Earl Grey Credit Union Limited
2014 Annual Meeting
2014 Annual Report
March 30, 2015
Proposed Agenda
Contents
Page
Proposed Annual Membership
Meeting Agenda …………………
1
1) Call to Order and Welcome
2014 Annual Membership Meeting
Minutes………………………………
3
2) Adoption of Agenda and Notice of
Meeting
Message from the Board……………
5
3) Minutes of Last Annual Meeting
About Earl Grey Credit Union …….
6
4) Business Arising from Minutes
Corporate Social Responsibility……
9
5) Adoption of Minutes
Corporate Governance………….......
Credit Committee Report………….
Nominations Committee Report…...
Audit Committee Report…………...
10
14
15
16
6) Message from the Board
7) Management Discussion & Analysis
8) Credit Committee Report
Code of Conduct & Market Code…… 17
9) Governance Committee Report
Management Discussion/Analysis…...
Balanced Scorecard………………..
Enterprise Risk Management……..
Capital Management……………….
Financial Performance……………..
Asset Growth Since 1953…………...
18
21
22
24
25
26
10) Audit Committee Report
11) Auditor’s Report and Presentation of
Financial Statements
12) Appointment of Auditors for 2015
Consolidated Financial Statements
Management Responsibility
Auditor’s Report
13) Adoption of Reports
14) Service Awards
15) New Business/Questions
16) Door Prize Draw
17) Adjournment
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MINUTES OF THE EARL GREY CREDIT UNION LIMITED
ANNUAL MEMBERSHIP MEETING
March 25, 2014
108 individuals attended the supper catered by the Community Hall ladies.
The meeting was called to order by President of the Board, Ivy Kiel at 7:05 p.m.
64 members were in attendance at the meeting.
President, Ivy Kiel asked for adoption of the proposed agenda.
Debbie Kothlow/Alison Smith
Moved the agenda be approved as presented.
Carried.
President, Ivy Kiel welcomed all members and guests and thanked them for their attendance.
President, Ivy Kiel presented the minutes of the Annual Membership Meeting held March 29, 2012.
Richard Fyfe/Sharon Wilde
Moved the minutes of the 2013 Annual General
Meeting held April 10, 2013 be adopted as
presented. Carried.
The following reports were presented, these reports dealt with all areas of the credit union operation for the
year:
Message from the Board – by Ivy Kiel, President
Management Discussion & Analysis – by Lynnette Houston, General Manager
Credit Committee Report - by Gary Schaffer
Nominations Committee Report – by Dawn Butz on behalf of Kristen Butz
Audit Committee Report – by Nadene Perry
External Auditor’s Message & comments –Tennille Wilde, VIRTUS Group
- Ms. Wilde provided an overview of what is included in the Credit Union Annual
Report Financials. She reviewed the roles and responsibilities. She complemented the
management and staff team on the extremely high quality of work as well as, the
Board’s hard work and commitment to the credit union.
Robin Wagner/Ingeborg Schmidt
Moved the appointment VIRTUS
Group as Auditors for 2014. Carried.
Alison Smith/Dawn Butz
Moved the reports be adopted as
presented. Carried
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Service Award Presentations:
Board members recognized for their service to the Organization and presented with gifts as tokens of appreciation:
Glen Ritter
– 3 years
Ivy Kiel
– 6 years
Kim McDougall
– 8 Years
Nadene Perry
–12 years
Lynnette Houston was recognized for her 40 years of employment service in the credit union system , eighteen of
which are with Earl Grey Credit Union and was presented with a gift as token of appreciation.
Door Prizes:
Gladys Johnson – 20,000 Choice Rewards
Richard Myer – $100.00 Earl Grey Credit Union Term Deposit
Birney Nixon – VIRTUS Group Door Prize Package
Guest Comments:
Scott Flavel, on behalf of the SaskCentral Board of Directors, congratulated the Earl Grey Credit Union on another
successful year.
Pam Scherle
_____________________________
PRESIDENT
Motion to adjourn at 7:50 pm
____________________________
SECRETARY
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Message from the Board
2014 followed the trend of the past few years with low interest rates and volatile markets, but the Earl Grey Credit
Union still managed to make a profit and continues to grow. We saw growth in our loan portfolio and continue to
monitor other areas. The growth in our loans came from increased business from our members as well as an increase
in the loans we purchased from other financial institutions. Our assets are at over 30 million and $2,477,647 in
reserves.
Credit Union Deposit Guarantee Corporation continues to increase credit union standards because of past problems in
the financial services industry, and increasing our capital continues to be a very important step to Earl Grey Credit
Union. We have invested in the future of Earl Grey Credit Union with the renovation to our building and continue to
retain our profits to build our capital. We are in the process of reviewing our technology plan and monitor the new
products being offered in the credit union system to address what is important to our members and financially viable
for Earl Grey Credit Union.
In 2014, we welcomed Alison Smith and Debbie Kothlow to our board which resulted in a full board
compliment. The board and General Manager would like to thank Deb Fiessel for her years of service on the
board. The board and General Manager hosted their annual "Role of the board information night" and it has proven
successful in educating members about our role and helping to fill vacancies on our board.
On behalf of the board I would like to thank the credit union members for their continued support, our professional
staff for their continued hard work and our dedicated board members.
Earl Grey Credit Union is proud to continue to be your member owned financial services organization and thank you
for your continued business.
As a board, we continue to look for member feedback. If you, as a member have any ideas, thoughts or suggestions
for the board, please do not hesitate to contact any one of us.
Respectfully submitted,
Ivy Kiel, President
On behalf of the Board of Directors
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About the Earl Grey Credit Union Limited
Earl Grey Credit Union Limited is an independent Saskatchewan credit union owned by our members. As at December 31, 2014
Earl Grey Credit Union Limited had 869 members.
Our credit union serves the communities of Earl Grey and surrounding area through one branch, an ATM and internet banking.
We provide a range of financial services including: deposit and cash, financial, agricultural, commercial, personal, mortgages,
on-line banking & card services.
Earl Grey Credit Union Limited is established under legislation of the Province of Saskatchewan, and is regulated by The Credit
Union Deposit Guarantee Corporation of Saskatchewan. We must comply with The Credit Union Act, 1998; The Credit Union
Regulations 1999; The Standards of Sound Business Practice; credit union bylaws and policy; and other applicable provincial
and federal laws. We provide regular reporting to The Credit Union Deposit Guarantee Corporation and are subject to periodic
risk-based examinations.
CREDIT UNION DEPOSIT GUARANTEE CORPORATION
ANNUAL REPORT MESSAGE 2014
January 2015
Deposits Fully Guaranteed
Credit Union Deposit Guarantee Corporation is the primary regulator for Saskatchewan
credit unions. The Corporation is given its mandate through provincial legislation, The Credit
Union Act, 1998, for the main purpose of guaranteeing the full repayment of deposits held
in Saskatchewan credit unions. The Corporation has successfully guaranteed the repayment
of deposits held in Saskatchewan credit unions for over 60 years. By guaranteeing deposits
and promoting responsible governance, the Corporation contributes to confidence in
Saskatchewan credit unions.
The Corporation will continue research and development to respond to regulatory changes
at the international and federal levels such as those for liquidity and capital requirements,
and accounting standards changes. We will engage with stakeholders and inter-jurisdictional
regulators to promote and advocate for common approaches to liquidity in support of a
strong and stable provincial credit union system.
In 2014 the Corporation completed a multi-year project to revise its supervisory framework.
The revised framework aligns with industry best practices and regulatory expectations,
including methodology to assess a credit union’s risks, risk management practices and
corporate governance. In 2015 credit unions will see the Supervisory Framework
implemented along with re-designed tools that correspond with the revised framework and
methodology.
The Corporation acknowledges that Saskatchewan credit unions have a long history of
holding themselves to high standards, and have demonstrated their willingness to adopt
credible, industry-based standards. This helps to ensure Saskatchewan credit unions can
successfully meet the challenges of a rapidly changing financial services industry and
increasing regulatory requirements.
For more information about deposit protection, the Corporation’s regulatory responsibilities
and its role in promoting the strength and stability of Saskatchewan credit unions, talk to a
representative at the credit union or visit the Corporation’s web site at www.cudgc.sk.ca.
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Co-operative Principles
As a true co-operative financial institution, Earl Grey Credit Union Limited acts in accordance with internationally recognized
principles of co-operation:
Voluntary and Open Membership
Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities
of membership, without gender, social, racial, political or religious discrimination.
Democratic Member Control
Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and
making decisions. Men and women serving as elected representatives are accountable to the membership. In primary cooperatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organized in a
democratic manner.
Member Economic Participation
Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is
usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed
as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their cooperative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their
transactions with the co-operative; and supporting other activities approved by the membership.
Autonomy and Independence
Co-operatives are autonomous, self-help organizations controlled by their members. If they enter to agreements with other
organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control
by their members and maintain their co-operative autonomy.
Education, Training and Information
Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can
contribute effectively to the development of their co-operatives. They inform the general public - particularly young people and
opinion leaders - about the nature and benefits of co-operation.
Co-operation among Co-operatives
Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through
local, national, regional and international structures.
Concern for Community
Co-operatives work for the sustainable development of their communities through policies approved by their members.
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Our Mission
As an independent credit union
 We strive to excel at satisfying the financial needs of our members on a fair and equal basis
 We strive to play a major role in the community
Our Values
Co-operative Principles
Our independent credit union is member owned and controlled. We believe all members have the right to fair and
equal treatment.
Financial Strength
We are a financially sound organization with the flexibility to deal with change and ensure long-term service to our
community. We provide reasonable financial returns to members and the credit union as a whole.
Product and Service Excellence
Our credit union is committed to providing access to a broad range of products and services that best meet members’
financial requirements. We focus on personal, face-to-face service, while also offering technological solutions to
ensure our members can access our services in a seamless manner.
Professional Conduct
We communicate in an open, effective and timely manner. Members’ financial affairs are conducted with integrity
and in a professional manner. Confidentiality is integral to the way we do business. We manage our risk with
compliance to the Standards of Sound Business Practices as prescribed by Credit Union Deposit Guarantee
Corporation.
Satisfaction
We have a positive working environment where we recognize and reward our employees and Board for dedication
and creativity that contributes to our success. We support development, providing educational training, enhancing cooperation and teamwork to achieve objectives. We respect the need to balance personal and professional lives.
Leadership
We take a leadership role in actively supporting community projects.
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Corporate Social Responsibility (CSR)
Earl Grey Credit Union has always been committed to socially responsible leadership maintaining a long standing
commitment to improving the well-being of our community beyond the financial and economic role that financial
institutions play. The Earl Grey Credit Union Limited annual budget includes provision for a donations budget of 5%
of budgeted net income, for 2014 - $8,600.The following list is not a complete list, but rather just some examples of
community events, organizations and charities supported by the Earl Grey Credit Union Limited in 2014:
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Earl Grey Fire Volunteer Department - $2,000.00 re: Truck
Grade Twelve Scholarship $750.00 – Robert Southey High School
Southey Spray Park - $1,500
Carlton Trail Regional College Scholarship - $250.00
Eddy Golf Club
Earl Grey Ball Park
Earl Grey Community Hall
Earl Grey Community Curling and Skating Rink
Earl Grey Parkland Regional Library
Last Mountain District Music Festival
Southey Community Rink
Snow Leopard’s Snowmobile Races
Legion Remembrance Day
Loon Creek Wildlife Federation
Duval Optimist Club
Cupar and District Nursing Home
Robert Southey School S.A.D.D. Chapter
The Hospital Activity Book for Children partners with Make a Wish
If community investment funding is the fuel that helps Earl Grey Credit Union Limited support and sustain the
community then our employees and board of directors, who volunteer in the community, are the heart and soul that
give meaning and substance to our community investment activities. In 2014 their spent several hours of personal
time to support community based initiatives.
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