JPSCU AR 2018 finan web

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NOTES TO THE FINANCIAL STATEMENTS For the year ended 31st December 2018 (Expressed in Jamaican Dollars unless otherwise indicated) 4. Financial Instruments & Financial Instruments Risk Management (cont'd): (e) Capital Management: In determining the Credit Union's capital base (Institutional Capital), the Institutional Capital of the acquired Credit Unions, (see below), which merged with JPS & Partners Co-operative Credit Union Limited was included. As at the dates of transfer of engagements/amalgamations, the relevant Credit Unions had Institutional Capital as stated below which comprised the following balances: Kirkvine Co-operative Credit Union Limited Ewarton Co-operative Credit Union Limited Collector General Co-operative Credit Union Limited Merger Date Statutory Reserve Retained Earnings Reserve General Reserve $ $ $ 1st Aug 2013 60,752,660 34,745,029 - 1st Sept 2013 109,323,595 - - 1st Oct 2016 43,481,088 10,000,000 - JPS & Partners Co-operative Credit Union 42
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31st December 2018 (Expressed in Jamaican Dollars unless otherwise indicated) 5. Liquid Assets: 2018 2017 $ $ a) Placement with Other Financial Institutions 553,442,200 781,023,112 b) Cash and Balances with JCCUL 369,425,994 76,696,512 c) JCCUL CUETS Investments 2,145,465 2,116,813 925,013,659 859,836,437 d) Foreign Currency Deposit Account 20,888,863 20,241,472 945,902,522 880,077,909 a) b) This represents reverse repurchase agreements collateralised by Government of Jamaica securities. These agreements may result in credit exposure in the event that the counterparty to the transaction is unable to fulfill its collateral obligations. At 31st December 2018, the Credit Union held securities totalling $519,707,610 (2017: $446,248,786) representing Government of Jamaica debt securities as collateral for reverse repurchase agreements. Included in these investments is an amount for $2,350,707 (2017 - $2,307,665) with respect to a Care-A- Bit Reserve Fund (Note 22d). Cash and balances with the Jamaica Co-operative Credit Union League Limited represent (i) Cucash Deposits of $360,580,640 (2017: $62,096,039) which are cash management call accounts. The rules of the League stipulate that the Credit Union must invest a minimum of 2% of members' savings deposits in Cucash deposits. Term deposits of NIL (2017: $325,658,799) held with the League are classified as held-to-maturity. The rules of the Jamaica Co-operative Credit Union League Limited stipulate that the Credit Union must invest a minimum of 10% of members' savings deposits in short-term deposit instruments. A minimum of 8% is required to be invested with the League, and a maximum of 2% with any other financial institution. Of the 8% requirement, a minimum of 4% must be held in fixed deposits and 2% in Cucash deposits. c) This represents an investment in the Jamaica Co-operative Credit Union League Limited Settlement Deposit, which is used as a security deposit for ATM transactions. CUETS d) This represents short-term reverse repurchase agreements denominated in United States Dollar, which are collateralised by Government of Jamaica securities. 43 Annual Report 2018
Page 1: Financial Statements as at December
Page 4 and 5: REPORT OF THE INDEPENDENT AUDITORS
Page 6 and 7: g REPORT OF THE INDEPENDENT AUDITOR
Page 8 and 9: STATEMENT OF FINANCIAL POSITION as
Page 10 and 11: STATEMENT OF CHANGES IN EQUITY For
Page 16 and 17: NOTES TO THE FINANCIAL STATEMENTS F

JPSCU AR 2018 finan web

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