Non-Consolidated Annual Report 2016

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2016 15 of 35.4 percent over prior year. Positive growth was also recorded in total loans and advances which increased from $160 million to $183.4 million (15.1percent). Client deposits moved from $160 million to $191 million or 19.1 percent. The insurance division recorded yet another encouraging year, yielding net commissions of $1 million, surpassing the previous year’s performance by 35.9 percent. On September 11, 2014 this division commenced operations as a separate brokerage entity, rebranded as CAPITA Insurance Brokers Inc. (CIB). Essentially, the output from our subsidiaries is highly satisfactory in consideration of the prevailing economic climate. CORPORATE GOVERNANCE Corporategovernance isasystemthatdefines the relationships between an organization’s elected officials, management team, members, partners and other stakeholders. It provides structures of authority for decision making to ensure not only compliance with regulatory requirements and guidelines, but also with sound business and financial practices. The established governance model leverages international best practices by integrating individual governance of integrity, competence and commitment; with internal governance of continuity, balance and accountability; and external governance of transparency, compliance and public accountability. CODE OF CONDUCT The Code of Conduct establishes the rules governing the ethical and lawful conduct of the Credit Union’s elected officials, officers, employees and volunteers. This has to be evident in all business practices, so as to protect the organization’s reputation and preserve community trust. COMMITTEE OPERATIONS The Committee met five (5) times during the year to undertake a number of activities including: • Creation of an agenda schedule for activity tracking • Review Corporate Governance Committee mandate, Charter and handbook • Review Code of Ethics activities • Review of the Risk Oversight Committee Charter • Review of the Finance and Business Strategy Committee Charter • Review of Board competencies and its balance of expertise • Ensuring Director performance evaluations are conducted BOARD OF DIRECTORS REPORT (continued) FUTURE DIRECTION While our focus in these early stages of development of the corporate governance architecture has been specifically on the operations of the Credit Union, we do recognize the need to expand our scope to include its subsidiary and affiliated companies. It is important that we work together with our many partners to ensure that effective governance is incorporated into all aspects of the organization for the benefit of all stakeholders. OUTLOOK 2016 - 2017 Based on the reports of the Central Bank of Barbados (CBB), the Barbados economy grew by 0.5% in 2015, less than 1.5% as previously predicted. Consequently, the unemployment levels remained elevated. This factor negatively impacted the ability of members to service loans as agreed. The Central Bank of Barbados projections for 2016 expect increased activity in the tourism and construction sectors which will provide stimulus to the wholesale, retail and business services sectors. We anticipate that this projected uptick in economic activities will result in reduced unemployment levels among our membership. CONDOLENCES We remember with fondness the former Chairman of our subsidiary – Capital Financial Services Inc., Bro. Carlos Holder and in the process convey our profound sadness to his relatives and friends at his passing. He was dedicated and committed to the success of the organization at the time of his passing. To all our members, staff and the wider Credit Union family, including those at our subsidiary and affiliated companies, who lost love ones during the year under review, we extend our deepest sympathy. ACKNOWLEDGEMENT The successes of the 2016 fiscal year could not have been realized without the effort of our members, staff, elected committees, sub-committees and our hardworking, dedicated departmental representatives. To each of you, both collectively and individually, we extend profound gratitude. The Board takes this opportunity to place on record, its whole hearted gratitude for the invaluable support of retiring Directors Bro. Trevor Colucci, Sis. Kerry-Ann King and Sis. Carole Layne-Browne, who through their various competencies and professional experiences, provided unique, diverse and treasured contributions to the Board of Directors. The same sentiments are conveyed to our Sis. Julie Corbin, who replaced former director Sis. Paula Byer, who retired during the year under review.