Canada Safeway Limited Employees
Savings & Credit Union Limited
2014
Annual
Report
History
Incorporated in “1952”, approximately the same time the other Safeway
Credit Union’s formed in the western Canadian provinces.
We are proud to be the last remaining Safeway Credit Union in
Canada and this year we are celebrating 62 years of service to our memberowners.
Vision Statement
To be the Financial Institution of choice for Canada Safeway Limited’s
current and retired employees and their immediate family members.
Mission Statement
We are here for our member-owners through all stages of their lives and will
provide exceptional service beyond their expectations.
Our Values
Member Service
Integrity
Fairness
Team Work
Respect
ONCE A MEMBER
ALWAYS A MEMBER
Agenda – 62nd Annual General Meeting
Canada Safeway Limited Employees
Savings & Credit Union Limited
FEBRUARY 10, 2015
1.
Registration of Members
2.
Establishment of a Quorum
3.
Introduction & Approval of Guests
4.
Appointment of Scrutineers
5.
Adoption of the Minutes of the Last Meeting
6.
Report of the Board of Directors
7.
Report of the General Manager
8.
Financial Statement Presentation & Auditor’s Report
9.
Report of the Credit Committee
10.
Report of the Audit and Finance Committee (ALCO)
11.
New Business
(a) Election of Credit Union Officers
(b) Question Period
12.Adjournment
Board of Directors Report 2014
On behalf of your Board of Directors, Management and Staff of your Credit Union,
welcome to the 62nd Annual General Meeting.
The financial industry continues to operate in a low interest rate environment.
The prime rate has not changed in four years. This is very beneficial to those who
wish to borrow, but not great for the investment side. It also limits profit margins
that financial institutions such as ours are able to make. That said, while the profit
garnered by the Safeway Credit Union from business activities during this past
year was reduced compared to previous years, the Safeway Credit Union remains
financially sound.
Our capital and liquidity positions continue to remain strong, above the
requirements of the Credit Union Deposit Guarantee Corporation, our regulator.
This past year we upgraded our banking system. This included some state of the art
technology for our back-up systems. We had the back-up systems independently
audited and tested with some great results. We also completed a risk assessment of our
entire banking and internal IT processes, which included all of our back up procedures.
To date, we have not had a conversation with the Sobeys executive but have had
ongoing discussions with Sobeys - Safeway operations executive. They have allowed
us to continue to market the Safeway Stores. We will be pursuing conversations
with Sobeys executive in the coming year, after their full conversion and year end
has taken place after May of 2015. This should give us a clearer picture as to what
strategies we can put into place for moving forward as a credit union.
The commitment of our members to our credit union and the dedicated work of
our staff is a testament of who we are, what we do and how well we do it.
As we move forward into 2015, the Board of Directors and Safeway Credit Union
Staff will continue to search out opportunities to improve our financial standing,
improve our efficiency and most importantly, remain committed to providing
each of you, the customer service you expect and deserve.
Thank you for your continued patronage.
Respectfully submitted by the
BOARD OF DIRECTORS
Barrie Schimpf, President
Ken Stewart, Vice President
Marla Clermont, 2nd Vice President
Colby Cavanagh, Director
Sandra Dobrowolski, Director
Shawn Eltom, Director
Rob Toews, Director –Chairperson, Audit & Finance (ALCO) Committee
Page 2
General Manager’s Report 2014
It is my privilege to welcome you to the 62nd Annual General Meeting.
2014 was not without its challenges. Our bottom line continues to be affected by
external pressures, such as the interest rates continuing at all-time lows, and other
economic factors. Even in this unstable environment, we were able to grow our
assets by 1.65%.
Our capital position remains strong at 15.90% of risk-rated assets, and our liquidity
is above the requirements of the Credit Union Act.
Our operating expenses continue to improve with the steady lowering of our costs
over the last 5 years.
Overall, we had some positive results in 2014. We were able to visit 32 Safeway store
locations in Calgary, and 16 store and plant locations outside the Calgary area,
in this past year. Feedback from the employees was positive, and we achieved a
net growth in our membership of 1.25%.
Most of you are aware that we implemented a Travel Notification for member
cards this past year. Don’t forget to notify us of your travel plans at least one week
prior to ensure you have access to your money and are able to use your MEMBER
CARD® debit card while you are away.
When you call, please let us know the countries/US states you are traveling to, and
the dates you will be away, and we will take care of the rest. We have been able
to eliminate debit card fraud since putting this program into place.
We are committed to making any necessary changes to support the transition to the
Safeway/Sobey’s environment so that we can continue to grow our Credit Union.
I would like to take this opportunity to thank my staff, who were instrumental in
helping to continue to provide the value-added service you, as members, are
accustomed to.
I would also like to thank the Board of Directors for their insight and support over the
last year. These dedicated individuals spend much of their personal time ensuring
our Credit Union is meeting the needs of its members.
Respectfully,
Cliff Roberts
General Manager
Page 3 Credit Committee Report 2014
The Credit Committee would like to welcome fellow members and guests to the
2014 Annual General Meeting and is pleased to report on the activity in the Loan
Department.
The Board of Safeway Credit Union is assigned lending limits by the Credit Union
Deposit Guarantee Corporation. In turn, the Board delegates responsibility for the
credit granting to the Credit Committee. The Credit Committee is responsible for
ensuring that loans are made in keeping with the lending policies and procedures
of the Credit Union. Loans in excess of the lending limits are forwarded to the
Credit Union Deposit Guarantee Corporation for approval.
During the year, the Credit Committee approved 1604 loans totaling $10,974,488.67,
consisting of personal loans, line of credits and mortgage loans. In addition, the
overdraft protection balance year ending October 31, 2014 was $476,999.52 for
total loans granted of $11,451,488.19.
Our delinquency at year end was 0%, and our write offs were targeted for less than
.50% of our loan portfolio. We achieved the lowest write-offs in the history of our
Credit Union of .21% of our loan portfolio or $28,038.46 (after recoveries).
This report is respectfully submitted on behalf of your Credit Committee with
appreciation for your continued support.
Credit Committee Members:
Cathy Bowes – Chairperson
Cindy Purvis
Anke Rotzal
Page 4
Audit & Finance Committee Report 2014
The Audit & Finance Committee (ALCO) held quarterly meetings and reported to
the Board after each meeting.
The Committee reviewed the scope of the external audit with Curtis Friesen, CA of
Hawkings Epp Dumont LLP, Chartered Accountants, prior to our audit.
All financial reports were reviewed by the Committee during the year.
The financial statements as at and for the year ended October 31, 2014, were
reviewed by the Committee and Hawkings Epp Dumont LLP, Chartered Accountants.
We can assure our members at this time that your affairs in this Credit Union are in
good standing.
Repectfully submitted on behalf of:
Rob Toews - Chairperson
Ken Stewart
Marla Clermont
Page 5 CANADA SAFEWAY LIMITED EMPLOYEES’
SAVINGS AND CREDIT UNION LIMITED
CALGARY, ALBERTA
SUMMARIZED FINANCIAL STATEMENTS
FOR THE YEAR ENDED OCTOBER 31, 2014
Page 6
Page 7 MANAGEMENT'S RESPONSIBILITY
FOR FINANCIAL REPORTING
To the Members of Canada Safeway Limited Employees' Savings and Credit Union Limited
Management has the responsibility for preparing the accompanying financial statements and
ensuring that all information in the Annual Report is consistent with these statements. This
responsibility includes selecting appropriate accounting principles and making objective
judgments and estimates in accordance with International Financial Reporting Standards and
the requirements of the Credit Union Act.
In discharging its responsibility for the integrity and fairness of the financial statements, as well as
for the accounting systems from which they are derived, management maintains the necessary
systems of internal controls designed to provide assurance that transactions are authorized,
assets are safeguarded and proper records are maintained.
The ultimate responsibility to members for the financial statements lies with the Board of Directors.
The Board appoints an Audit Committee to review the financial statements with management in
detail and to report to the Board prior to its approval to publish the financial statements.
The Board appoints external auditors to audit the financial statements and to meet with both the
Audit Committee and management to review their findings. The external auditors' report directly
to the members. The external auditors' have full and free access to the Audit Committee to
discuss their audit, as well as their findings concerning the integrity of the Credit Union's financial
reporting and the adequacy of its systems of internal controls.
Calgary, Alberta
December 11, 2014
Cliff Roberts
General Manager
Page 8
CANADA SAFEWAY LIMITED EMPLOYEES' SAVINGS AND CREDIT UNION LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT OCTOBER 31, 2014
2014
2013
ASSETS
Cash and cash equivalents
Investments (Note 5)
Income taxes receivable
Members' loans receivable (Note 7)
Deferred income taxes (Note 10)
Property and equipment (Note 8)
Intangible assets (Note 9)
$
921,191 $ 1,127,819
11,769,061
11,769,481
6,055
34,426,439
33,519,405
5,638
5,638
28,364
1,201
35,507
-
$ 47,192,255 $ 46,423,544
LIABILITIES
Accounts payable and accrued liabilities
Income taxes payable
Members' deposits (Note 11)
$
55,662 $
64,385
3,792
44,021,584
43,289,231
44,077,246
43,357,408
139,146
2,975,863
139,245
2,926,891
3,115,009
3,066,136
MEMBERS' EQUITY
Members' shares (Note 12)
Retained earnings
$ 47,192,255 $ 46,423,544
ON BEHALF OF THE BOARD:
Director
Director
Page 9 CANADA SAFEWAY LIMITED EMPLOYEES' SAVINGS AND CREDIT UNION LIMITED
STATEMENT OF NET INCOME AND COMPREHENSIVE INCOME
FOR THE YEAR ENDED OCTOBER 31, 2014
2014
2013
1,438,526 $
162,304
1,500,833
210,981
1,600,830
1,711,814
570,238
601,033
1,030,592
1,110,781
PROVISION FOR LOAN IMPAIRMENT (NOTE 7)
50,000
40,000
NET INTEREST INCOME AFTER PROVISION FOR
LOAN IMPAIRMENT
980,592
1,070,781
SERVICE CHARGES AND OTHER INCOME
LOAN RECOVERIES
261,823
44,745
279,928
11,419
NET INTEREST AND OTHER INCOME
1,287,160
1,362,128
OPERATING EXPENSES (SCHEDULE 1)
1,237,532
1,240,774
49,628
121,354
656
16,793
48,972 $
104,561
INTEREST INCOME
Interest from member loans
Investment income
$
INTEREST EXPENSE
Interest on member deposits
NET INTEREST INCOME BEFORE PROVISION FOR
LOAN IMPAIRMENT
INCOME BEFORE INCOME TAXES
INCOME TAXES (NOTE 10)
Current
NET INCOME AND COMPREHENSIVE INCOME
Page 10
$
CANADA SAFEWAY LIMITED EMPLOYEES' SAVINGS AND CREDIT UNION LIMITED
STATEMENT OF CHANGES IN MEMBERS' EQUITY
FOR THE YEAR ENDED OCTOBER 31, 2014
Members'
Shares
BALANCE, OCTOBER 31, 2013
$
Net income and comprehensive income
Issuance of member shares
Redemption of member shares
BALANCE, OCTOBER 31, 2014
$
Retained
Earnings
139,245 $
2,926,891 $
209
(308)
48,972
-
139,146 $
2,975,863 $
Total
3,066,136
48,972
209
(308)
3,115,009
Page 11 CANADA SAFEWAY LIMITED EMPLOYEES' SAVINGS AND CREDIT UNION LIMITED
SCHEDULE OF OPERATING EXPENSES
FOR THE YEAR ENDED OCTOBER 31, 2014
Personnel
$
Occupancy
Rent
Janitorial
Depreciation
Security
Deposit guarantee assessment
Bonding
Security
Depreciation
Organization
Credit Union Central dues
Annual general meeting
General
Computer, cash and service charges
Professional fees
Marketing, advertising and education
Courier and postage
Stationery and supplies
Loan associated expenses
Telephone
Depreciation
Insurance
Travel
Business taxes and licenses
Miscellaneous
Equipment repairs and maintenance
Amortization of intangible assets
$
Page 12
2014
2013
622,211 $
605,659
141,365
5,062
-
135,552
5,080
7,014
146,427
147,646
60,700
10,131
7,192
-
59,000
9,102
6,492
1,804
78,023
76,398
23,732
3,581
23,115
5,557
27,313
28,672
228,241
28,600
26,959
16,936
15,219
12,423
7,948
5,880
5,609
4,962
4,102
3,262
2,193
1,224
264,997
28,210
17,207
14,128
12,916
7,339
6,759
6,606
5,847
3,761
4,570
5,937
4,122
-
363,558
382,399
1,237,532 $
1,240,774
Officers & Staff
Board of Directors
Barrie Schimpf, President
Ken Stewart, Vice-President
Marla Clermont, 2nd Vice President
Shawn Eltom, Director
Colby Cavanagh, Director
Sandra Dobrowolski, Director
Rob Toews, Director
Audit & Finance Committee (ALCO)
Credit Committee
Rob Toews - Chair
Cathy Bowes - Chair
Ken StewartCindy Purvis
Marla ClermontAnke Rotzal
Staff
Cliff Roberts, General Manager
Parin Ladha, Assistant Manager
Cindy Purvis, Administrative Assistant
Colette Weber, Office Supervisor
Wendy Mertick, Front End Supervisor
Lisa Ingham, Teller
Arlie Mahood, Teller
Loan Department
Cathy Bowes, Manager, Lending Services
Anke Rotzal – Loan Officer
Canada Safeway Limited Employees Savings and Credit Union
1822 – 10th Avenue S.W. Calgary, Alberta T3C 0J8
Telephone: 403.261.5681
Fax: 403.261.5748
Toll free (AB & BC): 877.723.2653
Office hours: Monday to Friday from 8:00am to 4:30pm
info@safewaycucalgary.com | www.safewaycucalgary.com