TRALEECREDITUNIONLTD. · 2014-06-08 · TRALEECREDITUNIONLTD. | ANNUAL REPORT 2013 TRALEECREDITUNIONLTD. | ANNUAL REPORT 2013 2 3 "As a member-owned organisation embedded in the local

TRALEE CREDIT UNION LTD. | ANNUAL REPORT 2013 TRALEE CREDIT UNION LTD. | ANNUAL REPORT 2013

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"As a member-owned organisation embedded inthe local community, Tralee Credit Union Limited,is committed to enhancing benefit and choice forits members through a range of financial services.These services will be delivered with integrity withinthe operating principles of the credit union movement.Tralee Credit Union will lead and promote bestpractice in everything it does.”

CONTENTS

Agenda 3

Directors Report 4 - 5

Statement of Directors Responsibilities 6

FINANCIAL STATEMENTS 2012/2013Auditor’s Report 7 - 8

Income and Expenditure Account 9

Balance Sheet 10

Cash Flow Statement 11

Notes to Financial Statements 12 - 19

Deposits and Investments 20

REPORTS

Board Oversight Committee 21

Credit Committee Report 22 - 23

Credit Control Committee Report 24

Youth Committee Report 25

Marketing & Development Committee Report 26

Membership Committee Report 27

Tax Treatment of Dividend 28

Nominations and Elections 29

Standing Orders 30 - 31

George LoweHon Secretary

AGMAGENDAMonday 9th December, 2013

Invocation - Credit Union Prayer

1. Acceptance of Proxies (if any) by the Board of Directors

2. Ascertain that a Quorum is present

3. Adoption of Standing Orders

4. Reading and Approval of the Minutes of 2012 AGM

5. Appointment of Tellers

6. Report of the Nominating Committee & Election of Directors, Supervisors & Auditors

7. Report of the Directors

8. Report of the (outgoing) Treasurer, Auditor and approval of the Treasurer’s Honorarium

9. Declaration of Dividend

10. Report of the Board Oversight Committee (formerly Supervisory Committee)

11. Report of the Credit Committee

12. Report of the Credit Control Committee

13. Report of the Membership Committee

14. Report of the Youth Committee

15. Report of the Marketing and Development Committee

16. Approval of League Affiliation Fees - 90c per member

17. Approval of the deduction of €4.50 Death Benefit Insurance per member

18. Proposal to amend Rules to Tralee Credit Union (see below)

19. AGM Members Draw

20. Announcement of Election Results

21. Any Other Business

22. Live Members Car Draw (subject to sufficient numbers)

23. Close of Meeting

Amendment to rule78 of the Rules ofTralee Credit UnionLimited

The credit union propose to change the Rule relating to the membership of the SupervisoryCommittee to have the effect of reducing the number of members on the Board OversightCommittee (formerly Supervisory Committee) from five members to three members. (This isin line with the Credit Union and Co-operation with Oversees Regulators Act 2012).

Resolution: The members of Tralee Credit Union Limited hereby resolve that under Rule 78of the Standard Rule, the Board Oversight Committee shall consist of three members.

Carlton Hotel8.00pm

NewOURMISSIONSTATEMENT

TRALEE CREDIT UNION LTD. | ANNUAL REPORT 2013

DIRECTORS REPORT


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Strategic Plan During the year your Board andstaff have put together a Strategic Plan to guide ourprogress over the next three years. This required agreat deal of effort from all involved and we areconfident that the outcomes from the resulting planwill be of value to you, our members. We wereguided by our market research and by some of youwho kindly sat on ‘focus’ groups to discuss ourcurrent and future service needs. Having completedthe plan we are happy that your credit union is in astrong financial position and well positioned for anyunexpected challenges.

Legislation In December 2012 the new CUCORAAct was signed into law. The Act made somefundamental changes to the ‘governance’ structureof the credit union. The Board size is now elevenmembers (reduced from thirteen), the SupervisoryCommittee is replaced by a three person BoardOversight Committee, the Manager becomes theChief Executive Officer and we are obliged to havededicated Risk, Internal Audit and Compliancefunctions. These changes will not affect how you willreceive your services, but over time will add to ouradministration costs. The Act also gives greaterregulatory powers to the Central Bank and itestablished REBO, the Credit Union RestructuringBoard. The purpose of this Board is to assist creditunions that may wish to amalgamate together orjoin with a larger credit union in a process known asa Transfer of Engagements. As you may recall fromlast year, we ourselves undertook a transfer ofengagements of Tralee C.I.E. Credit Union whichhas been very successful.

Lending 2013 saw the stability return to our loanbook with the value remaining steady at just over€45 million. This year we approved and paid out7,474 loans amounting to €20.5 million. Thisindicates that you, our members have increasedconfidence in the future and that you are nowbeginning to feel that maybe the worst of therecession is over. We see that you are using ourloans to buy and improve your homes, upgradeyour cars and fund your education, holidays andother needs. We are happy that you see the valuein our loan packages.

Mitchels Regeneration Company Loan; In 2011 TheBoard, following much deliberation, approved a loanof €1.5 million to the Mitchels Regeneration companyfor the construction of an Integrated ServicesCentre in the Mitchels area. The centre will housethe North & East Kerry offices, the Kerry Educationservices, Springboard and other services. Theproject is 50% funded by Pobal and Tralee CreditUnion’s loan will be secured with a first charge.

Saving 2013 saw a continued increase in savings.You increased your overall savings with Tralee CreditUnion by more than €5 million, an increase of 5%and your overall savings now stand at €107 million.You lodged in excess of €93 million with us duringthe year you withdrew €88 million. This means thatyou are using our saving services to match yourlifestyle needs, which is why we are here. Theturnover in our Access/Current account was €54million during the year which highlights the demand

for banking services. We are currently in negotiationwith Mastercard to bring you a Credit Union DebitCard facility in early 2014 that we feel will greatlyenhance our banking services.

Delinquency We have seen a fall in overalldelinquency during 2013 with a reduced amount ofloan write-off (€800k, 2013; €1.2m, 2012). Despitethe continued rise reported in mortgage arrears,repayments on our loans have continued toimprove. Having had an independent audit reportdone on our loan book we are happy that we do nothave to increase our reserve for bad and doubtfuldebts in the current year. In 2013 the amount of therecovery of debts already written off amounted toover €400k. We appreciate and value your loyaltyand encourage any member who is experiencingdifficulty repaying their loan to contact our team inCredit Control for assistance.

Services We are delighted with the response toour revamped website www.traleecu.ie You tell usit’s brighter, clearer and easier to navigate forinformation on all our services. We value yourfeedback, so please visit www.traleecu.ie. We’veseen an increase in the number of members usingour Online Banking service and are pleased that youvalue this service. You can now access youraccount online and also have access bysmartphone when you download our cuanywheremobile App. For further information on theseservices visit www.traleecu.ie

Debit CardsWe are continuing to work in a groupof eleven large credit unions to develop a debit cardwith Mastercard so that members can get access totheir Access/Current account. When in usemembers will be able to make payments for goodsand services in shops and access cash through thebanking network. We have a structure set up andare currently in discussions with the Central Bank inrelation to this service.

Dividend The Board are happy to recommend adividend on shares of 1.5% (1.5%; 2012). In thecurrent economic climate we feel that this is a verycompetitive rate and are pleased that while giving

you the same dividend rate as last year we arealso in a position to strengthen our reserves. Thisrate of dividend will result in a payback to you, ourmembers, of €1.53m. (€1.4m; 2012).

Retirements Due to work and personalcommitments we had the following directors retireduring the year, Brendan Treacy, Maurice O’Brienand Peter Pierse. Alan Laide and Paddy Lange retireat the AGM and are not seeking re-election. JohnNaughten is retiring from the SupervisoryCommittee. On behalf of members, Board,management and staff I would like to thank themfor their service to the credit union. I would like tomake special mention of Peter Pierse who servedbetween Board and Supervisory Committee for aten year period. He served two terms as Treasurerand his experience and commitment will be greatlymissed. We are pleased that Peter has agreed tocontinue to sit on our Investment Committee. Forfurther information on nominations see ournewsletter.

ThanksOn behalf of the Board of Directors I wouldlike to thank management and staff, led by our CEOFintan Ryan, for the efficient way that they run ourcredit union. The success that we have achieved islargely due to their dedication and commitment. Iwould like to thank my fellow directors andsupervisory committee for their time andcommitment in a year that has seen a lot ofstructural changes, important decisions having tobe made and for their positive input on your behalf.Our only purpose as a credit union is to provideservice to you, our members and to ensure thatyour savings are managed in a safe and prudentmanner. I would like to thank you for your continuedsupport. We look forward to 2014 with confidence.

Cathal TytherChairman

2013 Turning the CornerWe, the Board of Directors are pleased to report that your creditunion has had a very positive year with substantial savings growth,stability in our loan book and a significant reduction in loan writeoffs. Our audited accounts for this year show a very steadyincome and good control on costs.


STATEMENTOFDIRECTORS RESPONSIBILITIES

INDEPENDENT AUDITOR’S REPORTTOMEMBERS


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The Credit Union Act, 1997 (as amended)requires the directors to prepare financialstatements for each financial year which give atrue and fair view of the state of affairs of thecredit union and of the income and expenditureof the credit union for that period. In preparingthose financial statements, the directors arerequired to:

• Select suitable accounting policies andthen apply them consistently;

• Make judgements and estimates that arereasonable and prudent;

• Prepare the financial statements on thegoing concern basis unless it isinappropriate to presume that thecredit union will continue in business.

The directors are responsible for keepingproper accounting records which disclose withreasonable accuracy at any time the financialposition of the credit union and which enablesthem to ensure that the financial statementscomply with the Credit Union Act, 1997 (asamended).

They are also responsible for safeguarding theassets of the company and hence for takingreasonable steps for the prevention anddetection of fraud and other irregularities.

Signed on behalf of the Board of Directors:

Cathal Tyther and Grainne Foley-Joy

FOR THE YEAR ENDED 30th SEPTEMBER 2013 FOR THE YEAR ENDED 30th SEPTEMBER 2013

We have audited the financial statements ofTralee Credit Union Limited for the year ended30th September 2013 which comprise theIncome and Expenditure Account, the BalanceSheet, Cash Flow Statement and the relatednotes. These financial statements have beenprepared under the accounting policies set outin therein.

Respective responsibilities of directorand auditorsThe directors' responsibilities for preparing theAnnual Report and the financial statements inaccordance with applicable law and theaccounting standards issued by the AccountingStandards Board and promulgated by theInstitute of Chartered Accountants in Ireland(Generally Accepted Accounting Practice inIreland) are set out in the Statement of Directors'Responsibilities.

Our responsibility is to audit the financialstatements in accordance with relevant legaland regulatory requirements and InternationalStandards on Auditing (UK and Ireland).

This report is made solely to the credit union’smembers, as a body, in accordance withSection 120 of the Credit Union Act, 1997. Ouraudit work has been undertaken so that wemight state to the credit union’s members thosematters we are required to state to them in anauditor’s report and for no other purpose. To thefullest extent permitted by law, we do not acceptor assume responsibility to anyone other thanthe credit union and the credit union’s membersas a body, for our audit work, for this report, orfor the opinions we have formed.

We report to you our opinion as to whether thefinancial statements give a true and fair view andare properly prepared in accordance withGenerally Accepted Accounting Practice inIreland and the Credit Union Act, 1997. We alsoreport to you whether in our opinion properaccounting records have been kept by the creditunion. In addition, we state whether we haveobtained all the information and explanationsnecessary for the purposes of our audit andwhether the credit union's financial statementsare in agreement with the accounting records.

We read the other information contained in theannual report and consider whether it isconsistent with the audited financial statements.The other information comprises only theDirectors’ Report, the Credit Committee’sReport, the Credit Control Committee’sReport, the Supervisory Committee’s Report,Youth Committee’s Report, Marketing andDevelopment Committee’s Report and theMembership Committee’s Report. We considerthe implications for our report if we becomeaware of any apparent misstatements ormaterial inconsistencies with the financialstatements. Our responsibilities do not extendto any other information.

Basis of audit opinion We conducted ouraudit in accordance with International Standardson Auditing (UK and Ireland) issued by theAuditing Practices Board. An audit includesexamination, on a test basis, of evidencerelevant to the amounts and disclosures in thefinancial statements. It also includes anassessment of the significant estimates andjudgements made by the directors in the

STATEMENTOFSUPERVISORYCOMMITTEE'SRESPONSIBILITIES

FOR THE YEAR ENDED30th SEPTEMBER 2013

The Credit Union Act, 1997 (as amended) requiresthe appointment of a Supervisory Committee tooversee Directors in the performance of theirfunctions, examine books and documents of the creditunion and verify a sample of members’ balances.

Signed by the Chairman ofthe Supervisory Committee:

Gene Boyd

INCOMEAND EXPENDITURE ACCOUNTFOR THE YEAR ENDED 30th SEPTEMBER 2013


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preparation of the financial statements and ofwhether the accounting policies are appropriateto the credit union’s circumstances, consistentlyapplied and adequately disclosed.

We planned and performed our audit so as toobtain all the information and explanations whichwe considered necessary in order to provide uswith sufficient evidence to give reasonableassurance that the financial statements are freefrom material misstatement, whether caused byfraud or other irregularity or error. In forming ouropinion we also evaluated the overall adequacyof the presentation of information in the financialstatements.

OpinionIn our opinion the financial statements:• give a true and fair view of the state of the

affairs of the credit union as at 30thSeptember 2013 and of its income andexpenditure for the year then ended; and

• have been properly prepared in accordancewith Generally Accepted Accounting Practicein Ireland and in accordance with therequirements of the Credit Union Act, 1997.

We have obtained all the information andexplanations we consider necessary for thepurpose of our audit. In our opinion, properaccounting records have been kept by the creditunion. The financial statements are in agreementwith the accounting records.

In our opinion the information given in theDirectors' Report is consistent with the financialstatements.

For and on behalf ofJoan O’Sullivan & Co.Chartered Accountants& Registered Auditors12 Denny StreetTraleeCounty Kerry

7th November 2013

2013 2012

INCOME € €

Interest on members' loans 3,785,682 3,856,201Interest payable and similar charges note 8 (24,264) (19,061)Other interest income and similar income schedule 1 2,667,426 2,650,477Gains on disposal of Investments - 436,028Net interest income 6,428,844 6,923,645Other Income schedule 2 59,527 55,921

Total income 6,488,371 6,979,566

EXPENDITURE

Salaries and other wage costs 1,098,757 1,070,402Share & loan insurance 431,827 407,931Death benefit insurance 71,221 71,846Other management expenses schedule 3 944,911 838,136Depreciation 84,502 92,004Provision for bad and doubtful debts note 3 - 100,945Bad debts written off 815,820 1,171,642Bad debts recovered (401,913) (311,601)Total expenditure 3,045,125 3,441,305

Excess of income over expenditure for year 3,443,246 3,538,261

Add: Undistributed surplus at 1 October 5,008,885 2,775,200Transfer from unrealised reserve - 94,604

Less: Dividend paid note 8 (1,464,859) (946,180)6,987,272 5,461,885

Less: Transfer to Statutory Reserve note 7 (465,295) (353,826)Transfer to Additional Regulatory Reserve note 7 (286,645) (99,174)

Undistributed Surplus at 30 September 2013 6,235,332 5,008,885

A separate statement of total recognised gains and losses is not required as there areno gains or losses other than those reflected in the income and expenditure account.

On behalf of the credit union:

CEO: Fintan Ryan 30th Oct. 2013

Member of Supervisory Committee: Gene Boyd 30th Oct. 2013

Member of the Board of Directors: Grainne Foley-Joy 30th Oct. 2013



BALANCE SHEETAS AT 30th SEPTEMBER 2013

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2013 2012€ € € €

Reconciliation of excess of income overexpenditure to net operating cash flows

Excess of income over expenditure 3,443,246 3,538,261Transfer of Engagement Tralee CIE CU - 83,330Provision for bad and doubtful debts - 100,945Loans written off 815,820 1,171,642Depreciation 84,502 92,004Net cash flow from trading activities 4,343,568 4,986,182

New loans to members 20,525,938 (19,155,970)Repayment of members loans (19,862,894) 19,907,217

(663,044) 751,247

New deposits and shares by members 68,702,608 53,265,902Repayment of deposits and shares (63,204,038) (51,010,553)

5,498,570 2,255,349New investments made 35,918,548 71,610,366Investments redeemed or derecognised (43,501,459) (78,777,537)

(7,582,911) (7,167,171)Net increase in Debtors,prepayments and accrued income 89,285 (64,111)Net increase/(decrease) in other liabilities 43,851 8,946Net cash inflow from operating activities 1,729,319 770,442

CASH FLOW STATEMENTNet cash inflow from operating activities 1,729,319 770,442Dividend and interest rebate paid to members (1,464,859) (946,180)Capital expenditure (260,788) (18,504)Increase/(decrease) in cash 3,672 (194,242)Opening cash 1,602,568 1,796,810Closing cash 1,606,240 1,602,568

2013 2012€ €

ASSETS Notes

Cash and balances at bank 1,606,240 1,602,568Deposits and investments 2 81,940,842 74,357,931Loans to members 45,814,491 45,967,267Less: Provision for bad and doubtful debts 3 (4,833,185) (4,833,185)Tangible fixed assets 4 1,667,670 1,491,384Debtors, prepayments and accrued income 4,758 94,043

Total assets 126,200,816 118,680,008

LIABILITIES

Members' deposits 2,406,577 2,073,116Members' shares 5 104,710,480 99,545,371Other liabilities, creditors, accruals and charges 6 228,343 184,492

Total liabilities 107,345,400 101,802,979

Net worth 18,855,416 16,877,029

Represented byStatutory reserve 7 10,096,068 9,630,773Additional regulatory reserve 7 2,524,016 2,237,371Total regulatory reserve 12,620,084 11,868,144Income and expenditure reserve 7 6,235,332 5,008,885

Total reserves 18,855,416 16,877,029

On behalf of the credit union:

CEO: Fintan Ryan 30th Oct. 2013

Member of Supervisory Committee: Gene Boyd 30th Oct. 2013

Member of the Board of Directors: Grainne Foley-Joy 30th Oct. 2013

CASH FLOWSTATEMENTFOR THE YEAR ENDED 30th SEPTEMBER 2013



NOTES TO THEFINANCIAL STATEMENTSFOR THE YEAR ENDED 30th SEPTEMBER 2013

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1. STATEMENT OF ACCOUNTING POLICIES

1.1 ACCOUNTING CONVENTIONThe financial statements have been prepared on thegoing concern basis and in accordance withaccounting standards generally accepted in Irelandand Irish statute comprising the Credit Union, 1997.Accounting Standards generally accepted in Irelandin preparing financial statements giving a true and fairview are those published by the Institute of CharteredAccountants in Ireland and issued by the AccountingStandards Board.

1.2 REVENUE RECOGNITIONRevenue is recognised to the extent that it is probablethat the economic benefits will flow to the credit unionand the revenue can be reliably measured. Revenueis measured at the fair value of the considerationreceived. The following criteria must also be metbefore revenue is recognised:

Interest on members' loansInterest on members' loans is recognised whenpayment is received as specified in Section 110(1)(c)(i)of the Credit Union Act, 1997 (as amended) (i.e. on acash basis).

Investment incomeInvestment income is recognised when received orreceivable. Investments are recognised at cost lessany permanent diminution in capital value but ignoringany increase in capital value or encashment value untilrealised in the form of cash or cash equivalents.The specific investment products held by the creditunion are accounted for as follows:

• Bank deposits and other short term depositsThese are valued at the deposit amount plus anyaccrued interest and interest income is recognisedin the income statement on an accruals (time) basis.

• Term deposits and fixed interest investmentbondsTerm deposits and fixed interest investment bondswith fixed maturity dates are valued at the lower ofcost or encashment value and interest income isrecognised in the income statement when it isreceived or irrevocably receivable.

1.2 REVENUE RECOGNITION• Unit funds and equity investments

Unit funds, property funds and other stock marketinvestments are valued at the lower of cost ormarket value and dividend or other income isrecognised in the income statement when it isreceived or irrevocably receivable. Increases incapital value are not recognised until the asset issold or matures. Decreases in market value arerecognised immediately.

• Investments with return of capital guaranteeInvestments with return of capital guarantee arevalued at the lower of cost or market value but notlower than the capital guaranteed amount.Dividends or other income is recognised in theincome statement when it is received or irrevocablyreceivable.

• Bonds with guaranteed capital and variableinterest ratesInterest income is recognised as received. Somebonds pay high rates of interested in early yearsand lower rates in later years. Paying higheramounts in early years reduces (impairs) the capitalvalue of the bond. The capital value of the bondis tested annually for impairment and impairmentlosses are taken to the income statement.Impairment gains which reverse a previousimpairment loss are included in the incomestatement with any gains in excess of the cost ofthe product ignored until the bond matures.

1.3 TANGIBLE FIXED ASSETS &DEPRECIATIONTangible fixed assets are stated at cost lessaccumulated depreciation. Depreciation is provided onall tangible fixed assets, other than freehold land, atrates calculated to write off the cost or valuation, lessestimated residual value, of each asset systematicallyover its expected useful life, as follows:Freehold premises - straight-line over 50 yearsFixtures & fittings - straight-line over 10 yearsComputer equipment - straight-line over 4 years

Tangible fixed assets are subject to an annual reviewfor impairment in accordance with FRS 11 ‘Impairmentof fixed assets and goodwill’. Any impairment isrecognised in the income and expenditure account inthe year in which it occurs.

1.4 MEMBERS' SHARESThere is no limit to the number of shares which thecredit union is authorised to issue. The number ofshares held does not determine a member’s votingrights since each member is entitled to one vote onlyat any general meeting. The classification of sharecapital as liabilities in the balance sheet is consistentwith Financial Reporting Standard 25 'FinancialInstruments: Presentation’, and the subsequentInterpretation issued in relation thereto by the UrgentIssues Task Force (UITF).

This standard also requires that dividend and loaninterest rebate payments to members should beclassified as an interest expense and presented as acharge in arriving at the net surplus for the year. Thefinancial statements are not in compliance with thisstandard as the directors have recognised thesepayments as an appropriation of undivided surplus.This accounting treatment is consistent with traditionalcredit union practice and the Credit Union Act,1997(as amended).

1.5 PENSION COSTS• Defined benefit scheme:

The credit union participates in the Irish League ofCredit Unions Republic of Ireland Pension Schemefor six employees. This is a funded, multi creditunion, defined benefit pension scheme. Becausethe credit union is unable to identify its share of theassets and liabilities of the pension scheme, thecredit union, in accordance with the requirementsof Financial Reporting Standard 17, RetirementBenefits, and guidance from the League; isaccounting for the pension contributions as if thescheme was a defined contribution scheme.Contributions payable to the pension scheme arerecognised in the income and expenditure account.

• Defined contribution scheme:Pension contributions in respect of definedcontribution schemes for all new employees arecharged to the income and expenditure accountas they become payable in accordance with therules of the scheme. The assets are held separatelyfrom those of the credit union in an independentlyadministered fund. Differences between theamounts charged in the income and expenditureaccount and payments made to pension fundsare treated as assets or liabilities.

1.6 BAD AND DOUBTFUL DEBTSBad debts written off and bad debts recovered areincluded in the income and expenditure account.Provision has been made for doubtful debts, inaccordance with Resolution 49 of the Irish League ofCredit Unions. At the balance sheet date, the provisionincludes an additional bad debts provision asconsidered prudent by the directors.


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4. TANGIBLE FIXED ASSETS

Freehold Fixtures & Computer TotalPremises Fittings Equipment

€ € € €

COSTAt 1st October 2012 2,135,432 427,518 621,438 3,184,388Additions in year 226,000 4,058 30,730 260,788At 30th September 2013 2,361,432 431,576 652,168 3,445,176

DEPRECIATIONAt 1st October 2012 684,972 419,659 588,373 1,693,004Charge in year 47,229 11,917 25,356 84,502At 30th September 2013 732,201 431,576 613,729 1,777,506

NET BOOK VALUEAt 1st October 2011 1,450,460 7,859 33,065 1,491,384At 30th September 2013 1,629,231 - 38,439 1,667,670

2013 2012€ €

5. MEMBERS' SHARES

Regular share accounts 104,710,480 99,545,371

2013 2012€ €

6. OTHER LIABILITIES, CREDITORS, ACCRUALS & CHARGES

Trade Creditors and Accruals 200,902 162,890PAYE and PRSI 26,582 20,820DIRT 859 782

228,343 184,492

2013 2012€ €

2. DEPOSITS AND INVESTMENTS

Cash and bank deposits 51,546,403 46,688,805

Investments 29,005,013 26,356,834

80,551,416 73,045,639

Accrued interest 1,389,426 1,312,292

81,940,842 74,357,931

Included in Investment bonds is an amount of €28,383,614 (2012: €24,638,414) in respect ofbank and government bonds valued at the lower of cost or capital guaranteed amount. Theseinvestments are capital guaranteed if held to maturity by the credit union.

The market value of these bonds at 30th September 2013 with maturity dates between 2014and 2023 is €30,672,135 (2012 €26,350,066).

2013 2012€ €

3. LOAN ARREARS AND DOUBTFUL DEBTS

Opening provision for bad debts 4,833,185 4,596,473

Bad debts incurred during the year (815,820) (1,171,642)

Bad debts recovered during the year 401,913 311,601

Transfer from Tralee CIE CU - 135,767

Increase in bad debt provision 413,907 960,986

Closing provision for bad debts 4,833,185 4,833,185

The current provision in the financial statements is €4,833,185 (2012: €4,833,185)representing 10.55% (2012: 10.51%) of the total loan book. This amount exceeds theResolution 49 requirement by €2,096,060 (2012: €1,910,000). Loans rescheduled orrefinanced during the year amounted to €443,670 (2012: €829,066).



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7. MOVEMENTS ON RESERVES

Additional Income and UndistributableStatutory regulatory expenditure investmentreserve reserve reserve income reserve Total

€ € € € €

At 1st October 2012 9,630,773 2,237,371 5,008,885 - 16,877,029

Excess of income overexpenditure - - 3,443,246 - 3,443,246

Dividend paid - - (1,464,859) - (1,464,859)

Transfer from income andexpenditure account 465,295 286,645 (751,940) - -

At 30th Sept. 2013 10,096,068 2,524,016 6,235,332 - 18,855,416

Statutory reserveUnder the provisions of the Credit Union Act, 1997, at least 10% of each year's surplus mustbe transferred to the statutory reserve.

Additional regulatory reserveIn accordance with the Credit Union Act, 1997 (Section 85) Rules 2009, the credit union is required tomaintain a regulatory reserve ratio of not less than 10% with effect from 30th September 2009. Theregulatory reserve ratio is defined as the amount held in the total regulatory reserve of the credit union(i.e. statutory reserve and additional regulatory reserve) The current regulatory reserve in the financialstatements represents 10.00% (2012: 10.00%) of the total assets of the credit union.

Income and expenditure reserveThe income and expenditure reserve (formally known as the general reserve) is a reserve specificallyset aside in previous years to provide for future dividend and loan interest rebate payments.

Undistributable investment income reserveUnder the provisions of the ‘Guidance Note for Credit Unions on Matters Relating to Accounting forInvestments and Distribution Policy (April 2009)’ issued by the Registrar of Credit Unions, the creditunion is required to transfer investment income not receivable within 12 months of the balance sheetdate to a reserve which is not eligible for distribution. When such income becomes receivable within12 months of the balance sheet date, it can be transferred to the income and expenditure reserve.

8. DIVIDEND, INTEREST AND LOAN INTEREST REBATE

The followingdistributionswerepaidout fromthesurplusearned inpreviousyears:2013 2012

Rate € Rate €

Dividend on shares 1.50% 1,464,859 1.00% 946,180

Interest on deposits 24,264 19,0611,489,123 965,241

The directors recommend the following distributions to be paid in December 2013:Gross dividend on shares 1.50% 1,528,461 1.50% 1,480,878

1,528,461 1,480,878

Rates of interest paid on members' depositsA rate of interest of 2.3% (2012: 2.3%) was paid on members' special term deposits

9. RELATED PARTY TRANSACTIONS

Loans amounting to €118,854 (2012: €137,325) in total, were granted to officers of the creditunion during the period. At 30th September 2013, the balance outstanding on loans to officersamounts to €200,555 (2012: €223,131). At 30th September 2013, savings of officers amountto €630,407 (2012: €460,818).

10. RATES OF INTEREST CHARGED ON MEMBERS’ LOANS2013 2012

Per month APR Per month APROrdinary members' loans 0.75% 9.37% 0.75% 9.37%Special car loans 0.66% 8.20% 0.66% 8.20%Student loans 0.58% 7.25% 0.58% 7.25%Social finance loans 0.46% 5.67% 0.46% 5.67%Secured Loans 0.46% 5.67% 0.46% 5.67%

11. HONORARIUM TO TREASURER

The directors recommend that the Treasurer be paid a gross honorarium for the year ended30th September 2013 of €6,000 (2012: €6,000)




SCHEDULES TO THEFINANCIAL STATEMENTSFOR THE YEAR ENDED 30th SEPTEMBER 2013


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12. PensionsThe credit union participates in an industry-widepension scheme for employees (The Irish League ofCredit Unions Republic of Ireland Pension Scheme).This is a funded scheme of the defined benefit type,with assets invested in separate trustee administeredfunds. However, Tralee Credit Union Limited is unableto identify its share of the underlying assets andliabilities. Consequently, Tralee Credit Union Limitedaccounts for its contributions to the scheme as if itwere a defined contribution scheme. Contributionspayable to the scheme are recognised in the incomeand expenditure account.

An actuarial review of the fund is normally carried outevery three years by the scheme’s independent,professionally qualified, actuary. The actuarial reviewlooks at the past and future liabilities of the scheme.

The last completed triennial actuarial review wascarried out with an effective date of 1st March 2011using the Projected Unit Credit method. The principalactuarial assumption used in the valuation was theinvestment return would be 1.75% higher than theannual salary increases. The market value of thescheme’s assets at 1st March 2011 was €107.3m.The actuarial valuation disclosed a past service deficitof €28.7m on the long term funding basis at 1stMarch 2011. This actuarial review recommended along term funding rate of 22.5%. The cost of riskbenefits is paid in addition to this rate.

It should be noted that the above rate is based on thelong term funding objectives.

As a separate requirement under section 56(1) of thePensions Act 1990, the scheme actuary must carryout a separate valuation every 3 years and produce afunding certificate for submission to the PensionsBoard within 9 months of the effective date of thevaluation. The purpose of the certificate is to certifywhether or not the assets of the scheme at theeffective date are sufficient to meet the liabilities of thescheme based on the assumption that the schemewas wound up at that date.

An actuarial funding certificate, certifying the schemedid not meet the statutory minimum funding standardwas submitted to the Pensions Board with an effectivedate of 1st March 2009.

Consequently, the trustees submitted a new fundingproposal, to address the shortfall in funding, to thePensions Board. The submitted funding proposal isdesigned to ensure that the scheme could reasonablybe expected to satisfy the funding standard as at 1stMarch 2019 and provides for a retirement contributionrate of 27.7%. The cost of risk benefits is payable inaddition giving a total contribution rate of 30% ofpensionable salary. This funding proposal wasapproved by the Pensions Board.

For the scheme year ended 28th February 2013 theactuary advised that having been directed by thetrustees and employer, in light of the current economicoutlook, that it was appropriate to revise theassumption for salary increases over the remainingterm of the funding proposal from 5% pa to 3.25% pahe was reasonably satisfied that the scheme will satisfythe funding standard as specified in Section 44 of thePensions Act, 1990, at the date of 1st March 2019specified by the Pensions Board under Section 49(2)(a) of the Act for the purpose of the existing fundingproposal.

The scheme’s solvency position in accordance withthe aggregate cover for total funding standard liabilitiesas at 28th February 2013 was 97.5%.

13. Insurance against fraudThe credit union has insurance against fraud incompliance with Section 47 of the Credit Union Act,1997 (as amended) in the amount of €5,200,000.

14. Approval of financial statementsThe financial statements were approved by the Boardand authorised for issue by the Chairperson of theBoard on 30th October 2013.

2013 € 2012 €

SCHEDULE 1 - OTHER INTEREST INCOME AND SIMILAR INCOME

Deposit and Investment income 2,667,426 2,650,477Total per income and expenditure account 2,667,426 2,650,477

Analysed as follows:Received at the balance sheet date 1,278,000 1,368,019Receivable within 12 months of the balance sheet date 1,389,426 1,282,458

2,667,426 2,650,477

SCHEDULE 2 - OTHER INCOME 2013 € 2012 €

Entrance fees 1,099 945Commissions 24,674 21,096Investment intermediary commission 33,754 33,660Miscellaneous income - 220Total per income and expenditure account 59,527 55,921

SCHEDULE 3 - OTHER MANAGEMENT EXPENSES 2013 € 2012 €

Treasurer's honorarium 6,000 6,000Rent and rates 26,298 25,537Lighting and heating 19,410 18,327Repairs, renewals and cleaning 23,017 14,930Security 9,276 22,728Printing and stationery 41,208 41,115Postage and telephone 53,423 50,285Trade Subscriptions 5,764 1,975Promotion Youth and Scholarship Expenses 81,724 83,414Chapter expenses 13,500 4,000AGM and convention expenses 37,363 23,863Travel and subsistence 17,643 22,629Bank charges 111,579 75,251Irish Credit Bureau Costs 6,746 8,523Audit fee 23,073 23,196General insurance 30,924 29,452Pension 90,933 99,765Other personnel costs 41,241 36,047Legal and professional fees 154,150 103,094Computer maintenance 42,208 68,190Miscellaneous expenses 8,270 8,312Affiliation fees 28,356 54,116Regulatory levy 72,805 17,387Total per income and expenditure account 944,911 838,136


DEPOSITS AND INVESTMENTS BOARDOVERSIGHTCOMMITTEE REPORT 2013(FORMERLY SUPERVISORY)


2120

lending (although the outcome for 2013 was betterthan initially anticipated), continue to be addressedthrough the credit union’s resources and targetedactions.

Major changes are occurring for the credit unionmovement with the enactment of the Credit UnionCooperation and Overseas Regulators Act 2012.With effect from 1st October 2013, the SupervisoryCommittee has been replaced by the BoardOversight Committee and the main focus of thiscommittee will be on the performance of the Board.Other work, such as checking of members’balances, will be carried out by the newly-createdinternal audit function. This is part of the wide-ranging changes which are now occurring toensure better governance across all credit unions.

John Naughten has decided to retire from theSupervisory Committee and will not seek electionto the Board Oversight Committee or the Board.John was an invaluable member of our committeebringing his commercial experience to our detailedworkings. His sense of good humour and his abilityto assess matters carefully were valuable assets forour Committee and the credit union generally. Wewould like to thank John for his contribution andwish him well for the future.

We would also like to acknowledge the supportprovided by the Board and the management andstaff in helping us to carry out our work during2013. This support was much appreciated andmade the performance of our role less demanding.

Gene Boyd (Chairman)

Throughout the year routine testing of areas suchas members’ balances, loan applications,investments, membership applications and areview of procedures around the write-off of loanbalances owing were all carried out. All of our workwas reviewed at our monthly meetings which wereheld throughout 2013. A member of the Committeeattended each of the board meetings held duringthe year. Three meetings of the SupervisoryCommittee were held with the Board to share ourfindings and discuss general performance. Thesemeetings were constructive with good engagementand interaction with the Board.

During the year, the Committee carried out amembers’ accounts verification exercise coveringloan and share balances with the main focus thisyear on share balances greater than €10,000. Thetotal sample chosen was just over 10% ofmember’s accounts. The response rate was over24% which was well up on the 2012 response rate(just less than 18%). Responses received weresuccessfully reconciled to the records held at thecredit union which again confirms the strongunderlying control of members’ balances.

Overall, resulting from our work and observations,we would like to state that we believe that theBoard is maintaining good control over costs andensuring policies and procedures are appropriatefor the successful running of the credit union.General economic difficulties continue to impact onthe performance of the credit union but theproblems which arise, particularly in the areas ofbad debts and a lower than desirable level of

2013 € 2012 €

Allied Irish Bank 5,412,506 5,195,660

Bank of Ireland 2,553,047 12,319,815

EBS 3,505,309 3,685,687

Ulster Bank 5,171,658 3,605,022

Irish Life & Permanent 13,452,185 14,905,738

Central Bank Reserve 1,133,854 904,781

Prescient Investment Managers (Ireland) 750,000 750,000

Merril Lynch - 1,100,000

Government Bonds (Various rates apply) 20,149,040 16,403,000

I L & P 4% 10/03/15 1,994,425 1,994,425

AIB 5.625% 12/11/2014 498,744 498,744

AIB 4% 19/03/15 1,998,000 1,998,000

Bank of Ireland 4% 28/01/2015 3,743,500 3,743,500

KBC 10,064,213 5,770,335

ILCU CTMF 174,763 170,932

Rabbobank 9,930,472

Goodbody cash account 19,700

80,551,416 73,045,639

INVESTMENT Peter Pierse, Grainne Foley-Joy, Martin Moore, Tom Lawlor,COMMITTEE: Paddy Lange, Fintan Ryan and Katrina Rice.

COMMITTEE MEMBERS: Gene Boyd (Chairman), John Naughten, Catherine Moylan,John Harrington and Philip O’Sullivan

This year has seen the Board Oversight (formerly Supervisory)Committee continuing to monitor the activities of the credit union.As a general overview, this work revealed little of concern to theCommittee and this situation, I believe, reflects well on the generalmanagement of your credit union.


22 23

Reduced demand for loans amongst ourmembership over the past number of yearscontinues to present a challenge for the CreditUnion. However total loans issued during theyear amounted to €20.5 million, which is anincrease of 7% on 2012 figures. We hope thatthis trend will continue as the economic situationstabilises.

At all times our objective is to consider each loanon its own merits and to give each applicationdue consideration. The primary factor we takeinto consideration is the member’s ability torepay the loan and it is vitally important that wehave a full financial picture of our member’sability to repay. We try to balance our membersoverall level of debt with immediate need foraccess to credit and seek to ensure that alldecisions are made in the best interest of bothour members and that of the Credit Union.Ongoing staff training, use of the Irish CreditBureau and regular review of lending policies

and procedures ensures that fair and prudentlending decisions are being made. Over thenext number of months we will be developingboth a dedicated lending area and lending teamwithin the credit union which we hope willprovide you with an improved level of service.

At the request of the Central Bank we have hada full loan book review during the month ofOctober. The review expressed satisfaction withthe policies and procedures in place in relation toapproving loans and with the adequacy of theprovisions held in relation to bad debts.

Our thanks to our members, management, staffand fellow Board members for their input andsupport during the year and we look forward toa busy 2014.

Anna Brosnan (Chairperson)

CREDIT COMMITTEE REPORT


2013 2012

Type of Loan Number Value of Number Value of Increase Increaseof Loans Loans (€) of Loans Loans (€) +/- (€) +/- (%)

Saver's Loan 154 993,967 161 1,000,466 -6,498 -1%Business 150 964,482 129 721,276 243,206 34%Car Related 1666 5,962,758 1562 5,751,015 211,743 4%Computer 52 44,604 29 24,309 20,295 83%Debt/Bank Loans/Bills 418 1,032,817 407 900,637 132,180 15%Education 645 1,869,996 626 1,484,252 385,744 26%Green 8 32,980 11 48,591 -15,611 -32%Home Loan 2385 5,861,363 2197 5,193,344 668,019 13%Holiday 586 867,328 550 760,543 106,785 14%Medical 178 330,694 160 271,779 58,916 22%Personal Finance 199 192,215 189 197,756 -5,541 -3%Secured Loan 21 978,651 26 1,342,124 -363,473 -27%Social Finance Loan 2 45,000 0 0 45,000Special Occasion 742 613,336 581 463,686 149,650 32%Wedding 182 680,411 185 878,623 -198,212 -23%Other 86 55,334 132 117,568 -62,234 -53%

Total 7,474 20,525,938 6,945 19,155,969 1,369,969 7%

COMMITTEE MEMBERS: Anna Brosnan (Chairperson), Mary O’Connell and Grace Moore.

This year Local Members borrowed over €20.5million.A badly needed Boost to the Local Economy.

We encourage all members to consider Tralee Credit Union as aplace to borrow and do business. Our doors are open, so ifyou need a loan use your credit union. During 2013, we issued7,474 loans with a total value of €20.5 million. We helpedstudents go to college, couples to get married, members to dohome renovations and change their cars or manage their financesby clearing other debts.

The main focus of the Committee is to ensure that our membersrepay their loans in accordance with their agreements in orderto protect your money, your savings.


The Committee is pleased to report that despitethe economic circumstances the year has seena number of positive results. While our numberof loans in arrears has not reduced significantlyit has however stabilized and our bad debtrecoveries are coming in steadily. This is alsosupported by our lending team being morecautious in the assessment process.

We are keeping our Credit Control Departmentwell resourced and we continue to concentrateon contacting members early before too manyarrears accrue on the loans. Our staff are highlytrained and experienced in dealing with thissensitive area and we would encourage anymember in difficulty to contact us. We willendeavor to help our members resolve anyfinancial difficulties they may be experiencing.Any members that fail to make contact or do notrespond are pursued diligently to come to aresolution. In some cases this may result in legalproceedings being initiated however this onlyhappens when all other avenues have beenexhausted.

We continue to receive payments from abroadfrom our members who are travelling or mayhave emigrated. This is a great reflection ofour members commitment to Tralee CreditUnion. We will continue to improve our servicesto help members avail of same and continue tomeet their obligations regarding loanrepayments.

2012/2013 2011/2012

Total loan book €45,814,491 €45,967,267

Loans written off €815,820 €1,171,642

Bad Debt recovery €401,913 €311,601

Bad Debt provision €2,737,125 €2,923,185

Additionalprovision €2,096,060 €1,910,000

The Committee would like to thank all of ourmembers who continue to meet their loanobligations, many working through difficultfinancial times. We also thank the Credit Controlstaff for their continued hard work and to thewider staff and management for their help andcooperation throughout the year.

If you are having difficulties with yourloan repayments, ACT NOW.

Contact Credit ControlTel. 066 712 2373 (Dial 2)or email: [email protected]

Cathal Tyther (Chairman)

The following are some of the key figuresrelated to Credit Control for the year:

CREDIT CONTROLCOMMITTEE REPORT


24 25

COMMITTEE MEMBERS: Cathal Tyther (Chairman), Tom Lawlor, Carmel Mulcahy,Marcella Herlihy (Credit Control Officer)

On behalf of the Youth Committee I would like to thank Directors, management, staff and volunteersand especially Orla O’Shea our Youth Development Worker for their dedication and hard work overthe year. Finally I would like to say a huge thank you to all the schools, parents, teachers and youthgroups for your ongoing support of our Youth Services.

George Lowe (Youth Officer)

This year has been another busy year for Tralee Credit Union’sYouth Committee. We have seen another Secondary School setup a Credit Union in their School, over 22 youth groups havebenefited from Youth Unions scholarship fund worth €4,000 andEllie has visited over 3,000 primary school children.

YOUTHCOMMITTEEREPORT

Kilmurry National School, Castleisland Presentation Secondary Castleisland

Cloda Curran who received a merit at this year’sNational Competition in the 18’s and over category.

Ardfert N.S. Under 11’s National Schools Quiz Team

COMMITTEEMEMBERS:

George Lowe, Youth Officer,Orla O’Shea, Youth Development Worker,Suzanne Ennis, Marketing and Development Officerand Tina Newsome McDonnell, Youth Volunteer.

We are delighted to report that our membership continues togrow with membership growing by 1,897 during the year. Weextend a welcome to all our new members and encourage youto use the services on offer.

As a credit union we seek to ensure that thecredit union difference remains intact with‘service to our members’ remaining as thecornerstone of what we do. We are working toensure our services remain relevant and costeffective and we aim to provide you with a viablealternative banking solution. We reorganised ourwebsite and launched our online bankingservices during the year and would encourageall our members to visit our website and educatethemselves about the services offered by TraleeCredit Union.

As your Membership Committee we have spenttime each month ensuring that all newmembership applications comply with therequirements of the Criminal Justice Acts andthat each new member is part of our commonbond. Our common bond is defined as peoplewho work or live within the postal district ofTralee or in any of the parishes of Castleisland,Firies, Ballydesmond and Killeentierna. TheCriminal Justice Acts requires that allmembership applications are accompanied byphoto identification (such as current passport ordriving licence), proof of address (most recentutility bill) and proof of PPS number.

Also in compliance with the Criminal JusticeActs we are required to maintain ‘updated’identification on file for all of our members.Thank you to all of our members who replied toour letters in June requesting up to datephoto identification and address details. This is

something that we will require all our membersto update periodically.

Nominations - Have you updated yourNomination Form?Savings (up to a maximum of €23,000) in acredit union can be subject to a nomination. Thismeans that on the death of the member, his/hersavings are distributed in accordance with theirnomination. These savings do not form part ofthe estate of the deceased member. Marriageautomatically revokes a nomination. We wouldencourage members to keep their nominationsup to date.

Finally we would like to thank both managementand staff for their assistance during the year.

Tom Lawlor (Chairman)

MEMBERSHIPCOMMITTEE REPORT

MEMBERSHIP AS AT 30th SEPT. 2013

Age Breakdown 2013 2012 DiffNew born-10 years 1,924 1,743 18111 to 20 years 2,577 2,360 21721 to 30 years 5,170 5,050 12031 to 40 years 6,062 5,683 37941 to 50 years 5,124 4,827 29751 to 60 years 4,435 4,160 27561 to 70 years 3,380 3,171 20971 to 80 years 1,673 1,541 13281 to 90 years 566 491 7591 to 100 years 54 42 12

30,965 29,068 1,897

COMMITTEE MEMBERS: Tom Lawlor (Chairman), Mary O’Connell and Helen Butler.


MARKETING&DEVELOPMENTCOMMITTEE REPORT


26 27

COMMITTEE MEMBERS: Jacintha Eustace, Chairperson, Fintan Ryan, CEO,Suzanne Ennis, Marketing and Development Officer, Mike Lynch, Loans OfficerAlan Laide, Tina Newsome McDonnell, Paul Culloty.

2013 has been another busy year for the Marketing andDevelopment Committee with the main focus of promoting loansto maintain our loan book, educating members on the creditunion ethos and in introducing and promoting new services.

We would like to thank the local media, all in Radio Kerry, The Kerryman, Kerry’s Eye, TraleeAdvertiser and Outlook Publications for giving us such positive coverage in the past year.Finally, I wish to thank my colleagues on the marketing and development committee for theirhard work over the past year.

Jacintha Eustace (Chairperson)

NOMINATIONS AND ELECTIONS

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The AGM of 2012 agreed to reduce the numberof Board members from thirteen to elevenmembers. Maurice O’Brien and Brendan Treacyresigned during the year and were not replacedin accordance with the rule change.

Peter Pierse and Alan Laide resigned duringthe year. Aoife Lynch and Mairead Casey wereco-opted during the year to fill the vacancies andunder rule 67 retire and seek re-election. PaddyLange retires and do not seek re-election. UnderRule 136, the Nominations Committee proposesGene Boyd to fill the vacancy.

In accordance with Rule 66, George Loweand Grainne Foley-Joy retire and being eligibleseek re-election.

Board Oversight CommitteeJohn Naughten and Gene Boyd retire and donot seek re-election. In accordance with Rule 81John Harrington retires and being eligible seeksre-election.

AuditorsUnder Rule 153 Joan O’Sullivan & Co. beingeligible seeks re-election.

Any further nomination shall be in writing, signedby the Proposer and Seconder, with the consentof the nominees who shall be over 18 years ofage (all but the Auditor must be members ofTralee Credit Union Ltd.) and must reach theSecretary not later than 4.00pm Friday 6thDecember, 2013.

NOMINATION FORM - DIRECTOR - ANNUAL GENERAL MEETING 2013

We, the undersigned, nominate for Director of Tralee Credit Union Ltd.

Name of Nominee (Block Capitals): _________________________________________________________

Address: _______________________________________________________________________________

Signed (Proposer) ___________________________ Account No. _______________________

Signed (Seconder) __________________________ Account No. _______________________

Consent of Nominee: I, as a member, hereby agree to be nominated as a candidate for Directoron the Board of Directors and confirm that I am of full legal age.

Signed (Nominee) _____________________ Date ________________ Account No. ________________

NOMINATION FORM - SUPERVISORY COMMITTEE - ANNUAL GENERAL MEETING 2013

We, the undersigned, nominate for the Supervisory Committee of Tralee Credit Union Ltd.

Name of Nominee (Block Capitals): _________________________________________________________

Address: ______________________________________________________________________________

Signed (Proposer) ___________________________ Account No. _______________________

Signed (Seconder) ___________________________ Account No. _______________________

Consent of Nominee: I, as a member, hereby agree to be nominated as a candidate for theSupervisory Committee and confirm that I am of full legal age.

Signed (Nominee) _____________________ Date ________________ Account No. ________________


Members are responsible for their own tax affairs. Income in the form of Dividend and DepositInterest is taxable income and the Board of Directors strongly advise all our members to takethe time to consider the tax implications of this income using the information below.

(a) Regular Share Account: With a RegularShare Account your Dividend is earned gross ofDIRT. You must declare to the RevenueCommissioners your Dividend in your annual taxreturn (even if you are exempt from tax). The taxpaid on this Dividend will depend on yourpersonal rate of tax: 0%, 20% or 41%.

(b) Special Share Account: Tralee CreditUnion will automatically deduct the DIRT tax onyour Dividend. You have no further tax liability andyou do not need to declare it in your annual taxreturn. The current DIRT rate for all Special ShareAccount holders is 33% regardless of yourpersonal rate of tax.

The above situation will change from 1st January2014 due to provisions contained in Budget 2013regarding Deposit Interest Retention Tax. From1st January 2014 ALL credit union share dividendand deposit interest paid to members will besubject to DIRT, with the exception of dividend orinterest paid to members who are exempt fromDIRT. The only members who can be exempt are:

• Members aged over 65 whose total income isless than the relevant limit, currently €18,000for an individual and €36,000 for a marriedcouple. For married couples, only one of thespouses needs to be over 65. To avail of thisexemption, you must sign a self-declarationform DE1. This form is available in yourcredit union and is a declaration that you(or your spouse) are aged over 65 and thatyour total income is less than the relevant limit.

SHARE ACCOUNTS - two types of share account exist.

• Members who are permanently incapacitated.Such members should either contact theirlocal Revenue Commissioners office directlyor contact a service body such as the IrishWheelchair Association. Credit Unions haveno role in approving the exemption in thesecases.

If you do not complete the self-declaration form,the credit union will be obliged to deduct DIRTfrom your dividend or interest. You will then haveto apply directly to the Revenue Commissionersfor a refund of this DIRT (if you are eligible). If youare exempt from paying tax please fill in a DE1form in our offices.


TAX TREATMENTOF DIVIDEND

28

DID YOUKNOW...We now accept Debit Cards byphone or at our Tralee and

Castleisland office to repay your loan.

If you have a loan, try and pay a bit extraevery time you make a repayment.This will reduce your loan interest,clear your loan quicker and give yousome breathing space if you do

miss a payment.

30

11. The chair may at his/her discretion, extendthe privilege of the floor to any person whois not a member.

12. Matters not covered by the Agenda maybe introduced under ‘Other Business’ atthe discretion of the chair.

13. The chairman’s decision on any matterrelating to these Standing Orders orinterpretation of same shall be final.

14. No member shall have more than one voteon each question at any general meeting ofthe credit union or any adjournment thereofirrespective of his/her shareholding or thenumber of accounts in his/her name in thecredit union provided, however, that exceptin voting at elections, the presidingmember shall have a second or castingvote in the event of equality of voting.Voting by proxy shall be allowed only whena member other than a natural personvotes through a representative, who is amember of the group, duly authorised inwriting for that purpose and accepted assuch by the board of directors.

15. Any matter to be decided upon by vote atthe AGM shall, unless otherwise expresslyprovided for by law or the rules, bedecided upon by simple majority.

1. VOTINGEach member shall be entitled to one voteirrespective of his/her shareholding, inaccordance with section 82(2) of the CreditUnion Act, 1997 (as amended)

2 - 3 ELECTION PROCEDURE

2. Elections to the board of directors, to theboard oversight committee and theposition of auditor shall be by majority voteand by secret ballot.

3. When nominations are announced tellersshall be appointed by the chair and ballotpapers shall be distributed. Nominationsshall be in the following order:(a) nominations for auditor; (b) nominationsfor members of the board oversightcommittee; (c) nominations for directors.When voting is completed, the votes shallbe taken and tallied by the tellers.Any ballot paper which contains votes formore than the number required to beelected shall be void. All elections shall beby secret ballot and by majority vote.When the votes have been counted by thetellers, the results shall be announced bythe chair. In the event that all vacancies arenot filled by the first ballot further ballotsshall be taken as required. In the event ofan equality of votes between candidatesfor the remaining vacancies not filled inaccordance with the above procedure onefurther ballot shall be taken and should thatballot fail to determine the issue, thevacancies shall be filled by lot from amongsuch candidates having an equality ofvotes.

4 - 9 MOTIONS4. All motions from the floor of the AGM must

be proposed and seconded by memberspresent at the AGM and moved by theproposer. If the proposer is absent whenthe motion is called, the motion shall bedeemed to have failed.

5. A proposer of a motion may speak for suchperiod as shall be at the discretion of thechair of the meeting and shall have theright of reply before the motion is put to themeeting for a vote.

6. In exercising his/her right of reply, aproposer may not introduce new material.

7. The seconder of a motion shall have suchtime as shall be allowed by the chair tosecond the motion.

8. Members are entitled to speak on any suchmotion and must do so through the chair.All speakers to any motion shall have suchtime as shall be at the discretion of thechair.

9. The chair shall have the absolute right todecide at any time when a motion hasbeen sufficiently discussed and may putthe motion to the meeting giving theproposer the right of reply before doing so.

10 - 15 MISCELLANEOUS10. The chair of the board of directors shall be

the chair of any general meeting, exceptwhere he/she is not available, in whichcase it shall be the vice-chair, exceptwhere he/she is not available, in whichcase the board shall decide amongstthemselves who shall act as chair of anygeneral meeting.

16.SUSPENSION OF STANDINGORDERSAny one of these Orders or all of theseStanding Orders may be suspended on amotion to this effect receiving a two-thirdsmajority of those present and entitled tovote.

17.ALTERATION OF STANDING ORDERSStanding Orders may be amended oraltered at a general meeting and only if amotion to this effect has received a two-thirds majority of those present and voting.

18.ADJOURNMENTSAdjournments of the AGM shall take placeonly in accordance with section 81(1) ofthe Credit Union Act, 1997 (as amended).


STANDINGORDERS


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45 - 47 Ashe Street Tralee Co. KerryTel : 066 712 2373 Fax : 066 712 8551

Phone a Loan : 1890 428 428 | Email : [email protected] | www.traleecu.ieTralee Credit Union Sort Code: 99 10 16

67 Main Street Castleisland Co. KerryTel : 066 714 1749 Fax : 066 714 1121

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TRALEECREDITUNIONLTD. · 2014-06-08 · TRALEECREDITUNIONLTD. | ANNUAL REPORT 2013 TRALEECREDITUNIONLTD. | ANNUAL REPORT 2013 2 3 "As a member-owned organisation embedded in the local