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2012 Annual Report - Access Credit Union
ANNUAL REPORT 20 12 dream. build. live. right here. Contents Mission Statement ..................................................................................................1 Donations.................................................................................................................2 Executive & Management.....................................................................................8 Employee Service Awards....................................................................................11 Employee Listing....................................................................................................13 Board of Directors Report.....................................................................................16 Independent Auditor’s Report............................................................................19 Consolidated Balance Sheet..............................................................................20 Consolidated Summary of Comprehensive Income........................................21 Consolidated Summary of Changes in Members’ Equity................................ 22 Consolidated Summary Statement of Cash Flows............................................23 Notes to Consolidated Financial Statements....................................................24 Photo credit for Executive, Senior Management, Corporate & Branch Managers: Lori Franz To be an innovative, financially sound credit union dedicated to high standards of member service and supportive of the communities we serve. our vision mission our mission To be the leading provider of financial services in Southern Manitoba our core values Integrity Community Supportive Member and Employee Focused Proactive 2012 ANNUAL REPORT 1 donations Access is committed to strengthening our community by supporting organizations, charities and events that reflect the values of our members, our employees and our communities. In 2012, donations exceeded $318,000. 2 3rd Wave Trio Club Agriculture in the Classroom Altona & Area Family Resource Centre Altona Bisons Baseball Club Altona Field of Dreams Altona Minor Baseball Banquet Altona Safety Day Altona Seniors Center Altona Skateboard Park Alzheimer Society Arnaud Community Improvement Back Forty Festival Bergthal School Project Big Brothers/Big Sisters Blue Sky Opportunities Border Lane Association Boundary Trails Health Centre Foundation Boundary Trails Health Centre Winkler Auxiliary Boyne Regional Library Camp Koininia Canadian Cancer Society Canadian Museum for Human Rights Carman Back Door Youth Centre Carman & Community Chamber Carman 4-H Beef Carman Area Foundation Carman Collegiate - Scholarship Carman Memory Tree Carman Minor Ball Carman Palliative Care Carman Royal Canadian Legion Carman Sonatrice Singers Carman Tempo Festival of the Arts Child & Family Services Foundation Children’s Camps International City of Winkler Cooperative Development Foundation Curl for Cancer Décor Cabinet - Charity Classic Dominion City Recreation The Dream Factory Dufferin Ag Society Inc Ecole Parkside School Eden Health Care Services Elm Creek Bonspiel Elm Creek Canada Day Emerson Elks Emerson Kinder College Emerson School Flatlands Theatre Gallery in the Park Garden Valley School Division Scholarship Garden Valley School Safe Grad Genesis House Gideons International Golf for the Cure Gretna Community Arena Gretna Hot Spot Festival Gretna Prairie Centre Gretna Tree Lighting Gretna United Way Halbstadt Men’s Bonspeil HOPE Growing project International Golf Tournament LaRiviere 4H Beef Club Legends Car Club Lowe Farm Rink Manitoba Association of Fire Chiefs Manitoba Buckwheat Growers Manitoba Co-operative Association Manitoba Farm Women’s Conference Manitoba High School Athletic Association - Scholarship Manitoba Stampede & Exhibition Manitoba Sunflower Festival Manitou Beef & Variety Manitou Community Arena Manitou Community Swimming Pool Manitou Curling Club Manitou Honey Garlic & Maple Festival Manitou Opera House Manitou Sunset Riders Manitou-Pembina Valley Foundation Masters Curling Sponsorship Mennonite Central Committee Manitoba Miami & Area Foundation Miami Collegiate - Scholarship Miami Museum Millennium Exhibiton Centre MIT Golf Tournament Moms on a Mission Moose Lake Work Day Morden & District United Way Morden Access Event Centre 2012 ANNUAL REPORT Morden Area Foundation Morden Bantam AA Hockey Morden Block Party Morden Chamber Awards Morden Collegiate - Scholarships Morden Corn & Apple Festival Morden Festival of the Arts Morden Firefighters Association Morden Friendship Centre Morden Integration Committee Morden Parent & Child Resource Centre Morden Police Service Charity Derby Morden Safe Grad Morden Tabor Home Morris Curling Club Morris Highschool - Scholarship Morris Palliative Care Mosasaur Monument MSOS 88 Plus Games Sponsor Multiple Sclerosis Society Nellie McClung Collegiate - Scholarship Neunberg Birkenhead Homecoming Parkinson Society Parkside School Pembina Manitou Log House Tourism Pembina Counselling Centre Pembina Hills Art Council Inc Pembina Threshermens Museum Pembina Tigers Pembina Valley Bible Camp Pembina Valley Development Corporation Pembina Valley Hawks - Scholarship Pembina Valley Humane Society Pembina Valley Junior Golf Tour Pembina Valley Panthers Pembina Valley Tourism Pembina Valley Twisters Plum Coulee Express Plum Coulee Fire & Rescue Plum Coulee School Plum Coulee School Advisory Council Port in the Storm Post Road Heritage Group Inc. Prairie Dale School Parent Advisory Council Prairie Rose School Division RCHP - Summerfest Donation Red River Valley 4-H - Bursary Rhineland Empty Stocking Fund 2012 ANNUAL REPORT Rhineland Food Bank RM of Roland - Memory Garden Roland Golf Club Roland Pumpkin Fair Roseau Valley School - Scholarship South Central Cancer Resource South Central Soccer Club South Central Committee on Family Violence Southern Manitoba Choral Society Southern Manitoba Concerts Sperling Community Club - Playground project St. Daniel Community Club Stanley Ag Society Stanley Soil Management Swan Lake Rink Committee Wasagaming Foundation WC Miller Collegiate - Scholarship Wee Care Child Centre Western School Division Jail & Bail Windygates Beef Club Winkler & District Christmas Cheer board Winkler & District United Way Winkler Bible Camp Winkler Centennial Golf Course Winkler Chamber of Commerce Winkler Christmas Cheer Board Winkler Community Foundation Citizen of the year Banquet Winkler Community Foundation Katie Cares Foundation Winkler Community Foundation Winkler Food Cupboard Winkler Curling Club Winkler Day Care Centre Inc Winkler Elementary School Advisory Council Winkler Elementary Vocal Jazz Winkler Festival of the Arts Winkler Flyers Winkler Food Cupboard Thanks for Giving Run Winkler Golf Club Winkler Minor Hockey Association Winkler Rebels Winkler Salem Foundation Winkler Senior Centre Winkler Skateboard Park Winkler Wild Soccer Club Youth For Christ donations Together, we dream, build and live, right here. 3 community 4 The P.W. Enns Business Excellence Award was presented to the Winkler Branch of Access Credit Union for their exceptional contributions to the community and quality service. left to right: Access staff: Chantel Wiebe, Keri Dyck, Rachel Wall, Carol Fehr, present a cheque to BTHC Foundation administrator, Carol Worms (on far right). As part of Access CU’s e-statement campaign, $1 was donated to the foundation for every paper statement converted to an electronic statement. The staff pictured here, along with Melanie Waddingham, converted the most number of statements during the campaign. photo by Lori Franz. 2012 ANNUAL REPORT community Mark Friesen was the lucky winner of the 2012 MemberCard Debit Card Sweepstakes. Mark was randomly selected and won $500.00 just for using his debit card. The nation-wide contest runs every fall. Photo courtesy of Lori Penner, Red River Valley Echo From left, Laura Plett of Cancer Suppport Services, grand prize winner Jacob Neustaeter and Access CU ‘s Mallory Penner hold the big cheque which Jacob received after winning the 2012 Mastercard Choice Rewards Jet-Set Getaway. As the regional grand prize winner, Jacob won a $5,000 travel voucher, and was also given $2,500 for any charity of his choice. He chose the Canadian Cancer Society as the recipient of the donation. This is the second time an Altona member has won this regional contest. photo courtesy of Lori Penner, Red River Valley Echo. 2012 ANNUAL REPORT 5 community Chris Harms presents a cheque in support of the Plum Coulee School Advisory group. John Giesbrecht, Plum Coulee Branch Manager presents a cheque to the Moms on a Mission group. Morden staff packing up Christmas Hampers. Ruth Reimer from the Katie Cares Foundation received a donation of $5,000 from Access. The region’s golf courses teamed up with Access Credit Union to bring competitive golf to the Pembina Valley. The Pembina Valley Junior Golf Tour ran for 6 weeks and took place at six courses Morden, Miami, Morris, Gretna, Winkler and Carman. 6 Fun with MAXX at the Manitou Agricultural Fair 2012 ANNUAL REPORT Tim Doerksen presenting a $2,500 cheque to Suzanne Schroeder representing Sperling Community Club for the playground project. Terry Hamm, Winkler Com/Ag Manager presenting a cheque to Charles Dyck from the Winkler Curling Club. community Dan McCausland, Regional Manager West, presents a cheque to Terry Gibson from the Morden United Way. Leona Falk presents a cheque for $2,000 to Altona/ Gretna District United Way representative, Sharon Friesen. photo courtesy of Greg Vandermeulen, Red River Valley Echo. Access Credit Union has given the new Tabor Home fundraising committee a quarter of a million dollar boost. Left to right: RM of Stanley Reeve Art Petkau, Tabor Home board chair Wilf Warkentin, Tabor Home CEO Sherry Hildebrand, Tabor Home fundraising committee chair Wayne Kroetsch and Access Credit Union President and CEO Larry Davey 2012 ANNUAL REPORT 7 EXECUTIVE executive Larry Davey, President & CEO Myrna Wiebe, SVP & COO Reuben Schulz, SVP & CFO 8 2012 ANNUAL REPORT Anna Wieler VP, Human Resources Murray Derksen VP, Credit CORPORATE MANAGERS Louis Tanguay Director of Credit Fran Derksen Controller Randy Penner Manager of Information Technology Marlin Froese Manager of Banking Systems 2012 ANNUAL REPORT management SENIOR MANAGEMENT Joel Billing Manager of Internal Audit Carissa Wall Manager of Centralized Services 9 branch managers 10 Chris Hildebrand, Regional Manager Central Terry Hamm, Manager of Comm/Ag Lending - Winkler Dan McCausland, Regional Manager West Wes Schroeder, Regional Manager East John Giesbrecht, Plum Coulee Branch Manager Tim Doerksen, Regional Manager North Dennis Matthies, Lowe Farm & Morris Branch Manager Mitzi Borodenko, Dominion City Branch Manager Shane Norrie, Manitou Branch Manager David Domes, Oak Bluff & Sanford Branch Manager Shelley Bartley, Miami Branch Manager Jeff Samson, Area Manager Missing from photos: Dee Dee St. Godard, Emerson Retail Branch Manager 2012 ANNUAL REPORT front left to right: Roberta Buelow, Laura Znak, Maryanne Giesbrecht, Janesa Derksen, Beth Comtois, Linda Villeneuve, Suzanne Friesen. middle left to right: Keith Norrie, Darlene Klassen, Wil Montgomery, Susie Wiebe, Fedor Sawazki, Melissa Friesen, Andrea Froese, Eva Klassen. back left to right: Jeffrey Klassen, Tyronne Wall, Chris Harms, Viktor Toews, Darrin Bueckert 10 Years of Service left to right: Joel Billing, Irma Reimer, Kern Baker, Carrol Dales, Eric Braun 15 Years of Service employee service awards 5 Years of Service left to right: Judy Dueck, Blaine Bruce 2012 ANNUAL REPORT 11 employee service awards 20 Years of Service Heather Collette Inset photo: Lori Dueck 25 Years of Service left to right: Sandra Harder, Lloyd Baumgart, Carrie Canvin, Dorothy Giesbrecht 35 Years of Service Jeannie Phillips 12 2012 ANNUAL REPORT Listing as of December 31, 2012 Altona Branch: Jaleesa Hiebert Gretna Branch: Alex Braun Jeannie Phillips Curt Falk Becky Froese Jo-Ann Wood Jamie Dyck Bill Penner Judy Dueck Marge Friesen Cathy Van Hook Kate Froese Rebecca Toews Dana Klassen Kim MacLellan Richard Doerksen Eduard Winkler Kristi Thielmann Jeff Samson Glen Armstrong Lionel Ewbank Glenn Reimer Lisa Iverson Heidi Barkman Lorna Last Irma Reimer Matt Falk Lowe Farm Branch: Jessica Enns Sarah Martens Cathy Ballantine Jessica Neufeld Tamara Yeo Dennis Matthies Leona Falk Tanis Ducharme Keri Dyck Linda Villeneuve Tim Doerksen Valerie Wall Lynette Giesbrecht Trevor Wiens employees Access employs 256 people who live and work, right here. Mallory Penner Mary Anne Friesen Manitou Branch: Meredith Enns Dominion City Branch: Nathan Elias Barbara Schultz Jackie Dobson Ross McMillan Mitzi Borodenko Jen Wilson Susie Falk Melanie Waddingham Lori Nadin Tracy Klassen Norma Mueller Shane Norrie Meaghan Lomax Gail Lea Tiffany Fijala Val Penner Wes Schroeder Arlene Jordan Emerson Branch: Carman Branch: Dawna Knutt Miami Branch: Amber Trudel Dee Dee St. Godard Andra Bayliss Carrol Dales Keesy Rodewald Joyce Dawson Chelsea Vandergugten Renee Neufeld Mary McCharles Doug Kent 2012 ANNUAL REPORT Shelley Bartley 13 employees Morden Branch: Morris Branch: Winkler Branch: Allison Titchkosky Brenda Klassen Abraham Animalla Arlene Heide Cindy Janzen Allison Wiebe Bev Morden Danae Parkinson Amanda Slobodian Brenda Wooley Dennis Matthies Andrea Froese Brittany Herman Heather Collette Angelina Neufeld Carol Fehr Sandra Harder Angi Friesen Carol Letkeman Susan Chartier Amanda Nickel Dan McCausland Tamara Friesen Anna Matuszewski Darlene Klassen Anna Toews Dorothy Giesbrecht Anneta Kornelsen Janice Wiebe Oak Bluff Branch: Arlene Peters Jeff Demke David Domes Chris Hildebrand Ina Nickel Donna Larner Cristina Fehr Karen Toews Janet Hunt Deb Wolfe Kate Tickner Karen Elliott Dorothy Wieler Keith Norrie Michelle Simmons Fedor Sawazki Lauren MacLean Hailey Wiebe Lynda Clayson Irene Nikel James Funk Michael Loewen Plum Coulee Branch: Norma Titchkosky Brad McEachern Jim Kort Sara Stoesz Chris Froese John Elias Sharalee Medynski Chris Harms John Wieler Sheralee Forsyth Deborah Buhler Joshua Ginter Sven Melling Joel Janzen Justine Pohl Vanessa Peters John Giesbrecht Kathy Wieler Vickie Froese Katie Suderman Megan Robinson Janesa Derksen Kimberly Bergman Credential 14 Kim Hildebrand Jeffrey Klassen Sanford Branch: Lisa Loewen Sheri Oakes Amy Robertson Margaret Fehr Carolyn Worden Marge Kuhl James Cruise Marge Teichroeb Sandy Pouteau Marilyn Reimer 2012 ANNUAL REPORT Corporate Larry Davey Mark Peters Alison Harbinson Laura Znak Melissa Voth Anna Wieler Leona Rachul Nic Friesen Audrey Dick Linda Zacharias Rachel Klassen Betty Goertzen Lisa Enns Rachel Friesen Candace Mutcheson Liz Fehr Rachel Pauls Carissa Wall Lori Dueck Rachel Wall Carol Brad Louis Tanguay Rebecca Klassen Carrie Canvin Luella Seabaugh Rhonda Toews Chris Schellenberg Marianne Klassen Rita Shore Cynthia Harrington Marina Raabe Rosella Sawatzky Darlene Klassen Marlene Falk Sylvie Lacke Darrin Bueckert Marlin Froese Tara Viallet Darren Heide Melissa Friesen Terry Peters David Enns Melissa Saltesz Tom Peters Diane Graham Myrna Wiebe Tony Teichroeb Eduard Toews Murray Derksen Viktor Toews Eric Braun Natalie Hildebrand Wil Montgomery Eugenie Sawatzky Nettie Klassen Eva Klassen Nicole Penner Winkler Comm|Ag Fran Derksen Pam Krassman Debra St. Hilaire Fran Wiebe Paul Funk Kelvin Friesen Glenda Lepage Randy Penner Kern Baker Hank Hildebrand Reuben Schulz Lloyd Baumgart Irma Fehr Roberta Buelow Martin Derksen Janis Ehnes Roseanne Wiebe Robert Unruh Jennifer McArthur Sam Driedger Ruth Sukkau Jessi Fehr Stephanie Mejia Sheldon Heinrichs Joan Penner Sue Giesbrecht Terry Hamm Joel Billing Susie Wiebe Trevor Wiebe Josia Toews Suzanne Friesen Tyronne Wall Judy Wahl Traycee Peters Julie Frisch Vanessa Giesbrecht Keri Wilson Wanda Fehr 2012 ANNUAL REPORT employees Maryanne Dyck 15 board report BOARD REPORT The Board of Directors of Access Credit Union is pleased to share the results for your credit union, over the past twelve months. Three and a half years ago, your positive vote resulted in 5 credit unions coming together to form Access Credit Union. Through that time, we have focused on our vision “To be the leading provider of financial services in Southern Manitoba.” Jim Neufeld The road has not been totally smooth, with the credit union encountering some operational difficulties as we aligned from 5 credit unions to 1, as well as weathering the economic upheaval that hit the global financial markets in 2009. Through this transformation our membership has stood behind us and for that, we can report, you are Phil Unruh a member of one of the strongest credit unions in the province. Given our strength and our commitment to community, Access Credit Union is a financial institution which other credit unions have asked to join. In April of 2012, the membership of Sanford Credit Union voted 98% in favor of merging with Access and they became part of our credit union, January 1st 2013. In November of 2012 Access and Community Credit Union agreed to enter discussions relative to the two credit unions coming together. In February 2013 Community members voted 95.2% in favor of becoming part of Access. These two votes are a testament to the direction your credit union is going and to the strength of our organization. Sieg Neumann John Veldman John Wiens, Chair This past year is continued evidence that your credit union has maintained its commitment to community support. Financially, we gave in excess of $318,000 to numerous organizations within our service area. In addition, over 80% of our staff volunteered close to 10,000 hours in our communities. Over the past year, the leadership at the credit union has changed. Our President and CEO, Robert Jones moved into retirement and we cannot thank Robert enough for his commitment over the past 20 years, first with Winkler Credit Union, then Heartland Credit Union and finally steering us through the amalgamation as Access Credit Union. Robert is one of the reasons your credit union is as strong as it is today. After much time and effort by your board, we hired a new leader for Access. On July 3rd, 2012, Larry Davey accepted the role as President and Chief Executive Officer of Access Credit Union. We welcome Larry and are confident he will take us to the next level. The strong results this past year .... allows your Board of Directors 16 2012 ANNUAL REPORT Our income statement is reflective of some of the final amortized costs relative to the amalgamation. We witnessed our financial margin grow year over year, but our other income fell back by about 7%. As such our gross financial margin reduced by about $800,000 this past year. However, because of our strength and the conservative approach we took to our loan allowance, we were able to recapture some of these monies back into income. Our income before tax jumped up by approximately $750,000, to just over $11,000,000 compared to the previous year. Sandra Doell Ben Dueck Dennis Kehler Ray Kirk The strong results this past year, in conjunction with the overall strength of your credit union, allows your Board of Directors, to return some of your surplus shares back to you in cash. Access Members as of Darryl Loewen Curt Letkeman December 31, 2012, who are turning 65 or older by the end of 2013, will receive all of their VIP shares back in cash, into their daily account. All other personal members (excluding businesses) will receive 10% of the VIP shares back in cash into their daily account. This represents just under $2.7M being returned back to our members and their communities. These transactions should take place by April 30, 2013. It is the Board of Directors intention to try and return all VIP surplus shares to their owners in cash by the end of 2017. board report Financially we enjoyed another strong year, with our assets growing by 7% year over year and ending 2012 at $1,507,217,204. Our member deposits grew by just under 7% to $1,393,695,049, while our member loans grew to $1,310,845,864, which represented just over 11% growth in loans. The addition of Sanford and Community credit unions this year will add 5 locations to serve the membership, as well as an additional $150,000,000 in assets to our balance sheet. The Board is very appreciative of the support we continue to receive from our members and are excited to have the new members from Sanford and Community credit unions join our organization during the upcoming year. We also want to thank our staff for the exceptional effort they continue to put forth. We remain committed to our direction and look forward to building on our vision. to return some of your surplus shares back to you in cash. 2012 ANNUAL REPORT 17 FINANCIAL STATEMENTS 20 12 Tel/Tél.: 204 956 7200 Fax/Téléc.: 204 926 7201 Toll-free/Sans frais: 800 268 3337 www.bdo.ca 700 - 200 Graham Avenue Winnipeg MB R3C 4L5 Canada BDO Canada LLP/s.r.l. 700 - 200 Graham Avenue Winnipeg MB R3C 4L5 Canada Report of the Independent Auditor on the Summary Financial Statements Report of the Independent Auditor on the Summary Financial Statements To the Members of ACCESS CREDIT UNION LIMITED The accompanying summary financial statements, which comprise the summary con- solidated balance sheetCREDIT as at UNION December 31, 2012 and the summary consolidated To the Members of ACCESS LIMITED Reportofofcomprehensive the Independent Auditor on the Summary Financial statements income, changes in members’ equity Statements and cash flows are accompanying derived fromsummary the audited consolidated statements of ACCESS CREDIT The financial statements,financial which comprise the summary consolidated balance sheets at December 31,year 2011, December and January 1, 2010, and summary UNIONasLIMITED for the then ended. 31, We 2010 expressed an unmodified auditthe opinion consolidated statements of comprehensive income, summary consolidated statements of changes in on those financial statements in our report dated February 20, 2013. equity and summary statements of cash flows for the years ended December Tomembers' the Members of ACCESS CREDITconsolidated UNION LIMITED 31, 2011 and December 31,statements 2010, are derived from the audited consolidated financial statements of The summary financial do not contain allthe thesummary statements and disclosures The accompanying financialfor statements, consolidated balance ACCESS CREDIT summary UNION LIMITED the yearswhich endedcomprise December 31, 2011 and December 31, 2010. We required International Financial Reporting Standards. Reading the summary finansheets as at by December 31, audit 2011, December 2010 and January 1, 2010, andreport the summary expressed an unmodified opinion on 31, those financial statements in our dated February cial2012. statements, therefore, is not aincome, substitute for consolidated reading thestatements audited of financial consolidated statements of comprehensive summary changes statein 15, members' summary consolidated statements of cash flows for the years ended December mentsequity of theand Credit Union. 31, 2011 and December 31, 2010, are derived from the audited consolidated financial statements of The summary financial statements do not contain all the statements and disclosures required by ACCESS CREDIT UNION LIMITED for the years ended December 31, 2011 and December 31, 2010. We Management’s Responsibility for theReading Summary Financial Statements International Financial Reporting Standards. the summary financial statements, therefore, is expressed an unmodified audit opinion on those financial statements in our report dated February not a substitute for reading the audited financial statements of the Credit Union. Management is responsible for the preparation of a summary of the audited financial 15, 2012. statements on the basis described in Note 1. Management's Responsibility Financial Statements The summary financial statementsfordothe notSummary contain all the statements and disclosures required by Management is responsible for the preparation summaryfinancial of the audited financial statements on International Reporting Standards. Reading of theasummary statements, therefore, is Auditor’sFinancial Responsibility basis described in Note 1. notthe a substitute for reading the audited financial statements of the Credit Union. Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Canadian Audit Stan- Auditor’s Responsibility Management's Responsibility for the Summary Financial Statements dardresponsibility (CAS) 810, is‘Engagements Report onthe Summary Financial Statements’. Management is responsible the preparation of aon summary of the audited financial statements on on our Our toforexpress an to opinion summary financial statements based the basis described in Note 1. conducted in accordance with Canadian Audit Standard (CAS) 810, procedures, which were Opinion to Report on Summary Financial Statements'. 'Engagements auditor’s report Fax/Téléc.: 204 926 7201 Toll-free/Sans frais: 800 268 3337 www.bdo.ca Auditor’s In ourResponsibility opinion, the summary financial statements derived from the audited consoliOur responsibility is to express an opinion on the summary financial statements based on our Opinion dated financial statements of ACCESS CREDIT UNION LIMITED for the year ended procedures, which the were conducted in accordance with Canadian Standard (CAS) 810,financial In our opinion, summary financial statements derived from Audit the audited consolidated December 31, 2012 is a fair summary of those financial statements, on the basis 'Engagements to Report on Summary Financial Statements'. statements describedofinACCESS Note 1.CREDIT UNION LIMITED for the years ended December 31, 2011 and December 31, 2010 are a fair summary of those financial statements, on the basis described in Note 1. Opinion In our opinion, the summary financial statements derived from the audited consolidated financial statements of ACCESS CREDIT UNION LIMITED for the years ended December 31, 2011 and December 31, 2010 are a fair summary of those financial statements, on the basis described in Note 1. Chartered Accountants Chartered Accountants Winnipeg, Manitoba Winnipeg, Manitoba February 2013 Chartered Accountants February 15,20, 2012 Winnipeg, Manitoba February 15, 2012 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. 1 1 et fait BDO Canada s.r.l., une société canadienne à responsabilité limitée, est membre de BDO International Limited, société de droit anglais, BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and partie du réseau international de sociétés membres indépendantes BDO. forms part of the international BDO network of independent member firms. BDO Canada s.r.l., une société canadienne à responsabilité limitée, est membre de BDO International Limited, société de droit anglais, et fait partie du réseau international de sociétés membres indépendantes BDO. 2012 ANNUAL REPORT 19 Access Credit Union Limited Summary Consolidated Balance Sheet statement December 31 2012 2011 Assets Funds on hand and on deposit $ 42,319,552 $ 40,093,360 Other assets 826,296 2,020,965 Investments 131,771,521 172,277,752 - 21,400 1,310,845,864 1,177,022,756 15,113,857 10,514,984 Intangible assets 1,394,177 1,467,050 Investment property 2,078,877 1,904,264 Investments in associates 2,867,060 2,581,164 Deferred income tax asset Loans to members Property, plant and equipment $ 1,507,217,204 $ 1,407,903,695 Liabilities and Members’ Equity Income taxes payable Other liabilities Members’ deposits $590,776 $ 74,391 6,230,426 5,259,933 1,393,695,049 1,304,438,308 8,200 - 1,400,524,451 1,309,772,632 14,370,432 14,991,704 295,708 295,708 92,026,613 82,843,651 106,692,753 98,131,063 Deferred income tax liability Commitments Members’ Equity Members’ shares Accumulated other comprehensive income Retained earnings $ 1,507,217,204 $ 1,407,903,695 20 The accompanying notes are an integral part of these summary consolidated financial statements. 2012 ANNUAL REPORT Access Credit Union Limited Consolidated Summary Statement of Comprehensive Income 2012 For the year ended December 31 Revenue Interest on loans to members Investment income Profit from associates Liquidity deposits Shares and debentures $48,479,392 2011 $ 47,087,318 590,925 4,670,912 1,192,059 789,132 4,647,171 1,394,251 54,933,288 53,917,872 Cost of funds 28,083,827 28,491,768 Gross financial margin 26,849,461 25,426,104 Operating expenses Personnel Administrative Occupancy Members’ security Organizational 15,018,844 5,368,496 2,133,318 1,474,527 670,014 13,566,131 5,129,130 1,992,626 1,247,607 1,074,621 Gross operating expenses 24,665,199 23,010,115 7,249,277 7,813,955 17,415,922 15,196,160 9,433,539 10,229,944 Provision for impaired loans (recovery) (1,666,002) (119,988) Income before income taxes 11,099,541 10,349,932 1,886,979 29,600 1,360,185 (27,200) 1,916,579 1,332,985 9,182,962 9,016,947 - (38,129) Less other income Gross operating income Provision for income taxes Current Deferred Net income for the year Other comprehensive income (net of tax) Change in unrealized gains/(losses) on available-for-sale investments Net and total comprehensive income for the year $9,182,962 $ statement 8,978,818 The accompanying notes are an integral part of these summary consolidated financial statements. 2012 ANNUAL REPORT 21 Access Credit Union Limited Consolidated Summary Statement of Changes in Members’ Equity statement For the year ended December 31 Accumulated Other Comprehensive Income Balance at December 31, 2010$ Net income for the year Members’ Shares Retained Earnings Total 333,837 $ 15,753,502 $ 73,826,704 $ 89,914,043 - - 9,016,947 9,016,947 Issue of members’ shares - 9,295 - 9,295 Redemption of members’ shares - (771,093) - (771,093) (38,129) - - (38,129) 295,708 14,991,704 82,843,651 98,131,063 - 9,182,962 10,880 - (632,152) - Change in unrealized gains/(losses) on available-for-sale investments Balance at December 31, 2011 Net income for the year Issue members’ shares Redemption of members’ shares - 9,182,962 10,880 (632,152) Change in unrealized gains/(losses) on available-for-sale investments Balance at December 31, 2012$295,708 $ 14,370,432 $ 92,026,613 $ 106,692,753 The accompanying notes are an integral part of these summary consolidated financial statements. 22 2012 ANNUAL REPORT Access Credit Union Limited Consolidated Summary Statement of Cash Flows 2012 Cash Flows from Operating Activities Net income for the year Adjustments for Interest and investment revenue Interest expense Depreciation expense Provision for impaired loans Loss on disposal of property, plant and equipment Deferred income taxes Change in other assets and liabilities Change in income taxes payable Changes in member activities (net) Change in loans to members Change in members’ deposits $9,182,962 Cash flows related to interest, dividends, and income taxes Interest received on loans to members Interest received on investments Dividends received on investments in associates Interest paid on members’ deposits Total cash flows from operating activities Cash Flows from Investing Activities Purchase of investment property Purchase of investments Redemption of investments Purchase of property, plant and equipment Purchase of intangibles Total cash flows from investing activities Cash Flows from Financing Activities Issue of common and surplus shares Redemption of common and surplus shares Total cash flows from financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Comprised of the following: Funds on hand and on deposit Credit Union Central of Manitoba term deposits 2011 $ 9,016,947 (54,933,288) 28,083,827 922,734 (1,666,002) 8,250 29,600 (53,917,872) 28,491,768 899,825 (119,988) 3,510 (27,200) (18,371,917) (15,653,010) 2,165,162 516,385 (1,106,706) 172,435 2,681,547 (934,271) (132,302,492) 90,325,593 (97,333,794) 129,042,994 (41,976,899) 31,709,200 48,624,778 5,941,586 305,029 (29,152,679) 46,746,353 5,795,396 246,799 (28,575,325) 25,718,714 24,213,223 (31,948,555) 39,335,142 (220,618) (9,314,784) (5,270,455) (140,524) (1,912,232) 3,345,451 (1,182,914) 32,073 (14,946,381) 282,378 10,880 (632,152) 9,295 (771,093) (621,272) (761,798) (47,516,208) 38,855,722 185,794,360 146,938,638 $ 138,278,152 $ 185,794,360 $ 42,319,552 95,958,600 $ 40,093,360 145,701,000 $ 138,278,152 $ 185,794,360 statement For the year ended December 31 The accompanying notes are an integral part of these summary consolidated financial statements. 2012 ANNUAL REPORT 23 Access Credit Union Limited Notes to Summary Consolidated Financial Statements notes For the year ended December 31, 2012 1. Management is responsible for the preparation of summary financial statements. The summary presented includes only the summary consolidated balance sheet and the summary consolidated statement of comprehensive income, summary consolidated statement of changes in members’ equity and summary consolidated statement of cash flows. It does not include any other schedules or the notes to the financial statements. The summary consolidated balance sheet and summary consolidated statement of comprehensive income, summary consolidated statement of changes in members’ equity and summary statement of consolidated cash flows are presented in the same detail as the audited financial statements except the note referencing has been removed. Copies of the December 31, 2012 audited consolidated financial statements are available at the Credit Union’s Corporate Office at PTH #14, Unit #2, Stanley Business Centre, Winkler Manitoba or online at www.accesscu.ca. 2. Compliance with Minimum Capital and Liquidity Requirements The Credit Union is in compliance with the capital and liquidity reserve requirements at December 31, 2012 established by the Regulations to The Credit Unions and Caisses Populaires Act of Manitoba. Readers of the summary financial statements are advised that in order to appropriately interpret the Credit Union’s capital and liquidity, the reader must refer to the audited financial statements including notes for the year ended December 31, 2012, which contain the information detailing the calculations. 24 2012 ANNUAL REPORT Open 6 Days in 4 Locations: ALTONA Monday-Thursday ............... 9:30-4:30 Friday .................................... 9:30-5:00 Saturday ............................... 9:30-3:00 LOWE FARM Tues-Thurs ..... 9:00-12:00/1:00-4:30 Friday............ 9:00-12:00/1:00-5:00 Saturday ...... 9:00-12:00/1:00-3:00 CARMAN Monday-Thursday ............... 9:30-4:30 Friday .................................... 9:30-5:00 Saturday ............................... 9:30-3:00 MANITOU Monday-Thursday.......... 9:30-4:30 Friday .............................. 9:30-5:00 OAK BLUFF Tuesday-Friday ................ 9:00-5:00 Saturday .......................... 9:00-3:00 PLUM COULEE Tuesday-Friday ................ 9:00-5:00 Saturday .......................... 9:00-3:00 MIAMI Mon-Thurs .... 9:00-12:00/1:00-4:30 Friday ........... 9:00-12:00/1:00-5:00 SANFORD Tuesday-Thursday ........... 9:00-5:00 Friday ............................... 9:00-5:30 Saturday .......................... 9:00-2:00 EMERSON Tuesday-Friday... 9:00-12:00/1:00-5:00 Saturday .............9:00-12:00/1:00-3:00 MORDEN Monday-Thursday ......... 9:30-4:30 Friday .............................. 9:30-5:00 Saturday......................... 9:30-3:00 WINKLER Monday-Wednesday ..... 9:30-4:30 Thursday .......................... 9:30-8:00 Friday ............................... 9:30-6:00 Saturday.......................... 9:30-3:00 GRETNA Tuesday-Friday ..................... 9:30-5:00 Saturday ............................... 9:30-3:00 MORRIS Monday-Thursday ......... 9:30-4:30 Friday .............................. 9:30-5:00 DOMINION CITY Monday-Thursday ............... 9:00-4:30 Friday .................................... 9:00-5:00 14 BRANCHES ALTONA | 129 - 3rd Avenue NE | 204.324.6437 C A R M A N | 7 - 1 s t Av e n u e | 2 0 4 . 7 4 5 . 2 0 4 3 DOMINION CITY | 122 Waddell Ave | 204.427.2444 EMERSON | 13 Main Street | 204.373.2195 GRETNA | 542 Hespeler Avenue | 204.327.5822 LOWE FARM | 52 Main Street | 204.746.8766 MANITOU | 330 Ma in Street | 204.242.2756 MIAMI | 517 Norton Avenue | 204.435.2161 MORDEN | 430 Stephen Street | 204.822.4485 MORRIS | 100 Main Street | 204.746.2391 OAK BLUFF | 53A PTH 3E | 204.895.0005 PLUM COULEE | 257 Main Street | 204.829.3655 SANFORD | 7 Mellow Street | 204.736.2373 WINKLER | 295 Main Street | 204.325.4351 Printed on 100% recycled paper.
