Consolidated Annual Report 2023

25 CONSOLIDATED FINANCIAL STATEMENTS 2023 networks and applications. This long-standing approach is a critical part of our technological defence to better withstand cyberattacks and has proven to be effective and resilient to date. In addition to these tests we also continue to review and upgrade our network security at both the hardware and software levels, while investing in our cybersecurity systems, frameworks and policies to stay one step ahead. Additionally, as most attacks have been shown to occur due to human error, employees are trained to be aware of, and assist with the prevention and mitigation of attacks that may seek to take advantage of internal weaknesses. This level of staff awareness is achieved through ongoing mandatory security awareness training and testing across the Group. As members, you too play a critical part in ensuring the safety and soundness of our technology environment and we encourage you to also take your awareness of security best practices and fraud mitigation as seriously as we do. We remind you that our online banking system allows you to set-up alerts that can prompt you regarding transaction activity and changes in balances on your accounts. This can be a useful tool to protect you against unauthorised access while jointly ensuring we maintain a secure environment. Updates to Key Matters of Significance Lower Broad Street Building We are pleased to advise that with all of the precursory objectives, i.e. recruitment of a qualified and experienced project management professional, the updating and approval of the procurement policies and manual, and the recruitment of a dedicated procurement officer having been achieved, the Lower Broad Street building project has been restarted. We are currently in the final stages of selecting the successful candidates for professional architectural and quantity surveying services under the oversight of our Internal Audit Department and it is anticipated that the selection and on-boarding process will be completed during the second quarter of the next reporting period. This will be followed by the contracting of the design consultants to start the process of finalising designs to be used in the application for planning approval, and to be put out to public tender for provision of construction services. The build-out of this new location will be done in a manner that aligns with the Credit Union’s future requirements and strategic visioning as we reposition ourselves to bring about future growth. Debit Card There continues to be a consistent increase in the number of cards activated and used, and the number of transactions processed since implementation of the MasterCard debit card as approximately 63,000 cards have been activated and a total of approximately 2 million transactions valued at Barbados $225 million have been processed. Total Activated Cards 63,742 US Transactions $ $ 12,321,838 83 US Transactions # 240,116 BDS Transactions $ $ 201,781,67773 BDS Transactions # 1,757,419 Total Transactions $ 1,997,535 Corporate Governance One of the Board’s primary objectives continues to be the improvement of, and adherence to sound corporate governance principles. The reporting period saw noteworthy progress being made towards achieving this objective even as we faced unique challenges and circumstances coming out of the last AGM that placed the Credit Union in the full glare of the public spotlight, challenged the credibility of our brand and introduced significant reputational and operational risks into our environment. Substantial time and efforts were required to resolve the issues placed in the public domain as wide national discourse overtook what should have been focused membership discussions. These circumstances and events not only impacted the way we operated but, by nature of regulatory involvement and their related actions, had wider implications for the sector as a whole as they highlighted the impact and importance of the Barbados Public Workers’ Group of Companies within the wider economic and societal setting. These recent past experiences strengthened our resolve to ensure that the responsibilities imposed on us as a systemically important financial institution (SIFI), are effectively performed, specifically the responsibility of taking the actions required to ensure the financial soundness and stability of the Group, while simultaneously ensuring that those actions do not negatively impact the stability and safety of the broader financial system. PwC Corporate Governance Review Project Since our last update and following discussions with members of the Board, Supervisory and Credit Committees, the final report with recommendations regarding the enhancement of our governance framework was received from PwC. In keeping with the agreed deliverables and scope of work, the report identifies existing gaps and weaknesses along with supporting recommendations to achieve the desired future state. The PwC led evaluation was a comprehensive one that took immediate, medium and long-term goals into account. During the course of the review key areas of focus were assessed across ten (10) specific themes and these guided PwC’s questionnaires,

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