annual report - Beaumont Credit Union

Transcription

65
EDIT U
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BEAUMON
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2010
07
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46
65
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Sixty-Five Years
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Soixante-cinq Ans
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01
77
08
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01
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K E Y MI L E S TONE S O F B E A UMONT C REDIT UNION
L e s é ta p e s i m p o r ta n t e s d e B e a u m o n t C r e d i t U n i o n
$189.2 million in assets
2009
Actif = 189,2 millions $
Building expansion completed
2008
Agrandissement de l’édifice est terminé
First ATM drive-thru in Beaumont
2007
Premier guichet automatique ATM (service à l’auto) à Beaumont
Common Shares increase to $100,000/member
2006
Actions ordinaires passe au maximum de 100 000 $/membre
60th anniversary
200560e Anniversaire
2004L’achèvement des travaux d’agrandissement et de modernisation – l’inauguration officielle
Completion of modernization 2001 and expansion – official re-opening
Record $200,000 paid to members (over $1m has been paid since
introduction of Common Share program); name change
to Beaumont Credit Union Ltd. approved
Surpasses 5% mark in member equity
2000Un montant sans précédent de 200 000 $ en dividende a été remis aux membres (depuis l’introduction
du programme d’actions ordinaires, un montant de plus de 1 million de dollars a été remis aux membres);
le changement de nom à “Beaumont Credit Union Ltd.” a été approuvé
1998Dépassement de la cible de 5 % de l’avoir propre des sociétaires
50th anniversary
Reaches 4% Common Share and retained earnings level
1992La caisse atteint le niveau de 4 % d’actions ordinaires et de bénéfices non répartis
ATM installed – first in Beaumont
Official opening of new building on June 3rd;
New Credit Union Act approved by province
Construction begins on new building
1991Un guichet automatique ATM est installé. C’est le premier à Beaumont
1989L’inauguration officielle a lieu le 3 juin
La nouvelle loi “Credit Union Act” est approuvée par la province
1988
La construction débute à l’automne pour nouveaux bureaux
40th anniversary; Common Shares introduced
1986La caisse célèbre son 40e Anniversaire; la caisse offre des actions ordinaires
1983L’actif dépasse les 10 millions de dollars; le déficit est remboursé au complet
Deficit repaid in full; $10 million in assets
Decision made to remain autonomous;
merger with Edmonton Savings did not proceed
Purchase three vacant lots by original location for future development
Credit Union moves to 5001 50 St
1981Il y a des réunions concernant le projet de fusion de la Caisse St-Vital de Beaumont à Edmonton Savings.
La décision est prise de rester autonome
1980La caisse a acheté trois terrains vacants près de son emplacement original pour développement futur
1977
La caisse démenage au 5001, 50e Rue
30th anniversary
1973
$1,000,000 in assets
Actif = 1 000 000 $
25th anniversary; expansion to the building
197125e Anniversaire; l’agrandissement de l’édifice de la caisse est terminé
Gérard Goudreau hired as first full-time general manager
1970M. Gérard Goudreau est embauché comme premier directeur général à plein temps
Purchase of land and building on 50th Avenue
Incorporated on May 30th as Caisse St. Vital de Beaumont Credit Union;
65 members at end of year
1962Achat du terrain pour bureaux de la caisse sur la 50e Avenue
1946
La Caisse populaire est incorporée le 30e mai; à la fin de l’année, il y a 65 membres
A NNU A L REPORT 2 0 1 0
Table of Contents
4 A Foundation for Growth
12 Minutes from 64th Annual General Meeting
6 Call to Order
28 Report to the Membership 2010
7 65th Annual General Meeting Agenda
38 Credit Committee Report 2010
8 Corporate Directory
42 Risk, Audit and Finance Committee Report 2010
10 Mission Statement
46 Financial Statements 2010
Ra p p o r t A n n u e l 2 0 1 0
Table des matières
4 Une base pour la croissance
12 Procès-verbal de la 64e Assemblée générale annuelle
6 Ouverture de la réunion
28 Rapport aux membres 2010
7 Ordre du jour
38 Rapport du Comité de crédit 2010
8 Annuaire de la Caisse
42 Rapport du Comité de vérification et de finance 2010
10 Énoncé de mission
46 États financiers 2010
A Foundation for Growth
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The seeds for our success first began to grow when we planted roots in Beaumont 65 years ago. From the moment
we opened our doors for business until now, we’ve accomplished many milestones, experienced positive growth, and
become deeply involved in our community. Our unwavering commitment to member-owners and dedication to community
continue to form the foundation for our growth.
Our focus has always been on meeting member-owners’ needs. As these needs changed and grew, we expanded our
knowledge of banking; we took what we knew and adapted cutting-edge services and innovations to create fresh, local, and
personalized solutions. Meanwhile, the community in which our member-owners lived, worked, and played continued to
grow, and we grew with it, as an active member and an ongoing contributor.
Une base pour la croissance
Les graines du succès ont commencé à pousser quand elles ont été semées à Beaumont, il y a 65 ans. Depuis l’ouverture de nos
portes comme entreprise et jusqu’à aujourd’hui, nous avons franchi plusieurs étapes, connu une croissance positive et sommes
devenu profondément impliqués dans notre collectivité. Notre engagement inébranlable envers nos membres-propriétaires et
notre dévouement envers la collectivité continuent de former la base de notre croissance.
Nous nous sommes toujours concentrés à répondre aux besoins de nos membres-propriétaires. Comme ces besoins ont
changé et augmenté, nous avons amélioré nos connaissances bancaires; nous avons aussi pris ce que nous connaissions et l’avons
adapté à des services et innovations à la fine pointe pour créer des solutions personnalisées, locales et fraîches. Pendant ce
temps, la collectivité dans laquelle nos membres-propriétaires vivent, travaillent et s’amusent, a continué de progresser et nous
avons progressé avec elle comme membre actif et contributeur permanent de cette collectivité.
With each service improvement and each significant milestone comes a new layer of experiences, accomplishments, and
support, all of which connect us to our member-owners and our community. The layers we have accumulated over the
years reflect our past and form the foundation for our present and future.
This year, we celebrate our 65th anniversary. It will be an opportunity for us to look back at our history as we look forward
to a future filled with potential growth and opportunities. We invite you, our member-owners, to celebrate this milestone
with us.
Chaque amélioration de service et chaque étape importante deviennent une nouvelle couche à cette base d’expériences, de
réalisations et de soutien, qui nous relie tous à nos membres-propriétaires et à notre collectivité. Les couches que nous avons
accumulées au cours des années reflètent notre passé et forment la base de notre présent et de notre avenir.
Cette année, nous célébrons notre 65e anniversaire. Ce sera pour nous une occasion de se pencher sur notre histoire tout en
regardant vers un avenir rempli de possibilités et de progrès. Nous vous invitons, vous, nos membres-propriétaires, à célébrer
cette étape avec nous.
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Join us at Beaumont Credit Union’s 65th Annual General Meeting
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Call to Order
Agenda Includes:
Saturday, March 12th, 2011
• Consideration of the Board of Directors’ Annual Report
Club Beaumont Hall (KC Hall)
• The Auditors’ Report
5204 – 50 Avenue, Beaumont, Alberta
• Committee Reports
• Changes to Credit Union By-laws (if applicable)
Cocktails: 5:30 pm | Dinner: 6:00 pm
• Results from the Elections for the Board of Directors
Meeting: 8:00 pm
• Service Awards
Entertainment to follow
Assistez à la 65e Assemblée générale annuelle de la Caisse de Beaumont
Ouverture
L’Ordre du jour comprend :
Le samedi 12 mars 2011
Club Beaumont Hall (Salle des C de C)
•La présentation du Rapport annuel du Conseil
d’administration
5204, 50e Avenue, Beaumont, Alberta
• Le Rapport du Vérificateur
• Les Rapports des comités
Cocktails : 17h30 | Souper : 18h00
Réunion à 20h00
Divertissement à suivre
•Les changements aux statuts et règlements
de la Caisse (si nécessaire)
•Les résultats des élections des administrateurs
au Conseil d’administration
• Les Prix de reconnaissance
Agenda
9. Operations Report to Members
1. Registration
10. Risk, Audit & Finance Committee Report
2. President’s Welcome
11. Auditor’s Report & Presentation of Financial Statements
3. Call to Order
12. Credit Committee Report
4. Welcome and Introduction of Guests
13. Nominating Committee Report & Election Results
5. Introduction of Board Members & Staff
14. Greetings from Guests
6. Adoption of Agenda
15. Staff Service Awards and Director Recognition
7. Registration Report
16. Question & Answer Period/New Business
8. Reading and Approval of 64th Annual General Meeting Minutes
17. Adjournment
Ordre Du Jour
9. Rapport aux membres
1. Inscription
10. Rapport du comité de risques, vérification et de finances
2. Mots de bienvenue du président
11. Rapport du vérificateur & présentation des états financiers
3. Ouverture de la séance
12. Rapport du comité de crédit
4. Présentation des invités
13. Rapport du comité de nominations et résultats d’élection
5. Présentation des membres du conseil
d’administration et du personnel
14. Paroles des invités
6. Adoption de l’ordre du jour
16. Période de questions – affaires nouvelles
7. Résultats des inscriptions
17. Ajournement
15. Reconnaissance aux employés et administrateurs
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8. Lecture et adoption du procès-verbal
de la 64e réunion annuelle
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CORPORATE DIRECTORY October 31 , 2010
ANNUAIRE DE LA CAISSE au 31 octobre 2010
st
Board of Directors | Conseil d’administration
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Chairman | Président
Vice-Chairperson | Vice-président
2nd Vice Chairperson | 2e Vice-président
Neil Fenske
Dan Chalifoux
Lois Watson
Gérard (Gerry) Goudreau
Bob Robinson
Marg Bouchard
Ray Hornbacher
Roy Eckert
Stan Gerber
Staff | Personnel
Member Service
| Service aux membres:
Administrative | Administratif:
Carol Strap
MSR-Lending
| Service aux membres/prêts:
Joy Spencer
Arlene Joly
Bill Trembley
Rosemarie Moser
Denise Charbonneau
Dawn Weisner
Abida Kahlon
Karen Warren
Carolyn Hicks
Charlet Nelson
Tamera Gusa
Christine Simpson
Dawn Merkel
Tracey Brulotte
Bernie LeBlanc
Danielle Boucher
Vosh Vickery
Maria Potts
Doreen Bartley
Susan Moon
Tony Seitz
Jacinthe Jacques
Linda Leblanc
Juliette Bégin
Rubi Aziz
Accounting | Comptabilité:
Management Staff
| Personnel de direction
Monique Carrière
Camille Bérubé
Lise Grenier
CEO | Directeur général
Cindy Bennett
VP, Operations | Directrice d’opérations
Lori Archibald
VP, Finance & Risk Officer | V.P., Agent financier
et de risque
Rachelle Woods
Administrative Secretary
| Secrétaire administrative
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OUR MISSION
Beaumont Credit Union is an ethical organization providing our community and owners with quality financial services.
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OUR VISION
Proud history, strong future for our members, employees and community.
NOTRE MISSION
La Caisse de Beaumont est une organisation morale qui fournit à sa collectivité et ses propriétaires
des services financiers de qualité.
NOTRE VISION
Fier de son histoire, avenir solide pour ses membres, ses employés et sa collectivité.
VALUE STATEMENT
•
•
•
•
We respect people by listening to their individual needs.
We conduct our business with integrity.
We value our independence and help you in achieving yours.
We support our community’s success and cultural diversity.
EXPOSÉ DE VALEURS
•
•
•
•
Nous respectons les gens en étant à l’écoute de leurs besoins individuels.
Nous dirigeons notre entreprise avec intégrité.
Nous privilégions notre indépendance et vous aidons à atteindre la vôtre.
Nous appuyons le succès et la diversité culturelle de notre collectivité.
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MINUTES OF THE
64th ANNUAL GENERAL MEETING
BEAUMONT CREDIT UNION LTD.
Held at the Knights of Columbus Hall, Beaumont, Alberta
PROCÈS-VERBAL DE LA 64e
ASSEMBLÉE GÉNÉRALE ANNUELLE
DE LA CAISSE DE BEAUMONT
Tenue à la Salle des Chevaliers de Colomb, Beaumont, Alberta
Mr. Reuben Hickman, President, welcomed all members and guests.
Call to Order: The meeting was called to order at 7:45 p.m. There were 111 members and 26 guests registered at
that time for a total of 137 in attendance. A quorum was declared.
Welcome and Introduction of Guests: The guests in attendance and introduced were:
Mr. George Rogers – MLA, Leduc/Beaumont/Devon Constituency
Mr. Paul Kennett – President & CEO, Credit Union Deposit Guarantee Corp.
Mr. Bruce Lecren – Deputy Mayor, Town of Beaumont
Mr. Michael Epp – Auditor and Senior Partner, Hawkings Epp Dumont LLP
Detachment Commander Dave Wilkinson – RCMP, Beaumont Detachment
Mr. Dan Johnson – CEO, Rocky Credit Union Ltd.
M. Reuben Hickman, Président, a souhaité la bienvenue à tous les membres et invités.
Ouverture de l’assemblée : L’assemblée a débuté à 19h45. Il y avait 111 membres et 26 invités inscrits à ce
moment-là pour un total de 137 personnes. Le Président a déclaré qu’il y avait quorum.
Bienvenue et présentation des invités : Les invités suivants ont été présentés :
M. George Rogers – Député provincial du comté de Leduc/Beaumont/Devon
M. Paul Kennett – Président-directeur général de Credit Union Deposit Guarantee Corp.
M. Bruce Lecren – Pro-maire de la Ville de Beaumont
M. Michael Epp – Vérificateur et associé principal, Hawkings Epp Dumont LLP
Commandant Dave Wilkinson – GRC, Détachement de Beaumont
M. Dan Johnson – Directeur général, Rocky Credit Union Ltd.
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Mr. Randall Sugden – VP Finance, Rocky Credit Union Ltd.
Mr. Fred Purdy – Director, Rocky Credit Union Ltd.
Mr. Chris Laxton – Assistant VP, Risk Management, Alberta Central
Mr. John Veldkamp – CEO, Christian Credit Union Ltd.
Mr. Eric Dillon – COO, ServUs Credit Union Ltd.
Mr. Taras Nohas – Director Strategic Planning, ServUs Credit Union Ltd.
Introduction of Board Members, Committee Members & Staff: Mr. Reuben Hickman introduced the Board of
Directors and committee members. Mr. Camille Bérubé, CEO, welcomed all members and guests. He also thanked
the sponsors and Credit Union representatives for their support and contributions over the last year. Mr. Bérubé
then introduced the staff.
M. Randall Sugden – V.P. Finance, Rocky Credit Union Ltd.
M. Fred Purdy – Administrateur, Rocky Credit Union Ltd.
M. Chris Laxton – V.P. adjoint de la Gestion du risque, Alberta Central
M. John Veldkamp – Directeur général, Christian Credit Union Ltd.
M. Eric Dillon – Directeur de l’exploitation, ServUs Credit Union Ltd.
M. Taras Nohas – Directeur de la planification stratégique, ServUs Credit Union Ltd.
Présentation des membres du Conseil d’administration, des membres des comités et du personnel :
M. Reuben Hickman a présenté les membres du Conseil d’administration et des comités. M. Camille Bérubé,
Directeur général, a souhaité la bienvenue aux membres et aux invités. Il a aussi remercié les commanditaires et
les représentants des caisses pour leur appui et leur collaboration durant la dernière année. M. Bérubé a ensuite
présenté le personnel.
Agenda: It was moved that the agenda be adopted.
Irène Bérubé/Cindy Bennett Carried
Minutes: It was moved that the minutes of the 63rd Annual Meeting be adopted as circulated.
Bob Robinson/Jo-Anne Bérubé Carried
Report to the Members: Mr. Reuben Hickman and Mr. Camille Bérubé presented the report on behalf of the Board
of Directors and Management. It was moved that the report be accepted as read.
Dale Coté/Denise LeBlanc Carried
Ordre du jour : Il a été proposé d’adopter l’ordre du jour tel que présenté.
Irène Bérubé/Cindy Bennett Adopté
Procès-verbal : Il a été proposé d’adopter le procès-verbal de la 63e assemblée générale annuelle tel que présenté.
Bob Robinson/Jo-Anne Bérubé Adopté
Rapport aux membres : Messieurs Reuben Hickman et Camille Bérubé ont présenté le rapport aux membres au
nom du Conseil d’administration et de la direction. Il a été proposé que le rapport soit accepté tel que lu.
Dale Coté/Denise LeBlanc Adopté
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Risk, Audit & Finance Committee Report: Ms. Marg Bouchard, Committee Chairperson, presented the report on
behalf of the Risk, Audit & Finance Committee. It was moved that the report be accepted as read.
Cindy Bennett/Adrien Bussière Carried
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Auditor’s Report and Presentation of Financial Statements: Mr. Michael Epp, Credit Union Auditor from
Hawkings Epp Dumont LLP, gave a summary of the Auditor’s Report and reviewed the financial statements plus
accompanying notes. He then invited questions from the members. It was moved that the Auditor’s Report and
the Financial Statements be accepted as presented.
Russ McCurdy/Tracey Brulotte Carried
Rapport du Comité de vérification, finance et risque : Madame Marg Bouchard, Présidente du comité, a présenté
le rapport au nom du Comité de vérification, finance et risque. Il a été proposé que le rapport soit accepté tel que lu.
Cindy Bennett/Adrien Bussière Adopté
Rapport du vérificateur et présentation des états financiers : M. Michael Epp, Vérificateur de la caisse de
Hawkings Epp Dumont LLP, a présenté un sommaire du Rapport du vérificateur et repassé les états financiers et les
notes complémentaires. Il a aussi répondu aux questions des membres. Il a été proposé d’accepter le Rapport du
vérificateur et les états financiers tels que présentés.
Russ McCurdy/Tracey Brulotte Adopté
Credit Committee Report: Ms. Dawn Weisner, Consumer Lending Manager, presented the report on behalf of the
Credit Committee. It was moved that the report be accepted as read.
Irène Bérubé/Vosh VickeryCarried
Nominating Committee Report: Mr. Roy Eckert, Committee Chairman, presented the Nominations Committee
Report on behalf of the Board of Directors and Management.
Mr. Dan Chalifoux, Mr. Neil Fenske and Mr. Bob Robinson were declared elected by acclamation. Mr. Roy Eckert
congratulated the three new directors and also thanked outgoing director Mr. Reuben Hickman for his many years
of service to our Credit Union.
Rapport du Comité de crédit : Madame Dawn Weisner, Gérante des prêts à la consommation, a présenté le rapport
au nom du Comité de crédit. Il a été proposé d’accepter le rapport tel que lu.
Irène Bérubé/Vosh Vickery Adopté
Rapport du Comité de nominations : M. Roy Eckert, Président du comité, a présenté le rapport du Comité de
nominations au nom du Conseil d’administration et de la direction.
Messieurs Dan Chalifoux, Neil Fenske et Bob Robinson ont été élus par acclamation. M. Roy Eckert a félicité
les trois nouveaux administrateurs et a aussi remercié l’administrateur sortant, M. Reuben Hickman, pour ses
nombreuses années de service à la caisse.
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It was moved that the Nominating Committee Report be accepted as presented.
Deanne Nichol/Hélène Magnan Carried
Greetings from Guests:
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Mr. George Rogers, MLA Leduc/Beaumont/Devon – Mr. Rogers brought greetings from the Provincial Government.
“Great year in the face of the economical turmoil. Profits were down 25% to $700,000.00 but the Beaumont Credit
Union still managed a profit with banks closing, house foreclosures, etc. We should be proud of our Board of
Directors, CEO and Beaumont Credit Union Staff. Thank you to Mr. Reuben Hickman for a great job as chair of the
Board of Directors. A Credit Union is only as great as its volunteers and staff. Keep up the good work.”
Il a été proposé d’accepter le rapport du Comité de nominations tel que présenté.
Deanne Nichol/Hélène Magnan Adopté
Messages des invités :
M. George Rogers, Député du comté de Leduc/Beaumont/Devon – M. Rogers a présenté les salutations du
gouvernement provincial. «Très bonne année, malgré la crise économique. Les profits ont diminué de 25 % à
700 000 $ mais, la Caisse de Beaumont a quand même réussi a dégager un profit pendant que des banques fermaient
leurs portes et malgré la foreclusion de maisons, etc. Nous pouvons être fiers de notre Conseil d’administration,
du directeur général et du personnel de la Caisse de Beaumont. Merci à M. Reuben Hickman pour son magnifique
travail comme président du Conseil d’administration. Le succès d’une caisse dépend de ses bénévoles et de son
personnel. Continuez le bon travail.»
Mr. Paul Kennett, President & CEO, Credit Union Deposit Guarantee Corp. – Mr. Kennett brought greetings
from the Credit Union Deposit Guarantee Corp.. “The Alberta Credit Union system is strong. From Ontario to BC we
have the strongest capital base and are the most profitable. With Enterprise Risk Management fundamentals being
fully engaged in most credit unions, that process is becoming an integral part of their strategic planning and
helps those credit unions to set their own priorities in management of these uncertain and sometimes unknown
risks.
Common to all credit unions are three areas which, I believe, will help in meeting tomorrow’s uncertainties.
First – please place emphasis on good governance fundamentals. We need directors who can rise to the occasion
with the right degree of sophistication to meet the needs of the financial institution for which they have
stewardship responsibilities. Second – Strong Financial Position – Our strongest and most successful credit unions,
which include your credit union, have strong capital and liquidity positions. Third – Complacency Risk – We
M. Paul Kennett, Président-directeur général de Credit Union Deposit Guarantee Corp. – M. Kennett a
présenté les salutations de Credit Union Deposit Guarantee Corp.. «Le système des caisses est très fort en Alberta.
De l’Ontario à la C.-B., nous avons le plus fort capital de base et nous sommes les plus rentables. Les principes de la
Gestion du risque d’entreprises étant maintenant utilisés dans la plupart des caisses, ce processus fait maintenant
partie intégrante de leur planification stratégique et les aide à établir leurs propres priorités de gestion de ces
risques incertains et parfois inconnus.
Il y a trois domaines communs à toutes les caisses qui, je crois, aideront à répondre à ces incertitudes à venir.
Premièrement – s.v.p., mettez l’accent sur de bons principes de gouvernance. Nous avons besoin d’administrateurs
qui peuvent faire la part des choses pour répondre aux besoins de l’institution financière pour laquelle ils ont
des responsabilités de gérance. Deuxièmement – Une position financière solide – Nos caisses les plus solides et
ayant le plus de succès, ce qui inclut la vôtre, ont une liquidité et un capital solides. Troisièmement – Baisse de
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must stay diligent not only to the obvious matters that can affect the viability and sustainability of our credit
union but also the many outside influences that can affect us. Over the last few years, your credit union, with its
management team and Board of Directors, has contributed to the overall tremendous success of the credit union
system in Alberta. I congratulate you and thank you for a wonderful job which has been done.
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During this time of turmoil, there has been no credit union share purchase by government, no deposits classified
as equity, no call for government-sponsored liquidity. We stood the test and we did it alone. This is an outstanding
achievement and is deserving of the strongest commendation to your Board of Directors and Senior Management
team. While we will face a very challenging 2010, I invite you to join with me and my organization, to work
together and continue to be better today than we were yesterday and better tomorrow than today, so that we will
be the strongest and most successful credit union system in Canada.
vigilance face au risque – Nous devons rester vigilant non seulement face aux situations évidentes qui peuvent
affecter la viabilité et la durabilité de notre caisse, mais aussi face aux nombreuses influences extérieures qui
peuvent nous affecter. Depuis les quelques dernières années, votre caisse, avec son équipe de direction et son
Conseil d’administration, a contribué au succès sans précédent du système des caisses en Alberta. Je vous félicite
et vous remercie pour le magnifique travail que vous avez fait.
En ces temps d’incertitude, le gouvernement n’a acheté aucune action des caisses, aucun dépôt n’a été classifié
comme équité, aucune demande n’a été faite au gouvernement pour qu’il injecte de la liquidité. Nous avons fait
face à la situation, et l’avons fait seul. C’est tout un exploit et vous devez une fière chandelle à votre Conseil
d’administration et à votre équipe de gestionnaires supérieurs. Même si nous ferons face à un très gros défi
en 2010, je vous invite à vous joindre à moi et mon organisation pour travailler ensemble et continuer d’être
meilleurs qu’hier et encore meilleur demain qu’aujourd’hui, ainsi, nous serons le meilleur et le plus solide système
de caisses au Canada.
On behalf of the Credit Union Deposit Guarantee Corp., I bring greetings and wish you all the very best for 2010.”
Detachment Commander Dave Wilkinson, RCMP Beaumont Detachment – Detachment Commander Dave
Wilkinson provided a brief explanation of the “Positive Ticketing” program being offered in the Beaumont
community. “This community-based policing program was established in March 2009 with a collective group
of community members (concerned citizens and the Community Advisory Committee) and Law Enforcement
Agencies (RCMP and Community Peace Officers) forming a focus group. This focus group completed a fundraising
drive, and secured sponsorship from a number of local businesses. Over the summer months, both CPOs and RCMP
members issued 130 Positive Tickets to youth that exhibited and demonstrated good behaviour in the community.
This initiative not only encouraged good behaviour with youth, but also facilitated positive contact with local
businesses and members of the local law enforcement community.”
Au nom de Credit Union Deposit Guarantee Corp., je vous souhaite le meilleur des succès pour 2010.»
Commandant Dave Wilkinson – GRC, Détachement de Beaumont - Le commandant Dave Wilkinson a donné une
brève explication du programme «Contravention positive» offert dans la collectivité de Beaumont. «Ce programme
fondé sur le maintien de l’ordre a été mis sur pied en mars 2009 avec un groupement collectif de membres de
la collectivité (des citoyens préoccupés et le Comité consultatif communautaire) et les autorités policières (la
GRC et les Agents de la paix communautaires) qui ont formé un groupe de discussion. Ce groupe de discussion a
fait une levée de fonds et sollicité des commandites auprès d’un nombre d’entreprises locales. Au cours des mois
d’été, les AGC et les membres de la GRC ont remis 130 contreventions positives à des jeunes qui ont démontré un
bon comportement dans la collectivité. Cette initiative a, non seulement encouragé les jeunes à avoir une bonne
attitude, mais a aussi facilité un contact positif entre les entreprises locales et les membres des services de police
locaux.»
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Mr. Camille Bérubé presented Detachment Commander Dave Wilkinson a cheque in the amount of $1,500.00 from
the Beaumont Credit Union for the “Positive Ticketing” initiative.
Corporal Wilkinson advised that the cheque that he received would greatly reinforce the “Positive Ticketing”
program.
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M. Camille Bérubé a présenté, de la part de la Caisse de Beaumont, un chèque de 1 500 $ au Commandant Dave
Wilkinson pour l’initiative «Contravention positive».
Le Commandant Wilkinson a mentionné que le chèque qu’il a reçu aidera grandement à renforcer le programme de
«Contravention positive».
Staff Recognition & Awards
Completing 1 year of service – Bill Trembley, Christine Simpson & Dawn Merkel
Completing 3 years of service – Deanne Nichol
Completing 10 years of service – Susan Moon
Presentation to Retiring Director: Mr. Dan Chalifoux presented a Bulova Watch to Mr. Reuben Hickman for his
12 years of service on the Board of Directors.
Mrs. Lil Hickman was presented with flowers as a token of our appreciation for the many years her spouse was
absent from home in his role as director.
Prix de reconnaissance au personnel
Pour un an de service – Bill Trembley, Christine Simpson et Dawn Merkel
Pour 3 ans de service – Deanne Nichol
Pour 10 ans de service – Susan Moon
Présentation à un administrateur qui se retire : M. Dan Chalifoux a présenté une montre Bulova à M. Reuben
Hickman pour ses 12 années de service au sein du Conseil d’administration.
Madame Lil Hickman a reçu un bouquet de fleurs en appréciation pour les nombreuses années que son époux a
été absent de la maison pour remplir son rôle d’administrateur de la caisse.
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Thank You – CEO, Camille Bérubé offered the following thanks:
1)Caterers
24
2)Thanks to Reuben Hickman for the efficient meeting. It has been a pleasure working with Reuben as our
Chairman. Reuben challenges our Board and management to always look above and beyond our successes.
Thanks for the last 12 years, Reuben, and we hope you will enjoy the extra time. The year was a challenge and
we stood up to lots of work.
3)Thanks to the organizing committee – an event like this takes time to organize. We were fortunate to work
with Bernie LeBlanc, Dawn Merkel, Deanne Nichol, Denise Charbonneau, Tracey Brulotte and Vosh Vickery. We
truly appreciate the work that you have done to organize this event.
Remerciements – Le directeur général, Camille Bérubé a offert
ses remerciements aux personnes suivantes :
1) Au traiteur pour l’excellent repas
2)À Reuben Hickman pour son efficacité à présider les réunions. Il a été plaisant de travailler avec Reuben
comme président. Reuben a constamment défié notre Conseil d’administration et notre direction de toujours
voir plus loin et au-delà de nos succès. Merci, Reuben, pour ces 12 années et nous souhaitons que tu jouiras
pleinement de tout ce temps libre. Cette année a été tout un défi et nous avons abattu beaucoup de travail.
4)Annual Report Preparation – thanks to Pierre Brault of MPM Communications for the translation of our report
and to Angela Smith from Incite for coordinating the final details of the report. Thanks to Jo-Anne Bérubé
for reading and proofreading some of the package. A special thanks is extended to Rachelle Woods for the
preparation, typing and coordination of the various reports.
5)Thank you – I sincerely thank all of the people who have been responsible for our successes in 2009 – our
partners, Board members, the staff and especially you, the members.
3)Merci au Comité de l’AGA – une activité comme celle-ci demande du temps à organiser. Nous sommes chanceux
de travailler avec Bernie LeBlanc, Dawn Merkel, Deanne Nichol, Denise Charbonneau, Tracey Brulotte et Vosh
Vickery. Nous apprécions vraiment le travail que vous avez fait pour organiser cette soirée.
4)Préparation du Rapport annuel – Merci à Pierre Brault de MPM Communications pour la traduction de notre
rapport et à Angela Smith de Incite pour la coordination des derniers détails du rapport. Merci à Jo-Anne
Bérubé pour la lecture d’épreuves et la correction d’une partie des documents. Un merci tout spécial à Rachelle
Woods pour la préparation, la transcription et la coordination des différents rapports.
5)Merci – Je remercie sincèrement toutes les personnes responsables de notre succès en 2009, nos partenaires,
les membres du Conseil d’administrations, le personnel et tout spécialement vous, les membres.
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Door Prizes: Winners of the door prizes were:
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Donated by
Beaumont News
Celero Solutions
Celero Solutions
Prize
Mastercraft 40 piece Screwdriver Set
Men’s Golf Shirt
Men’s Jacket
Winner
Mr. Laurier Gobeil
Mrs. Noella Kapphahn
Mrs. Thérese Gobeil
Credit Union Deposit Guarantee Corp
Jackie, Handerek & Forester
Rivercity Credit Union
Digital Picture Frame
$50.00 Keg Gift Certificate
$50.00 Keg Gift Certificate
Cordless Mouse Set
Mr. Aimé Auger
Mrs. Dolores St. Jacques
Mrs. Juliette Gobeil
Mrs. Aletha Dublanko
Town of Beaumont
CRI Canada
Christian Credit Union
MLA George Rogers – Leduc/Beaumont/Devon
ServUs Credit Union
ServUs Credit Union
Alberta Central
Rocky Credit Union
Hawkings Epp Dumont LLP
Beaumont Credit Union Ltd.
Men’s Dress Shirt
Fleece Sweater
$25.00 Gift Card
Golf Balls
Book Titled “Wild Alberta”
Flashlight
Boxed Game Set
Leather Portfolio
Leather Portfolio
BBQ Set
$750.00 Tax Donation Receipt
$750.00 Tax Donation Receipt
Mrs. Dorothy Howard
Mrs. Betty Kelndorfer
Mrs. Mary Woods
Mr. Sam Mark
Ms. Irène Bérubé
Mrs. Hélène Magnan
Ms. Gisèle Houston
Mrs. Maria Trempner
Mrs. Mary Holland
Mrs. Juliette Gabber
Mr. Denis Hinse
Mr. Claude Bérubé
There was a hearty round of applause for the caterers for the excellent meal, which preceded the business meeting.
With no further business, Mr. Reuben Hickman moved that the meeting be adjourned at 9:05 p.m.
_________________________________ _________________________________
PresidentCEO
Prix de présence : Les gagnants des prix de présence sont :
Donné par
Beaumont News
Celero Solutions
Celero Solutions
Credit Union Deposit Guarantee Corp
Ville de Beaumont
CRI Canada
Christian Credit Union
George Rogers – Député de Leduc/
Beaumont/Devon
ServUs Credit Union
ServUs Credit Union
Alberta Central
Rocky Credit Union
Hawkings Epp Dumont LLP
Prix
Ensemble de tournevis Mastercraft 40 morceaux
Chemise de golf pour homme
Coupe-vent pour homme
Cadre digital pour photos
Bon-cadeau de 50 $ Keg Rest.
Bon-cadeau de 50 $ Keg Rest.
Ensemble de souris sans fil
Chemise pour homme
Chandail en molleton
Bon-cadeau de 25 $
Balles de golf
Livre intitulé “Wild Alberta”
Gagnant/Gagnante
M. Laurier Gobeil
Mme Noella Kapphahn
Mme Thérèse Gobeil
M. Aimé Auger
Mme Dolores St-Jacques
Mme Juliette Gobeil
Mme Aletha Dublanko
Mme Dorothy Howard
Mme Betty Kelndorfer
Mme Mary Woods
M. Sam Mark
Mme Irène Bérubé
Lampe de poche
Ensemble de jeux
Portefeuille en cuir
Portefeuille en cuir
Ensemble pour barbecue
Reçu officiel d’impôt de 750 $
Reçu officiel d’impôt de 750 $
Mme Hélène Magnan
Mme Gisèle Houston
Mme Maria Trempner
Mme Mary Holland
Mme Juliette Gabber
M. Denis Hinse
M. Claude Bérubé
Les participants ont applaudi le traiteur et ses employés pour l’excellent repas servi avant l’AGA.
Ayant épuisé tous les items à l’ordre du jour, M. Reuben Hickman a proposé la levée de l’assemblée à 21h05.
_________________________________ _________________________________
PrésidentDirecteur général
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Report to the Membership 2010
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We are very pleased to report on the operations of Beaumont Credit Union Ltd. for the year ending October
31st, 2010. We are especially excited to celebrate our very proud history of 65 years of service to the residents,
businesses, and organizations of Beaumont and surrounding area. Beaumont Credit Union is one of a very select
group of single branch, locally owned and controlled organizations that can be proud of achieving such a milestone.
We thank the founding directors for the vision they had in establishing this financial cooperative. We also wish to
thank all directors, staff and members, past and present for their guidance, their contribution, their support and
especially their confidence in seeing Beaumont Credit Union evolve into a very successful financial institution.
Rapport aux membres 2010
C’est avec plaisir que nous faisons rapport des opérations de la Caisse de Beaumont pour l’exercice financier se
terminant le 31 octobre 2010. C’est avec enthousiasme et fierté que nous célébrons le 65e anniversaire de service
aux résidents, entreprises et organisations de la Ville de Beaumont et des environs. La Caisse de Beaumont fait
partie d’un groupe particulier de succursales uniques, appartenant à des sociétaires locaux et organisations
dirigées qui peut être fier de franchir une étape si importante de son histoire. Nous remercions les administrateurs
fondateurs pour la vision qu’ils ont eue en fondant cette coopérative financière. Nous remercions aussi tous les
administrateurs, le personnel et les membres passés et présents pour leurs conseils, contribution, soutien et
spécialement leur confiance à voir la Caisse de Beaumont se développer et devenir une institution financière très
prospère.
Challenging Year
As we wrapped up 2009, we were very confident that 2010 would bring a turnaround in the economic conditions.
2010 proved to be a very challenging year. The economic turmoil experienced worldwide also had an impact on our
Credit Union. Interest rates remained at an all time low. The decision made by the Board of Directors to maintain
an interest rate floor with a prime of no less than 3% served the organization well in mitigating further decreases
in our net income. That decision placed the Credit Union at a disadvantage on pricing of our products throughout
the year. Other financial institutions were extremely aggressive in their pricing strategies and we did suffer some
business loss.
Année de défi
À la fin de l’année 2009, nous étions très confiants qu’en 2010 il y aurait des changements positifs à la situation
économique. L’année 2010 s’en est avérée une de très grands défis. L’incertitude économique ressentie dans le
monde entier a aussi eu un impact sur notre caisse. Les taux d’intérêts n’ont jamais été aussi peu élevés. La
décision prise par le Conseil d’administration de maintenir un taux d’intérêt plancher avec un taux préférentiel
minimum de 3 % a bien servi l’organisation en atténuant les diminutions futures de notre revenu net. Cette
décision a placé la caisse en désavantage face à la tarification de nos produits pendant toute l’année. Les autres
institutions financières ont été extrêmement agressives dans leurs stratégies de tarification et nous avons subi
quelques pertes commerciales.
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The economic conditions affected our members as some lost their jobs, others took payouts and employers
eliminated overtime. For those members, this made it more difficult for them to make their payments. Our
investors and those on fixed incomes saw their monthly income decrease due to low interest rates. Your Credit
Union worked very hard with members in assisting them during this economic crisis through a variety of work
out arrangements.
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In the midst of this economic crisis we converted our banking floor platform. Your staff was very diligent in
getting intimately familiar with the new eroWorks program. We recognize our efficiency may have suffered as we
learned, but we remain committed to our number one priority of providing excellent service to each one of you.
La situation économique a affecté nos membres, alors que certains ont perdu leur emploi, d’autres ont pris une
retraite anticipée et les employeurs ont éliminé le temps supplémentaire. Ces membres ont donc eu plus de
difficulté à faire leurs paiements. Nos investisseurs et ceux qui ont un revenu fixe ont vu leurs revenus mensuels
diminuer à cause des taux d’intérêts peu élevés. Votre caisse a travaillé très fort avec ses membres pour les aider
durant cette crise économique en acceptant une variété de mesures de paiements appropriées.
Au milieu de cette crise économique, nous avons converti notre plateforme bancaire. Votre personnel a été très
diligent en maitrisant efficacement le nouveau programme eroWorks. Nous reconnaissons que notre efficacité peut
en avoir pris un coup pendant que nous apprenions, mais nous sommes déterminés à nous concentrer sur notre
principale priorité qui est de fournir un excellent service à chacun d’entre vous.
Financial Performance
Even with the challenges identified above, we are proud to report that Beaumont Credit Union had a good year.
The Credit Union hovered around the $200 million assets mark by the end of 2010, representing an increase of
5.41% in assets. We saw a 7.96% growth in our loan portfolio with excellent growth in our commercial loans. We
continued to have a surplus amount of member deposits which are invested at Alberta Central and elsewhere,
earning very low rates of return. Our return is better on loans and we wish to lend out those extra funds. Member
deposits increased by just under $10 million, representing a 5.64% increase over the previous year.
Rendement financier
Même avec les défis identifiés plus haut, nous sommes fiers de vous dire que la Caisse de Beaumont a quand même
eu une bonne année.
La caisse a atteint les 200 millions de dollars d’actif à la fin de 2010, ce qui représente une augmentation de
5,41 % de l’actif. Notre portefeuille de prêts a connu une excellente croissance de 7,96 %, surtout grâce à nos prêts
commerciaux. Nous avons continué d’avoir un surplus dans le montant des dépôts des membres qui sont investis à
Alberta Central et ailleurs, donnant un rendement d’intérêt peu élevé. Notre rendement est meilleur sur les prêts
et nous espérons pouvoir prêter ces fonds supplémentaires. Les dépôts des membres ont augmenté d’un peu moins
de 10 millions de dollars, ce qui représente une augmentation annuelle de 5,64 % par rapport à l’an dernier.
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We commend our staff for the excellent work they did on collections, mitigating losses and working with members
to resolve financial challenges. While our delinquency percentage is higher than previous years, we are confident
that as we dispose of our pending foreclosures, this situation will improve in 2011. Beaumont Credit Union’s
decision to keep a substantial amount of funds in allowance for loan impairment is prudent to mitigate any
potential challenges.
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The Board of Directors declared a 3% dividend on member common shares resulting in a payout of $188,000
in profit share to our members. That rate is better than the average rate of prime charged by other financial
institutions. We completed the year with a surplus of $750,000 before income taxes and member equity presently
stands at $13.3 million or 6.67% of year end assets. Your Board of Directors and staff wish to continue to increase
equity and retained earnings to ensure a strong financial future.
Nous félicitons notre personnel pour l’excellent travail de collection, de réduction des pertes et de coopération
avec les membres pour résoudre leurs problèmes financiers. Même si le taux de délinquance est plus élevé que les
années précédentes, nous sommes confiants que lorsque nous aurons disposé de nos foreclusions à régler, cette
situation s’améliorera en 2011. La décision de la Caisse de Beaumont de garder un montant substantiel de fonds
alloué aux pertes sur les prêts est prudente et permet de limiter tout problème potentiel.
Le Conseil d’administration a déclaré un dividende de 3 % sur les actions ordinaires des membres qui a permis un
paiement de 188 000 $ en partage des profits à nos membres. Ce taux est meilleur que le taux préférentiel moyen
chargé par les autres institutions financières. Nous avons terminé l’année avec un surplus de 750 000 $ avant
impôt sur les revenus et l’avoir des membres se situe à 13,3 millions de dollars ou 6,67 % de l’actif à la fin de
l’année. Votre Conseil d’administration et votre personnel espèrent augmenter l’avoir et les bénéfices non-répartis
pour assurer un avenir financier solide.
Moving Into The Future
Beaumont Credit Union is well positioned to serve you well into the future. Substantial work was completed
to address regulatory changes with the Enterprise Risk Management Program requested by our regulators, the
Deposit Guarantee Corporation. Your Board of Directors worked diligently on several new initiatives.
A substantial amount of work and research has been done to prepare for the IFRS (International Financing
Reporting Standards) mandated for 2012 and beyond.
The Risk, Audit and Finance Committee (RAF) initiated policies and controls to effectively address the risks
inherent in our business. Details can be found in their report. The Governance, Ethics and Human Resources Policy
Committee (GEHR) is responsible for effective governance practices, including protecting the reputation of the
organization by ensuring that policies are in place to provide our employees with fair treatment and meaningful
Vers l’avenir
La Caisse de Beaumont sera bien outillée pour bien vous servir dans le futur. Un important travail a été complété
pour effectuer les changements réglementaires au Programme de gestion du risque d’entreprise exigés par notre
organisme de réglementation, Deposit Guarantee Corporation. Votre Conseil d’administration a travaillé avec
diligence à plusieurs nouvelles initiatives.
Une quantité importante de travail et recherche a été fait pour préparer la transition obligatoire aux Normes
internationales d’information financière (IFRS) à compter de 2012.
Le Comité de vérification, finance et risque (VFR) a développé des politiques et contrôles pour répondre
efficacement aux risques inhérents à notre entreprise. Vous pouvez avoir les détails dans leur rapport. Le Comité
des politiques sur les ressources humaines, l’éthique et la gouvernance (PRHEG) a la responsabilité des pratiques
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employment in a safe and respectful workplace. This group worked on amendments to HR and loan policies,
amendments to job profiles and the development of a “skills matrix” for present and future Board members.
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The third committee of the Board is the Marketing and Member Relations Committee (MMRC). Their roles include:
maximizing member engagement, effective communication to our members, and overseeing of community support
via sponsorships, donations and member appreciation events. We had excellent community events in 2010!
This committee also serves as the nominating committee and has worked hard to present a slate of competent
candidates for your Board of Director positions in 2011.
de gouvernance efficaces, incluant la protection de la réputation de l’organisation en s’assurant que les politiques
sont en place pour fournir à nos employés un traitement équitable et un emploi intéressant dans un milieu de
travail sécuritaire et respectueux. Ce groupe a travaillé aux amendements aux politiques de prêts et de RH, aux
amendements aux profils d’emplois et au développement d’une «matrice des compétences» pour les membres du
Conseil d’administration actuels et futurs.
Le troisième comité du Conseil est le Comité de marketing et des relations avec les membres (CMRM). Son rôle
comprend : maximiser l’engagement des membres, une communication efficace à nos membres, et superviser le
soutien à la collectivité par des commandites, des dons et des activités de reconnaissance pour les membres. Nous
avons eu d’excellentes activités communautaires en 2010! Ce Comité a aussi servi de comité de candidatures et
a travaillé fort pour présenter une liste de candidats compétents pour les postes à pourvoir dans votre Conseil
d’administration en 2011.
As part of our commitment to improved member service, we introduced a number of product enhancements
in 2010. New items included: e-statements, chip cards, enhanced statements, our enhanced website and our
e-commerce letter to businesses. We anticipate continued evolution in our technology and will introduce those
that are of benefit to our members.
Thanks
Our success depends on all our members, our directors, our staff and many corporate partners. We thank these
corporate partners and service providers for the excellent service and assistance they provide.
Pour ce qui est de notre engagement à un service aux membres amélioré, nous avons amélioré un nombre de
produits en 2010. Ces nouveaux produits comprennent : les états de compte en ligne, les cartes à puce, les états de
compte améliorés, notre site Web amélioré et notre bulletin e-commerce aux entreprises. Nous espérons continuer
à évoluer dans notre technologie et nous introduirons les produits qui sont avantageux pour les membres.
Remerciements
Notre succès dépend de tous nos membres, de nos administrateurs, de notre personnel et de plusieurs partenaires
corporatifs. Nous remercions ces partenaires corporatifs et fournisseurs de services pour l’excellent service et l’aide
fournie.
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We also thank the Board, management and staff for their ongoing commitment to Beaumont Credit Union. A very
special thanks to all our staff for the heavy workload handled in 2010. We thank you for your willingness to learn
our computer system and the many other training initiatives. We are very proud of our small but mighty team.
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Finally, we’d like to take this opportunity to thank our member-owners for your patience in 2010, your continued
support and confidence in Beaumont Credit Union. Our commitment is to service. We will continue to strive to
make each banking experience easy, so you can breathe easier! Thank you!
Nous remercions aussi le Conseil d’administration, la direction et le personnel pour leur engagement continu
envers la Caisse de Beaumont. Un merci tout spécial à tout notre personnel pour la lourde charge de travail
effectuée en 2010. Nous vous remercions d’avoir consenti à apprendre notre nouveau système informatique et à
participer à plusieurs autres initiatives de formation. Nous sommes très fiers de notre petite mais imposante et
dynamique équipe.
Enfin, permettez-nous de vous remercier, vous les membres-propriétaires, pour votre patience en 2010, votre
soutien permanent et votre confiance en la Caisse de Beaumont. Notre engagement est de vous rendre service.
Nous continuerons de faire notre possible pour rendre votre expérience bancaire facile, tout en vous rendant la
vie plus agréable! Merci!
Respectfully submitted,
________________________________ _____________________________
Neil FenskeCamille Bérubé
Chair of the Board of Directors
Chief Executive Officer
Respectueusement soumis,
________________________________ _____________________________
Neil FenskeCamille Bérubé
Président du Conseil d’administration
Directeur général
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Credit Committee Report 2010
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The Board of Beaumont Credit Union is assigned lending limits by the Credit Union Deposit Guarantee Corp.
In turn, the Board delegates responsibility for the Credit Committee function to senior management. The Credit
Committee is responsible for ensuring that loans are made in keeping with the lending policies and procedures of
the credit union. Loans in excess of the lending limits assigned to Beaumont Credit Union are forwarded to Credit
Union Deposit Guarantee Corp. for approval.
In 2009-2010, Beaumont Credit Union experienced an increase in loans of $11,888,717 or 7.96%.
Rapport du Comité de crédit 2010
L’organisme “Credit Union Deposit Guarantee Corp.” impose des limites pour les prêts au Conseil d’administration
de la Caisse de Beaumont. À son tour, le Conseil délègue la responsabilité au Comité de crédit qui travaille avec
les cadres supérieurs. Le Comité de crédit a la responsabilité de s’assurer que les prêts sont faits en respectant les
politiques et procédures de la caisse. Les prêts qui excèdent les limites imposées à la Caisse de Beaumont sont
référés à “Credit Union Deposit Guarantee Corp.” pour approbation.
En 2009-2010, La Caisse de Beaumont a eu une augmentation de ses prêts de 11 888 717 $ ou 7,96 %.
2010
2009
Number of loan approvals for which funds were drawn
449
532
Increase/
(Decrease)
(83)
Dollar value of funded loans
$ 39,671,937
$ 33,749,732
$ 5,922,205
Outstanding loans including accrued interest
$ 161,299,511
$ 149,410,794
$ 11,888,717
Credit limits drawn
$ 29,181,566
$ 26,326,462
$ 2,855,104
Delinquency
2.11%
0.54%
1.57%
2010
2009
Augmentation
(Diminution)
Nombre de prêts assurés pour lesquels les fonds ont été retirés 449
532
(83)
Valeur en dollar des prêts accordés
39 671 937 $
33 749 732 $
5 922 205 $
Prêts non-remboursés incluant l’intérêt accumulé
161 299 511 $
149 410 794 $
11 888 717 $
Retrait des limites de crédit
29 181 566 $
26 326 462 $
2 855 104 $
Délinquance
2,11 %
0,54 %
1,57 %
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The 2009-2010 year continued to be a real challenge for Beaumont Credit Union Ltd. in the growth of our loan
portfolio. More aggressive pricing of loans and mortgages and the increased competitors in our community played
a key role in the results.
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We saw an increase of personal bankruptcies and mortgage foreclosures during the year. At year end one large
delinquent commercial loan accounted for 1.24% of the delinquency. We are confident as these properties are
disposed of, that delinquency will return to better levels.
Pricing of mortgage rates were extremely competitive. Financial institutions offered lower rates than Beaumont
Credit Union Ltd. was able to offer from time to time. This pricing strategy resulted in mortgage payouts during
the year. We will continue to monitor pricing strategies.
L’année 2009-2010 a continué d’être un réel défi pour la Caisse de Beaumont en essayant d’augmenter le portefeuille
de prêts. Une tarification des prêts et hypothèques plus agressive et l’augmentation du nombre de compétiteurs
dans notre collectivité ont joué un rôle clé dans les résultats.
Nous avons constaté une augmentation des faillites personnelles et des saisies hypothécaires pendant l’année. Un
gros prêt commercial délinquant représentait, à la fin de l’année, 1,24 % du total de délinquance. Nous sommes
confiants que lorsque nous aurons disposé de ces propriétés, le taux de délinquance retournera à un niveau plus
normal.
La tarification des taux hypothécaires a été extrêmement compétitive. Les institutions financières offraient des
taux plus bas que ceux que la Caisse de Beaumont pouvait offrir de temps à autre. Cette stratégie de tarification
a donné comme résultat le paiement intégral d’hypothèques durant l’année. Nous continuons donc de surveiller
ces stratégies de tarification.
Beaumont Credit Union Ltd. will continue to make a concerted effort to solicit existing and potential new
members in order to continue to grow our loan portfolio. The utilization of excess liquidity should generate
improved profitability.
On behalf of the Credit Committee, I would like to thank all Credit Union staff for their hard work and dedication
during the past year.
Dawn Weisner
Beaumont Credit Union
La Caisse de Beaumont continuera de se mobiliser pour solliciter les membres actuels ou les nouveaux membres
potentiels pour faire fructifier notre portefeuille de prêts. L’utilisation de l’excès de liquidité devrait améliorer la
rentabilité.
Au nom du Comité de crédit, je remercie tout le personnel de la caisse pour son travail ardu et son dévouement
au cours de la dernière année.
Dawn Weisner
Gérante des prêts à la consommation
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Risk, Audit and Finance Committee
Report 2010
42
The Risk, Audit and Finance (RAF) Committee consists of four directors appointed by the Board and is a requirement of
the Credit Union Act. The four directors for the fiscal year ending October 31, 2010 were Marg Bouchard, Dan Chalifoux,
Lois Watson and Gérard (Gerry) Goudreau.
The RAF Committee oversees the design and implementation of internal controls to support the risk management
framework, the integrity of financial reporting and compliance with regulatory matters.
Rapport du Comité de vérification,
finance et risque (VFR) 2010
Le Comité de vérification, finance et risque (VFR) est composé de quatre administrateurs nommés par le Conseil
d’administration et est une exigence de la Loi albertaine Credit Union Act. Les quatre administrateurs pour l’exercice
financier se terminant le 31 octobre 2010 étaient Marg Bouchard, Dan Chalifoux, Lois Watson et Gérard (Gerry)
Goudreau.
Within the ERM and control frameworks, the RAF Committee assists the Board in fulfilling its oversight responsibilities
regarding safeguarding of assets and member deposits, compliance with laws, regulations and governing policies,
integrity of management and financial information, efficiency and effectiveness of operations, and independence of
the external and internal review functions.
Hawkings Epp Dumont LLP took on the role of performing our internal reviews and our year end audit for the year
ending October 31, 2010. The Committee has contracted to continue utilizing Hawkings Epp Dumont LLP for the
internal reviews and for the year end external audit for fiscal 2011.
Le Comité de VFR supervise la conception et la mise en place des contrôles internes pour appuyer le cadre de la
gestion du risque, l’intégrité des rapports financiers et le respect des questions de règlementation.
Dans la GRE et les cadres de contrôle, le Comité de VFR aide le Conseil d’administration à s’acquitter de ses
responsabilités de surveillance concernant la protection des actifs et des dépôts des membres, le respect des lois,
des politiques de règlementation et de gouvernance, l’intégrité de l’information financière et administrative et le
rendement et l’efficacité des opérations et l’indépendance des fonctions de vérification interne et externe.
La firme de comptables agréés Hawkings Epp Dumont LLP a fait nos révisions internes, la vérification de fin d’année
et les états financiers de l’exercice financier se terminant le 31 octobre 2010. Le Comité a renouvelé le contrat
de la firme Hawkings Epp Dumont LLP pour les révisions internes et la vérification externe de la fin d’année de
l’exercice financier 2011.
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Prior to the end of fiscal 2010, Beaumont Credit Union added a Vice President of Finance and Risk Officer to our staff.
The addition of this position creates a resource to focus on ERM and a prudent yet maximized management of our
future earnings. Welcome Lori Archibald, MBA!
44
Our Credit Union staff did significant work in evaluating the impact that IFRS (International Financial Reporting
Standards) will have on Beaumont Credit Union. Further analysis and preparatory work will be underway in 2011 to
ensure a smooth, full transition to IFRS reporting in 2012.
Avant la fin de l’exercice financier 2010, la Caisse de Beaumont a ajouté une vice-présidente, agent financier et de
risque à son personnel. L’ajout de ce poste crée une ressource pour se concentrer sur la GRE, une gestion prudente
voire maximisée des nos revenus à venir. Lori Archibald, MBA, bienvenue!
Le personnel de notre caisse a fait un magnifique travail d’évaluation de l’impact que les IFRS (Normes internationales
d’information financière) auront sur la Caisse de Beaumont. De l’analyse plus approfondie et un travail préparatoire
seront faits en 2011 pour assurer une transition complète et sans heurt à la production des rapports selon les IFRS
en 2012.
The RAF committee would like to thank the staff, management, and auditors for their assistance and recommendations
through this past year.
Submitted by
Marg Bouchard
Chairperson, Risk Audit and Finance Committee
Le Comité VFR remercie le personnel, la direction, et les vérificateurs pour leur aide et recommandations pendant
la dernière année.
Marg Bouchard
Présidente, Comité de vérification, finance et risque
45
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2010
FINANCIAL STATEMENTS
FOR THE YEAR ENDED OCTOBER 31, 2010
HAWKINGS EPP DUMONT llp Chartered Accountants
AUDITORS’ REPORT
To the Members
Beaumont, Alberta
We have audited the accompanying balance sheet of Beaumont Credit Union Ltd. (the “Credit Union”) as at October 31,
2010 and the related statements of income, retained earnings, and cash flows for the year then ended. These financial
statements are the responsibility of the Credit Union’s management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the Credit
Union as at October 31, 2010 and the results of its operations and cash flows for the year then ended in accordance with
Canadian generally accepted accounting principles.
Edmonton, Alberta
November 26, 2010HAWKINGS EPP DUMONT LLP
Chartered Accountants
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MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING
To the Members
Management has the responsibility for preparing the accompanying financial statements and ensuring that all information
in the Annual Report is consistent with these statements. This responsibility includes selecting appropriate accounting
principles and making objective judgments and estimates in accordance with Canadian generally accepted accounting
principles and the requirements of the Credit Union Act.
In discharging its responsibility for the integrity and fairness of the financial statements, as well as for the accounting
systems from which they are derived, management maintains the necessary systems of internal controls designed to
provide assurance that transactions are authorized, assets are safeguarded and proper records are maintained.
The ultimate responsibility to members for the financial statements lies with the Board of Directors. The Board appoints
an Audit Committee to review financial statements with management in detail and to report to the Board prior to its
approval to publish the financial statements.
The Board appoints external auditors to audit the financial statements and to meet separately with both the Audit
Committee and management to review their findings. The external auditors report directly to the members. The external
auditors have full and free access to the Audit Committee to discuss their audit, as well as their findings concerning the
integrity of the Credit Union’s financial reporting and the adequacy of its systems of internal controls.
Beaumont, Alberta
November 26, 2010Camille Bérubé
Chief Executive Officer
BALANCE SHEET AS AT OCTOBER 31, 2010
2010
2009
Assets
Cash $ 10,788,606
Investments and Accrued Interest (Note 3)
Income Taxes Receivable
$ 4,556,594
22,391,620 30,145,078
28,974
-
Loans to Members and Accrued Interest (Note 4) 161,299,511 149,410,794
Other Assets 1,158,926
1,118,976
Property and Equipment (Note 5)
3,872,147
4,064,621
$199,539,784
$189,296,063
$
$
Liabilities
Accounts Payable and Accrued Liabilities
Income Taxes Payable 173,100
-
173,750
37,317
Members’ Deposit Accounts and Accrued Interest (Note 7)
186,062,520
176,121,302
186,235,620
176,332,369
Members’ Equity
Allocation Distributable (Note 8)
188,837
138,586
Common Shares (Note 9)
6,266,709
6,499,402
Retained Earnings
6,848,618
6,325,706
13,304,164
12,963,694
$199,539,784
$189,296,063
49
ON BEHALF OF THE BOARD:
DIRECTOR
DIRECTOR
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STATEMENT OF INCOME FOR THE YEAR ENDED OCTOBER 31, 2010
2010
2009
Financial Income
Interest from members’ loans $ 8,100,874
$ 8,659,649
Investment income
254,934
324,957
8,355,808
8,984,606
Financial Expenses
Interest on members’ deposit accounts
4,986,254
5,428,027
Interest on financing 3,484
61
4,989,738
5,428,088
Financial Margin 3,366,0703,556,518
Provision for Loan Impairment (Note 4)
11,452
(13,868)
Financial Margin after Provision for Loan Impairment3,354,6183,570,386
Other Income
1,167,186
1,100,018
Gross Margin4,521,8044,670,404
Operating Expenses (Schedule I)
3,768,676
3,781,729
Income Before Income Taxes
753,128
888,675
Income Taxes (Recovery) (Note 10)
Current 27,462199,068
Future (recovery)
40,353
(33,480)
67,815
165,588
Net Income
$685,313
$723,087
STATEMENT OF RETAINED EARNINGS FOR THE YEAR ENDED OCTOBER 31, 2010
20102009
Balance, Beginning of Year
$6,325,706
$5,738,549
Add:
Net income685,313723,087
Tax recovery on common share dividends
26,436
36,133
7,037,4556,497,769
Less:
Dividends on common shares (Note 8)
(188,837)
(172,063)
Balance, End of Year
$6,848,618
$6,325,706
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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED OCTOBER 31, 2010
20102009
Operating Activities
Net income
$685,313
$723,087
Amortization230,414246,005
Net decrease (increase) in other assets
(39,950)
(393,136)
Net increase (decrease) in accounts payable and accrued liabilities (650)
(172,105)
Net increase (decrease) in income taxes payable
(66,291)
(39,608)
808,836
364,243
Financing Activities
Increase in members’ common shares, net of redemptions
(232,693)
(259,287)
Increase (decrease) in patronage allocation distributable
50,251
(400,875)
Dividends on common shares, net of tax
(162,401)
(135,930)
Net increase in members’ deposit accounts and accrued interest
9,941,219
5,415,491
9,596,376
4,619,399
Investing Activities
Purchase of property and equipment (37,941)
Net decrease (increase) in loans to members and accrued interest(11,888,716)
(383,720)
7,175,512
Net decrease (increase) in investments and accrued interest
7,753,457
(12,224,171)
(4,173,200)
(5,432,379)
Change in Cash During the Year
6,232,012
(448,737)
Cash, Beginning of Year
4,556,594
5,005,331
Cash, End of Year
$10,788,606
$4,556,594
Interest Received During the Year
$8,282,149
$9,136,012
Interest Paid During the Year
$5,171,604
$5,536,060
Income Taxes Paid During the Year
$67,317
$202,543
NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2010
1. NATURE OF OPERATIONS
The Credit Union is incorporated under the Credit Union Act of the Province of Alberta (the “Province”) and operates one branch in the
community of Beaumont and surrounding area.
The Credit Union Deposit Guarantee Corporation (the “Corporation”), a provincial corporation, guarantees the repayment of all
deposits with Alberta credit unions, including accrued interest. The Credit Union Act provides that the Province will ensure that the
Corporation carries out this obligation.
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with Canadian generally accepted accounting principles. The precise
determination of many assets and liabilities is dependent on future events. As a result, the preparation of financial statements for a
period involves the use of estimates and approximations which have been made using careful judgment. Actual results could differ
from those estimates and approximations. These financial statements have, in management’s opinion, been properly prepared within
reasonable limits of materiality and within the framework of the accounting policies summarized below:
(a) Investments
Term deposits are classified as held-to-maturity and are recorded at cost or amortized cost, adjusted to recognize other
than a temporary impairment in the underlying value.
Shares in Credit Union Central are classified as available-for-sale. As there is no market for these shares, their fair value is estimated
at amortized cost.
Interest income is recorded as earned and gains and losses on the sale of investments are recorded in income on disposition.
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2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(b) Loans to Members
The Credit Union records loans to members at the lower of principal plus accrued interest and net realizable value.
The Credit Union recognizes interest income from loans on the accrual basis for all loans not classified as impaired.
A loan is classified as impaired when there is reasonable doubt as to the timely collection of some portion of principal or interest.
A loan where payment of interest is contractually past due 60 days is classified as impaired unless there is no reasonable doubt as
to the collectibility of all interest and principal. When a loan is classified as impaired, recognition of interest income in accordance
with the original loan application ceases. Any subsequent payments received on an impaired loan are applied to reduce the
recorded investment in the loan. Loans or portions of loans considered uncollectible are written-off.
(c) Allowance for Loan Impairment
The Credit Union maintains an allowance for loan impairment in an amount considered adequate to absorb credit-related losses in
its loan portfolio. The allowance is increased by a provision for loan impairment which is charged to income and reduced by writeoffs, net of recoveries. The allowance for loan impairment consists of:
A specific allowance on an individual loan basis, to reduce the carrying book values to estimated realizable values. Estimated
realizable values are determined by discounting the expected future cash flows at the effective interest rate inherent in the loans.
When the amounts and timing of future cash flows cannot be reliably established, estimated realizable values are determined by
reference to market prices for the loans or their underlying security; and
A general allowance when evidence of impairment within groups of loans exists but is not sufficient to allow identification of
individual impaired loans. Impairment is estimated using a formula based on historical credit loss experience, known risks in the
portfolio and current economic conditions and trends. As individual impaired loans are identified, a specific provision is assigned
to that loan and the collective provision is adjusted accordingly.
2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(d) Property and Equipment
Property and equipment are recorded at cost. Amortization is recorded in the accounts at the following annual rates and methods:
Building
2.5%Straight-line
Parking lot
6.67%
Straight-line
Furniture and equipment
20%
Straight-line
Security equipment
10% and 20%
Straight-line
Computer equipment and software
10% and 25%
Straight-line
(e) Income Taxes
The Credit Union follows the asset and liability method of accounting for income taxes. Under this method, future income tax
assets and liabilities are recognized for the expected future income tax consequences attributable to differences between the
financial statement carrying amount of existing assets and liabilities and their respective income tax bases. Future tax assets and
liabilities are measured using tax rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled.
(f) Derivative Financial Instruments
The Credit Union enters into equity-linked option contracts to fix costs on deposit products which are linked to movements in
equity market indexes. Premiums paid to enter into these contracts are recorded in other assets and are amortized over the contract
life.
Notional principal amounts, upon which payments are based, are not indicative of the credit risk associated with derivative
instruments. The credit risk arising from transactions is the risk due to counter parties failing to meet their financial obligations,
such as making payments to the Credit Union to offset amounts paid to depositors based on the performances of the equity market
indexes or the increases in prevailing interest rates. The Credit Union manages this risk by only entering into such arrangements
with Credit Union Central Alberta Ltd. (“Central”).
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3. INVESTMENTS AND ACCRUED INTEREST
20102009
Credit Union Central
Term deposits
$16,735,000
$17,998,000
Shares
1,892,962
1,842,000
18,627,96219,840,000
Other term deposits
3,680,000
10,180,000
22,307,96230,020,000
Accrued interest receivable
83,658
125,078
$22,391,620
$30,145,078
All term deposits mature within one year and are classified as held-to-maturity. The shares in Central are classified as available-forsale. As there is no market for these shares, their fair value is estimated at amortized cost. As required by the Credit Union Act, the
Credit Union holds investments in Central to maintain its statutory liquidity requirements.
4. LOANS TO MEMBERS AND ACCRUED INTEREST
Consumer loans
Recorded
Loan
Specific
GeneralNet Carrying Value
AllowanceAllowance
2010
2009
$
10,781,264$
141,510$
50,000$
10,589,754$
9,925,915
Residential mortgages
75,098,795
218,351
-
74,880,444
77,747,350
Commercial loans
12,711,370
96,408
300,000
12,314,962
7,466,754
Commercial mortgages
33,946,840
400,000
300,000
33,246,840
26,786,890
Agricultural loans
109,075
-
-
109,075
105,127
Agricultural mortgages
735,739
-
-
735,739
756,713
Authorized and
unauthorized overdrafts
29,237,665
176,470
64,037
28,997,158
26,250,637
162,620,748
1,032,739
714,037
160,873,972
149,039,386
Accrued interest
478,447
52,908
-
425,539
371,408
$163,099,195
$1,085,647
$714,037
$161,299,511
$149,410,794
Details of the changes in the allowance for loan impairment are as follows:
20102009
Balance, beginning of year
$ 1,870,782
Provision for loan impairment, net of recoveries
Loans written off during the year
Balance, end of year
$ 2,025,180
11,452
(13,868)
(135,458)
(140,530)
$1,746,776
$1,870,782
There were $4,291,871 (2009 - $1,445,900) in impaired loans at the year end.
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5. PROPERTY AND EQUIPMENT
Land
AccumulatedNet Book Value
CostAmortization 2010
2009
$
276,999$ -$
276,999$
276,999
Building
3,783,454
770,635
3,012,819
3,107,567
Parking lot97,90062,00335,89742,423
Furniture and equipment
553,213
473,307
79,906
123,597
Security equipment
201,928
130,888
71,040
68,160
Computer equipment and software
1,038,582
643,096
395,486
445,875
$5,952,076
$2,079,929
$3,872,147
$4,064,621
6. OPERATING DEMAND LOAN AND REVOLVING TERM LOAN
The Credit Union has an approved operating demand loan and a revolving term loan with Credit Union Central (“Central”) which are
secured by a general assignment of book debts and assignment of investments and deposits held at Central. The authorized limit on
the operating demand loan is $6,000,000, including a U.S. dollar component equivalent to $600,000 CDN. The authorized limit on the
revolving term loan is $12,550,000. The operating demand loan bears interest at Central’s prime rate minus 0.50%. The U.S. dollar
component bears interest at U.S. base rate plus 0.50%. The revolving term loan will bear interest at prime less 1.00%. The Credit Union
may elect to fix the interest rate depending on the term. At October 31, 2010, the Credit Union had no balance outstanding on either
its operating demand loan or its revolving term loan.
7. MEMBERS’ DEPOSIT ACCOUNTS AND ACCRUED INTEREST
20102009
Term deposits
$104,747,466
$104,486,048
Demand deposits40,400,83531,748,671
Registered Retirement Savings Plans (“RRSP”) 27,241,044 26,416,697
Daily savings7,402,7507,415,107
Registered Retirement Income Funds (“RRIF”)
2,473,898
2,416,108
Special savings1,492,1641,457,414
Tax Free Savings Accounts
Property tax accounts
612,898
57,485
299,913
65,498
184,428,540174,305,456
Accrued interest payable
1,633,980
1,815,846
$186,062,520
$176,121,302
Concentra Financial Services Association is the trustee of the RRSP’s, the RRIF’s and the Tax Free Savings Accounts offered to members.
Under an agreement with Concentra, members’ contributions to the plans, as well as income earned, are deposited in the Credit Union.
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8. ALLOCATION DISTRIBUTABLE
As at October 31, 2010, the Board of Directors declared an allocation to its members.
The dividends will be paid during November 2010 to each member’s common share account on record as at October 31, 2010.
Details of the allocation are as follows:
20102009
3.0% Dividends on common shares (2009 - 2.65%)
$
188,837
$
172,063
Dividends paid March 2009
-
(33,477)
$188,837
$138,586
9. COMMON SHARES
The Credit Union Act identifies a class of equity shares, known as common shares, having the following characteristics:
i) an unlimited number may be issued;
ii) a par value of $1, but fractional shares may be issued;
iii)transferable only in restricted circumstances;
iv)non-assessable; and
v)redemption of common shares is at par value and is at the discretion of the Credit Union, subject to the restrictions contained
in the Credit Union Act and Regulations.
Credit Union policy requires all members to make a minimum investment based upon the following criteria:
Regular member account
$25
Trust account
$5
Member with a loan account
$100
Nonprofit organization account
$0
The Credit Union Deposit Guarantee Corporation does not guarantee common shares which represent “at risk” capital.
20102009
Balance, beginning of year
$ 6,499,402
$ 6,758,689
Member redemptions, net of contributions
(403,426)
(794,665)
Prior year’s allocation paid to members
172,063
539,461
Adjustment to prior year’s allocation
(1,330)
(4,083)
Balance, end of year
$6,266,709
$6,499,402
10. INCOME TAXES
20102009
Current
$ 27,462
$199,068
Future
40,353
(33,480)
$67,815
$165,588
Income tax expense differs from the amount that would have been expected if the reported income before income taxes was subject to
the combined federal and provincial statutory income tax rate for the year. The difference between the expected income tax expense
and the actual is as follows:
14.00%
17.39%
Expected tax rate
Income taxes at statutory rate
$
105,438
$
162,951
Add (deduct)
Temporary differences
(primarily due to differences between tax
treatment and accounting treatment of loan
allowance and property and equipment)
(78,227)
35,933
Non-deductible expenses251184
Future tax (recoverable) 40,353
(33,480)
$67,815
$165,588
Actual tax rate
9.00%
18.63%
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11. RELATED PARTY TRANSACTIONS
Directors and management of the Credit Union have loans from the Credit Union totalling $1,904,920 which is 1.18% of total loans
(2009 – $1,499,163 which is 1.01% of total loans). The Credit Union, in accordance with its policy, grants loans to its management and
staff at rates from 0% to 3% below member rates. Directors pay regular member rates on loans. All loans are in good standing.
Directors and management of the Credit Union have deposits at the Credit Union totalling $2,754,750 which is 1.49% of total deposits
(2009 – $4,550,249 which is 2.61% of total deposits). These accounts are maintained under the same terms and conditions as accounts
of other members, and are included in member deposits. Management and staff have access to personal chequing accounts which do
not incur service charges.
Amounts paid annually to directors range from $1,800 to $3,352 with an average of $2,662.
12. COMMITMENTS
(a) Option Agreements
The Credit Union has $6,687,832 (2009 – $5,747,930) of Index-Linked RRSP deposits outstanding to its members at
October 31, 2010. These deposits mature from February 2011 to February 2015 and pay bonus interest to the depositors,
at the end of the term, based upon the performance of the related index. The Credit Union has entered into option
agreements with Credit Union Central (“Central”) to offset the exposure on these deposits related to the performance
of the underlying index. Consequently, at the end of the term, the Credit Union will receive payments from Central
which will offset the amounts that will be paid to the depositors based on the performance of the underlying index.
The option agreements with Central are recorded in other assets at cost less accumulated amortization of $434,899
(2009 – $431,516). Amortization is calculated on a straight-line basis over the term of the deposits and amounted to
$181,744 (2009 – $161,080).
(b) Leases
The Credit Union is obligated under lease contracts for office equipment. Basic lease payments are as follows:
2011$16,543
2012
15,557
2013
3,150
(c) Credit Commitments
In the normal course of business, the Credit Union enters into various commitments to meet the credit requirements of its
members. These credit arrangements are subject to the Credit Union’s normal credit standards and collateral may be obtained where
appropriate. The contract amounts for these commitments as set out below represent the maximum exposure to the Credit Union
should the contracts be fully drawn, and any collateral held proves to be of no value. As many of these arrangements will expire
or terminate without being drawn upon, the contract amounts do not necessarily represent the future cash requirements. Such
commitments, which are not included in the Balance Sheet, include:
i)Guarantees and standby letters of credit are issued at the request of the member in order to secure the member’s payment
or performance obligations to a third party. These guarantees represent an irrevocable obligation of the Credit Union to
make payments to third parties in the event that a member is unable to meet their contractual financial or performance
obligations, without investigation as to the validity of the beneficiary’s claim against the member. In the event of a call on
such commitments, the Credit Union has recourse against the members. Generally, the term of these guarantees does not exceed
three years.
ii)Commercial letters of credit which require the Credit Union to honour drafts presented by third parties upon completion of
specific activities. Commitments to extend credit which represent undertakings to make credit available in the form of loans or
other financing for specific amounts and maturities, subject to certain conditions and include recently authorized credit not
yet drawn down and credit facilities available on a revolving basis.
20102009
Letters of guarantee
$
485,317
$
322,957
Commitments to extend credit
Original terms to maturity of 1 year or less 15,940,440 15,549,291
Original terms to maturity of 1 year or more
5,333,265
6,431,711
$21,759,022
$22,303,959
63
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ENTS
L STATEM
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13. RISK MANAGEMENT
The use of financial instruments exposes the Credit Union to credit risk, market risk and liquidity risk. The following is a description
of those risks and how the Credit Union manages exposure to them.
Credit Risk
Credit risk is the risk that financial loss will be incurred due to the failure of a counterparty to discharge its contractual commitment or
obligation to the Credit Union arising from financial instruments, such as loan balances, credit commitments and letters of guarantee.
The Credit Union’s credit risk management practices include ongoing assessment, analysis and monitoring of financial information
related to individual borrowers included in the Credit Union’s loan portfolio.
Refer to Note 4 and Note 12 (c) for information on credit exposure and credit quality.
Market Risk
Market risk is the risk that the Credit Union may incur a loss due to adverse changes in interest rates, foreign exchange rates or equity
and commodity market prices arising from financial instruments, such as investments, loans and deposit balances.
The Credit Union’s market risk management practices include day-to-day analysis and monitoring of market interest rates and foreign
exchange rates.
Refer to Note 15 for more information on interest rate risk.
Liquidity Risk
Liquidity risk is the risk of having insufficient financial resources to meet either the Credit Union’s cash and funding requirements,
statutory liquidity requirements, or both.
Under the Credit Union Act of Alberta the Credit Union must maintain a minimum liquidity ratio of 6% of total assets. The Credit
Union’s liquidity ratio was 8.43% at October 31, 2010 (2009 – 8.9%).
The Credit Union’s liquidity risk management practices include daily monitoring of expected cash inflows and outflows and analysis
of loan and deposit maturities.
14. CAPITAL MANAGEMENT
The Credit Union manages capital to ensure that it meets the minimum levels set out in the Credit Union Act of Alberta (the “Act”)
and to support the continued growth of the Credit Union and build member value.
The Credit Union’s capital includes:
20102009
Retained earnings
$6,848,618
$6,325,706
Common shares6,266,7096,499,402
Qualifying Central retained earnings (a)
342,832
289,417
$13,458,159
$13,114,525
(a) The Credit Union’s portion of qualifying retained earnings of Credit Union Central of Alberta (“Central”) as calculated and provided
by Central.
The Credit Union is required under the Act to have a capital balance that is equal to or exceeds the greater of:
4% of total assets; and
8% of risk weighted assets.
Credit Union management measures the adequacy of the Credit Union’s capital to these requirements on an ongoing basis and
reports the results to the Board of Directors and Credit Union Guarantee Corporation.
As at October 31, 2010, the Credit Union’s total capital as a percent of assets was 6.6% (2009 – 6.8%) and the total capital as
a percent of risk weighted assets was 11.8% (2009 – 12.6%). Therefore, the Credit Union has exceeded its minimum capital
requirement at October 31, 2010.
65
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15. INTEREST RATE RISK
Interest rate risk refers to the potential impact of changes in interest rates on the Credit Union’s earnings when maturities of its
financial liabilities are not matched with maturities of its financial assets. The interest rate risk is being managed within prudent
guidelines.
The following table summarizes amounts by maturity dates:
As at October 31, 2010
Floating
Within
1 to 5 Non-Rate
Rate 1 Year Years
SensitiveTotal
Assets
Cash
$
10,277,000 $- $-
$
512,000
$
10,789,000
Effective Yield0.86%0.00%0.00%0.00%0.82%
Investments1,893,00016,735,0003,680,000
-22,308,000
Effective Yield1.62%0.60%2.25%0.00%0.96%
Member loans61,642,50021,454,50079,524,000(1,747,000)160,874,000
Effective Yield5.71%5.31%5.49%0.00%5.61%
Other
-
-
-
5,569,000
5,569,000
73,812,500
38,189,500
83,204,000
4,334,000
199,540,000
Liabilities
Deposits 38,704,00059,019,00073,933,00012,773,000184,429,000
Effective Yield
0.34%3.50%3.54%0.00%2.61%
Equity ---
13,304,000
13,304,000
Other
-
-
-
1,807,000
1,807,000
38,704,000
59,019,000
73,933,000
27,884,000
199,540,000
Net gap
$35,108,500
$(20,829,500)
$9,271,000
$(23,550,000)
$-
$38,599,000
$7,056,000
$(14,858,000)
$(30,797,000)
$-
As at October 31, 2009
Net gap
16. FAIR VALUE OF FINANCIAL INSTRUMENTS The amounts are designed to approximate the fair values of the Credit Union’s financial instruments using the valuation methods and
assumptions described below. The estimated fair values disclosed do not reflect the value of items that are not considered financial
instruments, such as property and equipment. Since many of the Credit Union’s financial instruments lack an available trading market,
the fair values represent estimates of the current market value of instruments, taking into account changes in market rates that have
occurred since their origination. Due to the estimation process and the need to use judgment, the aggregate fair value amounts should
not be interpreted as being necessarily realizable in an immediate settlement of the instruments.
The carrying value of most of the Credit Union’s financial instruments is not adjusted to reflect changes in interest rates, as it is the
Credit Union’s intention to hold the instruments to maturity.
The following methods and assumptions are used to estimate the fair market value of financial instruments:
i)The fair values of cash, other assets and other liabilities are assumed to approximate book values, due to their short-term
nature.
ii)The estimated fair values of floating-rate member loans and member deposits are assumed to equal book value as the interest
rates automatically reprice to market.
iii)The estimated fair values of fixed-rate investments, member loans and fixed-rate member deposits are determined by discounting
the expected future cash flows of these investments, loans and deposits at current market rates for products with similar terms
and credit risks.
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Estimated fair values of financial instruments are summarized as follows:
2010
2009
Fair
Book
FV overFair
Book
FV over
Value (FV)
Value (BV) BV
Value (FV)
Value (BV) BV
Assets
Cash
$
10,789,000$
10,789,000$ -$
4,557,000$
4,557,000$ -
Investments
22,330,000
22,308,000
22,000
30,059,000
30,020,000
39,000 Members’ loans
161,843,000
160,874,000
969,000
151,561,000
149,039,000
2,522,000
Other
5,569,000
5,569,000 -
5,680,000
5,680,000 -
Less:
Liabilities
Members’ deposits
186,885,000
184,429,000
2,456,000
179,458,000
174,305,000
5,153,000
Other liabilities
1,807,000
1,807,000
-
2,027,000
2,027,000
-
Equity
$11,839,000
$13,304,000
$(1,465,000)
$10,372,000
$12,964,000
$(2,592,000)
17. SEGMENTED INFORMATION
The Credit Union operates principally in personal, commercial, and agricultural banking in Alberta through its location in Beaumont.
18. FUTURE ACCOUNTING CHANGES
In March 2009, the Canadian Accounting Standards Board (“AcSB”) reconfirmed that IFRS will replace Canadian GAAP for publicly
accountable enterprises for periods beginning on or after January 1, 2011. Credit Unions are specifically included in the definition of
publicly accountable enterprises and are required to prepare October 31, 2012 financial statements, including comparative information
for 2011, in compliance with IFRS.
The Credit Union has implemented its IFRS conversion plan and does not anticipate any significant changes to its plan. The Credit
Union has completed its identification of major identified differences between its current accounting policies and IFRS. It has not yet
finalized its decisions with respect to accounting policy choices available under IFRS 1-First-time Adoption of International Financial
Reporting Standards and other individual standards.
Changes to the IFRS accounting standards are expected throughout 2011. The Credit Union will continue to monitor these changes and
their impact on the financial statements.
69
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L STATEM
FINANCIA
SCHEDULE OF
OPERATING EXPENSES
FOR THE YEAR ENDED OCTOBER 31, 2010
SCHEDULE 1
20102009
Personnel $1,790,344
$1,797,315
Occupancy
Maintenance, utilities, and janitorial
126,419
116,952
Amortization
101,275
101,274
Other 28,55130,180
Property taxes
19,969
19,323
276,214
267,729
Security
Deposit guarantee assessment
304,818
303,326
Bonding (recovery)
29,684
(5,736)
Amortization
15,932
21,567
350,434
319,157
Organization
Central dues61,08856,186
Other 23,31915,819
Directors and committee remuneration
19,413
19,595
Annual meeting11,60613,647
Central annual general and other meetings
5,878
3,499
Directors and committee travel
1,515
2,550
122,819
111,296
(CONT’D)
71
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REPORT
ENTS
L STATEM
FINANCIA
SCHEDULE 1 CONTINUED
2010
2009
General
Computer services
393,541
368,006
Cash, service charges, and other fees
242,698
224,257
Advertising and marketing
159,673
133,841
Amortization
113,208 123,164
Professional fees
74,372
73,040
Courier and postage
62,513
70,581
Equipment leases, repairs and maintenance
48,014
46,592
Office and communication
45,195
52,773
Other, including EroWorks conversion costs in 2009
33,819
137,578
Insurance
26,599
31,482
Memberships and subscriptions
17,228
10,824
Staff travel
12,005
14,094
1,228,865
1,286,232
$3,768,676
$3,781,729
65

annual report - Beaumont Credit Union

Transcription

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