BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED | NON-CONSOLIDATED ANNUAL REPORT 2020 14 in the recent efforts to transition the sector to credit and debit card services for members. Work on this project has been ongoing and is anticipated to conclude during the current fiscal. Similarly, access to Automated Clearing House (ACH) services is also in the pipeline. These types of projects underscore the importance and relevance of CAPITA in the transformation of the movement and the long-term value of CAPITA to the sector and Group. CONSOLIDATED PERFORMANCE The consolidated position of the group as at the reporting period, shows that total assets recorded at $1.7 million, with growth in key areas, such as loans and advances and cash resources through growth in deposits and savings. REGULATORY DISCUSSIONS During the financial year under review, we met with the regulators at board and management level and have committed to frequent and open discussions as we move forward. SPECIAL PROJECTS Ever cognizant of the fact that we have outgrown our existing Upper Broad Street premises we continue to be focused on bringing our Lower Broad Street property to a state where it is fit for use. During the period under review, remedial work on the property commenced as the gutting of the building and the building out of electrical and engineering specifications to bring the property up to code were completed. We are currently at the stage where the architectural drawings and designs are being completed, in preparation for issuance of tenders for the works to be done. While we had anticipated being further along at this stage, various regulatory and planning requirements, construction sector issues and COVID-19 pandemic impacts, slowed progress. We however remain focused on completion and in a manner that is in keeping with the highest standards of project management. We wish to place on record, that the work which the Supervisory Committee undertook in reviewing our Mile & A Quarter buildout has been taken very seriously and we are ensuring that the missteps highlighted are not repeated. We acknowledge and share their concerns in ensuring our investments and members’ assets are protected. With the imminent repurposing of CarIFS in the financial services landscape, the credit union had to replace plans to launch a credit card with plans to transition its debit cards from the CarIFs network to the MasterCard network. Extensive work is currently being done on the project to ensure members continue to have fully functional debit access when CarIFS as we know it, disappears. In addition, the use of the MasterCard platform will bring about additional value-added through online and other extended capabilities. While there have been some untimely delays due to circumstances outside of our control, we remain committed to ensuring the project is finalized during this fiscal year. As we approached the end of the reporting period, key technological changes were required in the way we do business to ensure business could continue despite the COVID-19 pandemic. We were able to successfully transition to remote work for the staff who could work from home, while maintaining availability of our human and electronic channels, to ensure that you our members were able to access your funds and provide expected service levels. We are happy with the way staff, management and you the members were able to overcome initial anxieties and adhere to the enforced protocols to ensure continuity of service while maintaining a safe work and member environment. REGULATORY REQUIREMENTS As a small island developing state, Barbados continues to be bound to international agreements and statutes which come with various rules and regulations. These include mandatory Anti-Money Laundering/Countering Financing for Terrorism (AML/CFT), Know Your Customer (KYC) and regulatory reporting requirements. Additionally, a key requirement in new technological services such as credit bureau services, is the agreement to data sharing and privacy agreements and regulations and the maintenance of up to date customer information that is refreshed on a periodic basis. This is the new reality of the sector in which we operate as the implementation of these types of protectionist measures to weed out the bad players and ensure the safety of members’ deposits and the credit union movement in general will continue. A review conducted during the reporting period revealed that we have significant work to do in getting members to assist us in keeping their records up to date as required by law. We need more of you to provide us with updated and current information to ensure that we are compliant with the regulations. We are asking for your assistance in this regard. CORPORATE GOVERNANCE The Credit Union has grown and expanded over the years from a single business entity into a financial services group which includes – BPW Financial Holdings Inc., CAPITA Financial Services Inc, and CAPITA Insurance Brokers Inc. Not only are we the largest credit union in Barbados, we are also the largest indigenous financial institution. Given our size and scope and the level of importance placed on us by the regulators, it is important to ensure the existing governance framework is in line with international best standards for the financial services industry. As we continue to grow by increasing service offerings and diversifying into different areas throughout Barbados and the wider Caribbean, it is important we ensure the necessary controls to protect your investments with us are maintained. We can no longer operate and do business the same way, and to this end we have engaged PwC to conduct an assessment and provide guidance on enhancement of our governance framework. Work on this project is anticipated to be completed during the current fiscal. CORPORATE REDESIGN Work on the corporate redesignwas delayed due to the COVID-19 pandemic. We are pleased to state that we have since restarted and have met and had cordial discussions with the Barbados Workers Union, the employees’ representative, on the matter and we continue to partner on moving it forward to completion. We assure you that your previous concerns were heard and that the intent and purpose of this exercise is not to dislocate or negate any of our essential workers, but rather to ensure that our various structures are properly built out to support our continued growth, and to provide efficient and effective delivery of services to you our members, now and into the future. BOARD OF DIRECTORS REPORT (Continued)
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