Annual Report 2020

JPS & PARTNERS CO-OPERATIVE CREDIT UNION LIMITED
Minutes of the 65th AGM (Continued)
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.
Your Financial Partner for Life 15 2020 Annual Report