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TRALEE CREDIT UNION LTD. | annual repOrt 2012
Our MiSSiOn StateMent
TRALEE CREDIT UNION LTD. | annual repOrt 2012
YOur VOluntarY BOard Of directOrS
elected By You, to Serve You
“As an organisation based in community service, Tralee Credit Union Ltd through the
combined eﬀorts of its Board, Management, Staﬀ and Volunteers, is committed to
enhancing beneﬁt and choice for its members through a range of ﬁnancial services to
the highest standard. These services will be delivered with integrity within the operating
principles of the credit union movement. Tralee Credit Union Ltd will lead and promote
best practice in everything it does.”
ManageMent and Staff
Board Directors are elected by members and are responsible for the control, direction and
management of Tralee Credit Union.
Board of Directors, seated left to right: Anna Brosnan, Grainne Foley-Joy, Brendan Treacy, Jacintha Eustace.
Standing: Mary O’Connell, Katrina Rice (Assistant Manager) Alan Laide, George Lowe, Peter Pierse, Tom Lawlor,
Cathal Tyther and Fintan Ryan (Manager). Missing from photo: Breda O’Dwyer, Paddy Lange and Vicky Kelliher.
YOur VOluntarY SuperViSOrS
elected By You, to Serve You
diddidyou
know?
you know?
Tralee Credit Union is owned by you, our members, who save and
borrow with us. All credit unions are independent and managed
locally by their members.
Your voice counts, have your say, attend our AGM Monday
3rd december in the Carlton Hotel,Tralee at 8.00pm.
Supervisors are elected by members
to ensure that all laws, regulations,
policies and procedures are
strictly adhered to by the Board,
Management and Staﬀ.
Supervisors, seated left to right: Catherine Moylan, Gene Boyd, Dick Carmody.
Standing: John Harrington and John Naughten.
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
cOntentS
Agenda
Directors Report
Statement of Directors Responsibilities
Financial Statements 2011/2012
Auditor’s Report
Income and Expenditure Account
Balance Sheet
Cash Flow Statement
Notes to Financial Statements
Deposits and Investments
agM agenda
Monday 3rd december, 2012
5
6-7
8
9 - 10
11
1
1
14 - 1
George Lowe
Hon Secretary
RepORtS
Supervisory Committee Report
Credit Committee Report
4 - 5
Credit Control Committee Report
6 - 7
Youth Committee Report
8
Marketing & Development Committee Report 9
Membership Committee Report
0
Tax Treatment of Dividend
1
Insurance Services
Nominations and Elections
Amendments to Standard Rules
4
Standing Orders
4 - 5
Why support your lOcal credit union?
L ocally owned and controlled by our members, you have a say in how we are run
Opportunity for ﬁnancial independence, we make your money work for you
C ommunity based, you know the people you are dealing with
A lternative Banking Solution, Loans, Savings, Insurance and Banking Services
L oans, your savings provide a smart place for members to borrow
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1.
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3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
carlton Hotel
8.00pm
Invocation - Credit Union Prayer
Acceptance of Proxies (if any) by the Board of directors
Ascertain that a Quorum is present
Adoption of Standing orders
Reading and Approval of the Minutes of 2011 AGM
Appointment of Tellers
Report of the nominating Committee & election of directors, Supervisors & Auditors
Report of the directors
Report of the Treasurer, Auditor and approval of the Treasurer’s Honorarium
declaration of dividend
Report of the Supervisory Committee
Report of the Credit Committee
Report of the Credit Control Committee
Report of the Membership Committee
Report of the Youth Committee
Report of the Marketing and development Committee
Approval of League Aﬃliation Fees - 90c per member
Approval of the deduction of €4.50 death Beneﬁt Insurance per member
Proposal to amend Rules to Tralee Credit Union (see below)
Approval to amend the Standard Rules arising from I.L.C.U. AGM 2012
AGM Members draw
Announcement of election Results
Any other Business
Live Members Car draw (subject to suﬃcient numbers)
Close of Meeting
Amendment to rule 64 (2) of the Rules of tralee Credit Union Limited.
The Board of Directors propose to change the Rule relating to the membership of the Board of Directors to
have the eﬀect of reducing the number of members on the Board from thirteen to eleven. (This is in line with
the proposals of the Credit Union Bill 01.)
The members of Tralee Credit Union Limited hereby resolve that “the Board of Directors shall consist of eleven
members, all of whom shall be members of Tralee Credit Union Limited.”
Amendment to Rule 22 of the Standard Rules for Credit Unions; Dormant accounts;
as per resolution, adopted at the I.L.C.U. Annual General Meeting 01, the Board of Directors propose to
amend Rule of the Standard Rules for Credit Unions. See full amendment on page 34.
5
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
directors report
2012 - A Positive Year
we, the Board of directors are pleased to report to you a positive year for Tralee Credit Union. our audited accounts for this
year show an increase in our surplus, an increase in the level of
our savings and as expected a fall in the value of our loan book.
Brendan treacy (Chairman)
2012 - Another year of change
tralee C.I.e.
During the year we completed the legal Transfer
of Engagements from Tralee C.I.E. Credit Union. In
extending a warm welcome to the members of
Tralee C.I.E. Credit Union, we thank the volunteer
Directors and Committees of Tralee C.I.E. Credit
Union for their work in the past. We are committed
to continuing and improving the level of service
enjoyed by Tralee C.I.E. Credit Union members for
over 40 years.
union will be eleven. We are proposing to
implement this recommendation this year and the
proposal will be brought to the AGM for decision.
New Services: We continue to improve our
services to our members.
Payment by LASER/DEBIT card can now be
accepted. This service has proven popular and
allows members to make repayments to their
loans even when away.
€100 million in savings
In July of this year we celebrated a signiﬁcant
milestone when our savings reached €100 million.
This landmark in our development conﬁrms Tralee
Credit Union’s position as one of the largest
community based credit unions in the country.
This level of savings underlines your trust in your
credit union to manage your aﬀairs with
conﬁdence and security into the future.
Online Banking: We recently introduced a
complete online banking facility for our members.
The service can be accessed through our website
www.traleecu.ie or through our mobile “app”.
Collect a brochure or get information on our
website. The service allows members to access
their accounts to make payments and do transfers
online. We would encourage members to use this
time saving and convenient service.
Credit Union Bill
This year saw the publication of the report of the
Commission on Credit Unions and the subsequent
introduction of a new Credit Union Bill. This Bill
when signed into law in early next year will bring
new changes and will be a positive event in the life
of the credit union movement. It will ensure better
oversight and supervision of credit unions and as
a consequence improve the security of your credit
union for you, the members. One of the
recommendations of the Commission is that the
maximum number of directors in each credit
Loans: As expected, our loan book has continued
to drop in value down from €47.89m in 011 to
€45.97m in 01, a decrease of 4%. The drop is due
to a general lack of conﬁdence in the economy, a
further decrease in members’ disposable income
and tighter lending criteria being applied by our
lending team. In 01 we joined the Irish Credit
Bureau (ICB) and this entitles the credit union, with
the member’s consent, to have access to the
member’s credit history. We have a responsibility
to borrowers to adequately assess their repayment
ability and thereby protect the quality of our loan
book and ultimately members’ savings.
6
Loan Arrears: 01 has been another very diﬃcult
year for our economy, highlighted by a recent
study by the Irish League of Credit Unions which
found that members have less disposable income
at the end of each week. While this has continued
to impact on people’s ability to repay their loans,
we have worked very hard with members to ﬁnd
solutions where diﬃculties have arisen with regard
to loan repayments. In general, members have
been very cooperative with us even though in
some situations their ability to repay is quite
limited. As a consequence and despite our best
eﬀorts we have written oﬀ almost €1.m during
the year (€1.1m in 011). We recovered €11k
(€06k in 011) of loans previously written oﬀ. We
have increased our Doubtful Debt Reserve by
€101k (€970k in 011).
Dividend: As Tralee Credit Union has achieved an
improved surplus for the year, the Directors are
pleased that we are in a position to recommend an
increase in our rate of dividend on shares to 1.5%
(1% in 011). This will mean a return to members of
almost €1.5 million. (€946k in 011). You will see
from our accounts (page 11) that the increase in
our income came as a result of increased return on
our investments. The boost in our investment
income came largely from a bond which was not
due to mature until 01, which the Irish
Government bought back in August of this year
thereby bringing forward the increased income.
Strategic plan: During the year we commenced
the process of preparing a Strategic Plan for Tralee
Credit Union which will chart a course for us over
the next three years. The plan will look at ways of
ensuring strength and development of Tralee
Credit Union, ensuring that your savings are safe
and providing services that would be beneﬁcial
and relevant to you.
Retirements: Breda O’Dwyer and Vicky Kelliher
are retiring from the Board. We thank them for
their input. Breda, in particular, has served as
chairperson of Tralee Credit Union and has done
great work on the marketing and other
committees. I would like to thank her for her great
service. Patrick Flaherty and Maurice O’Brien
resigned during the year and we gratefully
acknowledge their contribution. Dick Carmody
ﬁnishes his term on the Supervisory Committee
and we thank him for his involvement. Sheila
Looney retired from staﬀ during the year and we
wish her a happy retirement.
We would like to take this opportunity to
remember our members who have passed away
during the year and to extend our condolences to
their families.
thanks: On behalf of the Board of Directors I
would like to thank the Management and Staﬀ for
their hard work and support over the last twelve
challenging months. They meet you on a daily
basis, are the face of the credit union and give you
a great service. I thank my fellow Board members,
Supervisors and Committee members for giving
their time so freely on a voluntary basis. The role
of the credit union is to provide a service to you
and on behalf of the Board, I thank you, our
members, for your continued support for your
credit union. As we face our 45th year we look
forward to whatever 01 has to bring, with
conﬁdence.
Brendan treacy (Chairman)
BecOMe a credit uniOn VOlunteer
If you are interested in becoming a Credit Union Volunteer please write to the
nominating Committee, Tralee Credit Union, 45-47 Ashe Street, Tralee, Co. Kerry.
or email: nominate@traleecu.ie
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TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
StateMent Of directOrS reSpOnSiBilitieS
independent auditOr’S repOrt tO MeMBerS
fOr tHe Year ended 30th SepteMBer 2012
fOr tHe Year ended 30th SepteMBer 2012
The Credit Union Act, 1997 (as amended)
requires the Directors to prepare financial
statements for each financial year which give
a true and fair view of the state of affairs of
the credit union and of the income and
expenditure of the credit union for that period.
In preparing those financial statements, the
directors are required to:
• Select suitable accounting policies and then
apply them consistently;
• Make judgements and estimates that are
reasonable and prudent;
The Directors are responsible for keeping
proper accounting records which disclose with
reasonable accuracy at any time the ﬁnancial
position of the credit union and which enables
them to ensure that the ﬁnancial statements
comply with the Credit Union Act, 1997 (as
amended).
They are also responsible for safeguarding the
assets of the credit union and hence for taking
reasonable steps for the prevention and
detection of fraud and other irregularities.
Signed on behalf of the Board of Directors:
Grainne Foley-Joy and Brendan treacy
• Prepare the ﬁnancial statements on the
going concern basis unless it is inappropriate
to presume that the credit union will
continue in business.
We have audited the ﬁnancial statements of
Tralee Credit Union Limited for the year ended
0th September 01 which comprise the
Income and Expenditure Account, the Balance
Sheet, Cash Flow Statement and the related
notes. These ﬁnancial statements have been
prepared under the accounting policies set out
in therein.
Respective Responsibilities of Directors
and Auditor
The Directors' responsibilities for preparing the
Annual Report and the ﬁnancial statements in
accordance with applicable law and the
accounting standards issued by the Accounting
Standards Board and promulgated by the
Institute of Chartered Accountants in Ireland
(Generally Accepted Accounting Practice in
Ireland) are set out in the Statement of Directors'
Responsibilities.
Our responsibility is to audit the ﬁnancial
statements in accordance with relevant legal
and regulatory requirements and International
Standards on Auditing (UK and Ireland).
StateMent Of SuperViSOrY cOMMittee'S reSpOnSiBilitieS
for the year ended 30th September 2012
The Credit Union Act, 1997 (as amended) requires the appointment of a Supervisory
Committee to oversee Directors in the performance of their functions examine books and
documents of the credit union and verify a sample of members’ balances.
Signed by the Chairman of the Supervisory Committee:
Gene Boyd
8
This report is made solely to the credit union’s
members, as a body, in accordance with Section
10 of the Credit Union Act, 1997. Our audit
work has been undertaken so that we might
state to the credit union’s members those
matters we are required to state to them in an
auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than
the credit union and the credit union’s members
as a body, for our audit work, for this report, or
for the opinions we have formed.
We report to you our opinion as to whether the
ﬁnancial statements give a true and fair view and
are properly prepared in accordance with
Generally Accepted Accounting Practice in
Ireland and the Credit Union Act, 1997. We also
report to you whether in our opinion proper
accounting records have been kept by the credit
union. In addition, we state whether we have
obtained all the information and explanations
necessary for the purposes of our audit and
whether the credit union's ﬁnancial statements
are in agreement with the accounting records.
We read the other information contained in the
annual report and consider whether it is
consistent with the audited ﬁnancial statements.
The other information comprises only the
Directors’ Report, the Credit Committee’s
Report, the Credit Control Committee’s Report,
the Supervisory Committee’s Report, Youth
Committee’s
Report,
Marketing
and
Development Committee’s Report and the
Membership Committee’s Report. We consider
the implications for our report if we become
aware of any apparent misstatements or
material inconsistencies with the ﬁnancial
statements. Our responsibilities do not extend
to any other information.
Basis of Audit Opinion
We conducted our audit in accordance with
International Standards on Auditing (UK and
Ireland) issued by the Auditing Practices Board.
An audit includes examination, on a test basis,
of evidence relevant to the amounts and
disclosures in the ﬁnancial statements. It also
includes an assessment of the signiﬁcant
estimates and judgements made by the
9
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
incOMe and expenditure accOunt
directors in the preparation of the ﬁnancial
statements and of whether the accounting
policies are appropriate to the credit union’s
circumstances, consistently applied and
adequately disclosed.
We planned and performed our audit so as to
obtain all the information and explanations
which we considered necessary in order to
provide us with suﬃcient evidence to give
reasonable assurance that the ﬁnancial
statements are free from material misstatement,
whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated
the overall adequacy of the presentation of
information in the ﬁnancial statements.
Opinion
In our opinion the ﬁnancial statements:
• give a true and fair view of the state of the
aﬀairs of the credit union as at 0th
September 01 and of its income and
expenditure for the year then ended; and
In our opinion the information given in the
Directors' Report is consistent with the ﬁnancial
statements.
For and on behalf of
Joan O’Sullivan & Co.
Chartered Accountants
& Registered Auditors
12 Denny Street
tralee
County Kerry
7th November 2012
fOr tHe Year ended 30th SepteMBer 2012
2012
INCOme
€
,856,01
(19,061)
,650,477
46,08
6,923,645
55,91
6,979,566
4,058,164
(,777)
,181,015
6,205,402
59,894
6,265,296
1,070,40
407,91
71,846
88,16
9,004
100,945
1,171,64
(11,601)
3,441,305
1,061,155
405,15
88,
8,116
18,58
971,545
1,100,1
(05,870)
4,371,327
excess of income over expenditure for year
3,538,261
1,893,969
Add:
,775,00
94,604
(946,180)
5,461,885
,080,45
104,567
(878,60)
3,200,369
(5,86)
(99,174)
-
(189,97)
(188,878)
(46,894)
5,008,885
2,775,200
Interest on members' loans
Interest payable and similar charges
Other interest income and similar income
Gains on disposal of Investments
Net interest income
Other Income
total income
note 8
schedule 1
schedule 2
expeNDItURe
Salaries and other wage costs
Share & loan insurance
Death beneﬁt insurance
Other management expenses
Depreciation
Provision for bad and doubtful debts
Bad debts written oﬀ
Bad debts recovered
total expenditure
Less:
• have been properly prepared in accordance
with Generally Accepted Accounting Practice
in Ireland and in accordance with the
requirements of the Credit Union Act, 1997.
2011
€
Less:
schedule 3
note 3
Undistributed surplus at 1 October
Transfer from unrealised reserve
Dividend paid
note 8
Transfer to Statutory Reserve
Transfer to Additional Regulatory Reserve
Transfer to unrealised reserve
note 7
note 7
note 7
(undistributable investment income)
We have obtained all the information and
explanations we consider necessary for the
purpose of our audit. In our opinion, proper
accounting records have been kept by the credit
union. The ﬁnancial statements are in agreement
with the accounting records.
10
Undistributed Surplus at 30 September 2012
A separate statement of total recognised gains and losses is not required as there are
no gains or losses other than those reﬂected in the income and expenditure account.
On behalf of the credit union:
treasurer:
Grainne Foley-Joy 7th Nov. 01
member of Supervisory Committee:
John Naughten
7th Nov. 01
member of the Board of Directors:
Brendan Treacy
7th Nov. 01
11
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
Balance SHeet
caSH flOW StateMent
aS at 30th SepteMBer 2012
ASSetS
fOr tHe Year ended 30th SepteMBer 2012
2011
€
1,60,568
1,796,810
74,57,91
67,190,760
45,967,67
47,890,156
Notes
Cash and balances at bank
Deposits and investments
2012
€
2
Loans to members
Less: Provision for bad and doubtful debts
3
(4,8,185)
(4,596,47)
Tangible ﬁxed assets
4
1,491,84
1,476,04
94,04
9,9
118,680,008
113,787,209
Debtors, prepayments and accrued income
total assets
2012
€
Members' deposits
Members' shares
5
Other liabilities, creditors, accruals and charges
6
total liabilities
Net worth
,07,116
1,46,496
99,545,71
97,96,64
184,49
175,546
101,802,979
99,538,684
16,877,029
14,248,525
Excess of income over expenditure
,58,61
Provision for bad and doubtful debts
100,945
971,545
1,171,64
1,100,1
Loans written oﬀ
Depreciation
Net cash ﬂow from trading activities
4,094,409
(1,489,84)
,145,986
751,47
New deposits and shares by members
Repayment of deposits and shares
5,65,90
(55,0,9)
,55,49
New investments made
47,58,56
Investments redeemed or derecognised (78,777,57)
(57,064,014)
(7,167,171)
Net increase in Debtors,prepayments and accrued income
Additional regulatory reserve
7
,7,71
,18,197
Net increase/(decrease) in other liabilities
11,868,144
11,378,721
5,008,885
,775,00
7
-
94,604
16,877,029
14,248,525
Net cash inﬂow from operating activities
treasurer:
Grainne Foley-Joy 7th Nov. 01
member of Supervisory Committee:
John Naughten
7th Nov. 01
member of the Board of Directors:
Brendan Treacy
7th Nov. 01
(9,480,478)
(64,111)
4,17
8,946
(4,1)
770,442
(1,919,832)
770,44
(1,919,8)
(946,180)
(878,60)
CASh FLOw StAtemeNt
Dividend and interest rebate paid to members
On behalf of the credit union:
,801,50
71,610,66
9,40,54
Undistributable investment income reserve
656,70
58,104,46
(51,010,55)
Net cash inﬂow from operating activities
1
18,58
4,986,182
19,907,17
9,60,77
total reserves
9,004
(19,155,970)
Repayment of members loans
7
7
1,89,969
8,0
Statutory reserve
Income and expenditure reserve
€
Transfer of Engagement Tralee CIE CU
Represented by
total regulatory reserve
€
Reconciliation of excess of income over
expenditure to net operating cash ﬂows
New loans to members
LIABILItIeS
2011
€
Capital expenditure
Increase/(decrease) in cash
(18,504)
(45,60)
(194,242)
(2,844,055)
Opening cash
1,796,810
4,640,865
Closing cash
1,602,568
1,796,810
1
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
nOteS tO tHe financial StateMentS
1. StAtemeNt OF ACCOUNtING pOLICIeS
1.1 Accounting convention
The ﬁnancial statements have been prepared on the
going concern basis and in accordance with
accounting standards generally accepted in Ireland
and Irish statute comprising the Credit Union, 1997.
Accounting Standards generally accepted in Ireland in
preparing ﬁnancial statements giving a true and fair
view are those published by the Institute of Chartered
Accountants in Ireland and issued by the Accounting
Standards Board.
1.2 Revenue recognition
Revenue is recognised to the extent that it is probable
that the economic beneﬁts will ﬂow to the credit union
and the revenue can be reliably measured. Revenue is
measured at the fair value of the consideration
received. The following criteria must also be met before
revenue is recognised:
Interest on members' loans
Interest on members' loans is recognised when
payment is received as speciﬁed in Section 110(1)(c)(i)
of the Credit Union Act, 1997 (as amended) (i.e. on a
cash basis).
Term deposits and ﬁxed interest investment bonds
Term deposits and ﬁxed interest investment bonds
with ﬁxed maturity dates are valued at the lower of cost
or encashment value and interest income is recognised
in the income statement when it is received or
irrevocably receivable.
Unit funds and equity investments
Unit funds, property funds and other stock market
investments are valued at the lower of cost or market
value and dividend or other income is recognised in
the income statement when it is received or irrevocably
receivable. Increases in capital value are not recognised
until the asset is sold or matures. Decreases in market
value are recognised immediately.
Investments with return of capital guarantee
Investments with return of capital guarantee are
valued at the lower of cost or market value but not
lower than the capital guaranteed amount. Dividends
or other income is recognised in the income statement
when it is received or irrevocably receivable.
Investment income
Investment income is recognised when received or
receivable. Investments are recognised at cost less any
permanent diminution in capital value but ignoring
any increase in capital value or encashment value until
realised in the form of cash or cash equivalents.
The speciﬁc investment products held by the credit
union are accounted for as follows:
Bonds with guaranteed capital and variable
interest rates
Interest income is recognised as received. Some bonds
pay high rates of interested in early years and lower
rates in later years. Paying higher amounts in early
years reduces (impairs) the capital value of the bond.
The capital value of the bond is tested annually for
impairment and impairment losses are taken to the
income statement. Impairment gains which reverse a
previous impairment loss are included in the income
statement with any gains in excess of the cost of the
product ignored until the bond matures.
Bank deposits and other short term deposits
These are valued at the deposit amount plus any
accrued interest and interest income is recognised in
the income statement on an accruals (time) basis.
1.3 tangible ﬁxed assets and depreciation
Tangible ﬁxed assets are stated at cost less
accumulated depreciation. Depreciation is provided on
all tangible ﬁxed assets, other than freehold land, at
14
rates calculated to write oﬀ the cost or valuation, less
estimated residual value, of each asset systematically
over its expected useful life, as follows:
- Freehold premises - straight-line over 50 years
- Fixtures & ﬁttings - straight-line over 10 years
- Computer equipment - straight-line over 4 years
Tangible ﬁxed assets are subject to an annual review
for impairment in accordance with FRS 11 ‘Impairment
of ﬁxed assets and goodwill’. Any impairment is
recognised in the income and expenditure account in
the year in which it occurs.
1.4 members' shares
There is no limit to the number of shares which the
credit union is authorised to issue. The number of
shares held does not determine a member’s voting
rights since each member is entitled to one vote only at
any general meeting. The classiﬁcation of share capital
as liabilities in the balance sheet is consistent with
Financial Reporting Standard 5 'Financial Instruments:
Presentation’, and the subsequent Interpretation issued
in relation thereto by the Urgent Issues Task Force
(UITF). This standard also requires that dividend and
loan interest rebate payments to members should be
classiﬁed as an interest expense and presented as a
charge in arriving at the net surplus for the year. The
ﬁnancial statements are not in compliance with this
standard as the directors have recognised these
payments as an appropriation of undivided surplus.
This accounting treatment is consistent with traditional
credit union practice and the Credit Union Act, 1997(as
amended).
1.5 pension costs
Deﬁned beneﬁt scheme:
The credit union participates in the Irish League of
Credit Unions Republic of Ireland Pension Scheme (the
pension scheme). This is a funded, multi credit union,
deﬁned beneﬁt pension scheme. Because the credit
union is unable to identify its share of the assets and
liabilities of the pension scheme, the credit union, in
accordance with the requirements of Financial
Reporting Standard 17, Retirement Beneﬁts, and
guidance from the League; is accounting for the
pension contributions as if the scheme was a deﬁned
contribution scheme. Contributions payable to the
pension scheme are recognised in the income and
expenditure account.
Deﬁned contribution scheme:
Pension contributions in respect of deﬁned
contribution schemes for all new employees are
charged to the income and expenditure account as
they become payable in accordance with the rules of
the scheme. The assets are held separately from those
of the credit union in an independently administered
fund. Diﬀerences between the amounts charged in the
income and expenditure account and payments made
to pension funds are treated as assets or liabilities.
1.6 Bad and doubtful debts
Bad debts written oﬀ and bad debts recovered are
included in the income and expenditure account.
Provision has been made for doubtful debts, in
accordance with Resolution 49 of the Irish League of
Credit Unions. At the balance sheet date, the provision
includes an additional bad debts provision as
considered prudent by the directors.
15
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
fOr tHe Year ended 30th SepteMBer 2012
fOr tHe Year ended 30th SepteMBer 2012
2012
€
2011
€
4. tANGIBLe FIxeD ASSetS
Freehold
premises
€
Fixtures &
Fittings
€
Computer
equipment
€
total
COST
At 1st October 011
Transfer from Tralee CIE CU
Additions in year
At 30th September 2012
,008,9
17,19
2,135,432
418,408
9,110
427,518
61,044
9,94
621,438
,08,691
17,19
18,504
3,184,388
DEPRECIATION
At 1st October 011
Transfer from Tralee CIE CU
Charge in year
At 30th September 2012
606,05
8,
40,587
684,972
400,995
18,664
419,659
555,60
,75
588,373
1,56,667
8,
9,004
1,693,004
1,40,187
1,450,460
17,41
7,859
56,44
33,065
1,476,04
1,491,384
2012
€
2011
€
99,545,371
97,936,642
2012
€
2011
€
16,890
0,80
78
184,492
140,979
1,784
,78
175,546
2. DepOSItS AND INveStmeNtS
Cash and bank deposits
46,688,805
44,550,580
Investments
6,56,84
1,445,817
7,045,69
65,996,97
Accrued interest
1,1,9
1,194,6
74,357,931
67,190,760
Included in Investment bonds is an amount of €4,68,414 (011: €17,96,56) in respect of
bank and government bonds valued at the lower of cost or capital guaranteed amount.
These investments are capital guaranteed if held to maturity by the credit union.
The market value of these bonds at 0th September 01 with maturity dates between 014
and 019 is €6,50,066 (011 €15,165,000).
2012
€
2011
€
4,596,47
,64,98
NET BOOK VALUE
At 1st October 011
At 30th September 2012
€
3. LOAN ARReARS AND DOUBtFUL DeBtS
Opening provision for bad debts
Bad debts incurred during the year
(1,171,64)
(1,100,1)
Bad debts recovered during the year
11,601
05,870
Transfer from Tralee CIE CU
15,767
-
Increase in bad debt provision
Closing provision for bad debts
960,986
1,865,987
4,833,185
4,596,473
5. memBeRS' ShAReS
Regular share accounts
6. OtheR LIABILItIeS, CReDItORS, ACCRUALS & ChARGeS
The current provision in the ﬁnancial statements is €4,8,185 (011: €4,596,47) representing
10.51% (011: 9.6%) of the total loan book. This amount exceeds the Resolution 49 requirement
by €1,910,000 (011: €1,600,000). Loans rescheduled or reﬁnanced during the year amounted
to €89,066 (011: €77,70).
16
Trade Creditors and Accruals
PAYE and PRSI
DIRT
17
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
fOr tHe Year ended 30th SepteMBer 2012
fOr tHe Year ended 30th SepteMBer 2012
7. mOvemeNtS ON ReSeRveS
8. DIvIDeND, INteReSt & LOAN INteReSt ReBAte
Statutory
reserve
Additional
regulatory
reserve
Income and Undistributable
expenditure
investment
reserve income reserve
€
€
€
€
€
9,40,54
,18,197
,775,00
94,604
14,48,55
total
the following distributions were paid out from the surplus earned in previous years:
2012
2011
Rate
€
Rate
€
Dividend on shares
At 1st October 011
Transfer from Tralee CIE CU
6,4
6,4
Excess of income over
expenditure
-
-
,58,61
-
,58,61
Dividend paid
-
-
(946,180)
-
(946,180)
Transfer from investment
income reserve
-
-
94,604
(94,604)
-
Transfer from income and
expenditure account
5,86
99,174
(45,000)
-
-
At 30th September 2012 9,630,773
2,237,371
5,008,885
-
16,877,029
Statutory reserve
Under the provisions of the Credit Union Act, 1997, at least 10% of each year's surplus must
be transferred to the statutory reserve.
Additional regulatory reserve
In accordance with the Credit Union Act, 1997 (Section 85) Rules 009, the credit union is
required to maintain a regulatory reserve ratio of not less than 10% with eﬀect from 0th
September 009. The regulatory reserve ratio is deﬁned as the amount held in the total
regulatory reserve of the credit union (i.e. statutory reserve and additional regulatory reserve)
expressed as a percentage of the total assets of the credit union.
The current regulatory reserve in the ﬁnancial statements represents 10.00% (011: 10.00%)
of the total assets of the credit union.
Income and expenditure reserve
The income and expenditure reserve (formally known as the general reserve) is a reserve
speciﬁcally set aside in previous years to provide for future dividend and loan interest rebate
payments.
Undistributable investment income reserve
Under the provisions of the "Guidance Note for Credit Unions on Matters Relating to Accounting
for Investments and Distribution Policy (April 2009)" issued by the Registrar of Credit Unions,
the credit union is required to transfer investment income not receivable within 1 months of
the balance sheet date to a reserve which is not eligible for distribution. When such income
becomes receivable within 1 months of the balance sheet date, it can be transferred to the
income and expenditure reserve.
18
1.00%
Interest on deposits
946,180
1.00%
878,60
19,061
965,241
,777
912,397
The directors recommend the following distributions to be paid in December 01:
Gross dividend on shares
1.50%
1,480,878
1.00%
951,795
1,480,878
951,795
Rates of interest paid on members' deposits
A rate of interest of .% (011: .%) was paid on members special term deposits.
9. ReLAteD pARty tRANSACtIONS
Loans amounting to €17,5 (011: €88,51) in total, were granted to oﬃcers of the credit
union during the period. At 0th September 01, the balance outstanding on loans to oﬃcers
amounts to €,11 (011: €17,1). At 0th September 01, savings of oﬃcers amount
to €460,818 (011: €518,47).
During the year €,400 (011: €,700) was paid for software licensing and maintenance to Pierse
Tec Limited, a company controlled by Peter Pierse who is a director of Tralee Credit Union Ltd.
10. RAteS OF INteReSt ChARGeD ON memBeRS' LOANS
2012
Per month
APR
Ordinary members' loans
0.75%
9.7%
Special car loans
0.66%
8.0%
Student loans
0.58%
7.5%
Social ﬁnance loans
0.46%
5.67%
Secured Loans
0.46%
5.67%
2011
Per month
0.75%
0.66%
0.58%
0.46%
0.46%
APR
9.7%
8.0%
7.5%
5.67%
5.67%
11. hONORARIUm tO tReASUReR
The directors recommend that the Treasurer be paid a gross honorarium for the year ended
0th September 01 of €6,000 (011: €5,000)
19
TRALEE CREDIT UNION LTD. | annual repOrt 2012
12. pensions
The credit union participates in an industry-wide
pension scheme for employees (The Irish League of
Credit Unions Republic of Ireland Pension Scheme). This
is a funded scheme of the deﬁned beneﬁt type, with
assets invested in separate trustee administered funds.
However, Tralee Credit Union Limited is unable to
identify its share of the underlying assets and liabilities.
Consequently, Tralee Credit Union Limited accounts for
its contributions to the scheme as if it were a deﬁned
contribution scheme. Contributions payable to the
scheme are recognised in the income and expenditure
account.
An actuarial review of the fund is normally carried out
every three years by the Scheme’s independent,
professionally qualiﬁed, actuary. The actuarial review
looks at the past & future liabilities of the scheme.
The last completed triennial actuarial review was carried
out with an eﬀective date of 1st March 011 using the
Projected Unit Credit method. The principal actuarial
assumption used in the valuation was the investment
return would be 1.75% higher than the annual salary
increases. The market value of the scheme’s assets at 1st
March 011 was €107.m. The actuarial valuation
disclosed a past service deﬁcit of €8.7m on the long
term funding basis at 1st March 011. This actuarial
review recommended a long term funding rate of
.5%. The cost of risk beneﬁts is paid in addition to this
rate.
It should be noted that the above rate is based on the
long term funding objectives. As a separate requirement
under section 56(1) of the Pensions Act 1990, the
scheme actuary must carry out a separate valuation
every years and produce a funding certiﬁcate for
submission to the Pensions Board within 9 months of
the eﬀective date of the valuation. The purpose of the
certiﬁcate is to certify whether or not the assets of the
scheme at the eﬀective date are suﬃcient to meet the
liabilities of the scheme based on the assumption that
the scheme was wound up at that date.
An actuarial funding certiﬁcate, certifying the Scheme
did not meet the statutory minimum funding standard
was submitted to the Pensions Board with an eﬀective
date of 1st March 009.
0
TRALEE CREDIT UNION LTD. | annual repOrt 2012
Consequently, the Trustees submitted a new funding
proposal, to address the shortfall in funding, to the
Pensions Board. The submitted funding proposal is
designed to ensure that the scheme could reasonably
be expected to satisfy the funding standard as at 1st
March 019 and provides for a retirement contribution
rate of 7.7%. The cost of risk beneﬁts is payable in
addition giving a total contribution rate of 0% of
Pensionable Salary. This funding proposal was approved
by the Pensions Board.
For the scheme year ended 9th February 01 the
actuary advised that having been directed by the
Trustees and Employer, in light of the current economic
outlook, that it was appropriate to revise the
assumption for salary increases over the remaining term
of the funding proposal from 5% pa to % pa he was
reasonably satisﬁed that the scheme will satisfy the
funding standard as speciﬁed in Section 44 of the
Pensions Act, 1990, at the date of 1 March 019 speciﬁed
by the Pensions Board under Section 49() (a) of the Act
for the purpose of the existing funding proposal.
The scheme’s Solvency Position in accordance with the
aggregate cover for total Funding Standard liabilities as
at 9th February 01 was 90.5%.
13. Insurance against fraud
The credit union has insurance against fraud in
compliance with Section 47 of the Credit Union Act,
1997 (as amended) in the amount of €5,00,000.
14. Approval of ﬁnancial statements
The ﬁnancial statements were approved by the Board
and authorised for issue by the Chairperson of the Board
on 7th November 01.
ScHeduleS tO tHe financial StateMentS
fOr tHe Year ended 30th SepteMBer 2012
2012 €
2011 €
SCheDULe 1 - OtheR INteReSt INCOme AND SImILAR INCOme
Investment income
Bank interest
total per income and expenditure account
Analysed as follows:
Received at the balance sheet date
Receivable within 1 months of the balance sheet date
All other investment income
1,049,561
1,600,916
2,650,477
84,661
1,56,54
2,181,015
1,68,019
1,8,458
2,650,477
1,48,001
886,10
46,894
2,181,015
SCheDULe 2 - OtheR INCOme
2012 €
2011 €
Entrance fees
Commissions
Investment intermediary commission
Miscellaneous income
total per income and expenditure account
945
1,096
,660
0
55,921
1,08
,75
5,64
45
59,894
SCheDULe 3 - OtheR mANAGemeNt expeNSeS
2012 €
2011 €
Treasurer's honorarium
Rent and rates
Lighting and heating
Repairs, renewals and cleaning
Security
Printing and stationery
Postage and telephone
Trade Subscriptions
Promotion Youth and Scholarship Expenses
Chapter expenses
AGM and convention expenses
Travel and subsistence
Bank charges
Irish Credit Bureau Costs
Audit fee
General insurance
Pension
Other personnel costs
Legal and professional fees
Computer maintenance
Miscellaneous expenses
Aﬃliation fees
SPS contribution
Regulatory levy
total per income and expenditure account
6,000
5,57
18,7
14,90
,78
41,115
50,85
1,975
8,414
4,000
,86
,69
75,51
8,5
,196
9,45
99,765
6,047
10,094
68,190
8,1
54,116
17,87
838,136
5,000
8,76
19,054
16,870
0,78
4,66
44,94
1,415
98,99
9,00
,546
18,870
48,901
,686
7,79
91,71
,180
109,964
51,7
9,6
,59
56,560
10,590
822,116
1
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
depOSitS and inVeStMentS
SuperViSOrY cOMMittee repOrt 2012
2012 €
2011 €
Allied Irish Bank
5,195,660
10,47,16
Bank of Ireland
1,19,815
10,060,95
EBS
,685,687
6,848,105
Ulster Bank
,605,0
,408,40
14,905,78
8,68,01
Central Bank Reserve
904,781
1,97,169
Prescient Investment Managers (Ireland)
750,000
1,500,000
1,100,000
1,500,000
-
650,000
16,40,000
9,879,00
1,994,45
996,800
498,744
498,744
AIB 4% 19/0/15
1,998,000
1,998,000
Bank of Ireland 4% 8/01/015
,74,500
1,951,000
-
1,97,000
5,770,5
4,000,000
Irish Life & Permanent
Merril Lynch
Scottish Provident
Government Bonds ( Various rates apply)
I L & P 4% 10/0/15
AIB 5.65% 1/11/014
Bank of Ireland 6.75% 01
KBC
ILCU CTMF
170,9
73,045,639
65,996,397
This year has been another busy year for the Supervisory Committee.
Throughout 2012, as well as routine testing of areas such as Members’
Balances, Loan Applications and Investments, the Committee undertook a
review of the operational Risks facing Tralee Credit Union and how the
Management and Staﬀ are managing these risks.
Gene Boyd (Committee Chairman)
This work is ongoing and we have already reported to
the Board our ﬁndings in a number of areas. In these
reports, we have identiﬁed a number of areas which
the Board and Management may wish to review but
not any area of signiﬁcant concern. This outcome, I
believe, reﬂects well on the general management of
your credit union.
The routine testing followed the work schedule set out
in the Supervisory Committee Manual and included
checking of balances, procedures and transactions.
We conducted reviews of ﬁxed assets, loan and
membership applications and investments. All of our
work was reviewed at our monthly meetings which
were held throughout 01. Three meetings of the
Supervisory Committee were held with the Board
during the year to share our ﬁndings and discuss
general performance. These meetings were
constructive with good engagement and interaction
with the Board.
During the year, the Committee carried out a
members’accounts veriﬁcation exercise covering loan
and share balances. The sample chosen was 10% of
members accounts. The response rate was a little
under 18% which was slightly down on the 011
response rate. All responses received were successfully
reconciled to the records held at the credit union.
INveStmeNt COmmIttee: Grainne Foley-Joy, paddy Lange, tom Lawlor,
The Supervisory Committee attended a number of
training days during 01 and three of our Committee
successfully completed the Advanced Certiﬁcate in
Credit Union Practice (ACCUP) course which is a
recognised qualiﬁcation for credit union employees
and volunteers, developed by the Irish League of
Credit Unions and awarded by the University of Ulster.
Three Committee members also attended the AGM of
the National Supervisors’ Forum, keeping up to date
with developments across the wider credit union
movement.
Overall, resulting from our work, we would like to state
that we believe that the Board is maintaining good
control over costs and ensuring policies and
procedures are appropriate for the successful running
of the credit union. General economic diﬃculties
continue to impact on the performance of the credit
union but the problems which arise, particularly in the
areas of bad debts and a lower than desirable level of
lending, continue to be addressed through the credit
union’s resources and targeted actions.
Dick Carmody retires from the Supervisory Committee
at the AGM having served for three years. Dick brought
much good experience and considerable wisdom to
the Committee and his commitment and enthusiasm
will be very much missed. We would like to thank Dick
for his contribution and wish him well for the future.
We would also like to acknowledge the support
provided by the Board and the Management and Staﬀ
in helping us to carry out our work during 01. This
support is much appreciated and makes the
performance of our role less demanding.
Finally, at a time when the credit union movement in
Ireland is facing many challenges both from the
economic situation and the proposed new legislation,
we are conﬁdent that your credit union is well-placed
to successfully surmount these challenges.
martin moore, peter pierse, Katrina Rice and Fintan Ryan.
COmmIttee memBeRS: Gene Boyd (Chairman), Dick Carmody, John Naughten,
Catherine moylan and John harrington
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
credit cOMMittee repOrt
2012
type of Loan
As a Credit Committee we would encourage all members to
consider Tralee Credit Union as a place to borrow and do
business. we have a full time dedicated lending team within
the credit union who approve loans and are available to meet
members and discuss their lending needs. our doors are open,
so if you need a loan, use your credit union.
Anna Brosnan (Chairperson)
Reduced demand for loans amongst our
membership for 01 has presented a challenge
for Tralee Credit Union. Loans issued during the
year amounted to over €19m, while this is a fall
of 1% on 011 ﬁgures, it still represents a much
needed boost to our local economy. As you can
see from the table on your right, our loans
helped 6,945 members and their families. We
helped students to go to college, couples to get
married, members to do some home
renovations, change their cars, visit family and
friends abroad or manage their ﬁnances by
clearing other debts.
The Credit Committee meet on a weekly basis to
consider loan applications and undertake
reviews of loans that have been granted. At all
times our objective is to consider each loan on
its own merits and to give each application due
consideration. The primary factor we take into
consideration is the member’s ability to repay
the loan and it is vitally important that we have
a full ﬁnancial picture of our member’s ability to
repay. We try to balance our members overall
level of debt with immediate need for access to
credit and seek to ensure that all decisions are
made in the best interest of both our members
and that of Tralee Credit Union. Ongoing staﬀ
training, use of the Irish Credit Bureau and
regular reviews of lending policies and
procedures ensures that fair and prudent
lending decisions are being made in the best
interests of both our members and the credit
union.
Saver's Loan
Business
Car Related
Computer
Debt/Bank Loans/Bills
Education
Green
Home Loan
Holiday
MABS
Medical
Personal Finance
Secured Loan
Social Finance Loan
Special Occasion
Wedding
Other
total
2011
Number
of Loans
value of
Loans (€)
Number
of Loans
value of
Loans (€)
Increase
+/- (€)
Increase
+/- (%)
161
19
1,56
9
407
66
11
,197
550
0
160
189
6
0
581
185
1
1,000,466
71,76
5,751,015
4,09
900,67
1,484,5
48,591
5,19,44
760,54
0
71,779
197,756
1,4,14
0
46,686
878,6
117,568
51
118
1,69
9
444
60
11
,8
58
1
146
0
1
56
00
1
60,978
767,901
7,747,116
8,418
1,49,75
1,65,181
55,
5,797,85
818,179
,950
89,18
69,490
865,456
6,484
479,871
856,94
8,657
69,488
-46,65
-1,996,100
-4,109
-449,116
-167,99
-6,71
-60,941
-57,66
-,950
-17,59
-71,74
476,668
-6,484
-16,185
1,699
,911
64%
-6%
-5%
-17%
-50%
-11%
-14%
-1%
-8%
6,945
19,155,969
7,081
21,489,284
-2,333,314
-6%
-6%
6%
-%
%
9%
-12%
At the request of The Central Bank of Ireland, we
have had a full loan book review during 01.
The review expressed satisfaction with the
policies and procedures in place in relation to
approving loans and with the adequacy of the
provisions held in relation to Bad Debts.
Our thanks to our Members, Management, Staﬀ
and fellow Board Members for their input and
support during the year and we look forward to
a busy 01.
COmmIttee memBeRS: Anna Brosnan (Chairperson), mary O’Connell, peter pierse,
Brendan treacy and Grace moore.
this year local Members borrowed over €19 million
a badly needed Boost to the local economy
4
5
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
credit cOntrOl cOMMittee repOrt
The main focus of the Committee is to ensure that our members
repay their loans in accordance with their agreements in order to
protect your money, your savings.
This past year has once again been challenging for Credit Control
as we continue to operate in a weak economy and the high levels
of unemployment persist. However, against this backdrop the
Committee is pleased to report that the year has also seen a
number of positive results. These results are signiﬁcant and
encouraging, however, we do not intend to interpret them as cause
for complacency. In the year ahead we intend to remain prudent
and to work hard to further consolidate the achievements of this
year.
Cathal tyther (Chairman)
We continue to place a strong focus on a policy
of early intervention. This has proven very
successful with our percentage of performing
loans increasing from last year. We invest a huge
amount of time in communicating with
members in arrears. The vast majority of cases
are resolved following an initial contact from the
Credit Control Team. The Committee is aware
that there are members who ﬁnd themselves in
very diﬃcult circumstances. Our staﬀ are highly
trained and experienced in dealing with such
cases and we would encourage any member in
diﬃculty to contact us. A small number of
members refuse to communicate and to work
with us in ﬁnding a solution that allows them to
meet their loan obligations. In these cases, with
all other options exhausted, we will not hesitate
to initiate legal proceedings in order to recover
the money owed to our members.
6
We have introduced a facility that for the ﬁrst
time allows members to phone the Credit Union
and make a loan repayment via Debit Card. The
facility has proven popular with members who
have emigrated, allowing them to make
repayments from anywhere in the world. We are
conﬁdent that the introduction of online and
mobile banking will also prove beneﬁcial by
giving members greater convenience and
ﬂexibility in managing their accounts.
The value of loans charged oﬀ in the past year
remains unacceptably high, however, the ﬁgure
has stabalised and is broadly in line with last
year’s result. It has also been slightly oﬀset by a
50% increase in the value of our bad debts
recovered. This increase in recoveries was
achieved while making eﬃciencies and reducing
the costs of recovery and so is particularly
satisfying. All charged oﬀ loans are actively
pursued through the collections process as
normal. We have again increased our provision
for bad and doubtful debts for the year ahead.
The increase this year at €100,945 (011:
€971,545) with an additional €15,767 provision
transferred over from Tralee C.I.E. Credit Union
reﬂects the good progress being made in this
area. With continued adherence to our policies,
Tralee Credit Union will remain strong, secure
and well positioned to face whatever challenges
may lie ahead.
The Committee thank all of our members who
continue to meet their loan obligations, many of
whom are working through diﬃcult ﬁnancial
times. We also thank Marcella and her team for
their excellent performance and for approaching
their work with such patience and sensitivity.
the following are some of the key ﬁgures
related to Credit Control for the year:
Loans written oﬀ
2011/2012
2010/2011
€1,171,64
€1,100,1
Bad debt recovery
€11,601
€05,870
Bad debt provision
€,9,185
€,996,47
Additional Provision
€1,910,000
€1,600,000
Total Provision
€4,833,185
€4,596,473
We thank Brendan Treacy who retired from the
Committee during the year for his much valued
contribution and welcome Carmel Mulcahy to
the Committee.
If you are having diﬃculties with your loan
repayments, ACT NOW. Contact Credit Control
tel 066 712 2373 (Dial 2)
COmmIttee memBeRS: Cathal tyther (Chairman), tom Lawlor, Carmel mulcahy and
marcella herlihy (Credit Control Oﬃcer).
diddid you
know?
you know?
we now accept Laser/debit Cards by phone or at our Tralee and
Castleisland oﬃce to repay your loan.
If you have a loan, try and pay a bit extra every time you make a repayment.
This will reduce your loan interest, clear your loan quicker and give you
some breathing space if you do miss a payment.
7
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
YOutH cOMMittee repOrt
It’s been a year of great celebrations for the Youth Committee with
national winners in both the Irish League of Credit Unions Art
Competition and national Schools Quiz.
As Youth oﬃcer I would like to thank the directors, Management,
Staﬀ and Volunteers for all their support during the year to our youth
events, especially to orla o’Shea our Youth development worker.
I would like to say thank you to all the schools, parents, teachers
and youth groups for continuing to support our Youth services. we
look forward to another busy year ahead.
George Lowe (Youth Oﬃcer)
National Art Competition
Sarah Prendergast wins the 14 to 17 age category
Youth Union
€4,000 spent on youth projects
2012 has been another busy year for the Marketing and
development Committee with the main focus of promoting loans
to maintain our loan book, educating members on the credit union
ethos and in introducing and promoting new services.
As we embrace technology with our CU Banking services we are
conﬁdent that these everyday banking services will become just as
relevant to our members as our loans and savings.
we would like to thank the local media, all in Radio Kerry, The
Kerryman, Kerry’s eye, Tralee Advertiser, Tralee outlook and Sliabh
Luachra outlook for all the publicity throughout the year.
Alan Laide (Chairman)
Under 13s National Schools Quiz
Ardfert National School are crowned the Champions
Prizegiving Night
Congrats to all our Winners
COmmIttee memBeRS:
George Lowe, Youth Oﬃcer, Orla O’Shea, Youth Development Worker
Suzanne ennis, Marketing & Development Oﬃcer and erica paola Ortiz macias
8
Marketing and deVelOpMent
cOMMittee repOrt
We would like to thank Breda O’Dwyer, Patrick Flaherty and Vicky Kelliher who retired during
the year for their support and contribution and welcome my fellow newcomers, Jacintha and
Tina to the Committee. A special thank you to Breda O’Dwyer for such great service over the
years. Breda’s expertise and support will be greatly missed. To my colleagues on the
Marketing and Development Committee for their continued hard work especially to Suzanne
Ennis our Marketing and Development Oﬃcer. I would also like to thank Management and
Staﬀ who give such great service to our members every day. Thank You.
COmmIttee memBeRS:
Alan Laide (Chairman) Suzanne ennis (Marketing & Development Oﬃcer) Fintan Ryan,
mike Lynch, Jacintha eustace, paul Culloty and tina Newsome mcDonnell.
9
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
MeMBerSHip cOMMittee repOrt
tax treatMent Of diVidend
we are delighted to report that we continue to attract new members
with 1,850 new members joining during the year. our ‘active’
membership now stands at 29,068. In particular we extend a warm
welcome to the former members of Tralee C.I.e. Credit Union who
transferred to Tralee Credit Union during the year.
Members are responsible for their own tax aﬀairs. Income in the form of dividend and deposit
Interest is taxable income and the Board of directors strongly advise all our members to take
the time to consider the tax implications of this income using the information below.
Share Accounts - Two types of share account exist.
tom Lawlor (Chairman)
If a member does not have a transaction on their
account over a two year period then, for security
purposes, this account is then classed as a‘dormant’
account. A member will be asked for up to date
identiﬁcation when next making a transaction on a
dormant account. ,717 accounts were made
‘dormant’ during the year. Please note the rule
change relating to dormant accounts that will be
discussed at the A.G.M. (page 4).
As a credit union we work to ensure that our
services are relevant and cost eﬀective to you, our
members. We aim to provide a viable alternative
banking solution and welcome the addition of our
CU Banking services. We encourage all members to
take the time to be aware and use the services
currently available at Tralee Credit Union. We always
seek to ensure that the credit union ‘diﬀerence’
remains apparent, with ‘service to our members’
remaining as the cornerstone of what we do.
As a Committee we spent time each month
ensuring that all new membership applications
comply with the requirements of the Criminal
Justice Act 010 and that each new member is part
of our common bond. Our common bond is deﬁned
as people who work or live within the postal district
of Tralee or in any of the parishes of Castleisland,
Firies, Ballydesmond and Killeentierna. The
Criminal Justice Act 010 requires that all
membership applications are accompanied by
photo identiﬁcation (such as current passport or
memBeRShIp AS At 30th SeptemBeR 2012*
Age Breakdown
New born - 10 years
11 to 0 years
1 to 0 years
1 to 40 years
41 to 50 years
51 to 60 years
61 to 70 years
71 to 80 years
81 to 90 years
91 to 100 years
2012
1,743
2011
1,949
Diﬀ
-206
,60
5,050
5,68
4,87
4,160
,171
1,541
491
4
29,068
,649
5,670
6,077
5,00
4,67
,095
1,491
489
51
30,858
-89
-60
-94
-19
-07
76
50
-9
-1,790
driving licence), proof of address (most recent utility
bill) and proof of PPS number.
Nominations - have you updated your
Nomination Form?
Savings (up to a maximum of €,000) in a credit
union can be subject to a Nomination. This means
that on the death of the member, his/her savings
are distributed to the person(s) they have named
on their Nomination Form. As a Nomination
overrides a Will, we encourage members to
complete a Nomination and keep it up to date.
We extend a welcome to all of our new members
and ﬁnally thank you to both Management and
Staﬀ for their assistance throughout the year.
*3,717 accounts were made dormant during the year. We require updated photo identiﬁcation and proof of address to re-open a dormant account.
0
COmmIttee memBeRS: tom Lawlor (Chairman), mary O’Connell and helen Butler
(a) Regular Share Account: With a Regular
Share Account your Dividend is earned gross
of DIRT. You must declare to the Revenue
Commissioners your Dividend in your annual tax
return (even if you are exempt from tax). The tax
paid on this Dividend will depend on your
personal rate of tax: 0%, 0% or 41%.
(b) Special Share Account: Tralee Credit
Union will automatically deduct the DIRT tax
on your Dividend. You have no further tax
liability and you do not need to declare it in
your annual tax return. The current DIRT rate
for all Special Share Account Holders is 0%
regardless of your personal rate of tax.
The Board of Directors strongly recommend
that members change their account to a
‘Special Share Account’. Members may do so
by completing the form below and returning it
to Tralee Credit Union.
Special term Accounts
Special Term Account Holders are allowed to
earn a tax-free Dividend of €480.00. To qualify
for the tax benefits, funds must be left in the
Account for three years. (Terms and conditions
apply).
Special Term Accounts suit members who do
not require access to their savings in the next
few years.
DIRt exemptions
The Finance Act 007 introduced provisions for
DIRT free accounts for individuals who
• Are over 65 and whose income is below the
relevant exemption limit (currently €18,000
for an individual or €6,000 for a married
couple), or
• Are permanently incapacitated.
If you are exempt from paying tax please fill in
a DE1 Form in our offices.
requeSt tO HaVe/cHange tO a Special SHare accOunt
Name
Account No.
I, the undersigned authorise and request Tralee Credit Union Ltd. to change
my account to a Special Share Account.
Signed
Date
1
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
inSurance SerViceS - unique to credit unions
Our Insurance Services are designed to protect
you, our Members.
FRee Life Savings Insurance
Life Savings Insurance is unique to Credit
Unions and is free to members. It’s a Life Cover
on your savings as an additional incentive for
you to save regularly and maintain saving with
Tralee Credit Union. In the event of your death
your savings may attract cover up to €7,700
(terms and conditions apply).
Members who join Tralee Credit Union before
the age of 70 are eligible for Life Savings
Insurance. Members aged 55 years and over
attract cover on a sliding scale.
Other terms and conditions apply.
FRee Loan protection Insurance
Loan Protection Insurance is unique to Credit
Unions and is free to members. It’s an
insurance beneﬁt to cover outstanding loans
in the event of your death or permanent
disability. This means that eligible members
can borrow in full conﬁdence knowing that
their dependents will not have to repay any
outstanding loan balance (up to certain limits)
in the event of their death or permanent
disability. Other terms and conditions apply.
Death Beneﬁt Insurance
Death Beneﬁt Insurance is a member pay
insurance that provides basic Life Cover for
members to the value of €,000 to oﬀset
funeral expenses. Death Beneﬁt Insurance is
payable in the event of your death. The annual
premium is paid jointly between the member
and Tralee Credit Union. Members approve the
premium deduction at your Annual General
Meeting. Members’ contribution is currently
€4.50 per annum per member and is deducted
from your Dividend. If your Dividend doesn’t
cover you, you can pay the balance in our
oﬃces.
All members are eligible for Death Beneﬁt
Insurance provided that:
• An annual premium of €4.50 has been paid
by them (from their Dividend or as a
Direct Payment)
• They have been a member of Tralee Credit
Union for months prior to their death
• They joined Tralee Credit Union before the
age of 70
• They have savings of €00 at all times in
their account. (This does not apply to
members under 16 year of age).
For further information please contact our
oﬃces.
nOMinatiOnS and electiOnS
NOmINAtIONS AND eLeCtIONS:
Patrick Flaherty and Maurice o’Brien resigned during the year.
Jacintha eustace and Alan Laide were co-opted during the year to
ﬁll their vacancies and under Rule 67 retire and seek re-election.
In accordance with Rule 66, Tom Lawlor retires and being eligible
seeks re-election. Breda o’dwyer and Vicky Kelliher retire and do
not seek re-election. Under Rule 136 the nomination Committee
propose Grace Moore and Maurice o’Brien to ﬁll their vacancies.
SUpeRvISORy COmmIttee:
In accordance with Rule 81, Gene Boyd retires and being eligible
seeks re-election. dick Carmody retires and does not seek
re-election. Under Rule 136 the nominating Committee proposes
Philip o’Sullivan to ﬁll the vacancy.
AUDItORS:
Under Rule 153 Joan o’Sullivan & Co.
being eligible seeks re-election.
Any further nomination shall be in
writing, signed by the Proposer and
Seconder, with the consent of the
nominees who shall be over 18 years
of age (all but the Auditor must be
members of Tralee Credit Union
Ltd.) and must reach the Secretary
not later than 4pm Friday 30th
november 2012.
NOmINAtION FORm - DIReCtOR - ANNUAL GeNeRAL meetING 2012
We, the undersigned, nominate for Director of Tralee Credit Union Ltd.
Name of Nominee (Block Capitals): _________________________________________________________
Address: _______________________________________________________________________________
Signed (Proposer) ___________________________
Account No. _______________________
Signed (Seconder) __________________________
Account No. _______________________
Consent of Nominee: I, as a member, hereby agree to be nominated as a candidate for Director
on the Board of Directors and confirm that I am of full legal age.
Signed (Nominee) _____________________ Date ________________ Account No. ________________
NOmINAtION FORm - SUpeRvISORy COmmIttee - ANNUAL GeNeRAL meetING 2012
We, the undersigned, nominate for the Supervisory Committee of Tralee Credit Union Ltd.
Name of Nominee (Block Capitals): _________________________________________________________
Life Savings Insurance and Loan protection Insurance
Address: ______________________________________________________________________________
• 119 members died during the year. May they rest in peace.
• Insurance claims on their behalf amounted to €619,000.
• 9 members claimed Disability. Claims on their behalf amounted to €77,000.
Signed (Proposer) ___________________________
Account No. _______________________
Signed (Seconder) ___________________________
Account No. _______________________
Consent of Nominee: I, as a member, hereby agree to be nominated as a candidate for the
Supervisory Committee and confirm that I am of full legal age.
Death Beneﬁt Insurance of €2,000 per member
Signed (Nominee) _____________________ Date ________________ Account No. ________________
• Insurance claims on their behalf amounted to €8,000.
TRALEE CREDIT UNION LTD. | annual repOrt 2012
TRALEE CREDIT UNION LTD. | annual repOrt 2012
aMendMentS tO Standard ruleS ariSing frOM
tHe iriSH league Of credit uniOnS agM 2012
ReSOLUtION NO. 4
That this Annual General Meeting agrees to amend
Rule of the Standard Rules for Credit Unions
(Republic of Ireland) by the deletion of “when the
credit union has been unable to contact the
member for a period of three years” with “when
there has been no member initiated transaction on
the account for a period of three years” and
substitute the word “ordinary” for “registered”
where appearing in line so as to read as follows:
RULe 22. DORmANt ACCOUNtS
The credit union may deal with shares and deposit
accounts as hereinafter provided when there has
been no member initiated transaction on the
account for a period of three years and when no
reply has been received within thirty days from the
member to a notice sent, by ordinary post, to
him/her at his/her last known address, of intent by
the credit union to close the account(s). Such share
and deposit accounts shall then be transferred to
the reserve account. Dividends and interest shall
continue to be payable on such accounts.
2 - 4 eLeCtION pROCeDURe
. Nominations may be accepted from the ﬂoor in
accordance with Standard Rule 18.
. Elections to the Board of Directors, to the
Supervisory Committee and the position of Auditor
shall be by majority vote and by secret ballot.
4. A Ballot Paper for the election of the Board and
Supervisory Committee, where applicable, will be
distributed to each member at the AGM.
5 - 10 mOtIONS
5. All motions from the ﬂoor of the AGM must be
proposed and seconded by members present at
4
11 - 16 mISCeLLANeOUS
11. The Chairman of the Board of Directors shall be
the Chairman of any general meeting, except
where he/she is not available, in which case it shall
be the Vice-Chairman, except where he/she is not
available, in which case the Board shall decide
amongst themselves who shall act as Chairman of
any general meeting.
1. The Chairman may at his/her discretion, extend
the privilege of the ﬂoor to any person who is not
a member.
Standing OrderS
1. vOtING
Each member shall be entitled to one vote
irrespective of his/her shareholding, in accordance
with Standard Rule 140.
10. The Chairman shall have the absolute right to
decide at any time when a motion has been
sufficiently discussed and may put the motion to
the meeting giving the proposer the right of reply
before doing so.
the AGM and moved by the proposer. If the
proposer is absent when the motion is called, the
motion shall be deemed to have failed.
6. A proposer of a motion may speak for such
period as shall be at the discretion of the Chairman
of the meeting and shall have the right of reply
before the motion is put to the meeting for a vote.
7. In exercising his/her right of reply, a proposer
may not introduce new material.
8. The seconder of a motion shall have such time
as shall be allowed by the Chairman to second the
motion.
9. Members are entitled to speak on any such
motion and must do so through the Chair. All
speakers to any motion shall have such time as
shall be at the discretion of the Chairman.
1. Matters not covered by the Agenda may be
introduced under "Other Business" at the discretion
of the Chairman.
14. The Chairman’s decision on any matter relating
to these Standing Orders or interpretation of same
shall be ﬁnal.
15. In accordance with Standard Rule 1 (1) no
member shall have more than one vote on each
question at any general meeting of the credit
union or any adjournment thereof irrespective of
his/her shareholding or the number of accounts
in his/her name in the credit union provided,
however, that except in voting at elections, the
presiding member shall have a second or casting
vote in the event of equality of voting. Voting by
proxy shall be allowed only when a member
other than a natural person votes through a
representative, who is a member of the group,
duly authorised in writing for that purpose and
accepted as such by the board of directors. Refer
to Standard Rule 19 also re election procedure.
16. Any matter to be decided upon by vote at the
AGM shall, unless otherwise expressly provided for
by law or the rules, be decided upon by simple
majority.
17. SUSpeNSION OF StANDING ORDeRS
Any one of these Orders or all of these Standing
Orders may be suspended on a motion to this
effect receiving a two-thirds majority of those
present and entitled to vote.
18. ALteRAtION OF StANDING ORDeRS
Standing Orders may be amended or altered at a
general meeting and only if a motion to this eﬀect
has received a two-thirds majority of those present
and voting.
19. ADJOURNmeNtS
Adjournments of the AGM shall take place only in
accordance with Standard Rule 1.
CU Banking
Tralee
CREDIT UNION LTD.
New
ACCESS ‘Current’ Account
ATM
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CU Anywhere Mobile App
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45 - 47 Ashe Street Tralee Co. Kerry
Tel : 066 712 2373 Fax : 066 712 8551
67 Main Street Castleisland Co. Kerry
Tel : 066 714 1749 Fax : 066 714 1121
Phone a Loan : 1890 428 428 | email : info@traleecu.ie | www.traleecu.ie
Tralee Credit Union Sort Code: 99 10 16