2012 Annual Report - OPPA Credit Union

TABLE OF CONTENTS
Agenda of the 41 Annual Meeting
Page 2
A Look at 2012
Page 3
Report of the Board of Directors
Page 4
Chief Executive Officer’s Report
Page 5
Report of the Senior Manager, Credit and Risk
Page 6
Audit Committee Report
Page 7
Five Year Operating Highlights
Page 8
Board of Directors
Page 9
Board Committees
Page 10
2012 Management and Staff
Page 11
OPPA Credit Union Staff Service Awards
Page 12
Management’s Responsibility for Financial Reporting
Page 13
2012 Auditors’ Report
Page 14
Financial Statements
Page 15
Contact Us
Page 20
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OPPA Credit Union Vision Statement
Our focus is to provide the OPP family with a lifetime of superior financial experiences.
We equally value safeguarding of Member Assets; Member Satisfaction; and Employee
Satisfaction.
OPPA Credit Union - With You For Life
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AGENDA OF 41 ANNUAL GENERAL MEETING
st
DATE:
Wednesday, April 24, 2013
TIME:
Registration at 6:30 p.m.
Meeting at 7:00 p.m.
LOCATION:
Sheba Shrine Club
142 John Street
Barrie, Ontario
AGENDA:
1. Call to Order
2. Registration Report & Declaration of Quorum
3. Official Welcome
4. Adoption of Minutes of 40th 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
7. Election of Directors
8. Service Awards Presentation
9. Question Period
10. Door Prizes
11. Adjournment
DINNER AND REFRESHMENTS
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OPPA Credit Union - With You For Life
A LOOK AT 2012
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REPORT OF THE BOARD OF DIRECTORS
On behalf of your Board of Directors, it is my privilege to present the 2012
Annual Report of the OPPA Credit Union. The Board of Directors establishes
the
strategic
direction,
creates
and
maintains
policies,
oversees
management and ensures compliance with all regulatory and statutory
requirements. Annually, an independent audit is conducted by an audit firm
approved by the membership at our Annual General Meeting. The 2012
Auditor’s Report and accompanying financial statements form the basis of
this report.
This past year we continued to operate in a challenging economic environment. These challenges
are compounded by a changing landscape in the world of policing such as the recommendations
of the Drummond Report, declining new recruit rates and other potential government austerity
measures.
As a result, the Board of Directors continues to focus on the following three issues through our
2011-2014 Strategic Plan:
•
Manage growth, liquidity, capital and interest rate risk;
•
Ensure effective service delivery by investing in our human resources and infrastructure;
and,
•
Make our members aware of the unique value that we provide through value added
personal service.
In addition to the above challenges, the Board of Directors is approaching a period of significant
regulatory change with respect to the demands on, and expectations of, board members.
On behalf of the Board of Directors, I wish to thank the management team and the staff for their
hard work, courteous service delivery and dedication. The goals and vision of the Board can only
be realized by the staff implementing them. Our overall success is based on the quality people
who deliver our services.
In closing, I would also like to thank you our Members for your confidence and support.
Remember, as our website states, we are “with you for life”.
Steve Ridout
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OPPA Credit Union - With You For Life
CHIEF EXECUTIVE OFFICER’S REPORT
I’m pleased to report the OPPA Credit Union achieved moderate success in 2012
and has met and even exceeded some of the targets set by the Board of
Directors at our Strategic Planning Meeting. The economic and low interest rate
environment continues to put significant pressure on our operation. Interest
rates are anticipated to remain low and, while the economy is expected to
remain stable, there is no expectation for strong economic growth. We will
continue to strive for solid growth by building our business one customer at a
time by providing excellent and value added advice.
We operate in a highly regulated industry and are facing increasing regulatory
and compliance requirements. Ensuring employees and directors are properly trained and meeting
these requirements is an ongoing challenge.
On the financial front, we achieved asset growth of $11,862,398 or 8.06%.
Lending products
experienced growth of $10,340,154 or 7.48%. Looking forward to 2013, we will continue to employ the
resources of the Credit Union to ensure the financial viability and overall profitability is secured for today
and for the future.
The OPPA Credit Union continues to give back to our members with the Image and Awareness
Program. During 2012, awards were paid to our members as follows: Educational Scholarship Award
Program $7,000, RESP Award Program $1,000 and Retirement Award Program $4,000. Our staff and
management team are dedicated to providing the highest quality of services to our members. We are in
the business to help our members with their financial needs and assist them in meeting or exceeding
their life goals. Our strategic focus to increase member awareness of all OPPA Credit Union products
and services will continue.
During 2012, a number of upgrades were introduced to keep pace with current technologies. The RFS
banking system was upgraded to a new platform which mirrors Microsoft’s Outlook navigation and
display. Member Direct was enhanced to allow members to open various deposit accounts on-line.
Mobile SMS banking enables our members to check account balances and recent account activity
information from anywhere they can get a digital signal. Looking forward to 2013, we will be launching a
new website and introducing the iPhone App.
Special thanks to our Board of Directors for offering clear direction and vision throughout the year and to
our Management team and staff for continuing to offer dedicated and knowledgeable advice to our
membership. In closing, I would like to thank our members for your continued loyalty, support and
feedback.
Bryan Neely
Chief Executive Officer
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REPORT OF THE SENIOR MANAGER, CREDIT AND RISK
For 2012, I’m pleased to report that considerable growth was achieved in our
lending portfolio and we have continued to follow our fundamental principal of
building long-term relationships with our members.
Our credit granting is
performed in accordance with approved policies and procedures and applicable
legislation. Lending practices are set by the Board of Directors in policy and put
into practice through procedures. In 2012 the new position of Advisor Support
Rep was created to provide service and lending support to our Advisor teams.
This allows the Advisors to have the maximum time available to provide value
added service and advice to their members.
The statistics outlined below represent the number of loans for 2012 with 2011 comparison figures.
Loan Type
Number of Loans
Loan Value
2012
2011
2012
2011
Personal Loans
239
240
$ 4,489,107.70
$ 4,637,566.35
Recruit Loans
116
59
986,739.99
505,471.53
Mortgages
171
129
37,083,18.21
27,929,984.77
Commercial Mortgages
5
3
745,581.61
377,777.02
Bridge Loans
26
19
5,139,915.84
3,231,387.70
Meritline/Lines of Credit
169
127
5,248,965.00
4,745,500.00
Totals
726
577
$53,693,828.35
$41,427,687.37
Number of loans declined – 81
Delinquent loans over 90 days at December 31, 2012 - Nil
I thank the Member Service Advisors, Advisor Support Reps and Member Service Assistants for
providing our members with outstanding service during 2012.
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 2013.
Karen Zammit
Senior Manager, Credit and Risk
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AUDIT COMMITTEE REPORT
The OPPA Credit Union establishes an Audit Committee composed of members appointed by the
Board from among its directors as required by the Credit Union Act, Section 125 (1). Our Audit
Committee consists of three Board appointed members, with the CEO and Board Chair as exofficio members. The Committee held 5 meetings during 2012, guided by our Terms of Reference,
to fulfil our oversight responsibilities for:
•
Financial reporting and disclosure
•
The external audit function
•
The internal audit function
•
Risk management and control environment
•
Compliance
In addition, a committee meeting was held on November 19, 2012 with our internal auditor to
review the internal audit plan.
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, 2012 have been reviewed and
the Committee has recommended their acceptance and approval by the Board of Directors. The
Audit Committee also recommends that Jones & O’Connell perform the annual external audit for
2013.
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.
Committee Members:
Scott Couse
Scott Couse
Fred Bertucca
Audit Committee Chair
Michael Martin
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FIVE YEAR OPERATING HIGHLIGHTS
MEMBERS
STAFF
Total new memberships in 2012 were 338. We
continued with a comprehensive membership review
and transfer of inactive memberships during 2012.
ASSETS (including Assets Under Administration)
NET PROFIT
NOTE: 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].
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OPPA Credit Union - With You For Life
BOARD OF DIRECTORS
2012-2013
OPPA Credit Union Board of Directors is accountable to our membership for sound financial
decision-making and a commitment to the OPP community. Each director has a duty to ensure
that the Credit Union is managed in the best interests of all members, now and for the future.
Date
Term
Elected
Expires
Steve Ridout, Chair
2006
2015
David Don, Vice-Chair
2001
2013*
Michael Martin, Secretary
2009
2015
Scott Couse, Audit Chair
2001
2013*
Fred Bertucca, Director
2008
2014
Kim Patterson, Director
2008
2014
Suzanne Chaddock, Director
2012**
2013*
* Term expires at Annual Meeting
** Appointed in September 2012
Front Row (left to right): Fred Bertucca, David Don, Kim Patterson
Back Row (left to right): Scott Couse, Michael Martin, Steve Ridout
Absent: Bill Soule, Suzanne Chaddock
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BOARD COMMITTEES
Committee
Members
Audit
S Couse (Chair), F Bertucca, M Martin
Governance
D Don (Chair), S Ridout, M Martin, S Couse
Nominating
K Patterson (Chair), F Bertucca, M Martin
General
(CEO Performance Management/Policy Review)
K Patterson (Chair), D Don, S Chaddock
Bill Soule
The Board of Directors wish to recognize the contribution of Bill Soule to the governance of
our Credit Union. Bill was elected to the Board of Directors in 2004 and has served as our
Board Secretary, Vice-Chair and Chair of the Governance Committee during his terms of
office. Bill resigned from his position in September 2012 and we extend sincere thanks for
his dedication to the OPPA Credit Union.
In Memoriam
Our deepest sympathy is extended to the families of the members of the OPPA Credit Union
Limited who passed away during 2012.
Steve Ridout
Board Chair
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OPPA Credit Union - With You For Life
2012 MANAGEMENT AND STAFF
CHIEF EXECUTIVE OFFICER
CHIEF OPERATING OFFICER
Bryan Neely
Andrew Shannon
MANAGEMENT
Karen Zammit - Senior Manager, Credit and Risk
Debbie Sokoloskie – Senior Manager, Business Development
Laurie Dennis – Manager, Member Service Administration
Shelley Jong – Member Service Supervisor
SENIOR MEMBER SERVICE ADVISOR
Casey Thompson
MEMBER SERVICE ADVISORS
Shannon Antonio
Dale Gamble
Jennifer Collins
Victoria Simpson
ADVISOR SUPPORT REPRESENTATIVES
Bettyann Bielak
Carmen Langford
Tammy Lewis
Lorraine McCluskey
Tanya Verkerk
SENIOR MEMBER SERVICE ASSISTANT
Jill Bennett
MEMBER SERVICE ASSISTANTS
April Brockman
Jolene Hollmann
MEMBER SERVICE REPRESENTATIVES
Bonnie Elliott
Tammy King *
Danita Hellingman
Joanne Norrena
ADMINISTRATION STAFF
Iris Bilokrely
Starr Cook
Tineke Schmidt
Irene Stacey
Donna Trebble *
*Part-time
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OPPA CREDIT UNION 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 2013 Annual General Meeting:
5 Years of Service:
Bettyann Bielak - Advisor Support Representative
Tineke Schmidt - Senior Accounting Administrator
10 Years of Service
Laurie Dennis - Manager, Member Service Administration
15 Years of Service
Jill Bennett - Senior Member Service Assistant
25 Years of Service
Irene Stacey - Administrative Assistant
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OPPA Credit Union - With You For Life
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
OPPA Credit Union - With You For Life
Andrew Shannon
Chief Operating Officer
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OPPA Credit Union - With You For Life
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CONTACT US
Our Barrie Office:
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
Your Member Service Advisor
Each Member Service Advisor is assigned to a group of members, depending on the first letter of
your last name. To reach your Member Service Advisor by phone, call our main telephone number
and enter the extension. Our Advisor Support Reps provide technical member service and retail
lending support to our Member Service Advisor team.
Surname Alpha
Member Service Advisor
Advisor Support Rep
A,C,I,J,K,N,O
Dale Gamble
Bettyann Bielak
Extension 2231
Extension 2228
Shannon Antonio
Tammy Lewis
Extension 2223
Extension 2225
Jennifer Collins
Carmen Langford
Extension 2224
Extension 2249
Casey Thompson
Tanya Verkerk
Extension 2240
Extension 2234
Victoria Simpson
Lorraine McCluskey
Extension 2222
Extension 2239
B,D,T
E,F,G,H
L, M, U-Z
P,Q,R,S
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OPPA Credit Union - With You For Life