

Aside from the interest rate there are otheradvantages of borrowing from your Credit Unionwhich have been stated many times but are worthrepeating again:

• Free life assurance on all eligible loans• No application fee or other charges• No early redemption fees • A facility to alter agreed repayments in the event of

changed financial circumstances• Repayment terms of up to 15 years• A caring, friendly yet strictly confidential service• The knowledge that the bulk of the loan interest is

used to pay an excellent return on your savings andthose of your colleagues and friends in theworkplace

I would urge you all to approach your CreditUnion in the first instance for any borrowing

need you have - small or large. A Member'sability to repay allied to the productiveness of

the loan purpose is the key criteriaused by the committee in assessing allapplications. Remember that 95% ofall applications are approved andavailable within one week from thedate of application.

NEW CONSUMER CREDITREQUIREMENTS FOR CREDITUNIONS

The recently enacted Central Bank and FinancialServices Authority of Ireland Act 2004 amends theCredit Union Act, 1997 in a number of waysparticularly in the area of our lending procedures andobligations. From 1st January 2005 the existingpromissory note will be replaced by a more detailedcredit agreement document. A copy of the loanagreement must be handed personally to the Memberor sent to him/her within ten days of it being enteredinto. Similarly any guarantor must also receive a copyof the agreement and the contract of guaranteewithin 10 days. While the loan documentation willchange Members can continue to interact with theirCredit union in exactly the same fashion as regardsthe type, size and frequency of loan applications asheretofore. I look forward to your co-operation withthis administrative change in the New Year.

ACKNOWLEDGEMENTSIn my first year as Chairperson of the CreditCommittee may I express my thanks to my fellowCommittee Members, the Board of Directors andSupervisory Committee. As always a sincere word ofthanks to our Manager John Kelly, Executive OfficerMartina Kennedy, all the Staff and in particular to ourMember Services Administrator Ingrid Lee Kin.

Wishing you all a Happy Christmas and prosperousnew year.

Tom CorriganCommittee Chairperson

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LOANS OUTSTANDING AT F INANCIAL YEAR END (€ M)

ANALYSIS OF LOANS ISSUED FOR YEAR ENDED 30/9 / ’04

M E M B E R S H I P G R O W T H


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M E M B E R S H I P, E D U C AT I O N & P R O M O T I O N

During the year 582 new members joined theCredit Union thereby increasing membership atyear end to 9,781.

All employees and retirees of Dublin CityCouncil, Dubco Credit Union, ImpactUnion, Local Government ServicesBoards and administrative staff of the ITand CDVEC Colleges in Dublin togetherwith family members who reside withthem are eligible to be members ofDubco.

We remember at this time our deceased colleaguesand friends, and sadly this year 47 passed to theireternal reward. Ar dheis Dé go raibh a n-anamacha.

In recognition of the significant contribution made byMatthew Dawson during his time as director since thefounding of the Credit Union it was decided to set upthe Matthew Dawson Bursary to assist two studentswith their third level education. The first selection bydraw will take place on the 14th December 2004.

The continued success of the Car Draw is mostencouraging. Since the increased member contributionof €1.00 per week on 1st January 2004 more membersare experiencing "the winning feeling" with the extraprizes at the Monthly, Summer and Christmas draws.

Dubco again sponsored a number of events duringthe year together with making contributions tocommunity / charitable events involving the directparticipation of Dubco members.

We continued the funding of Third Worldeducational/co-operative projects in Mexico,Gambia, Nigeria and Ghana. This year thecontribution to the fund was €7,178.

A delegation attended the WOCCU Forumin Nassau to keep in touch with developments in otherCredit Union movements worldwide. Dubco is also asupporter member of WOCCU. Staff and Volunteereducation programs continued again this year.

Promotion of the credit union is paramount tocontinued success and this year, inter alia, First Post,and the Dublin City Council pocket diary carriedpromotional articles.

I wish to take this opportunity to thank all the staff /sections who facilitated the promotion of the creditunion during the past year and look forward to theircontinued support again in 2005.

Michael Comiskey Committee Chairperson

REST IN PEACEDesmond Bourke Retired Staff, Dublin City CouncilJohn Brereton Retired Staff, Dublin City CouncilErrol Brien Housing Maintenance, Dublin City Council Frank Burke Retired Staff, Dublin City CouncilMalachy Carey Retired Staff, Dublin City CouncilEdward Chandler Main Drainage East Rd, Dublin City Council Declan Cunningham Dublin Fire Brigade, Dublin City Council Francis Davis Retired Staff, Dublin City Council Matthew Dawson Retired Staff, Dublin City Council James Egan Retired Staff, Dublin City CouncilAnthony Fagan Retired Staff, Dublin City CouncilPatrick Fitzgerald Retired Staff, Dublin City Council John Fitzpatrick Retired Staff, Dublin City CouncilNeil Fogarty Ex Dublin City CouncilMary Gray Family MemberDavid Griffin Sewers & Main Drainage,

Dublin City Council Richard Grimes Retired Staff, CDVECWilliam Haugh Cleansing Division, Dublin City CouncilMichael Hughes Retired Staff, Dublin City CouncilMaura Keegan Family MemberJohn Kiernan Retired Staff, Dublin City CouncilAndrew Kinsella Planning & Development,

Dublin City CouncilJames Leahy Retired Staff, Dublin City Council

Eilis Leap Family MemberMichael Loughlin Dublin Fire Brigade, Dublin City Council John Lowe Dublin Institute of Technology Gerard Lynch Retired Staff, Dublin City Council Joseph Malone Retired Staff, Dublin City CouncilWilliam Mateer Retired Staff, Dublin City Council Rita McAuley Family MemberChristopher McNamara Retired Staff, Dublin City CouncilBridget Mooney Retired Staff, Dublin City CouncilJohn Moore Roads Maintenance, Dublin City Council James Mulvaney Retired Staff, Dublin City Council Noel Murphy Ballymun Regional Office,

Dublin City Council Donal O'Connor North West Area, Dublin City Council Geraldine O'Driscoll Family MemberKathleen Patton Retired Staff, Dublin City Council Kenneth Robinson Water Division, Dublin City Council Brigid Sargent Family MemberYvonne Sharkey Law Agents, Dublin City Council Patrick Sleator Housing Maintenance, Dublin City Council George Slicker Parks North Central, Dublin City CouncilHugh Smith Retired Staff, Dublin City Council Brendan Spillane City Architects, Dublin City Council Joseph Timmons Retired Staff, Dublin City Council Philip Walsh Communications, Dublin City Council

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B U D G E T P L A N

The Budget Plan showed a steady increase inmembership and turnover during the pastfinancial year.

At year end almost 4,700 (circa 50% of themembership) were using the service andtogether they channelled €17m oftheir annual financial commitmentsthrough the scheme.

This flexible payroll based facilitymakes the payment of all recurringhousehold bills and expenses a much easier task andlisted hereunder are the main items that may beincluded in the scheme:

E.S.B., Telephone, TV Licence, TV Cable (NTL / Sky),Home Heating (Bord Gais, Oil, etc), Mortgage, HomeInsurance, Loan Repayment (Non Dubco), CarInsurance, Car Tax, Local Council Charges, EducationFees, Club / Sport Fees, Life Assurance, Statoil MotorFuel Card, Christmas Club, Holiday Club and AnnualTravel Insurance.

There are a variety of bill paying options (cheque,electronic transfer (EFT), Direct Debit, etc) availabledepending on your requirements and the paymentarrangements most suitable to the service suppliers.Members don't have to provide an exact estimate for

all bills as there is an overdraft facilityavailable.

This year we introduced the Annual TravelInsurance as part of the Members Program

and at €65 per annum for a family,subject to terms and conditions, it is amost competitive product when youconsider the comprehensive cover itcontains.

It is hoped that at the end of 2005we will have more members using the service andthose members who are only using the service for alimited number of items will have extended theirusage of the scheme to cover additional items ofrecurring household expenditure. We will continue toexamine ways in which the scheme can be mademore user -friendly and beneficial to Members.

To conclude I wish to thank on your behalf theBudget Team for their dedicated service throughoutthe year.

BUDGET FUND FLOW REPORT

2004 2003€ €

Opening Member Balances 1,133,692 1,172,187Add: Member Lodgements 17,736,754 16,387,089Deduct: Payments on Behalf of/or to Members -16,979,134 -16,425,584

Closing Member Balances 1,891,312 1,133,692

BUDGET INCOME AND EXPENDITURE ACCOUNTIncome Expenditure

2004 2003 2004 2003€ € € €

Budget Member Interest 64,184 67,332 Staff Costs 161,968 148,256Investment Income 72,474 90,377 Budget Plan Expenses 6,950 5,019Budget Account Fees 35,173 34,242 Contribution toInsurance Commissions 85,275 92,138 General OfficeOther Income 2,763 2,491 Running Costs 90,951 133,305

259,869 286, 580 259,869 286,580

* It should be noted that the above figures are an extraction from the Main Credit Union Accounts.

James GarlandCommittee Chairperson


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P L A N N I N G & D E V E L O P M E N T

The year under review proved yet again tobe a challenging one for the committeewith significant progress being made in anumber of areas. I set out below the mainareas the committee had on its agendaduring the year under review.

REPRESENTATION CUDA continues to provide, inter alia,an excellent representative service toyour Credit Union to ensure that weare well positioned to meet thesignificant challenges there are forCredit Unions in the 21st century.

Dubco continues to be affiliated to the Irish Leagueof Credit Unions pending the satisfactory resolutionof matters relating to the Savings Protection Schemewhich was the subject of a recent court case.

IT INFRASTRUCTURE The committee are currently overseeing theimplementation of an IT Infrastructure, including aweb-site, in the new premises which will positionDubco to enable it continue to provide the servicesas heretofore and to facilitate over the comingmonths the provision of some of the current serviceson-line for members who wish to avail of such aservice.

In conjunction with other Credit Unions who usethe same member transaction processing softwarethe committee are in the process of evaluating the

possibility of selecting a strategic partner to offerATM/EFT services.

STRATEGIC REVIEWIt was hoped to pilot an extendedMembers Insurance Program wherebywe would offer General & Life CoverInsurances but I am to advise that thishad to be delayed as IFSRA is stillconsidering the joint application fromprospective participating CreditUnions, including Dubco.

The committee propose in 2005 to continue workingwith the recently formed Dubco Focus Group andwe look forward to it being a source of significantfeedback to the Credit Union on the needs andrequirements of members.

Barry FennellCommittee Chairperson

CAR DRAW FUND FLOW REPORT

2004 2003€ € € €

Opening Prize Fund 280 217

Add: Member Contributions 353,792 278,237Deduct: Cost of Prizes12 Cars 217,020 219,474Cash Prizes 78,800 31,200

-295,820 -250,674Balance at 30/9/04 58,252 27,780Deduct December 2004 Prizes -58,000 -27,500

Prize Fund carried forward to 2004/05 Financial Year 252 280

CAR DRAW INCOME AND EXPENDITURE ACCOUNT

2004 2003€ €

Bank Deposit Interest & Sponsorship 492 7,375Less: Promotional Expenses -213 -1,400

Transfer to Income and Expenditure Account 279 5,975

* It should be noted that the above figures are an extraction from the Main Credit Union Accounts.

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Due to the unfortunate death of Matt Dawson,RIP, Committee Chairperson I took over the rolefrom March 2004. The Committee ensured thatadequate and value for money insurance is heldby Dubco to protect the assets of the creditunion. Set out below are the main areas ofactivities the committee concerned itselfwith during the financial year:

Property & Fidelity Insurance: The creditunion has renewed its cover with Allianz and the fidelitybond limit has been increased to €2m which is deemedmore than adequate cover for a Credit Union of oursize.

Loan Protection and Life Savings Cover (LP/LS):A review of this service took place during the year andto ensure that the scheme best serves Dubco and itsmembers some minor amendments to cover wereintroduced (e.g Loan cover limit of €100,000 wasintroduced, revised health declaration amounts, etc).Another review will take place in 2005 from theperspective of ensuring the scheme remainssustainable into the future.

Savings Protection Scheme (SPS): We await details ofthe implications of the recent decision by the HighCourt in favour of the Competition Authority and how

it will impact on the scheme currentlyadministered by the Irish League of CreditUnions. Dubco at all times will be acting inyour best interests.

General Insurance Services to members:Various types of insurance are availableto members (Homeunion Building &Contents, Annual Travel Product,Autounion, etc.). These products

provide long term value for members while maybenot always being the cheapest policies on the market.

As can be ascertained from the Planning &Development report we await IFSRA approval for anextended Insurance Product portfolio.

Health & Safety: The committee ensured that policieswere adequate to provide for the Health & Safety ofmembers and staff. Landsdowne Risk SolutionsLimited have been recruited by the Board to ensurecontinued health & safety compliance in our newpremises in Green Street.

I N S U R A N C E R E P O R T

Harry RoseCommittee Chairperson.

George FinglasCommittee Chairperson.

C R E D I T C O N T R O L

The principal function of this committee is theprotection of the assets of the Credit Union byensuring that loans are repaid in a timely mannerand in accordance with the signed loanagreement.

The committee are aware that membercircumstances change for a variety ofreasons but expect members to contactthe Credit Union to make mutuallyagreed repayment arrangementsreflecting the changed circumstances.The Members who ignore letters tocontact the Credit Union will bepursued through the legal channels thus increasingthe cost for the delinquent member.

As can be ascertained from the financial accounts itwas necessary to write off an amount of €59,218 for23 delinquent accounts. I am to assure the

membership that these defaulters are at presentbeing pursued for repayment through the legalchannels available to Dubco. While pursuing debts

legally is expensive it is in the long term interest ofall members to do so.

€14,092 of previously written off debtswere recovered during the year andagain this year our reserves have beenincreased to provide against possiblefuture bad debt write offs. Thisincrease in reserves is in line withprudent accounting practice and alsoreflects the increased Dubco loan book.


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S U P E R V I S O R Y C O M M I T T E E R E P O R T

The Credit Union Act 1997 requires the appointment of a

Supervisory Committee to oversee Directors in the

performance of their functions, examine books and

documents of the Credit Union and verify a percentage of

member account balances.

The Supervisory Committee held regular monthly meetings

over the past year and attended all monthly meetings of the

Board of Directors and where necessary the views of the

Committee were circulated to the Board.

With regard to the monitoring of member account

balances a total of ten percent of the membership were

circulated with audit notices. The response was, as in

previous years, disappointing. The Committee would

emphasise that the rules of your Credit Union require

that member account balances be checked and that it is

in your interest that you respond to any notices received.

The Supervisory Committee has over the past year carried

out a number of checks on the various aspects of the

running of the Credit Union. We are satisfied in all cases

that the relevant books and documents are being

maintained in accordance with the Credit Union Act and

the rules of your Credit Union.

The Board of Directors and the Premises Committee are

to be complimented on the heavy workload undertaken

by them in arranging the move to our new offices in

Little Green Street.

The duties of the Directors have been carried out at all times

in an efficient and workmanlike manner and within the rules

and regulations applying to Credit Unions.

Finally we would like to thank the Manager, John Kelly,

Executive Officer, Martina Kennedy and all the staff for

their patience and co-operation with our endeavours

throughout the year.

Bridget O’Connor Co-opted January 2004

Sean CaseySecretary

Michael MoylanChairperson

S AV I N G S AT Y E A R E N D ( € M )

Michael Moylan Chairman Supervisory Committee

Seamus CostelloResigned January 2004

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John KellyManager

Martina KennedyExecutive Officer

Nadine Carter-Kavanagh

Budget Administrator

Ben GillickSenior

Administrator

Ingrid Lee KinMember Services

Administrator

Breda Chapman Paul Corscadden Ingrid Curley Nicole Egan Olive Egan Edward Johnson

Ann Behan

Jane McBride Marie McDonagh Lee Murphy Jenny Staunton Carol Walsh Mary White

Catherine Healy

Janice Carter

Caroline Wilkinson

S TA F F

N O T E S

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REGISTERED OFFICELittle Green Street, Dublin 7.

MAIN BANKERSAIB Bank plc.,126 Capel Street, Dublin 1.

SOLICITORSJeremiah C. McCarthy & Co.,1 Clonskeagh SquareDublin 14.

AUDITORTom Fitzpatrick, B. Comm., F.C.A., A.I.T.I.,Fitzpatrick Morris Barrett & Co.,Chartered Accountants,74 Pembroke Road,Ballsbridge, Dublin 4.

OFFICE HOURS: 10.00am – 4.30pm Monday to FridayTel: 872 1066 Fax: 872 0677 Email: [email protected] Web: www.dubco.ie

SAVINGFACILITY

Avail of a highly competitivereturn in a secure and tax effi-

cient environment.

INSURED AT NO COST TO MEMBER.

BUDGET PLANEasy payment Facility for all

recurring expenses (Mortgages,ESB, Telecom, Fuel, Club &

Education Fees, etc.).

FOREIGNEXCHANGECash, Travellers

Cheques and Drafts.

LOANSAt Attractive rates of interest with

no hidden charges.

Interest Rates Charged

Standard Class Loan - 8.99%

Vehicle Class Loan - 7.99%

House Purchase/Bridging Finance - 6.99%

LOAN PROTECTION INSURANCE AT NO EXTRA COST.

OTHER SERVICESCar Insurances -

AXA-PMPA &

AUTOUNION

VHI/BUPA

Statoil Motor Fuel Card

MEMBERSPROGRAMME

HOME UNIONHome and Contents Cover insurance

ANNUAL TRAVEL INSURANCEWorldwide cover for members and

their families

DUBCO CREDIT UNION PROVIDING FINANCIAL INDEPENDENCE FOR MEMBERS

SERVICES

* Terms and Conditions apply to all Services

Dubco Credit Union Limited

Little Green StreetDublin 7

Annual Report & Accounts 2004

dubco credit union limited · o divine master, grant that i may ... ar dheis dé go raibh a anam....

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