Annual Report 2018

Our Vision 

To be our members’ premier financial partner for life. 

Our Mission 

Through a competent and committed team and innovative 

technology, we provide a wide range of services of the highest 

quality to meet the financial needs and aspirations of our internal 

and external stakeholders across Jamaica and the Diaspora; 

Promote equal opportunity; Foster economic growth and stability 

while upholding our core values. We care for our members and 

our community. 

Our Core Values 

Integrity, Trust, Service, Accountability, Prosperity. 

Make the right start 

Open a TREASURE CHEST ACCOUNT

JPS & Partners... 

Securing your financial future 

Enjoy competitive returns on savings, personalized service and a 

reservoir of products and services to suit your every financial need. 

ProductS and ServiceS 

SAVINGS PRODUCTS 

• UGain Savers 

Account 

• Ordinary Shares 

• Special Deposits 

• Fixed Deposits 

• Partner Plan Savings 

• Life Long Savings 

Account 

• Treasure Chest 

Account 

LOANS PROGRAMMES 

• Motor Vehicle 

• Education 

• Mortgage 

• Home Equity 

• Air Conditioning 

• Back-to-School 

• Christmas Combo 

• Pay Day 

• Computer 

• Vacation 

• Father’s Day 

• Cash-On-Credit 

• Mother’s Day 

• Insurance Premium 

• Furniture/Appliance 

• Salary Enhancer 

SERVICES 

• Family Indemnity 

Plan (FIP) 

• Health Plan 

• Debit Card Service 

• Standing Order Facility 

• Payroll Deduction 

• Financial Counselling 

• Direct Deposit Facility 

• Online Banking 

FREE LIFE INSURANCE 

PROTECTION 

• Up to $2,000,000 

on loans 

• Up to $1,000,000 

on savings

Table of Contents 

4 

Notice of Meeting 

5 

Progress Report 

6 

Minutes - 63 rd Annual 

General Meeting 

19 

Pictorial 

Highlights 

21 

Board of 

Directors’ Report 

33 

Treasurer’s Report 

40 

Our Managers and 

Team Members 

46 

Our Location 

Representatives 

FINANCIALS 

48 

Letter from the Department 

of Co-operatives 

50 

Auditors’ Letter 

54 

Statement of 

Financial Position 

55 

Statement of 

Comprehensive Income 

56 

Statement of Changes 

in Equity 

61 

Statement of Cash Flows 

62 

Notes to the 

Financial Statements 

COMMITTEE REPORTS 

106 

Supervisory 

Committee 

108 

Credit Committee 

110 

League Delegates 

Report 

113 

Nominating 

Committee 

117 

Resolutions 

3 Annual Report 2018

Notice of Meeting 

Notice is hereby given 

that the 64th Annual 

General Meeting of 

the JPS & Partners 

Co-operative Credit 

Union Limited will be 

held at The Jamaica 

Conference Centre, 

14-20 Port Royal Street, 

Kingston on Saturday, 

May 11, 2019 

commencing at 

10:00 a.m. 

AGENDA 

1. ASCERTAIN that a quorum is present 

2. APOLOGIES FOR ABSENCE 

3. APPROVAL OF THE MINUTES 

of the last Annual General Meeting and discussion of MATTERS arising 

4. REPORTS 

Board of Directors 

Treasurer and Auditor 

Supervisory Committee 


League Delegates 

5. DISTRIBUTION OF SURPLUS 

6. RESOLUTIONS 

Fixing of Maximum Liability 

7. NOMINATION COMMITTEE REPORT 

8. ELECTION 

Board of Directors 



9. ANY OTHER BUSINESS 

10. ADJOURNMENT 

Earl Munroe 

Board Secretary 

JPS & Partners Co-operative Credit Union 4

Progress Report 

2009 - 2018 

YEARS MEMBERS SHARES DEPOSITS LOANS 

EARNINGS 

ASSETS DIVIDENDS/ 

Balance Balance Balance Gross 

Income 

Expenses Net 

Income 

INTEREST 

before Honoraria 

$M $M $M $M $M $M $M % 

2009 6,352 427,921 1,409,339 1,236,41 390,118 331,397 58.72* 2,261.48 6.5 

2010 6,807 449,091 1,621,615 1,145,43 341,556 295,048 46.51 2,529,832* 6 

2011 6,478 469,360 1,591,627 1,194,40* 314,219* 262,009* 52.21* 2,581,571* 4 

2012 6,766 469,167 1,543,397 1,271,85 294,516 263,871 30.64 2,571,858* 3 

2013 9,851 831,109 2,005,029 1,905,403 344,860 314,390 30.47 3,703,516 3 

2014 10,249 893,720 1,901,545 1,957,320 423,447 381,629 41.82 3,675,189 3.25 

2015 11,840 947.58 1,858.46 2,071.42 432,853 391,491 41.36 3,700,351 3.4 

2016 13,796 1,208.67 1,915.26 2,445.36 440,946 410,337 30.61 4,110,374 3 

2017 14,196 1,247.13 1,964.16 2,655.58 458,758 416,797 41.96 4,223,628 2 

2018 14,947 1,262.52 1941.13 2,651.75 460,278 390,979 71.62 4,238,844 1.5 

* Restated 


Minutes of the 63rd AGM 

Minutes of the 63rd Annual 

General Meeting of the JPS & 

Partners Co-operative Credit 

Union Limited held on Saturday, 

September 29, 2018 at the 

Jamaica Conference Centre, 

14-20 Port Royal Street, 

Kingston. 

Present at the Head Table were: 

Miss Natalie Sparkes - Chairman 

Mr. David Grey - Vice 

President 

Mr. Earl Munroe - Secretary 

Miss Deborah Campbell - Treasurer 

Mr. David Fleming - Director 

Mr. Dwight Hart - Director 

Mr. Terrence Knight - Director 

Mr. Clive Segree - Director 

Mr. Vaughn McDonald - Director 

Miss Joydene Jarrett - General 

Manager 

CALLED TO ORDER 

Having ascertained that a quorum was 

in place the President/Chairman called 

the meeting to order at 11:00 a.m. 

PLAYING OF THE NATIONAL 

ANTHEM 

The National Anthem was played. 

PRAYERS 

Mr. Clive Segree offered Prayer, after 

which the Prayer of St. Francis of Assisi 

was repeated. 

President, Natalie Sparkes, addresses members at the Annual General Meeting 

NOTICE OF ANNUAL GENERAL MEETING 

The Secretary, Mr. Earl Munroe read the notice convening the 63rd Annual General 

Meeting (AGM). 

ADOPTION OF AGENDA 

The Chairman invited a motion for the adoption of the Agenda. The motion was 

moved by Ms. Kim Robinson and seconded by Ms. Sonia Smith. 

CHAIRMAN’S OPENING REMARKS 

The Chairman thanked the members for coming to another Annual General Meeting 

(AGM). She noted that the AGM was long in coming and that as the members go 

throughout the day, they would understand the cause for the delay as well as how 

they could improve on the timeline. The Chairman promised the members that they 

would have frank and open discussions throughout the meeting. In addition, she told 

the members that the Board was expecting a clear direction from the members and 

shareholders of the Credit Union for the next year. 


Minutes of the 63rd AGM (Continued) 

WELCOME 

The President extended on behalf of the Board, warm welcome to everyone present 

at the meeting. She specially acknowledged Mr. Lloyd Mordecai, one of the founders 

of the Credit Union, and thanked him for having the vision that saw the birth of the 

Credit Union. 

INTRODUCTION OF BOARD MEMBERS 

The President informed the members that she would be introducing the members of 

the Board and at some point during the meeting she would do the absenteeism from 

the Board. The members of the Board present were duly introduced 

APOLOGIES FOR ABSENCE 

Apologies were tendered for Directors Alicia Burnett and Donovan Cunningham. 

Apologies were also tendered from the floor for Albert Dawkins, and Supervisory 

Committee Chairperson, Corine McCalla. The Chairman informed the membership 

that Director Vaughn McDonald would be late due to other commitments elsewhere. 

WELCOME OF GUESTS 

The President welcomed Ms. Katrina D’Aguilar from the Jamaica Co-operative Credit 

Union Limited (JCCUL) as well as Ms. Marjorie Campbell and Ms. Sheryll Ramsay- 

Brown from the Department of Co-operatives and Friendly Societies and Ms. Kerry- 

Ann South from the Credit Union Fund 

Management Company (CUFMC). 

Mr. Carl Bryan, Stenographer and Mr. 

Noel Smith, Internal Auditor were also 

welcomed. 

OBSERVANCE OF SILENCE 

A minute’s silence was observed for 

those members who passed on since 

the last Annual General Meeting. 

MINUTES OF LAST 

MEETING 

The President invited the Secretary of 

the Board, Mr. Earl Munroe, to take the 

meeting through the Minutes and all 

relating matters therein. Secretary 

Munroe drew the members’ attention to 

page 5 in the report highlighting the 

Minutes of the 62nd Annual General 

Meeting. A motion was subsequently 

moved and seconded by Miss Kim 

Robinson and Mr. Carl Grant, respectively, 

A section of the membership present 



Members getting registered. 

for the Minutes to be taken as read. 

CORRECTIONS/AMENDMENTS 

On page 15, under Resolution for Rule 

Change, Miss Sonia Smith noted that the 

numbers for and against the rule change 

were not stated. The President promised 

to do the correction and insert the 

numbers accordingly for the amendment. 

MATTERS ARISING 

Mr. Vernon Lawrence drew the 

Secretary’s attention to page 7 of the 

Minutes and stated that he was shocked 

to see it stated that the President said 

that the strategic plan was not available 

to the shareholders of the Credit Union. 

He noted that he had served in many 

organizations and that it was usual for 

the strategic plan to be presented to 

members. The Chairman stated that the 

strategic plan was one of the document 

organizations used to conduct their 

business and that it was sometimes a 

well-kept secret. However, she noted 

that she would be guided and if the 

Board wished to distribute the strategic 

plan to the shareholders she would 

follow the instructions. 

Continuing, Mr. Lawrence called on the 

Representative from the Department of 

Co-operatives and Friendly Societies to 

state whether the Department had any 

rule preventing the distribution of 

strategic plans of Credit Unions to their 

shareholders. Miss Sheryll Ramsay- 

Brown stated that there was no such 

rule. A lengthy conversation ensured on 

the matter. The Chairman told Mr. 

Lawrence to put forward a resolution to 

have the strategic plan of the Credit 

Union available to its shareholders. The 

resolution was duly moved by Mr. 

Lawrence and seconded by Mr. Ken 

Tomlinson. Thirty-six (36) members 

voted for the resolution, 10 members 

voted against it, while the remaining 

members abstained. Mr. Tulloch told the 

meeting that going forward highlights of 

the strategic plan should be made 

available to the members. 

Regarding the matter of the Bank of 

Jamaica (BOJ) governing Credit Unions, 

Mr. Lawrence asked the Chairman to give 

an update on the matter. The Chairman 

stated that the members of the Credit 

Union were still waiting to hear the 

decisions regarding the Regulations of 

Credit Unions by the BOJ. She 

subsequently stated that the Jamaica 

Co-operative Credit Union League (JCCUL) 

could not say when the Regulations 

would be passed. She noted that the 

view was that the Regulations would 

take effect no later than the third quarter 

of 2018. She subsequently noted that 

the third quarter had ended and the 

members were now in the fourth quarter 

and were still waiting. 

There being no other matters arising for 

discussion, the Secretary invited a 

motion for the acceptance of the 

Minutes of the 62nd Annual General 

Meeting. The motion was moved and 

seconded by Mr. Derrick Tulloch and Mr. 

Anthony Creary respectively. 

BOARD OF DIRECTORS 

REPORT 

President Sparkes invited a motion for 

the Board of Directors Report to be taken 

as read. The motion was moved by Ms. 

Kim Robinson and seconded by Mr. 

Vernon Lawrence. 

The Board Report presented by the 

President indicated that the performance 

of the Credit Union was examined within 

the context of the Jamaican economy. 

She highlighted that the Jamaican 



economy grew for the fiscal year 

2017/2018 by 0.5% and that the 

inflationary target was at 5.2%. She 

stated that Treasury Bills rate closed the 

year at 4.63% for 90 and 180 day 

instruments. The President noted that 

the Jamaican dollar traded at $128.74 

at the beginning of 2017 and closed the 

year at $125.55, while the Net 

International Reserves (NIR) closed the 

year at $3.2 Billion compared to $2.7 

Billion the previous year. 

Speaking specifically to the performance 

of JPS & Partners Credit Union, she 

stated that the Share Portfolio stood at 

$1.247 Billion at the end of 2017, which 

represented a growth of 3.42%, while 

Deposits stood at $1.96 Billion. She also 

noted that the Loan Portfolio grew by 

8.6% from $2.445 Billion to 2.65 Billion; 

Total Assets stood at $4.2 Billion, a 

growth of $2.76%, while the Surplus 

moved from $30.61 Million in 2016 to 

$41.96 Million in 2017, a growth of 

37.10%. Continuing, she added that 

Institutional Capital increased by 1.25% 

and membership grew by 3%. With 

regard to delinquency, the President 

stated that the ratio stood at 2.29%, 

which was well within the standard 

of 5%. 

McNamee, (Acting) Branch Manager for 

Kirkvine. She explained to the meeting 

that Mr. Clive Segree was co-opted to 

the Board as Mr. Richard Palmer, 

Assistant Treasurer, resigned effective 

May 2017. 

Speaking to the issue of investing in 

education, she stated that one of the 

ways to develop the Credit Union was to 

invest in education programmes with 

the youth. She added that such 

investments helped to build brand 

loyalty as well as bringing the Credit 

Union closer to persons who would be 

able to grow the institution over the 

years. She noted that the Credit Union 

awarded bursaries and scholarships 

throughout the year. She added that the 

Credit Union had adopted schools such 

as Central Branch All Age; the Queen’s 

School; St. Mary’s the Virgin Basic, 

Merrion Basic, Polly Ground Basic and 

St. John Bosco Boys’ Home. 

President Sparkes mentioned the Youth 

Savers Summer Camp held yearly by 

the Credit Union and noted that it was 

always oversubscribed. She also noted 

that the Credit Union had a Christmas 

Treat the previous year and that 

donations were made to partnered 

schools, summer camps, and 100 copies 

of Children’s Own Newspaper were 

provided weekly to the Central Branch 

All-Age School. 

For infrastructure and development, she 

highlighted that the car park at the 

Credit Union’s Head Office was repaved 

and remarked, as well as the 

acquisition of an automatic gate for the 

Head Office. She also noted that the 

entire air condition unit at Head Office 

was replaced. She mentioned the issue 

of the bathroom and the question raised 

by a member at the previous Annual 

General Meeting (AGM) and noted that 

bathroom facility would be provided for 

members who visit the Credit Union. 

Former Director, Vernon Lawrence asks a question of the meeting. 

At this juncture, the President introduced 

the Management Team which comprised 

Miss Joydene Jarrett, General Manager; 

Natalie Murray, Credit Manager; Dianaya 

Maxwell-Orr, Chief Accountant (Acting); 

David Goodlitt, Operations Manager; 

Adrien Titus, Human Resource Manager; 

Marjorie Richards-Johnson, Treasury 

Manager; Sandra Robinson-Brown, Risk 

and Compliance Manager; Carl Grant, 

Branch Manager at Ewarton; Shantel 

Mitchell, Branch Supervisor (Acting), 

Ocean Boulevard; Mrs. Marie Young- 



Referring to the Lady Musgrave Road 

building, the President stated that some 

maintenance work had been done on 

the building. She added that for 2018 

the Credit Union had plans for the Lady 

Musgrave Road property. She stated 

that the Credit Union was moving to 

have the caveat on the property 

modified so the property could be 

developed for commercial business. 

She also noted that the Credit Union 

was looking at the reconfiguration of the 

water supply at the Lady Musgrave Road 

property. 

Moving to the area of social responsibility, 

the President stated that the Credit 

Union continue to provide free health 

checks to members on the first working 

day of each month. She implored the 

members to make use of these health 

checks. She also stated that the Credit 

Union had provided financial assistance 

with partnering schools. The Credit 

Union continue to offer assistance from 

the Care-A-Bit Fund to members who 

experienced major illness and natural 

disasters. 

Highlighting the future plans for the 

Credit Union, President Sparkes said that 

the Credit Union needed to form better 

strategic partnership with other entities, 

as well as growing shares and deposits 

on loans. She added that increased visits 

to the locations islandwide was needed 

as the expected growth trajectory from 

having members across the island had 

not been tapped and had not been 

realized. Referring to the impending 

Bank of Jamaica (BOJ) Regulations, the 

President said that the Credit Union 

would have to review and implement 

some operation procedures. She noted 

that the Credit Union had to review and 

make changes to over forty-odd policies 

Treasurer, Miss Deborah Campbell addresses the meeting 

to ensure compliance when the BOJ 

Regulations take effect. The President 

told the members that the Credit Union 

strive to consistently and continually 

improve on service delivery to its 

members as this was what they require. 

In closing, she thanked God, as well as 

the Management Team, Staff and 

Volunteers who worked over the year. In 

addition, she thanked the Regulators 

and Miss Lisa Cousins, External Auditor 

from the firm of Crowe Horwath. 

MATTERS ARISING 

Mr. Vernon Lawrence commended the 

President and the Board for the excellent 

work done over the year based on the 

Board Report and the Financial Report. 

However, he highlighted a few areas 

which needed improvement. He noted 

that improvement was needed in the 

member service provided by the 

members of the Credit Union, particularly 

when dealing with the internal customers 

of the organization. 

Referring to the property at Lady 

Musgrave Road, Mr. Lawrence stated 

that he was a part of the acquisition of 

the property and that same was acquired 

in view of establishing an office there. He 

asked the President whether plans were 

still in place to remove the Head Office of 

the Credit Union from Half Way Tree Road 

to Lady Musgrave Road. In addition, he 

stated that the location of the office was 

very important and that Half Way Tree 

was a very convenient location. He told 

the President that with the commercial 

development taking place the property 

was an opportunity for investment as 

same could be rented and the Credit 

Union would earn revenue. The President 

noted the points and stated that in the 



Mega Mart location in Mandeville. The 

cost for the spatial quoted in US Dollars 

was very high. She added that the 

Jamaica Public Service (JPS) location 

was also looked at in relation to the 

relocation of the Kirkvine Branch, but 

this also did not materialize. She stated 

that plans were still ongoing to try and 

relocate the Kirkvine Branch. 

Former Director, Vernon Lawrence looks on while Former Director, Derrick Tulloch pose 

a question to the Chairman. 

strategic plan for marketing and 

customer service there were some plans 

in terms of what the Credit Union 

planned to do going forward. 

Mr. K. Drysdale stated that his life as 

well as his colleagues’ lives were put on 

hold due to unwanted developments in 

relation to the bauxite sector. He 

enquired of the President as to how the 

Ewarton members will align themselves 

going forward after the 23rd of October, 

2018. The President, putting the matter 

in context, stated that one of the 

companies on the market in the 

bauxite/alumina industry in Jamaica 

was going through external sanctions 

and as a result some of the members 

had activities curtailed at their place of 

work. She noted that the date was 

pushed from October 23, 2018 to 

November 12, 2018. She added that the 

member really wanted to know how 

soon members could expect normalcy 

to return to their credit union 

arrangements. The President told the 

membership that normalcy in activity at 

the Ewarton Branch was subject to what 

happened to the overall parent 

company. She highlighted the negative 

implication the situation would have on 

the Credit Union as over $600 Million 

was in unsecured loans and noted that 

Ewarton accounted for about 30% of the 

loan portfolio. 

Mr. Orville Holness stated that there was 

a huge investment in Alpart by China 

and referenced the fallout with Alcan in 

terms of UC Rusal. He asked for the 

Kirkvine Works office to be relocated to 

a central point that was more accessible 

to the Alpart members. The President 

said the matter of relocation for the 

Kirkvine branch was looked at. She 

noted that space was looked at the 

Referring to the matter of customer 

service, Mr. Holness stated that the 

persons who worked at Old Harbour, 

during the Christmas Holidays, would 

normally ask their supervisors for time to 

go and do business at the Credit Union 

in Kingston. He noted that the members 

cannot travel from Old Harbour to do 

business in Kingston in two hours and go 

back to work. He noted that some 

members would lose up to two hours 

pay as they used up four hours in order 

to journey to do their business activities. 

He pointed out that other Credit Unions 

had flexible work hours during the 

holiday period and that JPS & Partners 

Credit Union needed to go that route. 

On the matter of the power plant at Old 

Harbour, Mr. Holness noted that the plant 

was posing some challenges. He stated 

that the workers at the plant would be 

employed on a contractual basis and 

questioned the wisdom of what would 

happen for members who have been 

working with the company for years. He 

also noted that skilled workers in the 

organization were leaving the island to 

go overseas for employment and asked 

the Credit Union’s Board to be innovative 

in order to make arrangements to keep 

those members in the system in 

Jamaica. On the issue of Old Harbour, 

the President said that she wanted to get 

members of the Credit Union to visit on 

a regular basis on Mondays and 


Members casting their votes. 

Wednesdays, instead of having the 

members from that part of the island 

travelling into Kingston to do their 

business. 

Mr. Derrick Tulloch mentioned the idea 

of the Credit Union engaging PayMaster 

to collect loan payments islandwide 

from people who were not necessarily 

on payroll and wanted to be a part of the 

Credit Union but cannot get to the 

physical location. He said the members 

of the Credit Union needed to begin to 

think outside of the box for the longterm 

survival of the organization. The 

President stated that she liked the 

PayMaster idea. She noted that the 

Credit Union Movement was looking at 

getting an online platform for all 

Information Technology (IT) systems. 

She added that the platform was not yet 

operational. 

Mr. Holness told the President that for 

members having multiple loans perhaps 

a special rate could be offered on all the 

loans or a part of the loan. He noted that this would encourage members who want 

to join the Credit Union, as well as existing members who have more than one loans 

to access the special rate. The President said she liked the idea as going forward 

money would have to be made from loans and not from savings due to the fact that 

the market had low rates. 

Ms. Raquel Jones asked the President what the Credit Union was doing to safeguard 

members’ funds against scamming, as well as whether the Credit Union was looking 

at the idea of instituting a Visa Debit Card or Credit Card for its members. Responding 

to the Visa Credit Card, the President stated that the Credit Union Movement was 

trying to get such a card for its membership. . She added that the Visa and the Master 

Card brands required serious US dollars in order for the organization to acquire the 

services for it members. On the question of scamming, she told the membership 

that the Credit Union went as far as putting in firewalls and upgraded the servers. 

She noted that the Credit Union was spending a certain amount of US dollars to put 

in place cyber security walls and security insurance in order to mitigate against 

scamming. She reminded the members to protect themselves when using the 

Automated Teller Machine (ATM), as well as when conducting online transactions. 

Referring to the debt portfolio, Mrs. Andrea Thomas-Wright asked the President 

whether most of the members not paying back their loans were employed on a 

contractual arrangement. The President responded in the affirmative. 

Mr. Vernon Lawrence, speaking to the matter of staff turnover, stated that one of the 

driving factors for it might be staff moral in the office. He suggested that the Credit 

Union do a staff moral survey in the office to determine whether it contributed to the 



source of the attrition taking place. He 

added that the issue of communication 

with members should be a part of the 

strategic focus of the Credit Union. 

On the conclusion of matters arising 

from the report, the President invited a 

motion for its acceptance. The motion 

was duly moved and seconded by Mr. 

Derrick Tulloch and Mrs. Andrea 

Thomas-Wright, respectively. 

AUDITOR’S REPORT 

The President invited Mrs. Lisa Cousins, 

the Auditor from Crowe Horwath 

Jamaica, to read the Auditor’s Report. 

Mrs. Cousins in presenting the report 

stated that they had audited the 

financial statements of the JPS & 

Partners Co-operative Credit Union 

Limited which comprised statements on 

the Society’s financial position as at 

December 31, 2017. These included the 

Statement of Comprehensive Income, 

Statement of Changes in Equity, Cash 

Flows for the year then ended, and 

explanatory Notes to the Financial 

Statements, including a summary of 

significant accounting policies. 

The report cited the basis for the 

Auditor’s opinion, other information, 

responsibilities of Management and 

those charged with governance for the 

Financial Statements, Report on 

additional matters as required by the 

Co-operatives Societies Act, as well as 

the Auditor’s responsibilities for the audit 

of the Financial Statements. 

TREASURER’S REPORT 

The Treasurer, Miss Deborah Campbell, 

thanked Mrs. Cousins for reading the 

Auditor’s Report. She thanked Mr. Orville 

Holness for coming to the Annual 

General Meeting (AGM). Mr. Holness had 

earlier stated that he was attending the 

AGM for the first time. She stated that 

the Board appreciated the comments, 

questions and concerns raised by the 

members as they would allow the 

members of the Board to go back into 

the boardroom to look and try to come 

back with offers that would make the 

members happy and want to remain 

with the Credit Union. 

In her review of the past year, she 

indicated that the Credit Union was 

operating in a very competitive 

environment and noted that there was a 

very active micro-lending sector in 

Jamaica. Speaking to the growth for 

2017, she noted that the Credit Union 

rolled out some very attractive loan 

products at strategic intervals during the 

year. These included the “Go Ahead” 

Loans Promotion, the usual Partner Plan 

and Education Loan facility. She 

explained that the limit for Education 

Loan was increased to $400,000. This 

was done on the basis that the fees 

charged per semester for persons 

attending tertiary institutions were in 

that ballpark figure. 

The Treasurer stated that the Board tried 

very hard to manage the investments of 

the Credit Union. She noted that the 

risks were very high but the 

management team watched the market 

and whenever they saw an opportunity 

to put cash in a product that would give 

the Credit Union a better return they 

went for it as best as they could. 

In terms of the revenue sources of the 

Credit Union for 2017, the Treasurer 

stated that loan interest continued to be 

the main source. She explained that 

loan interest was the income earned 

from loans disbursed. She mentioned 

that the interest paid on deposits for the 

year declined by $3.8 Million. In 

addition, she noted that savings on 

deposits of $1.964B for 2017 reflected 

a small increase over the $1.9 Million 

balance in 2016. Referring to the period 

under review, the Treasurer told the 

members that products such as Lifelong 

Savings, Partner Plan Savings and 

Golden Harvest recorded an increase. 

Fixed Deposits reflected a decrease. 

On the expense side, she reported that 

the Operating Expenses for the Credit 

Union increased. She noted that 

inflation accounted for a portion of the 

increase, as well as charges for cyber 

security and insurance fraud. She 

explained that in previous years the 

Credit Union never had to deal with the 

issue of cyber security and insurance 

and noted that these expenses affected 

the organization’s bottom line. In 

addition, she indicated that increases in 

the Operating Expenses also resulted 

from increase in the number of staff, as 

well as rental for the offices for the 

merged entities. 

At this juncture, the Chairman asked the 

members who were leaving the meeting 

to remain inside the room. She noted 

that a suggestion was being made to 

take a break in the presentation and 

have the nomination of persons elected 

where the quorum was needed. The 

Chairman put the matter to the 

members of the AGM. Mr. Derrick 

Tulloch indicated that the presentation 

should not be much longer and asked 

that the Treasurer be allowed to 

complete her presentation. 



time. She further explained that the 

management team worked with a team 

of experts who analyzed the portfolio 

and said that the Credit Union needed to 

have a provision of $53.3 Million under 

the IFRS 9 Standard. She noted, 

however, that at the end of December 

2017, in keeping with the PEARLS ratio, 

the Credit Union only had $15.3 Million, 

hence a shortfall of $38 Million. 

At the end of the Treasurer’s Report, 

queries were raised from the floor. 

Lisa Wright, winner of one of the spot prizes on offer collects her prize from Vice- 

President, David Grey. 

Continuing, the Treasurer stated that Member Shares increased to $87 Million due 

to the compulsory share saving component added to some loan products. She further 

stated that members withdrew their funds for investments in higher income earning 

products and that was a concern for the Board. In addition, she noted that Total 

Assets increased and that there was a slight movement in the delinquency rate over 

the period. She alluded to the fact that almost a third of the Credit Union’s portfolio 

was owned by members of the Kirkvine and Ewarton Branches and therefore that 

posed a challenge for the Credit Union in 2018. 

Summarizing the highlights, the Treasurer said that the Credit Union reported a 

surplus of $41.9 Million and that the loans portfolio grew by 8.6%. She noted that 

the delinquency rate also went up but notwithstanding, remained as one of the lowest 

within the Jamaica Co-operative Credit Union League. Referring to the PEARLS ratio, 

which measured the Credit Union’s performance over the years, she noted that the 

Credit Union had done well in all areas. Turning to the International Financial 

Reporting Standards, IFRS 9, she explained the reasons for the standards and told 

the members that same would determine what rating members were given when 

applying for loans, as well as what provision the Credit Union would have to put in 

place in the event that a debt was not repaid. 

The Treasurer noted that 63% of the Credit Union’s investments were in loan, while 

27% were on investments. In addition, she noted, as stated by the Chairman, 

previously that 72% of the Credit Union loans were secured and 28% unsecured. 

However, she explained that within the 72% of secured loans, loans to acquire motor 

vehicles represented a high percentage. These assets had a declining value over 

Mr. Cebert. Mitchell asked about a 40- 

year product that was introduced earlier 

in 2018 and stated that if the Board 

Members were looking at long-term 

sustainability of the organization 

perhaps a percentage of the Credit 

Union’s portfolio needed to be invested 

in such long-term instruments. The 

Treasurer said that there were 

instruments going into 2039. 

With regard to the cloning of members’ 

Automated Teller Machine (ATM) cards 

and the removal of the sum of $154,400 

from their accounts, Mr. Derrick Tulloch 

asked the Treasurer whether any 

insurance claims were made as the 

members were taken to court. The 

Treasurer responded in the negative and 

said that the Credit Union was not able 

to make any insurance claims. 

Mr. Tulloch queried the figure for 

administrative expense, in particular the 

amount for member refreshment. He 

stated that it was not properly classified. 

The Treasurer explained that it was a 

joining of two items, Members’ 

Refreshment and Members’ Appreciation 

celebration costs. Mr. Tulloch asked 

the Treasurer to separate the two items 

for 2018. 



Mr. Vernon Lawrence asked the 

Treasurer whether the members could 

get some of the funds allotted for 

Institutional Capital as the target, based 

on the PEARLS ratio, was 10% and the 

Credit Union had exceeded that target 

now at 15.9%. The Chairman explained 

to Mr. Lawrence that the Credit Union 

was prudent in the area of Institutional 

Capital and that the high percentage 

helped the members in previous years 

when the Credit Union’s portfolio was 

examined. 

At the end of the queries, the Treasurer 

invited a motion for the adoption of the 

Treasurer’s Report. The motion was 

moved by Mr. Cebert Mitchell and 

seconded by Mr. Derrick Tulloch. 

DISTRIBUTION OF SURPLUS 

The Chairman noted that a 

supplemental report was given to 

members when they register. She 

asked the members to view this 

information on the screen. 

The Treasurer stated that a Surplus of 

$41.96M was available for distribution. 

She stated that for the Statutory 

Reserves, the allocation set aside would 

normally be 20%. However, she noted 

that with the required provisioning for 

IFRS 9 some help was needed and that 

approval was given for the Credit Union 

to transfer only 10% for the period 

instead of the usual 20%. She added 

that the Board also gave approval for an 

adjustment to be made to surplus for 

some prior year charges. For Scholarship 

Programme $1 Million was allocated. 

There was no allocation, for the payment 

of honoraria. 

A motion for the approval of the distribution of the 2017 Surplus was moved by Mr. 

Cebert Mitchell and seconded by Ms. Kim Robinson. 

RESOLUTION ON CURRENT MAXIMUM LIABILITY 

The Treasurer read the Resolution as written on page 111 of the AGM’s booklet. The 

Resolution was moved by the Board and seconded by Mr. Cebert. Mitchell. 

SUSPENSION OF STANDING ORDERS 

The Chairman sought permission to have the Standing Orders suspended and to take 

the Nominating Committee Report before the other reports. The motion was moved 

by Ms. Sonia Smith and seconded by Mr. Cebert Mitchell. 

The Chairman invited Mr. Terrence Knight, the Nominating Committee Chairperson, to 

present the Nominating Committee Report. Mr. Knight stated that that there was an 

addendum which replaced the report in the AGM booklet located on pages 105 to 

110. Ms. Sonia Smith queried as to whether the addendum was a correction. She 

asked Mr. Knight to state how the election would be decided. Mr. Knight said it would 

be based on the number of votes. Ms. Smith pointed out that there should be a 

correction to reflect the changes. Mr. Knight agreed and said the correction was noted. 

He then invited a motion for the addendum with the Revised Report be taken as read. 

The motion was moved by Mr. Cebert. Mitchell and seconded by Mr. Vernon. Lawrence. 

Mr. Knight stated that the Nominating Committee met on June 26, 2018 and 

submitted, as per Rule 65 to the Secretary of the Board, all the members nominated 

President, Natalie Sparkes thumbs through the Annual Report while Treasurer, 

Deborah Campbell engages her in conversation. 



the Board of Directors there were seven 

(7) vacancies and ten (10) nominees, 

therefore ballots would have to be cast 

to determine the seven (7) persons who 

would serve on the Board. She 

subsequently stated that after the 

counting of the ballots the persons who 

received the most votes would be 

assessed based on the number of years 

they would serve. The nominees were 

announced as Natalie Sparkes, Dwight 

Hart, David Fleming, Deborah Campbell, 

Alicia Burnett, Clive Segree, Devon 

Wright, Garfield Barrett, Tricia Robinson 

and Vernon Lawrence. 

These campers have their game faces on during a video game session in the 

Children's village. 

The Director of Elections advised the 

members that while the counting of the 

ballots were taking place the election 

would continue for the Supervisory and 

Credit Committees. 

by August 20, 2018. In addition, he 

noted that Rule 65 of the Credit Union 

Rules required all nominees to be 

interviewed before being presented to 

the membership. He admitted that the 

Nominating Committee was unable to 

properly arrange interviews for all 

persons within a five-day span and so 

other methods were used to determine 

the suitability of candidates which led to 

a breach of Rule 65. Mr. Knight stated 

that the Regulators were approached 

and they advised that all suitable 

persons who had applied for 

membership to the Board of Directors 

should be nominated. 

Continuing, he informed the members 

that for the Supervisory Committee five 

(5) applications were received and the 

Committee nominated five (5) persons. 

For the Credit Committee there were 

four (4) vacancies; two (2) applications 

were received, the Committee nominated 

(2) persons. For the Board of Directors 

there were seven (7) vacancies; the 

Committee nominated (7) persons and 

received eleven (11) applications, one 

person withdrew his application. Mr. 

Knight stated that there would be an 

election among the ten (10) nominees 

and the seven (7) nominees who 

received the highest number of votes 

would be elected to serve, five for two 

years and two for one year. 

Mr. Knight thanked the members of the 

Committee and all the volunteers, both 

returning and retiring for their invaluable 

service to the Credit Union. 

DIRECTOR OF ELECTIONS 

Ms. Sheryll Ramsay- Brown from the 

Department of Co-operatives and Friendly 

Societies was invited to perform the role 

of Director of Elections. She explained 

the process relative to how the elections 

would be conducted. She said that for 

She announced the nominees for the 

Supervisory Committee as Corine McCalla, 

Caphanne March, Janet Plummer, 

Annmarie Raymond and Vires Reece- 

Jones. She invited a motion for the 

acceptance of these persons to serve on 

the Supervisory Committee. The motion 

was moved by Mr. Cebert Mitchell and 

seconded by Ms. Sandra Hayles. 

For the Credit Committee, she 

announced the nominees as Nicole 

Goodin, Nastassia Dixon, Sharlene 

Chunnu-Brown and Maxine Gardener. 

She invited a motion for the acceptance 

of these persons to serve on the Credit 

Committee. The motion was duly moved 

and seconded by Ms. Sonia Smith and 

Miss Latoya Martin, respectively. 

MOTION TO SELECT 

DELGATES AND ALTERNATE 

DELEGATES 

Ms. Sheryll Ramsay-. Brown, the 



Director of Elections invited a motion 

from the floor to give the Board of 

Directors the authority to select the 

Delegates and Alternate Delegates to the 

Jamaica Co-operative Credit Union 

League. The motion was moved by Mr. 

Derrick Tulloch and seconded by Mrs. 

Margaret Morris. 

RESUMPTION OF STANDING 

ORDERS 

The Chairman invited a motion for the 

resumption of the Standing Orders. The 

motion was moved by Mr. Derrick Tulloch 

and seconded by Mr. Anthony Creary. 

PRESENTATION OF 

SUPERVISORY COMMITTEE 

The Chairman invited Miss Caphanne 

March to present the report. She invited 

a motion from the floor for the report to 

be taken as read. The motion was 

moved by Ms. Sandra Hayles and 

seconded by Mr. Derrick Tulloch. There 

were no questions on the report. A 

motion was duly moved and seconded 

for the acceptance of the report by Miss 

Gerlyn Gray and Ms. L. Smith. 

PRESENTATION OF CREDIT 

COMMITTEE REPORT 

The Chairman invited Mrs. Deidre 

Codner-Campbell to present the report. 

She invited a motion for the report to be 

taken as read. The motion was moved 

by Mr. Barrington Williams and seconded 

by Mr. Everaldo Foreman. 

Mr. Derrick Tulloch asked about the 

turnaround time the Committee 

established for loans that have been 

submitted. Mrs. Codner-Campbell stated 

that an established mark of 24 hours 

Chairman of the Nominating Committee and Director, Terrence Knight makes a 

presentation to the meeting. 

was set. Mr. Tulloch queried as to whether the Committee had achieved the 

established mark of 24 hours. Mrs. Codner Campbell responded in the affirmative. 

A motion to accept the report was moved by Mr. Eli Baker and seconded by 

Mrs. Margaret Morris. 

ANY OTHER BUSINESS 

At this juncture, the Chairman asked if there were any other business for discussion. 

Mr. Tulloch tendered an apology for Mrs. Jean Bennett and stated that Mrs. Bennett 

was having a significant challenge in getting information out of the Credit Union. He 

added that she had sent her contact information to Mr. David Goodlitt and the 

Secretary, however she continued to experience the challenge. The Chairman stated 

that the comment was noted. 

Making an observation, Ms. Sonia Smith stated that while there were more members 

than vacancies on any committee, especially the Board of Directors, she believed that 

it should not be automatic that persons who received the highest number of votes 

served for the longest period. She added that it should be determined based on the 

skill sets needed on the Board and what would be critical at the time. She suggested 

that going forward the Nominating Committee should recommend the term limit for 

individuals based on the skill sets needed on the Board and what would be critical for 

the Board at the time. The Chairman stated that the observation was noted. 



DRAWING OF PRIZES 

Several members won prizes. 

Cash Prize – ticket #325; #146 – umbrella; #146; #0541 – gift basket; #323; #439; 

#0497; #428; #091; #387; #074; #0546 – gift courtesy of JPS. Mr. Lloyd Mordecai was 

presented with a gift. 

VOTE OF THANKS 

The Chairman stated that while the members were waiting on the results of the 

election, she would move the vote of thanks. She thanked, on behalf of the Board of 

Directors, everyone for coming to the AGM. She told the members that the meeting 

would not have been successful without their support and asked them to continue 

to support the Credit Union in order to enable it to grow from strength to strength. 

SUSPENSION OF STANDING ORDERS 

The Chairman stated that the Registrar’s Representatives asked that a lunch break 

be taken to allow the members to have their meals and thereafter return for the 

announcement of the results. She invited a motion for the suspension of the 

Standing Orders. The motion was moved by Mr. Cebert Mitchell and seconded by 

Mr. Kenneth Smith. 

LUNCH BREAK 

A luncheon break was taken at 3:15 p.m. 

This camper was going through hoops in the Children's village. 

RESUMPTION 

The Chairman invited a motion for the 

resumption of the meeting at 4:05 p.m. 

The motion was duly moved and 

seconded by Mr. Cebert Mitchell and Mrs. 

Deidre Codner-Campbell, respectively. 

ELECTION RESULTS 

The Chairman invited Ms. Sheryll Ramsay- 

Brown to make the announcement 

regarding the results of the election. 

In making the announcement, she 

stated that nine (9) ballots were spoilt 

and that Natalie Sparkes received 158 

votes; David Fleming received 164 

votes; Alicia Burnett received 114 votes; 

Devon Wright received 161 votes; Tricia 

Robinson received 142 votes; Dwight 

Hart received 140 votes; Deborah 

Campbell received 140 votes; Clive 

Segree received 144 votes; Vernon 

Lawrence received 138 votes and 

Garfield Barrett received 84 votes. 

Ms. Sheryll Ramsay- Brown announced 

the members who would serve in the 

following order: Natalie Sparkes for two 

(2) years; David Fleming for two (2) 

years; Devon Wright for two (2) years; 

Tricia Robinson for two (2) years; Clive 

Segree for two (2) years; Dwight Hart for 

one (1) year and Deborah Campbell for 

one (1) year. 

TERMINATION 

There being no other matter for 

discussion, the meeting terminated at 

4:12 p.m. on a motion moved by 

Mr. Cebert Mitchell and seconded by 

Mrs. Andrea Thomas-Wright. 


Pictorial Highlights 

The Year in Review 

As part of our mandate to be “Your Financial Partner for Life” we 

continue with our commitment to the education of our nation’s 

children by way of educational bursaries and scholarships, 54 

students benefited from JPS & Partners’ Scholarships & 

Bursaries. 

Miss Abigail Nankoo, 2018 recipient of the Albert "Bertie" 

Morris Scholarship receives her award from the wife of the 

scholarship's patron Mrs. Margaret Morris. Keynote speaker, 

Miss Kemesha Kelly shares in the moment. 

General Manager, 

Joydene Jarrett 

presents the Derrick 

Tulloch Trophy for the 

most outstanding 

literary piece to 

Deeva Johnson of 

Central Branch All 

Age school. 

General Manager, Joydene Jarrett and Marketing Manager, Denise Ellington pose with the winners and their principals. 


Pictorial Highlights 

The Year in Review (Continued) 

Our Member Appreciation Day celebrations were held at JPSco’s 

Sports Club. Members taking full advantage of the Back to Basics 

Gym Booth.2 

Miss Joydene Jarrett, General Manager makes a 

presentation to Mrs. Emily Dixon, Fund Raising Officer 

of the Lupus Foundation of Jamaica. 

Campers collect their life scenarios in the reality fair 

held at the 2018 Summer Camp. 

The Blue Team raises the 

championship trophy after 

securing the top spot at the 

2018 Summer Camp. 

On your mark, set, go...campers 

compete in one of the many exciting 

races of the day at the 2018 

Summer Camp. 


Board of Directors Report 

Dear Fellow Co-operators, 

As we reflect on the great 

milestones achieved during 

the year in review, it truly 

heartens us to share some 

gems of 2018 with you. 

Under the theme “When Life happens... 

think JPS & Partners,” we experienced 

growth in our business, refined our 

operations, boosted productivity and 

climbed further up the ladder of financial 

success. This was all made possible as 

a result of your continued support as 

believers, supporters, and contributors 

to our vision of being “Your Financial 

Partner For Life”. 

Economic Global Impact 

#ThinkJPSandPartners 

Notwithstanding the trade related 

tensions between the United States and 

its trading partners, the global economy 

continued on its path of increase in 

growth during the financial year in 

review. This level of growth was 

experienced mainly in the US markets. 

Other advance economies recorded 

modest growth rates while developing 

countries registered mix results. 

Economists however are of the view that 

the continued US - China trade war 

coupled with the rising oil prices may 

negatively impact developing countries 

such as Jamaica. 

Unemployment levels recorded historical 

lows in the US and other countries. Price 

levels remained relatively stable in most 

economies. Some countries not only 

faced economic challenges but were 

also hit with natural disasters with the 

most noted being that in Indonesia. 

David Grey, President 

Economic Happenings at Home... 


In the local economy, despite the challenge of a continued rise in crime, our 

macroeconomic variables remained relatively firm throughout the financial year as 

the government continues to target growth of 5% by 2020. The economy experienced 

real gross domestic product (GDP) growth of 1.8% for the 2018 calendar year and 

represents the sixth consecutive year of real GDP growth. This growth is attributed to: 

1. An increase in external demand for our country’s export industries, especially 

mining and quarrying, hotels and restaurants. 

2. This was achieved through the fiscal discipline and continued growth strategies 

put into effect by the government. 

3. The Bank of Jamaica (BOJ) strategy of lowering of interest rates was also a 

contributing factor. 

The country also saw growth in the stock market which outperformed several 

international markets and was rated by Bloomberg as the best performing Stock 

Market in 2018. This performance is due primarily to the several new listings on the 


Board of Directors Report (Continued) 

both the Main Market and the Junior Market. With the continued low interest rate 

regime, liquidity in the market and the continued advertisement encouraging 

investors to look to the stock market as an alternative investment vehicle, 

Economists are of the view that the market will continue to grow. 

The government continues to reduce borrowing all in an effort to reduce its GDP 

and in so doing has met all the quantitative performance criteria under the 

International Monetary Fund (IMF) Stand-By Agreement. This progress was 

recognised by the rating agencies, Standard & Poor (S&P) and Moody’s. Both credit 

rating agencies upgraded the country’s credit rating from stable to positive. 

The BOJ continued on its trajectory path to galvanize economic activities and to 

keep inflation within the target of 4% to 6% up to the year 2021. Inflation ended 

the year at 2.4%. 

The BOJ reduced interest rates five (5) times during the financial year. Rates have 

trended down from a high of 3.5% in October 2017 to a low of 2%. The 

achievement of the inflation targets and the call for the BOJ to play a positive role 

in credit expansion are some of the reasons for the reductions. 

The exchange rate depreciated at a rapid pace of approximately 4.7%. The 

weighted average selling rate of the Jamaica Dollar to the US dollar closed 2018 at 

J$127.72 = US$1.00, reflecting an appreciation of 5.2% compared to its 

depreciation rate for much of the financial year. This appreciation is due primarily 

to the BOJ reducing financial requirements of Cambios and Authorised Dealers. 

Repayment of Maturing Certificates of Deposits, and the early redemption of 

US$514M in locally issued foreign currency debt. 

Treasury Bills closed the year with average yields of 2.05% for 90 days and 2.076% 

for 180 days. 

At the end of December 2018, The Bank of Jamaica’s Net International Reserves 

(NIR) stood at US$3,005.41 million which translates to 32.80 weeks of Goods Imports. 

Jamaica’s unemployment rate declined to 8.4% at 2018 year end, recording a new 

unemployment low according to the Statistical Institute of Jamaica (STATIN). 

The Credit Union Movement… Find Your Platinum Lining 


Jamaica Co-operative Credit Union League (JCCUL) continues to offer support 

services, corporate branding, advocacy and public relations to all twenty-six (26) 

credit unions island wide. With an increased focus on developing Credit Unions into 

organizations that deliver ongoing improved services to its members, JCCUL has 

refined its operations to improve on traditional approaches to serving it’s over one 

million members. JCCUL has recognized that without embracing technological 

advancements, Credit Unions will not be able to attract new members especially 

those categorised as millennia’s and will continue to see depressed growth figures 

in the Movement overall. It is expected 

that JCCUL’s strategic transformation 

strategies which began in August 2018 

will ultimately achieve the intended 

purpose. 

2018 Financial Performance 

The League’s membership ended the 

year 2018 at 1,020,871 which represents 

a growth of 0.55% over the previous 

year’s membership total of 1,015,253. 

Regulations 

2018 2017 Growth 

$B $B % 

Savings 89.31 80.75 10.60 

Loans 79.66 71.68 11,13 

Assets 114.43 104.1 9.92 

The Credit Union continues its 

preparations for the long awaited Bank 

of Jamaica (Credit Union) Act. The Act 

will see the BOJ being the body 

authorised to make decisions that could 

significantly impact the Credit Union’s 

operating standards. In preparation for 

this, the Credit Union continues to 

review current operating standards and 

to implement new ones where required. 

We implore our membership to be 

aware of the impact these changes will 

have on our standard operating 

procedures and to work with us to 

ensure that our Credit Union is fully 

regulated when the Act is passed. 

Effective January 01, 2018, the Credit 

Union fully adopted the IFRS 9 Standard. 

The Standard requires that institutions 

carry out an assessment of their loans 

and other financial instruments to 



determine the probability of default and 

thereafter estimate the credit loss that 

could occur. Subsequent to the 

completion of this Assessment, your 

Credit Union was required to make an 

impairment provision of $50.57M. 

known as Expected Credit Loss (ECL). 

An amount of $45.03M was provided for 

the loans portfolio whilst $5.54M was 

provided for the investment portfolio. 

THINK JPS & PARTNERS 

FOR YOUR FINANCIAL 

SERVICES 

2018 Financial Performance 

In 2018 we continued our quest to not 

only place interest in the business of 

income generation but to also place 

interest in the lives of our members. 

This mantra allowed us to not only 

maintain our competitive edge in the 

provision of attractive returns to our 

members on our various products and 

services but to also effectively control 

and monitor our expenditure to ensure 

the maximization of our income. 

During the review period we face strong 

competition from the commercial banks 

and the myriad of micro lending 

companies. We had to compete with 

new entrants into the payday loan 

market which over the years was 

deemed a credit union product. 

Offerings of deep reductions in their 

product interest rates and high value 

unsecured lending especially in the 

credit card market were the main 

challenges as some of our members 

took up the offers from these 

institutions. Despite these challenges, 

your Credit Union performed creditably 

well in 2018. Below is a summary of the 

Credit Union’s performance for 2018. 

The shares portfolio recorded a flat growth of 1.23%. While the compulsory savings 

attached to some of our loan products contributed to the growth, we saw where 

some of our members during the year made withdrawals in a bid to diversify their 

investment portfolio and for consumption purposes. This level of diversification/ 

withdrawals coupled with some amount of dis-saving’s impacted on our deposit 

portfolio which saw a marginal decline of 1.17% 

The recorded decline in our loans portfolio was due primarily to the inability of most 

of our members at our Ewarton and Kirkvine branches to avail of our several loan 

product offerings since April of 2018. These members are employed by UC Rusal 

Alumina Company Ltd. whose operations were significantly impacted by the US 

imposed sanctions on their parent company located in Russia. The sanctions 

which were imposed in April 2018 and were only lifted in January 2019 led to a 

great uncertainty as to the ability of UC Rusal to continue to operate. 

Total Assets surpassed its 2017 figure of $4,223.63 by a conservative growth of 

$15.21M. 

Surplus of $71.62M was recorded. This represents an increase of 70.69% over 

the previous year’s performance. This was achieved through the various 

conservative measures employed to reduce our expenses, prudent risk taking as 

well as the several loan promotions held during the year. More importantly, your 

commitment to your Credit Union has helped us to achieve this surplus 

Institutional Capital 

2018 2017 GROWTH 

$M $M % 

Shares 1,262.52 1,247.13 1.23% 

Deposits 1,941.13 1,964.16 (1.17%) 

Loans 2,651.75 2,655.58 (.14%) 

Total Assets 4,238.84 4,223.63 0.36% 

Surplus 71.62 41.96 70.69% 

Institutional Capital 691.29 676.97 2.12% 

Membership 14,947 14,196 5.29% 

Our Institutional Capital inclusive of permanent shares serves as a buffer in tight 

economic conditions and continues to be one of the highest in the Movement. This 

was achieved through the prudent and astute decisions made by our Board of 

Directors over the years plus the increase in our membership. 



Our totalI Institutional Capital stands at $691.29M or 18.08% of total assets and 

exceeds the 8% PEARLS Standard of the League. 

A Place Where You Belong #ThinkJPSandPartners 

Membership Matters 

Membership 2018 2017 GROWTH 

14,947 14,196 5.29% 

We welcome our new members who joined us last year and thank all of our faithful 

members who have continued to make JPS & Partners “Your Financial Partner For 

Life”. Our continued membership growth is also a testament to a united effort to 

remain a member centric, top performing credit union. 

Our membership grew by 5.29% compared to our target of 4%. A total of 751 new 

members joined our family. Such an impressive growth was the result of our 

vigorous membership campaigns which span parishes, towns and major cities of 

Jamaica. Through the four branches – Half Way Tree, Ocean Boulevard, Kirkvine 

and Ewarton, our team continues to work assiduously to ensure that our members 

receive extraordinary member service. 

We urge you to continue to #thinkJPS&Partners for all your financial needs; home 

improvement, mortgage, motor vehicle financing, savings and investments, and 

life insurance. 

The table below shows the Credit Union’s performance over the past five years. 

DELINQUENCY MANAGEMENT 

We are very appreciative of the fact that 

our members continue to faithfully meet 

their financial obligations. We achieved 

an impressive year end delinquency 

ratio of 1.5%, well below our budgeted 

target of 3% and the industry standard 

of 5%. The need to maintain a low 

delinquency ratio is even now more 

critical as effective January 01, 2018 the 

Credit Union implemented the IFRS 9 

Standard. This Standard requires a 

provision to be made as soon as a loan 

is approved. This means that provisions 

are made even before the loan becomes 

delinquent. 

The management team along with the 

Delinquency Committee must be 

applauded for their efforts in ensuring 

that our non-performing loans portfolio 

remains very low. We also commend our 

members for their diligence. We will 

continue to offer our members practical 

financial guidance towards helping them 

settle their commitments. 

FIVE YEAR FINANCIAL PERFORMANCE - 2014-2018 

2018 2017 2016 2015 2014 

$M $M $M $M $M 

SHARES 1,262.52 1,247.13 1,205.92* 947.58 893.72 

DEPOSITS 1,941.13 1,964.16 1,918.02* 1,858.46 1,901.54 

LOANS 2,651.75 2,655.58 2,445.36 2,071.42 1,957.32 

TOTAL ASSETS 4,238.84 4,223.63 4,110.37 3,700.35 3,675.20 

SURPLUS 71.62 41.96 30.61 41.36 41.82 

INSTITUTIONAL CAPITAL 691.29 676.96** 672.77 600.29 592.01 

MEMBERSHIP 14,947 14,196 13,796 11,840 10,249 

** This item has been restated to effect a 10% transfer of Net Income for the year before honorarium instead of 20% as approved by the 

Registrar of Co-operatives and Friendly Societies. 



Comparison of Delinquent Loans 

2017/2018 

Year Total Loans Delinquent Delinquency 

Loans 

Ratio 

2018 $2.70B 40.85M 1.51% 

2017 $2.68B $61.21M 2.29% 

While we applaud the overall commitment 

and cooperation from our members, the 

Credit Union initiated legal actions 

against three (3) members with property 

secured loans. Two of these properties 

are in the process of being sold and one 

is being advertised for sale. 

Five (5) vehicles were repossessed in 

2018, two were sold, one was returned 

to the member after the loan was repaid 

in full, and two are being advertised 

for sale. 

A Knowledgeable and 

Efficient Team... 


The Credit Union through a competent 

and committed team continue to provide 

our members with a financial partner for 

life through the provision of a wide range 

of services to meet their financial needs 

and aspirations; maintain the financial 

success of the Credit Union; respond to 

the needs of the communities we serve 

and uphold the core values and the 

mission of the Credit Union. This was 

achieved through the dedicated and 

committed cadre of staff who serve the 

organisation. 

Meet Your Management Team 

Joydene Jarrett (MBA) 

Antoinette Robinson (MBA) 

David Goodlitt (BSC) 

Natalie Murray (MBA) 

Denise Ellington (MBA) 

Sandra Robinson Brown (BSc) 

Adrien Titus (MBA) 

Marjorie Richards Johnson (MBA) 

Carl Grant (MBA) 

Shantell Mitchell 

(Diploma- Accounting & Business) 

Staff Complement 

Category 

Number 

Management 11 

Non-Management 18 

Contract 16 

Temporary 3 

General Manager 

Chief Accountant 

Operations Manager (Acting) 

Credit Manager 

Marketing Manager 

Risk & Compliance Manager 

Human Resource Manager 

Branch Manager, Ewarton 

Branch Manager, Kirkvine 

Branch Supervisor (Acting) 

Ocean Boulevard 



During the last quarter of 2018 we 

started the process of critically 

assessing our organisation structure. 

This review is expected to continue into 

2019 especially as it relates to our 

complement of contract and temporary 

employees. Already we have made 

several changes to the current 

organisational structure. We employed 

the services of an IT Manager. Mr 

Kamoy Clarke joined us on January 02, 

2019. This area of our operations was 

previously annexed with our Operations 

Department. We firmly believe that 

technology will determine the future of 

our Credit Union and as such we have 

made this strategic change to ensure 

that this critical area of our operations is 

fully staff. The Marketing Department 

that was annexed to the Treasury 

Department was also separated and a 

Marketing Manager employed to 

manage this member centric area of our 

operations. Our Treasury Department 

is now subsumed into the Finance 

Department. 

# Employee Recognition and 

Development 

During the year the Credit Union 

rewarded our employees who continue 

to provide exemplary service to our 

members. This was achieved through 

the Mid-Year and End of year staff 

recognition award programme. Mr. 

Kevin Embden was awarded employee 

of the year for 2018. 

We continue to provide both internal 

and external training for staff. This 

includes Leadership, Risk Assessment, 

Proceeds of Crime, Customer Service, 

Enterprise Risk Management, Disaster 

Recovery Management and Internal 

Audit Assessment. 

Through our Wellness Activities Staff 

Programme “WASP”, staff embarked 

on a wellness programme namely, Lapa-ton 

and Fitness, which was geared 

towards developing and maintaining a 

Healthy Mind Body and Soul. The 

provision of fruits was also a part of the 

programme. The annual staff excursion 

was held at the Royalton Hotel, 

Trelawny. This excursion was focused 

on teambuilding, improving employee 

morale and hosting of the Family 

Indemnity Plan (FIP) award function. 

The highlight was the end of year 

function held at the Pegasus Hotel 

where the employee of the year and 

other sectional prizes were awarded. 


Armed with decades of experience in 

Credit Union management, accounting 

and financial planning, human resources, 

engineering and law, the board of 

eleven (11) dedicated skilled professionals 

guided JPS& Partners through the 

challenges and opportunities of 2018. 

The Board of Directors is accountable 

to the members for the overall 

performance and governance of the 

Credit Union. The Board is also 

responsible for: setting of the vision of 

the Credit Union, provide the capabilities 

to execute the strategic directives of 

the Credit Union and the monitoring 

and implementation of the strategic 

initiatives. 

Subsequent to the holding of the 

Annual General Meeting on September 

29th and at its first Board of Directors 

Meeting, the Board elected a new 

executive team comprising the 

following: 

David Grey 

David Fleming 

Devon Wright 

Deborah Campbell 

Earl Munroe 

Tricia Robinson 

President 

Vice President 

Treasurer 

Asst. Treasurer 

Secretary 

Asst. Secretary 

Arising from the resignation of 

Nickesha Eulette in November of 2017, 

Mr. Vaughn McDonald was elected to 

serve the unexpired term. 

During the year, the Board established 

eight (8) committees comprising staff 

and volunteers equipped with the 

required expertise to guide and provide 

assistance in the operational areas 

of the organisation. The following 

committees were established during the 

year: Finance and Planning with 

Delinquency as a Sub Committee, 

Human Resource, Infrastructure, Member 

Relations, Risk and Compliance, 

Information Technology and Merger. All 

meetings of these committees are 

chaired by a director who has the 

responsibility to report to the Board on 

matters requiring the approval of the full 

board. To ensure that Board members 

are equipped with the requisite skills to 

be effective and also to ensure good 

corporate governance, board members 

were provided with training in Antimoney 

laundering and the proceeds of 

Crime Act (POCA). 



ATTENDANCE AT BOARD OF DIRECTORS MEETINGS 

Directors Position Possible Actual Excused 

David Grey President 13 10 3 

( Effective September 2018) 

David Fleming Vice President 13 13 - 

(Effective September 2018) 

Devon Wright Treasurer 4 4 - 


Deborah Campbell Asst. Treasurer 13 13 - 


Earl Munroe Secretary 13 11 2 

Tricia Robinson Asst. Secretary 4 3 1 


Clive Segree Director 13 11 2 

Terrence Knight Director 13 12 1 

Donovan Cunningham Director 13 8 5 

Natalie Sparkes Director 13 12 1 

Dwight Hart Director 13 10 3 

Vaughn McDonald Director 5 5 - 

(Effective April 2018) 

Alicia Burnett Asst. Secretary 9 9 - 

OPERATIONAL HIGHLIGHTS 

COMMITMENT TO GOOD GOVERNANCE AND RISK MANAGEMENT 


Risk Management remains a priority for the Credit Union. The Board of Directors has 

ultimate responsibility for risk management. These responsibilities are delegated to 

the Quality Assurance and Risk Management Committee, and the internal Auditors. 

The objectives of this committee is to monitor and control all measures necessary to 

maintain and/or ensure conformance with the recommendations of the Internal 

Auditors, and the Supervisory Committee audits. In addition, the Committee is 

responsible for the review of new and the revision of existing policies and procedures, 

prepare and ensure the Credit Union’s readiness for the soon to be implemented Bank 

of Jamaica (Credit Union) Act, as well 

as the continued strengthening of 

internal controls. The Committee is also 

charged with making recommendations 

regarding risk management within the 

credit union, inclusive of matters 

related to corporate governance and 

fiduciary duties of the management 

and volunteers. 

In execution of its statutory duties 

during the year under review, the 

Committee concentrated on the 

following primary areas: 

• Policy and Procedure Reviews 

• Bank of Jamaica Readiness - 

Impending Regulation 

• Enterprise Risk Management 

(ERM) Framework 

• Risk Factors that emerged during 

the year 

Policy and Procedures 

During the year, Forty (40) polices were 

reviewed; those of similar nature were 

combined which resulted in Twentyfour 

(24) policies been approved by the 

Board of Directors. Procedures were 

also developed to be in sync with the 

associated policies. 

Enterprise Risk Management 

(ERM) Framework 

Enterprise Risk Management (ERM) is 

a comprehensive, systematic and 

collaborative process to identify, 

manage and monitor the Credit Union’s 

risk, review internal and external 

reports to ensure achievement of its 

strategic objectives and continued 

financial stability. In ensuring that all 

significant risks are covered, the Credit 

Union maintains a Risk Register which 



documents all significant risks across 

branches and departments. The Risk 

Register also facilitates continuous 

monitoring and assessment. Management 

uses same to document mitigating 

actions to effectively manage risk within 

the Credit Union. 

2018 Risk Factors 

During the year the Credit Union was 

greatly affected by economic factors 

which the Committee was proactive in 

monitoring the development of some 

possible risk factors that could have 

negatively impacted on our overall 

performance. These included: 

• USA Sanction on Russia that 

affected the Windalco Plant at the 

Ewarton and the Kirkvine Branches. 

• Pending closure of two companies 

associated with the Credit Union. 

• Interest Rate Return on Investment 

• The devaluing of the Jamaica Dollar 

(JA$) against its major counterparts 

These areas were managed through 

constant reviews, adjustments to 

policies, procedures and controls by the 

committee, Board and Management and 

also by creating an awareness among 

all stakeholders of the Credit Union. 

Infrastructure and Development 

During year the Committee worked on 

and completed the following projects: 

• The restrictive covenants governing 

the use of the Lady Musgrave Road 

property were modified. This has 

now paved the way for the future 

development of the property based 

on the vision of the Credit Union. 

• The old and obsolete air conditioning 

ducting was removed from the 

head office building. A new central 

air condition unit was installed. A 

new fresh air inlet duct was 

fabricated and installed to allow for 

better air inlet quality. Plans are in 

place to ensure that the air quality 

remains within the acceptable 

standards. In addition to the above, 

normal building and other 

maintenance work were carried out 

at all our offices and our Lady 

Musgrave Road property. 

For the year 2019 

The Committee will be actively pursuing 

the following: 

• The reconfiguration of the water 

supply infrastructure at the Lady 

Musgrave Road property. This 

reconfiguration will see each tenant 

being responsible for their own 

water supply. 

• To refurbish a section of the roof of 

the head office building. 

• Reconfiguration of existing infrastructure 

to achieve additional 

offices space and also to improve the 

infrastructure on the ground floor of 

the head office. 

• Sound proofing of the Board Room. 

• Painting of the Lady Musgrave Road 

Complex. 

INNOVATIVE TECHNOLOGY 


The focus for 2018 was the upgrading 

of our servers, revamp and launch our 

new website and embark on a project to 

install a new cooling system in the 

information technology room. 

During the year we were able to achieve 


1. Servers were acquired for the 

Ewarton and Kirkvine branches. 

These new servers will allow for 

increase efficiency in the processing 

of members transactions and 

improvement in the communication 

channels between branches. 

2. The Board approve management’s 

recommendation to commence a 

full hardware refresh ie replace the 

servers and acquire additional 

storage Area Network (SAN) in the 

information technology department 

at head office. This strategic 

decision when fully implemented 

will offer cutting edge technology, 

more flexibility and capacity to 

implement technological improvements 

as required and will allow the 

Credit Union to accommodate all 

business activities comfortably for 

the next 3-5 years. The procurement 

of these servers will also allow for 

ample resources to be allocated to 

services, minimize downtime and 

ensure agility within the IT services. 

It also will provide the resources for 

future growth and delivery of 

solutions that will continue to 

ensure that quality service is 

provided to our members while at 

the same time enable the business 

to maintain an edge over its 

competitors. 

3. The development of the new 

website begun during the year and 

is slated for completion in the first 

quarter of 2019. The site when 

completed will provide our members 

with a more intuitive and member 

centric design allowing for easier 



processing of our members requirements. 

The new website will be 

more flexible and will provide our 

members with: more interactive 

forms, better viewing on their mobile 

devices, allow more access to 

information and account balances, 

send requests, etc. 

4. Preparatory work has also began 

on our mobile application. This 

application is a very powerful 

marketing tool and will allow our 

members to access and perform 

transactions in real time from their 

mobile devices. The application will 

enhance our services to our young 

members who use their phones for 

everything. It will also improve the 

take up of our products and 

services as well as reinforce “brand 

loyalty” 

For 2019, the focus will be on: 

1. Full review of our present processes 

via our technology platform. This is 

in an effort to reduce/improve the 

processes required to complete 

specific tasks and transactions. 

2. We will look at a complete disaster 

recovery plan and policy to also 

include our offsite backup stations 

for quick recovery and accuracy in 

failover. 

3. Introduction of a ticketing system to 

monitor and resolve repeated issues 

in a timely manner, monitor all 

member queries and logs all user 

complaints for quick resolutions. 

4. Complete the installation and 

launch of the Mobil application. As 

previously stated this application 

will bring about new features 

allowing members to: check 

account balances, transfer funds, 

pay loans, pay bills (utilities etc) top 

up their cellular devices and 

request letters, all in real-time. 

5. Acquisition of an inventory and 

license management software. 

This software will allow the 

organization to monitor all licenses 

renewal/update, log and inventory 

all items purchase/in possession of 

the credit union thereby allowing for 

increase accountability. 

6. Implementation of a robust IP PBX 

telephony system that will enhance 

communication within branches 

and significantly reduce expenses. 

7. Launch the new website. 

#FOSTERING EDUCATIONAL 

DEVELOPMENT 


We continue to reinforce our strategic 

commitment to education. At our 20th 

annual Scholarship Awards function, 

fifty-four (54) bright, young scholars 

each received bursaries valued at 

$12,500 to continue with their pursuit of 

excellence. The scholarship is 

renewable for each school year up to 

5th form providing that the child 

maintains at least a ‘B’ average. Among 

this batch there were special bursary 

recipients from the Central Branch All 

Age School and the Queens High School, 

two institutions with which the Credit 

Union has formed alliances. Since 2008 

and 2012 respectively, the Credit 

Union has worked closely with both 

Kingston-based schools, implementing 

programmes to empower students with 

life-long skills. At Central Branch, 

volunteers from the Credit Union assist 

teachers in improving the literacy levels 

among students through various reading 

initiatives inclusive of a weekly supply 

of the Gleaner’s Children’s Own 

newspaper. High schoolers at the 

Queens School are encouraged to 

practice good financial habits through JPS 

& Partners’ School Savers programme. 

Our partnership with the Polly Ground 

Basic School and the St. John Bosco 

Career Advancement Institute continues. 

In addition to the bursaries presented, 

one high school graduate was awarded 

with the Albert ‘Bertie’ Morris 

Scholarship. The scholarship, named in 

honour of a Founding Father of the 

Credit Union, Albert Morris, proffers a 

$150,000 grant to a member or the 

child of a member to pursue studies at 

a recognized tertiary institution. The 

‘Bertie’ Morris Scholarship was recently 

expanded to include all categories of 

study. This expansion allowed for a 

medical student to be awarded the 

scholarship for the first time. 

CARING FOR OUR YOUTH... 


Summer for our youth savers and 

members’ children means it is time for 

Youth Summer Camp. This year our 

youngsters were exposed to financial 

planning through talks with our 

Marketing Team where they were 

encouraged to save towards their 

treasures. They were encouraged to 

view their treasures as things that are 

valuable to them. Education was 

deemed to be one such treasure. The 

children also participated in outdoor 

activities. The campers were also 

presented with back to school supplies. 



MEMBER INVOLVEMENT... 


The month of October is annually 

recognised and celebrated as Credit 

Union month. The Credit Union 

Movement used this period to connect 

with its membership while spreading 

awareness of who we are as a 

Movement. During the month we 

successfully hosted several activities at 

our various branch locations. Our 

members were feted at each location. A 

special donation of $200,000.00 was 

made to the Lupus Foundation of 

Jamaica. 

We again hosted our Creative Writing 

and Poster competition. The competition 

is open to students from three (3) of our 

partner schools - The Queen’s School, 

Central Branch All Age School and 

St. John Bosco Career Advancement 

Institute. 

ADVANCING COMMUNITY 


Our social responsibility took the form of 

assistance to our internal and external 

stakeholders. As part of our outreach 

programme, the Credit Union continue 

to make contributions in cash and kind 

to organizations in need. We continue 

with our initiatives such as providing free 

health checks and advice to our 

members on the first working day of 

each month. Our Care-A-Bit fund 

continues to afford us the opportunity to 

provide financial assistance to our 

members who have being affected by 

major illnesses and natural disasters. 

The fund now provides a maximum 

grant of $30,000.00 per member. 

Members can only benefit once from the 

fund. Our partner schools continue to 

be a part of our programme and benefits 

from donations in cash and kind 

throughout the year. 

Externally, we contributed to various 

charitable organisations including the 

Salvation Army, The Gallimore McPherson 

Home, Child Protection & Family Services 

Agency (formerly Child Development 

Agency), the Lupus Foundation of 

Jamaica, Netball Jamaica, churches and 

other organization who sought our 

assistance. We also supported the various 

outreach activities of our members 

through the purchase of tickets, 

We envisage a future that holds many 

possibilities for our Credit Union 

including 

• Membership growth and 

satisfaction 

• More dynamic partnerships 

including merger proposals 

• Loans growth stimulation 

• Human Capital Development 

• Maintain effective governance and 

robust enterprise management 

framework 

• Leveraging technology to improve 

operating efficiency and increase 

in brand awareness 

CONCLUSION 

On behalf of the Board of Directors I 

express sincere gratitude to you, our 

valued members for your commitment 

and dedication to your credit union over 

the years. On behalf of the Board I would 

also like to recognize and thank the 

following persons and entities: 

• The almighty God for his guidance 

and assurance, the anchor that 

keeps us steadfast. 

• Management and staff for their 

commitment and dedication. 

• Board, Management and staff of 

JPS Co, Nesol, Jamaica Private 

Power Company, and Digicel 

Jamaica for their invaluable 

partnership 

• Volunteers – Committee Members 

and Location Representatives for 

their immeasurable effort and 

support throughout the years 

• The Credit Union League, Cuna 

Caribbean Jamaica, Jamaica Cooperative 

Insurance Agency (JCIA), 

Credit Union Fund Management Co 

(CUFMC), Quality Network (QNET), 

and the Registrar of Co-operatives 

and Friendly Societies for their 

continued support. 

• Messrs Samuda & Johnson and 

Richards and Richards – Attorneys 

for the Credit Union 

• Smith and Associates, internal 

auditors and Crowe Horwath, 

external auditors. 

David Grey 

President 


Our Directors 

David Grey 

President ( Effective September 2018) 

David Fleming 

Vice President (Effective September 2018) 

Devon Wright 

Treasurer ( Effective September 2018) 


Asst. Treasurer (Effective September 2018) 

Earl Munroe 

Secretary 


Asst. Secretary (Effective September 2018) 


Directors (Continued) 

Donovan Cunningham 

Director 

Dwight Hart 

Director 

Natalie Sparkes 

Director 

Terrence Knight 

Director 

Clive Segree 

Director 

Clive Segree 

Director 


Treasurer’s Report 

I am very please to present the 

Treasurer’s Report at this our 

64th Annual General Meeting. 

Your Credit Union has 

performed creditable well when 

compared to the previous year’s 

operations. 

ECONOMIC OVERVIEW 

The Jamaican economy continued to 

perform positively in 2018 with 

economic growth of 1.90% (preliminary 

STATIN report). Real GDP increased by 

3.10% compared to an increase of 2.50% 

during 2017. As reported by the 

International Monetary Fund (IMF), in the 

World Economic Outlook Update, global 

economic activity continues to firm up 

and that; “Positive developments 

continue to sustain Jamaica’s economic 

reform program”. The unemployment 

rate was at an all-time low of 8.4 percent, 

with significant gains among women 

and younger workers. 

According to the Bank of Jamaica, the 

economic growth was supported by 

development in agriculture, manufacturing, 

construction, mining and quarrying 

activities. Inflation in 2018 was 2.4% 

relative to 5.2% in 2017. However, the 

Jamaican Dollar depreciated by 1.85% 

against the United States Dollar in 

trading closing the year at $127.72 to 

US$1.00. The Bank of Jamaica continues 

to lead in its effort to stimulate growth in 

the economy. Infact the Governor has 

advised that the Central Bank’s effort for 

2018 was to implement significant 

strategic and targeted steps to 

modernize the central bank to serve a 

new and increasingly competitive and 

dynamic Jamaican economy. 

Devon Wright, Treasurer 

Although faced with the challenges of increased competition, your Credit Union 

demonstrated its ability to develop initiatives, be innovative and retain the 

confidence of you, our valued members. We maintained a competitive edge within 

a hostile market place where our members were aggressively pursued by players 

in the financial sector. 

In responding to the challenges, our competitive deposits and loan rates coupled 

with prudent cash management were the main factors that contributed to the 

success of our Credit Union. We remain in the Movement as one of the leading 

Credit Unions in terms of capital adequacy and per capita savings by members. 

FINANCAL PERFORMANCE 

The Credit Union performed well as at financial year ended December 31, 2018. 

We ended with a surplus of $71.62M which reflects an increase of 70.66% over 

the previous year’s amount of $41.96M. This success was achieved through: 

• The implementation of rigorous con-servation and investment strategies. 

• Strategic objectives executed by Management to disburse new loans whilst 

maintaining a very low delinquency rate. 


Treasurer’s Report (Continued) 

• The increase in the value of our shares traded on the 

Jamaica Stock Exchange. The largest increase was evident 

in our share holdings in Barita Investments Limited. 

Our Credit Union continues to maintain its investment portfolio 

in government instruments, the Jamaica Co-operative Credit 

Union League (JCCUL) and approved investment houses 

considered safe and sound. 

With the required 20% transfer to Statutory Reserve, 

approximately $57.29M will be available for distribution. The 

major items from our financial statements are highlighted 

below: 

INCOME 

Interest income of $415.24M in 2018 reflected a marginal 

increase of $0.66M (or by 0.16%) from $414.58M in 2017. 

The interest income on loans increased by $6.47M, or from 

$347.42M to $353.89M. The unprecedented competition in 

the lending sector continued unabated. Also the weighted 

average interest rates on loans was 13.12% moving from 

13.00% as at December 2017. 

Interest on financial investments increased from $28M to 

$38.62M whilst the interest on liquid assets decreased from 

$39.15M in 2017 to $22.74M in 2018. The decrease in the 

liquid assets was due to the relatively low rates offered in the 

market as the government pursued its strategy of single digit 

interest rates. 

Despite these limitations, Management was still able to 

effectively employ prudent and strategic measures to improve 

our liquidity position and to remain competitive. Through our 

continued daily market surveys, we ensured that the best 

available rates were received on the permissible conservative 

investment instruments. 

Revenue Sources 

Our principal source of income remains members’ loans. 

Interest on loans accounted for 76.88% of total revenue, while 

13.33% was derived from investment income, 4.40% from fees, 

1.71% from property rental and 3.68% from other sources. 

EXPENSE 

Expenses as a percentage of gross income was 81.41% as 

against 89.82% in the previous year. Interest expense totaled 

$79.31M, reflecting a reduction of $23.11M or 22.57% from 

the previous year. 



Operating expenses declined by 3.75% or by $10.96M over 

2017, moving from $292.30M in 2017 to $281.33M in 2018. 

Personnel expenses reduced by $4.38M or 3.03% over 2017. 

Expenses include salary and benefits awarded to staff under 

the first year of the new Collective Labour Agreement, along 

with education, training, health and uniform benefits. 

Administration expenses declined by 8.98% or by $10.38M. 

During the year significant effort was exerted to control this 

critical area of our operations especially in the areas of security, 

printing, stationery and supplies and various other general 

expenses during the year. 

Representation & Affiliation expenses decreased by $1.89M or 

6.47%. This expense is in relation to costs for League and 

Other Dues and also for meetings held, chief of which is our 

Annual General Meeting. 

The Board and Management will continue to be vigilant in 

containing operating costs to ensure that we remain viable 

and profitable. In exercising restraint over costs, we will 

also endeavor to improve the quality of service that our 

members deserve. 

BALANCE SHEET 

Total Assets increased by $15.22M to $4.24B at the end of 

2018, largely as a result of our investment portfolio. The Liquid 

Assets and Financial Investments stood at $1.38B at the end 

of 2018, or a 12.49% increase 

The graphs below shows the Credit Union’s Investments, Loans 

and Total Assets for the period 2014 to 2018. 

Allocation of Revenues 

The chart below show the allocation of revenue generated for 

2018. 20.28% was spent on financial expenses, 30.42% on 

personnel expenses, 24.77% for administration expenses, 

5.93% for representation cost and 3.04% for impairment 

provision and 15.56% remaining as Surplus. 

The gross Loan portfolio increased by 1% or $24.72M over the 

prior year moving from $2.67B to $2.70B in 2018. This 

marginal increase was due to the US sanctions which affected 

two of our locations namely, Ewarton and Kirkvine. However, 

several strategically timed loan promotions were introduced 

throughout the year that yielded fair results. 



The Permanent Shares portfolio increased marginally from $74.73M 

to $75.01M as a result of increased membership. IWe mention that 

no dividend was applied to permanent shares for 2017 because of 

the additional provision of $36.83M that was required for the 

implementation of IFRS 9. 

Our members’ voluntary shares 

increased to $1.26B when compared to 

the previous year of $1.25B. The 

economic constraints forced limitations 

on members’ ability to save. The 

compulsory savings requirement 

attached to some loan products 

contributed to the growth. 

Members’ savings deposits decreased 

by $23M or from $1.96B in 2017 to 

$1.94B in 2018. This decrease was 

largely due to members who were made 

redundant, utilizing their savings to 

repay their loans. Notwithstanding, we 

will continue to offer attractive rates on 

our savings products, creating 

opportunities to encourage savings and 

build wealth for our members. 

Loan Delinquency 

The Delinquency ratio for 2018 decreased to 1.51% of the portfolio compared to 

2.29% at the end of 2017; a slight reduction of 0.78%. This ratio remains well within 

the international Credit Union benchmark of 5%. The Credit Union continues to 

provide financial counselling to members and, when necessary, utilize all available 

avenues for recovering the amounts owed by delinquent borrowers. 

Management will remain vigilant in our efforts to maintain low levels of delinquency 

throughout the coming year while increasing the rate of growth of the loans portfolio. 

PEARLS RATIO ANALYSIS 

PEARLS Ratios Standard 2018 2017 2016 2015 2014 

% % % % % 

Net Loans /Total Assets 60-80 62.56 62.87 59.49 55.98 53.25 

Savings Deposits/Total Assets 70-80 75.58 76.03 76 75.83 76.06 

Institutional Capital/Total Assets >=10 18.08 17.80 16.37 16.22 16.11 

Total Delinquency/Gross Loans Portfolio


The Credit Union continues to perform above standard as measured by the universal 

Credit Union PEARLS ratios standard. At December 31, 2018 Institutional Capital to 

Total Assets ratio at 18.08% exceeded the PEARLS standard of 8% and 6% minimum 

requirement for the Bank of Jamaica. 

The Net Loans to Total Assets ratio moved from 62.87% at the end of 2017 to 62.56% 

in 2018; a marginal decline of 0.31%. Total Savings deposits to Total Assets also 

recorded a marginal decline from 76.03% to 75.58% for the similar period. The 

favorable Operating Expense to Average Assets Ratio of 6.65% in 2018 and 7.01% 

in 2017 are evidence of the continued prudent management of the Credit Union’s 

resources. Noteworthy is the fact that we have exceeded all our Key Performance 

Ratios as measured by the PEARLS Standard. 

DIVIDEND DECLARATION 

The Board of Directors is recommending a dividend payment of 30% on the 

Permanent Shares balance of each member on record as at December 31, 2018. 

2018 RECOMMENDED DISTRIBUTION OF SURPLUS 

Net Surplus 71,619,627 

Transfer of 20% to Statutory Reserves (14,323,925) 

Net Income Before Distribution 57,295,702 

Distribution 

Institutional Capital 10,000,000 

Dividend on Permanent Shares 16,390,550 

Scholarship 4,000,000 

Care-A-Bit 750,000 

Honoraria 3,000,000 

Organizational Re-Alignment 20,000,000 

Technological Improvement 3,155,152 

57,295,702 

CONCLUSION 

The year 2018 was a very challenging yet ultimately successful one for the Credit 

Union: 

• recorded a surplus of $71.62M 

• restricted delinquency to 1.51% 

We commit to the continued 

improvement of service delivery, the 

development of affordable, relevant 

products for our members and the 

prudent management of the resources 

of the Credit Union. 

ACKNOWLEDGEMENTS 

We give thanks to God for His continued 

guidance and blessing, the 

management and staff for their hard 

work and dedication towards the 

continued success of the Credit Union. 

Our sincere gratitude is also extended 

to fellow members of the Board, other 

volunteers, our internal and external 

auditors, the Registrar of Cooperativeand 

Friendly Societies, the 

Jamaica Co-operative Credit Union 

League Limited, our partner companies 

and to you our valued members for your 

support throughout the year. As your 

premier financial partner, we will 

continue to provide you with the very 

best products and services available. 

Finally, we thank God for His continued 

guidance and protection during the last 

year, and for the blessings He bestowed 

on our Credit Union. 

Devon Wright 

Treasurer 

• improved the avenues for members’ to more conveniently transact business with 

the Credit Union remotely by expanding our banking payment platform and 


5 


Five Year Comparative Financial Summary 

Income Statement 

2018 2017 2016 2015 2014 

$M $M $M $M $M 

Interest Income 415.24 

414.58 

399.49 

396.65 

390.74 

Interest Expense 93.37 

119.73 

125.05 

133.71 

135.13 

Net Interest Income 321.87 

294.84 

274.44 

262.94 

255.61 

Increase in Prov. For Loan Loss 13.96 

4.76 

12.11 

12.13 

14.83 

Net Interest Income after Provision 307.91 

290.08 

262.32 

250.81 

240.78 

Non - Interest Income 45.04 

44.18 

41.47 

36.2 

32.71 

Gross Margin 352.95 

334.26 

303.78 

287.01 

273.49 

Operating Expense 281.33 

292.30 

273.17 

245.65 

231.68 

Net Surplus 71.62 

41.96 

30.61 

41.36 

41.82 

Balance Sheet $M $M $M $M $M 

Total Assets 4,238.84 4,223.63 4,110.37 3,700.35 3,675.19 

Members' Voluntary Shares 1,262.52 1,247.13 1,208.67 947.58 893.73 

Permanent Shares 75.01 74.74 74.14 70.48 70.12 

Loans to Members 2,651.75 2,655.58 2,445.36 2,071.42 1,957.32 

Members' Savings Deposits 1,941.13 1,964.17 1,915.27 1,858.46 1,901.55 

Financial Investments & Liquid Assets 1,380.67 1,227.39 1,364.51 1,387.11 1,429.78 

Institutional Capital 691.29 676.97 672.77 600.29 592.01 



Income and Expenditure 

INCOME & EXPENDITURE 

GROWTH PERCENTAGE 

2017 2018 

REDUCTION CHANGE 

$ $ $ % 

OUR INCOME WAS EARNED FROM 

347,419,959 INTEREST ON MEMBERS' LOANS 353,886,855 6,466,896 2% 

67,156,286 INTEREST ON INVESTMENT 61,354,078 (5,802,208) -9% 

44,181,573 OTHER INCOME 45,037,573 856,000 2% 

458,757,818 460,278,506 1,520,688 

OUR COSTS TO OPERATE THE 

CREDIT UNION WERE: 

102,425,225 INTEREST ON MEMBERS' SAVINGS 79,311,915 (23,113,310) -29% 

17,307,386 OTHER FINANCIAL COSTS 14,055,174 (3,252,212) -23% 

29,173,997 REPRESENTATION & AFFILIATION 27,285,570 (1,888,427) -7% 

115,548,386 ADMINISTRATION 105,168,893 (10,379,493) -10% 

4,761,725 PROVISION FOR IMPAIRMENT 13,959,162 9,197,437 66% 

144,415,553 PERSONNEL 140,038,199 (4,377,354) -3% 

3,164,676 MARKETING & PROMOTIONS 8,839,966 5,675,290 64% 

416,796,948 388,658,879 (28,138,069) -7% 

41,960,870 LEAVING A BALANCE OF 71,619,627 29,658,757 41% 

FROM WHICH WE SET ASIDE 

8,392,174 20% STATUTORY RESERVE 14,323,925 5,931,751 41% 

UNDISTRIBUTED HONORARIUM - - 

33,568,696 NET SURPLUS REMAINING 57,295,702 23,727,006 41% 


Our Team Managers 

Joydene Jarrett 

General Manager 

Antoinette Robinson 

Chief Accountant 

Natalie Murray 

Credit Manager 

David Goodlitt 

Acting Operations and IT Manager 

Sandra Robinson-Brown 

Risk and Compliance Manager 

Marjorie Richards-Johnson 

Branch Manager, Ewarton 


Our Team Managers (Continued) 

Carl Grant 

Branch Manager, Kirkvine 

Shantel Mitchell 

Acting Branch Supervisor, Ocean Boulevard 

Adrien Titus 

HR Manager 

Denise Ellington 

Marketing Manager 


Our Team Members 

Half Way Tree Branch 

Andrea Morrison -Boodie 

Accounting Officer 

Anicea Massias 

Archivist 

Atalia Barnett 

Member Service Representative 

Audrey Coward 

Investment Officer 

Bevanny McKenzie 

Credit Officer 

Chanick Miller 


Chavez Williams 

IT Administrator 

Christal Henderson 

Delinquency Officer 

Danielle Dyke 


Dianaya Maxwell-Orr 

Accountant 

Faye Simpson 


Joan Williams 

Office Attendant/Bearer 


Our Team Members: Half Way Tree Branch (Continued) 

Kevin Embden 


Kharla Davis 

Member Services Representative 

Marcia Lewis 


Mark Campbell 

IT Administrator 

Michell Taffe 

Accounting Officer (Payables) 

Peter Allen 


Sharon Walker 


Sueann McAnuff 

Marketing Administrative Assistant 

Suzette Leung 

Receptionist 

Tavia Manhertz 

Securities Officer 

Zurie Johnson 

Marketing Officer 

Zurie Johnson 

Marketing Officer 


Our Team Members: Ocean Boulevard Branch 

Iva Thomas 


Jerdean Gregory 

Clerical Assistant 

Stacey-Ann Gillespie 


Tina-Gaye Douglas-Wee-Ellis 


Our Team Members : Ewarton Branch 

Andre Barton 


Janet Russell 


Judine Richards 

Administrative Assistant 

Sonia Robinson 


Stephanie McDonald 

Business Support Technician 

Margaret Sue 

President 


Our Team Members : Kirkvine Branch 

Anthony Brown 


Beverly Allen 


Janet Holness-Williams 

Accounts Relations Officer 

Kenesha Sinclair 


Marie Young-McNamee 

Management Accountant 

Sharon Wilkinson 



Our Location Representatives 

Donna Johnson 

JPS Bay West 

Claudette Dixon 

JPS Bogue 

Denise Warren 

JPS Bogue 

Phillipa Whyte 

JPS East Parade 

Clover Green-Gordon 

JPS Falmouth 

Valerie Bennett, 

JPS Hunts Bay 

Donna Barrett 

JPS Rockfort 

Carol Aitcheson 

Jamaica Energy Partners 

Christine Roberts, 

Jamaica Private Power Company 

Audley Richards 

JPS Mandeville 

Natoya Smith 

JPS Morant Bay 

Andrea Thomas 

JPS New Kingston 

Taundria Williams 


Sidoney Vassell 


Tricia Hay 


Hortense Hall 


Hyacinth Mullings 

JPS Burke Road 

Blondette Wright 

JPS Old Harbour 

Althea Thorpe 

JPS Portmore 

Albert Henry 

JPS Old Harbour 

Jullite Reeves 

JPS Paradise/Black River 

Debourne Martin 

Digicel, Ocean Boulevard 

Ricky Purkiss 

Digicel, Montego Bay 

Rose-Marie Blake 

Digicel, Montego Bay 

Opal Easy 

National Energy Solutions Limited 

Una Bailey 

JPS Twickenham Park. 

Shoneika Dalling 

JPS St. Ann’s Bay 

Desmond Austin 

JPS St. Ann’s Bay 

Rosemerrie Morgan 

JPS Systems Control, ECS 

Delmar Eccles 

JPS White River 

Haley Clarke 

JPS Wilmic 


Financial 

Statements 

as at December 31, 2018 

Keep moving with a MOTOR VECHICLE LOAN

FINANCIAL STATEMENTS 

For the year ended 31st December 2018 

(Expressed in Jamaican Dollars unless otherwise indicated) 

I N D E X 

PAGE 

REPORT OF THE INDEPENDENT AUDITORS TO THE 

REGISTRAR OF CO-OPERATIVES AND FRIENDLY SOCIETIES 50-53 

FINANCIAL STATEMENTS: 

Statement of Financial Position 54 

Statement of Comprehensive Income 55 

Statement of Changes in Equity - Summary 56 - 57 

Statement of Changes in Equity - Non-Institutional Capital 58 - 59 

Statement of Changes in Equity - Institutional Capital 60 

Statement of Cash Flows 61 

Notes to the Financial Statements 62 - 105

REPORT OF THE INDEPENDENT AUDITORS 

TO THE REGISTRAR OF CO-OPERATIVES 

AND FRIENDLY SOCIETIES 

RE JPS & PARTNERS CO-OPERATIVE CREDIT UNION LIMITED 

(A SOCIETY REGISTERED UNDER THE CO-OPERATIVE SOCIETIES ACT) 

Opinion 

We have audited the financial statements of JPS & Partners Co-operative Credit Union Limited, which 

comprise the statement of financial position as at 31st December 2018, the statement of comprehensive 

income, statements of changes in equity, cash flows for the year then ended, and explanatory notes to the 

financial statements, including a summary of significant accounting policies. 

In our opinion, the accompanying financial statements give a true and fair view of the financial position of 

the Credit Union as at 31st December 2018, and of its financial performance and its cash flows for the 

year then ended in accordance with International Financial Reporting Standards (IFRSs). 

Basis for Opinion 

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities 

under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial 

Statements section of our report. We are independent of the Credit Union, in accordance with the 

International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants 

(IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these 

requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and 

appropriate to provide a basis for our opinion. 

Key Audit Matter 

How the matter was addressed during the audit 

Our procedures in this area includes the 

Expected Credit Loss ('ECL) on Financial Assets following; 

IFRS 9 was implemented by the entity on January 1, Obtaining an understanding of the models 

2018. The adopted standard is new and complex and used by the entity for the calculation of 

requires the entity to recognise expected credit losses expected credit losses including 

('ECL') on financial assets, the determination of which is governance over the determination of key 

highly subjective and requires managment to maje judgments. 

significant judgment and estimates 

The key areas requiring greater management judgment 

include the identification of significant increase in credit 

risk ('SICR"), the determination of probabilities of default, 

loss given default, exposure at default and the 

implication of forward-looking information. 

Significant management judgement is used in 

determining the appropriate variables and assumptions 

used in the ECL computations, which increase the risk 

of ,material mistatement. 

 

 

Testing the design and operating 

effectiveness of the key controls over the 

completeness and accuracy of the key 

data inputs into IFRS 9 impairment 

models for investments. 

Testing the completeness and accuracy of 

the data used in the models of the 

underling accounting records based on a 

sample basis.






Key Audit Matter 

Expected Credit Loss ('ECL) on Financial Assets 

We therefore determined that impairment on loans 

receivbale and investment securities has a high 

degree of estimated uncertainty. 

In addition, disclosure regarding the entity's application 

if IFRS 9 are key to understanding the change from IAS 

39 as well as explaining the key judgments and 

materila inputs to the IFRS9 ECL results. 

Other information 

How the matter was addressed during the audit 

Our procedures in this area includes the 

following; 

If, based on the work we have performed, we conclude that there is a material misstatement in this other 

information, we are required to report that matter to those charged with governance. 

Responsibilities of Management and Those Charged with Governance for the Financial Statements 

Management is responsible for the preparation and fair presentation of the financial statements in 

accordance with IFRSs, and the Co-operative Societies Act, and for such internal control as management 

determines is necessary to enable the preparation of financial statements that are free from material 

misstatement, whether due to fraud or error. 

In preparing the financial statements, management is responsible for assessing the Credit Union’s ability to 

continue as a going concern, disclosing, as applicable, matters related to going concern and using the 

going concern basis of accounting unless management either intends to liquidate the Credit Union or to 

cease operations, or has no realistic alternative but to do so. 

Those charged with governance are responsible for overseeing the Credit Union’s financial reporting process. 

 

 

Evaluation of the appropriateness of 

theentity's impairment methodology 

including (SICR) criteria presented 

Assessment of the assumptions for 

probaility of default, loss given defaulat 

and exposure at default. 

Assessment of the adequacy of the 

disclosure of the key assumption of the key 

assumptions and judgements as well as the 

detials of transition adjustment for 

compliance with IFTRS 9. 

Management is responsible for the other information. The other information comprises the information 

included in the Annual Report, but does not include the financial statements and our auditor's report 

thereon. The Annual Report is expected to be made available to us after the date of this auditor's report. 

Our opinion on the financial statements does not cover the other information and we do not express 

any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information 

identified above when it becomes available and, in doing so, consider whether the other information is 

materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise 

appears to be materially misstated.

g 






Auditors’ Responsibilities for the Audit of the Financial Statements 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are 

free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that 

includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an 

audit conducted in accordance with ISA’s will always detect a material misstatement when it exists. 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, 

they could reasonably be expected to influence the economic decisions of users taken on the basis of these 

financial statements. 

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional 

skepticism throughout the audit. We also: 

▪ 

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud 

or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that 

is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material 

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve 

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

▪ 

▪ 

▪ 

▪ 

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that 

are appropriate in the circumstances, but not for the purpose of expressing an opinion on the 

effectiveness of the Credit Union's internal control. 

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting 

estimates and related disclosures made by management. 

Conclude on the appropriateness of management's use of the going concern basis of accounting and, 

based on the audit evidence obtained, whether a material uncertainty exists related to events or 

conditions that may cast significant doubt on the Credit Union's ability to continue as a going concern. If 

we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to 

the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our 

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. 

However, future events or conditions may cause the Credit Union's to cease to continue as a going 

concern. 

Evaluate the overall presentation, structure and content of the financial statements, including the 

disclosures, and whether the financial statements represent the underlying transactions and events in 

a manner that achieves fair presentation. 

We communicate with those charged with governance regarding, among other matters, the planned scope 

and timing of the audit and significant audit findings, including any significant deficiencies in internal control 

that we identify during our audit.






Report on Additional Matters as Required by the Co-operatives Societies Act 

We have obtained all the information and explanations which, to the best of our knowledge and belief, were 

necessary for the purposes of our audit. In our opinion, proper accounting records have been maintained, 

so far as appears from our examination of those records, and the financial statements, which are in 

agreement therewith, give the information required by the Co-operatives Societies Act, in the manner 

required.

STATEMENT OF FINANCIAL POSITION 

as at 31st December 2018 

P 


2018 2017 2016 

ASSETS: Note $ $ $ 

EARNING ASSETS: 

Liquid Assets 5 945,902,522 880,077,909 755,485,631 

Loans to Members after Provision for Impairment 6 2,651,747,116 2,655,578,278 2,445,359,308 

Financial Investments 8 434,768,226 347,310,756 609,024,021 

Investment Property 9 13,973,347 14,386,528 14,799,709 

Total Earning Assets 4,046,391,211 3,897,353,471 3,824,668,669 

NON-EARNING ASSETS: 

Liquid Assets 

Cash and Cash Equivalents 10 30,954,679 149,561,056 76,186,932 

Other Assets 

Receivables 11 29,013,684 40,699,889 57,673,379 

Total Non-Earning Assets 59,968,363 190,260,945 133,860,311 

Property, Plant & Equipment 12 81,693,082 93,669,806 104,351,719 

Retirement Benefit Asset 13 50,792,000 42,344,000 47,494,000 

132,485,082 136,013,806 151,845,719 

TOTAL ASSETS 4,238,844,656 4,223,628,222 4,110,374,699 

LIABILITIES: 

INTEREST BEARING LIABILITIES: 

Members' Voluntary Shares 14 1,262,521,161 1,247,133,471 1,205,920,424 

Savings Deposits 15 1,941,126,986 1,964,165,917 1,918,020,812 

Total Interest Bearing Liabilities 3,203,648,147 3,211,299,388 3,123,941,236 

NON-INTEREST BEARING LIABILITIES: 

External Credits 16 13,120,062 14,144,768 11,738,764 

Payables 17 34,680,489 50,715,780 53,033,630 

Accruals 17,292,930 12,947,101 10,294,640 

Deferred Income 18 4,827,814 - - 

Total Non Interest Bearing Liabilities 69,921,295 77,807,649 75,067,034 

EQUITY: 

Members' Permanent Share Capital 19 75,013,942 74,735,286 74,144,785 

Non-Institutional Capital 20 198,968,869 182,817,421 * 164,449,253 

Institutional Capital 21 691,292,403 676,968,478 * 672,772,391 

Total Capital 965,275,214 934,521,185 911,366,429 

TOTAL LIABILITIES AND EQUITY 4,238,844,656 4,223,628,222 4,110,374,699 

* Restatement 

These items have been restated to effect a 10% transfer of Net Income for the year before honoraria instead of 20% as 

approved by the Registrar of Co-Operatives and Friendly Societies. 

The accompanying notes form an integral part of the financial statements. 


STATEMENT OF COMPREHENSIVE INCOME 



2018 2017 

Note $ $ 

INTEREST INCOME: 

Liquid Assets 22,738,541 39,153,853 

Loans to Members 353,886,855 347,419,959 

Financial Investments 38,615,537 28,002,433 

415,240,933 414,576,245 

INTEREST EXPENSE: 

Interest Expense on Members' Voluntary Shares 17,304,095 22,649,108 

Savings Deposits 

62,007,820 79,776,117 

Other Financial Costs 

25 14,055,174 17,307,386 

93,367,089 119,732,611 

NET INTEREST INCOME 321,873,844 294,843,634 

Increase in Provision for Loan Impairment 7 15,119,579 4,761,725 

Increase in Provision for Investment Impairment 1,160,417 - 

NET INTEREST INCOME AFTER 

PROVISION 307,914,682 290,081,909 

NON-INTEREST INCOME 

Rental - investment property 7,854,452 7,326,803 

Net Fee Income 20,238,122 20,073,173 

Other 26 16,944,999 16,781,597 

GROSS INCOME 352,952,255 334,263,482 

Less Operating Expenses 27 281,332,628 292,302,612 

NET INCOME BEFORE HONORARIA 71,619,627 41,960,870 

Honoraria Payment - (2,062,500) 

NET INCOME AFTER HONORARIA 71,619,627 39,898,370 

OTHER COMPREHENSIVE INCOME 

Items that will never be classified to Profit or Loss: 

Minimum Business Tax (60,000) (60,000) 

Pension Income/(Expense) 13 8,448,000 (5,150,000) 

TOTAL COMPREHENSIVE INCOME AFTER HONORARIA 80,007,627 34,688,370 



STATEMENT OF CHANGES IN EQUITY 


SUMMARY 


Members' 

Non- 

Permanent Share Institutional Institutional 

Capital Capital Capital Total 

$ $ $ $ 

Balance at 31st December 2016 74,144,785 164,449,253 672,772,391 911,366,429 

Minimum Business Tax - (60,000) - (60,000) 

Pension Income - (5,150,000) - (5,150,000) 

Scholarship Fund - (1,737,903) - (1,737,903) 

60th Anniversary Celebration - (6,408) - (6,408) 

Care-a-bit Reserve - 695,000 - 695,000 

Building Reserves - 3,613,009 - 3,613,009 

Software Reserve - 750,000 - 750,000 

Organisational Alignment - 8,000,000 - 8,000,000 

Appropriations of Net Surplus for 2016 

Dividends on Permanent Shares - (7,362,354) - (7,362,354) 

Youth Programme Reserve - (750,000) - (750,000) 

Care-a-bit Reserve - (750,000) - (750,000) 


Organisational Alignment - (8,000,000) - (8,000,000) 

Software Reserve - (750,000) - (750,000) 

Building Reserves - (3,613,009) - (3,613,009) 

Net Income after Honoraria - 39,898,370 - 39,898,370 

Transfer from Redemption Reserve - (1,012,446) - (1,012,446) 

Provision over-provided - (4) - (4) 

Transfer of 20% of Net Income for the year before honoraria 

- (8,392,174) 8,392,174 - 

Amount Subscribed during year 590,501 - - 590,501 

Balance at 31st December 2017 as previously reported 74,735,286 178,621,334 681,164,565 934,521,185 

Adjustment for reduction in transfer of Net Income for the year 

before honoraria from 20% to 10% 

- 4,196,087 (4,196,087) - 

Impact on transition to IFRS 9 (ECL on loans) 

- (30,131,122) - - 

(6,700,000) - - 

Impact on transition to IFRS 9 (ECL on investments) - 

Balance at 31st December 2017 as restated 74,735,286 145,986,299 676,968,478 934,521,185 





SUMMARY - Continued 


Members' 

Non- 

Permanent Share Institutional Institutional 

Capital Capital Capital Total 

$ $ $ $ 


Minimum Business Tax - (60,000) - (60,000) 

Pension Income - 8,448,000 - 8,448,000 


Care-a-bit Reserve - (30,000) - (30,000) 

Software Reserve - (2,699,635) - (2,699,635) 

Redemption Reserves - 4,285,500 - 4,285,500 

General Reserve - (14,491,398) - (14,491,398) 

IFRS 9 Provisons 36,831,122 36,831,122 

Donation Reserve - - - - 



IFRS 9 Provision - (36,831,122) - (36,831,122) 

Redemption Reserve - (5,000,000) - (5,000,000) 

Software Reserve - 2,699,635 - 2,699,635 

Net Income after Honoraria - 71,619,627 - 71,619,627 

Transfer from General Reserve - 14,491,398 - 14,491,398 

Write Offs - (9,319,132) - (9,319,132) 

Entrance Fees - - - - 

Transfer of 20% of Net Income for the year before honoraria 

- (14,323,925) 14,323,925 - 

Amount Subscribed during year 278,656 - - 278,656 

Balance at 31st December 2018 75,013,942 198,968,869 691,292,403 1,002,106,336 





NON-INSTITUTIONAL CAPITAL 


Balance at 31st December 2016 brought forward 

Other Retirement Undistributed 

Capital Non-Qualifying Benefit Net 

Reserves Reserves Reserves Income Total 

$ $ $ $ $ 

17,191,827 68,448,165 47,494,000 31,315,261 164,449,253 

Net Income after Honoraria - - - 39,898,370 39,898,370 

Other Comprehensive Income 

Minimum Business Tax - - - (60,000) (60,000) 

Pension Income - - (5,150,000) - (5,150,000) 

Total Comprehensive Income for the Year after Honoraria 

- - (5,150,000) 39,838,370 34,688,370 

Scholarship Fund - (2,937,903) - - (2,937,903) 

Youth Programme Reserve - (750,000) - - (750,000) 

60th Anniversary Celebration - (6,408) - - (6,408) 

Care-a-bit Reserve - (55,000) - - (55,000) 


Dividends on Permanent Shares - - - (7,362,354) (7,362,354) 

Youth Programme Reserve - 750,000 - (750,000) - 

Care-a-bit Reserve - 750,000 - (750,000) - 

Scholarship Fund - 1,200,000 - (1,200,000) - 

Organisational Alignment - 8,000,000 - (8,000,000) - 

Software Reserve - 750,000 - (750,000) - 

Building Reserves - 3,613,009 - (3,613,009) - 

Transfer from Redemption Reserve 

Provision over-provided 

Transfer of 20 % of Net Income for the Year before Honoraria 

- - - (1,012,446) (1,012,446) 

(154) - - 150 (4) 

- - - (8,392,174) (8,392,174) 

Total Transactions with Owners ( 154) 11,313,698 - ( 31,829,833) (20,516,289) 

Balance at 31st December 2017 as previously reported 17,191,673 79,761,863 42,344,000 39,323,798 178,621,334 

Adjustment for reduction in transfer of Net Income for the year 

before honoraria from 20% to 10% 

Impact on transition to IFRS 9 (ECL on loans) 

Impact on transition to IFRS 9 (ECL on investments) - 

- 

- - - 4,196,087 4,196,087 

(30,131,122) 

(6,700,000) - - - - (30,131,122) 

(6,700,000) 

Balance at 31st December 2017 as restated 17,191,673 42,930,741 42,344,000 43,519,885 145,986,299 

* Restatement 

This item have been restated to effect a 10% transfer of Net Income for the year before honoraria instead of 20% as approved by the Registrar of Co-Operatives and 

Friendly Societies. 

(i) 

(ii) 

Capital Reserves represent unrealised gain on revaluation of the Co-operative's building. 

Capital Development Reserves are being set aside for the future acquisition of Computer Equipment and Software. 




NON-INSTITUTIONAL CAPITAL - Continued 


Capital Other Retirement Undistributed 

Revaluation Non-Qualifying Benefit Net 

Reserves Reserves Reserves Income Total 

$ $ $ $ $ 

Balance at 31st December 2017 as previously reported 17,191,673 42,930,741 42,344,000 43,519,885 145,986,299 

Net Income after Honoraria - - - 71,619,627 71,619,627 

Other Comprehensive Income 

Minimum Business Tax - - - (60,000) (60,000) 

Pension Income - - 8,448,000 - 8,448,000 

Total Comprehensive Income for the Year after Honoraria 

Transactions with Owners 

- - 8,448,000 71,559,627 80,007,627 

Scholarship Fund - (2,437,500) - - (2,437,500) 

Youth Programme Reserve - (200,000) - - (200,000) 

Care-a-bit Reserve - (30,000) - - (30,000) 

Software Reserve - (2,699,635) - 2,699,635 - 

Redemption Reserve - (714,500) - - (714,500) 

General Reserve - (14,491,398) - 14,491,398 - 


Scholarship Fund - 1,105,927 - (1,105,927) - 

IFRS 9 Provisions - 36,831,122 - (36,831,122) - 

Redemption Reserve - 5,000,000 - (5,000,000) - 

Write offs - - - (9,319,132) (9,319,132) 

Transfer of 20 % of Net Income for the Year before Honoraria 

- - - (14,323,925) (14,323,925) 

Total Transactions with Owners - 22,364,016 - (49,389,073) (27,025,057) 

Balance at 31st December 2018 17,191,673 65,294,757 50,792,000 65,690,439 198,968,869 




INSTITUTIONAL CAPITAL 


Business Statutory 

Combination & Legal Revenue 

Reserve Reserves Reserves Total 

$ $ $ $ 

Balance at 31st December 2016 297,610,477 330,931,707 44,230,207 672,772,391 

Transfer of 20 % of Net Income for the Year before Honoraria - 8,392,174 - 8,392,174 

Balance at 31st December 2017 as previously reported 297,610,477 339,323,881 44,230,207 681,164,565 

Adjustment for reduction in transfer of Net Income for the year before 

honoraria from 20% to 10% 

- (4,196,087) - (4,196,087) 


- 

Transfer of 20 % of Net Income for the Year before Honoraria - 14,323,925 - 14,323,925 

Balance at 31st December 2018 297,610,477 349,451,719 44,230,207 691,292,403 

* Restatement 

This item have been restated to effect a 10% transfer of Net Income for the year before honoraria instead of 20% as approved by the Registrar of Co- 

Operatives and Friendly Societies. 



STATEMENT OF CASH FLOWS 




$ $ 

Cash flows from Operating Activities: 

TOTAL COMPREHENSIVE INCOME 80,007,627 34,688,370 

Non- cash items included in income 

Depreciation - Property, Plant and Equipment & Investment Property 21,018,734 21,529,908 

Retirement Benefit Asset (8,448,000) 5,150,000 

Loss on Disposal of Property, Plant & Equipment 2,212 1,499,117 

Provision for Loan Impairment (28,551,231) (549,788) 

Minimum Business Tax 60,000 60,000 

Interest Income (415,240,933) (414,576,245) 

Interest Expense 79,311,915 102,425,225 

(241,317,615) (249,773,413) 

Decrease/(Increase) in Operating Assets 

Other Assets 5,119,102 7,702,213 

Increase/(Decrease) in Operating Liabilities 

Accruals 4,345,829 2,652,461 

External Credit (1,024,706) 2,406,004 

Payables (8,648,086) 800,170 

Cash Used in Operations 

(241,525,476) (236,212,565) 

Interest Received 421,808,036 423,847,522 

Interest Paid (86,699,120) (103,480,745) 

Minimum Business Tax Paid (60,000) (60,000) 

Net Cash Provided by Operating Activities 93,523,440 84,094,212 

Cash Flows from Investing Activities: 

Loans to Members (25,682,997) (211,731,686) 

Financial Investments (87,457,470) 261,713,265 

Additions to Property, Plant and Equipment (8,631,042) (11,935,228) 

Proceeds on Disposal of Property, Plant and Equipment (2,212) 1,297 

Net Cash (Used in)/Provided by Investing Activities 

(121,773,721) 38,047,648 

Cash Flows from Financing Activities: 

Savings Deposits (23,038,931) 46,145,105 

Members' Voluntary Shares 15,387,690 41,213,047 

Subscription to Permanent Shares 278,656 590,501 

Dividend Paid - (7,362,354) 

Scholarship Reserve (2,437,500) (2,937,903) 

Youth Programme (200,000) (750,000) 

60th Anniversary Celebration - (6,408) 

Care-A-Bit Reserve (30,000) (55,000) 

General Reserve (14,491,398) - 

Redemption Reserve - (1,012,446) 

Net Cash (Used in)/Provided by Financing Activities (24,531,483) 75,824,542 

Increase in Liquid Assets (52,781,764) 197,966,402 

Liquid Assets at Beginning of Year 1,029,638,965 831,672,563 

Liquid Assets at End of Year 976,857,201 1,029,638,965 

Liquid Assets - Earning 945,902,522 880,077,909 

Liquid Assets - Non-Earning 30,954,679 149,561,056 

976,857,201 1,029,638,965 



NOTES TO THE FINANCIAL STATEMENTS 



1. Identification: 

The Co-operative is incorporated under the laws of Jamaica and is registered under the Co-operative Societies Act. 

Membership is limited to employees, ex-employees, pensioners of the Jamaica Public Service Company Limited, the 

Rural Electrification Programme, the Jamaica Private Power Company, the Jamaica Energy Partners, Digicel (Jamaica) 

Limited, UC Rusal Limited and Collector General, the staff of the Credit Union, spouse, children , parents, brothers, 

sisters, aunts and uncles, nieces and nephews of members and spouses of children. 

The Credit Union's registered office is located at 65 ¾ Half-Way-Tree Road, Kingston , Jamaica and has branches in 

Ewarton-St Catherine, Kirkvine Manchester and Ocean Boulevard-Kingston. 

The Co-operative's main activities are:- 

(a) the promotion of thrift; 

(b) the provision of loans to members exclusively for provident and productive purposes; and 

(c) to receive the savings of its members either as payment on shares or as deposits. 

The Co-operative is exempt from Income Tax under Section 59 (1) of the Co-operative Societies Act and Section 12 of 

the Income Tax Act. 

Membership in the Credit Union is obtained by the holding of members' shares, which should be at least one thousand 

(1,000) voluntary shares and one thousand (1,000) permanent shares. These shares are issued at par value of $1 each. 

Voluntary shares are deposits available for withdrawal on demand, while permanent shares are paid in cash and 

invested in risk capital. Individual membership may not exceed 20% of the total of the members' shares of the Credit 

Union. 

Monies paid for Permanent Shares may not be withdrawn in whole or in part and may not be pledged to secure credit 

facilities with the Credit Union. 

An individual ceasing to be a member of the Credit Union, shall be entitled to a redemption of any amount held as 

Permanent Shares. Permanent Shares are redeemable only upon transfer to another member. To facilitate this, the 

Credit Union has established a Redemption Reserve Account. 

2. Adoption of Standards, Interpretations and Amendments: 

(a) Standards and Interpretations in respect of published standards that are in effect: 

The International Accounting Standards Board (IASB) issued certain new standards and interpretations as well as 

amendments to existing standards, which became effective during the year under review. Management has assessed 

the relevance of these new standards, interpretations and amendments and has adopted and applied in these financial 

statements, those standards which are considered relevant to the Credit Union were:- 





2. Adoption of Standards, Interpretations and Amendments (cont'd) : 

(a) Standards and interpretations in respect of published standards which are in effect (cont'd): 

IFRS 9: Financial Instruments (2014) (Effective January 2018) 

A finalised version of IFRS 9 which contains accounting requirements for financial instruments, replacing IAS 

39 Financial Instruments: Recognition and Measurement. The standard contains requirements in the following areas: 

Classification and measurement : Financial assets are classified by reference to the business model within which 

they are held and their contractual cash flow characteristics. The 2014 version of IFRS 9 introduces a 'fair value 

through other comprehensive income' category for certain debt instruments. Hence, financial assets are to be 

classified into three measurement categories: those measured at amortised cost, those to be measured 

subsequently at fair value through other profit and loss (FVPL) and those to be measured subsequently at fair value 

through other comprehensive income (FVOCI). Financial liabilities are classified in a similar manner to under IAS 39, 

however there are differences in the requirements applying to the measurement of an entity's own credit risk. 

Impairment: The 2014 version of IFRS 9 introduces an 'expected credit loss' model for the measurement of the 

impairment of financial assets, so it is no longer necessary for a credit event to have occurred before a credit loss is 

recognised. 

Hedge accounting : Introduces a new hedge accounting model that is designed to be more closely aligned with how 

entities undertake risk management activities when hedging financial and non-financial risk exposures 

Derecognition: The requirements for the derecognition of financial assets and liabilities are carried forward from IAS 

39. 

IFRS 15: Revenue from Contracts with Customers (IAS 18 will be superseded by IFRS 15 Revenue from 

Contracts with Customers.) (Effective January 1, 2018) 

IFRS 15 provides a single, principles based five-step model to be applied to all contracts with customers. 

The five steps in the model are as follows: 

- Identify the contract with the customer 

- Identify the performance obligations in the contract 

- Determine the transaction price 

- Allocate the transaction price to the performance obligations in the contracts 

- Recognise revenue when (or as) the entity satisfies a performance obligation. 

Guidance is provided on topics such as the point in which revenue is recognised, accounting for variable 

consideration, costs of fulfilling and obtaining a contract and various related matters. New disclosures about revenue 

are also introduced. 

Clarifications to IFRS 15 : Revenue from Contracts with Customers (Effective January 2018) 

Amends IFRS 15 Revenue from Contracts with Customers to clarify three aspects of the standard (identifying 

performance obligations, principal versus agent considerations, and licensing) and to provide some transition relief 

for modified contracts and completed contracts. 





2. Adoption of Standards, Interpretations and Amendments (Cont'd): 

(a) Standards and interpretations in respect of published standards which are in effect (cont'd): 

Amendments to IAS 40 - Investment Property Transfers of Investment Property (Effective January 2018) 

The amendments to IAS 40 Investment Property: 

- 

- 

Amends paragraph 57 to state that an entity shall transfer a property to, or from, investment property when, and 

only when, there is evidence of a change in use. A change of use occurs if property meets, or ceases to meet, the 

definition of investment property. A change in management‟s intentions for the use of a property by itself does not 

constitute evidence of a change in use. 

The list of examples of evidence in paragraph 57(a) – (d) is now presented as a non-exhaustive list of examples 

instead of the previous exhaustive list. 

IFRIC 22 - Foreign Currency Transactions and Advance Consideration (Effective January 2018) 

The interpretation addresses foreign currency transactions or parts of transactions where: 

- 

- 

- 

there is consideration that is denominated or priced in a foreign currency; 

the entity recognises a prepayment asset or a deferred income liability in respect of that consideration, in advance 

of the recognition of the related asset, expense or income; and 

the prepayment asset or deferred income liability is non-monetary. 

The Interpretations Committee came to the following conclusion: 

- The date of the transaction, for the purpose of determining the exchange rate, is the date of initial recognition of 

the non-monetary prepayment asset or deferred income liability. 

- If there are multiple payments or receipts in advance, a date of transaction is established for each payment or 

receipt. 

These affected the financial statements for accounting periods beginning on or after the first day of the months 

stated. The adoption of these Standards and amendments had no material impact on the Credit Union's financial 

statements. 

(b) Standards and interpretations in respect of published standards that are not in effect: 

Certain new, revised and amended standards and interpretations have been issued which are not yet effective for the 

current year and which the Credit Union has not early-adopted. The Credit Union has assessed the relevance of all 

the new standards, amendments and interpretations with respect to the credit union's operations and has determined 

that the following are likely to have an effect on the Credit Union's financial statements: 

IFRS 16 - Leases (Effective January 2019) 

IFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides 

asinglelesseeaccountingmodel,requiringlesseestorecogniseassetsandliabilitiesforallleasesunlessthelease 

term is 12 months or less or the underlying asset has a low value. Lessors continue to classify leases as operating or 

finance, with IFRS 16‟s approach to lessor accounting substantially unchanged from its predecessor, IAS 17. 





2. Adoption of Standards, Interpretations and Amendments (Cont'd): 

(b) Standards and interpretations in respect of published standards that are in effect (cont'd): 

Prepayment Features with Negative Compensation (Amendments to IFRS 9) (Effective January 2019) 

Amends the existing requirements in IFRS 9 regarding termination rights in order to allow measurement at amortised 

cost (or, depending on the business model, at fair value through other comprehensive income) even in the case of 

negative compensation payments. 

Annual Improvements to IFRS Standards 2015–2017 Cycle contains amendments to certain standards and 

interpretations and are effective for accounting periods beginning on or after January 2019 

Makes amendments to the following standards: 

• IFRS 3: Business Combinations and IFRS 11: Joint Arrangements (Effective January 2019) 

The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, it 

remeasures previously held interests in that business. The amendments to IFRS 11 clarify that when an entity 

obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests 

in that business. 

• IAS 23: Borrowing Costs (Effective January 2019) 

The amendments clarify that if any specific borrowing remains outstanding after the related asset is ready for its 

intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating 

the capitalisation rate on general borrowings. 

Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) (Effective January 2019) 

The amendments in Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) are: 

• If a plan amendment, curtailment or settlement occurs, it is now mandatory that the current service cost and the 

net interest for the period after the remeasurement are determined using the assumptions used for the 

remeasurement. 

• In addition, amendments have been included to clarify the effect of a plan amendment, curtailment or settlement 

on the requirements regarding the asset ceiling. 

Definition of Material (Amendments to IAS 1 and IAS 8) (Effect January 2020) 

The amendments in Definition of Material (Amendments to IAS 1 and IAS 8) clarify the definition of „material‟ and 

align the definition used in the Conceptual Framework and the standards. 

These affect financial statements for accounting periods beginning on or after the first day of the month stated. The 

Credit Union is assessing the impact these amendments will have on its financial statements. 





3. Statement of Compliance, Basis of Preparation and Significant Accounting Policies: 

(a) Statement of Compliance and Basis of Preparation - 

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) 

and their interpretations adopted by the International Accounting Standards Board (IASB), and comply with the 

requirements of the Co-operative Societies Act. They have been prepared under the historical cost convention. 

These financial statements are expressed in Jamaican Dollars which is the functional currency of the Credit Union. 

(b) Use of Estimates and Judgements - 

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) 

requires directors and management to make estimates and assumptions that affect the amounts reported in the 

financial statements and accompanying notes. These estimates are based on historical experience and directors 

and management's best knowledge of current events and actions and are reviewed on an ongoing basis. Actual 

results could differ from those estimates. 

Critical Accounting Esitmate and judgement applied 

i) Classification of Financial Asset 

The assessment of the business model within which the assets are held and assessment of whether the 

contractuals terms of the financial assets are soley payments of principal and interest on the principal payment 

amount outstanding requires management to make certain judgments on its business operations 

ii) Impairment of Financial Assets 

Establishing the criteria of determining whether credit risk of the financial assets has increase significantly since 

initial recognition , determining the methodology for incorporating forward-looking information into the 

measurement of expected credit losses (ECL) and selection and approval of models used to measure ECL 

requires significant judgement. 

Risk of Estimation uncertainty 

i) Measurement of Expected Credit allowance/provision under IFRS 9 

The measurement of expected credit allowance for financial assets measured at amortized cost and FVOCI is an 

area that requires the use of complex models and significant assumptions about future economic conditions and 

credit behaviour (e.g. That is the likelyhood of members defaulting and the resulting loss). 

A number of significant judgements are also required in applying the accounting requirement for measuring 

expected credit losses, as follow; 

- Determining criteria for significant increase in credit risk; 

- Selecting appropriate models and assumptions for the measurement of expected credit losses; 

- Establishing of the number and re;ative weightings of forward-looking scenarios for each type pf product or 

market and associated expected credit loss; 

- Establishging groups of similar financial assets for the purpose of measuring expected credit losses. 





3. Statement of Compliance, Basis of Preparation and Significant Accounting Policies (cont'd): 

(c) Loans to Members and provisions for Loan Impairment - 

Loans are recognized when cash is advanced to borrowers. 

The Credit Union, under the IFRS 9 Expected Credit Loss (ECL) impairment framework, recognises ECLs on loans, 

taking into account past events, current conditions and forecast information. In this regard, the Credit Union 

determines the economic variables that are likely to influence the borrowers‟ ability to meet their loan obligations in 

the future and incorporate such forward looking economic information in the overall estimation of the expected credit 

loss. 

Additionally, the credit union is required to update the amount of ECLs recognised at each reporting date to reflect 

changes in credit risk of the loan portfolio. 

Loans to members are held solely for the collection of principal and interest in accordance with the contractual 

arrangement between the credit union and the borrower. Therefore, loans are classified under the hold to collect 

business model and are measured at amortized cost. 

The credit union assigns an initial risk rating to each loan at the date of disbursement. The risk rating is determined 

by the credit score assigned and categorised in the recognised credit score bands. 

Loan Staging 

By way of disclosure, the credit union estimates and reports the ECL on a stage by stage basis. 

Stage 1 

Loans are placed in Stage 1 at origination and remains in this stage providing that such loans have not experience a 

significant increase in credit risk. 

Stage 2 

Loans are transitioned to Stage 2 when there is evidence that such loans have experienced a significant increase in 

credit risk. 

Stage 3 

Loans are transitioned into Stage 3 if there is evidence that these loans are impaired or are at a default stage. Loans 

that are past due for a period of 90 days or more are deemed to have defaulted. 

Specific provisions are established as a result of a review of the carrying value of loans in arrears and are derived 

based on the Supervisory Body's provisioning policy of making a full provision for loans in arrears over twelve (12) 

months. General provisions of ten percent (10%) to sixty percent (60%) are established in respect of loans in 

arrears for two (2) to twelve (12) months. 

Regulatory loan loss reserve requirements that exceed the provision required under International Financial Reporting 

Standards - IFRS 9 "Financial Instruments" are dealt with in a non-distributable loan loss reserve as a transfer from 

unappropriated profits. 

(d) Liquid Assets 

For the purposes of the statement of cash flows, liquid assets include cash and cash equivalents which consist of 

cash on hand and current accounts held at banks and deposits held under 6 months with banks and other financial 

institutions. 






(e) Financial Investments- 

At initial recognition, the Credit Union measures a financial asset at its fair value, plus or minus (in the case of a 

financial asset not at fair value through profit or loss transaction costs that are incremental and directly attributable to 

the acquisition or issue of the financial asset; such as fees and commissions. Transaction costs of financial assets 

carried at fair value through profit or loss are expensed in profit or loss. 

Immediately after recognition, an expected credit loss allowance (ECL) is recognised for financial assets measured at 

amortised cost and investments in debt instruments measured at FVOCI, which results in an accounting loss being 

recognised in profit or loss when an asset is newly originated. 

From 1st January 2018, the Credit Union has applied IFRS 9 and classified its financial assets as either Fair value 

through profit or loss (FVTPL); Fair value through other comprehensive income (FVOCI) or Amortised cost. 

Classification and subsequent measurement of debt instruments depend on the credit union's business model for 

managing the asset; and the cash flow characteristics of the asset. 

Based on these factors, the credit union classifies its debt instruments into one of the following three measurement 

categories: 

● 

● 

Amortised cost: Assets that are held for the collection of contractual cash flows where those cash flows represent 

solely payments of principal and interest ('SPPI') and that are not designated at FVTPL, are measured at 

amortised cost. The carrying amount of these assets is adjusted by any expected credit loss allowance 

recognised and measured as described at (vi). Interest income from these financial assets is included in ' Interest 

and similar income' using the effective interest method. 

Fair value through other comprehensive income (FVOCI): Financial assets that are held for collection of contractual 

cash flows and for selling the assets, where the assets' cash flows represent solely payments of principal and 

interest, and that are not designated at FVTPL are measured at fair value through other comprehensive income 

(FVOCI). 

● Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at 

fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value 

through profit or loss and is not part of a hedging relationship is recognised in profit or loss and presented in the 

profit or loss statement within. 'Net trading income' in the period in which it arises, unless it arises from debt 

instrumrnts that were designated at fair value or which are not held for trading, in which case they are presented 

separately in 'Net investment income'. Interest income from these financial assets is included in 'Interest income' 

using the effective interest method. 

Business Model: the business model reflects how the credit union manages the assets in order to generate cash 

flows. That is, whether the credit union's objective is solely to collect the contractual cash flows from the assets or is 

to collect both the contractual cash flows and cash flows arising from the sale of assets. If neither of these is 

applicable (e.g. financial assets are held for trading purposes), then the financial assets are classified as part of 

'other' business model and measured at FVTPL. 

(f) Investment Property - 

Investment Property is held for long-term rental yields and is not occupied by the Credit Union. Investment property is 

treated as a long-term investment and is carried at cost less accumulated depreciation and less any impairment 

losses. The fair value of this property is included in a note to the Financial Statements. 






(g) Retirement Benefit - 

The Credit Union participates in a multi-employer defined benefit pension scheme. The pension scheme is generally 

funded by payments from employees and the Credit Union, taking into account the recommendation of independent 

qualified actuaries. A defined benefit plan is a pension plan that defines an amount of pension benefit to be provided, 

usually as a function of one or more factors such as age, years of service or compensation. 

The asset or liability in respect of defined benefit pension plans is the difference between the present value of the 

defined benefit obligation at the reporting date and the fair value of plan assets, together with adjustments for 

actuarial gains/losses and past service costs. The defined benefit obligation is calculated annually by independent 

actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by 

the estimated future cash outflows using interest rates of Government securities which have terms to maturity 

approximating the terms of the related liability. 

Remeasurement of the net defined benefit asset is recognised directly in equity. The remeasurement 

includes: 

- Actuarial gains and losses 

- Return on plan assets (interest included) 

- Any asset ceiling effects (interest included) 

Service costs are recognised in the profit or loss, and include current and past service costs as well as gains or 

losses on curtailment. 

Net interest expense/(income) is recognised in profit or loss, and is calculated by applying the discount rate used to 

measure the defined benefit obligation (asset) at the beginning at the annual period to the balance of the net defined 

benefit obligation (asset), considering the effects of contributions and benefit payments during the year. Gains or 

losses arising from the changes to the plan benefits or plan curtailment are recognised immediately in the profit or 

loss account. 

Settlement of the defined benefit plan is recognised in the year in which the settlement occur. 

(h) Leave Accrual 

The Credit Union's vacation leave policy allows a maximum of ten (10) days unused vacation leave to be carried 

forward for managerial and non-managerial staff. The charge for all outstanding leave is recognised in the statement 

of comprehensive income in the period to which it relates. 

(i) 

Other Assets 

Receivables are carried at original amounts less provisions for bad debt and impairment losses. A provision for bad 

debt is established when there is objective evidence that the Credit Union will not be able to collect all amounts due 

according to the original terms of the receivables. The amount of any provision is the difference between the carrying 

amount and the expected recoverable amount. 






(j) 

Property, Plant and Equipment 

Property, plant and equipment are periodically reviewed for impairment. Where the carrying amount of an asset is 

greater than its estimated recoverable amount, it is written down immediately to its recoverable amount. Land and 

Buildings are shown at deemed cost less subsequent depreciation for building. Under IFRS 1, a first-time adopter 

may elect to use a previous GAAP revaluation of an item of property, plant and equipment as its deemed cost. 

The Credit Union has elected to apply this provision. All other property, plant and equipment are stated at historical 

cost less accumulated depreciation and impairment if any. 

Computer & Other Equipment 33.33% 

Computer Software 20% 

Furniture & Fixtures 10% 

ATM 12.5% 

Garden Tools 33.33% 

Investment Property & Other Buildings 2.5% 

Software 33% 

Equipment 20% 

Land is not depreciated. 

Gains or losses on disposal of Property, Plant and equipment are determined by their carrying amount and are taken 

into account in determining operating profit. 

(k) Impairment - 

The Credit Union recognises loss allowances for expected credit losses (ECL) on financial assets that are debt 

instruments that are not measured at Fair Value Through Profit & Loss (FVTPL). 

Loss allowances are measured at an amount equal to lifetime ECL except for the following are measured as a 12- 

month ECL: 

- debt investment securities that are low in risk 

- other financial instruments (other than lease receivables) on which credit risk not not increased significantly. 

12-month ECL are the portion of ECL that result from default events of a financial instrument that are possible within 

the 12 months after the reporting date. Financial instruments for which a 12-month ECL is recognised is referred to 

as Stage 1 financial instrument. 

Lifetime ECL are the ECL that result from all possible default events over the expected life of the financial instrument. 

Financial Instruments for which lifetime ECL is recognised and is not credit-impared is referred to Stage 2 financial 

instruments. 

At each repoirting date, the credit union assesses whether the financial assets carried at amortised cost are creditimpaired 

(referred to a Stage 3 financial assets) 






(l) 

Provisions 

General 

Provisions are recognized when the Credit Union has a present legal or constructive obligation as a result of past 

events, if it is probable that an outflow of resources embodying economic benefits will be required to settle the 

obligation, and a reliable estimate of the amount of the obligation can be made. 

Employee entitlements to annual leave are recognized when they accrue to employees. A provision is made for the 

estimated liability for annual leave as a result of services rendered by employees up to the date of the statement of 

financial position. 

IFRS 9- Expected Credit Loss (ECL) 

IFRS 9 sets out requirements for recognizing and measuring financial assets, financial liabilities and some contracts to 

buy or sell non-financial items. This standard replaces IAS 39 "Financial Instruments: Recognition and measurement". 

IFRS 9 bring fundamental changes to the accounting of financial assets and to certain aspects of the accounting for 

financial liabilities. 

As a result of the adoption of IFRS 9, the Credit Union has adopt consequential amendments to IFRS 7 "Financial 

Instruments Disclosure", which are applied to disclosures about they financial year 2018, but have not been applied to 

the comparative information 

The Expected Credit Loss (ECL) represents the amount the Credit Union is likely to lose in the event of a default. 

In recognising Expected Credit Loss (ECL) as prescribed by IFRS 9, the Credit Union took into account past events, 

current conditions and forecast information. The Credit Union determined the economic variables that are likely to 

influence the borrowers ability to meet their loan oligation in the future and incorporate such forward looking economic 

information in the overall estimation of the expected credit loss. 

At each reporting date, the Credit Union is required to update the amount of ECLs recognised to reflect changes in 

credit risk of the loan portfolio. 

At least once annually, the credit union re-assesses the risk ratings bands and carries out the necessary adjustments 

in order to ensure that the ratings bands are consistent with prevailing trends and conditions. 

As permitted by transitional provisions of IFRS 9, any adjustments to the carrying amount of financial assets and 

liabilities at the date of transition were recognized in the opening retained earning and other reserves of the current 

p 

The impact of transition of IFRS9 on the opening retained earnings and investment revaluation reserve is as follow; 

Retained Earnings: 

$ 

Balance as at December 31, 2017 43,519,885 

Impairment provison as at December 31, 2017 under IAS 39: 

On Loans to Members 16,485,486 

On Financial Investments - 

16,485,486 

Expected Credit Loss as at Janaury 1, 2018 under IFRS 9 - 

On Loans to Members (46,504,937) 

On Financial Investments (6,700,000) 

(53,204,937) 

Recognition of expected credit loss written against Reserve accounts 

(36,719,451) 

Recognition of expected credit loss written against Retained Earnings 

- 

Opening balance under IFRS 9 (Jan. 1. 2018) 43,519,885 






(m) Members' Shares 

Permanent Shares 

Permanent Shares may be transferred by members to another member but are not available for withdrawal. 

Permanent shares are classified as equity. 

Voluntary Shares 

Members voluntary shares represent deposit holdings of the Credit Union's members, to satisfy membership 

requirements and to facilitate eligibility for loans and other benefits. These shares are classified as financial 

liabilities. Returns to members on these shares are determined at the discretion of the Credit Union, are denoted as 

interest and are reported as expense in the income statement in the period in which approved. 

(n) Foreign Currency Transactions - 

Functional and presentation currency 

Items included in the financial statements are measured using the currency of the primary economic environment in 

which the Credit Union operates. The Credit Union's primary economic environment is Jamaica, and as such, its 

functional and presentation currency is Jamaican dollars. 

Transactions and balances 

Foreign currencies at the date of the statement of financial position are stated at the rates of exchange ruling on that 

date. Transactions in foreign currencies are converted at the rates of exchange ruling at the date of those 

transactions. Gains and losses arising from fluctuations in exchange rates are included in the statement of 

comprehensive income. 

(o) Statutory Reserve - 

The Co-operative Societies Act provides that at least twenty percent (20%) of the annual net income 

honoraria should be carried to a Statutory Reserve Fund. 

(p) League Fees and Stabilisation Dues - 

before 

Jamaica Co-operative Credit Union League Limited (JCCUL) has fixed the rate of league fees at 0.2% (2017 - 

0.25%) of total assets. Stabilisation dues are fixed at a rate of 0.15% (2017 - 0.15%) of total savings. 

The Credit Union is required by the JCCUL to maintain its institutional capital at a minimum of eight percent (8%) of 

total assets. At the date of the statement of financial position, the ratio of institutional and permanent share capital to 

total assets was 18.16% (2017: 17.78%) which is in compliance with the requirements. 

(q) Interest Income and Expense 

Interest income and expense are recognised in the statement of comprehensive income for all interest-bearing 

instruments on an accrual basis, using the effective yield method, based on the actual purchase price. Interest 

income includes coupons earned on fixed income investments and accrued discounts or premiums on discounted 

instruments. 

Where collection of interest is considered doubtful, the related financial instruments are written down to their 

recoverable amounts and interest income is therefore recognised based on the rate of interest that was used to 

discount the future cash flows for the purpose of measuring the recoverable amount. 

(r) Fees and Commission Income 

Fees and commission income are recognised on an accrual basis. 






(s) Risk Management: 

The Board of Directors has overall responsibility for the implementation and monitoring of the Credit Union's 

management of risk. Its policies have been devised to identify and analyse the risks faced by the Credit Union. The 

Board, through its executive officers and various committees, is responsible for monitoring compliance with those 

policies and for reviewing their adequacy. All committees report periodically to the Board. 

(t) Capital Management - 

The Credit Union‟s objectives when managing capital are to safeguard it‟s ability to continue as a going concern, to 

provide returns to its members, to provide benefits for other stakeholders, and to maintain a strong capital base in 

order to support the development of its business. The Credit Union defines its capital as institutional capital and other 

eligible reserves. Its dividend payout is made taking into account maintenance of an adequate capital base. At least 

twenty percent (20%) of net income before honoraria must be transferred to institutional capital at the end of each 

year prior to any appropriation of surplus. 

The Credit Union is required by the Jamaica Co-operative Credit Union League to maintain its institutional capital at a 

minimum of eight percent (8%) of total assets. At the date of the statement of financial position, the ratio of 

institutional and permanent share capital to total assets was 18.08% (2017: 17.78%) which is in compliance with the 

requirements. 

There were no changes in the Credit Union‟s approach to capital management during the year. 

(u) Basis of Consolidation 

The Credit Union uses the acquisition method of accounting to account for business combinations. The 

consideration transferred on the merger of entities is the fair values of the assets transferred, the liabilities incurred 

and the equity interests issued by the credit union. The consideration transferred includes the fair value of any asset 

or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as 

incurred. Identifiable assets and liabilities acquired; and contingent liabilities assumed in a business combination are 

measured initially at their fair values at the acquisition date. 

In business combinations involving more than two parties, one of the previously existing entities is normally deemed 

to be the acquirer uses the principles outlined in IFRS 3 - Business Combinations ,toaccountforthenetassetsof 

the deemed acquired. 

4. Financial Instruments & Financial Instrument Risk Management: 

Afinancialinstrumentisacontractthatgivesrisetobothafinancialassetofoneenterpriseandafinancialliabilityor 

equity instrument of another enterprise. For the purpose of the financial statements, financial assets have been 

determined to include investments, cash and cash equivalents and receivables. Financial liabilities have been 

determined to be member's voluntary share capital, savings deposits, external credit, payables and accruals and 

accrued interest on member's voluntary share capital . 

The Credit Union has exposure to credit risk, liquidity risk and market risk from its use of financial instruments. 

The Board of Directors has overall responsibility for the implementation and monitoring of the Credit Union's 

management of risk. Its policies have been devised to identify and analyse the risks faced by the Credit Union. The 

Board through its executive officers and the various committees is responsible for monitoring compliance with these 

policies and for reviewing their adequacy. All committees report periodically to the Board. 





4. Financial Instruments & Financial Instruments Risk Management (cont'd): 

The Supervisory Committee is responsible for monitoring compliance with the Credit Union‟s risk management policies 

and procedures and for reviewing the adequacy of the risk management framework in relation to the risks faced by the 

Credit Union. The Supervisory Committee is assisted in these functions by the Internal Audit function which undertakes 

periodic reviews of risk management controls and procedures, the results of which are reported to the Supervisory 

Committee. 

(a) Credit Risk 

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other 

party to incur a financial loss. This risk arises primarily from the Credit Union's loans to members, deposits with other 

institutions and investment securities. There is also credit risk exposure in respect of financial instruments not 

reflected in the statement of financial position, such as loan commitments and guarantees. These expose the Credit 

Union to similar risks as loans and are managed in the same manner. 

The significant concentrations of risk and the Credit Union's management of these risks are as follows: 

i) Loans to Members & Guarantees 

The Board of Directors is responsible for formulating the credit policies, establishing the authorisation structure for 

the approval of credit facilities, limiting concentration of exposure to counterparties and developing and 

maintaining the Credit Union's risk ratings. The management of credit risk in respect of loans to members and 

guarantees is delegated to the Finance and Planning Committee. The Finance and Planning Committee has 

oversight responsibility for the Credit Union's credit risk management process, including reviewing and assessing 

credit risk. There is a documented credit policy in place which guides the Credit Union's credit review process. 

The Finance and Planning and Credit Committees report to the Board on a monthly basis. 

Credit Review Process 

There is a documented credit policy in place to guide the credit review process. It establishes loan policy and loan 

interest rates that manage risk and provide the best possible rate based on market conditions and ensures that 

credit facilities are extended to members with good credit worthiness at the time of the loan, protects 

savers interest by managing risk; provides competitive interest rates and prompt service to borrowers; and 

complies with all applicable laws and regulations. 

Collateral 

The Credit Union holds collateral against loans to members in the form of mortgage interests over property, lien 

over motor vehicles, other registered securities over assets, hypothecation of shares held in the Credit Union 

and guarantees. Estimates of fair values are based on the values of collateral assessed at the time of borrowing 

and are generally updated on a quarterly basis when loans are individually assessed. 






(a) Credit Risk (cont'd) 

Repossessed Collateral 

The Credit Union obtained assets by taking possession of collateral held as security, as follows: 

Carrying Amount 


$ $ 

Real Estate 12,300,000 45,600,000 

Motor Vehicles 3,050,000 450,000 

15,350,000 46,050,000 

Repossessed properties are sold as soon as practicable with the proceeds used to reduce the outstanding 

indebtedness. In general, the Credit Union does not utilise the properties for business use. 

Impaired Loans 

Impaired loans are loans for which the Credit Union determines that it is probable that it will be unable to collect all 

principal and interest due according to the contractual terms of the loan. 

Past Due but not Impaired Loans 

These are loans where contractual interest or principal payments are past due but the Credit Union believes that 

impairment is not appropriate on the basis of the level of security available or the stage of collection of amounts 

owed to the Credit Union. 

Loans with Re-Negotiated Terms 

Loans with renegotiated terms are loans that have been restructured due to deterioration in the member's 

financial position and where the Credit Union has made concessions that it would not otherwise consider. Once 

the loan is restructured, it remains in this category until it is fully repaid. 

Allowances for Impairment 

Prior to January 1, 2018, the Credit Union inline with IAS 39 established an allowance for impairment losses that 

represents its estimate of incurred losses in its loan portfolio. The main components of this allowance are a 

specific loss component that relates to individually significant exposures, and a collective loan loss allowance 

established on a Credit Union basis in respect of losses that have been incurred but have not been identified on 

loans subject to individual assessment for impairment. Additional regulatory allowance is made based on the 

aging of the delinquency portfolio. This additional allowance is treated as an appropriation and taken to reserves. 

Effective January 1, 2018, the Credit Union under IFRS 9 established an impairment framework that estimates 

excepted credit losses in its loan portfolio. The Credit Union have a documented IFRS 9 policy in place to guide 

the recognition and derecognition process. Management is responsible for the reassessment of credit risk of all 

loans to members annually or earlier if the needs arises and determine whether there is a significant increase in 

the credit risk from the loan origination date to the date reporting date. 







i) Loans to Members & Guarantees (cont'd) 

Allowances for Impairment (cont'd) 

Management remedies fluctuations in the ECL through the Statement of Profit and Loss and the ECL Reserve 

account on a monthly basis. 

Write-Off Policy 

The Credit Union writes off loans and any related allowances for impairment losses when it is determined that the 

loans are uncollectible. This determination is usually made after considering information such as changes in 

the borrower's financial position, or that proceeds from collateral will not be sufficient to pay back the entire 

exposure. Additionally, loans are written off once they are delinquent for 365 days or more based on regulatory 

requirements. 

ii) Deposits and Investments 

The Credit Union limits its exposure to credit risk by investing mainly in liquid assets. These investments are held 

only with counterparties that have high credit quality and Government of Jamaica securities. The management 

therefore does not expect any counterparty to fail to meet its obligations. 

iii) Exposure to Credit Risk 

The carrying amount of financial assets represents the maximum exposure to credit risks before collaterals held. 

At the date of the statement of financial position, these amounts were: 


$ $ 

Current Earning Liquid Assets 

945,902,522 880,077,909 

Loans to Members after Provision for Impairment 2,651,747,116 2,655,578,278 

Held-to-Maturity Investments 

434,768,226 347,310,756 

Current Non-Earning Liquid Assets 

30,954,679 149,561,056 

Other Current Non-Earning Assets 

29,013,684 40,699,889 

4,092,386,227 4,073,227,888 

Maximum Exposure for under IFRS 9 

1) Loans 

As per Expected Credit Loss 

(ECL) Report 

Loans to Members before 

allowance for expected credit loss 

As per General ledger 

Loans to Members before 

allowance for expected credit loss 

Difference 

Stage 1 Stage 2 Stage 3 Total 

2,461,994,684 200,965,134 33,824,015 2,696,783,833 

2,696,783,833 

- 







iii) Exposure to Credit Risk (cont'd) 

Concentration of Risk 

The following table summarises the Credit Union's credit exposure for loans at their carrying amounts by industry 

sector: 


$ $ 

Transportation 1,008,562,373 941,545,428 

Agriculture 9,517,880 16,145,771 

Construction & Real Estate 713,612,130 722,506,368 

Education 85,191,816 49,179,137 

Debt Finance 26,924,556 82,361,215 

Personal 351,719,948 359,972,342 

Other 501,255,130 484,769,429 

2,696,783,833 2,656,479,690 

There were no changes in the Credit Union‟s approach to credit risk during the year. 

b) Liquidity risk 

Liquidity risk is the risk that an enterprise will encounter difficulty in raising funds to meet commitments associated 

with financial instruments. The Credit Union is exposed to daily calls on its available cash resources from loan 

draw-downs, withdrawal of savings, overnight and maturing deposits. The approach to managing liquidity is to 

ensure, as far as possible, that there is always sufficient cash and marketable securities to meet obligations when 

due, under normal and also under stressed conditions. The Board of Directors has delegated responsibility for the 

management of liquidity risk to the Finance and Planning Committee. On a monthly basis, the committee reviews the 

ratios and gap reports in order to assess and manage liquidity risk and to ensure compliance with internal 

policies and regulatory guidelines. The Credit Union manages its liquidity levels on a daily basis by the monitoring 

of future cash flows and maintenance of an adequate amount of committed facilities. 





4. Financial Instruments and Financial Instruments Risk Management cont'd: 

(b) Liquidity Risk (Cont'd) : 

ASSETS: 

Within 1 1 to 3 3 to 12 1 to 5 Over 5 No Specific 

Month Months Months Years Years Maturity Total 

$ $ $ $ $ $ $ 

EARNING ASSETS: 

Liquid Assets 369,425,994 57,519,415 440,368,903 78,588,210 - - 945,902,522 

Loans to Members 343,728,436 84,389,714 19,395,685 1,490,621,151 713,612,130 - 2,651,747,116 

Financial Investments - - 93,123,745 246,000,000 33,372,147 62,272,334 434,768,226 

Investment property - - - - - 13,973,347 13,973,347 

Total Earning Assets 713,154,430 141,909,129 552,888,333 1,815,209,361 746,984,277 76,245,681 4,046,391,211 

NON-EARNING ASSETS: 

Liquid Assets 30,954,679 - - - - - 30,954,679 

Other Assets: Receivables 13,473,420 6,387,255 9,153,009 - - - 29,013,684 

Property, Plant & Equipment - - - - - 81,693,082 81,693,082 

Retirement Benefit Asset - - - - - 50,792,000 50,792,000 

Total Non-Earning Assets 44,428,099 6,387,255 9,153,009 - - 132,485,082 192,453,445 

TOTAL ASSETS 757,582,529 148,296,384 562,041,342 1,815,209,361 746,984,277 208,730,763 4,238,844,656 






(b) Liquidity Risk (Cont'd): 



LIABILITIES: $ $ $ $ $ $ $ 

INTEREST BEARING 

LIABILITIES: 

Voluntary Share Capital 189,378,174 252,504,232 315,630,290 353,505,925 151,502,540 - 1,262,521,161 

Savings Deposits - 82,673,473 591,455,774 904,193,311 362,804,428 - 1,941,126,986 

NON-INTEREST BEARING 

LIABILITIES & CAPITAL: 

External Credits - - 13,120,062 - - - 13,120,062 

Payables 2,341,332 11,240,303 21,098,854 - - - 34,680,489 

Accruals - - 17,292,930 - - - 17,292,930 

Capital and Reserves - - - - - 970,103,028 970,103,028 

Total Liabilities & Capital 191,719,506 346,418,008 958,597,910 1,257,699,236 514,306,968 970,103,028 4,238,844,656 

Net Liquidity Gap 565,863,023 (198,121,624) (396,556,568) 557,510,125 232,677,309 (761,372,265.00) - 

Cumulative Liquidity Gap 565,863,023 367,741,399 (28,815,169) 528,694,956 761,372,265 - - 

 



$ $ $ $ $ $ $ 

Total Assets 612,309,790 541,546,213 464,943,108 1,663,199,469 651,421,946 202,488,432 4,135,908,958 


Net Liquidity Gap 573,196,191 364,783,617 (287,837,906) (277,590,870) 271,762,457 (732,032,753) (87,719,264) 

Cumulative Liquidity Gap 573,196,191 937,979,807 650,141,901 372,551,031 644,313,488 (87,719,264) - 






b) Liquidity risk cont'd - 

The key measures used by the Credit Union for managing liquidity risk is the GAP analysis and theratio 

of liquid assets to total savings deposits. For this purpose, liquid assets include cash and bank 

balances, deposits held with the Jamaica Co-operative Credit Union League (JCCUL) and highly liquid 

investments which have maturity up to nine months. 

The Credit Union is subject to a liquidity limit imposed by JCCUL and compliance is regularly monitored. 

This limit requires the Credit Union to maintain liquid assets amounting to at least 10% ofsavings and 

deposits. The liquid asset ratio at 31st December 2018 was 30.50% (2017 32.06%) which is in 

compliance with the standard. 

Items not carried on the statement of financial position 

At 31st December 2018, theCredit Union's commitment toextend credit to its members in respect of 

loans approved but not yet disbursed, amounted to $14,629,199 (2017: $15,562,266). 

There has been nochange totheCredit Union’s 

manages and measures this risk. 

exposure to liquidity risk or the manner inwhichit 

The previous table summarises the net liquidity gap and thecumulative liquidity gap oftheCredit Union 

by analysing its assets and liabilities into periodical maturity categories. Members Voluntary Shares and 

other Savings deposits have no contractual maturity. The amounts included in the analysis 

are based on management’s estimate of expected cash flows on these instruments as determined by 

retention history. These may vary significantly from actual cashflows which are generally expected to 

maintain a stable or increasing balance. 

c) Market Risk 

Market risk is the risk that thefair value or future cash flows of a financial instrument willfluctuate as a 

result of changes inmarketprices. These arise mainly from changes ininterest rates, foreign currency 

rates and equity prices and willaffect the Credit Union’s income or the value of its holdings offinancial 

instruments. The objective of market risk management istomonitor and control market risk exposures 

within acceptable parameters, while optimising the return on investments. Market risk exposures are 

measured using sensitivity analyses. 

There has been no change to the Credit Union’s exposure to market risks or the manner in which it 

manages and measures this risk. 

The foreign exchange rateshave steadily increased over the preceding eight months and the Credit 

Union's exposure to market risks has therefore fluctuated as a consequence. 

i) Foreign Currency Risk 

Currency risk is the risk that themarketvalue of, or the cash flows from financial instruments will vary 

because of exchange ratefluctuations. The Credit Union is exposed to foreign currency risk due 

to fluctuations in exchange ratesontransactions and balances that are denominated in currencies 

other than the Jamaica dollar. Balances in foreign currency represent a minimal portion of the 

entire investment portfolio (2.20%) and are monitored to ensure that they provide a net positive return. 

These funds are held for investment purposes only. It ensures that itsnet foreign currency exposure is 

kept toanacceptable level by buying or selling currencies at spot rateswhen necessary to address 

short-term imbalances. 






c) Market Risk (cont'd) 

i) Foreign Currency Risk (cont'd) 

The Credit Union's exposure to foreign currency risk as at 31st December 2018 was: 

Liquid Assets - Earning 


US$ US$ 

USD Global Bonds 185,650 185,650 

USD Repos 588,236 493,738 

773,886 679,388 

Sensitivity Analysis 

Exchange rates in terms of Jamaican Dollars which is the Credit Union's intervening currency, were as 

follows: 

US$ 

28th February 2019 127.61 

31st December 2018 125.89 

31st December 2017 123.61 

There was a significant foreign exchange rate movement in the United States dollar during the period 

December 2017 to December 2018. Over the twelve months ended 31st December 2018, the 

exchange rate movement for the United States dollar has shown an overall decrease of 1.85%. The 

Credit Union's assets held in these currencies are minimal in comparison to total assets and therefore 

consequential adjustments would not be considered significant. 

Afourpercent(4.00%)(2017:4.00%)movementintheUSDollarat31stDecember2018wouldhave 

increased/decreased surplus by the amounts shown below. The analysis assumes that all other 

variables, in particular, interest rates, remain constant. The analysis is performed on the same basis 

for 2018. 


$ $ 

Jamaican dollar 3,897,092 3,359,106 

ii) Interest Rate Risk 

Interest rate risk is the risk of loss from fluctuations in the future cash flows or fair values of financial 

instruments due to a change in market interest rates. It arises when there is a mismatch 

between interest-earning assets and interest-bearing liabilities which are subject to interest rate 

adjustments within a specified period. It can be reflected as a loss of future net interest income and/or 

alossofcurrentmarketvalues.Interestrateriskismanagedprincipallythroughmonitoringinterest 

rate gaps and by setting pre-approved gap ratios. The Finance and Planning Committee has oversight 

responsibility for the management and monitoring of interest rate risk and reports frequently to the 

Board of Directors on its strategies and position. 







The following table summarises the interest rate gap and the cumulative interest rate gap of the Credit Union analysing its assets and liabilities into periodical interest 

rate movements: 

ii) Interest Rate Risk (cont'd) 

Within 1 1 to 3 3 to 12 1 to 5 Over 5 Non-rate 

Month Months Months Years Years Sensitive Total 

$ $ $ $ $ $ $ 

ASSETS 

Earning Assets 

Liquid Assets 369,425,994 57,519,415 440,368,903 78,588,210 - - 945,902,522 

Loans to Members 343,728,436 84,389,714 19,395,685 1,490,621,151 713,612,130 - 2,651,747,116 

Financial Investments - 93,123,745 246,000,000 33,372,147 62,272,334 434,768,226 

Investment Property - - - - - 13,973,347 13,973,347 

713,154,430 141,909,129 552,888,333 1,815,209,361 746,984,277 76,245,681 4,046,391,211 

Non-Earning Assets 

Liquid Assets 

Cash in hand and at bank 30,954,679 - - - - - 30,954,679 

Other Assets 

Receivables 13,473,420 6,387,255 9,153,009 - - - 29,013,684 

44,428,099 6,387,255 9,153,009 - - - 59,968,363 

Property, Plant & Equipment - - - - - 81,693,082 81,693,082 

Retirement Benefit Asset - - - - - 50,792,000 50,792,000 

- - - - - 132,485,082 132,485,082 

TOTAL ASSETS 757,582,529 148,296,384 562,041,342 1,815,209,361 746,984,277 208,730,763 4,238,844,656 







ii) Interest rate risk (cont'd) 

LIABILITIES: 

Interest-Bearing Liabilities 


Month Months months years Years Sensitive Total 

$ $ $ $ $ $ $ 

Members' Voluntary Share 

Capital 189,378,174 252,504,232 315,630,290 353,505,925 151,502,540 - 1,262,521,161 

Savings Deposits - 82,673,473 591,455,774 904,193,311 362,804,428 - 1,941,126,986 

189,378,174 335,177,705 907,086,064 1,257,699,236 514,306,968 - 3,203,648,147 

Non Interest-Bearing Liabilities 

External credits - - 13,120,062 - - - 13,120,062 

Payables 2,341,332 11,240,303 21,098,854 - - - 34,680,489 

Accruals - - 17,292,930 - - - 17,292,930 

2,341,332 11,240,303 51,511,846 - - - 65,093,481 

Capital and Reserves - - - - - 965,275,214 965,275,214 

TOTAL LIABILITIES AND 

CAPITAL 191,719,506 346,418,008 958,597,910 1,257,699,236 514,306,968 965,275,214 4,234,016,842 

Net Interest Rate Gap 565,863,023 (198,121,624) (396,556,568) 557,510,125 232,677,309 (756,544,451) 4,827,814 

Cumulative Interest Rate 

565,863,023 367,741,399 (28,815,169) 528,694,956 761,372,265 4,827,814 9,655,628 

Gap 

 


Month Months Months Years Years Sensitive Total 

$ $ $ $ $ $ $ 

Total Assets 612,589,943 542,160,735 433,838,135 1,693,409,767 651,421,946 202,488,432 4,135,908,958 


Net Interest Rate Gap 579,900,547 353,006,890 (312,518,675) (247,380,572) 271,305,300 (732,032,753) - 

Cumulative Interest Rate Gap 579,900,547 932,907,437 620,388,762 373,008,190 644,313,489 (87,719,263) (87,719,263) 





4. 

Financial Instruments & Financial Instruments Risk Management (cont'd): 


ii) Interest rate risk (cont'd) 

At the date ofthestatement of financial position, the Interest Profile oftheCreditUnion's interest-bearing 

financial instruments was: 

Interest Rate 2018 Interest Rate 2017 

% $ % $ 

Financial Assets 

Liquid Assets 

Foreign Deposits 0.85 - 2.20 29,734,217 0.85 - 2.20 28,702,756 

Liquid Investments 2.00 - 5.75 916,168,305 2.00 - 5.75 851,375,153 

Loans to Members 2 - 30.00 2,651,747,116 1.992 - 30.00 2,655,578,278 

HTM Investments 2.50-11.00 434,768,226 2.50-11.00 347,310,756 

4,032,417,864 3,882,966,943 

Financial Liabilities 

Savings Deposits 1.00 - 5.60 1,941,126,986 1.00 - 5.00 1,964,165,917 

Voluntary Shares 0.50 1,262,521,161 3.50 1,247,133,471 

3,203,648,147 3,211,299,388 

828,769,717 671,667,555 

Sensitivity Analysis 

During the period January 2018 to December 2018, interest rates have moved downwards, with the BOJ 3- 

6months deposit rates moving by approximately 33 basis points from 4.9% to 4.57%. This trend is expected 

to continue as the Government of Jamaica (GOJ) continues its policies of lowering of interest rates. 

It should be noted that traditionally,CreditUnions do not respond as rapidly in their interest rates adjustment 

as other financial institutions and for certain securities the interest payment rates are fixed at the beginning 

of each year. 

Assuming interest rate movements as set out below, surplus and equity would be affected as follows: 

Interest Rate 2018 Interest Rate 2017 

% $ % 

$ 

Financial Assets 

Liquid Assets 

Foreign Deposits - - 0.00 - 

Liquid Investments 0.00 - 0.00 - 

Loans to Members -0.004 106,070 -0.004 106,223 

HTM Investments 0.00 - 0.00 - 

106,070 106,223 

Financial Liabilities 

Savings Deposits 1.05 20,381,833 1.05 20,623,742 

Voluntary Shares 0.25 (3,156,303) 0.25 (3,117,834) 

17,225,530 17,505,908 

(17,119,461) (17,399,685) 

(17,119,461) (17,399,685) 






(c) Market risk (cont'd) 

iii) Equity price risk 

Equity price risk arises from available-for-sale equity securities held by the Credit Union as part of its 

investment portfolio. The primary goal of the Credit Union's investment strategy is to maximize returns on 

investments and to have an appropriate asset mix. 

iv) Operational Risk 

Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the 

Credit Union's processes, personnel, technology and infrastructure, and from external factors other than 

financial risks such as those arising from legal and regulatory requirements and generally accepted standards 

of corporate behaviour. 

The Credit Union's objective is to manage operational risk so as to balance the avoidance of financial losses 

and damage to its reputation with overall cost effectiveness and to avoid control procedures that restrict 

initiative and creativity. 

The primary responsibility for the development and implementation of controls to identify operational risk is 

assigned to Senior Management. This responsibility is supported by overall Credit Union standards for the 

management of operational risk in the following areas: 

▪ 

▪ 

▪ 

▪ 

▪ 

▪ 

▪ 

▪ 

▪ 

Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and 

procedures to address the risks identified. 

Requirements for the appropriate segregation of duties, including the independent authorisation of 

transactions. 

Requirements for the reconciliation and monitoring of transactions. 

Compliance with regulatory and other legal requirements. 

Documentations of controls and procedures. 

Requirements for the reporting of operational losses and proposed remedial action. 

Development of contingency plans. 

Training and professional development. 

Ethical and business standards. 

▪ 

(d) Fair Value: 

Risk mitigation, including insurance where this is effective. 

Compliance with Credit Union policies is supported by a programme of periodic reviews undertaken by the 

Credit Union's Regulatory Body. The results of these are discussed with the Credit Union's Management and 

Board of Directors. 

Fair value amounts represent estimates of the arm‟s length consideration that would be currently agreed upon 

between knowledgeable, willing parties who are under no compulsion to act and is best evidenced by a quoted 

market price, if one exists. 






(d) Fair Value (cont'd): 

The following table provides an analysis of financial instruments held as at 31st December 2018 that, subsequent 

to initial recognition, are measured at fair value. The financial instruments are grouped into levels 1 to 3 based on 

the degree to which the fair value is observable, as follows: 

. 

. 

. 

Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for 

identical instruments; 

Level 2 fair value measurements are those derived from inputs other than quoted prices included within level 1 

that are observable for the instrument, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and 

Level 3 fair value measurements are those derived from valuation techniques that include inputs for the 

instrument that are not based on observable market data (unobservable inputs). 

There were no transfers between levels during the year. 

2018 

Level 1 Level 2 Level 3 Total 

$ $ $ $ 

Available-for-sale Financial 

Investments 

19,725,835 52,979,240 - 72,705,075 

2017 

Level 1 Level 2 Level 3 Total 

$ $ $ $ 

Available-for-sale Financial 

Investments 

3,324,968 33,656,289 - 36,981,257 

The fair value of financial instruments traded in active markets is based on quoted market prices at the date of the 

statement of financial position. A market is regarded as active if quoted prices are readily and regularly available 

from an exchange, dealer, broker, industry group, pricing service or regulatory agency, and those prices represent 

actual and regularly occurring market transactions on an arm's length basis. The quoted market price used for 

financial assets is the current bid price. These instruments are grouped in Level 1. 

The fair value of financial instruments not traded in an active market is determined by using valuation techniques. 

These valuation techniques maximise the use of observable market data where it is available and rely as little as 

possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the 

instrument is included in Level 2. 

If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 

3. 

Many of the Credit Union‟s financial instruments lack an available trading market. Therefore, these instruments 

have been valued using present value or other valuation techniques and may not necessarily be indicative of the 

amounts realisable in an immediate settlement of the instruments. 






(d) Fair Value (cont'd): 

The fair values of cash resources, other assets, other liabilities, are assumed to approximate their carrying values 

due to their short-term nature. 

The fair value of the quoted equities is determined based on their quoted bid price at the date of the statement of 

financial position. The fair value of other securities is estimated by discounting the future cash flows of the 

securities at the estimated yields at the date of the statement of financial position for similar securities. The 

estimated fair values of loans to members are assumed to be the principal receivable less any allowance for loan 

losses. 

The fair value of external credits, deposits payable on demand or after notice, and deposits with a variable or 

floating rate payable on a fixed date are assumed to be equal to their carrying values. The estimated fair values of 

fixed rate deposits payable within a year are assumed to approximate their carrying values, due to their short-term 

nature. 

The fair value of financial assets and liabilities, together with the carrying amounts shown in the statement of 

financial position, are as follows: 


Carrying Value Fair Value Carrying Value Fair Value 

$ $ $ $ 

Financial Assets: 

Earning 

Loans to Members 2,651,747,116 2,651,747,116 2,655,578,278 2,655,578,278 

Financial Investments 434,768,226 434,768,226 347,310,756 347,310,756 

Liquid Assets 945,902,522 945,902,522 880,077,909 880,077,909 

Investment Property 13,973,347 13,973,347 14,386,528 14,386,528 

Non-Earning 

Liquid Assets 30,954,679 30,954,679 149,561,056 149,561,056 

Receivables 29,013,684 29,013,684 40,699,889 40,699,889 

Financial Liabilities: 

Interest Bearing 

Savings Deposits 1,941,126,986 1,941,126,986 1,964,165,917 1,964,165,917 

Members' Voluntary Shares 1,262,521,161 1,262,521,161 1,247,133,471 1,247,133,471 

Non - Interest Bearing 

External Credit 13,120,062 13,120,062 14,144,768 14,144,768 

Payables 34,680,489 34,680,489 50,715,780 50,715,780 

Accruals 17,292,930 17,292,930 12,947,101 12,947,101 






(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 - 





5. Liquid Assets: 


$ $ 

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. 





6. Loans To Members: 2018 2017 

$ $ 

Balance at the Beginning of the year 2,655,578,278 2,445,359,308 

Loans Granted 1,736,904,612 1,806,772,099 

4,392,482,890 4,252,131,407 

Less Repayments and Transfers 1,695,699,057 1,580,067,643 

2,696,783,833 2,672,063,764 

2,696,783,833 2,672,063,764 

Less: Allowance for expected credit loss (IFRS 9) / 

Provision for Impairment (IAS 39) 

(45,036,717) (16,485,486) 

Balance at End of Year 2,651,747,116 2,655,578,278 

The profile of the loans to members are as follows: 


$ $ 

Loans to members which are not past due 2,659,646,330 2,610,519,769 

Loans to members which are past due 

1 month 8,310,187 23,413,663 

2-3 months 14,501,942 12,427,475 

4-5 months 4,838,698 6,232,328 

6-12 months 7,905,019 18,331,613 

Over 12 months 1,581,657 1,138,916 

2,696,783,833 2,672,063,764 

Less: Allowance for expected credit loss (IFRS 9) / 

Provision for Impairment (IAS 39) 

(45,036,717) (16,485,486) 

2,651,747,116 2,655,578,277 

The aggregate amount of non-performing loans on which interest was not being 

$14,325,374 (2017: $27,551,742). 

accrued amounted to 

Uncollected interest not accrued in these Financial Statements on non-performing loans was estimated at 

$2,201,260 (2017: $3,518,507). 

The fair value of collateral held as security against impaired loans was NIL (2017: $20,527,741). 

The fair value of collateral held as security against loans that are past due was $20,159,735 (2017: $71,002,400). 

The loans which have been renegotiated and were past due or impaired are NIL (2017: 2,314,531). 





7. Provision for Loan Impairment: 

The movement in the provision for loan impairment determined under the requirements of IFRS is as follows: 


$ $ 

Balance at the beginning of the year 

17,379,986 16,675,698 

Increase in Provision 37,842,682 4,761,725 

Recoveries 14,629,196 14,863,743 

Write-offs (24,075,147) (18,921,180) 

Balance at the end of the year 45,776,717 17,379,986 

Less Provision included for ATM fraud 

(740,000) (894,500) 

45,036,717 16,485,486 

Provision for loan losses determined under JCCUL Regulatory requirements is as follows: 

2017 

Number in Amounts in 

Loan Loss Loan Loss 

Arrears Arrears Rate Provision Provision 

# $ % $ $ 

1 month 

2 - 3 months 

3 - 6 months 

6 - 12 months 

Over 12 months 

27 8,310,187 - - - 

28 18,217,659 10 1,821,766 1,242,747 

17 4,838,698 30 1,451,609 1,869,698 

35 7,905,019 60 4,743,011 10,998,968 

2 1,581,657 100 1,581,657 1,138,916 

109 40,853,220 9,598,044 15,250,330 


$ $ 

Regulatory Loan Loss Provision 9,598,044 15,250,330 

Less Provision based on IFRS 9 (IAS 39) (45,036,717) (16,485,486) 

Excess of Regulatory Loan Loss Provision over IAS 39 Provision 

Transferred to Loan Loss Reserve 

- - 





8. Financial investments: 


$ $ 

Held-to-Maturity 

a) JCCUL Shares - Unquoted 13,106,842 13,106,842 

b) JCIA Shares - Unquoted 2,000,000 2,000,000 

c) JCCUL Mortgage Bond 49,985,762 48,089,568 

d) JCCUL Cu-Premium 41,137,983 39,736,101 

e) JNBS Mortgage Bond 10,000,000 10,000,000 

f) Government of Jamaica -Debenture 226,000,000 172,449,200 

g) Government of Jamaica - Global Bonds 23,372,147 22,947,788 

h) Pan Caribbean Variable Rate Bond 2,000,000 2,000,000 

367,602,734 310,329,499 

Available For Sale 

i) Unit Trust 17,369,291 16,552,340 

j) Shares - quoted 19,725,835 3,324,968 

k) Shares - unquoted 35,609,949 17,103,949 

72,705,075 36,981,257 

440,307,809 347,310,756 

Less: Allowance for expected credit losses under IFRS 9 (5,539,583) - 

434,768,226 347,310,756 

a) 

b) 

c) 

d) 

e) 

This represent unquoted shares held in the League. A minimum of one million (1,000,000) shares 

must be held with the League for the Credit Union to retain membership status. 

This represent a 1.67% ownership of unquoted shares held in Jamaica Co-operative Insurance Agency 

Limited (JCIA). 

This represent funds invested in the League's Mortgage Fund instruments. These 

investments are used to secure joint mortgage facilities, which are extended to the members of the 

C 

This represents an investment in the Jamaica Co-operative Credit Union League Limited Cu-Premium 

investment, maturing every three (3) years. 

Jamaica National Building Society Mortgage bond represent fund held with this institution to secure 

mortgage facilities, which are extended to the members of the Credit Union. 

k) This represents investment in Caribbean Cement Company, National Commercial Bank and JBG 





9. Investment Property: 

Land Building Total 

$ $ $ 

At Cost or Valuation: 

At 31st December 2016 3,000,000 16,527,239 19,527,239 

At 31st December 2017 3,000,000 16,527,239 19,527,239 

At 31st December 2018 3,000,000 16,527,239 19,527,239 

Accumulated Depreciation: 

At 31st December 2016 - 4,727,530 4,727,530 

Charge for the Year - 413,181 413,181 

At 31st December 2017 - 5,140,711 5,140,711 

Charge for the Year - 413,181 413,181 

At 31st December 2018 - 5,553,892 5,553,892 

Net Book Values: 

At 31st December 2018 3,000,000 10,973,347 13,973,347 

At 31st December 2017 3,000,000 11,386,528 14,386,528 

At 31st December 2016 3,000,000 11,799,709 14,799,709 

Land and Buildings at 31st December 2018 are included at deemed cost which represents the 

previous Jamaican GAAP revalued amount which the Credit Union elected to use under the 

provisions of IFRS 1, (note 3(f) ). At 31st December 2013, the fair value of the property at 37 

Lady Musgrave Road as appraised by The C.D. Alexander Company Realty Limited was 

$95,000,000. 

10. 

Cash and Cash Equivalents: 


$ $ 

Cash on Hand 5,301,357 12,233,467 

Cash in Transit - 79,000,000 

Savings Account 20,000 20,000 

Current Accounts 25,633,322 58,307,589 

30,954,679 149,561,056 

11. Receivables: 

Accrued Interest Income 

Receivables 

Less Provision for Bad Debt 


$ $ 

10,835,275 17,402,378 

18,918,409 24,192,011 

(740,000) (894,500) 

29,013,684 40,699,889 





12. Property, Plant & Equipment: 

Land Office Equipment, 

and Furniture & Computer Computer Fence and 

Buildings Fixtures Equipment Software ATM Garden Tools Total 

$ $ $ $ $ $ $ 

At Cost or Valuation: 

31st December 2016 65,170,564 49,691,660 36,166,650 80,376,354 3,891,038 109,470 235,405,736 

Additions 110,366 3,835,687 4,277,772 731,654 2,979,749 - 11,935,228 

Disposals - - - - (3,891,038) - (3,891,038) 

31st December 2017 65,280,930 53,527,347 40,444,422 81,108,008 2,979,749 109,470 243,449,926 

Additions 1,164,796 5,887,438 1,205,484 - 373,324 - 8,631,042 

Disposals - (54,930) - - - - (54,930) 

31st December 2018 66,445,726 59,359,855 41,649,906 81,108,008 3,353,073 109,470 252,026,038 

Accumulated Depreciation: 

31st December 2016 16,996,636 39,258,735 32,308,551 40,435,072 1,945,554 109,469 131,054,017 

Charge for year 1,593,835 3,433,729 2,153,599 13,475,187 460,377 - 21,116,727 

Released on Disposal - - - - (2,390,624) - (2,390,624) 

31st December 2017 18,590,471 42,692,464 34,462,150 53,910,259 15,307 109,469 149,780,120 

Charge for year 1,594,523 2,365,043 2,158,999 14,083,068 403,920 - 20,605,553 

Released on Disposal - (52,717) - - - - (52,717) 

31st December 2018 20,184,994 45,004,790 36,621,149 67,993,327 419,227 109,469 170,332,956 

Net Book Values: 

31st December 2018 46,260,732 14,355,065 5,028,757 13,114,681 2,933,846 1 81,693,082 

31st December 2017 46,690,459 10,834,883 5,982,272 27,197,749 (3,906,345) 1 93,669,806 

31st December 2016 48,173,928 10,432,925 3,858,099 39,941,282 1,945,484 1 104,351,719 

At 31st December 2014, the fair value of land and buildings as approved by the C.D. Alexander Company Realty Limited on March 10, 2011 was 





13. Retirement Benefit Asset: 

The Credit Union participates in a multi-employer pension scheme. The pension scheme up to 

December 31, 2016 was a defined benefit plan and is funded. Subsequent to December 31, 2016 the 

pension is a contributory pension scheme. The assets of the funded plan are held independently of 

the Credit Union's assets in separate trustee administered funds. Independent actuaries value this 

plan annually using the projected unit credit method. The latest actuarial valuation was carried out as 

a 

The amounts recognised in the statement of financial position are determined as follows: 


$ $ 

Present Value of funded obligations 99,021,000 96,354,000 

Fair Value of plan assets (163,204,000) (164,064,000) 

Effect of Asset Ceiling 13,391,000 25,366,000 

Asset in the Statement of Financial Position (50,792,000) (42,344,000) 

The amounts recognised in the statement of comprehensive income are as follows: 


$ $ 

Current service cost 3,624,000 4,691,000 

Interest cost 7,129,000 9,509,000 

Expected return on plan assets (12,694,000) (13,995,000) 

Interest on effect of Asset Ceiling 2,029,000 - 

Past Service Cost - 253,000 

Administrative Expenses 726,000 815,000 

Pension Expense 814,000 1,273,000 

Movements in the amounts recognised in the statement of financial position: 


$ $ 

Net Asset at beginning of year (42,344,000) (47,494,000) 

Pension Expense 815,000 1,273,000 

Re-measurements included in OCI (5,557,000) 8,582,000 

Contributions Paid (3,705,000) (4,704,000) 

Closing Net Asset at End of Year (50,792,000) (42,344,000) 





13. Retirement Benefit Asset - (cont'd): 

The principal actuarial assumptions used in valuing the plan were as follows: 


Discount Rate 7.00% 8.00% 

Future Salary Increases 5.00% 6.00% 

Future Pension Increases 2.50% 2.50% 

The five year trend for the fair value of plan assets, the defined benefit obligations, the surplus in the pension plan, and 

experience adjustments for plan assets and liabilities were as follows: 

2014 2015 2016 2017 2018 

$ $ $ $ $ 

Fair Value of Plan Assets 85,873,000 142,827,000 163,209,000 164,064,000 163,204,000 

Defined Benefit Obligation 55,886,000 102,105,000 115,715,000 96,354,000 99,021,000 

Surplus 141,759,000 244,932,000 278,924,000 260,418,000 262,225,000 

Experience adjustments- 

Fair Value of Plan Assets 5,472,000 8,334,000 2,617,000 3,098,000 (2,057,000) 

Defined Benefit Obligation (4,452,000) (2,375,000) (3,055,000) (17,612,000) (2,548,000) 

14. Members' Voluntary Shares 


$ $ 

Balance at Beginning of Year 1,247,133,471 1,205,920,424 

Balance as at 1st October-CG Cooperative Credit Union Ltd - - 

1,247,133,471 1,205,920,424 

Add Amount subscribed 1,676,031,611 184,964,159 

Add Amount subscribed -CG Cooperative Credit Union Ltd - - 

2,923,165,082 1,390,884,583 

Less Withdrawals and Transfers 1,660,643,921 143,751,112 

Balance at End of Year 1,262,521,161 1,247,133,471 





15. Savings Deposits: 


$ $ 

a) On Call 41,202,467 40,669,108 

a) Easy Access Deposits 41,484,676 39,245,084 

82,687,143 79,914,192 

b) Special Deposits 519,811,284 511,486,322 

c) Life Long Savings 304,087,925 325,889,542 

d) Fixed Deposits 904,193,311 932,897,929 

e) Mortgage Deposits 4,981,637 4,015,589 

f) Loan Savings 9,358 4,262 

g) Partner Plan Savings 35,322,920 30,379,065 

h) Golden Harvest Savings Deposits 57,478,369 53,744,075 

i) Christmas Savings 214,015 603,469 

j) Motor Insurance Savings 31,116,559 25,231,472 

k) Members Mortgage 1,224,465 - 

1,941,126,986 1,964,165,917 

a) On Call & Easy Access Deposits 

Balance at 1st January 79,914,192 90,534,724 

Add Deposits 1,071,143,568 853,324,246 

1,151,057,760 943,858,970 

Less Withdrawals & Transfers 1,067,144,251 863,944,778 

Balance at end of year 83,913,509 79,914,192 

a) On Call & Easy Access Deposits 

These are regular or ordinary deposits used primarily for standing order payments or assisting 

members to gain access through the ATM Banking Facility. No interest is paid on these accounts. 

b) Special Deposits 

Special deposits are for varying periods up to 365 days for which interest is paid at rates of 

between 1.0% and 2.5% per annum. 

c) Life Long Savings 

Life Long Saving Deposits are for a minimum of five (5) years for which interest is paid at rates of 

between 2.75% and 4.65% per annum. 

d) Fixed Deposits 

These represents amounts placed for fixed period at fixed rates of between 2.10% and 3.50% per 





15. Savings Deposits - (cont'd): 

e) Mortgage Deposits 

These represent deposits by members who access Mortgage and Home Equity loans. They are 

required to make monthly deposits to this account until the loan is repaid. Payments are made on 

behalf of the members for peril insurance and life insurance when due. 

f) Loan Savings 

These represent compulsory savings for the Motor Vehicle Plus loan facility. Interest is charged at 

a fixed rate of 2% per annum. 

g) Partner Plan Savings 

These are savings by members towards their short-term goals. It ranges from a minimum period 

of 16 weeks to a maximum of 48 weeks. Bonuses are paid according to the period of the savings. 

h) Golden Harvest Savings Deposits 

The Golden Harvest Saving Deposit account allows the member to save towards a goal while 

insuring the amount of their goal. Fixed amount deposits are made monthly and earn interest at a 

rate of 4.15% per annum. 

i) Christmas Savings 

These are savings by members and staff towards Christmas Expenses and the Education of their 

children. Interest is paid at 5% per annum. 

j) Motor Insurance Savings 

These represent compulsory savings for members who have motor vehicle loans. Members are 

not permitted to access these funds until the loan is cleared and also works as a “cushion” to 

minimize the loss should the account falls in arrears. 

k) These represent an escrow account for members who have received a mortgage through 

the Credit Union. 

16. External Credits: 


$ $ 

a) JPS $2 Million Housing Loan 130,292 130,292 

b) JPS Computer Loan 4,000,000 4,000,000 

c) JPS Education Loan 3,016,705 4,892,035 

d) Private Power Operations Loan 1,248,605 459,877 

e) Ja Energy Partners Loan Scheme 4,724,460 4,662,564 

13,120,062 14,144,768 

a) JPS $2 Million Housing Loan 

This facility was entered into with the Jamaica Public Service Company Limited, to provide loans 

to their employees who are members of the Credit Union to assist them in the acquisition of 

property, repairs and construction of homes. The maximum available is $200,000 at an interest 

b) JPS Computer Loan 

This facility was entered into with the Jamaica Public Service Company Limited, to provide loans 

to their employees who are members of the Credit Union to purchase computers. The maximum 

available is $100,000 at an interest rate of 12% repayable over 24 months. 





16. External Credits (cont'd): 

c) JPS Education Loan 

This facility was entered into with the Jamaica Public Service Company Limited, for their employees 

who are members of the Credit Union , to assist with back to school expenses for their children. 

d) Private Power Operations Loan 

The Jamaica Private Power Company Limited provided an initial $2,000,000 for this revolving loan 

facility for its staff members for a maximum loan amount of $200,000 per member repayable over 24 

months. Selection of persons eligible for this loan is done by the management of the company and sent 

to the Credit Union for evaluation and processing. 

e) Jamaica Energy Partners Loan Scheme 

The Jamaica Energy Partners provided an initial $1,500,000 for this loan facility for its staff members. 

The maximum amount of loan available per member is $150,000 repayable over 24 months. Selection 

of persons eligible for this loan is done by the management of the company and sent to the Credit 

Union for evaluation and processing. 

17. Payables: 


$ $ 

Withholding Tax 7,154,888 22,318,430 

Statutory Contributions 3,159,875 1,725,818 

Cuets ATM Settlement 2,591,084 (4,816,625) 

Other 15,397,606 17,723,916 

28,303,453 36,951,539 

Interest Payable 6,377,036 13,764,241 

34,680,489 50,715,780 

18. Deferred Income 


$ $ 

Injection for IFRS 9 Implementation 4,827,814 - 

Current year cost for implementation of IFRS 9: 

Depreciation charge for upgrade of computer software - - 

4,827,814 - 

This represents an injection by JCCUL to offset the cost of IFRS 9 implementation 

19. Members' Permanent Share Capital: 


$ $ 

Balance at Beginning of Year 74,735,286 74,144,785 

Amount Subscribed in current year 278,656 590,501 

75,013,942 74,735,286 

Each member must hold a minimum of One Thousand Dollars ($1,000) in Permanent Shares and One 

Thousand Dollars ($1,000) Voluntary Shares. 





20. Non-Institutional Capital: 


$ $ 

Capital/Revaluation Reserves (Unrealised) 17,191,673 17,191,673 

Other Non-Qualifying Reserves (Note 22) 65,294,757 79,761,863 

Retirement Benefit Reserves (Note 13) 50,792,000 42,344,000 

Undistributed Net Income (Page 7) 65,690,439 43,519,885 * 

198,968,869 182,817,421 

* Restatement 

This item have been restated to effect a 10% transfer of Net Income for the year before honoraria 

instead of 20% as approved by the Registrar of Co-Operatives and Friendly Societies. 

21. Institutional Capital: 


$ $ 

Revenue Reserve 44,230,207 44,230,207 

Business Combination Reserve 297,610,477 297,610,477 

Statutory & Legal Reserves (Note 23) 349,451,719 335,127,794 * 

691,292,403 676,968,478 

The Revenue Reserves are being set aside, in addition to Statutory and Legal Reserves as set out in 

Article XIV Rule 66, in order to strengthen the Capital base of the Credit Union. These reserves are not 

available for distribution. 

Institutional Capital forms a part of the permanent capital of the Credit Union and is not available for 

distribution. 

Statutory and Legal Reserves: 

The statutory and legal reserves are reserves which are maintained in accordance with the provisions of 

the Co-operative Societies Act which requires that a minimum of 20% of the net income before honoraria 

be carried to a reserve fund. A Registered Society may apply to the Registrar to allow the required 

percentage to be reduced but not below 10%. 

Business Combination Reserve: 

The business combination reserve is a reserve arising on the merger of two or more co-operatives and is 

not available for distribution. It is being retained to maintain the capital base of the Credit Union. 

Retained Earnings Reserves: 

These reserves represent the appropriations by members at the Annual General Meetings to be set 

aside for strengthening the capital base of the Credit Union. 

* Restatement 

This item have been restated to effect a 10% transfer of Net Income for the year before honoraria 

instead of 20% as approved by the Registrar of Co-Operatives and Friendly Societies. 





22. Appropriations: 


$ $ 

Scholarship Fund 1,105,927 1,200,000 

IFRS 9 Provision 36,831,122 - 

Youth Programming - 750,000 

Software Reserve - 750,000 

Redemption Reserve 5,000,000 - 

Care-A-Bit Reserve - 750,000 

Building Reserve - 3,613,009 

Organisational Alignment - 8,000,000 

Permanent Shares - 7,362,354 

42,937,049 22,425,363 

23. Other Non-qualifying Reserves: 


$ $ 

a) General Reserve 11,866,364 26,357,762 

b) Scholarship Fund (61,208) 1,270,365 

c) Youth Programme Reserve 2,203,500 2,403,500 

d) Care-A-Bit Reserve 3,281,209 3,311,209 

e) Software Reserve 14,150,365 16,850,000 

f) Redemption Reserve 4,285,500 - 

f) 60th Anniversary Celebration 3,326,951 3,326,951 

g) Building Reserve 15,613,009 15,613,009 

h) Organisational Alignment 10,629,067 10,629,067 

65,294,757 79,761,863 

a) General Reserve 

This Reserve is used for any general assistance as the Credit Union approves. 

b) Scholarship Fund 

This Fund was established to assist members children who qualified for assistance for 

education after successfully completing the GSAT examinations. The Albert Morris 

Scholarship is also facilitated from this reserve to a member or member's child who has 

been accepted to attend a recognised local university to pursue a course in business or 

computer studies and covers tuition for three years. The scholarship is also available to 

eligible persons selected to pursue an undergraduate degree in engineering at The 

University of Technology, Jamaica (UTECH). 

c) Youth Programme Reserve 

This Reserve is used to provide assistance for the advancement of the Credit Union's youth 

through the staging of various events. 

d) Care-A-Bit Reserve 

This is used to assist members who suffer major illnesses or are affected by natural 

e) Software Reserve 

This reserve is to be used for any major purchases or upgrade of software. 

f) Redemption Reserve 

This reserve is to be used for the purchase or sale of shares to or from members. 





23. Other Non-qualifying Reserves - Cont'd: 

f) 60th Anniversary Celebration 

This amount was set aside from the surplus for the commemoration of the sixtieth (60) anniversary of the 

Credit Union. 

g) Building Reserve 

This reserve is intended to be used for the construction of a new office building at Lady Musgrave Road, in 

Kingston. 

h) Organisational Alignment 

This reserve will be used in organisational re-alignment, for staff cost. 

24. Statutory & Legal Reserves: 


$ $ 

Balance at Beginning of Year 335,127,794 330,931,707 

Entrance Fees - - 

20% of Net Income before honoraria 14,323,925 4,196,087 * 

Balance at End of Year 349,451,719 335,127,794 

* Restatement 

This item have been restated to effect a 10% transfer of Net Income for the year before honoraria instead of 

20% as approved by the Registrar of Co-Operatives and Friendly Societies. 

25. Other Financial Costs: 


$ $ 

Life Savings & Loan Protection Insurance 13,471,066 13,789,566 

Bond Insurance 2,236,401 1,940,680 

Others (1,652,293) 1,577,140 

14,055,174 17,307,386 

26. Non-Interest Income - Other: 


$ $ 

Miscellaneous 4,242,925 9,013,200 

Other Fees & Charges 9,071,138 9,174,276 

Gain/(Loss) on Foreign Exchange 1,069,573 (2,021,121) 

CUETS Income 28,652 41,530 

FIP Income 2,532,711 - 

Under-accrued Income from Prior Year - 573,712 

16,944,999 16,781,597 

27. Operating Expenses: 

i. Personnel Expenses: 


$ $ 

Employee Salaries & Allowances 100,762,357 105,385,304 

Employee Benefits 21,460,095 19,479,398 

Education & Training 2,212,454 1,797,689 

Gratuity 831,043 620,741 

Lunch Subsidy 6,337,550 6,352,200 

Staff Travel & Related Expenses 3,666,201 5,487,850 

Retirement Benefit Expenses 4,768,499 5,292,371 

140,038,199 144,415,553 





27. Operating Expenses (cont'd): 

i. Personnel Expenses: 

The number of persons employed at 31st December 2018 was twenty-nine (29) full-time and seventeen 

(17) part-time (2017 - twenty-nine (29) full-time and seventeen (17) part-time). 

ii. Administrative Expenses: 


$ $ 

Depreciation & Amortisation 21,018,733 21,591,314 

Auditors Remuneration 4,200,456 3,750,067 

Electricity 5,484,303 5,556,513 

Repairs & Maintenance 6,869,026 7,367,413 

Telecommunications 5,760,973 6,542,448 

Printing, Stationery & Supplies 5,085,571 9,637,463 

Insurance Premiums 4,608,677 4,481,102 

Easy Access Expense 408,591 386,869 

Professional & Consulting Fees 2,042,376 2,816,463 

Postage 592,351 997,785 

Security 13,274,331 10,869,096 

Subscriptions 101,323 256,572 

Computer Expenses 21,557,898 22,620,361 

Rental Expense 1,686,593 1,537,662 

Loss on Disposal of Fixed Asset 2,212 1,499,117 

Other Administrative Expenses 4,199,992 4,732,526 

Penalty and Interest - 416 

Internal Audit Expense 4,591,945 4,263,224 

Members' Refreshment 3,683,542 6,641,975 

105,168,893 115,548,386 

iii. Marketing & Promotion Expenses: 


$ $ 

Publicity & Promotion 8,400,540 2,440,626 

Public Relations 439,426 724,050 

8,839,966 3,164,676 

iv. Representation & Affiliation Expenses: 


$ $ 

League & Other Dues 13,992,954 14,130,214 

Seminars & Meetings 7,248,194 8,479,708 

Annual General Meeting 6,044,422 6,564,075 

27,285,570 29,173,997 

Total Operating Expenses 281,332,628 292,302,612 





28. Comparison of Ledger Balances: 

Voluntary 

Shares 

Savings 

Deposits Loans 

$ $ $ 

General Ledger 1,262,521,161 1,941,126,986 2,696,783,838 

Personal Ledger 1,262,521,161 1,941,126,986 2,696,783,838 

Difference at 31st December 2018 - - - 

Difference at 31st December 2017 26,847 (25,281) (32,062) 

29. Related Party Transactions and Balances: 

Arelatedpartyisapersonorentitythatisrelatedtotheentitythatispreparingitsfinancialstatements 

(referred to in IAS 24, Related Party Disclosures as the “reporting entity”). 

(a) A person or a close member of that person‟s family is related to the reporting entity if that person: 

(b) 

(i) has control or joint control over the reporting entity; 

(ii) has significant influence over the reporting entity; or 

(iii) is a member of the key management personnel of the reporting entity 

reporting entity. 

An entity is related to the reporting entity if any of the following conditions applies: 

or of a parent of the 

(i) 

(ii) 

(iii) 

(iv) 

(v) 

(vi) 

(vii) 

(viii) 

The entity and the reporting entity are members of the same group (which means that each 

parent, subsidiary and fellow subsidiary is related to the others). 

One entity is an associate or joint venture of the other entity (or an associate or joint venture of a 

member of a group of which the other entity is a member). 

Both entities are joint ventures of the same third party. 

One entity is a joint venture of a third entity and the other entity is an associate of the third entity. 

The entity is a post-employment benefit plan for the benefit of employees of either the reporting 

entity or an entity related to the reporting entity. If the reporting entity is itself such a plan, the 

sponsoring employers are also related to the reporting entity. 

The entity is controlled, or jointly controlled by a person identified in (a). 

Apersonidentifiedin(a)(i)hassignificantinfluenceovertheentityorisamemberofthekey 

management personnel of the entity (or of a parent of the entity). 

The entity, or any member of a group of which it is a part, provides key management personnel 

services to the reporting entity or to the parent of the reporting entity. 

A related party transaction is a transfer of resources, services or obligations between related parties, 

regardless of whether a price is charged. 





29. Related Party Transactions and Balances - cont'd: 

At 31st December 2018, eleven (11) members of the Credit Union's Board of Directors and ten (10) 

Committee Members had savings of $2,040,442 and loans including interest totalling $35,404,422. 

Credit Union Staff of forty-seven (47) employees had savings of $15,102,03 and loans including interest 

totalling $77,796,039. No waivers were granted to staff members or volunteers during the year. At 31st 

December 2018, all loans owing by Directors, Committee Members, Staff and Connected Parties were 

being repaid in accordance with their loan agreements. 

Key management remuneration for the year was $28,080,737 (2017: $32,336,197,) and comprises the 

General Manager, the Chief Accountant, the Operations Manager, the Compliance Manager, the Credit 

Manager, Treasury/Marketing Manager, Human Resource Manager and the Branch Managers for Ewarton, 

Kirkvine and Ocean Boulevard. 

Directors are appointed on a voluntary basis and are not remunerated. 

30. Life Savings and Loan Protection Insurance: 

There were life savings and loan protection insurance in force during the year. 

31. Fidelity Insurance: 

Fidelity Insurance coverage was adequately maintained during the year. 

32. Comparative Information: 

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the 

current year. In particular, comparatives have been adjusted to take into account the requirements of IFRS. 

33. ATM Fraud: 

Between July and December 2014, a malfunction in the automated teller machine (ATM) system allowed 

some members to withdraw amounts in excess of their available balances. All but three of the affected 

members subsequently entered into repayment arrangements with the Credit Union. Legal action was 

brought against these three members, whereby a full provision of $740,000 was been made. Judgement was 

handed down in favour of the Credit Union however, these three members have not settled with the Credit 

Union as at the 31st of December 2018. 

As at the 31st of December 2018, the amount collected from those members who entered into a repayment 

arrangement totalled Nil. 


Supervisory Committee Report 

The Supervisory 

Committee – Who We Are 

The Supervisory Committee 

is an oversight body or the 

“watchdog” of the Credit Union, 

which means our main role is 

to maintain oversight of the 

safety and soundness of the 

credit union. It is comprised 

of volunteers, duly elected by 

members at the Credit Union’s 

Annual General Meeting. 

The Committee’s roles and responsibilities 

are governed by the Co-operative 

Societies Act (1950). 

ELECTION OF OFFICERS 

The Supervisory Committee members 

for 2018/2019 were elected at the 

Annual General Meeting, held on 

September 29, 2018 at the Jamaica 

Conference Centre. 

Corine McCalla - JPS 

Caphanne March - JPS 

Ann-Marie Raymond - TAJ 

Viris Reece - TAJ 

Janet Plummer - TAJ 

(Joined Oct. 2018) 

Stacey Samuels - TAJ 

(Retired Sept. 2018) 

The Committee convened its first 

meeting on October 8, 2018, in keeping 

with Rule 49, subsection (a), for the 

purpose of electing the officers to serve 

in the various capacities on the 

Committee. The following persons were 

elected to serve: 

Caphanne March Corine McCalla Ann-Marie Raymond Viris Reece Janet Plummer 

• Chairperson Ms. Caphanne March 

•. Vice Chair Ms. Corine McCalla 

• Secretary Mrs. Viris Reece 

• Asst. Secretary Ms. Ann-Marie Raymond 

• Member Mrs. Janet Plummer 

The first official meeting of the committee was held on October 24, 2018 and at 

least once per month thereafter. 

Attendance 

NAMES POSSIBLE ATTENDANCE ACTUAL ATTENDANCE 

Caphanne March 12 12 

Corine McCalla 12 12 

Viris Reece 12 11 

Ann-Marie Raymond 12 12 

Janet Plummer 3 2 

Stacey Samuels 9 5 

TERM UNDER REVIEW 

• Internal audit services - Contractual agreement with Smith & Associates for 

internal auditing ended on October 31, 2018 and was extended to October 31, 

2019. Preliminary activities are being undertaken with an aim to issue a 

Request for Proposal by the 3rd quarter 2019. 

• Training - Committee members participated in the following courses/ 

workshops facilitated by the Jamaica Co-operative Credit Union League and 

JPS & Partners Credit Union: 

- HR Audit - October 31, 2018: (2 members) 

- Financial Management - November 14-15, 2018: (4 members) 

- Proceeds of Crime Act (POCA) - December 8, 2018: (4 members) 

• Special Meetings - Committee members participated in the following meetings 

during the period. 


Supervisory Committee Report Continued 

- Loans for Connected Parties 

- Bid Opening 

- Strategic Planning Retreat 

• Review of Risk & Compliance 

Reports - review done on report 

period October to December 2018. 

• Audit Reports: Internal Auditor, 

Smith & Associates, conducted 

monthly audits at the Head Office 

and bi-monthly audits of the 

branches. These audit reports were 

reviewed and monthly reports 

submitted to the Board of Directors. 

Below are some of the areas audited: 

Head Office 

The Auditor: 

• Determined if the Credit Union’s 

asset register is properly maintained 

and up to date. 

• Evaluated if procurement of goods 

and services comply with 

procedures, and that payments are 

made to bona fide vendors for 

genuine goods and services. 

• Audited payroll for compliance and 

accuracy. 

• Evaluated adequacy of debit card 

procedures in respect of segregation 

of functions and compliance with 

same. Also review of control over 

pinning machines and unpinned 

cards. 

• Reviewed deposits made to the 

credit union over a selected period 

to identify transactions which met 

the threshold requirements for 

reporting under Proceeds of Crime 

Act (POCA). 

• Checked a sample of loans for 

compliance with policy and 

procedures and accuracy of interest 

being charged. 

• Reviewed the extent to which 

previous audit recommendations 

have been implemented. 

• Determined if reports required by 

Bank of Jamaica (BOJ) are 

submitted in a timely manner. 

Branches (Ewarton, 

Kirkvine, Ocean Boulevard) 

The Auditor: 

• Reviewed the adequacy of 

programmes to effectively identify, 

assess, respond to and monitor all 

risks. 

• Reviewed bank reconciliation to 

verify correctness, timely resolution 

and inclusion of appropriate 

signatures. 

• Conducted surprise count of all 

cash funds. 

• Evaluated the preparedness of the 

Co-operative to recover from fires 

or other disasters, and reviewed 

insurance coverage. 

• Reviewed security systems for 

adequacy and responsiveness. 

• Reviewed sample of delinquent 

loans for accuracy and 

completeness, and also assessed 

if there were adequate securities in 

place for these loans. 

• Reviewed sample of standing order 

payments for accuracy and 

timeliness. 

• Compared system’s transaction 

date with date funds were credited 

to bank accounts to ensure 

accounts were being updated in a 

timely manner. 

• Audited loans and deposits with 

volunteers, staff and connected 

parties for transparency, conflict of 

interest and regulatory compliance. 

In general, the Credit Union is in 

compliance with policies and 

procedures, as well as regulatory 

requirements. In instances where 

shortcomings were identified, the 

relevant remedial recommendations 

have been made and we will continue 

to review and monitor their 

implementation status. 

The Supervisory Committee is fairly 

satisfied with the operations of the 

Credit Union and is of the view that 

despite areas requiring improvement, 

the Cooperative continues to be a 

strong financial partner for its members. 

We endeavor to remain vigilant and to 

pay keen attention to the entire 

operations to ensure the best interest 

of members, as well as viability of the 

Credit Union. 

ACKNOWLEDGEMENTS 

The Supervisory Committee would like 

to express its appreciation to Smith & 

Associates, our Internal Auditors, for 

their performance over the period. We 

would also like to thank the 

management and staff of the JPS and 

Partners Credit Union for their 

cooperation and assistance. Importantly, 

we wish to thank all the Credit Union 

members for demonstrating confidence 

in our ability to supervise the operations 

of the Credit Union on their behalf. 

Caphanne March 

Chair, Supervisory Committee 


S 

Credit Committee Report 

At the 63rd Annual General 

Meeting, the following 

members were elected to 

serve on the Credit Committee: 

Cebert Mitchell 

Sharlene Chunnu-Brown 

Nastassia Dixon 

Nicole Goodin 

Diedre Codner-Campbell 

Paul Coombs 

Maxine Gardner 

In keeping with Rule 43, subsection (a) 

the following officers were elected from 

among the members to serve as 

follows: 

Nicole Goodin - Secretary 

Nastassia Dixon - Member 

Sharlene Chunnu-Brown - Member 

Maxine Gardener - Member 

Diedre Codner-Campbell - Member 

Paul Coombs - Member 

Cebert Mitchell - Chairman 


Loan Approvals 

Diedre Codner 

Campbell 

Maxine Gardner 

Sharlene Chunnu 

Effective March 15, 2018, the Board of Directors increased the in-house approval 

limit for loans from $3M to $4M. This was in an effort to improve the turnaround 

time for loan approvals for our members. 

The Credit Committee met regularly throughout the year under review to consider 

all loan applications that were $4M and above. We ensured that all loans submitted 

for our review and subsequent approval were within the established lending policies 

and guidelines approved by the Board of Directors. 

A total of 51 loans amounting to $289.19M were reviewed and approved by the 

Credit Committee during the period January 02, 2018 to December 31, 2018. 


JPS & Partners Co-operative Credit Union Limited 

Loans Approved by the Credit Committee Jan - Dec 2018 

Loan Category No. of Loans Amount - $M 

Motor Vehicle 36 $198,081,762.71 

Home Equity 15 $91,118,007.00 

Total 51 $289,199,769.71 

The table below shows the comparison of loans approved by the Credit Committee 

in 2018 versus 2017. 

Loan Approved by the Credit Committee 2018 vs 2017 

Loan Category 2018 Loan $M 2017 Loan $M 

Motor Vehicle $198.08 $225.61 

Mortgage $0.00 $24.10 

$M 2017 Loan $M 

Home Equity $91.11 $78.77 

M 

Total $289.19 $328.48 


Credit Committee Reprt (Continued) 

Loan Disbursed to Members 

in 2018 

During the review period, a total of 

13,812 loans were approved valued at 

$1,736.90B were approved. This 

represents a decrease of $69.34M when 

compared to 2017 when loans valued at 

$1,806.25B. were disbursed. This was 

mainly due to the effects of the sanctions 

imposed by the USA on UC Rusal 

owners and operates the Windalco 

facilities in Ewarton and Kirkvine where 

our branches are located. 

Training 

On December 8, 2018 members of the 

Credit Committee attended and 


participated in the scheduled Anti- 

Money Laundering (AML)//Counter 

Financing of Terrorism (AML)/ (CFT) 

training seminar hosted by the Credit 

Union. This is in keeping with the Bank 

of Jamaica Regulations for financial 

institutions and to ensure that members 

of the Credit Committee remain current 

and compliant with the Proceeds of 

Crime Act (POCA). 

Thanks to the Board of Directors, 

Management and Staff of the JPS & 

Partners Co-Operative Credit Union for 

their continued cooperation during 

2018. 

We take this opportunity to thank all 

members of the Credit Committee for 

their continued dedication throughout 

2018, and look forward to your 

continued support for 2019. 

This resulted in a substantial decline in 

new loans as the office worked to control 

the potential impact the sanction could 

have had on the loan and delinquency 

portfolios M as a result of the newly 

implemented IFRS 9 Regulations which 

took effect January 1, 2018. These 

locations are usually known for granting 

large volumes of loans over the years. 

The table below illustrates the 

categories of loans approved and 

disbursed in 2018. 

Acknowledgement 

The members Credit Committee 

$M 2017 Loan $M 

continue to pledge their dedication and 

commitment to the role we play in 

helping to build our credit union 

movement. We are pleased to have 

served you our members in helping you 

meet your financial need over the past 

year. We are also grateful for the 

confidence you have placed in us. 


Chairman 

JPS & Partners Co-operative Credit Union Limited 

Loans Approved for the Period January to December 2018 

Loan Category No. of Loans Total $M % 

Motor vehicle 96 321.48 18.51 

Salary Enhancer 653 437.45 25.19 

Within Savings 1058 344.11 19.81 

Character Pay Day 7360 200.12 11.52 

Home Equity 31 119.26 6.87 

Mortgage 2 6.91 0.40 

Christmas 1088 110.28 6.35 

Cash & Credit 874 61.85 3.56 

Education Assistance 353 55.89 3.22 

Mother's & Father's Day 1021 49.50 2.85 

Other 1276 30.05 1.73 

Total 13,812.00 1,736.90 


League Delegates Report 

League Delegates and Alternate 

Delegates are Board members 

who represent their credit 

unions as ambassadors to 

conferences and forums held 

by the Movement’s umbrella 

organization, the Jamaica 

Co-operative Credit Union 

League and other international 

organizations such as the 

Caribbean Confederation of 

Credit Unions (CCCU) and the 

World Council of Credit Unions 

(WOCCU). 

They communicate issues affecting their 

credit unions and discuss matters of 

strategic importance. But, one of their 

main responsibilities with which they 

are entrusted is to ensure that recommendations 

made by the Movement are 

smoothly implemented at their respective 

credit unions. 

During 2018, Mr. David Grey (President) 

and Devon Wright (Treasurer) served in 

the capacity of League Delegates while 

Earl Munroe (Secretary) and David 

Fleming (Vice President) represented the 

Credit Union as Alternate Delegates. 

Highlights of their year as delegates and 

alternate delegates include: 

David Grey 

Devon Wright 

Earl Munroe 

David Flemming 

2018 Convention and 77th Annual General Meeting 

The League’s Convention and 77th Annual General Meeting were held from 

May 17-20, 2018 at the Hilton Rose Hall Resort and Spa in Montego Bay, St James. 

Approximately 140 delegates, alternate delegates and observers attended the 

weekend Convention and Meeting. Bishop Conrod Peterkin, Custos of St James 

officially opened the Convention on Friday May 18th. The Convention was a mixture 

of plenary sessions, workshops, awards presentation and social activities. The 

Annual General Meeting of the Jamaican Managers Association also took place at 

the convention. A number of exhibitors were also in attendance. Participants 

gleaned valuable information from the presentations and workshops. 

Plenary Sessions/Workshops 

Three (3) workshops were held. They were: 

• Workplace wellness and the Impact on Productivity. The presenter was 

Mr. Donovan Gayle, CEO of DHL Jamaica. 

• “Competing in the new IFRS9 Environment” and “Facing the Reality of a 

new Paradigm”. This was the second year that focus was given to the issues 

surrounding IFRS9. 

• “Risk Here, Risk There, Risk Everywhere: Get in the Know: Manage your 

Risk”. Three presenters brought home the issues and helped the participants 

to dissect various risks. Presenters: Ms. Stephanie Williams, Attorney At Law 

from the law firm of Henlin Gibson, Henlin, presented on issues relating to Data 

Protection Act; Mr Robert Finzie Smith, Security Expert and former Army Officer 

dealt with issues of personal safety and Sgt. Kevin Watson, Digital Forensic 

Examiner and Cyber Security Specialist and Cybercrimes Investigator, delved 

into the topic “The War on Cybercrimes”. 


League Delegates Report (Continued) 

AWARDS 

The guest speaker for the awards function was Hon. Audley Shaw, Minister of Industry 

Commerce, Agriculture & Fisheries. 

Several Credit Unions were presented with awards for achievements in 2017. 

• First Regional Co-operative Credit Union won the O.J. Thorbourne trophy for 

Mega Credit Union (C&WJ Co-operative Credit Union was the runner-up) 

• JDF Co-operative Credit Union copped the Renford Douglas trophy for large credit 

Unions (Palisadoes Co-operative Credit Union was declared the runner-up) 

• Grace Employees Co-operative Credit Union won the Paul Thompson trophy 

for medium-sized credit unions (Postal Co-operative Credit Union took the 

runner- up spot) 

• BJ Staff Co-operative Credit Union won the John Peter Sullivan Award for Small 

Credit Unions (PWD Co-operative Credit Union took the runner up spot) 

A number of Credit Unions also won sectional prizes 

Highlights of the 76th Annual General Meeting 

The Meeting was held on May 27, 2018. Delegates from twenty- five (25) Credit 

Unions attended the meeting. President of the League Mr. Winston Fletcher chaired 

the meeting. He welcome the participants and then gave a summary of the Board 

Report for the year 2017. All aspects of the League’s operations were presented and 

examined. Treasurer Mrs. Andrea Messam did the same for the financial reports. 

The chair of the Supervisory Committee also reported. 

LEAGUE’S PERFORMANCE 2018 

Performance 2018 Performance 2017 

Amount Growth Amount 

SAVINGS $89.31B 10.59% $80.76B 

LOANS (Net) $79.65B 11.11% $71.68B 

ASSETS $114 43B 10% $104.01B 

MEMBERSHIP 1,020,871 (.55%) 1,015,253 

Rule Change 

No Rule Changes were presented. 

Resolutions 

Seven (7) Resolutions were passed. 

Annual Credit Union Board 

Consultation 

The annual Credit Union Board 

Consultation was held on November 

17th at the Terra Nova Hotel, Kingston. 

The League’s president Mr. Winston 

Fletcher gave the welcome opening 

remarks and introduction. Several 

League Representatives made 

presentations throughout the day: 

1. Towards a New Value Proposition 

2. Ensuring Credit Union Growth and 

Member Value: Strategic Initiatives 

for 2019 and Beyond. 

3. Improving Member Access: Credit 

Union Interconnectivity and Direct 

Deposit Net Salary Project. 

4. Update on the Credit Union Act and 

IFRS 9 lobby 

In closing the League Group CEO- 

Mr. Robin Levy reminded attendees of 


1. Credit Unions must adapt to remain 

relevant and to differentiate themselves 

2. Credit Unions must begin to 

measure the value they add to their 

members 


League Delegates Report (Continued) 

3. The League itself will always be 

looking to drive value to all member 

Credit Unions. 

Caribbean Confederation of 

Credit Unions (CCCU) 

The 61st Annual International Convention 

and 47th Annual General Meeting of the 

Caribbean Confederation of Credit 

Unions (CCCU) was held at Hyatt Hotel 

in the Republic of Trinidad and Tobago 

from June 15-20, 2018. The theme 

was: “Credit Unions: The Power to 

Change The Future”. 

Dr. the Honourable Christopher Keith 

Rowley, Prime Minister of Trinidad and 

Tobago was the keynote speaker at the 

Convention’s official opening ceremony. 

He spoke on the Convention’s theme. 

The four day convention provided 

educational and social opportunities for 

participants to optimize the Co-operative 

difference. It also provided the 

opportunity for Credit Union leaders to 

refocus on the critical elements that 

have allowed the Movement to compete 

in this global financial warfare, maintain 

our uniqueness while grasping the 

opportunities to empower our members 

in critical times. 

Participants received valuable information 

from five (5) General Sessions and eight 

(8) Breakout Sessions which stimulated 

discussions on topics dealing with how 

to address the latest issues and strategic 

goals which will help Credit Unions to 

project themselves as vehicles for visioning 

and transformation thus ensuring the 

progress and longevity of their Credit 

Unions. 

Conclusion 

We are pleased to have served you as 

delegates, proud to be members of this 

great Movement, and grateful for the 

confidence you have placed in us. We 

look forward to serving you in 2019. 

On behalf of the Team 

David Grey 

Delegate 


Nominating Committee Report 

The JPS & Partners Nominating 

Committee was appointed by 

the Board of Directors in 

accordance with rule 65(1) and 

comprised the following 

persons: 

Tricia Robinson Chairperson 

Allentia Brown Member 

Kim Robinson Member 

Marcia Lewis Member 

Everald Foreman 

Member 

Clive Segree Member 

The Committee considered all retiring 

members from the Board of Directors, 

Supervisory and Credit Committee and 

hereby submit nominations for the 

positions that will become vacant at the 

64th Annual General Meeting. All 

nominated persons have completed and 

submitted the required Prospective 

Board and Statutory Committee 

Members Questionnaire. 

The Committee wishes to thank all 

volunteers both returning and those 

retiring for their invaluable contribution 

over the years. 

Tricia Robinson Marcia Lewis Clive Segree Kim Robinson 

Members of the Board of Directors 

Retiring Nominated Term in Office 

David Grey David Grey 2 years 

Deborah Campbell Deborah Campbell 2 years 

Donovan Cunningham Donovan Cunningham 2 years 

Terrence Knight Terrence Knight 2 years 

Based on the Term Limits for Board member – in excess of three (3) consecutive 

terms, Dwight Hart and Earl Munroe will not seek re-election. 

In keeping with the Memorandum of Understanding (MOU) signed by the merger 

parties, the membership of the Board will revert to the original complement of nine 

(9) volunteers at the Annual General Meeting (AGM) in 2019. 

The following Directors will continue to serve: 

Name 

Clive Segree 

David Fleming 

Remaining Term 

in Office 

1 Year 

1 Year 

Devon Wright 

Nathalie Sparks 


1 Year 

1 Year 

1 Year 

Members of the Supervisory Committee 


parties the membership of the Statutory Committee will revert to the original 

complement of five (5) volunteers at the AGM in 2019. 


Nominating Committee Report (Continued) 

All members of the Supervisory Committee will retire at this meeting. All have 

indicated their willingness to serve for another year. 


Corine McCalla Corine McCalla 1 year 

Caphanne March Caphanne March 1 year 

Janet Plummer Janet Plummer 1 year 

Ann Marie Raymond Ann Marie Raymond 1 year 

Viris Jones-Reece Viris Jones-Reece 1 year 

Members of the Credit Committee 


parties, the membership of the Board will revert to the original complement of five 

(5) volunteers at the AGM in 2019. Mr. Cebert Mitchell has indicated his willingness 

to continue serving. 


Cebert Mitchell Cebert Mitchell 2 years 

The following persons did not seek re-election; Ms. Deidre Campbell and Mr. Paul 

Coombs. We sincerely thank them for their contribution to the growth and 

development of the Credit Union and in particular the Credit Committee. 

The following persons will continue to serve: 

Name Remaining 

Term in Office 

Nastasia Dixon 1 year 

Nicole Goodin 1 year 

Maxine Gardner 1 year 

Sharlene Chunnu-Brown 

1 year 

PROFILES OF THE 

NOMINEES 


David Grey 

Mr. David Grey is an alumnus of the St 

Mary High School, University of 

Technology, Jamaica, The Management 

Institute National Development, The 

Manchester Business School and the 

Norman Manley Law School where he 

obtained undergraduate Degrees in 

Finance and Law, a Post Graduate 

Diploma in General Management, the 

Master of Business Administration and 

the Certificate in Legal Education 

respectively. 

Mr. Grey has been a Public Servant over 

the last 30 years and has worked 

extensively in the fields of Public Sector 

Management and Accountancy, Audit 

and Investigation of Private and Public 

sector entities and has made valuable 

contributions to the development of the 

Tax Policy. 

Mr. Grey in his role as a volunteer in the 

Credit Union Movement has offered his 

expertise in the areas of Law, Corporate 

Governance and Accountancy and has 

held several positions including the 

Chairmanships of the Treasury, Human 

Resource, Delinquency, Supervisory and 

Credit Committees respectively. He also 

has a special interest in the fields of 

corruption/fraud examination, investigation 

and prevention and has been a Certified 

Fraud Examiner since 2000. 

Mr. Grey has delivered papers locally and 

overseas on Jamaican Anti-Corruption 

efforts and Protected Disclosures 

Provisions (i.e. whistle blowing legislation). 

He has also appeared before Parliamentary 

Committees considering legislative 



changes to the Corruption Prevention Act 

and played a key role in the development 

of the Regulations to the said Act as well 

as the Procedural Guidelines to the 

Protected Disclosure Act. 

Donovan Cunningham 

Donovan Cunningham is a Human 

Resource practitioner currently employed 

to the National Peoples Co-operative 

Bank of Jamaica in the capacity of HR 

Manager. He is a current Board member 

of the JPS & Partners Cooperative Credit 

Union where he chairs the Risk 

Committee. Mr Cunningham is a past 

employee of the Jamaica Public Service 

Company where he served in various 

capacities over a 30 years period and 

was most recently the Parish Manager 

for Manchester and Clarendon. 

His academic qualifications include a 

Bachelor of Science Degree in Human 

Resource Management from the University 

of the Commonwealth Caribbean, an 

Associate of Science Degree in Business 

Administration from the University College 

of the Caribbean, a Diploma in General 

Management from the Management 

Institute for National Development. He is 

currently an active member of the 

International accreditation body “Society 

for Human Resource Management” 

(SHRM). 

He is an intrinsically motivated volunteer 

and Lay Magistrate who spends most of 

his leisure time with the Rotary Club of 

Christiana, as he firmly underscores 

the Philosophy of Elizabeth Andrew 

“Volunteers do not necessarily have the 

time; they just have the heart.” 

Terrance Knight 

Mr. Terrence Knight is currently employed to West Indies Alumina Company 

(Windalco) as Manager- Capital and Engineering Services. His professional and 

educational qualification includes Master of Business Administration (MBA) (Banking 

& Finance), Bachelor of Engineering (Electrical Power) an a Diploma in Electrical 

Engineering (Instrument Technology) 

He has worked in several engineering positions, such as Engineering Co-coordinator, 

Project Engineer and Electrical/Instrument Engineer. Mr. Knight is also a former 

chairman of the Supervisory Committee and currently serves on the Delinquency, 

Infrastructure and Member Services Committees. 

He believes in the mantra “Do unto others as you would have them do unto you”. 


Deborah Campbell has gained extensive accounting and management experience 

through positions held at Alcan Jamaica Company, Jamaica National building 

Society, and West Indies Alumina Company. 

Her expertise is in developing and implementing control mechanisms to ensure 

smooth and efficient management of an organization’s financial systems. 

She earned her Bachelor of Science degree in Management Studies from the 

University of the West Indies, and is currently pursuing her ACCA designation. 

Deborah has served her church community as a volunteer for the past 20 years as 

Treasurer, Group Leader and presently works with the Mother’s Union. She sees 

this as her way of giving back to the community. 


Annmarie Raymond 

Ms. Raymond has been an Internal Auditor in the Ministry of Finance for most of 

her working years. She is a Certified Accounting Technician (AAT) and also has a 

diploma in Management Studies and Accounting from the Institute of Management 

Sciences. 

Annmarie is a Seventh Day Adventist and is also a member of the Church’s and 

School’s Board of Directors. She is a Master Guide and actively involved in 

Pathfinder Clubs. She likes to volunteer in her church and community and conducts 

CSEC and GSAT classes with young people. She enjoys singing and visiting new 

places. 



Caphanne March 

Ms. March has been employed to the Jamaica Public Service Company Ltd. for the 

past 22 years where she has held various administrative positions and currently 

serves as the Manager, Expansion Administration department. She is a graduate 

of the University of the West Indies where she completed a BSc. in Management 

Studies (Accounting & Management) as well as graduate studies in Human Resource 

Development and English Language. She also holds a certificate in Project 

Management from the University of New Orleans. 

Caphanne has been a Credit Union volunteer for over ten years serving as location 

representative, Development Committee member and in the last financial year she 

served as the Secretary to the Supervisory Committee. 

Corine McCalla 

Ms. McCalla has been employed to the Jamaica Public Service Company Ltd. for 

the last 21 years and has been a member of the Credit Union ever since. During 

her tenure in the organization, she has worked in several departments including 

technical Services, Workshop and New Generation. She currently serves as the 

Executive Assistant to the Chief Financial Officer in the Finance and Administration 

Division. She holds an Associate and Bachelor’s degrees in Business Administration. 

Corine has been a member of the Supervisory Committee for almost two years and 

has served as Chairperson since the last AGM. She is the proud mother of a 

beautiful daughter, Karyn McCalla. She considers herself a task oriented and a 

people person. 

Janet R. Morrison Plummer, FCCA, FCA 

Ms. Morrison Plummer is employed to Tax Administration Jamaica (TAJ) as an Audit 

Specialist. She is currently assigned to the Production Support Office on King Street, 

where she serves as the Subject Matter Expert for Audit on TAJ’s integrated tax 

administration system (known as Revenue Administration and Information System 

- RAIS). 

She is a Chartered Accountant who has spent all her professional life in Accounting 

and Audit. She is also a Fellow of both the Institute of Chartered Accountants of 

Jamaica (ICAJ) and the Association of Chartered Certified Accountants (ACCA). She 

is a member of Council of ICAJ and serves as Chair of the Institute’s Public Sector 

Committee. 

Ms. Plummer has experience with credit union affairs as she served the then CG 

Cooperative Credit Union as a member of the Supervisory Committee. She is a 

Toastmaster and currently serves District 81B as Assistant Division Director- 

Program Quality. 

Viris Reece-Jones 

Mrs. Reece-Jones has been employed to the Tax 

Administration of Jamaica (TAJ) since 1997. She 

presently holds the position of Senior Revenue 

Auditor. 

Her qualifications include an MSc in Accounting 

from the University of the West Indies and a 

Diploma in Education from the Mico University 

College. 

Mrs. Reece-Jones describes herself as a hard 

worker with strong analytical skills. 



Mr. Mitchell is currently a Consultant in the 

Taxation Policy Division of the Ministry of 

Finance. He is a career public officer who has 

served for almost 35 years in various capacities 

including Accountant, Internal Auditor, and Acting 

Assistant Commissioner of Customs. He has also 

served for approximately 20 years within the 

Cooperative Movement. His service includes Vice 

President and member of the Supervisory 

Committee of the former CG Cooperative Credit 

Union and Director of the Jamaica Civil Service 

Mutual Thrift Society. 

Cebert is a founding member of the Marine 

Police Civic Committee, founding Vice President 

of the Sunrise Optimist Club of Newport as well 

as founding Secretary of the Ken’s Wildflower 

Community Sports Club. 

His interests include music, cricket and dominos. 


Chairperson 


Resolution 

Current Maximum Liability 

WHEREAS Credit Unions are required to 

obtain the approval of the General 

Meeting for the maximum liability they 

may incur in voluntary shares, loans and 

deposits and whereas the current limit 

approved by the last General Meeting 

was for this Board to borrow up to an 

amount not exceeding a ratio of sixteen 

(16) times of the Society’s capital and 

reserve fund; 

WHEREAS the Board of Directors is 

satisfied that the present functions of 

the JPS and Partners Co-operative 

Credit Union can be discharged within 

the limit of sixteen (16) times previously 

established; 

BE IT RESOLVED THAT The Board of 

Directors may incur a liability in 

voluntary shares, deposits and/or loans 

from any source on such terms of 

payment or security provided that the 

total liability shall not exceed a ratio of 

sixteen (16) times of the Society’s 

capital and reserve fund. 


“Throw your han in the 

JPS & Partners 

Partner PLAN Account 

and start saving the good old fashion way today!” 

Buying a Stove, Refrigerator or a Television set... 

Open a partner plan account and start saving today! 

FEATURES 

•The Partner Plan 

is a savings product which takes its 

design from the popular Jamaican 

savings schemes called Partners 

•You decide how much to throw 

per hand 

NO BANKER’S FEE 

It attracts a bonus when you save regular: 

• Save $5,000.00 weekly for a period 

of 48 weeks and get a bonus of 

$11,250.00 ($5000.00 *2.25) 

Four (4) different savings periods, 

all within one year, from which 

members can choose to save. 

PERIOD BONUS 

16 weeks ¼ throw 

24 weeks ½ throw 

36 weeks 1 ½ throws 

48 weeks 2 ¼ throws

Ask about our… 

✓Excellent Returns ✓Free Insurance 

Save for your children’s education. 

Treasure 

Chest 

Youth Savers Account 

Start your children off 

on the right track. 

Back-To-School 

LOAN 

Up to $150,000.00 

Making it easier for you to 

access education. 

Call a Member Service Representative for more information 

You don’t 

have to do it 

alone, call 

us today! 

65 3 /4 Half Way Tree Road, Kingston 10 

Toll Free: 888-991-4304 • jpscreditunion@jpscu.com 

www.jpscu.com 

Stay Close to Home... 

UPDATE YOUR RECORDS 

We are currently reviewing our records to ensure that we have up-to-date 

information on our Members, and also to ensure compliance with the 

requirements of the Proceeds of Crime Act (POCA). As such, we ask you, 

our members, to complete our Member Update Form. The Form is available 

for download from our website, from your locations through your location 

representatives and from the Credit Union’s office. Also remember to get 

your picture identification card scanned and uploaded to our system the 

next time you visit our Office. 

ARE YOU AWARE...of who your beneficiaries are? 

Did you... nominate your beneficiaries on opening your account? 

Do you... wish to change/update your beneficiaries? 

Please ensure you complete a Nomination form to update your beneficiary’s 

information. Forms are available from the Credit Union’s website; 

www.jpscu.com or from our office. Remember to return your completed 

forms to the Credit Union. It is important that you know who your 

beneficiaries are, if you do not recall who your beneficiaries contact our 

Member Care Department and they will be more than happy to assist.

Notes 


National Anthem 

Subhead lines 

Eternal Father, bless our Land 

Guard us with Thy mighty hand 

Keep us free from evil powers 

Be our light through countless hours 

To our leaders, Great Defender, 

Grant true wisdom from above 

Justice, truth be ours forever 

Jamaica, Land we love. 

Teach us true respect for all 

Stir response to duty’s call 

Strengthen us, the weak to cherish 

Give us vision, lest we perish 

Knowledge send us, Heavenly Father 

Grant true wisdom from above 

Justice, truth be ours forever 

Jamaica, land we love 

Chorus: 

Jamaica, Jamaica, Jamaica, Land we love. 

Prayer of St. Francis of Assisi 

Lord, make me an instrument 

of Thy peace; 

Where there is hatred, 

let me sow Love, 

Where there is injury, Pardon, 

Where there is doubt, Faith, 

Where there is despair, Hope, 

Where there is darkness, Light, and 

Where there is sadness, Joy. 

O Divine Master, grant that I may not 

So much seek, to be consoled as to console, 

To be understood as to understand 

To be loved, as to love, 

For it is in giving that we receive, 

It is in pardoning that we are pardoned, 

and it is in dying 

that we are born to Eternal Life.

Annual Report 2018

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