Annual Report 2020

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.

JPS & PARTNERS CO-OPERATIVE CREDIT UNION LIMITED

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

• Youth Savers Account

LOANS PRODUCTS

• Motor Vehicle

• Education

• Mortgage

• Home Equity

• Air Conditioning

• Christmas Combo

• Pay Day

• Computer

• Vacation

• Father’s Day

• Cash-On-Credit

• Mother’s Day

• Insurance Premium

• Furniture & Appliance

• Salary Enhancer

• Valentine’s Day

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

5

Notice of Meeting

Progress Report

6 Minutes - 65th Annual

General Meeting

21

23

35

44

50

Pictorial Highlights

Board of Directors’

Report

Treasurer’s Report

Our Managers and

Team Members

Our Location

Representatives

FINANCIALS

52

53

58

59

60

65

66

Letter from the

Department

of Co-operatives

Auditors’ Letter

Statement of Financial

Position

Statement of

Comprehensive

Income

Statement of Changes

in Equity

Statement of Cash

Flows

Notes to the

Financial Statements

COMMITTEE REPORTS

107 Supervisory

Committee

110 Credit

Committee

112

League Delegates

Report

114 Nominating

Committee

118 Special

Resolutions

123 Resolutions

Your Financial Partner for Life 3 2020 Annual Report


Notice of Meeting

Notice is hereby given that the 66th Annual General Meeting (AGM) of the

JPS & Partners Co-operative Credit Union will be held on Thursday

November 25, 2021 at 2:00 p.m. in hybrid format, at the physical location

of the Jamaica Pegasus Hotel, 81 Knutsford Boulevard, Kingston 5 and

via livestream on Zoom.

Take further notice that at this meeting, JPS & Partners intends to amend

Article 1X Rule 44, Article X Rule 51, Article XII Rules 56,60, and Article

XXIV Rule 77.

AGENDA

1. ASCERTAIN that a quorum is present

2. CALL TO ORDER & NOTICE OF ANNUAL

GENERAL MEETING

3. APOLOGIES FOR ABSENCE

4. APPROVAL OF THE MINUTES

of the last Annual General Meeting

and discussion of MATTERS arising

5. REPORTS

Board of Directors

Treasurer and Auditor

Supervisory Committee

Credit Committee

League Delegates

6. DISTRIBUTION OF SURPLUS

8. NOMINATION COMMITTEE REPORT

9. ELECTION

Board of Directors

Credit Committee

Supervisory Committee

10. ANY OTHER BUSINESS

11. ADJOURNMENT

Tricia Robinson

Board Secretary

7. RESOLUTIONS

Fixing of Maximum Liability



Progress Report

2011 - 2020

YEARS MEMBERS SHARES DEPOSITS LOANS

EARNINGS

ASSETS DIVIDENDS/

Balance Balance Balance Gross Expenses Net Income INTEREST

Income

before Honoraria

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

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 1,941.13 2,651.75 460,278 388,659 71.62 4,238,844 1.5

2019 13,946 1,318.62 2,009.06 2,868.74 458,035 400,800 57.24 4,883,825 1.35

2020 11,938 1,418.38 2,094.08 2,773.69 455.56 375.45 80.11 5,164.88 -



Minutes of the 65th AGM

of the JPS & Partners Co-Operative Credit Union Limited

held on Saturday, September 19, 2020 at the Jamaica

Conference Centre, 14-20 Port Royal Street, Kingston

(From left): Vice President, David Fleming skims through the 2019 annual report with the General Manager, Joydene Jarrett and

President, David Grey

Board Members and General Manager in attendance were:

Mr. David Grey

President/Chairman

Mr. David Fleming

Vice President

Mr. Devon Wright

Treasurer

Miss Deborah Campbell Assistant Treasurer

Miss Tricia Robinson

Secretary

Mr. Clive Segree

Assistant Secretary

Mr. Terrence Knight

Director

Miss Natalie Sparkes

Director

Miss Joydene Jarrett

General Manager

CALLED TO ORDER

The Chairman, Mr. David Grey, having dialogued with the

representative from the Dept of Cooperatives, commenced

the morning’s activities at 11:10 a.m. He invited everyone

present to stand for the playing of the National Anthem.

PRAYER

The Chairman asked everyone to turn to the back of his or

her Annual Report and repeat the Prayer of St. Francis of

Assisi.



Minutes of the 65th AGM (Continued)

APOLOGIES FOR ABSENCE

Apologies for absence were tendered for Mr. Derrick

Tulloch, former President of JPS & Partners Co-operative

Credit Union Limited, Miss Sonia Smith, Mr. Delroy Redway,

former Treasurer, Mr. Albert Dawkins, former Vice

President, Miss Jennifer Williams, Principal of the Queen’s

School and Miss June Redway.

BIRTHDAY CELEBRATIONS

Chairman Grey asked all members who were celebrating

birthday in the month of September to stand. Members

sang happy birthday to all the celebrants.

TRIBUTE

The Chairman noted that membership was key for the

Credit Union Movement and thereafter read the names of

the following members who had transitioned since the last

Annual General Meeting: Patricia Young, Oscar Stenneth,

Elva Ruddock, Antonnette Henzil, Audrey Bravo, Gernes

Gibbs, Hopeton Anglin, Naomi McKoy, Anthony Benjamin,

Derrick Banton, Janetta Campbell, Cathlyn Junior, Karl

McDermott, Sterling Hodges, Colenzo Hewan, Winston

Wilson, Charles Hendricks and Patricia Cole. Subsequent

to the reading of the names, the Chairman invited members

to observe a moment’s silence in their honour.

INTRODUCTION OF MEMBERS OF THE

BOARD AND MANAGEMENT TEAM

Chairman Grey introduced the Board Members and the

Members of the Management Team in attendance.

Apologies were tendered for Mr. Donovan Cunningham

who would be joining the meeting online, as well as for

managers; Messrs. David Goodlitt and Pierre-Anthony

Wright who are members of the Adventist faith.

WELCOME

The Chairman extended welcome to everyone present and

proceeded to acknowledge the specially invited guests. He

acknowledged: Miss Vera Lindo from the Jamaica Cooperative

Credit Union Limited (JCCUL); Miss Simone

Powell, Auditor from Crowe Horwath; Mrs. Sheryll Ramsay-

Brown and Miss Xenia Blake from the Department of Cooperatives

and Friendly Societies and Mr. Carl Bryan, Steno

Writer. Special welcome was extended to the members

who joined the meeting online.

OBSERVATION OF COVID-19 PROTOCOLS

Due to the prevailing pandemic, the Chairman used the

occasion to remind the members that strict COVID-19

protocols were to be observed at all times during the

meeting and that there should be no sharing of annual

reports, pens and pencils. He noted that all presentations

would be done from the individual seats of the persons

presenting and that all meals were packaged to go.

Marketing Officer, Sueann McAnuff hands out care packages to

members during registration.




Board Secretary, Tricia Robinson getting registered.

PRIZES

The Chairman noted that a random draw was done in

respect of the prizes awarded to members for varying

reasons. Miss Jasmine Smith, Mr. Audley Richards and Mr.

Winston De La Haye, received prizes from the General

Manager Miss Joydene Jarrett.

QUORUM

The Chairman stated that the Registrar’s Representative

will advise him as to the next step. He told the members

that the Representative was inviting all persons to remain

inside the room and for those on the outside to enter the

room in order to conduct the final count to ascertain if a

quorum was present. Chairman Grey subsequently said

that the Representative had given the approval for the

continuation of the meeting and asked the Secretary to read

the Notice of the 65th Annual General Meeting.

NOTICE OF 65TH ANNUAL GENERAL

MEETING

The Secretary read the Notice convening the 65th Annual

General Meeting as well as the items on the Agenda for the

meeting. The President said it was his pleasure to call the

meeting to order. He subsequently invited a motion for the

adoption of the Agenda. The motion was moved and

seconded by Mr. Clive Segree and Mr. Cebert Mitchell,

respectively.

MINUTES OF THE 64TH ANNUAL

GENERAL MEETING

The President reminded the members that some items on

the Agenda were already completed and that he would be

moving on to those items that were not yet done. Secretary

Tricia Robinson was invited to go through the Minutes of

the last Annual General Meeting. The Secretary invited a

motion for the Minutes, to be taken as read. The motion was

moved by Mr. Cebert Mitchell and Seconded by Miss

Natalie Sparkes.




CORRECTIONS

There were no corrections to the Minutes.

MATTERS ARISING AND CONFIRMATION

OF THE MINUTES

Mrs. Sabrina Mullings-Morris enquired as to whether the

information stated on page 11 of the Minutes that loans

grew by 11.13% compared to 12.5% in 2017, was an error,

as 12.5% is higher than 11.13%. Mr. David Fleming

explained that for 2017 loans grew by 12.5%, while for 2018

it grew by 11.13%. He stated that it was not a comparison

of the year but instead an explanation of how the loans

portfolio grew in a particular year. There being no other

matters arising from the Minutes, the Secretary invited a

motion for the confirmation of the Minutes. A motion was

moved by David Fleming and seconded by Ingrid Grant.

REPORT OF THE BOARD OF DIRECTORS

The Chairman told the members that the Report of the Board

of Directors was previously circulated and asked for a motion

to have the report taken as read. The motion was moved by

Mr. Cebert Mitchell and seconded by Mr. Devon Wright. The

Chairman noted that the report was quite comprehensive and

therefore he would be taking the members through the

highlights. Commencing his presentation, he stated that the

Credit Union adopted the mantra “We C U”, which meant that

the JPS & Partners Credit Union changed the way they do

‘Credit Union’ together by taking a broader look at the Credit

Union’s operations with the view and a vision to improve and

expand its brand.

The Global Economy

The International Monetary Fund’s World Economic Outlook

Report of 2019, according to the Chairman, projected a

world economic growth of 0.4% ie 3.4% in 2020 over 3.0%

in 2019. He noted that there were some global shocks and

that the closest one to Jamaica was the US$3.4 Billion

worth of damage in the Bahamas as a result of the impact

of Hurricane Dorian.

The Jamaican Economy

The Chairman highlighted tenets of the Jamaican economy

that would have influenced the Credit Union’s performance

over the year.

Growth of 1.7% was recorded at the end of 2019, according

to Chairman Grey, while unemployment rate stood at an

average of 9.52% throughout the year. He noted as well that

inflation started the year at 2.3% and closed at 6.2%, which

represented the highest recorded rate of inflation over the

last five years. Treasury Bills, he stated, closed the year at

1.32% for 90-day tenure and 1.60% for 180-day tenure

instruments respectively. In addition, he also stated that at

the end of 2019 the Jamaican dollar closed the year at

Jamaican One Hundred and Thirty-Two Dollars and Sixty

Cents (J$132.60) to One US Dollar (US$1) and that the Net

International Reserves stood at US$3.2 Billion in December

2019.

The Credit Union Movement

and the League’s Performance

The Chairman highlighted that in terms of savings, there was

growth of 7.91% in which Savings moved from $89.31 Billion

to $96.3 Billion, while, in terms of loans to membership, there

was a 12.53% growth (in 2018 it was $78.8 Billion and at

the close of 2019 it was $88.67 Billion) as well as Assets

grew by 8.59% from $114.16 Billion to $123.97 Billion. He

noted, however, that membership in the movement fell

slightly by 1.44% from 1,021,267 to 1,006,557 members,

respectively.

JPS & Partners’ Performance

Continuing his report, the Chairman stated that the JPS &

Partners Co-operative Credit Union realized growth in the

following areas: Shares by 4.44% from $1,262.52M to

$1,318.62M; Deposits by 3.5% from $1.9 Billion to $2

Billion; Loans by 8.2% from $2.65 Billion to $2.86 Billion,

Total Assets by 15.12% from $4.23 Billion to $4.87 Billion

and Institutional Capital by 3.1% from $691 Million to $712

Million. He, however, noted that Surplus fell by 20%, using

the 2018 and 2019 figures, from $71.62 Million to $57.24

Million. Membership fell by 6.7% from 14,947 members to




relation to other items that the Credit Union had

repossessed, he stated that the members paid off the loan

before the Credit Union commenced any further action.

Products and Services

The Chairman reported that the Credit Union had to pay

keen attention to its competitive edge as regards the

products and services it offered to its members. He said that

for 2019 the Credit Union initiated several loan promotions

such as Mortgage loan, Car loan and Valentine’s Day loan.

Other products offered, he noted, were the Partner Plan,

UGain Savers Account, Standing Order, as well as the

Family Indemnity Plan. He gave credit to the team of

hardworking employees at the Credit Union for the work

they have been doing, as well as to the Members of the

Board for their direction, monitoring of the financial

performance of the Credit Union, as well as approving

several policies regarding the operation and functions of the

Credit Union.

Former Director, Gerlyn Gray reads through the annual report.

13,946 members. The culling of the Credit Union’s database

in preparation for the start of the League’s MasterCard

project accounted for the decline.

Delinquency

In terms of the delinquency ratio, the Chairman noted that

in 2018 the Credit Union’s delinquency ratio was 1.51%,

which meant that on a gross loan portfolio of $2.7 Billion the

total amount of delinquent loan was $40 Million. For 2019,

he reported that the ratio stood at 1.3% and that for a loan

portfolio of $2.29 Billion the delinquent loans totalled

approximately $38 Million. He added that the Credit Union

maintained an Estimated Credit Loss (ECL) provision below

2%, which was very good in terms of the League’s

standard. The Chairman stressed that to manage the

delinquency portfolio, the Credit Union had to take serious

steps such as the repossession of security which saw the

sale of one vehicle owned by a delinquent member. In

Achievements of the Credit Union

In highlighting the achievements of the Credit Union during

the year, the Chairman stated that the Credit Union’s

website was redeveloped and that the members expressed

that the website was more functional and reflected modern

thinking. He stated that the Credit Union had invested

heavily in the updating of the disaster recovery systems and

replications and that in the event of down time the Credit

Union would be able to switch immediately and seamlessly

without any impact on the membership. The Chairman

reported that during the year members experienced

challenges with the Credit Union’s e-mail system. He,

however, noted that these challenges were eliminated since

the upgrades done by the Credit Union. He also noted that

the Emortelle platform was upgraded from 9.0 to 9.1. The

Chairman said he knew that the mobile app was in the App

Store in Android and that the Credit Union was close to

finalizing the requirements needed to have the mobile app

also in the Apple Play Store so that members would be able

to download it on their phones.




Events Held During the Year

The Chairman highlighted that the Credit Union in

observance of Credit Union week, had a week of

celebration, as well as its Membership Appreciation Day.

Corporate Social Responsibility

The Chairman reported that both the St. Mary the Virgin and

the Polyground Basic Schools were gifted with items from

the Credit Union to assist them in the learning process. He

stated that the Credit Union, over the years, invested

heavily in the Bursary and Scholarship Programme and that

during the year under review, members and their children

benefitted from the Albert “Bertie” Morris Scholarship, the

Carl Little Scholarship and the Primary Exit Profile (PEP)

Bursaries. In addition, he said that members received

donations from the Care-A-Bit Fund, as well as donations

were given to staff and corporate entities in relation to

charitable activities. The Chairman further said that monthly

health checks were conducted at the Head Office for

members as a part of the Credit Union’s corporate outreach.

The Way Forward

In looking at the way forward in serving the members, the

Chairman reported that in year one the tactical focus would

be on improving members’ satisfaction. He mentioned the

deployment of the internet services and noted that for year

two the Credit Union would be building out a sales culture.

The Chairman opined that gone are the days when the

business would come to the Credit Union, he noted that the

Credit Union would now have to go out and get the

business. In addition, he stated that this would mean that

with the Information Telecommunications (IT) infrastructure

loans would be done online, sent into Head Office and the

Member Service Representative or the Credit Officer would

visit the members and complete the processing of the

application. He also opined that if everything went well,

members could have the funds deposited directly to their

accounts. The Chairman said that for an organization to be

dynamic it cannot afford to remain static and noted that

there were twenty five (25) Credit Unions in Jamaica. He

added that there would always be an opportunity to take

over one of these Credit Unions. Such a taker will require

Marketing team Zurie Johnson and Sue Ann McAnuff prepares

for registration, COVID-19 Style.

particular skills that the JPS & Partners Co-operative Credit

Union has in place.

Acknowledgement

The Chairman thanked Almighty God for guiding the Credit

Union over the last 12 months. He also thanked the

Management and Staff of the Credit Union, the Board

Members, the Management and Staff of the partner

companies such as Jamaica Public Service Company, Tax

Administration of Jamaica, West Kingston Energy Partners,

Jamaica Private Power Company, NESOL, UC Rusal, Digicel

Jamaica, the League, CUNA Caribbean Jamaica, JCIA,

Department of Cooperatives, auditors both internal and

external and attorneys, for their sterling efforts and hard

work over the year.

Matters arising from the Board’s Report

Mr. Winston De La Haye enquired of the Chairman as to




Mr. Eaton McNamee asked about the reduction in the

membership of the Credit Union and said that the reduction

was a reflection on the marketing of the Credit Union. He

subsequently asked what the marketing budget was for the

Credit Union. The Chairman informed Mr. McNamee that

the marketing budget was $27 Million and that a large

percentage went into advertisement. He pointed out that

previously it was difficult to sell the Credit Union, as nobody

knew about the Credit Union. However, he stated that the

Credit Union was now using social media platforms such

as Instagram, Facebook and YouTube to market the Credit

Union. In terms of the reduction in membership, the

Chairman said that the reduction was due to migration of

some members, death and culling of the membership base.

Miss Julitte Reeves told the Chairman that it was good for

the Credit Union to be going after an increase in membership.

However, she stated that the Credit Union should also

increase its staff complement in order to better serve the

members. Chairman Grey pointed out that the increase in

staff was a critical part of organizational structure.

Adoption

A member poses a question to the Chairman.

The Board’s Report was adopted on a motion from Andrea

Thomas and seconded by Gerlyn Gray.


how the sales culture would fit into what he called the

Three-Two-One Growth Plan of the Credit Union. The

Chairman, in response, said that the culture envisaged was

one that would no longer see persons only coming into the

Credit Union to apply for loan but rather the application for

loans would be done online and that the sales person or the

loans officer would visit the applicant’s place of work or

business depending on the type of transaction to be done.

In addition, he pointed out that under the new regime,

members would see loan funds going directly into their

accounts. He noted that the culture shift was one that the

entire Credit Union Movement was embracing and that JPS

& Partners Co-operative Credit Union should embrace such

a shift.

The Treasurer, Mr. Devon Wright invited Miss Simone

Powell from the auditing firm Crowe Horwath Jamaica to

read the Auditor’s Report. Miss Powell read the report and

presented highlights. A motion was moved and seconded

by Miss Natalie Sparkes and Cebert Mitchell for the

Auditor’s Report to be taken as read.

Commencing his report, the Treasurer said that he was

pleased to be presenting the financial results for the year

ended December 31, 2019. He reported that several

strategies implemented during the year resulted in the

growth in the Credit Union’s core operations and that the

accounts were prepared in compliance with the International

Financial Reporting Standards.




Economic Overview

The Treasurer highlighted that the Jamaican financial

system remained stable for the fiscal year 2018-2019 and

that the stability in the country’s key macroeconomic

indicators accounted for the performance. He pointed out

that the Credit Union produced good results on its core

operations in the prevailing environment. The Treasurer

subsequently pointed out that the Credit Union had to

contend with strong competition in the financial sector as

commercial banks and other financial institutions continue

to aggressively target consumers with attractive credit

options. Treasury Bills for 2019, he noted, ended the year

at 1.74% for 90-day instruments and 1.75% for 180-day

instruments, while inflation rate moved from 2.4% in 2018

to 6.2% in 2019. He also noted that the Jamaican dollar in

relation to the US$ moved from $125.89 in 2018 to $131.59

in 2019, a 3.8% movement.

Performance in key areas of operations

Treasurer Wright reported that Interest Income decreased

by 1.81% or $7.30 Million and stood at $404 Million in 2018

and $397 Million in 2019. Interest Expense reduced by

13.72% ending 2019 at $86 Million and in 2018 at $93

Million. Provision for loan loss decreased by $5.5 Million.

Operating Expenses increased by 9% or $25.45 Million,

moving from $281 Million in 2018 to $307 Million in 2019.

The Treasurer pointed out that the main driver for the

movement in Operating Expense was Personal Cost, which

increased by $14.55 Million or 10.39% due to the Credit

Union’s Collective Labour Agreement which saw members

receiving increased salaries and benefits. Administrative

Expense for the year increased by $9.42 Million or 8.96%,

while Marketing and Promotion increased by $0.98 Million

or 11%. The Treasurer stated that the Credit Union did not

have a Marketing Manager at the end of 2019 and therefore

the branding process started a bit late. He noted that

Representation and Affiliation was one of the main drivers

of the increase in expenses and accounted for $0.94 Million

or 2% of the Credit Union’s cost.

Continuing his report, he stated that Assets for the Credit

Union increased by $640.98 Million or 15.12% of Total

Assets. Total Assets moved from $4.2 Billion to $4.8 Billion.

The main driver for the increase he noted, was the increase

in loans to members, as well as the revaluation of assets at

37 Lady Musgrave Road and 65¾ Half-Way Tree Road.

Members Voluntary Shares increased from $1.26 Billion to

$1.32 Billion due to increased savings from members,

Permanent Share increased marginally from $75.01 Million

in 2018 to $75.41 Million in 2019 and Loans to Members

increased from $2.70 Billion to $2.91 Billion, an increase of

8.08%. Members Savings and Deposits increased from

$1.94 Billion to $2.01 Billion in 2019 and Institutional

Capital, he noted, stood at 16.15%. The Treasurer reported

that Surplus for 2019 was $57.24 Million compared to

$71.62 Million in 2018. He stated that the decline in the

Surplus was as a result of the reduction in investment rates

that impacted the Credit Union in 2019.

Allocation of Revenue

The Treasurer stated that 34% of the revenue went to

Personal Cost, 25% was allocated to Administrative Cost,

2% to Marketing, 6% to Representational Cost, 19% to

Financing Cost, 2% to Impairment Cost with 12% remaining

as Surplus. Accounting for the sources of the revenue, the

Treasurer reported that the main source was from interest

on loan to members which accounted for 75.69%,

investment, 10.9%, fees, 5.82%, property rental, 1.5% and

5.75% from other sources of income.

At this juncture, the Chairman used the opportunity to

recognize the chairpersons of the Statutory Committees,

Miss Caphanne March for the Supervisory Committee and

Mr. Cebert Mitchell for the Credit Committee. He further

advised that he and Director David Fleming were the

Delegate and Alternate Delegate respectively to the

Jamaica Co-operative Credit Union League.

Continuing his report, the Treasurer highlighted that Net

Surplus for the year was $57.2 Million. An amount of $11.4

Million was transferred to Statutory Reserve, leaving $45.7

Million as Net Income before distribution. The proposed

amount of dividend on Permanent Shares was $4.3 Million,

which represented 8% of Surplus to be distributed to

members with Permanent Shares. The Treasurer proudly

highlighted the fact that the 8% of Surplus to be distributed

to the members was one of the highest percentages to be

disbursed for 2019. He stated that $10 Million went to




A Member receives spot prize from the General Manager, Joydene Jarrett.

Institutional Capital, $3 Million to Honorarium, $1.9 Million

to Scholarship, $736,425 to Care-A-Bit, $2 Million to Branch

Upgrade, $510,000 to General Reserves and $23 Million to

Organizational Re-alignment.

PEARLS Ratios

The Treasurer highlighted that the ratios were within the

standard for the most part. Loans/Total Assets was 58.79%,

the standard was 60% to 80%; Savings Deposits/Total

Assets was 68.19%, the standard was between 70% to

80%; Institutional Capital/Total Assets was 16.15%, the

standard was 10%; Delinquency/Gross Loans portfolio, the

standard was 5%, the Credit Union reported 1.3% for the

year. The Treasurer noted that the Credit Union was well

below the standard in this area. Operating Expense/

Average Assets should be better than or equal to 8%, the

Credit Union reported 6.73% for the year and Gross

Margin/Average Assets should be greater than or equal to

10%, the Credit Union reported 6.82%. The Treasurer

pointed out that the decrease in Gross Margin/Average

Assets was due to the growth in the Credit Union’s asset

base. For Non-Earning Liquid Assets/Total Assets, the

Credit Union recorded 1.12%, the standard should be less

than or equal to one percent. The Treasurer noted that this

was achieved due to the increase in the Credit Union’s bank

and cash balance from $30.95 Million to $54.77 Million or

77% in 2019.

Conclusion

The Treasurer stated that the year was a successful one for

the Credit Union, with recorded Surplus of $57.42 Million

and growth in net loan portfolio by 8.04% while maintaining

a delinquency rate of 1.30%, as well as growth in asset

base by $641 Million for 2019. He expressed gratitude to

the members and volunteers and thanked God for His

continued guidance and protection during the year and for

the blessings.

He bestowed on the Credit Union. In addition, he also

thanked the committed management team and staff, the

Board members, the shareholders, both internal and

external auditors for their hard work, dedication and

professionalism throughout the year.




Questions/Concerns on the Treasurer’s Report

On the issue of the decrease in Gross Margin, Ms.

Caphanne March noted that the Credit Union had been

below for the past seven years and suggested that there

was a systemic problem and that the Credit Union should

seek the services of a consultant to deal with the matter.

Mr. Winston De la Haye suggested that a consultant was

not needed on the matter. Instead, he stated that the rate

of growth in the Credit Union’s assets was outpacing the

rate of income. He added that something should be done

and that some of the things were external to the entity such

as government intervention, economic factors, and the fact

that some members were not borrowing from the Credit

Union. He explained that the issue was not unique to the

Credit Union Movement, as it was an international position

wherein things were tightening up. He also noted that whilst

the PEARLS Ratio was important it was a benchmark and

that there were other ratios that the Credit Union could use.

Ms. March noted that the cost for Organizational

Realignment of $23.7 Million had taken up 52% of the

Surplus for 2019, as well as the Personnel Cost taking up

34% of the prior year’s surplus. She questioned whether an

impact analysis was done to show some projection in terms

of the Credit Union’s yearly operating expenses. The

Treasurer said that in terms of the staff cost, the Credit

Union was in the process of doing a job evaluation. He also

pointed out that the Credit Union was doing an analysis to

see the impact of the operating expenses on the Credit

Union, and at the completion of the analysis the Credit

Union would know what to do moving forward.

Mr. Winston De La Haye pointed out that in the cash flow

statement the interest expense was subtracted and that it

was also subtracted in the income statement. He said that

whatever was done in the cash flow statement the reverse

should be done in the income statement. Miss Simone.

Powell, the Auditor, said she would have to check the file in

order to give a response. The Treasurer said that the issue

could also be from a printing error. The Chairman said that

the matter will be checked and whatever the outcome the

information would be posted to the relevant document in

the Credit Union’s offices for members to scrutinize.

Mr. Winston De La Haye enquired as to the status of the

Bank of Jamaica, regulating Credit Unions. The Chairman

said that there were some areas still being discussed. He

noted that discussion was ongoing as to the Stabilization

Fund at the Jamaica Co-operative Credit Union League and

the utilization of the funds. He added that the JPS &

Partners Co-operative Credit Union was abiding by the

rules of the BOJ, and therefore would be ready for

regulations by the bank.

Adoption of Report

The Treasurer’s and Auditor’s Report was adopted on a

motion moved by Mr. Cebert Mitchell, seconded by Mrs.

Diedre Codner-Campbell.

DISTRIBUTION OF SURPLUS

The Treasurer informed the members that the Board was

recommending that the $57,235,304 in net surplus be

distributed as follows:

• Statutory Reserves $11,440,000

• Permanent shares $4,325,395

• Institutional Capital $10,000,000

• Honorarium $3,000,000

• Scholarship $1,945,968

• Care-A-Bit $736,425

• Office Upgrade $2,000,000

• Organizational Realignment $23,780,455

Motion for Approval

The Treasurer invited a motion for the Approval of the

Distribution of Surplus as recommended by the Board.

Mr. Winston De La Haye moved the motion seconded by

Mr. Christopher Spencer.




FIXING OF MAXIMUM LIABILITY

The Treasurer read the resolution dealing with the Fixing of

Maximum Liability and asked for a motion to have the

Resolution approved. The motion was moved by Ms.

Deborah Campbell and seconded by Ms. Angela Rodney.

Suspension of Standing Orders

Goodin, Maxine Gardner and Sharlene Chunnu-Brown.

The Chairman noted that Miss Gardner would not be

seeking re-election and subsequently listed the nominated

members of the Credit Committee as Nastassia Dixon,

Nicole Goodin, Sharlene Chunnu-Brown and Tricia Hay. He

stated that Mr. Cebert Mitchell would continue to serve for

one year.

The Chairman asked for a motion to have the Standing

Orders suspended in order to deal with the Nominating

Committee Report. Mr. Cebert Mitchell, seconded by Mr.

Devon Wright, moved the motion.

The Chairman invited the members to turn to Page 117 of

the Annual General Meeting booklet and referred them to

Rule 65(1) of the Credit Union’s Rule. He read the names of

the members of the Nominating Committee as Mr. Donovan

Cunningham - Chairman, Kim Robinson - Member, Mr.

Vaughn McDonald - Member, Miss Allentia Brown - Member

and Mr. Carl Grant representing Member of Staff. He

further stated that the Nominating Committee, acting in

accordance with its mandate, considered all retiring

members from the Board of Directors, Supervisory and

Credit Committees. He subsequently listed the retiring

Members of the Board of Directors as Tricia Robinson, Clive

Segree, Devon Wright, and David Fleming. He said that

Miss Natalie Sparkes was not eligible for re-election and

named Miss Deborah Campbell, Terrence Knight, Donovan

Cunningham and David Grey, as the other Directors who

would continue to serve on the Board.

For the Supervisory Committee, the Chairman noted that

members are elected to serve for one (1) year up to a

maximum of three (3) consecutive terms. All members of

the Committee save and except Mrs. Janet Morrison

Plummer, will retire at the 2020 Annual General Meeting.

He listed the composition of the Supervisory Committee as;

Corine McCalla, Caphanne March, Viris Jones-Reece, Ann

Marie Raymond and Janet Morrison-Plummer. Persons

being nominated to serve for one year were Althea Whyte-

Sutherland, Jodian Jolly, Janet Morrison-Plummer, Timain

Campbell and Diedre Codner-Campbell.

Members retiring from the Credit Committee at the 2020

Annual General Meeting were Nastassia Dixon, Nicole

President David Grey, addresses the meeting.

SUPERVISORY COMMITTEE REPORT

Ms. Caphanne March presented the Supervisory Committee

Report. She invited a motion for the report to be taken as

read. The motion was moved by Mr. Cebert Mitchell and

seconded by Mr. Clive Segree. She stated that the

Committee was the watchdog for the Credit Union and that

the Committee comprised of volunteers who were elected

at the last Annual General Meeting. She added that the

Committee’s roles and responsibilities were governed by

the rules of the Jamaica Co-operative Credit Union League

and the Rules of the Credit Union. Ms. March named the




members of the Committee and said that the election of

members to serve on the committee was done on May 11,

2019 at the Jamaica Conference Center. She noted that

the Committee held its first official meeting on June 20,

2019 and nominated members to the various positions. For

the duration of the period, she noted that the Committee

had at least one meeting per month, which accounted for

fourteen (14) meetings for the period under review.

Members of the Committee participated in a number of

workshops and training facilitated by both the League and

the Credit Union. Chief among which the members

attended were protocol sessions, internal audit techniques,

Proceeds of Crime and training in investment. She stated

that the internal audit contract with Smith and Associates

ended on October 31, 2019, and was extended to October

31, 2020. A Request for Proposal (RFP), for services was

issued on November 29, 2019 with a January 28, 2020

response deadline.

Ms. March stated that audit reviews were done to cover the

period and that the information submitted indicated that the

Credit Union was compliant in all areas of the BOJ’s

regulation. In terms of investigation, she said that the

Supervisory Committee conducted an investigation into the

alleged signature being on a withdrawal slip that was

reported as missing at the time of the audit by the auditor.

She noted that the findings indicated that the situation arose

from a miscommunication between management and the

auditors. She noted that audit reports were done monthly

for head office and bi-monthly for branches. Completed

audit reports were received from the Internal Auditor for all

branches for the one year period under review. Monthly

reports were provided to the Board based on the

Committee’s review of reports from the Auditor- Smith and

Associates.

Ms. March highlighted that for the 2020 period the work plan

was to complete members’ verification exercise, to increase

the number of branch visits, as well as to forge closer

relationship with location representatives; the purpose of

which was to assist them with any issue/s they may have.

She noted that plans were in place to execute the new

auditing services contract, to participate in special

programmes and workshops, as well as to continue the

monthly audit report reviews to ensure the Credit Union

remains compliant with the regulations, policies and

procedures.

Adoption

The Supervisory Committee Report was adopted on a

motion moved by Miss Natalie Sparkes, seconded by Mr.

David Fleming.

A member reviews the financial report.

Mr. Winston De La Haye questioned the relevance of

sending the members of the Supervisory Committee on

audit training when the members of the said Committee do

not do audit reports. He said that the Credit Union was

paying the internal auditor to do the audits. Ms. March

pointed out that the members of the Committee visited the

various branches to provide members with answers to

some of the issues they were experiencing but were not

comfortable sharing at an Annual General Meeting. She

added that the purpose of the members’ visits were to forge

closer bond with members and not necessarily to audit

them, as that was the job of Smith and Associates.




Resumption of Standing Orders

The Chairman invited a motion for the Standing Orders to

be resumed. Mr. Cebert Mitchell, seconded by Mrs. Viris

Jones-Reece, moved the motion. He subsequently invited

Ms. Sheryll Ramsay- Brown from the Registrar’s Office to

conduct the election process.

ELECTION

Mrs. Ramsay- Brown told the members that the election

process would be done en bloc, which meant that she

would be asking the members to move a motion to accept

all of the nominees from the Board of Directors, the Credit

and Supervisory Committees to be duly elected as stated

in the Nominating Committee Report. Mr. Winston De La

Haye, seconded by Ms. Corine McCalla, moved the motion.

Mrs. Ramsay-Brown subsequently asked for a motion

giving permission to the Board to select the Delegates and

Alternate Delegates to the Jamaica Co-operative Credit

Union League and any other affiliated organization. Mr.

Winston De La Haye, seconded by Mr. Cebert Mitchell,

moved the motion.

CREDIT COMMITTEE REPORT

The Chairman invited Mr. Cebert Mitchell to present the

Report. Mr. Mitchell asked for a motion that the report be

taken as read. Mrs. Diedre Codner-Campbell, seconded

by Mr. David Fleming, moved the motion. He asked the

members to turn to Page 112 of the booklet where the

report could be found. In highlighting the main points, he

stated that the Committee approved 43 loans for the period

amounting to $262 Million. Members were advised that the

Committee only review and approve members’ loans over

$4 Million. He added that the value of loans the Committee

approved for the year was just a little less than the amount

approved for the previous year.

Mr. Mitchell stated that the Credit Committee benefitted from

training in the Proceeds of Crime, Anti-Money Laundering

and Counter Financing of Terrorism.

He expressed thanks to the members for their unwavering

support and for their dedication, as well as the Board of

Directors, management and staff of the JPS & Partners Cooperative

Credit Union. He gave the assurance that the

members of the Committee were committed to continue

serving the members of the Credit Union to the best of their

abilities.

At the end of the report, Ms. Janet Morrison-Plummer

pointed out that the headings in the Loans Approved table

should be switched around. Mr. Mitchell stated that he was

in agreement with Ms. Morrison -Plummer, and noted that

it was a transposition error. He subsequently invited a

motion for the adoption of the Credit Committee Report.

David Fleming, seconded by Janet Plummer, moved the

motion.

DELEGATES REPORT

Mr. David Fleming presented the report. Before his

presentation, he asked for a motion to have the report

taken as read. Miss Natalie Sparkes, seconded by

Christopher Spencer, moved the motion. He stated that the

League Delegate and Alternate Delegate are fellow

directors of the Board who represent the Credit Union as

ambassadors to forums and conferences held by the Credit

Union Movement’s umbrella organization both locally and

internationally. Mr. Fleming stated that during 2019, David

Grey and Devon Wright were appointed in the capacity of

League Delegates, while Tricia Robinson and David

Fleming represented the Credit Union as Alternate

Delegates.

He highlighted that for 2019, there was the 2019

Convention and 78th Annual General Meeting of the

League, which was held at the Hilton Rose Hall Resort and

Spa, May 30 to June 2, 2019 had five (5) informative

workshops. He also highlighted that Delegates from twenty

five (25) Credit Unions attended. Delegates in attendance

agreed to the Proposed Distribution of Surplus of $126

Million. There were no rule changes.

Three (3) congratulatory resolutions were passed: BJ Staff

Credit Union 55th anniversary, Postal Credit Union and JTA

Credit Union both were celebrating 60th anniversaries.

First Regional Co-operative Credit Union won the O.J.

Thorbourne trophy for Mega Credit Union, JDF Co-




operative Credit Union copped the Renford Douglas trophy

for large Credit Unions and and Postal Co-operative Credit

Union won the Paul Thompson trophy for Medium-Sized

Credit Unions. PWD Co-operative Credit Union won the

John Peter Sullivan Award for Small Credit Unions

Mr. Fleming further highlighted that given the decrease in

the number of Credit Unions, the League took the decision

to combine the usual three (3) regional Board Exchanges

into one event called Board Consultation One, which was

held in the month of March. Board Consultation Two was

held on November 21, 2019. He noted that at Board

Consultation One, the matter of the MasterCard and the

debit card rollout were dealt with. At the Board Consultation

Two, delegates were provided with updates on the debit

card and other projects initiated by the League.

Continuing, he noted that the 2019 Annual Caribbean

Confederation of Credit Unions was jointly hosted with the

World Council of Credit Unions; the Conference was held

at the Atlantis Paradise Island in the Bahamas from July

28-31, 2019. A total of 1,946 Credit Union executives and

volunteers from over 57 countries attended the four-day

conference.

Director Fleming stated that the Delegates from the JPS &

Partners Co-operative Credit Union were pleased to have

served and proud to be members of the Credit Union

Movement. In addition, he stated that the Credit Union’s

Delegates were grateful for the confidence that the

members placed in them and that they look forward to

serving the members in 2020. He subsequently asked for

a motion to be moved for the adoption of the League

Delegates Report. David Grey, seconded by Devon Wright,

moved the motion.

PRESENTATION

The Chairman advised of a presentation to be made to Ms.

Natalie Sparkes who demitted office having served the

Mr. Devon Wright, Treasurer presents Natalie Sparks, Director with a farewell gift.




mandated three (3) consecutive terms. He stated that the

Credit Union thank Ms. Sparkes immensely for her yeoman

service to the Board. The Treasurer made the presentation

to Miss Natalie Sparkes.

ANY OTHER BUSINESS

Mr. Leon Ramsay told the Chairman that he went to the

Credit Union and applied for a loan with the relevant

documents and was advised by the Member Service

Representative that within three to five days he would

know whether his application was approved. He said he

went to the Credit Union after the five days and enquired

whether the loan had been approved or whether it was

denied. Mr. Ramsay said he was told that his application

could not be found and he might have to

redo the application. The Chairman, on

behalf of the team, apologized to Mr.

Ramsay for the misplacement of his

application. He asked Mr. Ramsay to

have discussion with the General

Manager in order for her to take the

pertinent information from him with the

hope to speedily address the matter. He

also asked Mr. Ramsay to give the

General Manager his telephone number

before leaving the meeting so she can

follow-up personally with him. Mr. De La

Haye requested that once the member

was eligible for the loan that it should be

disbursed on Monday September 21,

2020.

TERMINATION

Having exhausted the items on the agenda the Chairman

reminded the members of the COVID-19 protocols and

wished them God’s speed and safe travel home. He then

asked for a motion to adjourn the meeting. The motion was

moved by Mr. Cebert Mitchell and seconded by Mrs. Andrea

Thomas-Wright. The meeting was terminated at 2:50 p.m.

David Grey

President

Location Representative, Jullite Reeves shares her views with the Board.



Pictorial Highlights

JPS&PCCU Takes the Prize!

General Manager,

Joydene Jarrett collecting

the award from the

Jamaica Co-operative

Credit Union League

(JCCUL) for the Credit

Union with the “Highest

Solvency”. The award

was presented by

Ms. Andrea Messam,

1st Vice President

of JCCUL.

Virtual Gospel Concert

Jermaine Edwards made it a

“beautiful Day’ with the

performance of his hit songs.

Rondell Positive during his

energetic performance as the

Credit Union celebrated Credit

Union Week

Recording Artist, Carey Sayles

gives an inspiring performance

during the virtual concert.

Your Financial Partner for Life 21

2020 Annual Report


Pictorial Highlights (Continued)

General Manager, Joydene Jarrett shares in a light

moment with Mrs. Debbie Dunn-Ferguson of Maxfield

Park Children’s Home.

Representatives of the Credit Union (R), pose with Representatives from the

Maxfield Park Children’s Home after the presentation of two fans to the

Home.

JPS&PCCU gives Tablets to alleviate Schools’ Online Deficiencies

Mrs. Andre Maxwell, Principal of St. Mary’s

the Virgin Basic School receiving tablets

from the General Manager - Ms. Joydene

Jarrett.

JPS & Partners

gives over $3M

in Scholarships

Carl Little Scholarship Recipient,

Donelle Grant giving her reply on

behalf of all awardees.

Ms. Jennifer Williams, Principal of The

Queens School graciously accepts a

donation of tablets from General Manager

- Ms. Joydene Jarrett.

Principal of Central Branch All Age School,

Mr. Michael Sutherland, receives a set of

tablets for his school from Marketing

Manager - Pierre Wright.

Keynote Speaker, Ibrahim Konteh receives a ‘thank you’ gift

from Joydene Jarrett, General Manager



Board of Directors’ Report

stages in an effort to reduce the spread of the virus. These

new measures and protocols backed by the Ministry of

Health and Wellness and the Government of Jamaica,

meant that your Credit Union had to proactively adapt to

these radical changes if it were to thrive and grow.

Notwithstanding the economic and social turmoil, your

Credit Union remained profitable delivering a commendable

performance.

2020: YEAR OF DISRUPTION TO

NORMALCY, A WINDOW OF

OPPORTUNITY – JAMAICAN ECOMOMIC

AND BUSINESS ENVIRONMENT

The Jamaican economy began to experience high levels

of uncertainty due to the disruption to commerce, brought

about by the onset of the Coronavirus pandemic. Both

business and consumer confidence began to show signs

of decline as both sectors grappled with uncertainties,

panic and fear regarding the impact of the pandemic.

Business leaders knew they had to become proactive if

they were to survive and remain profitable. Consumers

knew that they would be facing unprecedented changes in

all areas of their lives.

Donovan Cunningham, President

“Progress is impossible without change,

and those who cannot change their minds

cannot change anything.”

George Bernard Shaw

The year 2020 will be remembered, as the year the

Coronavirus (COVID-19) abruptly disrupted lives and

livelihood. Persons were required to quickly adjust to new

ways of living, working from home, be restricted in their

movements, frequent curfews, lockdowns, reduced

operating hours, limited face to face interactions, social

distancing, wearing a mask in public spaces and frequent

handwashing were all strategies implemented at various

The Jamaican economy contracted by approximately

10.2%. This contraction is evidenced in part by the

disruptions to selected industries such as hotels and

restaurants, transportation, storage and communication.

The significant decline in travel and reduced activities at

the ports are also contributing factors to the decline in

these industries. On the other hand, the only area that

reported growth was Government services, due to the

need for increased employment which was a pre-requisite

for the implementation of several programs designed to

mitigate against the spread of COVID-19 virus.

Unemployment Rate

Prior to the pandemic, Jamaica’s unemployment rate was

at unprecedented lows. As of October 2020 the country’s

unemployment rate increased to10.7%, a 3.5% increase

when compared with 7.2% as at October 2019.



Board Of Directors Report (Continued)

Inflation

Inflation rate measures the average percentage increase in

general prices in the economy over a specific period. Low

and stable rates tend to encourage savings, investments

and growth.

Inflation rose to 6.4% compared to 6.2% in 2019. This rate

was the highest recorded since 2014.

Measures implemented by the Government to slow the

spread of the virus resulted in negative impact on the

tourism and food sectors. The Government is however

predicting that inflation will fall to approximately 5.5% by the

end of last quarter of 2021.

Interest rate

The BOJ continues to hold policy interest rate at 0.5% with

its last rate reduction being August 2019. This trend mirrors

the Government’s strategic objective of stimulating economic

growth and maintaining the 2020/2022 inflation target

between 4-6%. Economic analysts are predicting that the

BOJ will continue its low interest rate policy given that the

economy is still recovering from the financial shocks

brought on by the pandemic.

Exchange Rate

Exchange rates represents the value of one nation’s

currency versus another currency. The US dollar is the

most common exchange rate utilized by the financial

services sector. The Jamaica dollar began the trading year

at J$132.57 to US$1.00 and closed the year at J$142.65 to

US$1.00 a depreciation of 7.8%. Fluctuations during the

year ranged from a high of $150.08: US$1.00 and a low of

J$136.05: US$1.00.

Net International Reserves (NIR)

The Country’s Net International Reserve (NIR) totaled

US$3,126.13M as at December 2020. This performance is

reflecting a decrease of 1.13% when compared to

US$3.162.54M from the previous year. The BOJ’s

intervention in the foreign exchange market coupled with

outflows accounts for the reported performance.

Treasury Bills

The Government of Jamaica (GOJ) 90 and 180-day

Treasury bills declined to 0.77% and 0.86% respectively in

2020 compared to 1.32% and 1.6% the previous year.

The BOJ, in a move to ensure economic stability

implemented various proactive measures in the cash

reserve requirement for both Jamaica Dollar and foreign

currency liabilities, extending the Bank’s foreign currency

swap arrangement and offering repurchase instruments

and a bond-buying program.

The Board of Directors remains committed to providing

strategic oversight of the management of the Credit Union

and providing leadership to ensure that the Credit Union

remains adaptable amidst an evolving business

environment while continuing to provide value to you our

valued stakeholders.

BANK OF JAMAICA CREDIT UNION

REGULATIONS

The Credit Union League continues to engage in discussions

with the Bank of Jamaica (BOJ) regarding the new Credit

Union Regulations yet to be implemented. The Regulation

will see the BOJ being the designated body, authorized to

make decisions that could significantly impact the operations

of Credit Unions. The introduction of the Regulations will also

see a very radical shift from the way Credit Unions now

operate. While the League continues to assist Credit Unions

in their preparation for licensing, your Credit Union has begun

putting in place all the requisite provisions to satisfy the

licensing requirements and governance requirements.

THE CREDIT UNION MOVEMENT

League’s Financial Performance

The Credit Union Movement performed reasonably well

in its key financial indicators as well as in its operational

areas. The competitive business environment requires the

Movement to be pragmatic in its approach to being agile,

adaptable and responsive to our members ever evolving

needs.




As an early response measure to the pandemic, the League

reduced the rate of stabilization dues paid by credit unions,

approved a liquidity loan support facility to credit unions and

lowered the required liquidity asset ratio from 20% to 17%.

Your League was also very proactive in providing

assistance in the form of training and general advisory to

credit unions.

Performance of the League in its major operational areas

is detailed below

PERFORMANCE

2020 2019

Amount Growth Amount

Savings $105.82B 9.94% $96.25B

Loans $91.6B 3.58% $88.43B

Assets $137.03B 9.58% $125.05B

Membership 1,034,962 2.82% 1,006,557

Noteworthy is that all twenty-five (25) Credit Unions within

the Movement recorded growth in total savings and asset

size.

JPS & Partners Co-operative Credit Union

Limited Financial Performance

The management of the Credit Union continues to work

creatively and innovatively, operating at the most minimal

cost possible to maximize on our returns and increase our

profitability.

The year 2020 was no different albeit that we now had to

contend with the crisis resulting from the COVID-19

pandemic, low interest rates in the market and ensuring that

the team and our members remained safe and healthy.

Consequently, your credit union made several adjustments

to its operations. These adjustments included reduced

opening hours, enhanced cleaning at branch locations,

physical distancing markers placed throughout all locations,

erection of protective barriers, distribution of sanitization

items and personal protective equipment were just some of

the initiatives employed to ensure both member and

employee safety.

As your “Financial Partner for Life”, your credit union sought

and found ways and means to support you during this

extraordinary pandemic. Members who had suffered job

losses or reduction in salary were offered loan moratorium

for up to six (6) months. The opportunity was also provided

for further extensions if required. You, the loyal members

who benefitted from the moratorium in all instances made

good on your payment commitment, long before the period

had expired and we commend you for this laudable action.

Members were also introduced to debt consolidation or

extension in their loan repayment period.

The Credit Union also introduced the Quik Loan in April.

This facility was a speedy, low interest, hassle free loan

provided to members up to a maximum of $150,000.00. The

facility was welcome by our members

2020

to the extent

2019

that the

target set was exceeded. Growth Amount

Tremendous S improvements were made to our online and

mobile banking applications, all in an effort to provide you

with service from the comfort of your home.

Save and except for loans and membership, our operational

result represents a marked improvement over year 2019.

Our key financial Gross performance Loan indicators Delinquent are outlined Delinquency below.

E

FINANCIAL PERFORMANCE

2020 2019

$M

$M Growth %

Shares 1,418.38

1,318.62 7.57%

Deposits 2,094.08 2,009.07 4.23%

Loans 2,773.69 2,868.74 (3.31%)

Total Assets 5,164.88 4,882.83 5.78%

Net Surplus 77.11 54.24 42.16%

Institutional Capital 751.47 725.45 3.59%

Membership 11,938 13,946 (14.4%)

In spite of the challenges, the Credit Union was able to

record a net surplus of $77.11M which represents a 42.16%

increase over the $54.24M made the previous year.

D

E




P

2020 2019

Growth Amount

Total Assets grew by 5.78% moving from $4.88B in 2019

to S $5.16B. Growth in our investment areas accounted for

the reported performance.

Shares and deposit portfolios recorded modest growth of

7.57% and 4.23% respectively. While the compulsory

savings attached to some of our loan products coupled

with marketing efforts to include a savings seminar

contributed to the growth, we saw where some members

especially those who suffered job losses and salary cuts

making withdrawals to satisfy their personal expenses.

Our loans portfolio experienced a decline of 3.31% versus

the 8.2% growth recorded in the prior year. This decline

in the portfolio is a first for our credit union in several years.

This performance was attributable to a number of external

factors stemming from the onset of the pandemic which

caused tremendous anxiety in the Jamaican market,

especially within the first several months where persons

including our members experienced salary cuts, wage

freeze, and reduction in working hours or even job losses.

These factors saw members’ total loan repayment

exceeding loan disbursement.

Our loan amnesty on charged off loans continues. Our

members are afforded the benefit of a reduction in accrued

loan interest. This initiative provides our members with

the opportunity to liquidate their debts and improve A their

credit ratings at the same time.

Members continue to benefit from our Loyalty Program

which allows them to benefit from a 1% reduction in

interest paid and a 1% increase in interest earned on

some investment.

Members continue to benefit from our risk based lending

opportunities. Members with high debt ratios are still able to

access loans from their credit union based on assessment.

The membership base declined by 14.4% to 11,938 when

compared with a base of 13, 946 in the previous year. This

decline was attributable to the culling of the Credit Union

membership database and our inability to embark on

some of the planned strategic initiatives to grow the

membership base. Notwithstanding, our employees along

with our location representatives and other volunteers

continue to push through the many challenges to get

others to join our family.

AS OUR FINANCIAL PARTNER

Partnering with us for Delinquency Control

DELINQUENCY MANAGEMENT

Year Gross Loan Delinquent Delinquency

Ending Portfolio Loans Ratio

2020 $2.817B $43.825M 1.90%

2019 $2.92B $38M 1.30%

Prudent delinquency management continues to be a

strategic priority for the Credit Union. This strategic focus

enabled the Credit Union to achieve the above delinquency

ratio of 1.90% as at the end of 2020. This ratio is below the

target set of 3% and well below the industry standard of 5%.

IFRS 9 – EXPECTED CREDIT LOSS (ECL)

Throughout the year 2020, the Credit Union maintained an

ECL provision below 2% of the loan portfolio of $2.773B

(after provisioning). This ratio equates to an average

provision of $42.24M.

LEAGUE AWARD –

2020 HIGHEST SOLVENCY AWARD

In 2020 the League awarded JPS & Partners Credit Union

the 2019 Highest Solvency Award among medium size

Credit Unions. A solvency ratio measures how well a

company’s cash flow can cover its long-term financial

obligations or debt. This ratio is a key matrix for assessing

the financial health of a company and can be used to

determine the likelihood that a company will default on its

debt. We are pleased to advise that management continues

to manage your resources prudently.




WORKING WITH A COMPETENT STAFF

COMPLEMENT IN PLACE

As your “Your Financial Partner for Life” the team is

dedicated to using our core values of Integrity, Trust,

Service, Accountability and Prosperity to fulfill this vision.

Our team members continue to benefit from training and

developmental courses covering a wide variety of

disciplines. During the year 2020 we had to embrace the

new norm of training being provided. Face to face training

was replaced with electronic meetings utilizing the ZOOM

platform as the primary source. This new norm which came

at a low cost saw the Credit Union being able to provide

more training opportunities to team members. Team

members benefitted from over twenty five (25) training

seminars and workshops facilitated by the League and

other external facilitators.

All staff sat and were successful in all six (6) required

examinations administered in the areas of Proceeds of

Crime (POCA), Anti-Money Laundering ACT and the

Terrorism and Prevention Act via the CDP online platform.

Salary and benefits negotiation for the 2020-2022 contract

period were deferred pending the completion of the job

evaluation exercise undertaken. Discussions have

commenced with the Union and Staff Representative. It is

expected that conclusion would have been be achieved by

the first half of 2021.

Despite our annual staff trip, which is geared towards team

building being cancelled, team members employed

alternate means during the year to build camaraderie. Such

initiatives include various staff “after work jam” and games

evening.

We experienced turnover of staff during the year which

ultimately led to new staff joining the team. We bid goodbye

to stalwarts and welcomed new faces across the branches.

Joydene Jarrett, MBA

Antoinette Robinson, MBA

David Goodlitt, BSc

Natalie Murray, MBA

Pierre-Anthony Wright, MBA

Sandra Robinson-Brown, BSc

Kamoy Clarke, BSc

Marjorie Richards-Johnson, MBA

Carl Grant, MBA

MANAGEMENT TEAM

CORPORATE GOVERNANCE

General Manager

Chief Accountant

Operations Manager

Credit Manager

Marketing Manager

Risk & Compliance

Manager

ICT Manager

Branch Manager

Ewarton

Branch Manager

Kirkvine

A committed and dedicated team of nine (9) volunteers

serves as Directors on the Board of the Credit Union. They

are accountable for the overall strategic direction and

governance of the institution. These duties and

responsibilities are discharged through Board and

committee meetings and by way of general communication

and advisories. To ensure that these fiduciary

responsibilities are discharged at the highest level, the

Board through the Nominating Committee ensures that

Directors nominated to serve are equipped with the right

competencies, skills and experience to effectively undertake

their assigned responsibilities and roles.

Annually Directors are required to complete a Board

Evaluation questionnaire. The overall objective of the

questionnaire is to gain insight on how well the Board

members performed in the opinion of their peers. The

information is used to guide the Board on the areas which

require improvement. Directors are also required to

annually complete a Compliance and Code of Ethics

Questionnaire. The Board and Statutory Committee

members are also mandated to annually attend the

Proceeds of Crime and Anti-Money Laundering Training

facilitated by the Credit Union.




The Board as part of its strategic direction, annually host a

retreat to deliberate and assess

2020

the past

2019

year’s

performance and to approve the goals

Growth

and strategies

Amount

for

the new financial year.

S

The meetings of the Board are held on a monthly basis

where the operations are discussed. Attendance at these

Board meetings often serves as an indicator of the

availability of each volunteer to serve.

BOARD TENURE AND COMPOSITION:

Subsequent to the convening of the 65th Annual General

Meeting in September 2020, the Board held its first Board

of Directors meeting and elected a new executive team

comprising the following:

Donovan Cunningham

David Fleming

Deborah Campbell

Dacia Barnes-Young

Tricia Robinson

Clive Segree

President

Vice President

Treasurer

Assistant Treasurer

Secretary

Assistant Secretary

Board meetings held subsequently were in the form of

hybrid meetings. This was all in an effort to ensure

compliance with the Disaster Risk Management Order

imposed by the Government of Jamaica and that the

COVID-19 protocols were observed. Our robust

information technology system facilitated this seamless

transition.

During the year, the Board established seven (7)

committees comprising Finance and Planning with

Delinquency as a Sub Committee, Merger, Human

Resource, Infrastructure, Member Relations, Information

Technology and Risk and Compliance. Each committee is

chaired by a sitting member of the Board of Directors.

The Committees perform their assigned functions on behalf

of

Y

the Board as

Gross

per

Loan

their terms of

Delinquent

reference.

Delinquency

E

The Board of Directors also participated in the yearly

refresher of Anti-money laundering and the proceeds of

Crime Act (POCA) training. Training in Corporate

Governance was also introduced.

In keeping with the prescribed term limits for volunteers to

serve, Ms. Natalie Sparkes demitted office at the 65th

Annual General Meeting. The Board of Directors,

Management and Staff of the Credit Union utilizes this forum

to thank Ms. Sparkes for her stellar leadership, strategic

guidance, insights and contribution during her term in office.

ATTENDANCE AT BOARD MEETINGS

ATTENDANCE

Directors Position Possible Actual Excused

Donovan Cunningham President (effective September 2020) 11 10 l

David Fleming Vice President 11 10 1

Deborah Campbell Treasurer 11 11 -

Dacia Barnes-Young Assist. Treasurer (effective September 2020) 3 2 1

Tricia Robinson Secretary 11 11 -

Clive Segree Assist. Secretary 11 11 -

David Grey Director 11 8 3

Terrence Knight Director 11 10 1

Devon Wright Director 11 10 1

Natalie Sparkes Director 8 6 2




OPERATIONAL HIGHLIGHTS

GOOD GOVERNANCE AND RISK

MANAGEMENT

The Risk and Compliance committee provided strategic

oversight and guidance in the area of risk management to

ensure that the management team was diligent in its

continuous efforts of ensuring that all requisite systems,

policies and procedures were in place to prevent, detect

and mitigate against all levels of risk exposure of the Credit

Union and that these policies and procedures were

renewed in a timely manner. The Committee is also

charged with the responsibility of ensuring that the Credit

Union’s readiness for the soon to be implemented Bank of

Jamaica supervision as well as the continued strengthening

of internal controls remains a priority.

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 risk areas

across branches and departments. During the year, the

management team documented and implemented mitigating

actions to effectively control risk within the Credit Union.

Review of Internal Audit Reports

Internal audit functions are outsourced. Audits are

undertaken monthly for Head Office and bi-monthly for the

Branches. Reports on areas audited are submitted to the

Board and members of the Supervisory and Risk and

Compliance Committees for deliberations and subsequent

implementation of the recommendations.

Enjoying the Benefits of our Technological

Improvements

Since the introduction of the first COVID-19 (coronavirus)

case in Jamaica in March 2020, the ensuing months that

followed, saw a steady increase in demand by our members

for improved business efficiency and the ability to conduct

transactions online and digitally without the need to

physically visit our branches. As such your credit union

responded proactively.

During the year we were able to achieve the following:

Online Membership Application

Our Online Membership Application which will afford new

and prospective members the opportunity and option of

completing their membership application fully online is now

in the testing stage. Members will also have the option of

submitting the requisite supporting documents electronically

as well as signing via an electronic signature. This new and

innovative way of becoming a member will be launched in

the last quarter of 2021.

Membership Update Form

Members seeking to update their contact information can

visit the Credit Union website and complete their

membership update form.

Enhancements to Online Banking

The following additional features will be introduced on our

Online banking platform:

• Third party transfers

• Online loan applications – on a phased basis, members

will have the option of applying for selected loan

products using our online banking platform.




Upgrading of IT Infrastructure

The ICT department continues to monitor and undertake

requisite upgrades of all credit union equipment and

software on an on-going basis. Specific projects that were

completed during the year include:

• Network/Domain upgrades.

• Additional security features were deployed in our

environment to further secure our data.

• Server upgrades, and general upgrades to our

networking equipment.

• Emortelle features upgrades.

• Continued upgrades to our core banking platform to

further enhance security and data integrity.

• Completed a comprehensive audit to ensure compliance.

• Improvement to our daily back up facility

• WI-FI installation at all branches - The office procured

and installed multiple wireless access points at all

Credit Union branches to enable our members to

access the internet via our Branch Wi-Fi while on the

premises conducting their business.

CREDIT UNION WEEK CELEBRATIONS

Globally, the month of October is celebrated as Credit Union

month. The year 2020 was no different as we celebrated

Credit Union week October 11 – 16th under the theme

“Inspiring Hope for a Global Community.” What was

different however, was the virtual execution of the usual

face to face week of activities – a first for the credit union in

its 65 years of existence. The virtual activities included:

• Special Video Feature highlighting our 65 years of

partnering with you our members,

• Gospel Lunch Hour Concert: In keeping with the theme

of inspiring hope, the management team thought it was

appropriate to host a gospel concert amidst the

uncertainty and despair brought on by the COVID-19

pandemic The gospel concert is currently available on

the Credit Union’s YouTube Channel for viewing at your

convenience.

• Savings Webinar: Our members were treated to a

savings webinar via ZOOM meeting. Topics covered

included: the four (4) rules to follow for a budget, how

to prioritize items on your budget and four (4) rules for

saving and investing.

WE SUPPORT THE EDUCATIONAL

PURSUITS OF YOUR CHILDREN –

OUR YOUTH SAVERS

The pandemic did not deter your Credit Union from

continuing to assist our members and their children in their

educational pursuits. Forty-five (45) youth recipients of

the Primary Exit Profile (PEP) bursary and three (3) youth

recipients of the Central Branch All Age School all benefitted

from bursaries valued at $12,500.00 during the year to

continue in their quest for education. The scholarship is

renewable for each school year up to the fifth form level

providing that the child maintains at least a ‘B’ average. We

continue to partner with the Queen School by providing a

bursary of $12,500.00 to a Treasure chest youth saver.

In addition to the bursaries presented, one lucky high school

graduate entering tertiary institution was awarded the Albert

“Berti” Morris Scholarship. The scholarship is named in

honour of one of the founding fathers of the Credit Union,

Albert Morris. The grant is valued at a $150,000.00 per year

for three years and is given to a member or the child of a

member pursuing studies at a recognized tertiary institution.

WE CARE!

WE GIVE BACK TO THE COMMUNITY

The Credit Union continues to demonstrate social

responsibility. While our core business is serving the

financial needs of our members, of equal importance is also

the need to serve the health and social needs of our

communities. Each year, the Credit Union look for different

ways to give back and to demonstrate that we care.

During the year the Credit Union made several donations

which included:

• Gifting of a wheelchair to a longstanding credit union

member




• Donation of fans to the Maxfield Park Children’s home.

• Donation of a total of seventeen (17) tablets shared

among our partnering schools being The Queen

School, St. Mary the Virgin Basic School, Polyground

Basic School and Central Branch All Age School.

These schools were gifted with the items to assist

students as they transitioned from the traditional face

to face learning environment to a completely new and

novel virtual learning space.

Health checks

Our free monthly health checks and advice to our members

had to be temporarily suspended due to the pandemic

CARE –A-Bit Fund

Our Care -a -Bit fund continues to enable us the opportunity

to provide financial support 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 qualified

member. Members can only benefit once from the fund.

Given the onset of the pandemic and the need for all

persons to wear a mask and practice frequent handwashing

and sanitization, your Credit Union made the decision to

provide members with these protective equipment during

the year from this fund – a departure but necessary

deviation from the usual purpose for use of the fund.

THE WAY FORWARD

As we conclude the roll-out of the 3-2-1 growth plan

presented to the Board of Directors by the management

team in December 2019, the year 2022 will be the third and

final year of this plan. As such we will be increasing our

focus on achieving the following:

• Improved annual loans growth,

• Improvement on the areas which significantly impact

our annual growth ratio

• Full implementation of a sales culture within the

organization.

• Continuous embracing and introduction of new

technology while improving on existing ones

As Credit Unions prepare to be regulated by the BOJ, your

Credit Union will continue to take all the necessary steps to

assure it readiness for licensing.

Notwithstanding the economic challenges brought on by the

pandemic, for 2022 and beyond, the Credit Union will focus

its attention on additional strategies designed to ensure the

continued improvement of its financial health and viability

as a going concern. These additional areas of focus will

include:

• Robust improvements and upgrades to our

technological platform thus enabling our members to

bank seamlessly with us.

• Ensure that the Credit Union is licensed for the

distribution of MasterCard services thus enabling our

members to access more benefits using our Access

Plus card.

• Continued improvement to our operational efficiencies.

• Continue to design and provide products and services

that will empower our several stakeholders to

successfully navigate this pandemic and emerge as

winners.

• Implement an integrated and structured training and

development for all staff and volunteers

CONCLUSION

We remain committed to being our members Financial

Partner and will continue to focus on value creation in the

development of all our products and services for our

members.

On behalf of the Board of Directors, I express sincere

gratitude to you, our valued members for your commitment

and dedication to the Credit Union over the years. I would

also like to recognize and thank the following entities and

persons:

• The Almighty God for his steadfast guidance and

assurance, the anchor that keeps us steadfast.




• Management and staff of the Credit Union for their

commitment and dedication.

• Board, Management and staff of our partner

companies; Jamaica Public Service (JPS), West

Kingston Energy Partners and Jamaica Private Power

Company, UC Rusal, Tax Administration of Jamaica

(TAJ) National Energy Solutions Limited (NESol) and

Digicel Jamaica for their secured and invaluable

partnership.

• Crowe Horwath Jamaica Chartered Accountants,

external auditors and Smith and Associates, internal

auditors.

• Our attorneys – Messrs Samuda & Johnson and

Richards and Richards.

Co-operatively Yours

• Volunteers, Committee Members and Location

Representatives for their immeasurable effort and

support through the years.

• The Credit Union League and its several subsidiaries,

CUNA Caribbean Jamaica Ltd., Jamaica Co-operative

Insurance Agency (JCIA), QNET and the Registrar of

Co-operatives and Friendly Societies for their continued

support.

Donovan Cunningham

President



Our Directors

Donovan Cunningham

President

David Fleming

Vice President

Deborah Campbell

Treasurer

Dacia Barnes-Young

Assist. Treasurer

Tricia Robinson

Secretary

Clive Segree

Assist. Secretary



Our Directors (Continued)

Terrence Knight

Director

Devon Wright

Director

David Grey

Director

Dacia Barnes-Young

Assist. Treasurer

Tricia Robinson

Secretary

Clive Segree

Assist. Secretary




not in congruence with their strategic budgets, radical

shifts also had to be made in the operational strategies

set for the financial year. Individuals also experienced

some amount of variability in their levels of disposable

income due to:

(i) Loss of job or reduced working hours;

(ii) Increasing cost of utilities and some basic items,

brought about by the general changes in oil prices;

(iii) Devaluation of the Jamaican dollar.

The outturn for inflation at the end of the year was

6.20%. Interest rates remained at an all-time low of

0.5% due primarily to the Bank of Jamaica’s policy of

growth stimulation and inflation targets.

COVID-19 PANDEMIC

Deborah Campbell, Treasurer

It is with pleasure that I present the Treasurer’s Report

of the JPS & Partners Co-operative Credit Union Limited

(JPS& PCU) for the year ended December 31, 2020.

ECONOMIC OVERVIEW

For 2020, your Credit Union operated in a market

environment where the economic variables were

dictated by the global fallout from the COVID-19

pandemic.

The economy was characterized by fluctuating levels of

business and consumer confidence. Businesses had to

contend with fluctuating profitability levels, which were

The COVID -19 pandemic underscored the importance of

embracing change, proactiveness and being innovative.

Measures implemented by the Government of Jamaica

to curtail the spread of the virus negatively affected most

businesses. The economic outlook reflected a degree of

uncertainty and the period for the commercial impact

remains unpredictable. The Board and Management have

assessed the risks and opportunities associated with the

economic outlook and are closely monitoring the situation

while executing strategies designed to reduce the

potential negative impact on the JPS&PCU. As a result,

an adjustment was made to the forward-looking indicators

for expected credit loss. This adjustment resulted in an

increase in the loan loss provision.

Vaccine approvals have raised hopes of an economic

turnaround. The speed of recovery is conditional to: (i)

the accomplishment of the vaccine program and (ii)

repeated waves and new variants of the virus. Despite

these challenges, the Jamaican economy is expected to

grow by 5.2% in 2021.

Notwithstanding the pandemic and the competitive

nature of the financial landscape, your Credit Union

performed well in comparison to the Movement.



Treasurer’s Report (Continued)

FIVE (5) YEAR FINANCIAL PERFORMANCE 2016 - 2020

The table below highlights the Credit Union’s performance over the last five (5) years.

2020 2019 2018 2017 2016

$M $M $M $M $M

SHARES 1,418.38 1,318.62 1,262.52 1,247.13 1,208.67*

DEPOSITS 2,094.08 2,009.05* 1,941.13 1,964.16 1,915.26*

LOANS 2,773.69 2,868.74 2,651.75 2,655.58 2,445.36

TOTAL ASSETS 5,164.88 4,882.83* 4,238.84 4,223.63 4,110.37

SURPLUS 80.11 57.24 71.62 41.96 30.61

INSTITUTIONAL CAPITAL 751.47 725.45 691.21 676.96 672.77

MEMBERS 11,938 13,946 14,947 14,196 13,796

* Restated

The decline in membership is the result of a culling

exercise undertaken to remove duplicate accounts and

accounts with balances below the minimum criteria for

membership.

FINANCIAL PERFORMANCE

SURPLUS

Surplus before honorarium of $80.11M was achieved. This

performance is reflecting an increase of 40% above the

$57.24M reported in the prior year. Management of

financial expenses, operating costs, loans disbursed and

prudent delinquency management all contributed to this

level of performance.

With the required 20% or $16.02M transfer to Statutory

Reserves, approximately $64.09M will be available for

distribution. The major items from our financial statements

are highlighted below:

$M

90.00

80.00

70.00

60.00

50.00

40.00

20.00

30.00

10.00

0.00

SURPLUS $M

2016 2017 2018 2019 2020

INTEREST INCOME

The overall Interest income of $400.23M reflects a

marginal increase of 0.93% or $3.69M over 2019.

$M

399.49

INTEREST INCOME ($M)

414.58

403.84

396.54

400.23

2016 2017 2018 2019 2020

The factors that contributed to this achievement are as

follows:

1. Increase in loan income by $9.09M or 3% when

compared with the 2019 performance. The negative

impact of the COVID-19 in this critical area of our

operations saw our loan repayments and transfers

exceeding our loan disbursements despite the office

employing significant efforts in convincing our

members not to repay earlier than was projected nor

transfer their loans to other institutions who were

enticing them with lower rates of interest.




2. Increase in liquid investments. This allowed the Credit

Union to invest more in short term instruments at

attractive negotiable rates.

3. Continued redundancies within the energy and

telecommunications sectors. These sectors account

for a large chunk of our borrowing membership.

4. Reduction in the returns received on the financial

investment portfolio. This decline was due mainly to

the general reduction in interest rates in the financial

arena, consistent with the government’s inflationary

and economic growth targets.

Despite this limitation, prudent management and

aggressive bargaining with our investors for rates higher

than that which was offered, also contributed to the

performance of the investment portfolio.

The Credit Union continues to maintain its investment

portfolio in government instruments, the Credit Union Fund

Management Company (CUFMC), equities market and

other investment houses considered to be safe and sound.

SOURCES OF REVENUE

Loan interest income remains our principal source of

revenue and accounted for 78.07% of total revenue. This

performance is an indication of our continued focus to

provide loan products to meet the needs of our members,

9.78% was derived from investment income, 5.39% from

fees and 6.76% from other sources.

REVENUE SOURCES 2020

OTHER

4.74%

RENTAL

2.01%

FEES

5.39%

INVESTMENTS

9.78%

LOAN

INTEREST

LOAN

INTEREST

78.07%

INVESTMENTS FEES RENTAL OTHER

Our decision to grant waivers on fees charged given the

impact of the COVID-19 pandemic on members’ income

saw the Credit Union recording a decline of 10% in noninterest

Income when compared with prior year.

EXPENSES

The social and economic effect of the pandemic on our

members and our proactive response in the form of cost

containment resulted in the ratio of expenses as a

percentage of gross income being reduced from 87% in the

previous year to 82% in 2020.

• Interest Expense decreased by $9.72M or 11.36%.

The Interest expense on Voluntary shares increased in

tandem with the growth of the portfolio. The decline in

the Partner Plan portfolio, contributed to the reduction

in interest expense paid to members.

• Operating Expenses decreased by $13.49M or by

4.40% from $306.79M in 2019 to $293.29M in 2020.

Cost containment measures, which were successfully,

implemented accounts for this achievement. The main

contributing factors accounting for the decrease are as

follows:

• Administrative Expenses decreased by $2.77M or

from $114.60M to $111.83M. The contributing factors

were:

1. Telecommunications which experienced a decline

of 35%;

2. Professional and Consulting fees reflected a

decrease of 69%;

3. Costs associated with the procurement of

Members refreshment decreased by 72%.

4. Overall, cost containment measures implemented

in other general administrative areas of expenditure.

• Marketing & Promotion Expenses decreased by

$4.92M or from $9.82M to $4.90M. Planned face to

face marketing and promotional activities were

instead undertaken virtually and electronically at

significantly lower costs. This was instituted in line

with our COVID-19 Business Continuity Plan

implemented in the month of March which sought to




ensure that we remain focused on delivering value to

our members, staff and stakeholders during the

pandemic.

• Representation and Affiliation Expenses decreased

by $7.84M or from $27.78M to $19.93M. The Credit

Union benefitted from a reduction in certain regulatory

expenses paid annually to the League.

Planned face to face meetings and seminars by

organizations to include the League were instead

conducted virtually for the most part thus contributing

significantly to the decline in this area of our operations.

• Personnel Expenses increased marginally by $2.05M

or from $154.59M to $156.63M. Expenses include

salaries and allowances, gratuity

payments, education and training and

retirement benefit expenses. Salary

1%

increases were deferred to 2021

pending the completion of the Job

Evaluation exercise. The graph below

depicts the overall performance of 25%

operating expenses over a five year

period.

We continue to apply strategic initiatives to adapt to the

changing needs of our members and to improve our

internal controls. The Board and Management will remain

vigilant in ensuring that our operating costs are contained

as best as possible thereby ensuring that the Credit Union

remains viable and profitable.

ALLOCATION OF REVENUE

The chart below indicates that revenue was utilized as

follows:

1% for impairment provisioning, 1% for marketing,

4% for representational costs, 17% for interest expense,

25% for administration, 34% for personnel costs, and 18%

remaining as Surplus.

REVENUE ALLOCATION 2020

69%

18%

17%

34%

The graph below depicts the overall

performance of operating expenses.

4%

1%

R Administration

Impairment Prov. Representation

Financial

Marketing

Surplus

Personnel

($M)

310.00

300.00

OPERATING EXPENSE ($M)

306.79

290.00

292.30

293.29

280.00

281.33

270.00

273.17

260.00

250.00

2016 2017 2018 2019 2020




BALANCE SHEET

Total Assets increased by $282.06M or 5% moving from

$4.88B in 2019 to $5.16B in 2020. The increase was due

to the net inflows from members’ deposits that was used

to achieve significant growth in the Liquid Assets portfolio.

This is reflected in the graph.

2020

2019

2018

2017

2016

2015

- 200 400 600 800 1,000 1,200 1,400 1,600 1,800

2

LOAN PORTFOLIO

LIQUID ASSETS & FINANCIAL INVESTMENTS

MEMBERS’ SHARES AND DEPOSITS

At the end of the year, the savings portfolio of $3.51B was

$184.77M higher than the $3.33B reported for 2019. The

following are the contributing factors for the growth in the

members’ shares and deposits portfolios:

(i)

(ii)

Compulsory savings requirement

for both the QUIK and Salary

Enhancer loan products and

Amounts received from redundancy

payments was used for

investment purposes.

The loan portfolio balance recorded a decline for the

first time in many years. The portfolio stood at

$2.77B in comparison to $2.87B in 2019. Loan

repayments and transfers during the review period

outpaced loan disbursements. Notwithstanding, the

several loan promotions especially our QUIK Loan

product which was strategically designed, attractively

packaged and rolled out in the month of March to

assist members during the onset of COVID,

contributed greatly to the overall portfolio

performance. Our motor vehicle loan portfolio

continues to contribute significantly to the overall

loan portfolio balance.

The graph below highlights the JPS & PCU’s Loans

and Total Assets for the period 2016 to 2020.

MEMBERS' DEPOSITS ($B)

2020

2019

2018

2017

2016

0.00 500.00 1000.00 1500.00 2000.00 2500.00

Deposits

Vshares

6,000

LOAN PORTFOLIO & TOTAL ASSETS

5,000

4,000

3,000

2,000

1,000

0

2016 2017 2018 2019 2020

Loan Portfolio 2,445 2,656 2,652 2,869 2774

Total Assets 4,110 4,224 4,239 4,882 5,165




PERMANENT SHARES

The Permanent Shares portfolio increased marginally from

$62.71M in 2019 to $62.93M in 2020. The addition of new

members accounts for the increase.

LOANS DELINQUENCY

As the pandemic intensified and we began to see the

impact on our borrowing members, Management had to

proactively deploy their analytical and problem solving skills

to develop successful strategies and approaches to

manage delinquency. The strategies included proactively

communicating with our sponsor companies and borrowing

members to determine the impact of the pandemic on their

businesses, industries and salaries. Loan moratoriums

were granted to address temporary setbacks being

experienced by our members. Consolidations and loan

restructuring also formed a part of the mix of strategies used

to ensure that this critical area of operations was stringently

and prudently managed.

Recorded loan delinquency ratio for 2020 was 1.90% of the

portfolio compared to 1.30% in 2019. This ratio remains

well within the benchmark of 5%.

Management remains vigilant in its efforts to maintain low

levels of delinquency whilst increasing the rate of growth of

the loans portfolio.

We continue to encourage members, who may be facing

difficulties in meeting their loan obligations to dialogue with

us in order for solutions to be agreed on.

LOAN LOSS PROVISIONING

The provisioning for loan loss continues to be adequate to

cover potential losses. The provision for Loan Losses,

decreased from $11.01M in 2019 to $6.33M in 2020.

The Credit Union was 100% compliant with the PEARLS

standard of 5% as well as the provision required in

accordance with the International Financial Reporting

Standard (IFRS 9). As per the requirements of the IFRS 9

Standards, the Credit Union measured the Expected Credit

Losses (ECL) for loans to be $41.47M compared to

$45.85M for 2019.

INSTITUTIONAL CAPITAL

Institutional Capital, (inclusive of permanent shares) stood

at $814.40M, which is 15.77% of Total Assets. The

Institutional Capital is an indicator of the Credit Union’s

ability to withstand any adverse economic fallout. This ratio

is above the PEARLS requirement of 10%

PEARLS RATIO ANALYSIS

As a means of assessment, the Credit Union’s performance

exceeded some of the key financial indicators as measured

against the P.E.A.R.L.S. standards.

The increase in the asset base in 2019, due to the

revaluation of the properties at Half Way Tree Road and

Lady Musgrave Road has contributed to the downward

movement in the key performance areas relative to Total

Assets.

PEARLS Ratios Standard 2020 2019 2018 2017 2016

% % % % % %

Net Loans /Total Assets 60-80 53.70 58.75 62.56 62.87 59.49

Savings Deposits/Total Assets 70-80 68.01 68.19 75.58 76.03 76

Institutional Capital/Total Assets (C) >=10 15.77 16.14 18.08 17.80 16.37

Total Delinquency/Gross Loans Portfolio <=5 1.90 1.30 1.51 2.29 2.07

Operating Expense/Average Assets 5.84 6.73 6.65 7.01 6.99

Gross Margin/Average Assets *C>=10 6.46 6.63 7.61 6.96 7.78

Non - Earning Liquid Assets/Total Assets <1 1.23 1.12 0.73 3.54 1.85

* amount needed




DIVIDEND DECLARATION

The Board of Directors is recommending a dividend

payment of 10% on the Permanent Shares balance of

each member on record as at December 31, 2020.

DISTRIBUTION OF SURPLUS

The Board of Directors is making the following

recommendation to the Meeting with respect to the

appropriation of the 2020 Surplus.

Net Surplus 80,114,751

Transfer 20% to Statutory Reserve -16,022,950

Net Income Before Distribution 64,091,801

Proposed Distribution

10% Dividend on Permanent Shares 5,385,593

Loan Rebate on Interest Paid 5,334,981

Institutional Capital 10,000,000

Computer Hardware & Software Reserve 12,000,000

Honoraria 4,000,000

Scholarship Reserve 2,500,000

Branch Office & Infrastructure Upgrade 12,000,000

Organizational Re-alignment 10,000,000

Undistributed Surplus 2,871,227

64,091,801

CONCLUSION

$

ACKNOWLEDGEMENTS

We give thanks to God for His continued guidance and

protection during the year and the blessings He has

bestowed on our JPS & PCU. The Treasury thanks and

commends the Management and staff for their hard work

and dedication towards the continued success of the

Credit Union .

I thank my fellow members of the Board of Directors and

the credit union members, for having given me the

opportunity to serve as your Treasurer. It has been an

honor and a privilege to function in that capacity. Thank

you, our members, for the continued business and support

that you have given to your JPS & PCU, and entrusting

your confidence in us, the Board of Directors and

Management, in serving you and we hope to continue to

be deserving of your confidence.

To all the stakeholders including volunteers who

consistently apply themselves to the JPS & PCU’s

success, I thank you.

I also thank both the Internal Auditors – Smith and

Associates and our external auditors - Crowe Horwath, for

their professionalism throughout the year.

Deborah Campbell

Treasurer

This year was another successful one for the JPS & PCU

as we:

• Recorded a Surplus before honorarium of $80.11M

• Grew our asset base by $282M

With foresight and vision, 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.




INCOME & EXPENDITURE

GROWTH PERCENTAGE

2019 2020

REDUCTION CHANGE

$ $ $ %

OUR INCOME WAS EARNED FROM

346,572,333 INTEREST ON MEMBERS' LOANS 355,665,416 9,093,083 3%

49,968,396 INTEREST ON INVESTMENT 44,564,177 (5,404,219) -11%

61,494,128 OTHER INCOME 55,332,283 - 6,161,845 -10%

458,034,857 455,561,876 (2,472,981)

OUR COSTS TO OPERATE THE CREDIT

UNION WERE:

68,427,915 INTEREST ON MEMBERS' SAVINGS 59,364,029 (9,063,886) -13%

17,117,351 OTHER FINANCIAL COSTS 16,461,595 (655,756) -4%

27,777,734 REPRESENTATION & AFFILIATION 19,933,277 (7,844,457) -28%

114,596,180 ADMINISTRATION 111,826,652 (2,769,528) -2%

8,469,211 PROVISION FOR IMPAIRMENT 6,326,957 (2,142,254) -25%

154,587,770 PERSONNEL 156,634,861 2,047,091 1%

9,823,392 MARKETING & PROMOTIONS 4,899,754 (4,923,638) -50%

400,799,553 375,447,125 (25,352,428) -6%

57,235,304 LEAVING A BALANCE OF 80,114,751 22,879,447 40%

FROM WHICH WE SET ASIDE

11,447,061 20% STATUTORY RESERVE 16,022,950 4,575,889 40%

- UNDISTRIBUTED HONORARIUM - -

45,788,243 NET SURPLUS REMAINING 64,091,801 18,303,558 40%


O



5 YEAR COMPARATIVE FINANCIAL SUMMARY

2020 2019 2018 2017 2016

Income Statement $M $M $M $M $M

Interest Income* 400.23 396.54 403.84 414.58 399.49

Interest Expense 75.83 85.55 93.37 119.73 125.05

Net Interest Income 324.40 310.99 310.47 294.84 274.44

Increase / (Decrease) in Prov. For Loan Loss (6.33) (8.47) (13.96) 4.76 12.11

Net Interest Income after Provision 318.07 302.53 296.51 290.08 262.32

Non - Interest Income 55.33 61.49 56.44 44.18 41.47

Gross Margin 373.41 364.02 352.95 334.26 303.78

Operating Expense 293.29 306.79 281.33 292.30 273.17

Net Surplus 80.11 57.23 71.62 41.96 30.61

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

Total Assets 5,164.88 4,882.83 4,238.84 4,223.63 4,110.37

Members' Voluntary Shares 1,418.38 1,318.62 1,262.52 1,247.13 1,208.67

Permanent Shares 62.93 62.71 75.01 74.74 74.14

Loans to Members 2,773.69 2,868.74 2,651.75 2,655.58 2,445.36

Members' Savings Deposits 2,094.08 2,009.07 1,941.13 1,964.17 1,915.27

Financial Investments & Liquid Assets 1,663.97 1,299.08 1,380.67 1,227.39 1,364.51

Institutional Capital 751.47 725.45 691.29 676.97 672.77

T

80,114,751

64,091,801

P

1



Our Managers

Joydene Jarrett

General Manager

Carl Grant

Branch Manager, Kirkvine

Marjorie Richards-Johnson

Branch Manager, Ewarton

Antoinette Robinson

Chief Accountant

David Goodlitt

Operations Manager

Kamoy Clarke

ICT Manager



Our Managers (Continued)

Natalie Murray

Credit Manager

Pierre-Anthony Wright,

Marketing Manager

Sandra Robinson-Brown

Risk and Compliance Manager



Our Team Members

Half Way Tree Branch

Audrey Coward-Whyte

Investment Officer

Bevanny McKenzie

Credit Officer

Chavez Williams

IT Administrator

Christal Henderson

Delinquency Officer

Danielle Dyke

Member Service Representative

Dianaya Maxwell-Orr

Accountant

Faye Simpson

Accounting Officer

Javon Armstrong

Clerical Assistant

Joan Williams

Office Attendant/Bearer

Kasheena Allen

Receptionist

Kharla Davis

Member Services Representative

Kevin Embden




Our Team Members - Half Way Tree Branch (Continued)

Marcia Lewis

Credit Officer

Mark Campbell

IT Administrator

Michell Taffe

Accounting Officer (Payables)

Peter Allen

Credit Officer

Sharon Walker

Credit Officer

Sueann McAnuff

Marketing Officer

Tavia Manhertz

Securities Officer

Zurie Johnson

Marketing Officer

Anicea Massias

Archivist

Ruby Syblis


Stacey-Ann Gillespie

Clerical Officer

Kevin Embden




Our Team Members - Kirkvine Branch

Anthony Brown

Clerical Assistant

Beverly Allen


Janet Holness-Williams

Accounts Relations Officer

Kenesha Sinclair

Credit Officer

Marie Young-McNamee

Management Accountant

Sharon Wilkinson


Talisa Henry

Clerical Officer

Kenesha Sinclair

Credit Officer



Our Team Members - Ewarton Branch

Janet Russell


Judine Richards-Grant


Sonia Robinson

Credit Officer

Stephanie McDonald

Business Support Technician

Talisa Henry

Clerical Officer



Our Location Representatives

Donna Johnson

JPS Bogue

Claudette Dixon

JPS Bogue

Denise Warren

JPS Bogue

Phillipa Whyte

JPS Ruthven Road

Clover Green-Gordon

JPS Falmouth

Donna Barrett

JPS Rockfort

Carol Aitcheson

JEP

Audley Richards

JPS Mandeville

Natoya Smith

JPS Morant Bay

Andrea Thomas

JPS New Kingston

Taundria Williams

JPS New Kingston

Sidoney Vassell

JPS New Kingston

Tricia Hay

JPS New Kingston

Hortense Hall

JPS Spanish Town Road

Althea Thorpe

JPS Spanish Town

Jullite Reeves

JPS Paradise/Black River

Debourne Martin

Digicel, Ocean Boulevard

Ricky Purkiss

Digicel, Montego Bay

Rose-Marie Blake

Digicel, Montego Bay

Hyacinth Mullings

Una Bailey

JPS Twickenham Park.

Shoneika Dalling

JPS St. Ann’s Bay

Delmar Eccles

JPS White River

Haley Clarke

JPS Wilmic

Melville Mullings

JPS Savanna La Mar


Financial

Statements

AS AT 31ST DECEMBER 2019

Crowe Horwath Jamaica

Corporate Head Office

47-49 Trinidad Terrace

Kingston 5

Main 876 926 5210

Fax 876 754 7935

www.crowe.com/jm

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 ("the Credit

Union") which comprise the statement of financial position as at 31 st December 2020, the statement of

comprehensive income, statements of changes in equity, cash flows for the year then ended, and 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 31 st December 2020, and of its financial performance and its cash flows for the year then

ended in accordance with International Financial Reporting Standards (IFRS) and the requirements of the Cooperative

Societies Act.

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 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

Expected Credit Loss ('ECL') on Financial Assets

IFRS 9 was implemented by the Credit Union on January

1, 2018. The adopted standard is new and complex and

requires the Credit Union to recognize expected credit

losses ('ECL') on financial assets, the determination of

which is highly subjective and requires management to

make 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.

How the matter was addressed during the

audit

Our procedures in this area includes the

following:

▪

Obtaining an understanding of the models

used by the Credit Union for the calculation

of expected credit losses including

governance over the determination of key

judgments.

▪ 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

underlying accounting records based on a

sample basis.


Page 1a





Key Audit Matter

Expected Credit Loss ('ECL') on Financial Assets

Significant management judgement is used in determining

the appropriate variables and assumptions used in the

ECL computations, which increase the risk of material

misstatement.

We therefore determined that impairment on loans

receivable and investment securities has a high degree of

estimated uncertainty.

In addition, disclosure regarding the Credit Union's

application of IFRS 9 are key to understanding the

change from IAS 39 as well as explaining the key

judgments and material inputs to the IFRS 9 ECL results.

How the matter was addressed during the

audit

Our procedures in this area includes the

following:

▪

Evaluation of the appropriateness of the

Credit Union's impairment methodology

including (SICR) criteria presented.

▪ Assessment of the assumptions for

probability of default, loss given default and

exposure at default.

▪

Assessment of the adequacy of the

disclosure of the key assumption and

judgments as well as the details of

transition adjustment for compliance with

IFRS 9.

Other Information

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.

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.


Page 1b





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

Management is responsible for maintenance of adequate accounting records in accordance with International

Financial Reporting Standards (IFRS) and the Co-operative Societies Act, and for preventing and detecting

frauds and other irregularities; selection and application of appropriate accounting policies; making judgments

and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate

internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the

accounting records, relevant to the preparation and presentation of the financial statements that give a true and

fair view and 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.

Auditor’s Responsibilities for the Audit of the Financial Statements

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

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

opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in

accordance with ISAs 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.


Page 1c





Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)

▪

▪

▪

▪

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 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.

Obtain sufficient appropriate audit evidence regarding the financial information of the Credit Union

to express an opinion on the financial statements. We are responsible for the direction,

supervision, and performance of the audit of the financial statements of the Credit Union of which

we are the independent auditors.

Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate,

makes it probable that the economic decisions of a reasonably knowledgeable user of the financial

statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the

scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any

identified misstatements in the financial statements.

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.

We also provide those charged with governance with a statement that we have complied with

relevant ethical requirements regarding independence, and communicate with them all relationships and other

matters that may reasonably be thought to bear on our independence, and where applicable, related

safeguards.


Page 1d





Auditor’s Responsibilities for the Audit of the Financial Statements (Cont’d)

From the matters communicated with those charged with governance, we determine those matters that were of

most significance in the audit of the financial statements of the current period and are therefore the key audit

matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure

about the matter or when, in extremely rare circumstances, we determine that a matter should not be

communicated in our report because the adverse consequences of doing so would reasonably be expected to

outweigh the public interest benefits of such communication.

Report on Additional Matters as Required by the Co-operative 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, given the information required by the Co-operatives Societies Act, in the manner required.

________________________________________

Crowe Horwath Jamaica

47-49 Trinidad Terrace

Kingston 5

Jamaica

May 14, 2021



Statement of Financial Position

AS AT 31ST DECEMBER 2020

(Expressed in Jamaican Dollars unless otherwise indicated)



Statement of Comprehensive Income

FOR THE YEAR ENDED 31ST DECEMBER 2020


2020 2019

Notes $ $

INTEREST INCOME:

Liquid Assets 26,639,114 19,144,017

Loans to Members 355,665,416 346,572,333

Financial Investments 17,925,063 30,824,379

400,229,593 396,540,729

INTEREST EXPENSE:

Interest Expense on Members' Voluntary Shares (19,605,953) (15,819,061)

Savings Deposits

(39,758,076) (52,608,854)

Other Financial Costs

25 (16,461,595) (17,117,351)

(75,825,624) (85,545,266)

NET INTEREST INCOME 324,403,969 310,995,463

Increase in ECL Provision 7 (6,326,957) (11,008,555)

Decrease in Provision for Investment Impairment - 2,539,344

NET INTEREST INCOME AFTER

PROVISION 318,077,012 302,526,252

NON-INTEREST INCOME

Rental - investment property 9,169,833 8,491,323

Net Fee Income 24,576,888 26,654,371

Other 26 21,585,562 26,348,434

GROSS INCOME 373,409,295 364,020,380

Less Operating Expenses 27 (293,294,544) (306,785,076)

NET INCOME BEFORE HONORARIA 80,114,751 57,235,304

Honoraria Payment (3,000,000) (3,000,000)

NET INCOME AFTER HONORARIA 77,114,751 54,235,304

OTHER COMPREHENSIVE INCOME

Items that will never be classified to Profit or Loss:

Revaluation Gain on Lands and Buildings 17,344,944 494,229,424

Pension (Expense) / Income 13 (3,535,000) 3,824,000

TOTAL COMPREHENSIVE INCOME AFTER HONORARIA 90,924,695 552,288,728

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



Statement of Changes in Equity - Summary



Balance at 31st December 2018 as previously stated

Members'

Non-

Permanent Share Institutional Institutional

Capital Capital Capital Total

$ $ $ $

75,013,942 198,968,869 691,292,403 965,275,214

Permanent Share reclassification (12,707,836) - 12,707,836 -

Restated Balance at 31st December 2018

62,306,106 198,968,869 704,000,239 965,275,214

Pension Income - 3,824,000 - 3,824,000

Revaluation Gain on Land and Buildings - 494,229,424 - 494,229,424

Scholarship Fund - 1,690,240 - 1,690,240

Youth Programme Reserve - (5,000) - (5,000)

Care-a-bit Reserve - 562,278 - 562,278

Software Reserve - 3,155,152 - 3,155,152

Redemption Reserves - (586,624) - (586,624)

Appropriations of Net Surplus for 2018

Dividends on Permanent Shares - (16,390,550) - (16,390,550)

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

Scholarship Fund - (4,000,000) - (4,000,000)

Software Reserve - (3,155,152) - (3,155,152)

Transfer from Non-Institutional to Institutional Capital (10,000,000) 10,000,000 -

Net Income after Honoraria

- 54,235,304 - 54,235,304

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

- (11,447,061) 11,447,061 -

Amount Subscribed during year

400,802 - - 400,802

Balance at 31st December 2019 62,706,908 710,330,880 725,447,300 1,498,485,088

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



Statement of Changes in Equity Summary - Cont’d



Members'

Non-

Permanent Share Institutional Institutional

Capital Capital Capital Total

$ $ $ $

Balance at 31st December 2019 as previously reported

62,706,908 710,330,880 725,447,300 1,498,485,088

** Restatement of funds accrued for bonus of 2019 - 1,259,842 - 1,259,842

*** Reversal of Investment provision - 3,000,240 - 3,000,240

*

**

***

Balance at 31st December 2019 as restated

62,706,908 714,590,962 725,447,300 1,502,745,170

Pension Expense - (3,535,000) - (3,535,000)

Revaluation Gain on Land and Buildings - 17,344,944 - 17,344,944

Scholarship Fund - (2,575,454) - (2,575,454)

Care-a-bit Reserve - (492,912) - (492,912)

Software Reserve - (701,580) - (701,580)

Redemption Reserves - (477,705) - (477,705)


Dividends on Permanent Shares - (4,133,185) - (4,133,185)

Transfer from Non-Institutional to Institutional Capital (10,000,000) 10,000,000 -

Net Income after Honoraria - 77,114,751 - 77,114,751

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

- (16,022,950) 16,022,950 -

Amount Subscribed during year 225,200 - - 225,200

Balance at 31st December 2020 62,932,108 771,111,871 751,470,250 1,585,514,229

Funds were previously allocated to Permanent Share Reserve now correctly allocated to the Retained Earnings.

Restatement to correct the overstatement of bonus accrued for in the prior year.

Reversal of investment provision to reflect the provisions of the IFRS 9, whereby investments recorded at Fair Value Through Profit and

Loss (FVTPL) are not subject to Expected Credit Losses (ECL).




Statement of Changes in Equity

NON-INSTUTIONAL CAPITAL



Balance at 31st December 2018 as previously reported

Capital Other Retirement Undistributed

Revaluation Non-Qualifying Benefit Net

Reserves Reserves Reserves Income Total

$ $ $ $ $

17,191,673 65,294,757 50,792,000 65,690,439 198,968,869

Net Income after Honoraria - - - 54,235,304 54,235,304

Other Comprehensive Income

Revaluation Gain on Lands and Buildings 494,229,424 - - - 494,229,424

Pension Income - - 3,824,000 - 3,824,000

Total Comprehensive Income for the Year after

Honoraria

Transactions with Owners

494,229,424 - 3,824,000 54,235,304 552,288,728

Scholarship Fund - (2,309,760) - - (2,309,760)

Youth Programme Reserve - (5,000) - - (5,000)

Care-a-bit Reserve - (187,722) - - (187,722)

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

Redemption Reserve - (586,624) - - (586,624)


Dividends on Permanent Shares - - - (16,390,550) (16,390,550)

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

Scholarship Fund - 4,000,000 - (4,000,000) -

Organisational Alignment - 20,000,000 - (20,000,000) -

Software Reserve - 3,155,152 - (3,155,152) -

Institutional Capital - - - (10,000,000) (10,000,000)

Increase in Retirement Benefit Reserve

Transfer of 20 % of Net Income for the Year before

Honoraria

- - 2,568,000 (2,568,000) -

- - - (11,447,061) (11,447,061)

Total Transactions with Owners - 22,116,411 2,568,000 ( 65,611,128) (40,926,717)

Balance at 31st December 2019 511,421,097 87,411,168 57,184,000 54,314,615 710,330,880





NON-INSTUTIONAL CAPITAL - CONT’D



Balance at 31st December 2019 as previously stated

Capital Other Retirement Undistributed

Revaluation Non-Qualifying Benefit Net

Reserves Reserves Reserves Income Total

$ $ $ $ $

511,421,097 87,411,168 57,184,000 54,314,615 710,330,880

* Restatement of funds accrued for bonus of 2019 - - - 1,259,842 1,259,842

** Reversal of Investment provision - - - 3,000,240 3,000,240

Balance at 31st December 2019 as restated 511,421,097 87,411,168 57,184,000 58,574,697 714,590,962

Net Income after Honoraria - - - 77,114,751 77,114,751

Other Comprehensive Income

Revaluation Gain on Lands and Buildings 17,344,944 - - - 17,344,944

Pension Expense - - (3,535,000) - (3,535,000)

Total Comprehensive Income for the Year after

Honoraria

17,344,944 - (3,535,000) 77,114,751 90,924,695

Transactions with Owners

Scholarship Fund - (2,575,454) - - (2,575,454)

Care-a-bit Reserve - (492,912) - - (492,912)

Software Reserve - (701,580) - - (701,580)

Redemption Reserve - (477,705) - - (477,705)


Dividends on Permanent Shares - - - (4,133,185) (4,133,185)

Care-a-bit Reserve - 736,425 - (736,425) -

Scholarship Fund - 1,945,968 - (1,945,968) -

Organisational Alignment - 23,780,455 - (23,780,455) -

Branch Office Upgrade - 2,000,000 - (2,000,000) -

Institutional Capital - - - (10,000,000) (10,000,000)

Increase in Retirement Benefit Reserve - - 2,229,000 (2,229,000) -

Transfer of 20 % of Net Income for the Year before

- - - (16,022,950) (16,022,950)

Honoraria

Total Transactions with Owners - 24,215,197 2,229,000 (60,847,983) (34,403,786)

Balance at 31st December 2020 528,766,041 111,626,365 55,878,000 74,841,465 771,111,871

*

**

Restatement to correct the overstatement of bonus accrued for in the prior year.

Reversal of investment provision to reflect the provisions of the IFRS 9, whereby investments recorded at Fair Value Through Profit and Loss (FVTPL) are not subject to

Expected Credit Losses (ECL).





INSTUTIONAL CAPITAL



Page 8

Business Statutory

Combination & Legal Revenue

Reserve Reserves Reserves Total

$ $ $ $

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

* Permanent Share reclassification - - 12,707,836 12,707,836

Restated Balance at 31st December 2018 297,610,477 349,451,719 56,938,043 704,000,239

Appropriation from Non-Institutional Capital - 10,000,000 - 10,000,000

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

- 11,447,061 - 11,447,061

Balance at 31st December 2019 297,610,477 370,898,780 56,938,043 725,447,300

Appropriation from Non-Institutional Capital - 10,000,000 - 10,000,000

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

- 16,022,950 - 16,022,950

Balance at 31st December 2020 297,610,477 396,921,730 56,938,043 751,470,250

* Funds were previously allocated to Permanent Share Reserve now correctly allocated to the Retained Earnings.




Statement of Cash Flows



2020 2019

$ $

Cash flows from Operating Activities:

TOTAL COMPREHENSIVE INCOME 90,924,695 552,288,728

Non- cash items included in income

Depreciation - Property, Plant and Equipment & Investment Property 23,013,130 22,327,852

Revaluation Gain on Properties (17,344,944) (494,229,424)

Retirement Benefit Asset 1,306,000 (6,392,000)

Loss on Disposal of Property, Plant & Equipment - 42,315

Provision for Loan Impairment (4,375,466) 810,293

Interest Income (400,229,593) (396,540,729)

Interest Expense 59,364,029 68,427,915

(247,342,149) (253,265,050)

(Decrease)/Increase in Operating Assets

Other Assets (78,347) 1,198,857

(Decrease)/Increase in Operating Liabilities

Accruals 11,264,629 (8,732,494)

External Credit 618,745 (1,597,102)

Payables 4,966,255 (4,070,464)

Cash used in Operations

(230,570,867) (266,466,253)

Interest Received 395,697,448 399,438,318

Interest Paid (62,693,176) (69,641,889)

Net Cash Provided by Operating Activities 102,433,405 63,330,176

Cash Flows from Investing Activities:

Loans to Members 99,420,778 (217,802,401)

Financial Investments 6,244,294 68,395,963

Additions to Property, Plant and Equipment (5,722,561) (10,615,740)

Net Cash Provided by/(used in) Investing Activities

99,942,511 (160,022,178)

Cash Flows from Financing Activities:

Savings Deposits 85,011,195 67,938,926

Members' Voluntary Shares 99,761,314 56,100,480

Subscription to Permanent Shares 225,200 400,802

Dividend Paid (4,133,185) (16,390,550)

Scholarship Reserve (2,575,454) (2,309,760)

Youth Programme - (5,000)

Redemption Reserve (477,705) (586,624)

Care-A-Bit Reserve (492,912) (187,722)

Software Reserve (701,580) -

Deferred Income 994,000 (654,837)

Net Cash Provided by Financing Activities 177,610,873 104,305,715

Increase in Liquid Assets 379,986,789 7,613,713

Liquid Assets at Beginning of Year 984,470,914 976,857,201

Liquid Assets at End of Year 1,364,457,703 984,470,914

Liquid Assets - Earning 1,300,842,376 929,704,937

Liquid Assets - Non-Earning 63,615,327 54,765,977

1,364,457,703 984,470,914




Notes to the Financial Statement



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,

National Energy Solutions Limited (NESoL), 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), Ocean Boulevard (Kingston) and Port Esquivel (St. Catherine).

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'

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:-

Definition of Material (Amendments to IAS 1 and IAS 8) (Effective 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.

Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) (Effective January 2020)

The amendments in Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7) clarify that

entities would continue to apply certain hedge accounting requirements assuming that the interest rate benchmark

on which the hedged cash flows and cash flows from the hedging instrument are based will not be altered as a

result of interest rate benchmark reform.

(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 operations and has determined that

none of these are likely to have an effect on the 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 Estimate 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

contractual terms of the financial assets are solely 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 fair value

through other comprehensive income (FVOCI) is an area that requires the use of complex models and

significant assumptions about future economic conditions and credit behaviour (e.g. The likelihood of

members defaulting and the resulting loss).

Anumberofsignificantjudgementsarealsorequiredinapplyingtheaccountingrequirementformeasuring

expected credit losses, as follows;

• 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 relative weightings of forward-looking scenarios for each type of product or

market and associated expected credit loss;

• Establishing 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 the 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

experienced 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 (FVTPL): 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 instruments 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 and defined contribution 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. A defined contribution plan is a plan whereby fixed contributions are paid into the fund

but there is no legal or constructive obligation to make further payments if the fund does not have sufficient assets

to pay all of the employees' entitlements to post-employment benefits.

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 Generally Accepted Accounting Principles (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. Rates for respective categories are as

follows:

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 has 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-impaired is referred to as

Stage 2 financial instruments.

At each reporting date, the Credit Union assesses whether the financial assets carried at amortised cost are

credit-impaired (referred to as 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 adopted consequential amendments to IFRS 7

"Financial Instruments Disclosure", which are applied to disclosures about their 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.







(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 before

honoraria should be carried to a Statutory Reserve Fund.

(p) League Fees and Stabilisation Dues:

Jamaica Co-operative Credit Union League Limited (JCCUL) has fixed the rate of League fees at 0.2% (2019 -

0.2%) of total assets. Stabilisation dues are fixed at a rate of 0.15% (2019 - 0.15%) of total savings.

(q) Interest Income and Expense:

Interest income and expense are recognised in the statement of comprehensive income for all interest-bearing

instruments on an accruals 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

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 accruals 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 15.76% (2019: 16.14%) 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 ,toaccountforthenet

assets of the entity deemed acquiree.

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.

COVID 19

The COVID 19 virus developed in China in late 2019, and evolved into to a worldwide pandemic by the first quarter of

2020. On March 11, 2020 The World Health Organisation declared the Novel Coronavirus (COVID 19) outbreak a

pandemic. Measures taken by the Government of Jamaica (GOJ) to contain the virus have affected the economic

activities of Jamaica and have affected the operations of the Credit Union.

Based on information from the World Health Organization (WHO) and local regulators, it is expected that with the

release of the COVID 19 vaccine the Jamaican economy will turnaround by the end of the next fiscal year.

The membership of the Credit Union is largely comprised of employees from essential services. Although there is no

guarantee for continuous employment, the Credit Union continues to maintain a Memorandum of Understanding with

all sponsor companies for the receipt of lump sum payments in the event that there is cessation of business or

separation of employment.

Measures Implemented by Management

In response to the pandemic, and to further strengthen the Credit Union’s infrastructure, the Management Team

focused on a risk approach for the monitoring, controlling and mitigating against the possible threats on operations.

The following were implemented:

i)

ii)

Liquidity Risk

Release and centralisation of liquidity, whilst monitoring counter party risks. The methodology applied was to

ensure optimisation of cash surpluses based on net inflows, and forecasting cash flows on a weekly basis.

Operations Risk Management

Expansion of our digital platform for greater facilitation of internet and mobile banking. The technology platform

was further strengthened by the implementation of the latest verified updates (firewall) from the vendor.

All available communication platforms to include social media, (SMS) and emails are utilized to ensure that

members are able to keep in touch with the Credit Union seamlessly.

(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 approving 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. 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.







(a) Credit Risk (Cont'd):

i) Loans to Members & Guarantees (Cont'd)

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.

Repossessed Collateral

The Credit Union obtained assets by taking possession of collateral held as security, as follows:

Carrying Amount

2020 2019

$ $

Real Estate 12,700,000 4,950,000

Motor Vehicles 930,000 21,500,000

13,630,000 26,450,000

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 has 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 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:

2020 2019

$ $

Earning Liquid Assets

1,300,842,376 929,704,937

Loans to Members after Provision for Impairment 2,773,693,912 2,868,739,224

Fair Value Through Profit and Loss (FVTPL)

363,128,209 369,372,503

Non-Earning Liquid Assets

63,615,327 54,765,977

Other Non-Earning Assets

29,527,729 24,917,238

4,530,807,553 4,247,499,879

Maximum Exposure for under IFRS 9

Loans

Expected Credit Loss (ECL) 2020

Loans to Members before allowance

for expected credit loss

Expected Credit Loss

Expected Credit Loss (ECL) 2019

Loans to Members before allowance

for expected credit loss

Expected Credit Loss

Stage 1 Stage 2 Stage 3 Total

2,733,347,375 58,584,606 23,233,475 2,815,165,456

31,958,225 654,818 8,858,501 41,471,544

2,826,684,202 40,864,687 47,037,345 2,914,586,234

24,379,332 1,210,782 20,256,896 45,847,010








iii) Exposure to Credit Risk (Cont'd)

Concentration of Risk

Changes in Credit quality since initial recognition:

Stage 1 Stage 2 Stage 3 Total

12-month ECL Lifetime ECL Lifetime ECL

ECL amount on Loans as at January

1, 2020

24,379,332 1,210,782 20,256,896 45,847,010

Transfers between Stages:

Transfer from Stage 1 to 2 (515,971) 515,971 - -

Transfer from Stage 1 to 3 (5,478,562) - 5,478,562 -

Transfer from Stage 2 to 1 105,960 (105,960) - -

Transfer from Stage 2 to 3 - (1,938,475) 1,938,475 -

Transfer from Stage 3 to 1 68,581 - (68,581) -

Transfer from Stage 3 to 2 - 348 (348) -

ECL on new Financial Assets originated 16,510,216 138,499 44,729 16,693,444

Net movement due to Asset

derecognition and changes in

PD/LGDs/EAD factors

(3,111,331) 833,653 (18,791,232) (21,068,910)

ECL amount of loans as at

December 31, 2020

31,958,225 654,818 8,858,501 41,471,544

The following table summarises the Credit Union's credit exposure for loans based on the purpose of the loan:

2020 2019

$ $

Transportation 953,138,690 1,033,966,362

Agriculture 3,764,405 5,346,173

Construction & Real Estate 357,275,142 414,793,942

Education 77,153,011 80,816,562

Debt Finance 395,742,036 432,235,428

Financial 18,757,147 24,415,353

Personal 433,918,798 452,341,346

Other 575,416,227 470,671,068

2,815,165,456 2,914,586,234

There were changes in the Credit Union’s approach to credit risk during the year to reflect the current and

projected future economic conditions, arising from the effects of the COVID 19 pandemic.

iv) COVID 19

AriskassessmentwasdonebyManagementtoestimatetheimpactofcreditdefaultduetotheuncertainty

resulting from the pandemic. Whilst there was no significant increase in credit risk (SICR), the forward-looking

indicators were adjusted based on the macroeconomic variables. Consequently, there was an increase in the

provisioning for expected credit loss. This approach was determined by Management to mitigate against a

seismic increase in credit losses due to the pandemic.

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 557,106,582 640,732,950 63,002,844 40,000,000 - - 1,300,842,376

Loans to Members 56,983,262 160,728,168.52 427,487,510 1,398,222,748 730,272,224 - 2,773,693,912

Financial Investments 155,124,435 - 10,000,000 188,149,965 9,853,809 - 363,128,209

Total Earning Assets 769,214,280 801,461,118 500,490,354 1,626,372,713 740,126,032 - 4,437,664,496

NON-EARNING ASSETS:

Liquid Assets 63,615,327 - - - - - 63,615,327

Other Assets: Receivables 18,412,473 3,091,722 8,023,533 - - - 29,527,729

Total Non-Earning Assets 82,027,800 3,091,722 8,023,533 - - - 93,143,056

TOTAL ASSETS 851,242,080 804,552,841 508,513,887 1,626,372,713 740,126,032 - 4,530,807,552







(b) Liquidity Risk (Cont'd):



LIABILITIES: $ $ $ $ $ $ $

INTEREST BEARING

LIABILITIES:

Voluntary Share Capital

10,000,000 20,000,000 100,000,000 600,000,000 688,382,955 - 1,418,382,955

Savings Deposits 634,267,470 402,677,296 245,673,123 811,459,218 - - 2,094,077,107

644,267,470 422,677,296 345,673,123 1,411,459,218 688,382,955 - 3,512,460,062

NON-INTEREST BEARING

LIABILITIES:

External Credits - - 12,141,705 - - - 12,141,705

Payables 14,386,364 - 16,646,795 - - - 31,033,159

Accruals - - 18,565,222 - - - 18,565,222

Total Liabilities 658,653,834 422,677,296 393,026,846 1,411,459,218 688,382,955 - 3,574,200,149

Net Liquidity Gap 192,588,246 381,875,545 115,487,041 214,913,495 51,743,077 - 956,607,403

Cumulative Liquidity Gap 192,588,246 574,463,790 689,950,831 904,864,326 956,607,403 956,607,403

<----------------------------------------------------------------------2019-------------------------------------------------------------------------->



$ $ $ $ $ $ $

Total Assets 631,362,532 350,237,164 425,457,805 2,015,318,474 742,522,156 79,601,505 4,244,499,637

Total Liabilities 204,136,847 358,605,566 1,006,637,445 1,289,984,526 517,802,619 - 3,377,167,003

Net Liquidity Gap 427,225,686 (8,368,401) (581,179,640) 725,333,947 224,719,537 79,601,505 867,332,634

Cumulative Liquidity Gap 427,225,686 418,857,285 (162,322,355) 563,011,592 787,731,129 867,332,634







b) Liquidity risk (Cont'd):

The key measures used by the Credit Union for managing liquidity risk is the GAP analysis and the ratio 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% of savings and deposits. The liquid

asset ratio at 31st December 2020 was 30.91% (2019: 30.91%) which is in compliance with the standard.

Items not carried on the statement of financial position

At 31st December 2020, the Credit Union's commitment to extend credit to its members in respect of loans

approved but not yet disbursed, amounted to $150,000 (2019: $775,000).

There has been no change to the Credit Union’s exposure to liquidity risk or the manner in which it manages and

measures this risk.

The previous table summarises the net liquidity gap and the cumulative liquidity gap of the Credit 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 cash flows which are generally expected to maintain a stable or increasing

balance.

c) Market Risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of

changes in market prices. These arise mainly from changes in interest rates, foreign currency rates and equity

prices and will affect the Credit Union’s income or the value of its holdings of financial instruments. The objective of

market risk management is to monitor 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 rates have 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 the market value of, or the cash flows from financial instruments will vary because of

exchange rate fluctuations. The Credit Union is exposed to foreign currency risk due to fluctuations in

exchange rates on transactions 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 its net foreign currency exposure is kept to an acceptable level.







c) Market Risk (Cont'd):

i) Foreign Currency Risk (Cont'd)

The Credit Union's exposure to foreign currency risk as at 31st December 2020 was:

Liquid Assets - Earning

2020 2019

US$

US$

USD Global Bonds 134,999 135,005

USD Repos 259,663 256,862

394,662 391,867

Sensitivity Analysis

Exchange rates in terms of Jamaican Dollars which is the Credit Union's intervening currency, were as follows:

US$

26th April 2021 152.60

31st December 2020 140.77

31st December 2019 129.78

There was a significant foreign exchange rate movement in the United States dollar during the period December

2019 to December 2020. Over the twelve months ended 31st December 2020, the exchange rate movement for

the United States dollar has shown an overall decrease of 11%. 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.

A four percent (4%) (2019: (3%)) movement in the US Dollar at 31st December 2020 would have

increased/decreased surplus by the amounts shown below. The analysis assumes that all other variables, in

particular, interest rates, remain constant.

2020 2019

$ $

Jamaican dollar 2,222,263 4,414,680

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 a loss of current market values. Interest rate risk is

managed principally through monitoring interest 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 557,106,582 640,732,950 63,002,844 40,000,000 - - 1,300,842,376

Loans to Members 56,983,262 160,728,168.52 427,487,510 1,398,222,748 730,272,224 - 2,773,693,912

Financial Investments 155,124,435 - 10,000,000 188,149,965 9,853,809 - 363,128,209

Non-Earning Assets 769,214,280 801,461,118 500,490,354 1,626,372,713 740,126,032 - 4,437,664,496

Liquid Assets

Cash in hand and at bank 63,615,327 - - - - - 63,615,327

Other Assets

Receivables 18,412,473 3,091,722 8,023,533 - - - 29,527,729

82,027,800 3,091,722 8,023,533 - - - 93,143,056

TOTAL ASSETS 851,242,080 804,552,841 508,513,887 1,626,372,713 740,126,032 - 4,530,807,552








ii) Interest rate risk (Cont'd):


Month Months months years Years Sensitive Total

$ $ $ $ $ $ $

LIABILITIES:

Interest-Bearing Liabilities

Members' Voluntary Share Capital 10,000,000 20,000,000 100,000,000 600,000,000 688,382,955 - 1,418,382,955

Savings Deposits 634,267,470 402,677,296 245,673,123 811,459,218 - - 2,094,077,107

644,267,470 422,677,296 345,673,123 1,411,459,218 688,382,955 - 3,512,460,062

Non Interest-Bearing Liabilities

External credits - - 12,141,705 - - - 12,141,705

Payables 14,386,364 - 16,646,795 - - - 31,033,159

Accruals - - 18,565,222 - - - 18,565,222

14,386,364 - 47,353,722 - - - 61,740,086

TOTAL LIABILITIES 658,653,834 422,677,296 393,026,845 1,411,459,218 688,382,955 - 3,574,200,148

Net Interest Rate Gap 192,588,246 381,875,545 115,487,041 214,913,495 51,743,077 - 956,607,403

Cumulative Interest Rate Gap 192,588,246 574,463,790 689,950,832 904,864,326 956,607,403 956,607,403

<-------------------------------------------------------------------2019---------------------------------------------------------------------------->


Month Months Months Years Years Sensitive Total

$ $ $ $ $ $ $

Total Assets 631,362,532 350,237,164 425,457,805 2,015,318,474 742,522,156 82,601,742 4,247,499,874

Total Liabilities 204,136,847 358,605,566 1,006,637,445 1,289,984,526 517,802,619 - 3,377,167,003

Net Interest Rate Gap 427,225,686 (8,368,401) (581,179,640) 725,333,947 224,719,537 82,601,742 870,332,871

Cumulative Interest Rate Gap 427,225,686 418,857,285 (162,322,355) 563,011,592 787,731,129 870,332,871






4.

Financial Instruments & Financial Instruments Risk Management (Cont'd):


ii) Interest rate risk (Cont'd):

At the date of the statement of financial position, the Interest Profile of the Credit Union's interest-bearing

financial instruments was:

Financial Assets

Interest Rate 2020 Interest Rate 2019

% $ % $

Liquid Assets

Foreign Deposits 1.05 - 4.00 36,552,771 0.65 - 2.30 33,335,566

Liquid Investments 1.05 - 6.75 1,264,289,605 1.05 - 2.50 896,369,371

Loans to Members 2.04 - 30.00 2,773,693,912 2.04 - 30.00 2,868,739,224

FVTPL Investments 1.14 - 11.00 363,128,209 2.00 -11.00 366,372,263

4,437,664,497 4,164,816,424

Financial Liabilities

Savings Deposits 1.35 - 3.85 2,094,077,107 1.35 - 4.15 2,009,065,912

Voluntary Shares 1.35 - 1.5 1,418,382,955 1.35 - 1.5 1,318,621,641

3,512,460,062 3,327,687,553

Sensitivity Analysis - Interest rate sensitivity

925,204,435 837,128,871

2020 2019

Change in

basis points

-100 -100

+100 +100

It should be noted that traditionally, Credit Unions 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 2020 Interest Rate 2019

% $ %

$

Financial Assets

Liquid Assets

Foreign Deposits 0.05 18,276 0.05 16,668

Liquid Investments 2.10 (26,550,082) 2.10 (18,823,757)

Loans to Members 0.02 554,739 0.02 573,748

FVTPL Investments 0.25 (907,821) 0.25 (915,931)

(26,884,888) (19,149,272)

Financial Liabilities

Savings Deposits 0.55 (11,517,424) 0.55 (11,049,863)

Voluntary Shares 0.93 13,120,042 0.93 12,197,250

1,602,618 1,147,388

(28,487,506) (20,296,659)







(c) Market risk (Cont'd):

iii) Equity price risk:

Equity price risk arises from 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.

▪

▪

▪

(d) Fair Value

Training and professional development.

Ethical and business standards.

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, 2020 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.

2020

Level 1 Level 2 Level 3 Total

$ $ $ $

Equity Investments at Fair Value to

Profit and Loss (FVTPL)

53,210,803 33,902,581 15,106,842 102,220,226

2019

Level 1 Level 2 Level 3 Total

$ $ $ $

Equity Investments at Fair Value to

Profit and Loss

33,776,330 53,223,571 15,106,842 102,106,743

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.

With the exception of the unquoted shares, the financial instruments are backed by high quality securities traded on

the primary and secondary markets.







(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:

2020 2019

Carrying Value Fair Value Carrying Value Fair Value

$ $ $ $

Financial Assets:

Earning

Loans to Members 2,773,693,912 2,773,693,912 2,868,739,224 2,868,739,224

Financial Investments 363,128,209 363,128,209 366,372,263 366,372,263

Liquid Assets 1,300,842,376 1,300,842,376 929,704,937 929,704,937

Investment Property 270,600,000 270,600,000 277,000,000 277,000,000

Non-Earning

Liquid Assets 63,615,327 63,615,327 54,765,977 54,765,977

Receivables 29,527,729 29,527,729 24,917,238 24,917,238

Financial Liabilities:

Interest Bearing

Savings Deposits 2,094,077,107 2,094,077,107 2,009,065,912 2,009,065,912

Members' Voluntary Shares 1,418,382,955 1,418,382,955 1,318,621,641 1,318,621,641

Non - Interest Bearing

External Credit 12,141,705 12,141,705 11,522,960 11,522,960

Payables 31,033,159 31,033,159 29,396,051 29,396,051

Accruals 18,565,223 18,565,223 7,300,594 7,300,594







(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:

2020 2019

$ $

a) Placement with Other Financial Institutions 916,427,432 615,481,320

b) Cash and Balances with JCCUL 338,027,717 271,156,544

c) JCCUL CUETS Investments 9,834,456 9,731,507

1,264,289,605 896,369,371

d) Foreign Currency Deposit Account 36,552,771 33,335,566

1,300,842,376 929,704,937

a)

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 2020, the Credit Union held securities totalling $907,506,205 (2019:

$544,628,340) representing Government of Jamaica debt securities as collateral for reverse repurchase agreements.

Included in these investments is an amount for $2,468,634 (2019 - $2,409,777) with respect to a Care-A-Bit Reserve

Fund (Note 23d).

b)

c)

Cash and balances with the Credit Union Fund Management Limited represent Cumax formerly (Cucash and Term

Deposits) of $327,468,644 (2019: $263,134,183) which are cash management call accounts. The rules of the League

stipulate that the Credit Union must invest a minimum of 8% of members' savings deposits in Cumax Mutual Fund.

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.

This represents an investment in the Jamaica Co-operative Credit Union League Limited CUETS Settlement Deposit,

which is used as a security deposit for ATM transactions.

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:

2020 2019

$ $

Balance at the Beginning of the year 2,868,739,224 2,651,747,116

Loans Granted 1,497,468,068 1,910,251,439

4,366,207,292 4,561,998,555

Less Repayments and Transfers 1,551,041,836 1,647,412,321

Less: Allowance for Expected Credit Loss (IFRS 9)

2,815,165,456 2,914,586,234

(41,471,544) (45,847,010)

Balance at End of Year 2,773,693,912 2,868,739,224

The profile of the loans to members are as follows:

2020 2019

$ $

Loans to members which are not past due 2,771,340,343 2,832,152,265

Loans to members which are past due:

1 month 20,612,575 31,251,635

2-3 months 9,049,466 12,354,955

4-5 months 8,094,700 13,013,965

6-12 months 4,698,456 19,247,665

Over 12 months 1,369,916 6,565,749

Less: Allowance for expected credit loss (IFRS 9)

2,815,165,456 2,914,586,234

(41,471,544) (45,847,010)

2,773,693,912 2,868,739,224

The aggregate amount of non-performing loans on which interest was not being accrued amounted to $23,212,538

(2019: $29,413,047).

Uncollected interest not accrued in these Financial Statements on non-performing loans was estimated at $1,443,885

(2019: $1,711,430).

The fair value of collateral held as security against impaired loans was $Nil (2019: $28,005,034).

The fair value of collateral held as security against loans that are past due was $80,630,937 (2019: $29,667,616).

The loans which have been renegotiated and were past due or impaired are NIL (2019:NIL).






7. Expected Credit Loss

The movement in the Expected Credit Loss for loans determined under the requirements of IFRS is as

follows:

2020 2019

$ $

Balance at the beginning of the year

45,847,010 45,036,716

Increase in Provision 6,326,947 11,008,555

Loans written off (10,702,413) (10,198,271)

Balance at the end of the year 41,471,544 45,847,010

Provision for loan losses determined under JCCUL Regulatory requirements is as follows:

<--------------------2020-------------------> 2019

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

18 20,612,576 - - -

30 12,354,955 10 1,235,496 1,235,496

16 9,422,842 30 2,826,853 3,904,190

25 10,990,902 60 6,594,541 11,548,600

7 245,982 100 245,982 6,565,749

96 53,627,256 10,902,872 23,254,035

2020 2019

$ $

Regulatory Loan Loss Provision 10,902,872 23,254,035

Less Provision based on IFRS 9 (41,471,544) (45,847,010)

Excess of Regulatory Loan Loss Provision over IFRS 9 Provision

Transferred to Loan Loss Reserve

- -






8. Financial Investments:

2020 2019

$ $

Fair Value Through Profit and Loss

a) JCCUL Shares - Unquoted 13,106,842 13,106,842

b) JCIA Shares - Unquoted 2,000,000 2,000,000

c) JCCUL Mortgage Bond 52,549,209 51,249,824

d) JNBS Mortgage Bond 10,000,000 10,000,000

e) Government of Jamaica - Bonds 179,000,000 188,000,000

f) Government of Jamaica - Global Bonds 19,003,774 17,520,935

g) Unit Trust 18,292,632 17,613,622

h) Shares - quoted 53,210,803 33,776,330

i) Shares - unquoted 15,609,949 35,609,950

j) Sagicor Select Fund 355,000 495,000

363,128,209 369,372,503

a)

b)

c)

d)

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

Credit Union.

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.

h) This represents investment in Barita Investments, Caribbean Cement Company, National Commercial

Bank and JBG Limited.






9. Investment Property:

At Cost or Valuation:

Land Building Total

$ $ $

At 31st December 2018 3,000,000 16,527,239 19,527,239

Additions - 110,000 110,000

Revaluation 18,000,000 239,362,761 257,362,761

At 31st December 2019 21,000,000 256,000,000 277,000,000

Additions - - -

At 31st December 2020 21,000,000 256,000,000 277,000,000

Accumulated Depreciation:

At 31st December 2018 - 5,553,892 5,553,892

Charge for the Year - 415,931 415,931

Eliminated on revaluation - (5,969,823) (5,969,823)

At 31st December 2019 - - -

Charge for the Year - 6,400,000 6,400,000

At 31st December 2020 - 6,400,000 6,400,000

Net Book Values:

At 31st December 2020 21,000,000 249,600,000 270,600,000

At 31st December 2019 21,000,000 256,000,000 277,000,000

At 31st December 2018 3,000,000 10,973,347 13,973,347

At 31st December, 2019, the fair value of the property at 37 Lady Musgrave Road as appraised by The C.D.

Alexander Company Realty Limited was $277,000,000.

10.

11.

Cash and Cash Equivalents:

2020 2019

$ $

Cash on Hand 9,130,366 12,579,184

Current Accounts 54,484,961 42,186,793

63,615,327 54,765,977

Receivables:

2020 2019

$ $

Accrued Interest Income

12,469,831 7,937,686

Receivables 17,057,898 16,979,552

29,527,729 24,917,238






12. Property, Plant & Equipment:

Land Office Equipment,

and Leasehold Furniture & Computer Computer Fence and

Buildings Improvements Fixtures Equipment Software ATM Garden Tools Total

$ $ $ $ $ $ $

At Cost or Valuation:

31st December 2018 44,794,098 21,651,628 59,359,855 41,649,906 81,108,008 3,353,073 109,470 252,026,038

Additions 1,286,275 - 783,397 6,632,110 1,803,958 - - 10,505,740

Disposals - - (97,277) - - - - (97,277)

Revaluation 209,067,999 - - - - - - 209,067,999

31st December 2019 255,148,372 21,651,628 60,045,975 48,282,016 82,911,966 3,353,073 109,470 471,502,500

Additions - - 1,649,615 2,641,079 1,431,867 - - 5,722,561

Revaluation 21,651,628 - - - - - - 21,651,628

31st December 2020 276,800,000 21,651,628 61,695,590 50,923,095 84,343,833 3,353,073 109,470 498,876,689

Accumulated Depreciation:

31st December 2018 16,421,085 3,763,909 45,004,790 36,621,149 67,993,327 419,227 109,469 170,332,956

Charge for year 1,101,073 542,774 3,107,406 4,012,538 12,728,995 419,134 1 21,911,921

Released on Disposal - - (54,962) - - - - (54,962)

Eliminated on revaluation (17,522,158) (4,306,683) - - - - - (21,828,841)

31st December 2019 - - 48,057,234 40,633,687 80,722,322 838,361 109,470 170,361,074

Charge for year 5,238,391 4,849,457 1,477,969 4,942,679 3,621,511 789,806 - 20,919,813

31st December 2020 5,238,391 4,849,457 49,535,203 45,576,366 84,343,833 1,628,167 109,470 191,280,887

Net Book Values:

31st December 2020 271,561,609 16,802,171 12,160,387 5,346,729 - 1,724,906 - 307,595,802

31st December 2019 255,148,372 21,651,628 11,988,741 7,648,329 2,189,644 2,514,712 - 301,141,427

31st December 2018 28,373,013 17,887,719 14,355,065 5,028,757 13,114,681 2,933,846 1 81,693,082

At 31 December, 2019, the fair value of land and buildings as approved by the C.D. Alexander Company Realty Limited was $276,000,000.






13. Retirement Benefit Asset:

The Credit Union participates in a multi-employer pension scheme. The pension scheme up to 31st December, 2016,

was only a defined benefit plan and was funded. Subsequent to 31st December, 2016 the Credit Union introduced a

contributory pension scheme and currently participates in both schemes. 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 at 31st

December, 2020.

The amounts recognised in the statement of financial position are determined as follows:

2020 2019

$ $

Present Value of funded obligations (128,070,000) (114,524,000)

Fair Value of plan assets 203,959,000 185,798,000

Effect of Asset Ceiling (20,011,000) (14,090,000)

Asset in the Statement of Financial Position 55,878,000 57,184,000

The amounts recognised in the statement of comprehensive income are as follows:

2020 2019

$ $

Current service cost 5,126,000 4,311,000

Interest cost 8,713,000 7,031,000

Expected return on plan assets (14,207,000) (11,666,000)

Interest on effect of Asset Ceiling 1,057,000 937,000

Past Service Cost - -

Administrative Expenses 1,036,000 876,000

Pension Expense 1,725,000 1,489,000

Movements in the amounts recognised in the statement of financial position:

2020 2019

$ $

Net Asset at beginning of year 57,184,000 50,792,000

Pension Expense (1,725,000) (1,489,000)

Re-measurements included in OCI (Other Comprehensive Income) (3,535,000) 3,825,000

Contributions Paid 3,954,000 4,056,000

Closing Net Asset at End of Year 55,878,000 57,184,000






13. Retirement Benefit Asset (Cont'd):

The principal actuarial assumptions used in valuing the plan were as follows:

2020 2019

Discount Rate 9.00% 7.50%

Future Salary Increases 6.50% 5.00%

Future Pension Increases 4.50% 3.00%

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:

2016 2017 2018 2019 2020

$ $ $ $ $

Fair Value of Plan Assets 163,209,000 164,064,000 163,204,000 185,798,000 203,959,000

Defined Benefit Obligation (115,715,000) (96,354,000) (99,021,000) (114,524,000) (128,070,000)

Surplus 47,494,000 67,710,000 64,183,000 71,274,000 75,889,000

Experience adjustments- Gain/(Loss)

Fair Value of Plan Assets 2,617,000 3,098,000 (2,057,000) 4,894,000 (2,260,000)

Defined Benefit Obligation (3,055,000) (17,612,000) (2,548,000) 5,016,000 1,947,000

14. Members' Voluntary Shares:

2020 2019

$ $

Balance at Beginning of Year 1,318,621,641 1,262,521,161

Add Amount subscribed 1,376,565,929 1,642,648,642

2,695,187,570 2,905,169,803

Less Withdrawals and Transfers (1,276,804,615) (1,586,548,162)

Balance at End of Year 1,418,382,955 1,318,621,641






15. Savings Deposits:

2020 2019

$ $

a) On Call 39,528,769 39,066,256

Easy Access Deposits 49,036,366 45,269,115

88,565,135 84,335,371

b) Special Deposits 633,590,582 563,406,239

c) Life Long Savings 322,791,505 309,992,366

d) Fixed Deposits 924,105,917 920,770,467

e) Mortgage Deposits 5,218,635 5,194,064

f) Partner Plan Savings 34,058,656 40,110,626

g) Golden Harvest Savings Deposits 42,474,159 48,075,586

h) Christmas Savings 14,500 -

i) Motor Savings 41,552,047 35,681,123

j) Members Mortgage 1,705,971 1,500,070

2,094,077,107 2,009,065,912

a) On Call & Easy Access Deposits

Balance at 1st January 84,335,371 82,687,143

Add Deposits 1,096,681,568 1,132,149,516

1,181,016,939 1,214,836,659

Less Withdrawals & Transfers (1,092,451,804) (1,130,501,288)

Balance at end of year 88,565,135 84,335,371

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 on which interest is paid at rates between 0.85% and

1.85% (2019: 0.85% and 2.25%) per annum.

c) Life Long Savings

Life Long Saving Deposits are for a minimum of five (5) years on which interest is paid at rates between 2% and

3.85% (2019: 2% and 4.15%) per annum.

d) Fixed Deposits

These represents amounts placed for fixed period at fixed rates between 1.5% and 2.1% (2019: 1.5% and 3%) per

annum.






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) 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.

g)

Golden Harvest Savings Deposits

The Golden Harvest Savings 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 3.00% (2019: 3.65%)

per annum.

h) Staff and Christmas Savings

These are savings by members and staff towards Christmas expenses. Interest is paid at 3% per annum.

i) Motor 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

fall in arrears.

j) Members Mortgage

These represent an escrow account for members who have received a mortgage through the Credit Union.

16. External Credits:

2020 2019

$ $

a) JPS $2 Million Housing Loan 130,292 130,292

b) JPS Computer Loan 4,000,000 4,000,000

c) JPS Education Loan 5,202,466 4,967,987

d) Jamaica Energy Partners Loan Scheme 2,808,947 2,424,681

e) Private Power Operations Loan - -

12,141,705 11,522,960

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 to each employee is $200,000 at an interest rate of 12% (2019:

12%).

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% (2019: 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) 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:

2020 2019

$ $

Withholding Tax 5,639,529 5,759,340

Statutory Contributions 3,883,714 3,750,866

Cuets ATM Settlement 3,035,269 2,803,251

Other 16,640,732 11,919,532

29,199,244 24,232,989

Interest Payable 1,833,915 5,163,062

31,033,159 29,396,051

18. Deferred Income

Injection for IFRS 9 Implementation

2020 2019

$ $

5,166,977 4,172,977

This represents an injection by JCCUL to offset the cost of IFRS 9 implementation. The Credit Union has continued

to allocate funds to facilitate annual upgrades.






19. Members' Permanent Share Capital:

2020 2019

$ $

Balance at Beginning of Year 62,706,908 75,013,942

Amount Subscribed in current year 225,200 400,802

Reallocation of permanent share reserve to

Institutional Capital

- (12,707,836)

20. Non-Institutional Capital:

62,932,108 62,706,908

Each member must hold a minimum of One Thousand Dollars ($1,000) in Permanent Shares and One

Thousand Dollars ($1,000) Voluntary Shares.

2020 2019

$ $

Capital/Revaluation Reserves (Unrealised) 528,766,041 511,421,097

Other Non-Qualifying Reserves (Note 23) 111,626,365 87,411,168

Retirement Benefit Reserves (Note 13) 55,878,000 57,184,000

Undistributed Net Income (Page 7) 74,841,465 58,574,697

771,111,871 714,590,962

21. Institutional Capital:

2020 2019

$ $

Revenue Reserve 56,938,043 56,938,043

Business Combination Reserve 297,610,477 297,610,477

Statutory & Legal Reserves (Note 24) 396,921,730 370,898,780

751,470,250 725,447,300

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.






22. Appropriations:

2020 2019

$ $

Scholarship Fund 1,945,968 4,000,000

Dividend on Permanent Shares 4,325,395 16,390,550

Software Reserve - 3,155,152

Branch Office Upgrade 2,000,000 -

Care-A-Bit Reserve 736,425 750,000

Institutional Capital 10,000,000 10,000,000

Organisational Re-Alignment 23,780,455 20,000,000

Honoraria 3,000,000 3,000,000

45,788,243 57,295,702

23. Other Non-qualifying Reserves:

2020 2019

$ $

a) General Reserve 11,866,364 11,866,364

b) Scholarship Fund 999,546 1,629,032

c) Youth Programme Reserve 2,198,500 2,198,500

d) Care-A-Bit Reserve 4,087,000 3,843,487

e) Software Reserve 13,904,302 14,605,882

f) Redemption Reserve 3,221,171 3,698,876

g) 60th Anniversary Celebration 3,326,951 3,326,951

h) Building Reserve 15,613,009 15,613,009

i) Organisational Alignment 54,409,522 30,629,067

j) Branch Office Upgrade 2,000,000 -

111,626,365 87,411,168

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 Primary Exit Profile (PEP) 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 etc. 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 disasters.

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):

g) 60th Anniversary Celebration

This amount was set aside from the surplus for the commemoration of the sixtieth (60) anniversary of the

Credit Union.

h) Building Reserve

This reserve is intended to be used towards the construction of a new office building at Lady Musgrave Road,

in Kingston.

i) Organisational Alignment

This reserve will be used in organisational re-alignment, for staff cost.

j) Branch Office Upgrade

This reserve will be used to upgrade the aesthetic of the Branch at Ewarton.

24. Statutory & Legal Reserves:

2020 2019

$ $

Balance at Beginning of Year 383,606,616 362,159,555

Transfer from Non-Institutional Capital 10,000,000 10,000,000

20% of Net Income before honoraria 16,022,950 11,447,061

409,629,566 383,606,616

25. Other Financial Costs:

2020 2019

$ $

Life Savings & Loan Protection Insurance 12,602,956 13,267,665

Bond Insurance 2,246,823 1,958,398

Others 1,611,816 1,891,288

16,461,595 17,117,351

26. Non-Interest Income - Other:

2020 2019

$ $

Miscellaneous 4,029,046 6,286,070

Other Fees & Charges 5,675,268 9,050,278

Gain on Foreign Exchange 4,654,485 868,041

CUETS Income 102,949 93,851

FIP Income 3,091,519 3,021,211

Loan Recoveries 4,032,295 7,028,983

21,585,562 26,348,434

27. Operating Expenses:

i. Personnel Expenses:

2020 2019

$ $

Employee Salaries & Allowances 115,760,106 114,319,933

Employee Benefits 25,798,938 25,533,322

Education & Training 1,904,487 1,891,983

Gratuity 1,401,275 1,286,343

Lunch Subsidy 7,268,291 6,935,696

Staff Travel & Related Expenses 1,166,801 1,953,316

Retirement Benefit Expenses 3,334,963 2,667,177

156,634,861 154,587,770






27. Operating Expenses (Cont'd):

i. Personnel Expenses (Cont'd):

The number of persons employed at 31st December 2020 was twenty-eight (28) full-time and sixteen (16) parttime

(2019 - twenty-seven (27) full-time and twenty two (22) part-time).

ii. Administrative Expenses:

2020 2019

$ $

Depreciation & Amortisation 23,073,518 22,327,851

Auditors Remuneration 4,801,868 4,564,674

Electricity 5,133,417 5,132,812

Repairs & Maintenance 5,429,502 6,044,114

Telecommunications 4,911,949 7,527,793

Printing, Stationery & Supplies 4,637,701 5,364,318

Insurance Premiums 6,766,328 5,314,771

Easy Access Expense 4,398,312 2,118,191

Professional & Consulting Fees 1,510,710 4,895,576

Postage 350,993 398,624

Security 11,414,109 12,916,463

Subscriptions 229,623 211,508

Computer Expenses 29,346,423 24,508,973

Rental Expense 1,828,949 1,975,944

Loss on Disposal of Fixed Asset - 42,315

Other Administrative Expenses 2,812,316 4,299,565

Internal Audit Expense 3,140,819 3,741,735

COVID 19 Expense 1,129,945 -

Members' Refreshment 910,170 3,210,953

111,826,652 114,596,180

iii. Marketing & Promotion Expenses:

2020 2019

$ $

Publicity & Promotion 4,717,235 9,473,592

Public Relations 182,519 349,800

4,899,754 9,823,392

iv. Representation & Affiliation Expenses:

2020 2019

$ $

League & Other Dues 11,950,130 13,185,146

Seminars & Meetings 4,541,897 9,403,781

Annual General Meeting 3,441,250 5,188,807

19,933,277 27,777,734

Total Operating Expenses 293,294,544 306,785,076






28. Comparison of Ledger Balances:

Voluntary Shares Savings Deposits Loans

$ $ $

General Ledger 1,418,382,955 2,094,077,107 2,815,165,457

Personal Ledger 1,418,382,955 2,094,077,107 2,815,165,457

Difference at 31st December 2020 - - -

Difference at 31st December 2019 - - -

29. Related Party Transactions and Balances:

Arelatedpartyisapersonorentitythatisrelatedtotheentitythatispreparingitsfinancialstatements(referredtoin

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:

(i)

(ii)

(iii)

has control or joint control over the reporting entity;

has significant influence over the reporting entity; or

is a member of the key management personnel of the reporting entity or of a parent of the reporting entity.

(b)

An entity is related to the reporting entity if any of the following conditions applies:

(i)

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).

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(viii)

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)hassignificantinfluenceovertheentityorisamemberofthekeymanagement

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.

Arelatedpartytransactionisatransferofresources,servicesorobligationsbetweenrelatedparties,regardlessof

whether a price is charged.






29. Related Party Transactions and Balances (Cont'd):

At 31stDecember2020,nine(9)(2019:nine(9))membersoftheCreditUnion'sBoardofDirectorsandten(10)(2019:

nine (9)) Committee Members had savings of $26,750,194 (2019: $18,372,292) and loans including interest totalling

$35,737,566 (2019: $36,247,702).

Credit Union Staff of forty-four (44) (2019: forty-nine (49)) employees had savings of $$22,463,063 (2019:

$18,178,725) and loans including interest totalling $77,618,856 (2019: $65,556,350). No waivers were granted to staff

members or volunteers during the year. At 31st December 2020, 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 $ $47,007,924 (2019: $44,895,195) and comprises the General

Manager, the Chief Accountant, the Operations Manager, the Risk and Compliance Manager, the Credit Manager,

Marketing Manager, ICT Manager, and two Branch Managers.

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. Subsequent Events:

The Jamaica Public Service (JPSCo), one of the sponsor companies closed three (3) of its branches during the first

quarter of 2021. The liquidation of loans due to redundancies amounted to $15.24M, and was deemed to have had a

low impact on the assets of the Credit Union. With the closure of JPSCo’s branches, the market base of the Credit

Union was not significantly affected based on (i) the number of members that were affected were sixteen and (ii) there

was no exposure of earning assets after the redundancy exercise.

However to mitigate against the impairment of the market base, the Management Team continues to explore the

opportunities available to increase the penetration levels for new business from the (i) various sponsor companies and

(ii) pre-existing members who have not benefited from the products and services of the Credit Union. As a

supplement, interest rates were reduced on promotional loans for the first half of 2021.



Supervisory Committee Report

Janet Morrison-

Plummer

Deidre Codner-

Campbell

Timain Campbell

Althea Whyte-

Sutherland

Jodian Jolly

BACKGROUND

The Supervisory Committee is an oversight body of the

Credit Union, which is elected for the purpose of audit and

supervision. 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) and guided by

the Jamaica Cooperative Credit Union League (JCCUL)

Supervisory Committee Guide (2000) as well as Article X

Rules 48-51 of the Rules of the JPS & Partners Cooperative

Credit Union.

The members who served up to September 18, 2020,

retired as stipulated by the Rules of the Credit Union. Four

members were not eligible for re-election, as they had

served the Committee for the maximum three (3)

consecutive terms allowed.

A new Committee was elected during the Annual General

Meeting, held on September 19, 2020, at the Jamaica

Conference Centre. The first official meeting of the new

committee was held on September 28, 2020 where the

members selected the persons to serve in the office as

noted below.

ELECTION OF OFFICERS

The following volunteers served on the Supervisory

Committee for the financial year 2020.

OFFICE

PERIOD OF SERVICE

January 1 - September 18, 2020 September 19 - December 31, 2020

Chairperson Ms. Caphanne March Mrs. Janet Morrison Plummer

Vice Chair Ms. Corine McCalla Mrs. Deidre Codner-Campbell

Secretary Mrs. Janet Morrison Plummer Ms. Timain Campbell

Assistant Secretary Ms. Ann-Marie Raymond Mrs. Althea Whyte Sutherland

Member Mrs. Viris Reece Ms. Jodian Jolly



Supervisory Committee Report (Continued)

ATTENDANCE

During the period under review, the number of meetings

and the members’ attendance were as follows.

NAME MEETINGS MEETINGS

HELD ATTENDED

Caphanne March 9 9

Corine McCalla 9 9

Ann-Marie Raymond 9 9

Viris Reece 9 9

Janet Morrison Plummer 12 12

Diedre Codner Campbell 4 3

Althea Whyte Sutherland 4 3

Timain Campbell 4 4

Jodian Jolly 4 3

ACTIVITIES DURING THE YEAR

The year 2020 was a very interesting one as the COVID-

19 pandemic presented challenges that for the most part,

we were not fully prepared for. A number of regular

activities, including branch visits and training, had to be

reorganized, in keeping with the COVID-19 protocols.

The activities undertaken by the Committee during the

year included:

• Internal audit services

The Internal Audit contract with Smith & Associates,

expired in 2019. The term was extended to October

2020 to facilitate the completion of a bidding process.

A Request for Proposal (RFP) was issued to the public

in January 2020 for a new contract for Internal Audit

Services for the term November 2020 - October 2022.

Smith and Associates again emerged as the preferred

bidder and the new contract was signed in October

2020.

• Audit Reports:

Internal Auditor, Smith & Associates, conducted

monthly audits at the Head Office and bi-monthly

audits at the Ewarton and Kirkvine branches (The

Ocean Boulevard branch was closed in March 2020).

These audit reports were reviewed and monthly

submissions made by the committee to the Board of

Directors to highlight issues and or make

recommendations

The errors identified were on a very low risk scale;

however, the Credit Union is committed to have total

efficiency within its operations. They have agreed to

strengthen the Risk and Compliance unit in order to

address these issues and to ensure that such

recurrence is reduced or eliminated.

• Training

Committee members participated in the following

courses/workshops facilitated by the Jamaica Cooperative

Credit Union League and JPS & Partners

Credit Union:

- Roles and Functions of the Supervisory Committee

- Proceeds of Crime Act (POCA)

• Special Meetings/Events

Committee members participated in a number of

special meetings during the period including:

✓

✓

✓

✓

bid opening for external audit services;

joint meetings re loans for connected parties;

drawing of winners for a members raffle and

the strategic planning retreat.

CONCLUSION

Despite the challenges presented by the COVID-19

pandemic, the Committee was able to make the required

adjustments and conducted the assigned tasks to enable



Supervisory Committee Report (Continued)

us to make informed decisions and take necessary

actions.

In general, the credit union is compliant with policies and

procedures, as well as regulatory requirements. In

instances where shortcomings were identified, the relevant

remedial recommendations have been made and the

committee continues to review and monitor the status of

their implementation.

The Supervisory Committee is satisfied with the

operations of the Credit Union and is of the view that, the

Cooperative continues to be a strong financial partner for

its members. We endeavour to remain vigilant and to pay

keen attention to the entire operations in the best interest

of members as well as the maintenance of the viability of

the Credit Union.

ACKNOWLEDGEMENT

The Supervisory Committee takes this opportunity to thank

the members of the Credit Union for giving us the

opportunity to serve. A special thank you to Smith &

Associates, our Internal Auditors, for the audits done over

the period. We also express our appreciation to the

management and staff of the JPS and Partners Credit

Union for their assistance and guidance, given that the

committee comprised mainly of members who had never

before served in that capacity before.

Janet Morrison Plummer (Mrs.)

Chair, Supervisory Committee



Credit Committee Report

Cebert Mitchell

Sharlene Chunnu-

Brown

Nastassia Dixon Nicole Goodin Tricia Hay

JPS & Partners Credit Union continues to be buoyant even

as the Covid-19 Corona Virus disrupted the status quo

both locally and internationally.

In 2020, the Credit Union experienced a decline in the

demand for new loans which negatively affected the

demand for loans overall.

The following members were nominated to serve on the

Credit Committee at the 65th Annual General Meeting.

• Cebert Mitchell

• Nicole Goodin

• Sharlene Chunnu-Brown

• Nastassia Dixon

• Tricia Hay

The Committee, thereafter, elected Mr. Cebert Mitchell as

Chairman and Miss Tricia Hay as Secretary.

LOANS APPROVED BY THE CREDIT

COMMITTEE IN 2020

The Credit Committee approved loans totalling $150.75M

for the year in review. Motor vehicle approvals stood at

58% or $86.65M, whilst Home Equity approvals stood at

39% or $59.30M. Mortgage loan approvals stood at 3% or

$4.8M. M

HOME

EQUITY

39%

MORTGAGE

3%

MOTOR

VEHICLE

58%

LOAN DISBURSEMENT

In 2020, loans disbursed totalled $1,497.46B. The table

below details the loan categories under which loans were

granted for the calendar year.

Loan category

Motor Vehicle

Home Equity

Mortgage

Salary Enhancer

Within Savings

Christmas Combo

Cash & Credit

Education

Other

Total

LOANS APPROVED JANUARY TO DECEMBER 2020

Count

Total $1M

71

216,694,538.42

14

77,285,000.00

5

15,890,781.51

460

369,579,637.52

721

270,519,082.93

946

128,754,695.44

648

56,573,268.12

340

69,770,511.51

6,487

292,400,552.65

9,692

1,497,468,068.10

%

14.47%

5.16%

1.06%

24.68%

18.07%

8.60%

3.78%

4.66%

19.53%

100.00%



Credit Committee’s Report (Continued)

LOANS PORTFOLIO CLASSIFICATION

BEFORE PROVISION.

The loan portfolio consists of a combination of secured

and unsecured loan facilities. The secured portfolio

represents 70% while unsecured accounts for 30%.

Motor vehicle loans stood at $1,046.18B or 37% of the

portfolio while Real Estate represents $712.09M or 25%

of the portfolio. Cash secured loan represents $209.45M

or 8% of the portfolio while the unsecured portfolio stood

at $847.43M or 30%. The chart below provides a pictorial

view.

EXPRESSION OF GRATITUDE

The Credit Committee expresses appreciation to our

valued members who have entrusted us with the

responsibility of providing oversight on loans. The

Committee ensured that the loans disbursed were of high

quality thus ensuring that the financial viability of the

Credit Union remains protected. Special thanks to the

Board of Directors, Management and Staff for their

continued support, cooperation and guidance throughout

the year.

REAL

ESTATE

25%

CASH

SECURED

8%

UNSECURED

LOAN

30%

Cebert Mitchell

Chairman

MOTOR

VEHICLE

37%



League Delegates Report

Donovan Cunningham

Deborah Campbell

Tricia Robinson

David Fleming

League Delegates and Alternate Delegates are members

of the Board of directors who represent the Credit Union

as ambassadors to forums and conferences held by the

Credit Union Movement’s umbrella organizations both

locally and internationally.

During 2020, Donovan Cunningham (President) and

Deborah Campbell (Treasurer) were appointed in the

capacity of League Delegates, while Tricia Robinson

(Secretary) and David Fleming (Vice President)

represented the Credit Union as Alternate Delegates.

During the year, annual calendar meetings such as the

Caribbean Confederation of Credit Unions and the World

Council of Credit Union meetings that your delegates

would have participated were not held due to the COVID-

19 pandemic restrictions. Highlights of other meetings

attended by your delegates include:

JAMAICA CO-OPERATIVE CREDIT UNION

LTD (JCCUL) 79TH ANNUAL GENERAL

MEETING

The League’s 79th Annual General Meeting was held on

October 03, 2020 at the Knutsford Court Hotel under the theme

“Together We Do More”. The meeting was delivered using a

hybrid method in accordance with the government’s COVID-

19 public restrictions at the time. There were approximately 53

delegates who attended the meeting in person and

approximately 150 delegates via the Zoom platform

Annual General Meeting

Twenty-five (25) Credit Unions represented by their

Delegates and Alternate Delegates were in attendance.

President Mr. Winston Fletcher chaired the meeting. He

extended welcome to all attendees. He thereafter

presented a summary of the Board report for the year

2020. All other reports including that from the Treasurer,

the Supervisory and Nominating Committees, as well as

the audited financial statements were presented.

Mr. Winston Fletcher retired as president at the meeting

and a new president, Mr. Lambert Johnson, was elected

to the JCCUL Board.

Distribution of Surplus

The Delegates agreed to the distribution of the surplus of

$9.09M.

The Delegates voted for the Maximum Liability of the

League to be set at $5B.

Election of Officers

The meeting voted to accept the nominations for the

following persons to serve on the Board.

NAME

Alexander Bourne

CREDIT UNION

Manchester

Hector Stephenson Educom At Large

Bornette Donaldson C&WJ Mega

Jerry Hamilton Grace Medium -Size

Brenda Cuthbert NCB Employees Medium- Size

Carol Anglin COK Sodality Mega

Resolutions

Five (5) congratulatory Resolutions were passed at the

meeting.

PERFORMANCE PERFORMANCE

2020 2019

AMOUNT GROWTH AMOUNT

SAVINGS $105.82B 9.94% $96.25B

LOANS $91.6B 3.58% $88.43B

ASSETS $137.03B 9.58% $125.05B

MEMBERSHIP 1,034,962 2.82% 1,006,557



League Delegates Report (Continued)

LEAGUE’S PERFORMANCE 2020

RULE CHANGE

There were no rule changes.

AWARDS

Several Credit Unions were presented with awards for

achievements in 2020.

Mega Category (Assets > $2Billion)

• EduCom Co-operative Credit Union won the award for

Mega Credit Union (First Regional Co-operative

Credit Union was the runner-up)

Large Category (Assets >$1Billion - $2 Billion)

• JDF Co-operative Credit Union copped the award for

large Credit Unions (Portland Co-operative Credit Union

was declared the runner-up)

Medium-size Category (Assets >$300Million to

$1Billion)

• NCB Employees Co-operative Credit Union won the

award for medium-sized Credit Unions (BJ Staff Cooperative

Credit Union took the runner- up spot)

JPS& Partners Co-operative Credit Union won the

Sectional prize for Highest Solvency. The award of a prize

at the League’s AGM allowed the Credit Union to achieve

one of its strategic goals.

ANNUAL CREDIT UNION BOARD

CONSULTATION

The annual Board Consultation was held on November 21,

2020. The meeting was held via the Zoom platform. At

this meeting delegates were provided with updates on the

following:

• Refreshing the credit Union Brand

• Jamaica Co-operative Insurance Agency Ltd (JCIA)

New Products

LEAGUE COVID-19 ASSISTANCE

TO CREDIT UNIONS

During the year, the League provided invaluable COVID-

19 relief assistance to Credit Unions to help cushion the

impact from the pandemic:

• Reduction in Stabilization Dues for 2020.

• Provision of loan support from the Stabilization fund to

credit Unions requiring such assistance.

• Reduction in the Liquid Assets requirement.

The League continued its generous support to Credit

Unions with the financial assistance of $1,000,000.00 to

be used in the procurement of a Transaction Monitoring

System. This system is a software that allows Credit

Unions to electronically monitor their member database

on a daily basis in compliance with the Proceeds of Crime

Act (POCA) and Anti-money Laundering (AML)

requirements.

Several model Credit Union policies were also drafted and

issued to Credit Unions for their customization to suit

requirements.

CONCLUSION

We are pleased to have served you as delegates and

alternate 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 2021.

On behalf of the Delegates and Alternate Delegates

• League Values

• Update on AccessPlus debit card to EMV chip enabled

technology project

• Update on Credit Union Fund Management Company

(CUFMC)

Donovan Cunningham

Delegate



Nominating Committee Report

David Fleming Allentia Brown Vaughn McDonald Carl Grant

The JPS & Partners Nominating Committee was

appointed by the Board of Directors in accordance with

Rule 65(1) and comprised the following persons:

David Fleming

Chairperson

Mrs Dacia Barnes-Young tendered her resignation from

the Board of Directors. Her resignation takes effect at the

upcoming Annual General Meeting. Ms. Timain Campbell

has been nominated to serve the remaining one year

unexpired term of Mrs. Dacia Barnes-Young.

Allentia Brown

Member

The following Directors will continue to serve:

Vaughn McDonald

Member

NAME

REMAINING TERM IN OFFICE

Carl Grant

Member

Devon Wright

1 Year

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 66th Annual General Meeting.

Clive Segree

Tricia Robinson

David Fleming

1 Year

1 Year

1 Year

The Committee wishes to thank all volunteers both

returning and those retiring for their invaluable contribution

over the years.

MEMBERS OF THE BOARD OF

DIRECTORS

RETIRING NOMINATED TERM IN

OFFICE

David Grey Kim Robinson 2 years

Terrence Knight Natalie Sparkes 2 years

Deborah Campbell Patrick Davidson 2 years

Donovan Cunningham Donovan Cunningham 2 years

Based on the term limits for Board members – three (3)

consecutive terms, Ms. Deborah Campbell will not be

eligible for re-election. Mr David Grey although eligible,

did not seek re-election.

PROFILE OF NOMINEES

Patrick Davidson

Patrick is an avid sports enthusiast and is currently the

Accountant in the Payroll Department of the Jamaica

Public Service Company Limited.

Volunteerism is innate in Patrick. He first served as a

member and later as Chairman of the Supervisory

Committee of JPS& Partners Co-Operative Credit Union.

Patrick’s spirit of volunteerism also extends to his

community of Morris Meadows where he has served on

various committees

Patrick firmly believes that education is the key to

success. He currently holds a Diploma in Business

Administration from the University of Technology, a

Bachelor of Sciences majoring in Finance from Northern

Caribbean University and a Masters of Sciences in

Accounting from the University of the West Indies, Mona.



Nominating Committee Report (Continued)

Patrick is married with four children.

Natalie Sparkes

Natalie is Past President of the JPS & Partners Co-

Operative Credit Union and is a Justice of the Peace. She

is an accomplished Management Executive with over 16

years’ experience in leading and implementing improved

efficiency and productivity systems to deliver performance

driven results oriented workplace best practices

Natalie is employed to JAMALCO and is currently the

Production and Maintenance Manager. She was previously

employed to UC Rusal – WINDALCO formerly Alcan

Jamaica for eighteen (18) years. She holds a MBA in

Engineering Management from the University of

Manchester, a Bachelor of Sciences in Chemical and

Process Engineering from the University of the West

Indies, Diploma in Education, Certificate in Project

Management and is a certified Project Manager. Natalie is

a licensed Professional Engineer. She is also a Council

Member of the Jamaica Institution of Engineers, member

of the American Society of Chemical Engineers and a

member of the Canadian Society of Chemical Engineers.

She is also a certified Lean Six Sigma Yellow Belt.

Natalie never fails to give back to her community. Over

the years she has held many positions in various

organizations and was awarded the Volunteer of the Year

in the Jamaica Credit Union Movement. She is a past

Director on the Board of Southern Regional Health

Authority, Past President of the PTA. Mount St Joseph

Kindergarten and Prep. School.

She is the proud mother of one son.

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

currently the Chairman of the Board of Directors of JPS

& Partners Cooperative Credit Union.

His academic qualifications include a Bachelor of

Sciences Degree in Human Resource Management from

the University of the Commonwealth Caribbean, an

Associate of Sciences Degree in Business Administration

from the University College of the Caribbean and 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.”

Timain Campbell

Ms. Timain Campbell is a Chartered Accountant and a

member of the Association of Chartered Certified

Accountants (ACCA). She is employed to the Jamaica

Public Service Company Limited as Accountant- Tax

Compliance and Bank Reconciliation. Her professional

background spans over nine (9) years of progressive tax

experience in Accounting firms- Ernst & Young and KPMG.

She holds a Bachelor of Sciences in Accounting from the

University of the West Indies as well as Certification in

Business Writing from the University College of the

Caribbean.

Kim Robinson

Kim Robinson is a practising Attorney-at-Law who was

called to the Jamaican Bar in 2006. Kim is currently Legal

Counsel & Assistant Company Secretary at the Jamaica

Public Service Company Limited. She previously held the

position of Director at JPS & Partner Co-Operative Credit

Union.

Kim is a member of the Jamaican Bar Association.

MEMBERS OF THE SUPERVISORY

COMMITTEE

Volunteers on this Committee are elected to serve for one

(1) year up to a maximum of three (3) consecutive terms.

All members of this Committee will retire at this meeting.




The following persons have indicated their willingness to

serve for one year.

RETIRING

PROFILE - NOMINEES

Janet R. Morrison Plummer, FCCA, FCA, DTM

Mrs. Morrison Plummer is employed to Tax Administration

Jamaica (TAJ) as a Business Requirement Specialist (BRS).

She is a Chartered Accountant and is 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 the Council of ICAJ and serves as Chair

of the Institute’s Public Sector Committee.

Mrs. Morrison Plummer has served as Chairman of the

Supervisory Committee. She is a Distinguished Toastmaster

and served District 81B in a number of leadership

roles including Area Director, Assistant Division Director-

Program Quality and Division Director.

Althea Whyte-Sutherland

NOMINATED TERM IN

OFFICE

Jodian Jolly Sheryll Brown 1 year

Timain Campbell Cheryl Hall 1 year

Janet Plummer Janet Plummer 1 year

Althea Whyte-Sutherland Althea Whyte Sutherland 1 year

Deidre Codner-Campbell Courtney Harrison 1 year

Mrs. Althea Whyte Sutherland held the position of

Accounting Assistant and Assistant Internal Auditor in the

Accounting Payables and Internal Audit Department

respectively at the Jamaica Public Service Company

Limited

Mrs. Whyte Sutherland currently holds a Level 2

certification from the Association of Chartered Certified

Accountant (ACCA), a Diploma in Financial Management

and Accounting, and a Diploma in Information

Management and Computer Application from the Jamaica

Institute of Management. She is certified as an Accounting

Technician (CAT) from the Accounting Body of ACCA and

is a certified member of the Institute of Internal Auditors.

Mrs. Whyte Sutherland has received professional training

in Governance, Risk Management and Controls, ISO

9001-2008 and Internal Auditing for Laboratories. Her

voluntary contribution is extended to counseling and

mentoring.

Sheryll Brown

With over nineteen (19) years of experience in

professional executive assistant positions and a track

record of strong performance in high-volume, highpressure

environments, Sheryll has skilfully managed

administrative duties for various divisions within the

Jamaica Public Service Company Limited.

Sheryll holds a Bachelor of Science in Professional

Management from Nova Southeastern University, Florida.

From 2012 to 2016 she held the post of Secretary at the

JPS Foundation and is currently Secretary to the JPS DC

Pension Plan Board of Trustees and Investment

Committee.

Sheryll is active in the community and volunteers her time

as a member of the Fusion Optimist Club of New Kingston

and sits on the Board of Trustees for the Youth for

Sustainable Development.

Courtney Harrison

Courtney has being employed to the Jamaica Public

Service Company Limited from December 2017 as an

Accounting Clerk.

Courtney currently provides support to outreach programs

at his alma mater and his residential community. Since

2018, he has been providing voluntary services to his

community football program.

Courtney enjoys playing football and provides voluntary

accounting services to his family business.




Cheryl Hall

Cheryl Hall is employed to the Jamaica Public Service

Company Limited from 2013 and is currently an

Accounting Assistant.

Cheryl holds a degree in Business Administration from the

University of Technology.

She enjoys volunteering in her spare time.

MEMBERS OF THE CREDIT COMMITTEE

Volunteers are elected to serve on this Committee for Two

(2) years. The following persons will retire from the

Committee at this meeting:

RETIRING

Tricia Hay

Cebert Mitchell

The following Committee members will continue to serve:

NAME

Nicole Gooden

Nastassia Dixon

Sharlene Chunnu-Brown

PROFILE - NOMINEES

Cebert Mitchell

NOMINATED TERM IN

OFFICE

Tricia Hay 2 Years

Cebert Mitchell 2 Years

REMAINING TERM IN OFFICE

1 Year

1 Year

1Year

Cebert Mitchell is currently a Consultant in the Taxation

Policy Division of the Ministry of Finance. He is a career

public servant who has served for almost 35 years in

various capacities including Accountant, Internal Auditor,

and Acting Assistant Commissioner of Customs.

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.

Tricia Hay

Ms. Hay is currently employed to the Jamaica Public

Service Company Limited supporting the office of the

Senior Vice President - Customer Services Division.

During her thirteen (13) years of service at Jamaica Public

Service Company Limited, she has also served as a

Quality Assurance Analyst and Business Analyst.

Tricia holds a Bachelors of Business Administration (with

Honours) from the University of Technology Jamaica with

a major in General Management and a minor in

International Business.

Her mantra “Service to humanity is service to God.”

reflects one of her purpose which is to give back to others

through voluntary service. By this, she has given her time

in supporting initiatives and projects for the JPS

Foundation, other organizations, communities and

individuals to enhance the lives of others.

Ms. Hay’s service also extends to the JPS & Partners Co-

Operative Credit Union where she currently serves as a

Location Representative at the JPS Head office since

September 2010.

David Fleming

Chairperson

He has also served for approximately twenty (20) years

within the Cooperative Movement. His service includes

Vice President and member of the Supervisory Committee



Special Resolutions

AMENDMENTS TO JPS & PARTNERS

CO-OPERATIVE CREDIT UNION LIMITED

RULES

NOTICE IS HEREBY GIVEN that the 66 th Annual General

Meeting of the JPS & Partners Co-operative Credit Union

Limited will be held at the Jamaica Pegasus Hotel on

Thursday, November 25, 2021 at 2:00 p.m. for members

to consider and if thought fit to pass the following special

resolutions:

consequent upon approval at this general meeting of

members and subject to the Registrar of Co-operative

Societies’ immediate certification:

AND WHEREAS JPS & Partners Co-operative Credit

Union Limited has agreed to adopt and accept all the

interpretations so ascribed under the said Regulations.

BE IT RESOLVED: The present Article XII, Rule 56,

Meetings of Members, states:

WHEREAS Section 11 and Regulations 41 of the Cooperative

Societies Act and Regulations respectively

provide for the amendment of the Co-operative Society’s

Rules;

(i)

The supreme authority in the Society is vested in the

General Meeting of members at which every

member has a right to attend and vote on all

questions.

WHEREAS Article XXIV, Rule 77 allows for amendments

to the Rules of the JPS & Partners Co-operative Credit

Union Limited;

WHEREAS ARTICLE IX Rule 44, ARTICLE X Rule 51,

Article XII, Rule 56, Rule 60 and Rule 61 is being proposed

for amendments in the Rules of the JPS & Partners Cooperative

Credit Union Limited; and

(ii)

The first general meeting of members after the

registration of the Society shall be called the First

Annual General Meeting, and shall have the same

powers as are herein given to the Annual General

Meeting.

Be amended to include the following additional sub-rules

to Rule 56:

WHEREAS it is being proposed that meetings of members

may be conducted by attendance at a physical location,

or by virtual-only or by hybrid-meeting; and

WHEREAS electronic attendance shall be construed as if

the members were present at the physical location where

the meeting is being convened;

WHEREAS members attending meetings through

electronic media shall constitute the quorum for a legally

convened meeting of members of the Society; and

WHEREAS The Co-operative Societies (Amendment)

Regulations 2021 dealing with the holding of general

meetings and meetings of the Committee in co-operative

societies were promulgated on the 15th January 2021;

WHEREAS JPS & Partners Co-operative Credit Union

Limited has agreed to adopt and accept all the

interpretations so ascribed under the said regulations and

intends that all amendments hereunder proposed are to

be operational immediately and binding upon members,

(iii)

(iv)

References to a “meeting” shall mean a meeting

convened and held in a physical location only or one

held virtual-only or in a hybrid manner through a

combination of both a physical and electronic

communication system. Members shall be deemed

to be present at the meeting for all purposes of the

Rules, applicable laws, and the Co-operative

Societies (Amendment) Regulations, 2021 and said

attendance shall be construed to allow the members

present in any one of these fora to attend and fully

participate in such meetings.

A member’s participation in the business of a

general meeting shall include without limitation the

right to communicate, to vote, to have access to both

printed and electronic copies of all documents which

are required to participate in the business of the

meeting. Participation in such meetings shall

constitute presence in person at said meeting and

shall count towards the quorum and for all other

voting purposes.



Special Resolutions (Continued)

(v)

(vi)

(vii)

References to “electronic communication system”

shall include, without limitation, webcast, video or

any form of conference call systems (telephone,

video, web or otherwise) and other communication

of any sound, document, data or equipment which

support said communication system.

If a separate meeting place is linked to the main

place of a general meeting by an electronic

communication system, such member at the

separate meeting place shall be taken to be present

at the general meeting and entitled to exercise all

rights as if the member was present at the main

physical location.

All general meetings (including a Special or Annual

General Meeting, any adjourned meeting or

postponed meeting) may be held as a physical,

virtual-only or hybrid meeting.

(viii) A virtual-only or hybrid meeting may be held in

Jamaica or any other part of the world and at one or

more locations as may be determined by the Board

of Directors in its absolute discretion. However, the

principal place and time of such meeting shall be

construed to be held in the jurisdiction of Jamaica.

(ix)

Votes (whether by show of hands or ballot or by way

of poll) may be cast through or by electronic means

or otherwise, in keeping with the Co-operative

Societies (Amendment) Regulations, 2021.

BE IT RESOLVED THAT ARTICLE IX Rule 44 which now

reads:

The Credit Committee shall hold such meetings as the

business of the Society may require, and not less

frequently than once per month. Due notice of such

meetings shall be given to the other members of the

Committee by the Secretary.

ADD SUB RULES (i) and (ii) at Rule 44 to read:

(i)

(ii)

Any meeting of the Credit Committee may be held by

telephone conference call or other communications

equipment, including video conferencing technology.

Each person entitled to participate in the meetings

must consent to the meeting being held by that

system. The system so employed must provide

access to the meeting in a manner by which each

person attending can be properly identified and be

heard. The system must facilitate the recoding of

any vote or other action taken at the meeting.

For the purpose of determining the quorum and for

all other voting purposes, attendance at such

meetings shall constitute presence in person at the

meeting. For the purpose of this rule, the laws of

Jamaica shall apply to any meeting of the Credit

Committee and the meeting be deemed to take

place in Jamaica.

BE IT RESOLVED THAT ARTICLE X Rule 51 which now reads:

(x)

(xi)

If voting is to take place at the meeting, there must be

reasonable measures in place to verify that every

person voting at the meeting by means of electronic

communication system is sufficiently identified, and

the Secretary shall keep record of any vote or action

taken.

The provision of these rules shall apply, with

necessary modification, to hybrid meetings and

virtual-only meetings

The Supervisory Committee shall hold such meetings as

the business of the Society may require, and not less

frequently than once per month. Due notice of such

meetings shall be given to the other members of the

Committee by the Secretary.

ADD SUB RULES (i) and (ii) at Rule X to read:

(i).

Any meeting of the Supervisory Committee may be

held by telephone conference call or other

communications equipment, including video

conferencing technology. Each person entitled to

participate in the meetings must consent to the

meeting begin held by that system. The system so




(ii)

employed must provide access to the meeting in a

manner by which each person attending can be

properly identified and be heard. The system must

facilitate the recoding of any vote or other action

taken at the meeting.

For the purpose of determining the quorum and for

all other voting purposes, attendance at such

meetings shall constitute presence in person at the

meeting. For the purpose of this rule, the laws of

Jamaica shall apply to any meeting of the

Supervisory Committee and the meeting be deemed

to take place in Jamaica.

(v)

and to have access in hard copy or electronic form

all documents which are required to participate in the

business of a general meeting; and participation in

such a meeting shall constitute presence in person

at such meeting and shall count towards the quorum

and for all other voting processes.

References to “electronic communication system”

shall include, without limitation, webcast, video or

any form of conference call systems (telephone,

video, web or a combination of these and/or other

electronic means) and other communication of any

sound, document, and or other data.

BE IT RESOLVED that Article XII, Rule 56 which now reads:

(i)

(ii)

The supreme authority in the Society is vested in the

General Meeting of members at which every

member has a right to attend and vote on all

questions;

The first General Meeting of members after

registration of the Society shall be called the First

Annual General Meeting, and shall have the same

powers as are herein given to the Annual General

Meeting

(vi)

(vii)

If a separate meeting place is linked to the main

place of a general meeting by an electronic

communication system, such member present at the

separate meeting place shall be taken to be present

at the general meeting and entitled to exercise all

rights as if the members were present at the main

physical location.

All Meetings (including a Special or Annual General

Meeting, any adjourned meeting or postponed

meeting) may be held as a physical, virtual -only or

hybrid-meeting.

Be amended to read by adding the following additional

sentences after the current sentences:

(iii)

(iv)

References to a “meeting” shall mean a meeting

convened and held in a physical location only or via

virtual only and/or in a hybrid manner through a

combination of both a physical and electronic

communication system. Members shall be deemed

to be present at that meeting for all purposes of the

Rules, applicable laws, and the Cooperative

Societies (Amendment) Regulations, 2021 and said

attendance shall be construed to allow the member

present in any one of these fora to attend and fully

participate in any such meetings.

A member’s participation in the business of a

general meeting shall include without limitation the

right to communicate, to see and hear the

proceedings, to vote in person and/or electronically,

(viii) A virtual -only or hybrid-meeting may be held in

Jamaica and any part of the world and at one or

more locations as may be determined by the Board

of Directors in its absolute discretion; however, the

principal place and time of such meeting shall be

construed to be held in the jurisdiction of Jamaica.

(ix)

(x)

Votes (whether by a show of hands or ballot or by

way of a poll) may be cast through or by electronic

means or otherwise, in keeping with the Cooperative

Societies (Amendment) Regulations, 2021

If voting is to take place at the meeting, there must

be reasonable measures in place to verify that every

person voting at the meeting by means of electronic

communication system is sufficiently identified, and

the Secretary shall keep a record of any vote or

action taken.




(xi)

(xii)

The failure or inability of a member to attend or remain

in an Annual or Special General Meeting held in a

hybrid meeting or virtual-only meeting as a result of a

mistake or of events beyond the control of JPS &

Partners Co-operative Credit Union Limited shall not

constitute a defect in the calling of the Annual or

Special General Meeting and shall not invalidate any

decision, resolutions passed or proceedings taking

place or taken at that Annual or Special General

Meeting

The provision of these rules shall apply, with any

necessary modification, to hybrid-meetings and

virtual-only meetings.

BE IT RESOLVED THAT Article XII, Rule 60 which now

reads:

At least seven (7) days before the date of any Annual or

Special General Meeting, the Secretary shall post a notice

of the meeting in a conspicuous place in the office and

cause written notice thereof to be handed to each member

in person or mailed to each member at his address as the

same appears in the records of the Society.

BE AMENDED TO READ:

ADD SUB-RULE (iii) at Rule 61 to read:

(iii)

Where the meeting is held as a hybrid-meeting or

virtual–only meeting and during the meeting a

number of members participating, virtually, cease to

be able to participate in the meeting, at any time and

for any period during the meeting, in such numbers

that the quorum requirement for that meeting is not

met, all business transacted at that meeting,

including matters put to the vote and any resolution

passed, shall remain valid notwithstanding the

quorum requirements later not being met

BE IT RESOLVED THAT ARTICLE XXIV, RULE 77

(AMENDMENTS TO RULES) WHICH NOW READS:

These Rules may be amended by a resolution of the

members at the Annual General Meeting or Special

General Meeting called for the purpose by three-fourth

votes of those present and entitled to vote, provided a

copy of the proposed amendments together with a written

notice of the meeting shall have been sent to each

member or handed to him in person at least seven (7)

days before the said meeting. No amendment shall

become operative until it has been approved by the

Registrar in accordance with the Law.

(i)

(ii)

At least seven (7) days before the date of any Annual

or Special General Meeting, the Secretary shall post

a notice of the Annual or Special General Meeting in

a conspicuous place at the Head Office and each

Branch Office of the Society and a written notice of

the meeting is to be provided by either pre-paid mail

and/or electronic mail and/or postage links to access

the notice on the Society’s website and published in

at least one daily newspaper that is circulated and

printed in Jamaica.

Where an Annual or Special General Meeting is either

virtual -only or hybrid-meeting, the Secretary shall

cause the notice of the meeting to provide instructions

for attendance and participation, including voting by

members electronically, and an electronic link for

attendees.

BE AMENDED TO READ:

These Rules may be amended by a resolution of the

members at the Annual General Meeting or Special

General Meeting called in accordance with Article XII, Rule

56 (i) for the purpose by at least three-fourths of those

members present at the calling of either a Physical

meeting , Virtual -only meeting or at a Hybrid meeting,

provided that written notice of the meeting has been

posted in a conspicuous place at the Head Office and at

each Branch Office of the Credit Union and sent to each

member by electronic means or by pre-paid mail and

posted on the website of the Society and published in one

daily newspaper published and circulated in Jamaica at

least seven (7) days before the said meeting. No

amendment shall become operative until it has been

approved by the Registrar in accordance with the Act.




Moved by: ………………………………………… (Online)

Seconded: ………………………………………… (Online)

Date:

:……………………………………………

There were ……..Members present at the time of voting (in person) _______ (online) ________

Members voted for: : (In-person votes) _________ (Virtual votes) __________

Members voted against: : (In-person votes) _________ (Virtual votes) __________

Members abstained: : (In-person votes) _________ (Virtual votes) __________

Signed ............................................. .............................................

PRESIDENT

SECRETARY

SEAL OF THE CREDIT UNION



Resolutions

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.


National Anthem

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 2020

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