CREDIT UNION BAYWIDE 2019 · 2019. 12. 19. · Credit Union Baywide Annual Report 2019 Our Mission Helping members achieve their financial goals. Our Vision To be New Zealand’s

2019Annual ReportCREDIT UNION BAYWIDE

Credit Union Baywide Annual Report 2019

Our Mission Helping members achieve their financial goals.

Our Vision To be New Zealand’s leading co-operative banking provider.

Our Values Own It We are courageous, own all our actions and always act with integrity.

Deliver It We innovate and are inspired to deliver the best outcomes every time.

Grow Together We are in it together; growing ourselves, each other and our customers.

To be New Zealand’s leading co-operative banking provider page i

Table of Contents

Directors’ Review ........................................................................................................................................... ii

Our Board ..................................................................................................................................................... iii

Chief Executive’s Review ............................................................................................................................. xii

Trustees’ Report ...........................................................................................................................................xiii

Corporate Social Responsibility ................................................................................................................. xiv

Statement of Corporate Governance ......................................................................................................... xv

NZCU Baywide Internal Directory .............................................................................................................. xvi

Financial Statements …………………………………………………………………………………....xvii

To be New Zealand’s leading co-operative banking provider page ii

Directors’ Review

The past year has been one of the most significant in the history of your Credit Union and there is much to be proud of as we reflect on what your Credit Union has achieved over the past year.

During the year, we were called on to assist the Board

of ACU to deal with a raft of challenges that caused them to breach some key-critical prudential ratios. Your Board and management worked closely with the Reserve Bank, Financial Markets Authority and Prudential Supervisors throughout the end of 2018 and into early 2019 on what ultimately became a four-way transfer of engagements (or merger) of ACU, Baywide, Central and South Credit Unions on 1 May 2019. On behalf of the Board, I would like to acknowledge and commend the Boards and Members of the four Credit Unions that approved the merger. It was a courageous and forward-thinking decision and we now go forward as one to face the challenges and seize the opportunities of our non bank deposit sector. Collectively, your new Credit Union now serves around 60,000 member-owners right across New Zealand and is the country’s largest Credit Union with over $520 million in Assets. As a condition of the merger, our Board of Directors has temporarily expanded in size, to ensure all merging members’ interests are represented during the amalgamation. I was humbled to be elected chairman by the new Board in May, and while one might think it would be a challenge to oversee such a large Board, I have been impressed by the overall expertise and calibre of those individuals who are charged with governing your Credit Union. The Board and Management have continued to be significantly distracted by a range of issues related to Co-op Money NZ (CMNZ) again this past year. CMNZ provide critical services to Credit Union members. As the largest shareholder in CMNZ, we have played a lead role in supporting the CMNZ business. We continue to work with the other six member Credit Unions of CMNZ to ensure the business is restructured to meet our future needs. The volume and complexity of the work performed by our teams in this area cannot be underestimated and on behalf of this Board, I thank our people for their immense contributions.

Our new, ultra-modern Oracle core banking system is now bedded down. This significant investment will help future-proof your Credit Union as we now invest in the innovations that will improve the way you, our members, engage with your Credit Union. Members unanimously supported the changes to our Rules at the recent Special Meeting that will enable us to take the opportunities available to us arising from the recent changes to Credit Union legislation. These long-awaited changes will help improve competitiveness for Credit Unions with other financial service providers in New Zealand from the New Year. We were pleased to launch electronic voting for members this year. This convenient option of voting has seen a lift in the number of members having their say on important matters affecting your Credit Union. The past year has been quite tumultuous for the banking and Credit Union sector. On the wider scene it has been interesting to see how the big Banks have reacted to the concerns raised through the Australian banking Royal Commission. Much of the behaviour highlighted through the Royal Commission has been linked to a culture where the interests of big Bank shareholders are put ahead of customers. As a credit Union member, you are not only a customer but also an owner. So, what this means is that we don’t have the conflict of balancing the interests of these competing groups. Our culture is centred on the core philosophy of always doing what is in the best interests of our members, as both customers and owners. It’s important to acknowledge the amazing and talented people who work for the Credit Union, well led by our CEO and Executive Management Team. Our people are the lifeblood of our organisation and on behalf of the Board I want to thank them all for their dedication and hard work. I would like to acknowledge my fellow Directors for their passion, commitment and drive during what has been an extremely challenging period over the past year. Above all, I would like to thank you, our Members, for your support as owners and customers. Your Credit Union exists for the benefit of each and every Member and your loyalty and commitment to your Credit Union is appreciated. Iain Taylor Chair, Board of Directors

To be New Zealand’s leading co-operative banking provider page iii

Our Board

Top L-R: Graham Pryor, Jared McGillicuddy (Associate Director), Te Taru White, Grant Travis, Alan Bartlett,

Iain Taylor, Alan Connolly Bottom L-R: Claire Matthews, Chris Lord, Katrine Imrie, Peter McKnight, Steve Wakefield, Louise Edwards,

Janice Fredric

NZCU Baywide Board Meeting Attendance Register

*Peter McKnight and Louise Edwards were unavailable due to planned and approved overseas travel following 1 May 2019.

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Alan Bartlett, Director 11 18 29 25

Graham Clouston Director 11 18 29 27

Alan Connolly, Director 5 9 14 13

Louise Edwards, Director* 5 9 14 9

Janice Fredric, Director 5 9 14 13

Katrine Imrie, Director 11 18 29 19

Chris Lord, Director 11 18 29 23

Peter McKnight, Director* 5 9 14 7

Claire Matthews, Director 11 18 29 26

Graham Pryor, Director 5 9 14 10

Iain Taylor, Director 11 18 29 28

Grant Travis, Director 11 18 29 28

Steve Wakefield, Director 5 9 14 14

Te Taru White, Director 5 9 14 10

Absent: Graham Clouston

To be New Zealand’s leading co-operative banking provider page iv

Alan Bartlett, Director

BBS (Accounting & Finance), CA, CPP

Chartered Accountant

Joined the Credit Union Baywide Board in 2004

Trustee, member of the Governance Committee

Alan is a Chartered Accountant and a Director with Hastings based accounting practice Moore Markhams. Alan has over 30 years experience advising clients on a wide range of accounting, financial and investment matters in a fast changing world. Alan is a member of Chartered Accountants Australia & New Zealand (CAANZ) and the Institute of Directors (IOD). Introduced to credit unions through his father, the credit union gave Alan a loan to buy his first car. This people helping people philosophy is something he wants to see continue and is proud to be part of.

Graham Clouston, Director Dip TA (ATAA), ACLA

Asset Manager Joined the Credit Union Baywide Board in 2010

Member of the Audit and Committee

Roles on other credit union Boards: Co-op Money NZ, Director (2017-2019) Co-op Services NZ, Director (2017-2019) and Co-op Insurance NZ, Director (2017-2019)

Graham is by profession a Chartered Loss Adjuster and Technical Analyst. He is the Executive Director of Smoogro Asset Management which manages local and offshore financial assets on behalf of The Clouston Family Office. Graham is also a Director and Deputy Chairman of angel investor, Launch Taranaki Ltd. With 45 years involvement in the Credit Union Movement, Graham has a strong commitment to the people helping people cooperative model. He supports the growth and development of Credit Union in New Zealand.

To be New Zealand’s leading co-operative banking provider page v

Alan Connolly, Director

BMS, CA, Member of CAANZ and Member of the IoD



Member of the Governance Committee

Roles on other credit union Boards: NZCU Central, Chair (2016-2019), Co-op Money NZ, Director (2018-2019)

Alan has extensive experience across a broad spectrum of management and leadership roles. Alan has successfully engaged in both Business Development and Sales and Management positions for New Zealand, Asia and Australia. As a Chartered Accountant, Alan also held CFO financial roles and is an owner at Arrow Accountants Limited. Alan is a well-rounded experienced executive, Chair of NZCU Central and board member since 2016, Alan is known for his unwavering ability to set clear concise strategic direction for management and to hold each accountable for performance. As Chair of the Central Board, he was voted on as a director of Co-op Money NZ in 2018, supported by the majority of member credit unions. Born in New Plymouth, Alan grew up in Taradale before Qualifying with a BMS from Waikato University. He lives in Ohope beach with wife Krys and their four boys, enjoys the outdoors and multi-sport.

Louise Edwards, Director BComm (Major in Accountancy), FCA

Professional Director


Member of the Audit and Risk Committee Roles on other credit union Boards: NZCU South, Director and Chair of the Audit and Risk Committee (2016 to 2019); Co-op Money NZ, Director and Chair of the Audit and Risk Committee (2017 to present)

Louise is an experienced Director and Chartered Accountant. She has over 20 years senior management experience across a number of industries in NZ and overseas. In particular, Louise has held senior executive positions within the NZ financial services industry and is an experienced leader with a wealth of financial management acumen. She has a strong interest in governance, being actively involved in the Canterbury branch of Institute of Directors.

In conjunction with her busy work life, Louise has always maintained strong community sector links which include the Christchurch Symphony Orchestra, University of Canterbury Foundation, Good Shepherd NZ, Alzheimers Society and Victim Support.

Her lengthy financial services experience means she has a good understanding of the need to ensure good compliance processes to protect the interests of members. Her family have been credit union members for many years. She is committed to the credit union ethos of “members helping members”.

To be New Zealand’s leading co-operative banking provider page vii

Chris Lord, Director M Communications (Hons), Te Ara Reo Māori Level Three (ongoing) Communications Content and Publications Advisor


Trustee, member of the Directors Nominating and Audit and Risk Committees

Roles on other credit union Boards: Credit Union Bay Health, Director for 12 years holding a variety of roles including Director, Trustee, Treasurer and Deputy Chair.

Chris works in a communications role at Hawke’s Bay District Health Board, and is a champion for clear, consistent and easily understood communications. Continual professional development is undertaken through wānanga, other tertiary institutions and through regular participation in New Zealand Institute of Directors courses. A strong supporter of Credit Unions and their emphasis on working with people to achieve their financial, professional and personal goals, Chris is also a vocal advocate for good governance adding value to both not-for-profit and commercial businesses. Currently also Chair of Creative Arts Napier, Chris has held a number of governance roles on community boards and trusts including those with a health, education and arts focus.

Peter McKnight, Director Member of CUINZ and holds a number of credit union and related qualifications.


Roles on other credit union Boards: NZCU South for approximately 20 years. Serving as Chair of Trustees, member of the Audit and Risk Committee; Deputy Chair.

Peter has worked at the New Zealand Aluminium Smelter near Invercargill for almost 34 years in a number of different Maintenance / Leadership Roles. Peter has been involved with Harness Racing from an early age as a breeder and owner. He has enjoyed some success in both areas.

Peter is a strong believer in Credit Unions and their Member based ownership.

To be New Zealand’s leading co-operative banking provider page vi

Janice Fredric, Director B Com, CA, MBA (Dist), CMInstD, FNZIMS



Board Vice Chair, member of the Directors Nominating and Governance Committees

Roles on other credit union Boards: NZCU South, Director (2014-2019), Board Chair (2017-2019), Audit and Risk Committee Chair (2014-2017)

Janice is a professional director and chartered accountant with 20 years governance experience. She has a broad portfolio of directorships with experience in both commercial and not-for-profit sectors. Janice has held senior executive positions in professional services and finance and banking sectors internationally. Her commitment to working with community and not-for-profit organisations, led to her involvement with Credit Union South which she chaired until the Credit Union Baywide merger. She is currently a director of Mainpower NZ Ltd, on the council of Lincoln University, Chairman of Hurunui Tourism and a trustee of the New Zealand Shipwreck Welfare Trust. Previous directorships include Credit Union South, Maritime New Zealand, New Zealand Family Planning, University of Canterbury Foundation, Duncan Cotterill Lawyers and YHA New Zealand. Janice is a Chartered Member of the NZ Institute of Directors, a fellow of the NZ Institute of Management, and a member of the Institute of Chartered Accountants.

Katrine Imrie, Director

Registered Nurse

Company Director


Katrine is a property manager and Director of a corporate gifts and wedding planning business, GK Occasions Ltd. Katrine holds voluntary Board positions as Chairperson of Neighbourhood Support PN, Secretary of the Stewart Centre Trust (Brain Injury Centre), House Manager and Board member of Abbeyfield Palmerston North and Board member on the Abbeyfield New Zealand Trust. Katrine worked as a registered nurse for 35 years, the last 20 in senior management roles. Katrine has a particular passion to keep the personal touch in the workings of the Credit Union and to get the young involved.

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Claire Matthews, Director

PhD (in banking studies), MBS (Distinction), BA(SocSci), DipBankStud, DipBusAdmin, National Certificate in Maori (Te Waharoa) (level 2), Certificate in Mauri Ora, FFin, INFINZ (Cert)

University Management



Roles on other credit union Boards: Co-op Money NZ, Director (2013-2019) and Chair (2015-2018); Co-op Services NZ, Director (2013-2019) and Chair (2015-2018); and Co-op Insurance NZ, Director (2013-2019) and Chair (2015-2019).

Claire is the Director, Academic Quality for the Massey Business School, a role she’s had since 2014. She joined Massey University in late 1996 as a senior lecturer, and in that role her primary teaching responsibilities were in the University’s post-graduate banking programmes. From 2009 to 2014, Claire also had overall responsibility for the Personal Financial Planning endorsement within the Graduate Diploma of Business Studies.

She has a PhD in Banking on the subject of Switching Costs in the New Zealand Banking Market. She is a Fellow of the Financial Services Institute of Australasia, and a Certified Member of INFINZ.

Graham Pryor, Director

CA

Executive Director



Roles on other credit union Boards: Aotearoa Credit Union, Director (2017-2019) Graham is currently a consultant operating in a range of roles with various clients. His business is focused primarily on Iwi/Māori clients with media, housing, primary industry and economic development projects. Graham has had several senior management roles including 14 years as CEO of MaiFM, Treaty negotiator on behalf of eight iwi organistions in the CNI Iwi Collective, in settlement of historical Treaty claims to forest land in the Central North Island including Kaingaroa Forest and then establishment manager of CNI Iwi Holdings Ltd following settlement. Graham has also chaired Te Mana o Ngāti Rangitihi Trust the post settlement governance entity that was established for Ngāti Rangitihi to hold its share of the assets from the CNI Iwi Collective settlement.

To be New Zealand’s leading co-operative banking provider page ix

Iain Taylor, Director BA/LLB, CU Management Certificate

Solicitor


Board Chair, Trustee, Chair of the Directors Nominating and Governance Committees

Iain is a qualified solicitor and partner in the law firm Gifford Devine, specialising in property, commercial and trust law. Iain has a strong commitment to the Hawke’s Bay and Central region and is actively involved with a number of school, sports and community groups. Iain’s involvement includes serving for eight years on the Board of the Hawke’s Bay Hockey Association and three years on the Central Districts Hockey Association. Iain is also honorary solicitor to the Hawke’s Bay Cricket Association, Trustee of the Central Districts Cricket Association Charitable Trust and a former member of the Karamu High School Board of Trustees. In addition Iain is a member of the NZ Institute of Directors (IoD) and has served on the Hawke’s Bay sub branch of the IoD.

Grant Travis, Director BBS (Actg & Finance, Human Resource Management) - Massey University, Chartered Accountant, (CAANZ)


Joined the Credit Union Baywide Board in 2009 Chair of the Audit and Risk Committee

Roles on other credit union Boards: involved with MidCentral Credit Union as Director and Financial Adviser since its formation in 2003, and prior to that with PN Hospital Staff Credit Union as Treasurer and Financial Adviser since 2000.

Grant is a retired chartered accountant, having previously held various senior management and financial positions within Massey University. He currently undertakes selected accounting assignments and projects. Grant has been a credit union member for over 40 years and is passionate about members helping each other through the co-operative model. He is particularly interested in the startegic direction of the credit union and its continued growth in strength and relevance to the New Zealand economy.

To be New Zealand’s leading co-operative banking provider page x

Steve Wakefield, Director

BComm (Accountancy), BSc (Computer Science), FCA, Chartered Member of the Institute of Directors


Joined the Credit Union Baywide Board in 2019 Member on the Audit and Risk and Technology Committees

Roles on other credit union Boards: NZCU South Director (2017-2019), Co-op Money NZ Director (2018-present)

Steve is a professional director with strong skills and experience in accounting, finance, auditing, and information technology. A Fellow Chartered Accountant (FCA), Steve retired in 2017 from a 36 year career with global accounting and consulting services firm Deloitte. Currently Independent Director, Foodstuffs South Island; Chairman, CropLogic; Director, EVNEX; Pro Chancellor, University of Canterbury Council; Director, Brackenridge Services; Director, NZ Health Innovation Hub; Director, INOV8 Limited and Trustee, Anglican Church Property Trustees; and Trustee, The Court Theatre. Steve is a strong believer and advocate for the membership/cooperative business model, and became a director of NZ Credit Union South in 2017, Co-op Money NZ and Foodstuffs South Island in 2018, and NZCU Baywide in 2019. With a computer science degree and an accounting systems background, he brings considerable IT expertise to the board.

Te Taru White, Director

BSc (Honours), MBA, IOD Certificate in Company Directorship

Consultant


Member of the Audit and Risk Committee

Roles on other credit union Boards: NZCU Central, Director (2018-2019)

Te Taru is an elected member on the Bay of Plenty Regional Council and Chairman of the partnership between the Rotorua Lakes Council with tangata whenua. He is passionate about socio-economic development of communities and has been at the forefront of leading Maori contribution locally and nationally including leadership of high level Local and Central Government consultation processes. Te Taru has considerable Governance experience in Government and Private Sector and applies over 35 years of senior executive experience to these roles. Te Taru has a diverse range of work skills and professional experience as an Engineering Geologist, Human Resource Director, Kaihautu (Co-leader) of Te Papa Museum and CEO of the Maori Arts and Crafts Institute, Te Puia. Te Taru believes that Credit Unions are "of the people for the people." They are owned by its members and are charged with providing accessible and equitable financial services to the communities and members it serves.

To be New Zealand’s leading co-operative banking provider page xi

Jared McGillicuddy, Associate Director

Certified Information Systems Auditor, Certified in Risk and Information Systems Control, Health & Safety, Approved Auditor



Over the past decade Jared has worked extensively for, and on boards, and believes strongly in the values of successful member-owned organisations and not-for-profits. He wants to see Credit Union Baywide continue to grow, moving from strength to strength, being high performing and continuing to evolve to meet members’ needs. Jared currently works within the health sector providing risk and assurance services. He has been involved in technology startups and has a strong interest in CyberSecurity and technology. Outside of work his interests include competitive sport and spending time with his young family.

To be New Zealand’s leading local co-operative banking provider page xii

Chief Executive’s Review

The past financial year has been both challenging and exciting for your Credit Union. The difficulties faced by Aotearoa Credit Union and Co-op Money NZ (CMNZ) have been challenging, but have also created significant opportunities as we continue

to transform our business to ensure we remain relevant not only to our existing members, but also future generations to come. While the initial costs associated with mergers are high, the long-term benefits are significant through improved scale and efficiency. The visionary move to bring together four Credit Unions earlier this year to form one stronger, more resilient Credit Union of the future is already delivering benefits for members. Through the wider branch and on-line presence, and by leveraging strengths across the group, members are already seeing improvements in services offered.

We are now focusing on the huge task of integrating all the systems, processes, channels, products and services of the four merging Credit Unions. Blending our organisations into a single entity, and taking the best out of each business is paramount to ensuring that we deliver on the promises of improved benefits for members as a result of the merger. While this “back-room” merger work will take some time, members rightly expect banking to be easy. That’s why we are also improving the way that members can interact with your Credit Union through improvements in our digital capabilities that are already delivering services faster and simpler. Our digital strategy is critical to ensure that

we continue to become more responsive and deliver better outcomes and we will be pushing forward with important initiatives at the same time as integrating all our systems. CMNZ provides Credit Unions with services including our core banking system, debit cards, ATMs, mobile and internet banking. These services are critical for our members and this is why we have put in place a support package while CMNZ recover from its current challenges. We delivered an overall net deficit for the financial year of $1.7 million. Key drivers for this result included a number of one-off costs including a $2.2 million impairment of Base Capital Notes and Intangible assets. Pleasingly, the underlying profitability of your Credit Union from operations remains strong as we also absorbed significant costs associated with the merger and CMNZs weaker financial position during the year. I am very proud of what our team have achieved over the past year, and in the short time since our merger. As we look to the year ahead, I am excited by the opportunities and confident that we are very well placed to continue to progress and deliver further improved services for members. We now employ around 250 very talented and diverse people across more than 30 locations. I would like to recognise and thank our wonderful team who continue to work tirelessly in helping our members, all while coping with significant changes in the way we do business. Your efforts are truly appreciated and valued. I’d like to thank the Board of Directors for their support, guidance and stewardship during what has been a particularly challenging time for the Credit Union industry. The Credit Union is benefiting from the depth and breadth of skills around the Board table. Most importantly, I wish to also thank members for your support.

Gavin Earle Chief Executive *FY19 includes the combined assets of Baywide post the merger with South, Central and Aotearoa Credit Unions. Prior years have not been adjusted.

*

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Trustees’ Report Continued focus on delivering a balanced growth strategy saw Credit Union Baywide increase lending assets over the year. Following the transfer of engagements the home loan book for Credit Union Baywide as at 30 June 2019 totals $244 million while the personal loan book sits at $150 million. For the third consecutive year, we were awarded Canstar’s five star rating for both our personal and vehicle loan products. These prestigious awards recognise our growing position as one of the best in NZ’s highly competitive personal and vehicle lending markets. We continue to experience success through strong partnerships with a group of supportive brokers. We have a strong view that it should be up to you, our members, to determine how you’d like to do business with us – if that is through a face-to-face interaction at one of our branches, via an online application process or through one of our broker partners – we’re here to help you. We are working hard to ensure all our members across New Zealand have the options available to them. The personal loan market across New Zealand continues to see new players entering and more traditional lenders innovate for results. To stay relevant, we need to continue to innovate ourselves and find new ways to reach more New Zealanders. We continue to refocus our approach to personal loans exploring opportunities to provide quicker, more consistent decisions to our members. This means we will be able to provide all of our customers with a tailored interest rate aligned to their profile.

Regulators are rightly focussing more of their attention across the industry to ensure consumers are getting a fair deal and not entering into unfair arrangements with lenders. We encourage any changes that drive a more responsible approach to lending across New Zealand and remain committed to ensuring we are helping our members and not burdening people with unaffordable levels of borrowing. Following the recent Transfer of Engagements, the focus in the year ahead is to provide a more consistent approach to lending across the country. We want all of our members to have the same access to our award winning products and tailored pricing across the country. At the same time we take every opportunity to deliver improved customer experience through ongoing investment in technology and people. Interest rates across the country remain at record low levels and while this has continued to fuel growth in the lending market, we are seeing signs of cooling. Further, after a number of stable years there are some early indicators that credit defaults and losses are starting to slowly increase – this is an area that we will be monitoring closely and addressing where appropriate. Looking forward, our strategy remains to deliver diversified lending growth across New Zealand, with continued focus around our personal loan solutions and utilisation of technology to provide a better experience and quicker outcomes for members. As a result of the changes to Friendly Society and Credit Unions Act 1982 that take effect from 1 January 2020, we will no longer require trustees. As such, this will be the last Trustee report provided to our members.

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Corporate Social Responsibility We recognise that Corporate Social Responsibility (CSR) means we have an obligation to understand, respect and respond to the communities in which we operate. Good CSR requires us to achieve social and environmental sustainability, as well as economic sustainability.

Being 100% owned by our members, who are also our customers means we are not driven solely by profit motives like most corporations in our sector. Instead, we are different in the way that we conduct business for the benefit of our customer-owners, and through them, the wider community in which they live and work.

We believe there is a link between ethical business behaviour and corporate performance. For us, social responsibility is more than a marketing slogan – it is central to members and their communities, which means it is also central to the way we operate.

Some examples of CSR in action

We provide face to face access with people from local communities, who are trained and genuinely focussed on being fair, responsible and ethical in looking after our customers’ financial interests.

We deliver high customer service standards.

Our customer benefits programme provides discounts for various services.

We deal swiftly and fairly with any complaints.

We recognise our customers’ rights as owners.

We hold customer appreciation and education evenings in branches.

We comply with our legal and regulatory obligations.

We are committed to our core values of own it; deliver it; and grow together. At the heart of our culture, our values anchor our behaviours and reflect how we treat each other, our customers, and other stakeholders.

We actively promote fairness and equal opportunities at all levels of the organisation, including wellness, career development, and learning and development.

We support staff actively involved in community initiatives.

We support community groups with our free community marquee programme.

We encourage a paperless workplace, and electronic statements and communication.

We are conscious of our footprint on our environment and seek ways to reduce it.

We utilise solar energy to support our Hastings Administration premises.

To be New Zealand’s leading local co-operative banking provider page xv

Statement of Corporate Governance

NZCU Baywide is a member-owned financial co-operative registered as a “Credit Union” under the Friendly Societies and Credit Unions Act 1982. NZCU Baywide is governed by our Board of Directors on behalf of, and for the benefit, of our members. THE BOARD OF DIRECTORS The Board is elected by, and is accountable to, our member-owners. The Board is committed to a high standard of corporate governance and operates under the framework set out in our Rules, the Friendly Societies and Credit Unions Act 1982, the Trust Deed and our Corporate Governance Policies, which take into account our statutory obligations. The Board oversees the Credit Union and its operations, and is responsible for organisational governance and risk management. This includes setting our strategic direction, establishing goals for management and monitoring achievement of these goals. The Board is responsible for appointing the Chief Executive. The Board delegates responsibility for the day-to-day management of the Credit Union to the Chief Executive and the executive leadership team. The Board has a responsibility to ensure that it has the collective and individual skills to effectively undertake its responsibilities and is committed to high standards of corporate governance. All new Directors participate in an induction programme which sets out their roles and responsibilities. The Board meets at least eleven times a year. THE CREDIT UNION’S RULES Our Rules shape how we are governed. They cover things such as the rights of members, the objects of the Credit Union, the appointment of Directors and how meetings of members and Directors are managed. THE BOARD’S COMMITTEES The Board has three permanent working committees to assist the Board on three specific areas of focus – the Governance, Audit and Risk, and Directors Nominating committees. Each committee has Terms of Reference approved by the Board and is chaired

by a Director. All Directors may attend Board Committee meetings.

Audit and Risk Committee The Audit and Risk Committee assists the Board in its oversight of financial reporting, internal controls, audit and the effectiveness and integrity of the risk management framework. Our external and internal auditors are invited to attend meetings.

Directors Nominating Committee The Directors Nominating Committee assists the Board in planning the Board’s composition, evaluating the competencies required of prospective Directors, establishing that they are Fit and Proper persons, and their skills, knowledge and experience are appropriate to the Board’s needs.

Governance Committee The Governance Committee assists the Board with its responsibility to ensure the Credit Union operates with a clear, consistent and effective governance framework that meets our legal obligations and required standards. GOVERNANCE DIFFERENCES Credit Union Baywide is a not-for-profit financial services co-operative, and our Board’s role is to govern the Credit Union on behalf of, and for the benefit of, its member-owners. Because of this, our members have a say in how the Credit Union is governed. Every year members have the opportunity to nominate and vote for Directors on our Board. DIRECTOR ELECTIONS Every year our members can nominate candidates to stand for election as Directors. At the same time, elected Directors retire by rotation and can choose to stand for re-election. THE BOARD’S PERFORMANCE The Board’s performance is reviewed annually. The review includes a Director self-assessment, and a peer and Chair’s review. The Chair provides individual feedback to Directors while the Board discusses its own performance and agrees on action plans for any development areas identified. Ultimately the performance of the Board is also reviewed annually by the members at the Annual General Meeting, where members are able to hold Directors to account.

To be New Zealand’s leading local co-operative banking provider page xvi

NZCU Baywide Internal Directory Board of Directors Alan Bartlett Director

Graham Clouston Director

Alan Connolly Director

Louise Edwards Director

Janice Fredric Vice Chair

Katrine Imrie Director

Chris Lord Director

Peter McKnight Director

Claire Matthews Director

Graham Pryor Director

Iain Taylor Chair

Grant Travis Director

Steve Wakefield Director

Te Taru White Director

Jared McGillicuddy Associate Director

Trustees

Alan Bartlett

Chris Lord

Iain Taylor

Patron Roy Gardiner QSM Executive Gavin Earle Chief Executive / Secretary

Andrew Quayle GM Sales, Marketing and Channels

Blair Cross GM Credit and Banking Operations

Chris Fenwick Chief Financial Officer/Treasurer

John McKeefry GM People and Capability

2019 annual report cover A4. digitalCUB Annual Report 2019_FINALFinancial StatementsCUB Annual Report 2019_page changed.pdfDirectors’ ReviewOur BoardChief Executive’s ReviewTrustees’ ReportCorporate Social ResponsibilityStatement of Corporate GovernanceThe Board of DirectorsThe credit union’s rulesThe Board’s CommitteesGovernance differencesdirector electionsThe Board’s performanceNZCU Baywide Internal Directory

Documents

CREDIT UNION BAYWIDE 2019 · 2019. 12. 19. · Credit Union Baywide Annual Report 2019 Our Mission Helping members achieve their financial goals. Our Vision To be New Zealand’s