Annual Report - OPPA Credit Union

Annual Report
2015
Table of Contents
Winners of the 2015 OPPA Credit
Union Educational Scholarship Awards
2
2015 Photo Highlights
3
Agenda of the 44th Annual General Meeting
4
Minutes of the 43rd Annual Meeting
5
Report of the Board of Directors
8
Report of the Chief Executive Officer
9
Report of the Senior Manager, Credit and Risk
10
Audit Committee Report
11
Five Year Operating Highlights
12
Board of Directors
13
Management and Staff
14
Staff Service Awards
15
Management’s Responsibility for
Financial Reporting
16
Auditor’s Report and
Financial Statements
17
Contact Us
23
Winners of the 2015 OPPA Credit Union
Educational Scholarship Awards
2
2015 Photo Highlights
3
Agenda of the 44th Annual General Meeting
DATE
Thursday, April 28, 2016
TIME
Registration at 6:00 p.m.
Meeting at 6:30 p.m.
LOCATION
Sheba Shrine Club
142 John Street
Barrie ON
AGENDA
1.
Call to Order
2.
Registration Report & Declaration of Quorum
3.
Official Welcome
4.
Adoption of Minutes of 43rd Annual Meeting
5.
Adoption of Reports:
• Auditor’s Report
• Audit Committee Report
• Board of Directors Report
• Chief Executive Officer’s Report
• Senior Manager, Credit and Risk Report
6.
New Business:
• Appointment of External Auditors
• Approval of By-law change
7.
Director Election
8.
Service Awards Presentation
9.
Question Period
10.
Door Prizes
11.
Adjournment
DINNER AND REFRESHMENTS
4
Minutes of the 43rd Annual Meeting
ONTARIO PROVINCIAL POLICE ASSOCIATION
CREDIT UNION LIMITED
SHEBA SHRINE CENTRE
142 JOHN STREET, BARRIE, ONTARIO
APRIL 22, 2015
The meeting was called to order at 6:30 p.m. by Steve Ridout. It was confirmed that a quorum
was present with 47 members and 3 guests. An official welcome was extended to all members
and guests. A moment of silence was held in remembrance of all OPPA Credit Union members
who passed away during the last year.
ADOPTION OF 2014 AGM MINUTES
MOTION
Moved by Bill Soule, seconded by Noreen Angus, that the minutes of the 42nd
Annual Meeting held on April 23, 2014 be adopted as published in the 2014
Annual Report.
VOTE – 47 FOR
CARRIED
REPORTS
AUDITORS’ REPORT
The Auditors’ Report for the year 2014 was reviewed by Mike Jones of Jones and O’Connell.
MOTION
Moved by Debbie Sokoloskie, seconded by Bob McAfee, that the Auditors’
Report for 2014 be adopted as presented.
VOTE – 47 FOR
CARRIED
AUDIT COMMITTEE REPORT
MOTION
Moved by Noreen Angus, seconded by Jill Bennett, that the Audit Committee
Report for 2014 be adopted as published in the 2014 Annual Report.
VOTE – 47 FOR
CARRIED
BOARD OF DIRECTORS REPORT
MOTION
Moved by Karen Zammit, seconded by Donna Soule, that the Report of the Board
of Directors be adopted as published in the 2014 Annual Report.
VOTE – 47 FOR
CARRIED
5
CHIEF EXECUTIVE OFFICER’S REPORT
MOTION
Moved by Laurie Dennis, seconded by Tammy Lewis, that the Report of the Chief
Executive Officer be adopted as published in the 2014 Annual Report.
VOTE – 47 FOR
CARRIED
REPORT OF THE SENIOR MANAGER, CREDIT AND RISK
MOTION
Moved by Neil Vingerhoets, seconded by Andrew Shannon, that the Report of
the Senior Manager, Credit and Risk be adopted as published in the 2014 Annual
Report.
VOTE – 47 FOR
CARRIED
NEW BUSINESS
APPOINTMENT OF AUDITORS
MOTION
Moved by Danita Hellingman, seconded by Suzanne Chaddock, that as per
recommendation of the Audit Committee, we appoint the firm of Jones and
O’Connell as auditors for the fiscal year 2015.
VOTE – 47 FOR
CARRIED
BY-LAW CHANGE
MOTION
Moved by Fred Bertucca, seconded by Noreen Angus, to approve by-law change
to Paragraph 4.4 as approved by the Board of Directors on October 27, 2014.
Steve Ridout asked if there were any questions from the floor. A question was
posed asking for an explanation for the By-law amendment. Bryan Neely
explained the reason for the proposed change to our borrowing By-law.
VOTE – 47 FOR
CARRIED
ELECTION OF OFFICERS
Steve Ridout called on Neil Vingerhoets to act as Election Chairperson for the election of
officers. The one position expiring at this Annual Meeting (Steve Ridout) was declared vacant.
Steve Ridout has previously submitted his intent to stand for re-election. Steve qualifies for the
position of Director as outlined in the Credit Union Act, Sections 91 and 92 and has no conflict
of interest to declare as per the Credit Union Act, Section 146 (1). Steve Ridout has confirmed
his intent to stand. As we have one qualified nominee for one vacancy and there are no further
candidates, Steve Ridout was declared elected by acclamation for a three year term.
6
RECOGNITION AWARDS
Suzanne Chaddock presented Service Awards to Iris Bilokrely (absent) for 25 years of service.
Also recognized were Tanya Verkerk and Jennifer Collins for 10 years’, and Danita Hellingman
and Shelley Jong for 5 years’ service.
A special acknowledgement was extended to Donna Trebble who is retiring. She was presented
with a gift in appreciation for her dedication to the OPPA Credit Union for the past 36 years.
An open discussion period was held, followed by a draw for door prizes.
ADJOURNMENT
MOTION
Moved by Debbie Sokoloskie, seconded by Jill Bennett, that the meeting adjourn
at 7:20 p.m.
CARRIED
Steve Ridout, Board Chair
Karen Zammit, Corporate Secretary
7
Report of the Board of Directors
On behalf of your Board of Directors, it is my privilege to present the 2015 Annual Report of the
OPPA Credit Union.
The Board of Director’s role is to establish our strategic direction, create and maintain a
framework of governance policies, oversee management and ensure compliance with all
regulatory and statutory requirements. The Board is ultimately responsible for ensuring that
the credit union is operated in a safe and prudent manner and for ensuring adherence to the
standards of sound business and financial practices outlined by our regulator, Deposit Insurance
Corporation of Ontario (DICO).
In 2015, the OPPA Credit Union focused on six goals in our business plan:
•
•
•
•
•
•
Service Delivery – To provide financial products/service through value added advice and
reliable technology solutions.
Financial Performance – To manage growth, liquidity, capital and interest rate risk to
meet the ongoing needs of our members and to meet regulatory requirements.
Market Presence – To enhance awareness within the OPP family of our unique value
added personal advice and service.
Human Resources – To ensure our workforce has the skills and tools that support our
growth and continue superior service delivery.
Governance – To ensure Board and Committees have the skills and tools to support
effective Governance.
Build Relationships and Partnerships – To pro-actively build relationships with both the
OPP and OPPA in order to enable us to present/demonstrate both our brand and our
service promise.
I wish to acknowledge the Board for their contributions and commitment, along with our
management team and staff for their dedication, hard work and courteous service delivery. I
would also like to thank you our Members for your confidence and support.
Steven B. Ridout
8
Report of the Chief Executive Officer
2015 was a challenging year but was still a successful operating year for the OPPA Credit Union. Interest
rates continue to be low and are projected to remain that way for some time. I am pleased to report
that our Balance Sheet assets grew by $12,426,733 or 7.37% and our loans grew by $10,813,928 or
7.08%. Our total assets under administration as at December 31, 2015 is $188,577,447.
The OPPA Credit Union continues to focus on strengthening our brand and enhancing the awareness
within the OPP family. This year to raise awareness we’ve made financial wellness presentations at OPP
General Headquarters to new recruits, OPPA Pre-Retirement Seminars, OPP Veterans’ AGM, OPP
Veterans’ Day, OPP Civilian Conference, OPP Wellness Day and Post-Recruit Family Day. We also
participated in the OPP family day events at GHQ and London. This year, we organized a bicycle rodeo at
both events and gave away 25 bicycles. For the third year in a row we also partnered with the OPPA to
recognize our OPP Veterans’ on June 6th at GHQ.
The OPPA Credit Union continues to be an early adopter of banking technology. In 2015, we introduced
Deposit Anywhere™ which is a new feature on your OPPA Credit Union mobile App. Deposit Anywhere™
allows members to quickly and securely deposit cheques using our banking App on their smartphone or
tablet. We also updated and redesigned the mobile App to enhance our members’ online banking
experience. Lastly, we introduced Interac® Online, this new payment method gives members the
option to pay for online purchases directly from their OPPA Credit Union Account.
As we understand the unique financial requirements of a recruit we have created a website specifically
to provide them with financial tips and information. The website also introduces the Financial Advisor
Team who are a great resource for recruits when they need financial advice they can trust. The advisors
will provide recruits with advice that is customized, personal and specific to their needs, goals and
situation.
Members continue to have a high level of satisfaction with the products, services and financial advice
they receive and it is reflected in our continued success.
During 2016, we will focus on educating members about financial wellness and the importance of
planning and implementing savings and investment goals and strategies.
Special thanks to our staff, management team and Board of Directors for their efforts and commitment
over the past year. I would also to thank our members for their continued confidence, loyalty, feedback
and support of the OPPA Credit Union.
Bryan Neely
Chief Executive Officer
9
Report of the Senior Manager, Credit and Risk
I am pleased to report in 2015 we achieved a considerable increase in growth over the
previous year in our lending portfolio. The portfolio grew $10,813,928 compared to
$5,596,852 in 2014 or 7.08% vs 3.66%. Our Financial Advisor Teams are working hard to build
long-term relationships with our members and as a result significant progress was made
towards our goals and objectives.
The OPPA Credit Union continues to provide financial assistance to OPP recruits for their
Ontario Police College tuition. Also, we had many members take advantage of our new vehicle
loan rate of 4.99% in 2015. We continue to provide our members with competitive lending
products and rates to meet their needs.
The statistics outlined below represent the number of loans for 2015 with 2014 comparison
figures.
Loan Type
Personal Loans
Recruit Loans
Mortgages
Commercial Mortgages
Bridge Loans
MeritLine/Lines of Credit
Totals
Number of Loans
2015
2014
146
139
105
99
169
147
7
1
26
31
146
130
599
547
Loan Value
2015
$ 3,175,813.47
1,222,208.57
38,446,673.23
774,114.73
5,395,750.06
4,806,565.00
$53,821,125.06
2014
$ 2,713,413.97
821,082.00
34,480,879.54
260,000.00
6,342,024.75
5,174,046.23
$49,791,446.49
Number of loans declined – 46
Delinquent loans over 90 days at December 31, 2015 - Nil
I would like to thank the Financial Advisors, Advisor Support Representatives and Member
Service Assistants for providing our members with outstanding service during 2015. Our staff
will continue to build relationships with their members and provide them with advice on their
everyday financial needs as well as long-term financial goals during 2016.
Karen Zammit
Senior Manager, Credit and Risk
10
Audit Committee Report
Each year, the OPPA Credit Union establishes an Audit Committee composed of members appointed
by the Board. All members of the Audit Committee are active Directors of the Credit Union. The
Chief Executive Officer and Board Chair are ex-officio members of this Committee.
The role of the Audit Committee is to review financial information and reporting processes and their
associated risks and controls.
The Committee held 5 meetings during 2015 to fulfil our oversight responsibilities for:
• Integrity of the financial statements
• The external audit function
• The internal audit function
• Adequacy and effectiveness of internal controls
• Monitoring and oversight of the Enterprise Risk Management program
• Compliance with legal and regulatory requirements
The Committee also met with the external auditors to review and discuss the audit plan. The
audited financial statements for the fiscal year ended December 31, 2015 have been reviewed and
the Committee recommends their acceptance and approval by the Board of Directors. The Audit
Committee also recommends that Jones & O’Connell perform the annual external audit for 2016.
In 2015 the Committee worked closely with Senior Management and the internal auditors to review
the internal audit plan and implement any necessary changes to our policies as a result of the
internal auditors’ reports.
The Audit Committee continues to receive full co-operation and support from management, which
enables us to enhance the overall control and risk management structure of our Credit Union.
We confirm that all significant recommendations made by the Audit Committee have been
implemented and that the Committee is conducting its affairs in accordance with the Act,
Regulations and Credit Union by-laws. There are no matters which the Committee believes should
be reported to the members or which are required to be disclosed pursuant to the Act or the
Regulations.
Scott Couse
Audit Committee Chair
Committee Members:
Scott Couse, Chair
Suzanne Chaddock
Matt Lewandowski
11
Five Year Operating Highlights
Voting Members
Staff
Total new memberships in 2015 were 312. We are
conducting an ongoing comprehensive membership
review to close inactive memberships. Not included
in the annual total are new members under the age
of 18.
Net Profit
Assets (including Assets Under Administration)
Printed copies of complete financial statements, along with accompanying notes and all
required disclosures are available on request.
Call 1-800-461-4288 or [email protected]
12
Board of Directors
2015-2016
Front Row (left to right): Scott Couse, Steve Ridout, Fred Bertucca
Back row (left to right): John Tod, Tanya Hodgin, Matthew Lewandowski, Suzanne Chaddock
Board Member
Date
Elected
Term
Expires
Steven Ridout, Chair
Fred Bertucca, Vice-Chair
Scott Couse, Audit Chair
Suzanne Chaddock, Director
Tanya Hodgin, Director
Matthew Lewandowski, Director
John Tod, Director
2006
2008
2001
2013
2014
2013
2014
2018
2017
2016*
2016*
2017
2016*
2017
* Term expires at 2016 Annual Meeting
In Memoriam
Our deepest sympathy is extended to the families of the members of the OPPA
Credit Union Limited who passed away during 2015.
Steve Ridout, Board Chair
13
Management and Staff
(at December 31, 2015)
CHIEF EXECUTIVE OFFICER
Bryan Neely
CHIEF OPERATING OFFICER
Andrew Shannon
MANAGEMENT
Karen Zammit - Senior Manager, Credit and Risk
Debbie Sokoloskie – Senior Manager, Business Development
Shelagh Pepper – Senior Manager, Member Services & Growth
Laurie Dennis – Manager, Member Service Administration
SUPERVISOR, BANKING SERVICES - Shelley Jong
FINANCIAL ADVISORS
Shannon Antonio
Jennifer Collins
Dale Gamble
Victoria Simpson
Casey Thompson
ADVISOR SUPPORT REPRESENTATIVES
Jolene Hollmann
Tammy LaloMalec
Lorraine McCluskey
Nancy Noel
Rosanne Wyer
SENIOR MEMBER SERVICE ASSISTANT - Jill Bennett
MEMBER SERVICE ASSISTANTS
Bettyann McKee
Carla Kruger
MEMBER SERVICE REPRESENTATIVES
Christa Ball*
Christine Belmontes*
Laura Button**
Bonnie Elliott
Danita Hellingman
ACCOUNTING ANALYST - Anita Plewes
CO-ORDINATOR, ACCOUNTING AND BANKING SYSTEM - Iris Bilokrely
ACCOUNTING ADMINISTRATOR - Sarah Simmons
CO-ORDINATOR, AUDIT & COMPLIANCE - Michele Cobby
14
* Part-time
**Maternity Leave
Staff Service Awards
Each year presentations are made to staff recognizing significant milestones in their career with
OPPA Credit Union. We are pleased to present the following at the 2016 Annual General
Meeting:
5 Years
Shannon Antonio – Financial Advisor
Bonnie Elliott – Member Service Representative
10 Years
Andrew Shannon - Chief Operating Officer
15 Years
Tammy LaloMalec - Advisor Support Representative
Congratulations!
15
Management’s Responsibility for
Financial Reporting
The accompanying summarized financial statements of OPPA Credit Union Limited and all the
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 International
Financial Reporting Standards. 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. OPPA Credit Union maintains systems of
internal accounting and administrative controls of high quality, consistent with reasonable cost.
Such systems are designed to provide reasonable assurance that the financial information is
relevant, reliable and accurate and that the Credit Union’s assets are appropriately accounted
for and adequately safeguarded.
The Board of Directors is responsible for ensuring that Management fulfils 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.
The Audit Committee is appointed by the Board. The Committee meets periodically with
Management and the external auditors to discuss internal controls over the financial reporting
process, auditing matters and financial reporting issues, to satisfy itself that each party is
properly discharging its responsibilities and to review the annual report, 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 owners.
The financial statements have been audited by Jones & O’Connell LLP, the external auditors, in
accordance with Canadian generally accepted auditing standards on behalf of the owners. Jones
& O’Connell LLP has full and free access to the Audit Committee.
Bryan Neely
Chief Executive Officer
Andrew Shannon
Chief Operating Officer
16
Independent Auditor's Report
To the Members of Ontario Provincial Police Association Credit Union Limited
The accompanying summarized financial statements, which include the balance sheet and statements of changes
in members' equity, operations and comprehensive income, are derived from the audited financial statements of
Ontario Provincial Police Association Credit Union Limited for the year ended December 31, 2015. We
expressed an unmodified opinion on those financial statements in our report dated February 22, 2016.
These summarized financial statements do not contain all the disclosures required by International Financial
Reporting Standards. Reading the summarized financial statements is not a substitute for reading the audited
financial statements of Ontario Provincial Police Association Credit Union Limited.
Management’s Responsibility for the Summarized Financial Statements
Management is responsible for the preparation of the summarized financial statements in accordance with criteria
that management has determined will represent a fair summary of the audited financial statements.
Auditor’s Responsibility
Our responsibility is to express an opinion on the summarized financial statements based on procedures, which
were conducted in accordance with Canadian Auditing Standards (CAS) 810, "Engagement to Report on Summary
Financial Statements".
Opinion
In our opinion, the summarized financial statements derived from the audited financial statements of Ontario
Provincial Police Association Credit Union Limited for the year ended December 31, 2015 are a fair summary of
those financial statements on the basis of criteria that management has determined will represent a fair summary of
the audited financial statements.
Readers are cautioned that these summarized financial statements may not be appropriate for their purposes. For
more information on the entity's financial position, financial performance and cash flows, reference should be made
to the related audited financial statements that are available from management upon request.
Jones & O'Connell LLP
Chartered Professional Accountants
Licensed Public Accountants
February 22, 2016
St. Catharines, Ontario
Ontario Provincial Police Association Credit Union Limited
Statement of Changes in Members' Equity
Accumulated Other
Comprehensive
Income
Undivided earnings
Balance, December 31, 2013
$
Comprehensive income
Balance, December 31, 2014
Comprehensive income
Balance, December 31, 2015
$
7,873,429
$
164,885
Members' Equity
$
8,038,314
407,298
19,967
427,265
8,280,727
184,852
8,465,579
339,958
15,448
355,406
8,620,685
$
200,300
$
8,820,985
Ontario Provincial Police Association Credit Union Limited
Statement of Operations
For the year ended December 31
Operating Revenue
Interest on loans
Investment income
Swap and forward agreements
2015
$ 5,756,227
164,400
24,596
Interest Expense
Interest on members' deposits
Interest on borrowings
Financial Margin
Other Operating Items
Provision on loans to members
Other income
2014
$ 5,653,059
162,445
(36,871)
5,945,223
5,778,633
1,340,464
1,012,606
1,508,204
846,417
2,353,070
2,354,621
3,592,153
3,424,012
(22,771)
363,044
(22,773)
403,155
Operating Margin
3,932,426
3,804,394
Operating Expenses
Administration
Advertising and communication
Computer, office and other equipment
Member security costs
Occupancy costs
Other miscellaneous
Salaries and benefits
231,037
210,919
242,648
156,027
116,575
494,279
2,078,015
212,675
214,342
233,208
176,259
124,932
438,467
1,929,933
3,529,500
3,329,816
Income Before Income Tax (Expense) Recovery
402,926
474,578
Income Tax (Expense) Recovery
Current
Deferred
(62,968)
-
(92,040)
24,760
Net Income for the Year
$
339,958
$
407,298
Ontario Provincial Police Association Credit Union Limited
Statement of Comprehensive Income
For the year ended December 31
Net Income for the Year
2015
$
339,958
2014
$
407,298
Other Comprehensive Income
Unrealized gain on investment classified as available for sale
18,283
23,630
Related current income tax expense
(2,835)
(3,663)
15,448
19,967
Comprehensive Income for the Year
$
355,406
$
427,265
Ontario Provincial Police Association Credit Union Limited
Notes to Financial Statements
December 31, 2015
1.
Basis of Presentation
These financial statements are a summarized version of the audited financial statements for
the year ended December 31, 2015, which have been approved for issue by the Board of
Directors on February 22, 2016. A copy of the audited financial statements is available upon
request from management of the credit union.
Management and the board of the credit union have determined that presentation of the
credit union's balance sheet, statement of changes in members' equity, operations and
comprehensive income in these summarized financial statements provides sufficient
information to allow members to assess the financial position and results of operation of the
credit union for the year ended December 31, 2015.
Contact Us
123 Ferris Lane
Barrie ON L4M 2Y1
Telephone and Fax
Toll Free
1-800-461-4288
Local Telephone
(705) 726-5656
Fax
(705) 726-1449
Website
www.oppacu.com
Financial Advisor Teams
Our Financial Advisor Teams, (Financial Advisors and Advisor Support Representatives) are assigned
to a group of members, depending on the first letter of your last name. To reach your Financial
Advisor Team by phone, call our main telephone number and enter the extension as noted below.
Surname Alpha
FINANCIAL ADVISOR TEAMS
Financial Advisor
Advisor Support Rep
Ext.
A,C,I,J,K,N,O
Dale Gamble
Lorraine McCluskey
2231
B,D,T
Shannon Antonio
Jolene Hollmann
2223
E,F,G,H
Jennifer Collins
Nancy Noel
2224
L, M, W
Casey Thompson
Tammy LaloMalec
2240
P,Q,R,S,U,V,X,Y,Z
Victoria Simpson
Rosanne Wyer
2222
23