2004 - All Trans Financial Services Credit Union

Transcription

2004 - All Trans Financial Services Credit Union
2004
Annual
Report
ALL TRANS is ALL you want in a financial institution!
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
Executive
Report
Growth in Total Loans
On behalf of the Board and Management of All Trans Financial
Services Credit Union Limited, we are pleased to report to our
Membership on a very successful year of operations in 2004.
($ millions)
30
28
26
24
22
2001
The new strategic direction mandated by our Board of Directors in
1999 and refined in the years following has now fully taken effect.
All Trans has a sales and service network of four banking pavilions
and five mobile bankers, backed by a substantial ABM network and
extensive electronic services. We are now able to deliver personal
service to our members at home or at work and our members can
reach the credit union at any time and from any location to access
their accounts. We have achieved a balance of retail Member
services and wholesale commercial services that provides steady,
predictable revenue and some degree of immunity to the vagaries
of the interest rate cycle. The implementation of Data Mining
software and processes now allows us to tailor our services to the
individual Member’s needs and requirements and to develop strong
relationships between the members and the credit union.
Financial Performance:
As a result of the success of the maturing Strategic Plan, All Trans
has achieved strong asset growth and robust net income in 2004.
Total assets increased by 3.2 percent over 2003; of special note our
most important asset category, loans to members, increased by
9.7 percent over 2003. This growth represents an increase of
$2.6 million dollars in loans granted to Members. We also placed
another $.6 million dollars in mortgage loans with our business
partner, Equitable Life.
2003
2004
Total Deposits grew by 2.8% over 2003; attracting deposits
has proved to be quite challenging due to low market rates and
numerous deposit competitors. We will be making deposit growth
a priority in 2005 in order to be able to comfortably fund our
expanding loan demand.
Growth in Total Deposits
36
34
($ millions)
Our Strategic Plan:
2002
32
30
28
26
2001
2002
2003
2004
Pre Tax Income grew from $129,059 in 2003 to $223,125 in 2004,
an increase of 76 percent. We achieved strong revenue from
multiple sources and were able to effectively constrain expense
growth and therefore achieve a substantial bottom line profit.
Pre Tax Profit
$300,000
$200,000
$100,000
0
2001
2002
2003
2004
Annual Report 2004
Membership:
We are pleased that our Members are finding more and more
good reasons to transact business with All Trans. As a direct
result of our increased business volumes our Asset to Member
ratio has increased every year since 2001. The percentage of
Members who identify All Trans as their principal Financial
Institution has increased every year since 2001 and now
comprises 24 percent of our total membership.
Assets per Member
$6,000
$4,000
$2,000
$0
2001
2002
2003
The Board takes very seriously the trustee responsibility which the Members
have delegated to us. We work diligently to ensure that we remain in
compliance with regulatory requirements and sound business practices.
2005:
During 2005 we will continue to build on the efforts of previous
years. In the marketing area we are launching a very aggressive
campaign to grow our Member base and to increase usage of our
services by individual members. The All Trans “Alltimate Race” will
continue throughout 2005, culminating in the award of a new car
to our “alltimate” winning member. The award will take place at
our Annual Meeting in 2006. We intend to reach out to our members
in many ways in 2005 with the intent of strengthening the bond
between the Credit Union and the Members still further. We take
great pride and satisfaction from serving our Members and look
forward to your continued support in the future.
2004
Acknowledgements:
Board of Directors:
The Board worked very hard in 2004 to plan for new regulatory
changes that will take effect in late 2005 and early 2006. As
well as working throughout the year towards these goals, the
Board undertook two major projects which furthered our work
greatly. The first was the annual Strategic Planning conference at
which the Board and senior staff review the status of the credit
union Strategic Plan, make adjustments as required by changes in
the economic, regulatory and operational environment and approve
capital and operating budgets for the following year. The second
event was a Board Self Assessment Review which will become an
annual requirement for all credit union Boards. These two events
were very successful and the Board is pleased and confident with
the position and outlook of the Credit Union as we move forward.
We would like to express our strong appreciation to our staff who
again did a wonderful job for All Trans in 2004; to our sponsoring
Bond companies and organizations; to the various Union locals; and
to our business partners. It requires support and co-operation from
all these groups to make All Trans successful – in 2004 that support
and co-operation has been outstanding. Lastly, again, thanks to you,
the Members for whom all this activity occurs and without whom all
this activity could not continue.
Ross Taylor,
Chair Board of Directors
Mike Alexander,
Chief Executive Officer
02
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
Lending
Report
Director of Operations
2003
2004
The 2004 fiscal year saw excellent growth in the Credit Union’s loan
portfolio. Our portfolio increased by $2,631,000 or 9.9% over 2003.
Personal loan volumes grew marginally while the number of applications
declined. We funded 795 personal loans in the amount of $4,830,000
which was a drop of 43 applications but an increase of $144,000.
The number of declines was also down from 351 last year to 261.
Personal Loans Granted
838
795
Personal Loans Declined
351
261
Mortgages funded internally increased year over year by 10 and
$1,982,000. This was an 82.5% increase over 2003. We funded four
mortgages through Equitable Life Insurance for $666,000 and while
1st Mortgages Approved Equitable
this is a decline from 2003 ($1,222,250) we are not concerned as the
decline represented mortgages funded on the credit union’s own books.
Smart lines continued to be a popular product with 56 new accounts
opened with authorized limits of $3,599,000. This is a down from
the prior year by 8 accounts and $611,000. However the decline in
smart lines was offset by an increase in 1st mortgages. A significant
number of existing smart line members chose to lock in a mortgage
rate (via a conventional 1st mortgage) rather than continue with
the uncertainties of a floating rate as provided by smart line.
We are pleased to report that delinquent loan accounts continued
to be kept to a minimum. As of year end we had 8 delinquent
accounts totaling $28,681 for which reserves were required. While
this is an increase over 2003 results the actual figure is only .53%
of our personal loan portfolio and is considerably below industry
standards. Bankruptcies continued to plague the financial industry
but at All Trans we continued the excellent trend established several
years ago of minimum write offs due to this source. In 2004 we
received 2 bankruptcies totaling $12,004.
Total Personal Loan Applications
1,189
1,056
$4,686,025
$4,830,185
20
30
$2,402,439
$4,384,898
11
4
$1,222,250
$ 666,112
64
56
$-Value Approved Smart lines
$4,210,300
$3,599,255
Delinquent Accounts Over 90 Days
$
$
Impaired Loans
$ 112,177
$ 194,898
Recoveries Bad Debts
$
$
$-Value Approved Personal Loans
1st Mortgages Approved Internally
$-Value 1st Mortgages (Internal)
$-Value Equitable 1st Mortgages
Smart Line Applications
Bankruptcies
13,810
3,657
2
28,681
3,023
2
We have experienced excellent growth in 2004, especially in
1st mortgages and I wish to acknowledge the significant effort put
forth by the mobile money managers in building our credit portfolio.
I would also like to commend the Credit Department for the high
standards they have established and maintain both in credit granting
and the collection area.
Ian Huffman,
Director Operations
Annual Report 2004
Report of the
Au d i t Co m m i t t e e
The Audit Committee for the past year was comprised of
directors Sam Lightowler, James McDonald and Rodger Sheppard.
The committee is responsible to ensure that the member’s funds
and investments are protected through a system of audits, internal
checks and periodic third-party reviews.
The committee meets with the External Auditors, Retford & Lane,
on a regular basis to review the financial position and balance
sheets of the Credit Union. The External Auditors conducted
half-year and year-end audits of our financial position. The year-end
audit is included in the annual report for your review. These audits
are reviewed by the committee, both with management and
in-camera with the auditors.
The committee also meets with the Internal Auditors, Rick Belsby
and Associates, to ensure that our internal policies and procedures
are being followed in all aspects of our business. The auditors
conducted audits of many aspects of our operations to ensure
that we are operating in compliance with both government
legislation and internal policy. The committee meets with the
auditors to review every audit conducted. Recommendations
from these audits are tracked and reviewed with management.
• Threshold Electronics: Laser Cash Division Audit
• Allowance for Impaired Loans Audit
• Payroll and Personnel Audit
• Glassworkers Branch Audit
• Personal Loans Audit
• Mobile Banking Audit
• Investment Audit
• RRSP & RRIF Audit
• Financial Ratios and Analysis Audit
• Mortgage Audit
• Bank Reconciliation Audit
On behalf of the Audit Committee I would like to thank both the
Staff and Management for another year of hard work and impressive
results. Both the Internal and External Auditors continually express
commendations for the thoroughness and accuracy of their work.
Thanks to all management, staff and directors for their support
to the Audit Committee during the past year.
The following audits were conducted in 2004:
• Money Laundering and Privacy Legislation Audit
• Officer and Staff Loan Audit
• Accounts Payable Audit
Sam Lightowler,
Committee Chair
04
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
Report of the
Nominating
Committee
The By-Laws of All Trans Financial Services Credit Union Limited
require the Nominating Committee to present a slate of suitable
candidates for election at the Annual Meeting. Each year a number
of vacancies occur. The terms of office are organized in such a
Mr. Rodger Sheppard
Moore Canada – 10 years
Director – 25 years
Incumbent
Ms Elaine Bell
World Wrestling
Entertainment – 5 years
Director – 5 years
Incumbent
manner that 1/3 (one third) of all elected positions are open for
consideration each year. The Nominating Committee, therefore,
endorses the following slate of candidates as qualified for election
at the Annual Meeting on March 9th, 2005.
Mr. James McDonald
Former TTC employee
Director – 6 years
Incumbent
Respectfully submitted:
Barbara Bottrell
Chair, Nominating
Committee
Annual Report 2004
M a n a g e m e n t ’s R e s p o n s i b i l i t y
f o r Fi n a n c i a l R e p o r t i n g
The financial statements of All Trans Financial Services
Credit Union Limited and all information in this annual report
are the responsibility of management and have been approved
by the board of directors.
The financial statements have been prepared by management
in accordance with Canadian generally accepted accounting
principles. When alternative accounting methods exist,
management has chosen those it deems most appropriate in
the circumstances. Financial statements are not precise since
they include certain amounts based on estimates and judgements.
Management has determined such amounts on a reasonable basis
in order to ensure that the financial statements are presented fairly
in all material respects. Management has prepared the financial
information presented elsewhere in the annual report and has
ensured that it is consistent with that in the financial statements.
All Trans Financial Services Credit Union Limited maintains
systems of internal accounting and administrative controls of
high quality and consistent with reasonable cost. Such systems
are designed to provide reasonable assurances that the financial
information is relevant, reliable and accurate, and that the
Credit Union’s assets are appropriately accounted for and
safeguarded. Also, the Credit Union has established an appropriate
Code of Business Ethics, Conflict of Interest Policy and a
Confidential Information Policy.
The Audit Committee is appointed by the board and all members
are active directors of the Credit Union. The committee meets
regularly with management and the Internal Auditor to discuss
internal controls over the financial reporting issues in order to
satisfy it that each party is properly discharging its responsibilities
and to review the financial statements and the External Auditors’
Report. The committee reports its findings to the Board for
consideration when approving the financial statements for
issuance to the Credit Union membership. The committee also
considers for review by the Board and approval by all members,
the engagement or reappointment of the external auditors.
The financial statements have been audited by Retford and Lane
LLP, the external auditors, in accordance with Canadian generally
accepted standards on behalf of the Credit Union membership.
Mike Alexander,
Chief Executive Officer
Greg Turgeon,
Chief Financial Officer
The board of directors is responsible for ensuring that
management fulfills its responsibilities for financial reporting
and is ultimately responsible for reviewing and approving the
financial statements. The Board carries out this responsibility
principally through its Audit Committee.
06
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
Auditors’
Report
To the Members of All Trans Financial Services Credit Union Limited
We have audited the balance sheet of All Trans Financial Services
Credit Union Limited as at December 31, 2004 and the statements
of operations and retained earnings and cash flows for the year
then ended. These financial statements are the responsibility of the
credit union's management. Our responsibility is to express an
In our opinion, these financial statements present fairly, in all
material respects, the financial position of the credit union as at
December 31, 2004 and the results of its operations and its cash
flows for the year then ended in accordance with Canadian
generally accepted accounting principles.
opinion on these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally
accepted auditing standards. Those standards require that we plan
and perform an audit to obtain reasonable assurance whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation.
Retford & Lane LLP,
Chartered Accountants
January 6, 2005
Annual Report 2004
B a l a n ce S h e e t
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
2004
2003
ASSETS
Cash resources and currency held
in third party ABMs (Notes 2 and 3)
Investments (Notes 1 and 4)
Loans to members (Notes 5 and 6)
Accrued interest and other receivables
Prepaid expenses
Capital assets (Notes 1 and 7)
$
5,803,533
2,212,262
29,440,516
188,159
118,214
37,762,684
$
6,901,164
2,529,493
26,846,112
142,569
157,180
36,576,518
561,032
$ 38,323,716
560,498
$ 37,137,016
$ 35,254,732
479,786
$ 34,278,603
424,249
649,591
36,384,109
676,886
35,379,738
1,939,607
$ 38,323,716
1,757,278
$ 37,137,016
LIABILITIES AND RETAINED EARNINGS
Liabilities
Members' deposits (Note 8)
Other liabilities (Note 9)
Liabilities qualifying as regulatory capital
Member shares (Note 10)
Retained earnings
Approved by the Board
Director ______________________________
Director ______________________________
08
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
Statement of Operations and Retained Earnings
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
2004
Revenue
Interest on mortgage loans
Interest on personal loans
Investment income
Third-Party ABM revenue
Other income
$
Interest expense
Member deposits
Demand
Term
Registered savings plans
Registered income funds
External borrowings
Gross profit
Expenses
Deposit insurance
Occupancy costs (Schedule)
Other administration expenses (Schedule)
Provision for impaired loans (Note 6)
Remuneration to officers and staff (Schedule)
Income before income taxes
Income taxes (Note 12)
Net income for the year
Retained earnings, beginning of the year
Retained earnings, end of the year
$
1,217,741
500,505
110,810
423,723
1,044,857
3,297,636
2003
$
1,165,195
559,225
129,956
449,225
762,738
3,066,339
6,941
261,797
318,175
67,384
19
654,316
2,643,320
6,551
249,486
334,480
69,283
1,982
661,782
2,404,557
34,582
210,711
980,133
87,677
1,107,092
2,420,195
31,563
176,452
1,017,831
7,843
1,041,817
2,275,506
223,125
40,796
182,329
1,757,278
1,939,607
129,051
26,119
102,932
1,654,346
1,757,278
$
Annual Report 2004
S t a t e m e n t o f C a s h Fl o w s
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
2004
Cash flows from operating activities
Net income for the year
Adjustments for:
Amortization
Loss on disposal of capital assets
$
182,329
2003
$
102,932
139,094
321,423
155,475
272
258,679
38,966
(45,590)
55,535
370,334
54,586
33,766
32,044
379,075
(139,627)
(2,594,404)
317,231
(2,416,800)
(38,854)
(693,913)
(132,091)
547,324
(317,534)
976,129
(27,294)
948,835
2,815,058
(59,926)
2,755,132
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of the year
Cash and cash equivalents, end of the year
(1,097,631)
6,901,164
$ 5,803,533
$
2,816,673
4,084,491
6,901,164
INTEREST AND INCOME TAXES PAID
Interest paid
Income taxes paid
$
$
$
$
641,019
4,433
Changes in non-cash working capital balances:
Prepaid expenses
Other current assets
Other liabilities
Cash flows from investing activities
Purchase of capital assets
Loans to members - net
Investments
Proceeds on disposal of capital assets
Cash flows from financing activities
Members' deposits
Membership shares
665,909
17,927
10
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
N o t e s t o t h e Fi n a n c i a l S t a t e m e n t s
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
1. Significant accounting policies
These financial statements have been prepared in accordance with Canadian generally accepted accounting principles and their
basis of application is consistent with the preceding year. Outlined below are the accounting policies considered to be significant.
The Credit Unions and Caisses Populaires Act, 1994 (the “Act”)
Regulations to the Act specify that certain items are required to be disclosed in the financial statements which are presented
at annual meetings of members. It is management's opinion that the disclosures in these financial statements and notes comply,
in all material respects, with the requirements of the Act. Where necessary, reasonable estimates and interpretations have been
made in presenting this information.
Use of estimates
The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the year. These estimates
are reviewed periodically and, as adjustments become necessary, they are reported in earnings in the year in which they become known.
Carrying values of investments
Investments in interest bearing securities are stated at cost less amortization of any purchase premiums or discounts. Investments
in cooperative organizations are stated at cost. If there is a decline in value of an investment which is considered to be other
than temporary, the investment would be written down to estimated realizable value. Investments in marketable securities are stated
at the lower of cost and net realizable value. Net realizable value is based on available publicly listed trading prices.
Gains and losses arising on the sale of investments are included in earnings from operations.
Capital assets
Capital assets are stated at acquisition cost. Amortization is calculated using the methods set out below applied to the cost
of the assets, at annual rates based on their estimated useful lives as follows:
Furniture and equipment
ATM equipment
Leasehold improvements
20%
10 years
15 years
diminishing balance
straight line
straight line
Loans to members
Loans to members are stated at cost which includes amounts advanced and applicable charges, less repayments. Interest is accounted
for on the accrual basis for all loans other than impaired loans.
A loan is classified as impaired when a specific provision has been established or a writeoff taken or when, in the opinion of
management, there is reasonable doubt as to the ultimate collectibility of principal or interest. A loan is also classified as impaired
when interest or principal is contractually 90 days past due, unless the loan is fully secured and in the process of collection. Fully
secured loans are classified as impaired after a delinquency period of 180 days. Also, a loan is classified as impaired when, in the
opinion of management, there is no longer reasonable assurance of timely collectibility of principal or interest. Once a loan is classified
as impaired, all previously accrued interest is reversed and charged against current income, except for loans which are fully secured.
Loans are generally returned to accrual status when all delinquent principal and interest payments are brought current and the timely
collection of both principal and interest is reasonably assured.
Annual Report 2004
N o t e s t o t h e Fi n a n c i a l S t a t e m e n t s
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
1. Significant accounting policies (continued)
Loans to members (continued)
The business of the credit union necessitates the management of credit risk. Credit risk is the potential for loss due to the failure
of a borrower to meet its financial obligations. The Board of Directors of the credit union oversees the risk management process.
Senior management coordinates policy setting on risk management issues, assesses the risk exposure of the credit union and reviews
the effectiveness of internal control processes.
Allowance for impaired loans
The allowance for impaired loans is maintained in an amount considered adequate to absorb estimated credit related losses in the
loan portfolio. The allowance for impaired loans reflects management's best estimate of the losses existing in the loan portfolio and
their judgements about current economic conditions. If the circumstances under which these estimates and judgements were made
change, there could be a significant change to the allowance for impaired loans which consists of specific provisions and a general
provision, each of which is reviewed on a regular basis. The allowance is increased by provisions for impaired loans which are
charged to earnings and reduced by writeoffs net of recoveries.
Specific provisions are determined on an item-by-item basis and reflect the associated estimated credit loss. The specific provision
is the amount that is required to reduce the carrying value of an impaired loan to its estimated realizable amount, which is generally
the fair value of any security underlying the loan, net of expected costs of realization.
The general provision is established to absorb potential credit losses and is determined through analysis of economic developments
and current portfolio trends for credit losses and cannot be determined on a loan by loan basis. When losses can be attributable
to individual loan facilities, specific provisions are recorded.
Write-offs are generally recorded after all reasonable restructuring or collection activities have taken place and there is no realistic
prospect of recovery.
Translation of foreign currencies
The monetary assets and liabilities of the credit union denominated in foreign currencies are translated at the rates of exchange
at the balance sheet date. Revenues and expenses are translated at the average exchange rate prevailing during the year. Exchange
gains or losses are included in operations.
Member shares
The credit union's membership shares are presented in the balance sheet as financial liabilities in accordance with recommendations
of the Canadian Institute of Chartered Accountants. These liabilities qualify as capital for regulatory purposes, notwithstanding
their financial statement classification.
2. Cash resources
The term "cash resources" as used in these financial statements consists of cash on hand, deposits maturing within one hundred
days, payroll deductions which have been made and which are in the course of being remitted. The credit union has available a
line of credit of $972,500 to cover a shortfall in cash resources due to unanticipated volume in clearings. This line of credit is
secured by a general security agreement and an assignment of book debts. At December 31, 2004, the line of credit was not utilized.
The business of the credit union necessitates the management of liquidity risk. Liquidity risk is the risk of being unable to meet
financial commitments, under all circumstances, without having to raise funds at unreasonable prices or sell assets on a forced basis.
12
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
N o t e s t o t h e Fi n a n c i a l S t a t e m e n t s
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
3. Currency held in third-party ABMs
The credit union entered into an agreement with a third-party service organization to provide currency for ABMs (automated
banking machines) owned by the third-party. As compensation, the credit union receives a fee calculated primarily by reference
to the aggregate funding provided and a prescribed interest rate. Repayments of the amounts placed into the ABMs occur through
the electronic clearing process and the credit union retains control over and legal title to such funds until repayment is made.
At the year ended December 31, 2004, the currency in third-party ABMs was $3,850,000.
4. Investments
Bonds - government guaranteed
Bank extendible step up notes
Bankers acceptances
Investments in co-operatives
Carrying value
Market value
2004
2,095,917
109,529
6,816
2,212,262
2,211,682
$
$
$
2003
2,312,594
210,083
6,816
2,529,493
2,509,764
$
$
$
5. Loans to members
Mortgages
Personal
Less allowance for impaired loans (Note 6)
2004
$ 23,740,795
5,863,872
29,604,667
164,151
$ 29,440,516
2003
$ 20,727,644
6,196,387
26,924,031
77,919
$ 26,846,112
The loan classifications set out above are as defined in the Regulations to the Credit Unions and Caisses Populaires Act, 1994.
Mortgage loans are repayable in monthly blended principal and interest installments over a maximum term of five years based
on a maximum amortization period of twenty-five years.
As at December 31, 2004, the credit union was committed to the issuance of mortgage loans to members in the aggregate
amount of $212,000 (2003 - $665,000).
As at December 31, 2004, the approved and unused line of credit limits amount to $5,396,232 (2003 - $4,435,087).
6. Allowance for impaired loans
Balance at beginning of year
Loans written off
Loans recovered
Provision charged (credited) to operations
Balance at end of year
2004
77,919
(4,468)
3,023
76,474
87,677
$ 164,151
$
$
$
2003
79,812
(13,393)
3,657
70,076
7,843
77,919
The allowance for impaired loans provided for in the accounts of the credit union is in accordance, in all material respects,
with the bylaw of the Deposit Insurance Corporation of Ontario governing such allowances.
Annual Report 2004
N o t e s t o t h e Fi n a n c i a l S t a t e m e n t s
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
6. Allowance for impaired loans (continued)
Allowance for impaired
loans balance
Mortgages
Personal
$
$
7.
2004
164,151
164,151
$
$
2003
77,919
77,919
Aggregate impaired loans
$
$
2004
150,549
45,447
195,996
$
$
2003
110,930
110,930
Capital assets
Furniture and equipment
Leasehold improvements
ATM equipment
$
$
Cost
1,653,681
263,690
438,776
2,356,147
Accumulated
Amortization
$ 1,312,681
116,017
366,417
$ 1,795,115
2004
Net Book
Value
$ 341,000
147,673
72,359
$ 561,032
2003
Net Book
Value
$ 359,901
84,361
116,236
$ 560,498
Amortization expense for the year amounted to $139,094 ($155,475 for 2003).
8. Members’ deposits
Personal chequing accounts
Savings accounts
Term deposits
Registered savings plans
Registered income funds
2004
3,694,558
7,775,151
10,785,014
11,073,900
1,926,109
$ 35,254,732
$
2003
3,486,984
8,042,687
9,695,963
10,810,092
2,242,877
$ 34,278,603
$
Registered plans
Co-operative Trust Company of Canada is the trustee of the registered plans offered to the members. Under an agreement with the trust
company, members' contributions to these plans, as well as income earned on them, are deposited in the credit union. On withdrawal,
payment of the plan proceeds is made to the members or their designates, by the credit union on behalf of the trust company.
Index-linked deposits
The credit union has issued and outstanding $946,507 (2003 - $1,054,055) of an Index-Linked Registered Savings Plan product to its
members. These term deposits have maturities of 3 and 5 years and pay interest to the depositors, at the end of the respective terms,
based on the performance of the S&P / TSX 60 Index.
The credit union has entered into hedge agreements with Credit Union Central of Ontario (CUCO) to offset the exposure to the S&P /
TSX 60 Index associated with these products. The credit union has paid CUCO an amount discounted over the term of the deposit to
fully fund the credit union's liability to Central. At the end of the term of the deposit, Central pays to the credit union an amount
equal to the amount that will be paid to the depositors based on the performance of the S&P / TSX 60 Index.
14
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
N o t e s t o t h e Fi n a n c i a l S t a t e m e n t s
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
9. Other liabilities
Accounts payable and accrued charges
Accrued interest on members' deposits
Certified cheques
Future income taxes
Income taxes payable
$
$
2004
133,746
293,485
24,000
28,555
479,786
$
$
2003
81,245
305,078
5,000
24,000
8,926
424,249
10. Member shares
The credit union has 6,964 (2003 - 7,267) members. Each member must hold between 18 and 20 shares with a par value of $5 each.
All members must acquire two shares per year until the maximum of 20 shares is reached. Shares may be withdrawn on demand
or withdrawal from membership, subject to the credit union meeting capital adequacy requirements, and the discretion of the
directors who may require notice.
11. Capital adequacy
In accordance with the requirements of the Credit Unions and Caisses Populaires Act, 1994 and accompanying Regulations,
credit unions are required to maintain sufficient capital to meet two tests:
(a) Leverage test:
Regulatory capital, comprising membership shares, any other class of qualifying capital that may be issued and retained earnings,
must amount to at least 5% of total assets.
(b) Risk-weighted assets test:
Regulatory capital, comprising membership shares, any other class of qualifying capital that may be issued and retained earnings,
must amount to at least 8% of risk-weighted assets. The risk weighting of assets is specified in the Regulations to the Act.
Regulatory capital at December 31:
(a) Leverage test ratio:
(b) Risk-weighted assets test ratio:
2004
$ 2,589,198
6.76%
15.04%
$
2003
2,434,164
6.55%
14.83%
12. Income taxes
The credit union's basic statutory tax rate is approximately 20%. Any future income taxes included in other liabilities is the
cumulative amount of tax applicable to temporary differences between the carrying amount of the assets and liabilities and
their values for tax purposes.
Annual Report 2004
N o t e s t o t h e Fi n a n c i a l S t a t e m e n t s
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
13. Commitments
The credit union is committed to the following minimum annual payments for its leased premises and ABM premises:
2005
2006
2007
2008
2009
$ 180,938
$ 181,635
$ 81,220
$ 47,748
$ 23,874
14. Related party transactions
As at December 31, 2004, the aggregate value of interest bearing personal and mortgage loans outstanding to directors, officers
and their related parties totalled $297,373 (2003 - $286,718). There was no allowance for impaired loans required in respect of
these loans as at December 31, 2004.
The Regulations require the financial statements to disclose a general description of the nature, number and aggregate value of
Restricted Party transactions, as defined, and the allowance for loan losses related to such transactions. Restricted Party has been
defined to include a person, and the person's relative, spouse, or relative of the spouse, who has been a director, officer or committee
member in the preceding twelve months, and corporations in which the person owns more than 10% of the voting shares.
15. Contingency
A claim has been made against the Credit Union. The possible outcome and the amount of future losses, if any, are not determinable
at this time. Therefore, no provision has been made in the financial statements.
16. Additional disclosures required by the Act
The only remuneration paid to directors and committee members was for travel allowance and expenses for attendance at meetings.
17. Fair value of financial instruments
The fair values of cash resources, certain other assets and other liabilities are equivalent to the respective book values given the
short-term nature of the amounts. The fair value of investments is disclosed in Note 4 to the financial statements. These are based
on quoted market prices, where available. The fair value of other financial assets and liabilities has not been determined since it
was not practicable within the constraints of timeliness and cost to determine the fair value with sufficient reliability. A significant
portion of the other financial assets and financial liabilities have either variable rates or are due within one year, and their fair
values will approximate their book values. For items that mature beyond one year, increases in market interest rates will result in
the fair values of assets and liabilities both decreasing; similarly, decreases in market interest rates will result in the fair values
of assets and liabilities both increasing. In management's opinion, the difference between fair values and book values of the other
net financial assets and liabilities would not be significant.
16
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
Schedule of Expenses
Fo r t h e ye a r e n d e d D e c e m b e r 3 1 , 2 0 0 4
2004
Other administration expenses
ATM charges
Advertising and promotion
Amortization
Annual meeting
Audit
Bank and cash charges
Bonding
Business taxes
Collection costs
Consulting
Credit reports and applications
Data processing
Directors and committee meetings
Education
Equipment maintenance
Insurance
Legal
Loss on disposal of capital assets
Mobile bank costs
Office supplies
Postage
RRSP management fees
Telephone
Vehicle
$
204,649
75,559
119,473
15,350
41,113
33,125
22,109
2,299
11,961
23,603
31,579
36,328
12,586
42,841
13,257
23,701
5,324
103,474
27,268
7,895
100,637
26,002
980,133
$
177,973
929,119
$ 1,107,092
$
$
$
$
Remuneration to officers and staff
Employee benefits
Salaries to employees
Occupancy costs
Amortization
Building repairs and maintenance
Heat, light and water
Rent
2003
$
$
19,621
41,832
4,019
145,239
210,711
158,554
81,220
135,047
14,558
43,702
27,087
54,663
27,588
1,281
22,072
30,081
34,339
33,315
16,675
36,528
20,242
33,958
272
9,327
74,837
23,572
8,133
101,578
29,202
$ 1,017,831
167,796
874,021
$ 1,041,817
$
20,429
22,077
13,420
120,526
176,452
Annual Report 2004
A l l Tra n s
In the
Community
As a Member owned, co-operative financial institution All Trans
is committed to enhancing the well being of the communities
it serves and sensitive to events that affect the well being
of communities in other areas of the world.
No one could fail to be moved by the terrible tragedy of the
Tsunami in the Indian Ocean. The All Trans Board of Directors,
immediately on learning of the catastrophe, authorized the
donation of $1,000 to the Canadian Red Cross in the name of
our Members. This donation, which was matched by an additional
$1,000 from the Government of Canada, is specifically earmarked
for Tsunami relief.
Closer to home All Trans was pleased to donate five hundred dollars
to the 2004 TTC United Way campaign. The credit union also
donated five hundred dollars to the Peregrine Falcon Foundation –
this organization is dedicated to the preservation of the rare
Peregrine Falcon species in North America. As a transportation
credit union, All Trans was pleased to contribute five hundred
dollars to the Halton County Radial Railway, an organization
dedicated to the preservation of Ontario’s transportation heritage.
The board of directors has initiated two new programs for 2005,
both of which are directed at linking the credit union’s profitability
to community programs. Starting with our 2005 fiscal year, All
Trans will donate one per cent of net profit to charitable purposes.
The board is working to define how the funds will be allocated.
Suggestions from Members in this regard are welcomed.
In 2006 All Trans will be instituting a Scholarship programmed
for which the children of our credit union members may compete.
The award will be made annually and will consist of a two
thousand dollar contribution towards college or university
tuition costs. Details of the programed are still being worked
out and will be communicated to Members later in 2005.
18
ALL TRANS FINANCIAL SERVICES CREDIT UNION LIMITED
Visit us at alltrans.com and check out our Web Banking Services.
Service Locations
ABM Locations
Administration Centre
ABMs
24 Hour Locations
ABMs
Subway Locations
Clarica Center
(2 ABMs,
also Deposit taking)
100 – 3250 Bloor St. W.
East Tower, Concourse Level
Etobicoke, Ontario
Dundas
(Eaton Center)
100 – 3250 Bloor St. W.
Clarica Centre East Tower
Etobicoke, Ontario
M8X 2X9
Tel: 416.231.8400
Fax: 416.231.8296
E-Mail: [email protected]
Toll Free Line: 1.800.363.0578
Smartmouth Teller:
416.532.BANK
(416.532.2265)
Website:
www.alltrans.com
Financial Service Pavilions
Clarica Centre
(formerly Hillcrest)
100 – 3250 Bloor St. W.
East Tower Concourse Level
Etobicoke, Ontario
M8X 2X9
Tel: 416.533.1090
Fax: 416.538.9655
London Transit
450 Highbury Ave. N.
London, Ontario
N5W 5L2
Tel: 519.453.2480
Fax: 519.453.0556
Glassworkers
(Restricted Access)
777 Kipling Ave.
Toronto, Ontario
M8Z 5Z4
Tel: 416.232.3389
TTC Hillcrest Yards
(Restricted Access)
1138 Bathurst St.
Toronto, Ontario
Tel: 416.937.1708
O I Canada
(Restricted Access)
777 Kipling Ave.
Toronto, Ontario
Bay St.
(Toronto Bus Terminal)
ABM’s
Regular Business Hours
TTC - Hillcrest Yard
Division
(Restricted Access)
Subway Operations
Building
Toronto, Ontario
London Transit
Commission
(Restricted Access)
450 Highbury Ave. N.
London, Ontario
Dufferin
Kennedy
(2 locations)
Kipling
ABMs
“Rabba/
T.O. Fine Foods”
Rabba
645 Lakeshore Rd. E.
Mississauga, Ontario
Rabba
6720 Meadowvale
Town Centre
Mississauga, Ontario
Main
Queen’s Park
Rabba
252 Queens Quay West.
Toronto, Ontario
Spadina
St. Patrick
Union Station
Warden
Sheppard & Yonge
(Sheppard Line)
Wilson
Rabba
256 Jarvis St.
Toronto, Ontario
Rabba
24 Wellesley St.
Toronto, Ontario
T. O. Fine Foods
175 River St.
Toronto, Ontario
Victoria Park
Davisville
London Transit
Commission
Downtown Ticket Office
150 Dundas St.
London, Ontario
T. O. Fine Foods
49 Lower Jarvis St.
Toronto, Ontario
Mobile Money Managers
Suzette Heber
Eastern GTA
Tel: 416.554.0726
E-Mail:
[email protected]
Brenda Heaney
Western GTA/Milton/Guelph
Tel: 416.220.7784
E-Mail:
[email protected]
Caroline Memmo
Central GTA
Tel: 416.554.0728
E-Mail:
[email protected]
Gregory Radwan
Mississauga/Oakville
Burlington/Hamilton
Tel: 416.220.7804
E-Mail:
[email protected]