Annual Report 2010 - Advance Savings Credit Union

Advance Savings Credit Union
Annual Report 2010
ACCOUNTABILIITY
TY
P
OUR MISSION
We are a progressive, owner-driven provider of quality
financial services to the citizens of our communities.
Table of Contents
Our Staff ...................................................................................................................3
CEO’s Report ............................................................................................................4
Board of Directors’ Report ........................................................................................6
Audit Committee Report ...........................................................................................8
Market & Credit Risk Report .....................................................................................9
Community Involvement ........................................................................................10
Celebrations & Awards ...........................................................................................13
Advance Savings Annual General Meeting Minutes - April 21, 2009........................14
Recommendations of the Board of Directors ...........................................................22
Management’s Responsibility for Financial Statements ............................................23
Advance Savings Audited Financial Statements as of December 31, 2010 ...............24
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Advance Saving Credit Union Annual Report 2010
Our Staff
Administration & Corporate Office
Port Elgin Branch
Rexton Branch
George Greenwood, CEO
Bonnie Steeves, HR Manager
Cathy Leger, Finance Manager
Trish Carter, Operations Manager
Derek Ellard, Branch Services Manager
Jeff Melvin, IT Manager
Jenn Marr, Marketing & Promotions
Coordinator
Andrea McEachreon, Accounting Officer
Cathy Allaby, Administration Clerk
Lisa Bourque, Administration Clerk
Tina LeBlanc, Compliance Officer
Darcy LeBlanc, Administration Clerk
Kelly McCafferty, Administration Clerk
Judy Scott, Branch Manager
Maureen Allen, CSR/Lender
Gail Chapman, CSR
Judy Morrison, CSR
Donna Jones, Branch Manager
Pauline Whalen, Loans Officer
Bernice Arsenault, CSR/Branch Administration
Faye Arsenault, CSR
Tanya Hannay, CSRS
Darlene Mourant, CSR
Jan Parkhill, CSR
St. George Blvd. Branch
Salisbury Branch
Christa Sceles, Branch Manager
Catherine Milton, Senior CSR
Mary Lou Warren-Lewis, CSR
Brandie Retson, CSR
Maxine Rice, Branch Manager
Nancy Rankine, Loans Officer
Tracy Henderson, Senior CSR
Shelley Hopper, CSR
Kathleen Lewis, CSR
Petitcodiac Branch
Maxine Rice, Branch Manager
Kathryn McQuinn, CSRS
Ruth Steeves, Loans Officer
June Colpitts, CSR
Missy Robinson, CSR
Esther Taylor, CSR
Donna Thompson-Dalling, CSR
Tilly Constantine, CSR
Riverview Branch
Christa Sceles, Branch Manager
Arlene Steeves, CSR/Lender
Judy Lounsbury, CSR
Trina Vautour, CSR
* CSR - Customer Service Representative
CSRS - Customer Service Rep. Supervisor
Weldon Street Branch
Cathy Darland, Branch Manager
Debi Little, Loans Officer
Ann Walters, Loans Officer
Johanne Robertson, Financial Services
Officer
Shelley MacKinnon, CSR/Branch Administration
Irna Geddes, CSR
Curtis Hebert, CSR
Shelley Farrell, CSR
Jessica O’Leary, CSR
SueAnn Magee, CSR
Commercial Services
Don Bourque, Manager Commercial
Lending
Mike Crofts, Commercial Account Manager
Joyce Brown, Commercial Credit Assistant
Shirley Richard, Commercial Credit Assistant
PEOPLE
Simply Said - People First
Advance Saving Credit Union Annual Report 2010
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CEO’s Report
2
010. What more can be said other than it was a terrible year financially for Advance Savings
Credit Union, and one we won’t soon forget. As one of the newest members of the Advance
Savings team, I would like to focus on some of the positive things that happened in 2010 rather
than dwell on the negatives.
Your Credit Union was recognized by the Greater Moncton Chamber of Commerce with the presentation of an Excellence Award for Community Service. We beat out the Atlantic Lottery Corporation and
even the IAAF World Junior Championship committee that recorded over 10,000 volunteers. Employees from every level of the organization contributed their own time to various community initiatives
and organizations near and dear to them. We expect 2011 to be another great year for Advance Savings and its community involvement. Branches and head office staff are already actively raising money
and volunteering.
In the last quarter of 2010, we offered a number of promotional campaigns targeted at increasing
our loans portfolio and profitability. We are very happy to report tremendous success from these
campaigns and were able to reverse the negative trend that we had experienced during the first three
quarters of the year. Our owners have told us what they need and want and we have responded accordingly. We will continue to seek feedback to improve our service and product offerings.
Advance Savings Credit Union boasts one of the highest employee retention rates in the NB Credit
Union system. We’ve worked hard to make this a great place to work, build a career, and feel like you
are part of something. The employees experienced a significant amount of uncertainty over the past
year and for that I would like to apologize and say thank you for your hard work and dedication. Additionally, the owners have faced a tremendous amount of uncertainty and doubt about the future
of our Credit Union. To all of you, I apologize and offer you my word that your Credit Union will be
returned to profitability and prosperity. We have a plan, and the board, management and employees
are committed to getting the job done.
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Advance Saving Credit Union Annual Report 2010
We are all looking forward to 2011 with excitement and anticipation of much better things to come. If the
end of 2010 was any indication of the type of year we can expect in 2011, we are in for a very good year.
Good is a relative term, but in the end that means making a profit, growing our loans and assets, and focusing on our core business. We have everything we need to be successful. Our focus over the past number of
years has been on mergers, but now it’s time to focus on the business we have.
As the CEO of your Credit Union I encourage you to share your feedback with me. We are looking for all
feedback, not just the good. How can we improve unless we hear from you, the owners, as to what you need
and want from your Credit Union? Help us get better and make your Credit Union everything it can be. I
look forward to serving you all in 2011 and beyond.
Sincerely,
George Greenwood,
Chief Executive Officer
“...we are looking forward to 2011 with
excitement and anticipation...”
Advance Saving Credit Union Annual Report 2010 |
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Board of Directors’ Report
2
010 will likely go down as a year of change, transition and challenge.
Change; in September of 2010, we hired a new CEO, George Greenwood. George brings years
of credit union experience to Advance Savings, most recently as the CEO of Beaubear Credit Union in
Miramichi and before that, George held numerous management positions with Canada’s largest credit
union, Vancity. Please join your board of directors in welcoming George to the Credit Union.
Transition; as the formal merger between PSE Credit Union and Advance Savings Credit union was
made official on January 1st, 2010, our two organizations together made the credit union system as a
whole stronger. We managed to bring the best of both credit unions together.
Challenge; to say that 2010 was challenging may be under stating things. Recording the single largest loss in the history of the Credit Union is not something we are proud of. We are not sugar coating
the seriousness of the situation or down playing it at all. The loss was completely unnecessary and very
unfortunate, but we must move beyond it, and look to the future. Board and management have a plan
to return your Credit Union to profitability and ensure your funds are safe guarded. Management is
working with our lawyers to recoup any funds where possible. We have learned from our mistakes and
have controls in place to prevent future losses like we encountered in 2010. The Credit Union’s focus
going forward is on growth and profitability through sales and service, not mergers. We need to return
to our roots of doing what we do best, that is lending and deposit services.
Through all of the challenges in 2010, the one constant has been the employees as they remained
steadfast and resolute in their determination to rise above it all. In the face of uncertainty and change,
the employees never waivered on their commitment to providing the best service, to you the owners.
We would like to publicly thank the employees for their patience and dedication through these very
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Advance Saving Credit Union Annual Report 2010
ACCOUNTABILITY
We choose to be accountable
for our actions.
trying times. Like the owners, we commit to you that we will move forward as a stronger credit union and
learn from this experience.
Advance Savings was not the only organization experiencing change in 2010. Credit Union Central of New
Brunswick has been transitioning toward their merger with CUCNS and CUCPEI. December 31st, was the last
day of business for our Central and officially on January 1st Atlantic Central was opened for business. It’s been
a few years in the making, but now it’s a reality and we are already realizing benefits from the merger such as
higher returns and access to a broader range of expertise. We look forward to working with the management
and staff of the new Central in what we believe will be a beneficial partnership.
We entered 2011 cautiously optimistic. Changes continue to be made within our branch structure to ensure
we are in the right locations, providing the right services and are generating a profit. It’s time to realize the
efficiencies that come with mergers and take advantage of our size and reach. Our focus will remain on you,
the owner, and we encourage you to hold us to that task. We do ask for your patience as we make the necessary changes to return our Credit Union to profitability and a bright future.
I would like to thank my fellow board members for their continued support, their dedication, and their hard
work.
Sincerely,
Board of Directors
Gerald A. W. Gogan
Chair
Al Belliveau
Vice Chair
Stephen Crawford
Nancy G. Cail
Dave E. MacQuarrie
David Hanson
Michael Morey
Dean E. Martin
David Greenwood
Gerald (Jerry) Gogan
Chairman
On behalf of the Board of Directors
“...we will move forward as a
stronger credit union...”
Advance Saving Credit Union Annual Report 2010 |
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Audit Committee Report
T
he Audit Committee’s principle role is to make certain that due diligence is directed toward
ensuring that an effective risk management and control framework has been implemented by
management. This framework is to provide reasonable assurance that the financial, operational
and regulatory objectives of the Credit Union are achieved and that governance responsibilities of the
board and management are met. The committee undertakes responsibility for the oversight of the
design and implementation of internal controls to support the risk management, the integrity of financial
reporting, and compliance with regulatory matters.
T committee received the financial statements that you see before you from our external auditors
The
(AC Stevenson & Partners PC Inc.). The auditors were questioned, in depth, on a number of items and
questions asked were answered to our satisfaction. An “in camera” session was held with the auditors,
without management being present. The financial statements and the accompanying notes to the
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financial statements were recommended to the board for approval by the committee. Board approval
was given.
w
T Audit Committee has fulfilled its mandate and we look forward to the coming year. Both audits
The
(RMA and AC Stevenson & Partners PC Inc.) that have been conducted this year brought very little of a
material content to the committee’s attention and we are satisfied that internal policies and procedures
are effective and working well. The priority for 2011 will be to continue to work with management, with
profitability being a key issue.
Respectfully submitted,
Al Belliveau,
Chair
On behalf of the Committee
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Advance Saving Credit Union Annual Report 2010
INTEGRITY
Integrity will guide our
business practices and our
relationships with our
employees, our owners and
our communities.
Market & Credit Risk Report
Y
our Credit Union experienced an overall decline in our loan portfolio in 2010. The portfolio
dropped by $4,269,762 or a change of -4.24%. However, the last quarter of 2010 we experienced a positive trend in loan growth due to an increase in marketing and promotions. In
2010, we approved 724 loan and mortgage requests totaling $23,280,350 with $16,673,143 being new business. There were also 177 lines of credit and overdrafts approved with credit limits of
$2,817,351. Additionally, we booked $4,897,720 in mortgages with League Savings and Mortgage.
Delinquency continues to be closely managed and the favourable results year after year indicates
that our credit granting policy is well managed. Overall delinquency as at December 31st, 2010
was 1.024% and over 90 days delinquency was 0.045%. We will continue to monitor our portfolio
closely to ensure we are mitigating risks and protecting your deposits. Allowance for impaired loans
was $252,249 at December 31st, 2010.
The strategic direction of the credit department going into 2011 will be more aggressive than over
the past two years. Loan growth and profitability has eluded the credit union which has contributed
to our poor performance. We need loans in order to generate a profit and grow. For many years we
struggled to find the deposits necessary to fund rapid loan growth, but that is no longer an issue.
We have the money to lend and the staff to handle the loan volumes. We are looking forward to a
stellar year of both loan volumes and growth.
Respectfully submitted,
Derek Ellard,
Branch Services Manager
Advance Saving Credit Union Annual Report 2010
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Community Involvement
In 2010, Advance Savings Credit
Union entered the Dragon Boat
Races for the first time. The team,
called Dragon Defeat, raised over
$3,500, which was divided up
between the Lions Sick Children’s
Fund and our Loving Spoonfuls
Breakfast Program.
Our Petitcodiac branch supports an annual local skating
program.
Our Port Elgin branch
supported the Port Elgin
Regional Health Centre with
a donation of $700 during
the community opening
celebrations bringing their
total to $1,157 in 2010.
When Haiti was hit with a devastating earthquake in January 2010, Advance Savings Credit Union joined
forces with other local organizations to plan Mission Possible: Haiti. The campaign included the sale of tshirts and a benefit concert. Over $50,000 was raised for the cause.
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Advance Saving Credit Union Annual Report 2010
ASCU Received
an Excellence
Award for
Community
Service!
Advance
Savings
Credit
Union was honoured to win
the Greater Moncton Chamber of Commerce’s Community Service Excellence
Award. We were named a finalist with two other amazing
organizations, the IAAF and
Atlantic Lottery Corporation.
Our success is directly related
to the success of the communities where our owners
live and work. That’s why we
enthusiastically support individuals, organizations, and
charities in our communities
in so many ways.
COMMUNITY
2010 Quick Facts
We accept our responsibility
for the economic social well
being of our communities.
Sponsorships
Over $35,000 donated to
charities and organizations
in our communities.
Over $112,000 fundraised for charities.
$7,000 in bursaries
awarded to seven deserving students.
- Ali Marr
- Nick Lane McEachern
- Katy Allen
- Elyssa Lewis
- Kevin Bos
- Shelby Warman
- Eryn Weldon
Our Rexon branch hosted Norbert
Georget who travels to high schools
across the country with a powerful
message of saying no to drugs and
alcohol.
Our Riverview branch responded
when their local Boys & Girls Club was
robbed during the summer by having
a fundraiser BBQ. They raised $1,030.
5 students sent to Atlantic
Cooperative Youth Leadership camps.
Volunteering
4,536 recorded volunteer
hours in 2010 for a total
of 14,422 since January of
2007.
Average of 105 volunteer
hours per employee that
volunteered in 2010.
66 different charities and
organizations supported
through volunteering.
We raised over $15,000 with the
Mission Possible: Help Heat Harvest
House campaign, bringing the two
year total to over $27,000!
Moncton area Credit
Unions sent local
radio personalities
80 feet in the air to
help raise money for
our annual Bringing Down Hunger
campaign in support
of the Food Depot
Alimentaire’s Buy A
Shelf capital campaign. In 2010,
we raised $7,000, bringing the
total raised to over $12,500.
The second annual Advance Savings
Casino Night at Peoples Park Tower
was a huge success with approximately 75 people in attendance!
Advance Saving Credit Union Annual Report 2010
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Community Involvement
Area Credit Unions supported the annual
Sue Stultz Turkey Drive by donating 25
turkeys.
As part of our annual Gift of Christmas campaign, Moncton area Credit Unions along
with the C103/XL96.9 had a Stuff-A-Bus
event that brought in over 2,000 toys. Overall, we brought in a total of $6,690 in cash
and gift certificates, 2,622 toys, 429 items of
warm clothing and 288 food items.
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Advance Saving Credit Union Annual Report 2010
As part of the Gift of Christmas campaign,
the Rexton branch held their annual Santa’s
Helpers of Kent supper. Overall, they raised
$3,583 for their community.
Honouring a five year commitment, we
presented a $1,000 cheque to the Jordan
LifeCare Centre.
Several Advance Savings Credit Union staff members and their families participated in the Terry Fox Run across the Confederation Bridge. This is Ann
Walters (left), Loans Officer at the Weldon Street branch with her family.
The group raised over $2,000.
35 Years
of Service
Celebrations & Awards
The key to our Success: Our Valuable Employees
Employee talent, loyalty, and dedication are the foundation upon which every great company is
built. Our employees provide invaluable contributions to the success of our owners and to Advance
Savings’ growth as a leader in the financial services industry. Each year, Advance Savings recognizes
employee accomplishments and contributions by celebrating Credit Union service milestones from
the past year.
20 Years of Service
Donna Jones
Johanne Robertson
Maxine Rice
15 Years of Service
Advance
Savings
Credit
Union was pleased to recognize Bonnie Steeves, Human Resources Manager for
35 years of dedicated service
and outstanding accomplishments. To commemorate her
special day, the staff held an
open house at the Corporate
Office where friends, family,
co-workers and colleagues
stopped by to offer their congratulations.
Bernice Arsenault
Accreditations
Our staff are encouraged to
futher their education through
CUSOURCE, the Credit Union
knowledge network; a gateway
to the best of Credit Union
learning and innovative knowledge sharing. In 2010, two of
our employees, Shelley MacKinnon and Tracy Henderson,
received their Member Service
Representative Accreditation.
Congratulations to you both!
Tracy H
T
Henderson
d
10 Years of Service
Cathy Allaby
Cathy Darland
Christina Ellard
EXCELLENCE
We strive for excellence in
all we do through innovation,
education and continuous
improvement.
Shelley MacKinnon
Advance Saving Credit Union Annual Report 2010 |
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Minutes | April 21, 2009
ADVANCE SAVINGS CREDIT UNION LIMITED
1ST ANNUAL GENERAL MEETING – April 21, 2009
MONCTON COLISEUM, MONCTON, NB
1.
CALL TO ORDER:
The 1st Annual Meeting of Advance Savings Credit Union Limited was held at the Moncton Coliseum, Moncton, on Tuesday, April 21, 2009.
The meeting was called to order at 7:05 p.m. by Chair, Greg Johnson.
2.
DETERMINATION OF A QUORUM:
The first order of business was the confirmation of a quorum. The Chair, Greg Johnson noted that as per Article 3, Section 8, of Advance
Savings Credit Union Limited Bylaws, “A number of members equal to the number of Directors plus five, constitutes a quorum”. He
declared a forum with 86 registered customer-owners and 7 guests in attendance.
The Chair, Greg Johnson, requested that all persons making and seconding motions to please identify themselves for the accurate
recording of the motions.
3.
APPROVAL OF AGENDA:
It was moved by Don Moroz and seconded by Sterling Goddard “THAT the agenda be approved as circulated.
MOTION CARRIED
4.
GREETINGS FROM THE CHAIR
Greg Johnson introduced himself as the Chair of the Board and also the Chair of the meeting. The Chair welcomed all the customerowners and guests to the 1st Annual General Meeting of Advance Savings Credit Union Limited.
The Chair introduced guests: Philip Haylock and Andrew Boudreau from Stephenson & Partners LLP; Gerard Giovannetti from League
Savings and Mortgage; Rob Rodgers from Manulife Securities; Gerard Adams, CEO of CUCNB; and Tim MacDonald from Grew
MacDonald Bateman.
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Advance Saving Credit Union Annual Report 2010
At this time the Chair introduced the front table - Don Roper – CEO and President, Melanie Rickard – Recording Secretary, Tim MacDonald
- Parliamentarian, Bob Pickett, Al Belliveau, Brian Johnson, Gary Steeves, Dean Martin, Dave MacQuarrie, Nancy Cail, Vivian Beck & Scott
Beck.
Absent: Gerry Gogan and Murray Bunnett.
The Chair then mentioned that when the former ASCU and the former Rexton amalgamated a new Board was formed which was made up
of 9 of the 12 ASCU Board members and 3 of the 9 Rexton Board members. He thanked the three from ASCU Marielle Michaud, Sterling
Goddard, Tom Cormier and the 6 from Rexton; Dave Hanson, Helen Warren, Winnie Wilson, Andre Albert, Dana Ferguson and Jerry Cook
for their participation and dedication to the Credit Union Board and for voluntarily stepping down to allow the creation of the Board of the
new Advance Savings Credit Union.
The Chair then announced that he would like to have a moment of silence in recognition of our deceased members and for the fallen
soldiers and their families.
5.
STAFF RECOGNITION AWARDS
Don Roper, CEO, presented awards to the following staff members who had reached 10, 15 and 20 years’ service:
Recipients of the award for the 10 years of service was Donna Fenton, Customer Service Representative in the Riverview Branch.
Recipient of the award for the 15 years of service was Esther Taylor, Customer Service Representative in the Petitcodiac Branch.
Recipients of the award for 20 years’ service were Judy Strugnell, Loans officer/Customer Service Supervisor from the St. George Boulevard
Branch and Andrea McEachreon, Accounting Officer from the Administration Office.
Jeff Melvin was recognized as the Volunteer of the Year Award for the 600+ hours he has volunteered in the community.
Congratulations to each and every one of these dedicated staff members for all their contributions to the success of Advance Savings Credit
Union.
6.
PRESENTATION OF COMMUNITY CHAMPION AWARD
Cathy Darland, Branch Manager for the St. George Boulevard Branch presented the Community Champion Award to John Leadbetter
in recognition of all the generous contributions that John has made and continues to make in our community. John has over 500 hours
Advance Saving Credit Union Annual Report 2010 |
15
volunteering at the Moncton Hospital, let alone his other travels to various hospitals, nursing homes, parades, church events and many other
charity events. A donation was made on John’s behalf to the Friends of the Moncton Hospital and then sub-categorized to JJ the Happy
Wanderer fund.
7.
GREETINGS FROM CUCNB
Gerard Adams, CEO of Credit Union Central of New Brunswick, thanked the Credit Union for giving him the opportunity to attend the meeting
and to help celebrate another successful year with servicing our owners.
Gerard mentioned that there are 17 Credit Unions in New Brunswick representing over 78,000 owners and in Canada there are 440 Credit
unions representing just over 5 million owners. Gerard congratulated ASCU on such a successful merger.
Gerald spoke on the proposal of an amalgamation of the Credit Union Centrals of New Brunswick, Nova Scotia, PEI, Labrador and NFLD.
This amalgamation will provide the Credit Unions with specialists that will be able to better service them. AT the same time, the Central has
developed, in conjunction with our system partner CUMIS, to finalize a plan that will able us to offer home and automobile insurance to better
service our members.
8.
ADVANCE SAVINGS CREDIT UNION 2ND AGM MEETING MINUTES APRIL 22, 2008
It was moved by Gary Steeves and seconded by Catherine Milton “THAT the Minutes of the 2nd AGM meeting held on April 22, 2008 be
approved as presented”.
MOTION CARRIED
9.
ADVANCE SAVINGS CREDIT UNION SPECIAL MEMBERSHIP MEETING MINUTES NOVEMBER 19, 2008
It was moved by Janice Rice and seconded by John Leadbetter “THAT the Minutes of the Special Membership meeting minutes held on
November 19, 2008 be approved as presented”.
MOTION CARRIED
10.
REXTON CREDIT UNION AGM MEETING MINUTES NOVEMBER 20, 2008
It was moved by Nancy Cail and seconded by Vivian Beck “THAT the minutes of the Rexton AGM Meeting Minutes held on November 20, 2008
be approved as presented”.
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Advance Saving Credit Union Annual Report 2010
11.
MOTION CARRIED
ADVANCE SAVINGS CREDIT UNION FINANCIAL STATEMENTS AS OF DECEMBER 31, 2008
The Chair, Greg Johnson, introduced Andrew Boudreau of Stevenson and Partners LLP, who presented the Financial Statements as of
December 31, 2008.
Andrew noted that these financial statements are the responsibility of the credit union’s management and it is Stevenson’s & Partners
responsibility to express an opinion on the financial statements based on their audit.
Andrew reviewed the statements and after reviewing them The Chair asked if there were any questions the owners would like to ask
regarding these statements of either himself, Andrew Boudreau or Don Roper. There were no questions submitted.
It was moved by Jennifer Marr and seconded by Don Bourque “THAT the Advance Savings Credit Union Financial Statements as of
December 31, 2008 be approved as presented.
MOTION CARRIED
12.
REXTON FINANCIAL STATEMENTS AS OF DECEMBER 31, 2008
The Chair explained that the auditors that prepared Rexton’s financial statements were unable to attend the AGM meeting but if there were
any questions he would answer them.
He noted that Rexton’s year end was September 31st 2008 but with the amalgamation it was necessary to prepare financials for the remaining
three months of 2008 before going into the amalgamation with Advance Savings Credit Union.
It was moved by Alberta Robertson and seconded by Phillip MacLeod “THAT the Rexton Financial Statements as of December 31, 2008 be
approved as presented”.
MOTION CARRIED
13.
BOARD OF DIRECTORS REPORT.
The Chair, Greg Johnson presented the Board of Director’s report.
The Chair reviewed his report and noted that going into the fiscal 2009, the Board remains optimistic even though they have lowered their
expectations due to the current economic circumstances as it may be more difficult to meet our modest goals. Our mission is still very clear,
in that our focus continues to be on providing our Owners with quality financial products and services, and to be visible and supportive within
Advance Saving Credit Union Annual Report 2010
| 17
all the communities we serve.
The Chair thanked his fellow Board members and ASCU staff for their continued support, their professionalism, and their hard work.
It was moved by Phil MacLeod and seconded by Gerard Adams “THAT the Board of Director’s Report be approved as presented.”
MOTION CARRIED
14.
AUDIT COMMITTEE REPORT
The Audit Committee Report was presented by the Chair of the Committee, Brian Johnson.
Brian mentioned that ASCU has had tremendous growth in assets over the past year (13%) which presents us with a good problem. A
requirement of the Credit Union Act is that we maintain a 5% level of equity. With the growth in assets, equity must also increase. This can
only be accomplished by profitability or Member Shares. There is a plan in place to maintain and increase this percentage but it will take time.
Brian offered to answer any questions.
Question – George Murphy asked what was the percentage of our shares as of the end of March.
Response – At the end of March 2009 we were at 4.86% and at the end of April 2009 we hope to be back up to 5%.
Brian thanked the Committee members for all their work.
It was moved by Joyce Brown and seconded by Sterling Goddard “THAT the Auditor’s Report be approved as presented”.
MOTION CARRIED
15.
MARKET & CREDIT RISK COMMITTEE REPORT
The Market & Credit Risk Committee Report was presented by the Chair of the Committee, Dean Martin and offered to answer any questions.
No questions were submitted to the Chair of the Credit Committee.
It was moved by George Murphy and seconded by Scott Beck “THAT the Market & Credit Risk Committee Report be approved as presented”.
MOTION CARRIED
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Advance Saving Credit Union Annual Report 2010
16.
FUTURE INITIATIVES COMMITTEE REPORT
Greg Johnson noted before Robert Pickett was called to present the report that they have been told that we are the only Credit Union in the
world, that he is aware of, that has this type of committee.
The Future Initiatives Report was presented by the Chair of the Committee, Robert Pickett and he offered to answer any questions.
No questions were submitted to the Chair of the Future Initiatives Committee.
Greg Johnson added that this committee was developed approximately three years ago and they meet at least quarterly. They discuss
different initiatives, growth, amalgamations and different ways to better our Credit Union.
It was moved by Don Bourque and seconded by Judy Strugnell “THAT the Future Initiatives Report be approved as presented”.
MOTION CARRIED
17.
GOVERNANCE COMMITTEE REPORT
The Chair of the Governance Committee, Gerry Gogan was unable to attend the meeting. Greg Johnson presented the report and asked if
there were any questions.
No questions were submitted.
It was moved by Jeff Melvin and seconded by Don Moroz “THAT the Governance Report be approved as submitted.
MOTION CARRIED
18.
CEO’S REPORT
President and Chief Executive Officer, Don Roper, presented a detailed Management and Discussion Analysis Report and offered to answer
any questions.
The CEO thanked everyone for attending and also thanked the staff and Board for all of their efforts and support.
It was also noted that one of our biggest events of the year would be the amalgamation of the Rexton Credit Union Limited and the “old”
Advance Savings Credit Union.
Advance Saving Credit Union Annual Report 2010
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It was moved by Vivian Beck and seconded by Cathy Darland “THAT the CEO’S Report be approved as submitted”.
MOTION CARRIED
19.
UNFINISHED BUSINESS
Nothing brought forward
20.
a)
NEW BUSINESS
Directors’ Recommendation of Appointment of Auditors for 2009.
It was moved by Brian Johnson and seconded by Cathy Leger “THAT the firm of Stevenson & Partners LLP be appointed as our auditors for
the 2009 fiscal year”.
MOTION CARRIED
b)
Directors’ Recommendation for Appointment of Representatives to Federation Meetings.
It was moved by Bonnie Steeves and seconded by Catherine Milton “THAT the Board of Directors of Advance Savings Credit Union Limited
be empowered to appoint the representatives to any general meeting of the Federation, or any regular or special meeting of the Federation”.
MOTION CARRIED
c)
Directors’ Recommendation for Board Members’ Compensation.
I t was moved by Sylvia Ashe and seconded by Andrea McEachreon “THAT the Board of Directors and Committee Members be
compensated in the amount of $30.00 per hour for attendance at Board and Committee meetings, the Executive Committee and the
Committee Chairs receive an additional $250.00 annually, and the Chair of the Board of Directors receive an additional $500 annually”.
MOTION CARRIED
Three members were contrary minded.
Philip MacLeod noted a few concerns he had with the Petitcodiac Branch renovations and the Chair addressed Philip’s concerns regarding
no wheel chair access and the ATM being outside the building.
George Murphy questioned why there were no nominations for new Board Members. The Chair, replied that it was part of the amalgamation
process and it was determined that the Board of Directors as of January 2009 would remain the same.
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Advance Saving Credit Union Annual Report 2010
Many door prizes were drawn for and distributed to the customer/owners by members of the staff.
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ADJOURNMENT
There being no further business, the Chair adjourned the meeting at 9:07
Respectfully submitted,
Robert Pickett,
Secretary
Greg Johnson,
Chair
Advance Saving Credit Union Annual Report 2010 |
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Recommendations of the
Board of Directors
Recommendation 1
Appointment of Auditors
It is the recommendation of the Board of Directors “that the firm of AC Stevenson & Partners PC Inc.
be appointed as our auditors for the 2011 fiscal year.”
Recommendation 2
Appointment of Representatives to Atlantic Central Meetings
It is recommended “that the Board of Directors of Advance Savings Credit Union Limited be empowered to appoint the representatives to any general meeting of the Atlantic Central, or any regular or
special meeting of the Atlantic Central.”
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Advance Saving Credit Union Annual Report 2010
Management’s Responsibility
for Financial Statements
M
anagement is responsible for the preparation, presentation, and consistency of financial
information and discussion contained in this Annual Report. The financial statements and
accompanying notes, prepared in accordance with generally accepted accounting principles, are considered by the board and management to be fairly presented. In preparing the financial
statements, management has exercised judgement in the selection of significant accounting policies
and the determination of reasonable estimates which are reflected therein.
Management has developed and maintains the necessary systems of internal controls to provide
reasonable assurance that transactions are authorized, assets safeguarded, and proper records maintained.
The Audit Committee of the Board of Directors meets periodically with the Credit Union’s management and external auditors to review matters relating to the quality of financial reporting and internal accounting controls and nature, extent and results of the audits. In addition, this committee
recommends the engagement of external auditors and reviews and reports on the Credit Union’s
financial statements to the Board of Directors.
The Board of Directors oversees management’s performance of its financial reporting responsibilities
and meets monthly to approve the Chief Executive Officer’s report containing the financial statements and other financial information. The Credit Union Risk Management Agency (RMA) conducts
periodic inspections of Advance Savings Credit Union Limited to ensure compliance with the Credit
Unions Act and Regulations.
Independent external auditors, appointed by the owners of the Credit Union, examine our financial
statements in accordance with generally accepted auditing standards and their report appears next.
The auditors have free and independent access to the Audit Committee and meets with the committee and with management to consider matters relating to financial statement presentation, internal
controls, and audit procedures.
Gerald (Jerry) Gogan,
Chair
George Greenwood,
Chief Executive Officer
Advance Saving Credit Union Annual Report 2010 |
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Credit Union System
The expanding influence and success of the Credit Union system is built upon a strong foundation. Credit Unions
continue to work together for the benefit of all owners. Whether building on shared strengths or developing new and
innovative services, a strong, vital Credit Union network ensures that owners will continue to benefit from this unique
relationship.
Credit Unions in Canada
419 Credit Unions in Canada
1,747 locations
5 million owners
$121.9 billion in assets
$109 billion in deposits
$99 billion in loans
25,000 employees
Together Credit Unions are the second largest lender to small businesses in Canada.
CORPORATE OFFICE
663 Pinewood Road, Riverview, NB
BRANCHES
141 Weldon Street, Moncton, NB | 960 St. George Boulevard, Moncton, NB
47 Main Street, Petitcodiac, NB | 9 East Main Street, Port Elgin, NB
5 Brait Street, Rexton, NB | 620 Coverdale Road, Riverview, NB
3118 Main Street, Salisbury, NB
506.855.2728 | www.advancesavings.ca