Annual Report 2024 Head Office: McDermott Street, Gorey, Co. Wexford
Loan Line : 0818 345 925 Reception: 053 94 88700
www.alturacu.ie info@alturacu.ie
ANNUAL REPORTS AND SECTION 130 PACK IN RELATION TO THE PROPOSED TRANSFER OF ENGAGEMENTS OF BALTINGLASS CREDIT UNION LTD TO ALTURA CREDIT UNION LTD.
VIRTUAL ANNUAL GENERAL MEETING The 2024 Virtual Annual General Meeting of the Members of Altura Credit Union Limited will take place via Zoom Webinar Wednesday 29th January 2025 @ 7pm
VIRTUAL ANNUAL GENERAL MEETING The 2024 Virtual Annual General Meeting of the Members of Baltinglass Credit Union Limited will take place via Zoom Webinar Wednesday 29th January 2025 @ 7pm
Registration is necessary to attend. Altura Credit Union members see page 3 Baltinglass Credit Union members see page 37
Annual Report 2024 Weaver Square, Baltinglass Co. Wicklow
Phone: 059 6481071 www.baltinglasscu.ie info@baltinglasscu.ie
INTRODUCTION & CONTENTS
Notice of Annual General Meetings and proposed Transfer of Engagements We are delighted to present to you, the members of Altura Credit Union Limited and Baltinglass Credit Union Limited, the Annual Reports for both Credit Unions and information in relation to the proposed Transfer of Engagements from Baltinglass Credit Union Limited to Altura Credit Union Limited. You will find further details and information in relation to the proposed Transfer of Engagements in the third section of the booklet (Pages 67 to 8 3 ). To summarise, this proposal, if approved by the membership, will bring the two Credit Unions together, to form a Credit Union of over 53,000 members and over €248 million in assets. This merger arises from the belief of the Board of Directors of our Credit Unions that our members can be better served together, and we consider it an ideal opportunity to grow and develop our services in our local communities, from an increased position of strength. This proposed strategic T ransfer of E ngagements will also better position the combined Credit Union to meet the ever- increasing regulatory requirements. The Boards of Directors of both Credit Unions are confident that the enlarged Credit Union will further enhance our position as the local, trusted, respected and preferred financial institution for all our members.
Thomas Finn, Chairperson, Altura Credit Union Limited. Pamela O’Toole, Chairperson, Baltinglass Credit Union Limited.
Notice is hereby given that the 2024 Virtual Annual General Meeting of the members of Altura Credit Union Ltd will take place over Zoom Webinar on Wednesday 29th January 2025 @ 7pm. Notice is hereby given that the 2024 Virtual Annual General Meeting of the members of Baltinglass Credit Union Ltd will take place over Zoom Webinar on Wednesday 29th January 2025 @ 7pm.
PAGE
CONTENTS Altura Credit Union Annual Report Baltinglass Credit Union Annual Report
2
37 67
Proposed Transfer of Engagement Section 130 Notice
1
Contents of Altura Credit Union Ltd - Annual Report
Contents of Altura Credit Union Ltd - Annual Report AGM Notice & Registration Information Directors & Other Information Order of Business & Elections Motions Directors’ Report Directors’ Responsibilities Statement Board Oversight Committee’s Responsibilities Statement Independent Auditor’s Report Income and Expenditure Account Balance Sheet Statement of Changes in Reserves Cash Flow Statement Notes to the Financial Statements Schedule to the income and expenditure account
Page 3
5 6 7 8 8 9 4
12 13 14 15 16 33
Information not forming part of the audited financial statements
34 35
Car Draw Account Unaudited Management Accounts as at 31/10/2024
2
NOTICE OF ANNUAL GENERAL MEETING 2024
HOW TO REGISTER Notice is hereby given that the 2024 Virtual Annual General Meeting of the members of Altura Credit Union Limited will take place via Zoom Webinar on Wednesday 29th January 2025 @ 7.00pm. Members wishing to attend the Virtual AGM need to register in order to receive an individual invitation to join. You can register by: (i)emailing agm@alturacu.ie (i) scanning the QR Code in your letter on a smart phone or, (ii) by clicking on the registration link in your email - both options will bring you directly to our registration form, on our website. Alternatively, you can register by visiting www.alturacu.ie and following the instructions. Registration to include the following: Member Name, Member Number & Member's E-mail address. ALL MEMBERS ARE INVITED TO ATTEND Virtual Annual General Meeting on Zoom Wednesday 29th January2025 @ 7.00pm This Annual Report booklet can also be accessed online at www.alturacu.ie. Additional copies are also available in any of our branches, or on request. A link to the AGM Zoom Webinar will be forwarded to the email address you provided at registration, prior to the meeting. Confirmation emails are sent to include the e-booklet of the annual reports including also the Section 130 information pack on the proposed Transfer of Engagements of Baltinglass Credit Union Ltd. To Altura Credit Union Ltd. Please note, only one invite can be sent to any email address. Everyone registering must use their own individual email address. Please Note: Registration must be submitted no later than 4pm on Monday 27th January 2025 THE FOLLOWING INFORMATION IS PERTINENT TO THIS NOTICE • Altura Credit Union will be using Zoom Webinar as the electronic platform for the meeting. • We invite members to register for our virtual AGM by emailing agm@alturacu.ie, or by completing the registration form on ww.alturacu.ie (as outlined above). • The information required to request an invitation is your name, member number and email address. The Credit Union will validate members’ details prior to issuing invitations. • Please note, registration for the AGM will close at 4pm on Monday 27th January 2025 to allow us sufficient time to validate all registrations. • All non-presenting participants will be muted and have their cameras switched off to allow the smooth running of the meeting. However, you can type a question to the host by clicking on the “Q&A” button on the bottom of the screen. • Elections for the Board of Directors, Board Oversight Committee, Auditor, Proposed Special Resolution under Section 130 Credit Union Act 1997 and any Motions will take place. Voting will be conducted by way of online poll and each member will be asked to vote Yes/No (or by choosing candidates for vacancies) electronically for each of the above, when instructed by the Chairperson. The votes will be tallied electronically verified and recorded by the meeting Secretary & Auditor. • The AGM meeting will be recorded for minute-taking purposes. Members who register for the meeting will agree to the recording of the meeting and their participation in it, by registering for same.
3
DIRECTORS AND OTHER INFORMATION
Altura Credit Union Limited
EXECUTIVE DIRECTORS:
President: Vice President: Secretary: Asst.Secretary:
Thomas Finn Thomas Fitzpatrick Leanne Brennan Imelda Purcell
DIRECTORS
Roisin Mulligan Jim Kavanagh Mary Hearne (resigned 30/11/23; re- appointed 25/07/24) Joe Dixon (appointed 13/12/23; resigned 25/06/24)
Enda O'Connor Patrick McDonagh (appointed 13/12/23)
Kathryn Keogh (resigned 30.11.23)
OVERSIGHT COMMITTEE:
Chairperson:
Mary Quinn Michael Kelly
Kathryn Keogh (appointed 13/12/23) Joe Dixon (resigned 30/11/23)
STAFF During 2023/2024 CHIEF EXECUTIVE OFFICER: HEAD OF FINANCE: HEAD OF OPERATIONS: HEAD OF CREDIT: HEAD OF CREDIT CONTROL: HEAD OF ICT: HEAD OF BUSINESS DEVELOPMENT: HEAD OF RISK & COMPLIANCE: FACILITIES MANAGER: COMPLIANCE ADMIN:
Barry Monaghan Anne Roche Fionnuala Doyle Rebecca Donnelly Roisin Monaghan Pat Kavanagh Tom Brennan Mandy Cousins Tom Fortune Geraldine Sheehan
STAFF During 2023/2024
Marie Nolan Aisling O’Brien Edel O’Brien Lisa O’Connor Vivienne O’Leary Roseanna O'Sullivan Gemma Purdy Michelle Roche Lisa Ryan Anne Sheridan Elizabeth Sheridan Jenny Swords Marguerite Townsend Fiona Vickers
Emma Gibney Breda Goland Zoe Hand Breen Linda Hempenstall Ciara Hughes Joan Hughes Zuzanna Jacubowicz Caroline Kavanagh Geraldine Kelly Maria Kelly Lisa Kennedy Kerrie Kenny Jenny Kerwin Lina Lankutiene
Dina Allegrini Susan Baldwin Margaret Brennan Mary Butler Edel Byrne Ayasha Coates Sadhbh Corcoran Noeleen Cullen Paul Davies Jennifer Deacon Jack Doran Valentina Farris Nicola Finn Anne Fitzgerald Carla Gaule
Anita Louth Jennifer McAuley Aidan Mackey Mary Mackey Bernadette McCarthy Tina McClure Emma McLoughlin Joanna Migdalska Sandra Moules Elizabeth Murphy Laura Murphy Denise Murray Roisin Noctor Anne Marie Nolan
Registered Office and Business Address
McDermott Street Gorey Co. Wexford Y25 XV05
Auditors
Xeinadin Audit Ireland Limited Chartered Accountants & Statutory Auditors Sinnottstown Business Park, Drinagh Wexford
Bankers
Allied Irish Bank Main Street Gorey Co. Wexford
Bank of Ireland Main Street Gorey Co. Wexford
Intesa Sanpaulo S.P.A. Via Langhirano 1 - Pal.a 43125 Parma (PR) Italy
4
ANNUAL GENERAL MEETING
Virtual Annual General Meeting 2024-Wednesday 29 th January 2025 at 7pm R member number b egister online at www y 4pm on Monday 25th Januar .alturacu.ie or email agm@alturacu.ie with y y 2025 our name, email address and ORDER OF BUSINESS
1. Acceptance of Proxies (if any) by the Board of Directors 2. Ascertainment of Quorum (10% or 30 voting members) 3. Adoption of Standing Orders 4. Minutes of last AGM 5. Presidents’ Address 6. Report of Directors 7. Financial Report including Auditors Report & consideration of accounts. 8. Declaration of Dividend and Interest Rebate 9. Motion/Rule Changes (if applicable) 10. Report of the Head of Business Development & Marketing 11. Report of the Credit Committee 12. Report of the Risk & Audit Committee 13. Report of the Credit Control Committee 14. Report of the Membership Committee 15. Report of the Board Oversight Committee 16. Report of the Nominations Committee 17. Appointment of Tellers 18. Election of Auditor 19. Election to fill the vacancies on the Board Oversight Committee 20. Election to fill the vacancies on the Board of Directors 21. Proposed Special Resolution under Section 130 Credit Union Act 1997 22. Other Reports – Head of ICT/ Chief Executive Officer- Credit Union Update 23. Announcement of Election Results 24. Any other Business 25. Close/Adjournment of Meeting
Leanne Brennan Honorary Secretary
NOMINATIONS The Directors wish to draw attention to the following: ● There is one vacancy for Auditor. ● There is one vacancy on the Board Oversight Committee ● There are four vacancies on the Board of Directors.
If You Are Interested In Volunteering
Nomination Packs are available on an ongoing basis at the Credit Union counter, with expressions of interest also available to be made online via our website. You can also email nominations@alturacu.ie with queries on how to submit an expression of interest. Due to legislative changes, nominations cannot be accepted from the floor/those in attendance at the AGM. Each member holding one fully paid-up share and aged 16 years shall have one vote.
5
MOTION/RULE CHANGES
MOTION/RULE CHANGES
AGM Rule Change 2024 The Standard Rules for Credit Union were updated by Board resolution during this year to reflect the Credit Union Amendment Act (2023), the Assisted Decision-Making Capacity Act and to reflect gender neutral language throughout. No rule changes require member vote in this Financial Year. Motion That this AGM approves that each Member pays an Affiliation Fee/Savings Protection Contribution of €2. Such fee to be deducted from Members shares.
NOTICE TO ALL MEMBERS Keeping Your Details Up To Date For Altura Credit Union to remain compliant under the Criminal Justice Act 2010, Section 33 and Sectoral Guidelines 2013, we would like members to note that if you have not already done so, you must provide proof of your identity e.g. Passport or Dirvers Licence and recent proof of address, e.g. Utility Bill, Bank Statement etc. You are also expected to update Altura Credit Union with your Tax Identification Number (TIN) if your residency changes. Please also note that if your PPSN is not already verified and on file, you will be required to provide this as part of a loan application.
6
DIRECTOR’S REPORT
Altura Credit Union Limited Director's Report for the year ended 30 September 2024 The directors present their report and the audited financial statements for the year ended 30 September 2024. Results, Dividend and Appropriation of Surplus The income and expenditure account as set out on page 1 2 shows a surplus for the year of €2,386,838 compared with a surplus in the previous year of €1,805,016. The current year surplus includes a reversal of an impairment of €15,950 (2023: €143,754) on the Credit Union's premises at McDermott Street, Gorey, Co. Wexford. The directors are recommending a dividend of 0.3% costing €435,987 and they are also proposing a rebate of 3.0% on interest paid on members’ loans, amounting to €91,857. In addition, they propose to pay deposit interest rates of 0.3% on deposits held during 2024 costing €1,602. The directors have made a transfer of €1,000,000 (2023: Nil) to the Regulatory Reserve in the current year as set out in the Statement of Changes in Reserves on page 14 of the accounts. Principal Risks and Uncertainties The principal risks & uncertainties arising from Altura Credit Union’s activities are set out in note 22 of the attached accounts. Statement of Directors’ and Board Oversight Committee’s Responsibilities The statement of directors’ responsibilities and board oversight committee’s responsibilities is set out on page 8 of the booklet. Accounting Records The directors believe that they comply with the requirements of section 108 of the Credit Union Act 1997, as amended with regard to books of account by employing accounting personnel with appropriate expertise and by providing adequate resources to the financial function. The books of account of the Credit Union are maintained at the Credit Union's premises at McDermott Street, Gorey, Co. Wexford. Health & Safety The wellbeing of the Credit Union's staff is safeguarded through adherence to health and safety standards and we are satisfied that these have been improved and continued to operate satisfactorily during the year. In accordance with the Safety, Health & Welfare at Work Act, the Credit Union's policy and procedures have been reviewed and a comprehensive safety statement has been prepared. Post Balance Sheet Events The post balance sheet events arising in Altura Credit Union are set out in note 27 of the attached accounts. Auditors Xeinadin Audit Ireland Ltd (Chartered Accountants), formerly Sheil Kinnear Ltd, were appointed auditors by the directors to fill the casual vacancy and they have expressed their willingness to continue in office in accordance with Section 115 of the Credit Union Act 1997, as amended .
Signed on behalf of the Board of Directors by: President Thomas Finn Secretary Leanne Brennan Date: 7 th November 2024
7
DIRECTORS AND BOARDOVERSIGHT COMMITTEE RESPONSIBILITIES
Altura Credit Union Limited STATEMENT OF DIRECTORS’ AND BOARD OVERSIGHT COMMITTEE’S RESPONSIBILITIES for the year ended 30 September 2024 STATEMENT OF DIRECTORS' RESPONSIBILITIES 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 year. In preparing these 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; and 8 ● prepare the financial statements on the going concern basis unless it is inappropriate to presume that the credit union will continue in business. 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 to enable them to ensure that the financial statements are prepared in accordance with applicable Irish law and Generally Accepted Accounting Practice in Ireland, including the standards issued by the Financial Reporting Council, and in particular FRS102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. They are 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. Approved by the Board of Directors and signed on its behalf by:
Member of the Board of Directors
Thomas Finn
Member of the Board of Directors
Leanne Brennan 7 th November 2024
Date:
Statement of Board Oversight Committee’s Responsibilities The Credit Union Act 1997, as amended requires the appointment of a Board Oversight Committee to assess whether the Board of Directors has operated in accordance with Part IV, Part IV (a) and any regulations made for the purposes of Part IV or Part IV (a) of the Credit Union Act 1997, as amended and any other matter prescribed by the Central Bank in respect of which they are to have regard in relation to the Board. On behalf of the Board Oversight Committee: Chairperson of the Board Oversight Committee: Date: Mary Quinn 7 th November 2024
8
INDEPENDENT AUDITOR'S REPORT
INDEPENDENT AUDITOR'S REPORT to the Members of Altura Credit Union Limited Report on the audit of the financial statements Opinion
We have audited the financial statements of Altura Credit Union Limited for the year ended 30th September 2024, which comprise the Income and Expenditure Account, Balance Sheet, Statement of Changes in Reserves and Cash flow Statement and notes to the financial statements, including the summary of significant accounting policies set out in note 2. The financial reporting framework that has been applied in their preparation is Irish Law and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. In our opinion the financial statements: ● give a true and fair view of the state of the Credit Union’s affairs as at 30 September 2024 and of its income and expenditure and cash flows for the year then ended; ● have been properly prepared in accordance with FRS 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland''; and ● have been properly prepared in accordance with the requirements of the Credit Union Act 1997, asamended. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Credit Union in accordance with ethical requirements that are relevant to our audit of financial statements in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which IAASA require us to report to you where: ● the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or ● the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Credit Union's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised forissue. Other Information The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our Auditor's Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Credit Union Acts 1997, as amended Based solely on the work undertaken in the course of the audit, we report that: ● We have obtained all the information and explanations which we consider necessary for the purposes 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. ● The financial statements contain all primary statements, notes and significant accounting policies required to be included in accordance with section 111(1)(c) of the Act. Respective responsibilities Responsibilities of directors for the financial statements As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
9
INDEPENDENT AUDITOR'S REPORT
INDEPENDENT AUDITOR'S REPORT to the Members of Altura Credit Union Limited
In preparing the financial statements, the directors' are responsible for assessing the Credit Union's ability to continue as a going concern, disclosing, as applicable, matters related to the going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Credit Union or to cease operations, or has no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Further details relating to our work as auditor is set out in the Scope of Responsibilities Statement contained in the appendix of this report, which is to be read as an integral part of our report. The purpose of our audit work and to whom we owe our responsibilities Our report is made solely to the Credit Union’s members, as a body, in accordance with section 120 of the Credit Union Act 1997, as amended. 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.
David O'Connor for and on behalf of XEINADIN AUDIT IRELAND LIMITED CHARTERED ACCOUNTANTS & STATUTORY AUDITORS Sinnottstown Business Park
Drinagh Wexford Date: 7 th November 2024
10
INDEPENDENT AUDITOR'S REPORT
INDEPENDENT AUDITOR'S REPORT to the Members of Altura Credit Union Limited
Appendix to the Independent Auditor’s Report Further information regarding the scope of our responsibilities as auditor As part of an audit in accordance with ISAs (Ireland), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Credit Union's internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Credit Union’s ability to continue as going concerns. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Credit Union to cease to continue as going concerns. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
11
INCOME & EXPENDITURE ACCOUNT
Altura Credit Union Limited INCOME & EXPENDITURE ACCOUNT for the year ended 30 September 2024
2024 €
2023 €
Notes
Income Interest on members' loans Other interest income and similar income Interest payable on members' deposits
4 5 6
5, 550 , 691 2,196,462 (605) ─────── 7,746,548 (2,579,206) (2,918,902) (366,428) 15,950 273 , 095 ─────── 2,386,838 257,781 (42,000) - ─────── 2,386,838 ═══════
5,169,363 1,498,945 - ─────── 6,668,308 (2,484,777) (2,688,599) (357,643) 240,173 131,540 143,754 152,260 ─────── 1,805,016 - ─────── 1,805,016 ═══════
Net interest income Other income Exceptional gains / (losses) Employment costs
7 8
9
Other management expenses (Schedule 1) Depreciation and Amortisation Reversal of fixed assets impairment Net recoveries/(losses) on lending to members Surplus/(deficit) of income over expenditure Other comprehensive income
14 15.3
Total comprehensive income
The financial statements were approved and authorised for issue by the Board of Directors on 7 th November 2024 and signed on its behalf by;
Chief Executive Officer:
Barry Monaghan
Member of the Board of Directors:
Thomas Finn
Member of the Board Oversight Committee:
Mary Quinn
The notes on pages 16 to 32 form part of the financial statements
12
BALANCE SHEET
Altura Credit Union Limited BALANCE SHEET as at 30 September 2024
2024
2023
€
€
Notes
Assets Cash and cash equivalents Intangible assets Investment in associate Tangible fixed assets Loans to members Members’ current accounts Stock of consumables Prepayments and other debtors Deposits and investments – cash equivalents Deposits and investments – other
11 12 13 14 15 16 17 18 18
8,228,258 87,490 336,250 7,800,535 78,549 , 429 15 , 171 15,659 343,138 30,863 , 848 52 , 682 , 791 ─────── 178,922,569 ═══════ 149,387,775 513,191 4,789,355 626,257 ─────── 155,316,578 ═══════ 23,605,991 ═══════ 19,000,000 600,000 156 , 741 147 , 496 3,701 , 754 ─────── 23,605,991 ═══════
6,437,119 104,403 265,000 7,540,207 69,583,179 7,120 17,642 306,394 28,863,170 55,429,721 ─────── 168,553,955 ═══════ 142,186,995 542,733 3,749,129 645,249 ─────── 147,124,106 ═══════ 21,429,849 ═══════ 18,000,000 600,000 198,741 67,670 2,563,438 ─────── 21,429,849 ═══════
Total Assets
Liabilities Members’ shares Members’ deposits Members’ current accounts Accruals and other payables Total Liabilities ASSETS LESS LIABILITIES
19 20 16 21
Reserves Regulatory reserve Operational risk reserve Other unrealised income reserve Non-distributable investment income reserve Distribution reserve
Total Reserves
Approved by the Board of Directors and signed on its behalf by:
Chief Executive Officer:
Barry Monaghan
Member of the Board of Directors:
Thomas Finn
Member of the Board Oversight Committee:
Mary Quinn
Date: 7 th November 2024
The notes on pages 16 to 32 form part of the financial statements
13
STATEMENT OF CHANGES IN RESERVES
Altura Credit Union Limited STATEMENT OF CHANGES IN RESERVES for the year ended 30 September 2024
Non- distributable investment
Other unrealised income reserve € 521,146 - - - ( 322,405) ─────── 198,741 ═══════ -
Distribution reserve € 489,946 1,805,016 - - - 268,476 ─────── 2,563,438 ═══════ 2,563,438 (139,152) (71,544) (1,000,000) (37,826) 2,386,838 ─────── 3,701,754 ═══════
Regulatory reserve € 18,000,000 - - - 18,000,000 - - 1,000,000 ─────── 18,000,000 ═══════ - - - ─────── 19,000,000 ═══════ -
Operational Risk reserve € 600,000 - - - ─────── 18,000,000 ═══════ - -
income reserve € 13,741 - - - 53,929 ─────── 67,670 ═══════ -
Total reserves €
19,624,833
At 1 October 2022 Dividends paid during the year Loan interest rebate paid during the year Transfer between reserves Unrealised reserves Total comprehensive income for the year At 1 October 2023 Dividends paid during the year Loan interest rebate paid during the year Transfer between reserves Unrealised reserves Total comprehensive income for the year At 30 September 2023
- - - -
1,805,016 ─────── 21,429,849 ═══════ 21,429,849 (139,152) (71,544) - - 2,386,838 ─────── 23,605,991 ═══════
600,000 -
198,741
67,670
- - -
- - - -
- -
(42,000) ─────── 156,741 ═══════
79,826
-
-
─────── 600,000 ═══════ -
─────── 147,496 ═══════
At 30 September 2024
The Regulatory reserve of the Credit Union as % of total assets as at 30 th September 2024 was 10.62% (2023: 10.68%). Following commencement of S13 of the 2012 Act, the requirement for Credit Unions to transfer 10% of their annual surplus to their statutory reserve (now known as the Regulatory reserve) each year has been removed. Notwithstanding this, the Board of Altura Credit Union Limited made a transfer in the current year of €1,000,000 (2023: Nil) to its Regulatory reserve, the reserve stands at 10.62% at current year end (2023: 10.68%), in excess of the required limit of 10%. In accordance with S45 of the Credit Union Act 1997, as amended Altura Credit Union Limited have put in place an Operational Risk reserve. There were no transfers from the Distribution reserve to the Operational Risk reserve in the current year (2023: Nil). The Operational Risk reserve as a % of the total assets as at 30 th September 2024 was 0.34% (2023: 0.36%). -
14
CASH FLOW STATEMENT
Altura Credit Union Limited CASH FLOW STATEMENT for the year ended 30 September 2024
2024 €
2023 €
Opening cash and cash equivalents
35,300,289
30,487,157
Cash flows from operating activities Loans repaid by members Loans granted to members Loan interest income received Interest paid on members’ deposits Investment income
27,875,999 (34,971,041) 5,151,266 - 1,498,945 240,173 318,938 - - - (5,162,750) 439,609 20,604 (18,096) ─────── (4,606,353 ) ───────
30,240,434 (39,438,151) 5,530,002 (605) 2,196,462 257,781 320,055 186,774 (139,152) (71,544) (5,498,108) 1,029,908 (13,440) (18,992) ───────
Other income received Bad debts recovered Impairment of loan interest re- classified as bad debt recoveries Dividends paid Loan interest rebate paid Operating expenses Net Member current accounts lodgements / (withdrawals)
Movement in other assets Movement in other liabilities
Net cash from operating activities
(5,418,576) ───────
Cash flows from investing activities Sale of tangible fixed assets Purchase of tangible fixed assets Investment in associate companies Net cash flow from other investing activities
488,163 (653,780) - 5,935,677 ─────── 5,770,060 ───────
- (636,525) (71,250) 2,746,930 ─────── 2,039,155 ───────
Net cash from investing activities
Cash flows from financing activities Members’ shares received Members’ deposits received Members’ shares withdrawn Members’ deposits withdrawn
98,121,060 54,466 (94,348,301) (177,800) ─────── 3,649,425 ───────
102,821,925 52,457 (95,621,145) (81,999) ─────── 7,171,238 ───────
Net cash generated from financing activities
3,791,817 ─────── 39,092,106 ═══════
4,813,132 ─────── 35,300,289 ═══════
Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at end of financial year
15
NOTES TO THE FINANCIAL STATEMENTS
Altura Credit Union Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2024 1. LEGAL AND REGULATORY FRAMEWORK
Altura Credit Union Limited is established under the Credit Union Act 1997, as amended. Altura Credit Union Limited is registered with the Registry of Credit Unions and is regulated by the Central Bank of Ireland. The registered office and principal place of business of the Credit Union is McDermott Street, Gorey, Co Wexford. 2. ACCOUNTING POLICIES Statement of compliance and basis of preparation These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”). The financial statements have been prepared on the historical cost basis as modified by the recognition of certain non-financial assets measured at fair value. Currency The financial statements are prepared in Euro (€), which is the functional currency of the Credit Union. Monetary amounts in these financial statements are rounded to the nearest Euro. Going concern The financial statements are prepared on the going concern basis. The directors of Altura Credit Union Limited believe this is appropriate as the Credit Union: - Is generating annual operational surpluses; - Maintains an appropriate level of liquidity; and - Has reserves that are currently above the minimum requirements of the Central Bank. Income (i) Interest on members' loans Interest on loans to members is recognised using the effective interest method, and is calculated and The Credit Union primarily has investments that are valued at amortised cost, and uses the effective interest method to recognise investment income. Investment income from bank term deposits is recognised when received or receivable. The Credit Union has an investment in a Collective Investment Scheme which is initially measured at cost and is subsequently measured at market value. Net gains and losses, including any interest or dividend income and expense and foreign exchange gains and losses, are recognised in the Income and Expenditure account in ‘other investment income and gains/losses’ under ‘other interest income and similar income’. (iii) Other income Other income which includes commissions receivable on insurance products and foreign exchange services arises in connection to specific transactions. Income relating to individual transactions is recognised when the transaction is completed. Interest on Members’ Deposits, Dividends to Members & Loan Interest Rebates Interest on members’ deposits Interest on members’ deposits is recognised using the effective interest method. Dividend on shares and loan interest rebates accrued on a daily basis. (ii) Investment income Dividends are made from current year’s surplus and the dividend reserves set aside for that purpose. The Board’s proposed distribution to members each year is based on the dividend and loan interest rebate policy of the Credit Union. The rate of dividend and loan interest rebate recommended by the Board will reflect: - the risk profile of the Credit Union, particularly in its loan and investment portfolios; - the Board’s desire to maintain a stable rather than a volatile rate of dividend each year; and - members’ legitimate dividend and loan interest rebate expectations; all dominated by prudence and the need to sustain the long-term welfare of the Credit Union. For this reason, the Board will seek to build up its reserves to absorb unexpected shocks and still remain above minimum regulatory requirements. The Credit Union accounts for dividends and rebates of loan interest when members ratify such payments at the Annual General Meeting.
16
NOTES TO THE FINANCIAL STATEMENTS
Altura Credit Union Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2024 Investments Cash and short term deposits (Maturity within 3 months)
These are valued at the deposit amount plus any accrued interest and interest income is recognised in the statement on an accruals (time) basis. Fixed-term deposit accounts (Maturity after 3 months) Term deposits and fixed interest investment bonds with fixed maturity dates are valued at the lower of cost or encashment value and interest is recognised in the income statement when it is received or irrevocably receivable. Collective Investment Schemes The Credit Union has an investment in a Collective Investment Scheme which is initially measured at cost and is subsequently measured at market value. Net gains and losses, including any interest or dividend income and expense and foreign exchange gains and losses, are recognised in the Income and Expenditure account in ‘other investment income and gains/losses’ under ‘other interest income and similar income’. Held at amortised cost Investments designated on initial recognition as held at amortised cost are measured at amortised cost using the effective interest method less impairment. This means that the investment is measured at the amount paid for the investment, minus any repayments of the principal; plus or minus the cumulative amortisation using the effective interest method of any difference between the amount at initial recognition and the maturity amount, minus, in the case of a financial asset, any reduction for impairment or un-collectability. Central Bank deposits Credit Unions are obliged to maintain certain deposits with the Central Bank. These deposits are technically assets of the credit union but to which the Credit Union has restricted access. The funds on deposit with the Central Bank attract nominal interest and will not ordinarily be returned to the credit union while it is a going concern. The amounts are stated at the amount deposited plus accrued income and are not subject to impairment reviews. Intangible assets and amortisation Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: Software Development 10% Straight line Tangible fixed assets and depreciation Tangible fixed assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets, less their estimated residual value, over their expected useful lives as follows: Land & Premises Equipment Fixtures & Fittings Motor Vehicles 2.5% Straight line (Land 0%) 20%/33.33% Straight line 10% Straight line 20% Straight line The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the Income and Expenditureaccount. Impairment of tangible fixed assets At each reporting end date, the Credit Union reviews the carrying value of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Credit Union estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
17
NOTES TO THE FINANCIAL STATEMENTS
Altura Credit Union Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2024
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the Income and Expenditure account. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the Income and Expenditure account. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and deposits and investments with a maturity of less than or equal to three months. Investments in associates Investments in associates are accounted for at cost less impairment. Taxation The Credit Union is not subject to income tax or corporation tax on its activities as a Credit Union. f The Credit Union has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised when the Credit Union becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements when, and only when, there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Financial assets and liabilities are classified according to the substance of the contractual arrangements entered into. Basic financial assets Basic financial assets are initially measured at the transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method. Basic financial instruments include the following: Loans to members Loans are financial assets with fixed or determinable payments. Loans are recognised when cash is advanced to members and measured at amortised cost. Prepayments and other debtors Other receivables such as prepayments are initially measured at transaction price including transaction costs and are subsequently measured at amortised cost using the effective interest method. De-recognition of financial assets Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Credit Union transfers to another party substantially all the risks and rewards of ownership of the financial asset, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. In the case of loans to members, loans are derecognised, when the right to receive cash flows from the loans have expired, usually when all amounts outstanding have been repaid by the member. Altura Credit Union Limited does not transfer loans to third parties. Impairment of financial assets Financial assets, other than those held at fair value, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the expected cash flows discounted at the asset’s original effective interest rate. Financial instruments
18
NOTES TO THE FINANCIAL STATEMENTS
Altura Credit Union Limited NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 September 2024
In the case of impairment of loans to members, the loans are assessed collectively in groups that share similar credit risk characteristics except for individually significant loans which are assessed on a loan by loan basis for impairment. Any impairment losses are recognised in the Income and Expenditure account. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the Income and Expenditure account. Basic financial liabilities Basic financial liabilities are initially recognised at the transaction price, including transaction costs, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities are subsequently carried at amortised cost using the effective interest method. Members' shares Members’ shares, current accounts and deposits are redeemable and therefore are classified as financial liabilities. They are initially recognised at the amount of cash deposited and subsequently members’ deposits are measured at amortised cost. Other payables Other payables are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Other payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. De-recognition of financial liability Financial liabilities are derecognised when the obligations of the Credit Union specified in the contract are discharged, cancelled or expire. Pensions Altura Credit Union Limited participates in an industry-wide pension scheme for employees (The Irish League of Credit Unions Republic of Ireland Pension Scheme). This is a funded defined benefit scheme with assets managed by the Scheme’s trustees. The scheme is a multi-employer defined benefit Scheme and due to the nature of the Scheme, it is not possible for Altura Credit Union Limited to separately identify its share of the Scheme’s underlying assets and liabilities. Consequently, it accounts for the Scheme as a defined contribution plan. If an agreement is entered into with the Scheme that determines how Altura Credit Union Limited will fund a past service deficit, Altura Credit Union Limited shall recognise a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit). The Credit union also operates a defined contribution scheme for employees. The assets of the scheme are held separately from those of the credit union in independently administered funds. Employer contributions to the scheme are charged to the Income and expenditure account in the period to which they relate. Employee benefits The costs of short-term employee benefits, including holiday pay, are recognised as a liability and as an expense (unless those costs are required to be recognised as part of the cost of fixed assets) over the period they are earned. Reserves Regulatory reserve The Credit Union is required to maintain and establish a minimum Regulatory reserve of at least 10% of the assets of the Credit Union in accordance with Credit Union Act 1997 (Regulatory Requirements) Regulations 2016. Operational risk reserve The Credit Union has established an Operational Risk reserve which is separate, distinct and in addition to the reserves the Credit Union is required to hold in its Regulatory reserve. The amount held in the Operational Risk reserve is the predicted impact of operational risk events that may have a material impact on the Credit Union's business.
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