ANNUAL MEETING PRIZE DONORS
The London Fire Fighters Credit Union
gratefully acknowledges the following for
their generous donations
for the 69th Annual General Meeting:
• Budweiser Gardens
• Central 1 Credit Union
• Chatters Salon
• Crossings Grill & Pub
• CUMIS Insurance
• Execulink Telecom
• First Canadian Title Company Limited
• Helix Courier
STATEMENT OF OPERATIONS
As at December 31, 2015
Fixed assets – at cost*
Cash and receivables
Cash and cash equivalents*
Loans to members:
Lines of credit
for doubtful loans
• Indian Hills Golf Club
• Infonancial Software Inc.
• London Fire Fighters Credit Union Ltd.
• London Professional Fire Fighters
• Ontario West Coast Fisheries
• RJ Print / Proforma
• Storybook Gardens
and accrued charges
Accrued distribution payable
Membership share capital*
Capital adequacy reserve*
• Western Fair District
• Western Meats & Deli
• Widder Station Golf & Country Club
Approved on behalf of the Board
31,December 31, 2015
Interest on personal loans
commissions and other
Interest on members'
Remuneration to Officers
Honoraria to officers
Salaries to employees
Bad debt expense (recovery)
Bank charges & interest
Education & conferences
Member deposit insurance
Total operating expenses
Net income (loss) from
Other comprehensive income
Gain on write-up of CUCO
Co-op Class B Shares
Net income before taxes
Provision for taxes
Net income for the year
London Fire Fighters Credit Union Ltd
* See website for complete notes, financial statements
and auditors report: www.lffcu.ca
w w w. l f f c u . c a
69TH A N N U A L GENERAL MEETING
69 Annual Board of Directors Report
Credit Committee Report for 2015
Audit Committee Report for 2015
Auditor Report for 2015
According to DICO's (Deposit Insurance Corporation of Ontario) recent statistics,
the number of small credit unions in Ontario has gone from 250 in Dec/2000 to
just 36 as of Dec/2015. The total number of credit unions (of all sizes) has gone
from 322 to 110 over the same period. The credit union movement is strong in
Ontario with an increase of approximately 300% in assets over the past 15 years.
However, it continues to be very difficult for smaller credit unions like ours.
In following the guidelines set by the LFFCU Credit Policy, By-laws and
government regulations, the LFFCU Credit Committee and CEO met
monthly to review loan applications for the previous month.
The Audit Committee performed its duties in accordance with Credit
Unions and Caisses Populaires Act, 1994 and Ontario Regulation 237/09.
The LFFCU Audit Committee met monthly throughout 2015 for the
purpose of reviewing all regulatory, financial and legal obligations for the
2015 calendar year.
I have audited the accompanying financial statements of London Fire
Fighters Credit Union Limited which are comprised of the balance sheet as
at December 31, 2015, statement of adequacy reserve and retained
earnings, statement of operations, statement of changes in cash flows for
the year then ended, and a summary of significant accounting policies and
other explanatory information.
As one of the few remaining small Class 1 credit unions in Ontario the London
Fire Fighters Credit Union works hard to serve our membership and preserve our
brand. We provide the services that our members request and appreciate
primarily through savings and loans. Our goal is to provide quality service to our
unique membership while being mindful of the factors that influence the delivery
of our services. Externally, we have been impacted in 2015 by all-time low
interest rates, increasing insurance and bonding costs and changing regulatory
requirements. These factors are generally out of our control but affect our
bottom line in significant ways.
I am very proud of the combined efforts of our CEO, Audit and Credit
Committees and the Board of Directors in achieving our goals in 2015. In spite
of the challenges, we served our members well by providing excellent service,
increasing total loans and returning a dividend for the 69th consecutive year!
We continuously look for ways to attract new members, increase new loans
through promotional offers and reduce our costs so that we remain on budget.
We continue to satisfy all regulatory requirements in all areas and are rated well
by governing bodies.
“We're in this together” exemplifies our commitment to integrity while working
hard to earn the trust and respect of our members. We appreciate their
confidence in the LFFCU and look forward to a successful 2016.
The Board of Directors of the LFFCU is pleased to recommend the following
rates of return for 2015: Under $2000: 0.20%
Over $2000: 1.20%
It is with sadness that we report the passing of the following member this past
year: Barbara Reid.
Mary Ann Wilkins
CEO Report for 2015
Welcome to the 69th Annual General Meeting of the London Fire Fighters
We are on the cusp of an incredible accomplishment – seventy years of serving
our very special membership of fire fighters and their families. The LFFCU is
proud to have this long history of members helping members. This is becoming
rarer each year as mergers and acquisitions continue to swallow up small credit
unions. Yet we stand proud and strong!
As we start 2016, one of our goals remains the same as it was in 1947 – to have
London Fire Fighters pool their resources to help brothers and sisters with their
financial needs. As one of the very few small, closed-bond credit unions in
existence, we know our strengths and we know our members. We will continue
the long-standing tradition of profitability for years to come.
Decade after decade, we continue to be profitable and pay dividends. As most
of our members are aware, our dividends are considerably higher than major
banks pay on high-interest savings accounts. The ability to pay these strong
dividends is due to the fact that the LFFCU has finished another year without
loan losses from bankruptcies or proposals.
2015 was another strong year for our credit union. Our assets, loans and capital
were at healthy levels. Going forward, the LFFCU will continue to focus on
increasing our loan levels with competitive promotions, and increasing our
membership by enticing more employees to join our credit union, thereby
increasing our capital in the process.
We recognize that we can't accomplish all we do without our very special
membership. Our members understand how fortunate they are to have their
very own credit union. This pride and loyalty will ensure our strength and
performance for years to come.
The success of the LFFCU is a tribute to our members and our incredible Board
of Directors and Committee Members, who we thank tonight.
In 2015, the LFFCU has maintained gains in the dollar amount of loans,
which reached a recent high in 2014. Years previous to 2014 showed
steady and strong gains in total dollar amounts after low totals post 2008.
The total dollar value of loans for 2015 was $ 1,033,402.78. In 2014, the
loans totaled $1,082,087.49 - for a small decrease of $48,684.71.
The number of loans approved also showed a decrease from 119 in 2014
to 96 in 2015. This is the second year in a row showing fewer loans, as
2013 had 130 loans.
During 2015, the LFFCU Credit Committee recommended that 11 loans be
denied to protect the interests of those applying and all LFFCU members.
This is an increase of 2 over the previous year. The LFFCU Credit
Committee strives to serve its' members individually, while recognizing its
purpose of protecting the financial security of our whole membership.
A strong campaign for new vehicle loans proved to be a great success in
having new and current members use your LFFCU for their new auto loans.
The LFFCU continues to offer competitive rates and terms to meet all the
financial needs of its members.
Security of loans is in order as follows:
In 69 years the London Fire Fighters Credit Union is proud to have helped
its members with amounts totaling $42,770,320.48. It's the hope of your
LFFCU Board and Committees that we will be able to assist all its members
in 2016. The LFFCU Credit Committee would like to thank members that
turned to your credit union for their financial needs in the past year.
As always, the LFFCU Credit Committee would like to recognize CEO
Charmaine Spiegelberg for her dedication, support, guidance and attention
to the details that make the London Fire Fighters Credit Union a success.
In 2015, The Audit Committee assessed & reviewed Financial statements,
Daily logs, Trial Balances, Liquidity & Capital reports, Dormant accounts,
Quarterly reports, and all related reports relevant to the operation of the
LFFCU. Reports generated by the Credit Committee, along with all loan
applications processed by the Credit Union were reviewed. Monthly
Board meeting minutes, legal correspondence, and related matters for the
Credit Union were also reviewed on a monthly and as required basis.
The Internal Auditor Charter and work plan for 2015 were reviewed and
approved by the audit committee. Two visits by Rick Belsby of “Rick
Belsby & Associates Inc” took place in 2015. Rick's Internal Auditor
reports were reviewed by the Audit Committee & recommendations noted
and reported to the Board.
The Committee continued to fulfill its obligations for FINTRAC (Financial
Transactions and Reports Analysis Centre of Canada). All large
transactions are reviewed by the Credit Union. Any transactions meeting
criteria set by PCMLTFA (Proceeds of Crime –Money Laundering and
Terrorist Financing Act) must be reported. The Audit Committee ensures
compliance for the LFFCU. All large transactions were audited and none
met the criteria for reporting to FINTRAC.
The committee met in private consultation with the external auditor, Sam
Chan. No concerns or conflicts were noted relative to the operations of
the Credit Union, the Board and CEO functions during the reporting
period of 2015. Ongoing challenges of the LFFCU continue to be low
interests rates and declining Capital. Rising insurance premiums,
increased Lease costs, greater demands from regulators, and gradual
reductions in regulatory capital resulted in a lower income/assets return
for the LFFCU. Operating expense requirements for the LFFCU continue
to challenge the Board leading into 2016.
The Audit Committee reports that Policies and procedures of the LFFCU
were adhered and compliant for 2015. The Committee is committed to
notifying the Board, External Auditor, Internal Auditor, DICO (The Deposit
Insurance Corporation of Ontario) and FSCO (Financial Services
Commission of Ontario) should any issues arise.
The Board Directors for the Audit Committee in 2015 was represented by
Mark Milliken, Mary Ann Wilkins and Nick Hewetson. Thank you to all
Board Directors, the Credit Committee members and CEO Charmaine
Spiegelberg for their continued dedication in making the LFFCU a
member driven business.
Audit Committee Chair
Mary Ann Wilkins
LFFCU Credit Committee
The Audit process involved a work plan developed to provide a systematic
review of the LFFCU Policies & procedures for the operating year.
London Fire Fighters Credit Union Ltd.
400 Horton Street East, London ON N6B 1L7
Since 1947, the London Fire Fighters Credit Union is committed to
providing quality financial assistance in a friendly atmosphere and is
dedicated to working together with our members to meet their needs.
The vision of the London Fire Fighters Credit Union is to fuel the
fires that are the dreams of our members by providing support to
their financial needs.
Management's responsibility for the financial statements
Management is responsible for the preparation and fair presentation of
these financial statements in accordance with International Financial
Reporting Standards, and for such internal control as management
determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
My responsibility is to express an opinion on these financial statements
based on my audit. I conducted my audit in accordance with International
Standards on Auditing. Those standards require that I comply with ethical
requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material
The procedures selected depend on the auditor's judgment, including
assessment of the risk of material misstatement on the financial statements,
whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control.
An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall performance of the financial
I believe that the audit evidence I have obtained is sufficient and appropriate
to provide a basis for my audit opinion.
In my opinion, the financial statements give a true and fair view of the
financial position of London Fire Fighters Credit Union Limited as at
December 31, 2015, and of its financial performance and cash flows for the
year then ended in accordance with International Financial Reporting
CPA, Chartered Accountant
Licensed Public Accountant