Consolidated Annual Report 2018

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | CONSOLIDATED ANNUAL REPORT 2018 65 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Consolidated Financial Statements For the year ended March 31, 2018 (Expressed in Barbados dollars) 50 21. Statutory Reserves 2018 2017 Statutory reserve (i) $ 121,093,797 107,687,256 $ 121,093,797 107,687,256 (i) Statutory reserve The movement in this reserve during the year is as follows: 2018 2017 Balance, beginning of year $ 107,687,256 97,657,847 Transfers to reserve – statutory * 6,118,216 5,557,892 Transfer to reserve – statutory ** 84,253 67,451 Transfers to reserve – voluntary 7,173,652 4,371,806 121,063,377 107,654,996 Entrance fees 30,420 32,260 Balance, end of year $ 121,093,797 107,687,256 * Section 197(2) of the Co-operative Societies (Amendment) Act 2007-39 requires for the Credit Union that an appropriation equivalent to the greater of one half of one per cent (0.5%) of total assets or twenty-five per cent (25%) of net surplus shall be credited to the reserve fund annually until capital equals ten per cent (10%) of total assets. The Registrar of Co-operatives may increase the appropriation amount to forty per cent (40%) of net surplus or one per cent (1%) of total assets in certain circumstances. ** Under the provisions of the Financial Institutions Act, a subsidiary is required to transfer a minimum of 15% of its after tax profits to a reserve fund until such fund equals the share capital. A transfer of $84,253 was required during 2018 (2017 - $67,451).