east wall credit union limited and reports 2009/2010 ... 5% rebate on interest paid while these...

East Wall Credit Union LimitedEast Wall Credit Union LimitedREGISTERED OFFICE: Blythe Avenue, East Wall, Dublin 3

Telephone: 8744531 / 0894461009website: http://www.eastwallcu.ie

AnnualAudit and Reports

2009/2010

NOTICE OF ANNUAL GENERAL MEETINGThe 42nd Annual General Meeting of The East Wall CreditUnion Ltd. will be held on Monday, January 31st, 2011 at

8.00pm in the Function Room.Please arrive on time – for security reasons the doors are

closed once the meeting begins

East Wall CU A5 Reports 2010_Layout 1 20/12/2010 09:31

42nd Annual General Meeting

Agenda● Ascertain that a quorum is present

● Reading of minutes of the 41st Annual General Meeting and matters arisingfrom same

● Chairpersons’ Report

● Auditors Report and Financial Report for the period under review

● Committee Reports

● Election of Officers and Auditor

● Motions

● Other Business

● Members Grand Prize Draw

● Result of Elections and Close of Meeting

NOTETwo (2) vacancies currently exist on the Board of Directors. Those interested inbeing nominated should submit a request in writing using the form included on Page11 of this annual report booklet. Nominations may also be submitted from the floorduring the meeting.

Kathleen Brannigan

Secretary

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Chairpersons’ ReportOn behalf of the board of directors I am pleased to present to you the Annual Reports and Accountsfor the financial year ending on September 30, 2010.

Everyone is no doubt aware of the dire financial straits the country finds itself in. In this uncertainclimate your board of directors is obligated to ensure that your credit union remains as protected as ispossible in the event of any worsening of the situation.

In accordance with increasingly stringent guidelines issued by the financial regulator your credit unionhas to provide against the possibility of increased losses through future bad and doubtful debts. As aresult the amount of surplus funds available to distribute to members in dividends and interest rebateshas been dramatically reduced.

The main amounts being proposed to members at this Annual General Meeting are as follows:

● 1% dividend on regular share accounts● 5% rebate on interest paid

While these amounts are considerably less than what has been paid to members in recent years, theyare still on a par or better than what’s available from many other credit unions throughout Ireland.

Following a review after last year’s Annual General Meeting it was decided that the €1,300.00 deathbenefit insurance on all active accounts will be maintained as an operational expense.

On behalf of all involved with the running of your credit union I would like to take this opportunity tothank all members for their continued support through these difficult times.

Finally, I wish to express on your behalf a vote of thanks to the volunteers of the credit union for theirheroics in keeping the main office running during the severe bad weather spells that hit the East Wallarea in January and November last.

Best wishes for a better and happier 2011.

Barry Masterson P.C.

Chairperson

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Credit Committee ReportThe amount of new loans granted during the last financial year was on a par with the number issuedduring 2008/2009.

Every effort is made to grant all loans, but members are advised that in the current financial climaterestrictions are increasingly more common.

Members may be required to produce evidence of employment, financial status, identity, proof ofresidence and proof of address during the application procedure.

For members who have never had a loan, please note that your first loan will never be greaterthan your current savings balance. A regular repayment record needs to be followed on this loanbefore further applications can be considered. The minimum repayment period on a first loanis usually between 6 to 12 months and all first loans must be cleared in full.

A member may apply for a loan in any of the following ways;

● Directly to the Credit Committee/Loan Officer on a Thursday evening.● By filling out an application form and leaving this with the staff in the office at any time

during opening hours. ● By making an application by phone ● By making an application on the website

All necessary paperwork must be completed in detail at the office when you are collecting your loan.

Members are advised that from 2011, the East Wall Credit Union will be a contributing member of theIrish Credit Bureau. It is imperative that loan applications are now completed in detail particularlyin relation to disclosing what other outstanding debts a member may have. Failure to disclosethis information may disqualify a member from receiving a loan. As this credit check process cantake several days to complete we would ask members to give at least 7 working days before theyrequire their loan.

More details of what information is required when making a loan application can be found in the “AGuide to Credit Union Services” later in this report booklet.

On behalf of my fellow credit committee members I want to thank everyone who has supported theirCredit Union by taking out loans during the past 12 months.

Dolores Steele

Chairperson of the Credit Committee

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Membership Committee ReportDuring the period ending September, 30 2010 there were 102 new membership registrations. Of these27 were under the age of sixteen.

New members are advised to keep their accounts active as accounts with a zero balance are closedafter 3 months. All accounts with a share balance of less that €50.00 that show no activity for morethan 2 years may be closed and any balances held in a reserve account. Former members will need tocomplete full rejoining procedures to become a credit union member again.

Members are advised that in order to comply with regulations they may be asked to update theirpersonal details. This will entail production of photo identification, proof of residence and proof ofcurrent address.

Once again we ask members to regularly review details of their account beneficiary.

Liam Dunne

Supervisory Committee Report

The current supervisory committee were elected for a 3 year term at the annual general meeting heldin January, 2010.

Our duties include:

● To monitor all financial transactions.

● To ensure that current credit union regulations are complied with and enforced.

● To ensure all directors and volunteers are performing their duties fully and undertaking theirresponsibilities in the best interests of all members.

● To circularise randomly selected members to ensure their account details match those heldon the computer records.

We are satisfied that the running of your credit union is in accordance with the current regulations andall concerned have carried out their duties responsibility.

Evelyn Barry – Rita Dorman – Carmel Gormley

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Delinquency ReportIn the current financial climate the problem of delinquency is the major one facing all credit unions inIreland.

Members are urged to contact the office if they feel that are encountering a problem in meeting theirrepayment schedule. Every effort is made to accommodate changed financial circumstances.

It should be noted that in cases where delinquent members are making no reasonable effort to honourtheir debt to fellow members, then these cases are passed to a debt collection agent with instructionsto pursue the matter through the courts system.

Richard Sheridan

Home Union Report & Insurance Services Presently the Home Union service is only available to existing policy holders who chose to renewtheir policy with Allianz.

Home union policy holders who wish to make a claim or query their policy details should contactAllianz directly via the following numbers:

Policy Queries – 1850213213General Queries – 1850484848

Home Union members are strongly advised to ensure their premiums are paid on time, otherwise theirpolicy will be lapsed and they will not be covered by insurance. We are no longer able to processpremiums that are received after their due date.

All Credit Union members may also avail of the insurance services offered by CUsafe. This companyoffer home, motor, travel and pet insurance and well as a Health Cashplan product. Members can availof a discount by contacting CUsafe at 1850287233 or online at www.cusafe.ie

Liam Dunne – Cormac McCarthy

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A Guide to Credit Union Services

LOANSThe criteria for granting loans is based on the following -

● Ability to repay

● Record of repayments on previous loans

● Size and number of previous loans

● Savings record

Full personal and financial details are required when making a loan application and members may beasked to produce evidence of identity, permanent residence, current address and income.

The Credit Committee/Loan Officer is available to take applications from members on Thursday andthe majority of approved applications will be ready for collection within 7 working days. Membersmay sometimes be asked to clear an existing loan or raise their shares/savings before a new loan canbe processed and in some cases approval at a board of directors meeting is required. From 2011onwards all loans may be subject to a credit check with the Irish Credit Bureau.

SHARESThere are two types of share (or savings) accounts in your Credit Union.

● Regular Share Account (amounts up to €12,700)● Deposit Savings Account (amount in excess of €12,700)

Currently less than 3% of members would be eligible to have a deposit savings account. The dividendspaid on the deposit savings account are considerably less than that on the regular share account. WhileDIRT is not deducted from either of these account types, members are advised that all dividendsearned are classed as income by the Revenue Commissioners, and that they are under a legal obligationto declare these amounts.

Members may withdraw shares at any time, except in cases where said shares are secured againstloans. Please bring a form on ID when withdrawing in person.

Withdrawals may also be done by post – but not by fax or email, as an original signature is required.

INSURANCE COVER ON SHARES & LOANSShares deposited before a members 55th birthday are insured at a ratio of 1:1. Savings made between55 and 80 years of age are covered on a decreasing scale.

There is full loan coverage on all active loan accounts for members aged between 18 and 80 years.This means that in the event of a members’ death, any outstanding loan amounts are cleared.

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MAKING PAYMENTS Cash, cheque, bank draft and postal order payments are accepted during public office hours. Cheque,bank draft and postal order payments are accepted by post. Members are also advised that your creditunion will usually cash a cheque from a member providing he/she makes some payment to their accountand that there is a sufficient amount in the share account to cover the cheque balance. Restrictionsexist with regard to third party cheques.

Please note that it takes 10 working days for a cheque to be processed. Members should notethat in a situation where a cheque is returned from our bank as “cancelled” or “refer to drawer”etc., then a €10.00 fee will be charged to the relevant members account and the facility ofaccepting cheque payments may be withdrawn.

A member may set up a standing order to make payments to their account. You need to contact yourbank or building society and give them the following information

CREDIT UNION ACCOUNT NUMBER:80025163 (Sort Code 99-06-07)

CREDIT UNION BANK:Permanent TSB, 1 Fairview Corner, Dublin 3

Please ensure that your bank/building society include your full name and Credit Union accountnumber on all standing order transactions.

Important note – We would ask all members who are paying by standing order to checkwith us to ensure that their payments are being processed correctly. We are still receivinga couple of standing order payments that we have been unable to identify. The banksinitiating these payments are unable under data protection regulations to assist us inidentifying the members involved.

Private Members DrawThis draw continues to be popular amongst members. At last years’ AGM a draw took place for aGRAND PRIZE of €10,000.00. The winner was Ms. Margaret Rock.

The Grand Prize for the 5th Members Draw will be for €10,000.00

The top monthly prizes are €1,000, €500 and €250.Additional prizes of between €75 and €125 are also made.

No expenses relating to the organisation of the draws are taken from the prize fund. The draw is heldin the public office, usually on the last Thursday or Friday of every month. All winners are notifiedbut should any winner be out of reach their winnings are lodged to their accounts.

Any member not already signed up for the new members draw commencing atthe end of March, 2011 or unsure if they are entered should contact the officebefore Monday, March 22nd 2011. An entry form is available from the office orto download from the credit union website from February, 2011.

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Frequently Asked QuestionsHow much does my loan cost me?Interest is calculated on a loan at a daily rate of 0.029% on the current loan balance.

The following in a guide to the repayments due and interest costs on a loan.

€1,000.002 years = 104 weekly payments of €10.68 Total Interest Cost €110.00 approx3 years = 156 weekly payments of €7.49 Total Interest Cost €168.00 approx4 years = 208 weekly payments of €5.90 Total Interest Cost €227.00 approx5 years = 260 weekly payments of €4.95 Total Interest Cost €287.00 approx

€5,000.002 years = 104 weekly payments of €53.38 Total Interest Cost €551.00 approx3 years = 156 weekly payments of €37.43 Total Interest Cost €840.00 approx4 years = 208 weekly payments of €29.49 Total Interest Cost €1,134.00 approx5 years = 260 weekly payments of €24.77 Total Interest Cost €1,440.00 approx

€10,000.002 years = 104 weekly payments of €106.76 Total Interest Cost €1,103.00 approx3 years = 156 weekly payments of €74.85 Total Interest Cost €1,677.00 approx4 years = 208 weekly payments of €58.99 Total Interest Cost €2,270.00 approx5 years = 260 weekly payments of €49.54 Total Interest Cost €2,880.00 approx

260 weeks is the default period used when granting a loan. Most members pay more than the minimumpayment due and as a result will finish repaying their loan in a shorter time and therefore less interestwill be charged.

Who can have a loan?All adult members are eligible to apply for a loan.

New members must have 13 weekly payments or 4 monthly payments over a 13 week period beforethey can apply for their first loan. Members who have never taken a loan should be aware that theirfirst loan will only be equal to their savings balance. This loan must be cleared in full and the periodof repayment should usually be between 6 to 12 months. Subsequent loan limits are based solely on amembers’ ability to repay and on their loan repayment record. Members may be asked to provide proofon income and may require a guarantor to co-sign for their loan. Members under 18 years of age cannotbe granted a loan in excess of their shares – and a certificate of indemnity must be signed by anothermember of the credit union (usually an eligible adult family member). All loans are fully insured frommembers aged 18 to 80.

What are the office opening hours?

Thursday afternoon 2.00 – 4.30Thursday evening 7.00 – 9.00Friday evening 4.30 – 7.30Monday morning 10.30 – 1.00**** Open on Tuesday following bank holiday Mondays.

You may contact the office at 01-8744531 or 0894461009 during normal business hours on otherweekdays with any account queries or requests for information.

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FREQUENTLY ASKED QUESTIONS (continued)

Why should I keep my account active?Members are strongly advised to keep their Credit Union account active. Accounts with balances ofless than €50.00 that are inactive for a period of over 24 months may be closed and the balancestransferred to reserve. Inactive accounts with more than €50.00 in shares are monitored on a case-by-case basis. The shares from inactive accounts are available to the members concerned but they will berequired to complete rejoining procedures should they wish to avail of the full benefits of Credit Unionmembership. New members are advised that an initial deposit must be made within 3 months ofopening an account otherwise this account will be closed.

The Board of Directors makes the final decision as to whether an account is active or inactive. Inactiveaccounts are not covered by insurance.

How secure is the Credit Union?In the continuing climate of financial uncertainty, it is important for members to know how secure andsafe their money is. All investments made with credit union funds are in capital guaranteed productsand everything is done to ensure that returns are maximised.

With regard to the Credit Union office, the following safeguards and security measures are currentlyin place:

● Money is not kept on the office premises overnight.● Two separate monitored alarm systems are in operation at all times.● A monitored CCTV is installed on the premises (2011 onwards)● All members’ paper records are held in fireproof filing cabinets.● All computer records are securely firewalled and encrypted and are backed up offsite.● All confidential paper waste is shredded and securely disposed of.

Does the Credit Union have a website?A website for the East Wall Credit Union was introduced early in 2010.

The site is a work in progress and presently we are making efforts to make it easier for members toaccess the information online.

It is important to note that this website belongs to all credit union members so suggestions in relationto content and layout are encouraged and welcomed.

Can I conduct my financial business online?Members should be able to configure their own internet banking account to lodge money to the CreditUnions main bank account. It will then be subsequently transferred to a members credit union account.

Members who register on the Credit Union website can access their account details online – butpresently we are unable to offer an electronic withdrawal or bill payment service.

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east wall credit union limited and reports 2009/2010 ... 5% rebate on interest paid while these...

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