BLACK STAR LINECOOPERATIVE CREDIT UNION LTD

P.O. Box TN 925Accra, Ghana West Africa

blackstarlinecreditunion@gmail.comTel: +233 (0)505 773 535 Ghana

646-702-2393 US

ANNUAL REPORTYEAR ENDING 30 JUNE 2016

4TH AGM OF SHARESHOLDERS MEETING

22 JANUARY 2017Community 18 Spintex Road

BLACK STAR LINECOOPERATIVE CREDIT UNION LTD

P.O. Box TN 925Accra, Ghana West Africa

blackstarlinecreditunion@gmail.comTel: +233 (0)505 773 535 Ghana

646-702-2393 US

AGENDA1. APOLOGIES2. MINUTES OF LAST AGM – February 2015

a) Matters arising3. CHAIRPERSON’S REPORT4. TREASURER'S REPORT5. SUPERVISOR’S COMMITTEE REPORT6. EDUCATION PRESENTATION7. ELECTION OF COMMITTEE

There are vacant positions in the management team as indicated below:BOARD OF DIRECTORS

Naomi Palmer-Buchanan - ChairpersonEdwin Baffour - Vice ChairpersonBosco Ahuma Ocansey - SecretaryJude Maison - TreasurerDennis Granville (Jawara) - Promotion

SUPERVISOR COMMITTEE Neville Buchanan (Girma) - ChairpersonKhex Pongo - SecretaryVacant position

LOANS COMMITTEERobert Stewart (Kinfi) - ChairpersonVacant positionVacant position

Education CommitteeEdwin Baffour – Vice ChairpersonElaine Henry Vacant positionVacant position

ACTING MANAGERDonovan Cover (DeeCee)

OFFICE ASSISTANTJuliete Fosu

VETTING COMMITTEEBosco, DeeCee, Naomi, Jawara

7) APPOINTMENT OF AUDITORS - Not required until Year Ending July 2017

8) GENERAL BUSINESS

9) CLOSE

BLACK STAR LINE COOPERATIVE CREDIT UNION LTD

P.O. Box TN 925Accra, Ghana West Africa

blackstarlinecreditunion@gmail.comTel: +233 (0)505 773 535 Ghana

646-702-2393 US

CHAIRPERSON’S REPORTYEAR ENDED 30 JUNE 2016

GREETINGS AND WELCOME to our shareholders, members, special guests, prospective members and visitors.

In opening the Black Star Line Cooperative Credit Union’s 4th Annual General Meeting I would like to take this opportunity to thank my fellow Board Members, Committee Members and Management Team and active shareholders for their support and diligence during this past year. Additionally I would also like to thank all those members (non-committee) who frequently offer their assistance and time to the development and progress of the Black Star Line Cooperative Credit Union.

Last but not least, I would like to thank our Regional Manager at CUA, Mr Bosompem and his team with particular reference to Angelina, the team at Ministry of Cooperative for their continued support and guidance throughout the year.

Before we go any further I would like at this time for us to remember the life of one of our young member Kwesi Pottinger, who passed away during this financial year. Let us be upstanding to take a minute silence in respect of one of our young warriors Kwesi Pottinger who have left us too early but we are assured that he is in a better place as one of our guardian angels. Thank you.

Our Union continues to strive, there are no “glass ceilings” to hinder our progress. Our progress and development is inevitable, our growth is a MUST but it cannot be done without you. Unity is our strength and that is what BSLCCU relies on for its progress. The potential for BSLCCU is enormous which has been shown in our third audit report. The audit report shows that we have achieved another milestone in our journey. That milestone is that we have made a surplus this year that will enable us to pay some dividend to our shareholders.

I would like to take this opportunity to salute all those who are responsible for taking us this far with special reference to our Acting Manager Mr Donovan Cover aka DeeCee for his absolute commitment and conviction in the possibilities of the BSLCCU. In his belief that “YES, WE CAN” and in his endeavour in making it happen in the best interest of BSLCCU is commendable.

We are grateful for the footprint our ancestors left for us to follow. If we follow the principles of Kwanza, unity, self-determination, collective work and responsibility, cooperative economics, purpose, creativity and Faith; the philosophy of the Right Honourable Messiah Marcus Garvey; the guidance and instructions of His Imperial Majesty Haile Selassie I and the inspiration of Osagyefo Dr Kwame Nkrumah we can say the BSLCCU is in good company and its success is assured. They have finished their job; it’s for us the tools they left behind. We all have a responsibility to use these tools with dignity, humility and pride and to develop and improve them so we can confidently hand them over to the generations coming behind us.

New MembersWe say akwaaba to Mr Edwin Baffour who was appointed as Vice Chairperson to BSLCCU Board of Directors and Mrs Elaine Henry who joined the Education Committee team this year.

We also welcome Juliet Fosu as the Office assistance who is bonded per Bye Laws requirement. Juliet appointment has enabled us to give a 5days a week service to our members.

Events/Fundraising

Summary of BSLCCU 2016 activities in Ghana:16th Aug 2015 EventSurplus of Ghc907.15 generatedGhc770.50 in savings depositsGhc600.00 in shares depositsGhc140.00 in registration fees (14 new members)

28th Feb 2016 AGMVending fee 40.00GHcDVD sales 260GHcTee shirt sales 80.00GHcDonations 250GHcReg. fees 60.00GHcSavings deposits 8,050GHcShares deposits 600GHc

26th Mar 2016 Mankessim CRReg. fees of 50GHc (5 new members)Savings deposits of 25GHcPrinting flyers 100GHcBus rental 500GHc

SUMMARY OF BSLCCU ACTIVITIES IN THE USA, JULY 2015 - JUNE 2016

BSLCCU activities fall into five basic categories: Outreach/ Presentation, Customer Service (including providing requested information to those who are curious about the credit union), Promotions, Donations and Wire Transfer of Funds

Outreach/PresentationOn January 19, 2015 BSLCCU was invited to do a presentation at an event sponsored by a Queens, NY chapter of the EWF. The invite was extended by BSLCCU shareholder Michael Wythe (Mickey Dan). For the most part the presentation was well received, although, from the tone of the questions asked there were some scepticism and uncertainty, especially in regards to transparency and the ability to get their money back, etc. In the final analysis, one person signed up as a shareholder, several others promised to do research and deliberation before making any commitment. In the weeks following several phone calls were made or email reminders sent to those on the mailing list. I am certain that at least a few signed up online, however I am not in a position verify.

On September 27, 2015 an invite was extended by Adrienne and Marcus Cooke (mother & son) on behalf of the Queens chapter of the Universal Negro Improvement Association (UNIA), both

Adrienne and Marcus are BSLCCU shareholders. Again, the presentation was enthusiastically received and the concept applauded. The usual arrays of questions were asked and suggestions made, special interest was taken in the BSL Investment Plan. However, the majority of the brochures and membership forms handed out were left behind at the end of the meeting. The President of the chapter (Michael Duncan) was the only one who signed up. Both Adrienne & Marcus passionately endorsed the credit union.

Customer ServiceCustomer service involve responding to phone calls and email from members wanting information regarding their accounts, or seeking information on how to sign up a friend or family member, or how to make payment via Pay Pal, or to alert me that they had made a payment via Pay Pal. Some simply called to see how the credit union was doing or how to purchase BSLCCU Tee Shirts. There are a few members who are not connected to the internet, at times they will call to have me collect payment or to have me receive and provide them with account statement.

In addition to communication from members, calls also came from ones who became aware of the credit union through social media, word of mouth or they had attended an event where brochures were handed out. Calls even come from organizations and individuals who want to know how to start their own credit union. These calls are coming from all regions of the US, including Canada.

PromotionsBrochures and forms were printed and passed out at community events such and various meetings.

Donation BoxesDonated funds were collected from donation boxes located at the following establishments:

1. Vegans Delight - Health Food and Take Out Restaurant 3565 C Boston Road. Bronx, New York. Thanks to Jawara Junior Blake, Karen Bins and their loyal customers. Both are BSLCCU shareholders)

2. Vital Health Food & Juice Bar 196-14 Linden Blvd, Queens, New York. Thanks to Ras Imande, his staff and loyal customers. Imande and two of his staff are BSLCCU shareholders

Wire TransfersDuring this period there were two wire transfers of funds from BSLCCU Pay Pal account to BSLCCU account at GCB bank in Ghana. Transfers - 11/2/15 - $960.00; 03/9/16 - $1,300.00

Process involve transfer from Pay Pal to a US bank account, then wired to credit union account at GCB in Ghana. All transaction details were sent to BSLCCU management via email.

SUMMARY OF BSLCCU 2016 LOAN REPORT

Here is brief summary of BSLCCU loans activities during 2015-2016. First it must be stated members aren't using our loans facilities as desired.

This could be for several reasons i.e. no long term stable employment or simply no interest in taking a loan. When looking at our members pattern of behaviour there seems to be a disproportionate number of members who prefer BSL investment plans as appose to savings.

However this problem can be overcome by embarking on a vigorous marketing and education program as referred to in the supervisory committee report. During the same period of 2015-2016 only 5 loans were approved. All were successfully repaid in full; consequently we didn't incur any delinquency.

To date we still only have one out of all supposed 3 loans officers which is sad in my opinion a sad reflection of our failure to recruit members. I again must emphasize I endorse the supervisory committee's report.

The Education Committee is currently working on educational material to support workshops and training. The education of our members and the general public on the model of credit unions and how beneficial it can be to their businesses and personal goals. The future is bright.

AUDITING

As we reported at the last AGM, after the 2014-15 audits, an amount of 2176.96GHc could not be accounted for. We promised then that a thorough investigation would be done regarding this missing funds.

After a lengthy investigation, including meetings with the previous managers, the BOD did not find any evidence of wrongdoing. As a result, it was determined that the shortfall was most likely due to bookkeeping error.

The matter was addressed by shareholders at the 2015 AGM held in February 2016, where it was determined that the amount in question should be listed as a loss and that the matter should be put to rest. This resolution was communicated to CUA and the Board of Directors sought their advice on how to bring closure to the deficit of our 2015 audit.

CUA recommended that it should be written off over a period of time (eg. in 3 or 4 years) to enable the union's reserve accommodate the reduction in its assets.

Actions taken by The BSL management team are:

1. Purchasing an accounting software system from CUA and undergone training for its implementation2. Set up MTN Mobile Money (04 437 5680) and added other platforms i.e. Tigo, Vodafone, Airtel etc. linking all to BSL’s bank account to minimize error in handling money.3. Purchased a security safe.4. A Cash Handling Policy that gives clear guidance whilst handling cash.

These measures should instil confidence with our members that we are working to ensure that errors will never happen again.

With that behind us we are proud to announce that the 2015-2016 audit report indicated a surplus of 2655.76GHc and given BSL a B rating for our performance which is a significant improvement from previous years.

DividendWe are delighted that we can afford dividend to our shareholders this year. The Board of Directors propose to retain half of the surplus (1,327GHc) to buffer some of BSL expenditures for year 2016-2017. We currently have 307 fully paid up shareholders, 75 part paid shareholders. Only fully paid up shareholders will be in receipt of dividend this financial year. The dividend to shareholders will amount to 4.32GHc per shares owned. This will be credited to shareholder’s savings account and will be accessible as and when you require it. This is another milestone BSLCCU have achieved.

The Board of Directors implore those who have not topped up their share purchase please do so as soon as possible so that you too can share in BSL’s achievements and be a beneficiary next financial year. We also assure those who have not yet committed to becoming shareholders that you consider your situation seriously because the BSLCCU is your financial future.

Our aim now is to continue with our efforts to improve and develop our credit union to a A rating and improve our surplus next year and forthcoming years.

We can only do this with you because “the ultimate resource in economic development is people. It is people, not capital or raw material that develop an economy". We rely on our members for their continued support.

WEBSITE DEVELOPMENT

In May 2016 The Black Star Line Cooperative Credit Union (BSLCCU) management team contracted TechPort Ghana to design a new website for our credit union. The quoted cost was 1,000GHc.

The new website eventually went live in November 2016. Shareholding members can now log in and get access to their profile which includes their personal information and a quarterly statement of their saving and investments activity. They can also apply for loans and make investments and savings online. Application for membership and make payments via PayPal can also be done online.

The history of the BSLCCU, its Bye-Laws, various policies, leadership details, social activities are accessible online. It is hoped that the new website will help the BSLCCU to extend its reach both locally and internationally. Suggestions on its improvement you would be appreciated.

BSLCCU PRODUCTS

BSL Investment Plans

Since its launch in October 2015 and up to 30 June 2016 members invested over 12,000GHc in BSL Investment Plan. This is very encouraging and shows that with determination everything is possible.

As a reminder this plan offers1. 20% interest on invested capitol2. Minimum of 1000GHc (no maximum)3. Minimum of 1 share with BSLCCU.

We are encouraging you to make use of this opportunity to develop your businesses and personal goals.

As a result of feedbacks from our members and discussion with financial establishments we are pleased to announce BSL’s new investment product “BSL Fixed Deposit Investment Plan”. We believe that this product will cater for our members who wish to invest larger sums of money, develop their business, invest in real estate etc. This product will available to our member from 22 January 2017.

BSL Fixed Deposit Investment Plan

The model of saving and loans and the general terms and conditions of the BSL Investment Policy remain the same except for some key features that pertains to this new product.

The Key features of BSL Fixed Deposit Investment Plan are

26% guaranteed on investment capital Member must be a shareholder with a minimum of 3 shares Member must invest a minimum of 3000GHc (there are no maximum) Investment must be for a minimum of 1year Capital and interest can be rolled over for reinvestment Capital reinvested and interests relocate to member’s savings account. Termination of investment prior to completion of investment period will lead to loss of

interest. Investors MUST continue to deposit monies in their savings account whilst they are investing

This is an opportunity that cannot be missed, so start investing.

Junior Savings Plan

Our current BSL Junior Account Savings Plan unfortunately not utilised as effectively as we had hoped. Encouraging our youngster to save is imperative and this plan is our children’s first step towards providing a brighter prospect for their future and prosperity.

I salute a particular member of BSL who is a committed and valued member, Mr Leon Walker aka Nile who have taken the initiative to kick start the savings plan for 4 young people in Kokrobite. From this initiative these young people together with their parents have become regular savers. Thank you Nile, for your initiative and your faith in BSLCCU. Members, there are definite lessons that can be learnt here.

Here is a reminder of the key features for BSL Young People Savings Plan, let us use it to provide for their future

You can save as little or a much as you wish Your child can join the BSLCCU from birth to 18 years of age Savings can provide university fees, a first car or help with a house deposit or give your child

a lump sum at age 18 years old Statements are sent annually at the end of BSL financial year There are no registration fee for children of BSL shareholders To open a Junior Account Savings Plan with Black Star Line Cooperative Credit Union all you need is your child’s original Birth Certificate (a copy will be taken for our records).

Visit BSL website www.blackstarlinecooperativecreditunion.com for application form or alternatively visit BSL’s office at Community 18 where our manager or office assistance will assist you.

We are currently working on another investment plan for our junior members and as soon as all the logistics for this plan is ironed out you will be notified via all the communication medium that are used currently. Any member who have not got access to these medium please contact the office on 0505773535 and let us know how best we can communicate with you

BSLCCU Performance and Progress for 2015-2016

The performance and progress of the BSLCCU for the 2015-2016 financial year is summarized as follows:

1. Shares membership increase by 22%2. Investment Plan of over 12,000GHc3. Total investment 108,148Ghc4. BSLCCU net worth 152,759GHc

5. B rating from Auditors6. Surplus of over 2,700GHc after auditing7. Dividend to shareholders8. Bonding of staff handling cash9. Implementation of a financial accounting system10. Loans to members - 9.9% increase11. 0% delinquency of loans

Small steps in our progress but “one one cocoa fill basket”. We are encouraged with the small progress we have made but it’s no way near the best we could have made, the credit union needs you to step up and use the tools that our ancestors handed down effectively and efficiently. The BSLCCU needs people for its development and growth. BSL ultimate resource in economic development is people, without you BSL economic growth is unsustainable.

History has taught us that it has been the inaction of those who could have acted, the indifference of those who should have known better that has made it impossible to move forward and progress. So let us be active, let us not be indifferent, let us all leave here today with a goal for 2017 to bring 10 friends and family to BSLCCU as regular savers, investors and borrowers, BSL currently have 511 members as at 30 June 2016, can you see the potential!!!!

As Dr Kwame Nkrumah said “we face neither east nor west; we face forward”. EVER

Finally let me once again thank everyone for their contributions and support throughout the year and look forward to your continued support for the future. The future is bright!!

Naomi Palmer-BuchananChairperson

Appendix 1

COSTS AND REQUIREMENTS

FOR

BSLCCU 2015-2016 AUDIT

PARTICULARS COSTS

1. Audit Fees+

2. CUA Statutory Reserve Deposit*3. CUA Stabilization Funds (insurance)+

4. CFF Savings*

1000.00 663.94 290.414,651.23

TOTAL 6,605.58Ghc

Notes

* An investment with CUA. BSLCCU is likely to get interest on these expenses.+These expenses are a cost to BSLCCU and not deemed as investment.

Appendix 2

BLACKSTARLINE COOPERATIVE CREDIT UNION 2015-2016 ACTUAL AGAINST PROJECTED BUDGET

INCOME Actual ProjectionOperating IncomeGCB T-bill Interest Income 6,615.00 -

GCB savings a/c Interest Income 448.84

840.06

UMB T-bill Interest Income6,188.00

4,962.11

Interest on Loans1,030.46

578.94

Other(CUA Time Deposits, CFF Savings) 3,658.55

8,024.90

Total Operating Income 17,940.85 14,406.02

Non-Operating Income

Registration 1,188.10 1,500.00

Donations/ Gifts Received4,500.42

300.00

Other (Interest on Statutory Reserve, Dividend on other investments, sale of pass book) 86.60

-

-

Total Non-Operating Income5,775.12

1,800.00

Total INCOME 23,715.97 16,206.02

EXPENSESOperating Expenses

Accounting and Legal 1,000.00 1,000.00

Marketing and Promotion (Printing and Stationery) 973.52

3,000.00

Depreciation 114.55

-

-

Stabilization Funds & LPP premium 303.21

- -

Insurance - Provision for loan losses/write off 152.00

-

-

Interest Expense (Savings & Fixed Deposits) 4,096.91

1,681.30

Maintenance and Repairs 230.00

500.00

Office Supplies 838.23

500.00

Payroll Expenses – Commission -

to Agents 197.58 -

Postage - 200.00

Rent2,150.00

750.00

Research and Development (Educational) -

500.00

Salaries and Wages 3,550.00 3,600.00

Taxes and Licenses - -

-

Telephone (Postage and Communication) 1,547.00

200.00

Travel and transportation 4,245.14 720.00

Utilities 270.00

-

-

Internet and Broadband - 350.00

Other (Bank Charges, Organizational Costs) 1,392.07

200.00

Total Operating Expenses 21,060.21 13,201.30

Non-Recurring ExpensesFurniture, Equipment and Software -

200.00

Gifts Given-

100.00

Other - -

-

Total Non-Recurring Expenses - 300.00

Total EXPENSES 21,060.21 13,501.30

Net Income Before Taxes - 2,704.72

Income Tax Expense -

NET INCOME 2,655.76 2,704.72

Appendix 3

Appendix 4

Appendix 5

Appendix 6

Appendix 7

Appendix 8

Appendix 9

Appendix 10

BSL Management Team response to Auditor’s recommendations

23 November 2016

Re: Audit Report presentation on 21st November 2016

Millicent presents her findings and recommendations of her 2016 audit to the management of BSLCCU. Millicent addressed a number of issues which she expressed the BoDs should consider and actioned as soon as possible. I will address each issue accordingly.1. Cash Policy.Millicent highlighted the need for more rigorous accountability on cash handling in the office.Action: We have developed a Cash Handling Policy which is currently going through perusal and amendments. The Policy addressed all the issues highlighted in the 2016 audit report. This policy will be ratified at the next board meeting on the 13th December 2016. To address the security issues the BoDs has directed the Acting Manager to purchase a safe immediately.The opening of a current account with Zenith bank is in process, this should be completed within the next few weeks. Zenith have all the information they required from BSL to complete this process.2. Income GenerationAction: BSL is currently actively pursuing venturing into other profitable and low risk investments as recommended by the auditor. We are currently in the process of setting up an account with an Investment Bank to venture into Fixed Deposit investments. This will be offered as another investment product to our members.3. Core BusinessAction: The real estate product will be a separate entity from the BSLCCU as recommended by the auditor.Regarding the “social fund” this will be set up with a Social Fund Policy that will give guidance on how this fund will be managed and operate in accordance with the bye-laws and for the benefit of the BSL members.4. Staffing PolicyAction: The Office Assistant has been issued with a Job Description, Terms and Conditions of Employment and a Contract. This has been duly signed by the employee. The Acting Manager’s Job Description, Terms and Condition of Employment and Contract is currently under perusal. These documents will be issued as soon as they are approved by the BoDs.5. Investment ProductAction: The BoDs will be considering the auditors advice to extend this product to wards of members. It is clearly the way forward to secure low cost and regular funds to buffer BSL’s investment and liquidity.6. Savings GrowthAction: This is a problematic issue which we have been working on for a number of years. Each venture we have tried presents its own challenges that result in inaction. However we are not defeated we will pursue every avenue possible to ensure that we develop a saving culture in our community.

The Education Committee is now active and will be pivotal in the education process of our community. The committee is currently working on a strategic plan on how to spread the benefits of saving for the future.

The future is bright for the Black Star Line Cooperative Credit Union and we will work diligently and with commitment to make our ancestors proud of the legacy they have left us. Forward ever backward never!!