2014 Annual Report
Mission Statement
To assist our members in reaching their unique financial goals by offering
competitive rates and the highest quality of professional and accessible
service with a personal touch.
Vision Statement
To be our members’ first choice for financial services
Shell Employees’ Credit Union Limited
2014 Annual Report
Table of Contents
Agenda .......................................................................................................... Page 2
Previous Meeting Minutes ........................................................................... Page 3
Report of the Board of Directors ................................................................. Page 8
Report of the Audit Finance Committee .................................................... Page 12
Report of the Credit Committee ................................................................. Page 16
Financial Statements .................................................................................... Page18
Calgary Staff
Standing in back, from left to right:
John Knight, Victor Petersen, Dennise Yambao, Michele Poirier, Bruce Wilson, Cindy Robertson, Kristina Kemp,
Darryl Hovanak, Brandy Beveridge, David Alexander, Elizabeth Snowball-Beggs, Shelley Scott
Standing in front, from left to right:
Badriea Taha, Natalia Wooldridge, Nasim Khatibi, Dawn Konynenbelt, Darcee Hurt, Lise Twiddy, Debbie Kwashuk,
Dorothy Lowrie
Not Pictured:
Melinda Deveyrac, Irma Baysic, Liz Spence-Noble, Maire-Line Fleming, Trisha Herbert
1
AGENDA
Shell Employees’ Credit Union Limited
Annual General Meeting
March 12, 2015
2
1. Roll Call
2. Declaration of Quorum
3.Introductions
• Board Members
• Staff
• Guests
4. Appointment of Scrutineers
5. Minutes of the Last Meeting (p.3)
6. Report of the Board of Directors (p.8)
7. Reports of the Audit Finance Committee (p.12)
8. Report of the Credit Committee (p.16)
9. Report of the Nominating Committee
10. Auditor’s Report & Presentation of Financial Statements (p.18)
11. Bylaw Amendments
12. Greetings from Guests
13. Service Awards
• Kristina Kemp: 5 years
• Lise Twiddy: 5 years
• Bruce Wilson: 10 years
• Dorothy Lowrie: 25 years
14. Door Prize Draws
15.Adjournment
MINUTES
Shell Employees’ Credit Union Limited
Annual General Meeting
March 6, 2014
Carriage House Inn
1. ROLL CALL
135 Members, 24 Guests, and 19 Non-members
2. DECLARATION OF QUORUM
A quorum was declared and the meeting was called to order at 6:08 pm by Margot Willison.
The National Anthem was sung by a capella group Altra Volta
3. INTRODUCTIONS
The President, Margot Willison, welcomed all Members and Guests and introduced the
Board of Directors.
The General Manager, Badriea Taha, introduced Credit Union Staff and Guests.
4. INTRODUCTION TO SPECIAL GUESTS
Margot Willison introduced our special guest, Lorraine Mitchelmore, Shell Country Chair.
5. APPOINTMENT OF SCRUTINEERS
The following individuals volunteered to be Scrutineers:
Danielle Gervais and Noel Amante.
Motioned by Margot Willison, seconded by Sarah Russell Crow
- CARRIED
6. MINUTES OF LAST MEETING
Margot Willison moved that the Minutes of the Annual General Meeting of March 7, 2013 be
accepted as presented, seconded by Dorothy O’ Neill.
- CARRIED
3
7. REPORT OF THE BOARD OF DIRECTORS
The President, Margot Willison, highlighted the Board of Director’s report outlining growth and income of the Credit Union. Margot Willison made the motion to accept the Report of the Board of Directors, seconded by Jennie Wolter.
- CARRIED
8. REPORT OF THE AUDIT FINANCE COMMITTEE
Christine Ng, Chair of the Audit Finance Committee, presented the highlights of the Report
for the Audit Finance Committee. Christine Ng moved that the Report of the Audit Finance
Committee be accepted as presented, seconded by Bruce Wilson. - CARRIED
Rummy Serediuk submitted a motion to request that more detailed information on the SECU’s
expenses be made available to members, online and on paper to be examined by members,
and that any increases over 5% be subject to a review. Lloyd Chrusch seconded this motion. -CARRIED
Dawn Middleton submitted a motion to amend the existing motion on the table, moving to
make the details of the SECU’s expenses available only online. This motion was seconded by
Barbara Veitch. -CARRIED
Dr. William Shortridge moved to redo the motion put forward by Rummy Serediuk’s– this
motion had no votes and thus was not moved forward.
9. REPORT OF THE CREDIT COMMITTEE
Nathan Turnbull, Chair of the Credit Committee, presented the Report of the
Credit Committee, highlighting the volume and dollar value of loans granted for 2013.
Nathan Turnbull moved that the Report of the Credit Committee be accepted as presented,
seconded by Guy Stuart.
4
10. REPORT OF THE NOMINATING COMMITTEE
Adam Battistessa advised that there were 248 ballots counted and no spoiled ballots.
Adam Battistessa announced that the following director terms were maturing:
Margot Willison
Huntley O’Neill
Tim Bancroft Liz Mah
Adam Battistessa announced the following members were nominated:
Prince Adeyemi
Huntley O’Neill
Jason Anderson, CA
Issa Sabbah
Stephen DeLude
Belinda Simpson
Rebecca Nadel
Adam Battistessa announced the new Board of Directors elected by member vote:
Stephen DeLudeHuntley O’Neill
Rebecca NadelBelinda Simpson
Sarah Russell Crow motioned that the ballots be destroyed, seconded by
Danielle Gervais.
- CARRIED
11. AUDITOR’S REPORT & PRESENTATION OF FINANCIAL STATEMENTS
Michael Epp, External Auditor, presented the Auditor’s Report, Balance Sheet, Income
Statement, and Operating Expenses for the Fiscal Year ending October 31, 2013.
Debra Baranec moved that the Auditor’s Report and Financial Statements be accepted as
presented, seconded by Sarah Russell Crow. - CARRIED
12. BYLAW AMENDMENTS
Liz Mah presented the Bylaw amendments for approval.
Liz Mah moved that the bylaw amendments be approved as presented, seconded by Rummy
Serediuk. - CARRIED
5
13. GREETINGS FROM GUESTS
Margot Willison introduced Steve Dunn, Chief Technology and Payment Services, Credit Union
Central of Alberta.
Margot Willison introduced Sofie McCook, AVP Regulations and Risk Assessment, Credit
Union Deposit Guarantee Corporation.
14. STAFF SERVICE AWARDS
Dennise Yambao – 5 Years
15. DOOR PRIZE DRAWS
The following were winners of the door prizes:
• Bob Blakey – Wine set from Celero Solutions
• Olatunde Olatona - 2 Stagewest tickets from Bow Valley Insurance
• Trevor Hindmarch – Set of pens from Credential Asset Management
• Lorna Flack - $50 Best Buy Gift Cards from CRI Canada
• Bev Jacoby - $50 Best Buy Gift Cards from CRI Canada
• Brigida Battistessa – Digital Photo Frame from Credit Union Deposit Guarantee Corporation
• Walter Skrabek – Knife set from Alberta Central
• Jill Vandezande –Wind breaker from Genworth Financial
• Dixi Anderson – Golf balls from Genworth Financial
• Lance Rees - $100 The Keg Gift Card from Gibbons Law Office
• Linda Wilson - $100 Earls Gift Card from Harrison Bowker Real Estate Appraisers
• Carmine Valerio – Ceramic Vase from Hawking Epp Dumont LLP
• Jennifer Ebner – Knife set from Miller Thomson LLP
• Delores Habrun – Wine set and a bottle of wine from Miller Thomson LLP
• Chris Geddes – Wine aerator from Miller Thomson LLP
• Doug Komery - $100 MasterCard from Qtrade Investor
• Don Vandezande - $50 Tim Horton’s Gift Card from Concentra
• Cory Eliuk – Bottle of wine from NEI Investments
• Jack Marr – Bottle of wine from NEI Investments
• Audrey Shortridge – Vase of flowers from Shell Employees’ Credit Union
• Lloyd Chrusch – Vase of flowers from Shell Employees’ Credit Union
• Stan Dalidowicz - $100 The Keg Gift Card from McLennan Ross LLP
6
• Imelda Cervantes – Sports Bag from McLennan Ross LLP
• Lois Rees – Emergency road kit from CUMIS
16. 60TH ANNIVERSARY DIAMOND DRAW WINNER
• Jennifer Hoffman
17.ADJOURNMENT
On a motion by Imelda Melnyk and seconded by Dana Turnbull the meeting was adjourned
at 8:02.
7
2013-2014 BOARD OF DIRECTOR’S REPORT
Despite another year of low interest rates in the market, the Shell Employees’ Credit Union (SECU)
closed the year positively, showing an overall profit of $778k before taxes, and the return of a 4%
dividend to its members, for a total payout of $209K.
The summarized, year-over-year results were:
• Total Member Assets increased by 0.6% to $267M vs budget of $265M
• Deposits by Members remained relatively flat at $249M vs budget of $248M
• Loans to Members increased by 6.1% to $223M vs budget of $217M
• Membership grew by 1.1% in 2014 to 6080 members vs budget of 6169.
The SECU continues to maintain a conservative business model due to the ongoing instability of
the global financial industry and extremely low interest rates. We continue to make sure that our
business strategies and activities are aligned and congruent with a low margin operation. The
board continues to provide overall governance, risk management and ongoing regulatory reviews
to ensure that we are well positioned to maintain robust, responsive, ongoing operations.
The review of the ICAAP (Internal Capital Adequacy Assessment Process) requirements supporting
a strong capital growth program is one example of the oversight provided by your board.
8
On an inception-to-date basis, 168 members have contributed up to the maximum of $5,000 into
their common share account, which accounts for almost $1.02M into the equity of the SECU in
only four years. This improves our capital base, particularly when capital growth is expected by our
regulator.
Our move and grand opening in Shell Centre back in December 2012 has had the following
impacts with increased business and member penetration, as well as a self sustaining ATM
machine. The Shell Centre branch has proven to enhance visibility, a re-establishment of a
closer bond with Shell, steady growth, more income, and a positive bottom-line impact. We
have enjoyed more referrals, more opportunities to meet with Shell Employee Networks, and an
improved “Shell Onboarding” experience.
The enhanced visibility of being located on the main floor of Shell Centre has not only helped our
bottom line, but has also helped us to recruit and attract diverse, top talent to our board, which in
turn provides heightened governance, engagement, and oversight of our business.
Loans
Deposits
Membership
% change
6.1%
0.2%
3.8%
change
$12.8M
$371K
223
The downside of the move continues to be the inability to sublet our previous office space due
to a slow commercial rental market. SECU Management continues to work with the realtors and
the management company to find alternatives to offloading this unused space and the associated
costs.
2014 saw us calling upon our membership and the Shell population at large for potential tenant
leads. Advertisements offering a cash bonus for successful referrals were placed on public ad
spaces, on the Shell Intranet, our Credit Union website, and at strategic locations within the Shell
building, which did generate a few promising leads but to date have produced no formal contract.
We remain persistent and optimistic that the right tenant will be found with the help of our
broker, and of course through word of mouth from you – our members.
9
The Board and Management also reviewed and improved the SECU Employee Value Proposition
by offering a staff loan rate, better physical working conditions, pension benefits and vacation
entitlements, and additional training and succession planning for key positions. This allowed the
SECU to attract and retain key talent in the Wealth Management and Lending areas to augment
the existing strong staff complement working at the SECU
We made significant progress to sustain the Credit Union’s future talent and governance. The
Alberta Young Leaders (AYL) program provides a network and roadmap to develop and enhance
the skills of future Credit Union Leaders. We have the unique privilege of having 2 of our SECU
staff members: Dennise Yambao and John Knight who are participating in their 2nd year of the
AYL program. Kristina Kemp will be starting her 1st year in the program and is very excited to be
extended this opportunity.
Another highlight was SECU’s receipt of industry recognition with an award for our leadership
development from the Alberta Community and Co-operative Association (ACCA), related to the
Director Trainee program. Two of these Director Trainees have subsequently been elected to serve
the members on the SECU Board.
The marketing committee and management continued to enhance the quantity and quality of
offerings and engagements for members (and members-to-be!) throughout the year by holding
plant visits to Albian, Shantz, Peace River, Caroline, and Burnt Timber, implementing etransfers
and Direct Security Alerts to mobile customers, and communicating through various channels
including newsletters, articles in the alumni magazine, My News on Shellnet, the Shell Centre
elevator TVs, and participation at Shell events including the United Way Auction, SELF Learning
Event and African and Hispanic Network Lunch & Learn.
Last year, we revamped our packaged accounts, which also saw the introduction of the very wellreceived Regular and Premium (High-Interest) Savings options. As well, a revitalized version of
the Visions (Youth) account was introduced to now include unlimited free transactions while still
paying interest to our young savers.
2014 was also marked with some very successful campaigns, particularly, our Valentine’s Day
promotion, which brought about $7.1 million dollars in new money over a campaign period of 75
days. We continued with our regular plant and site visits across Alberta, which has so far resulted
in $2.5 million dollars in new lending business, and our constant presence remains at the twice10
monthly onboarding sessions to welcome new Shell hires held in Calgary Place.
We have finalized the Scotford branch move into the Chemicals Administration Building to further
enhance our presence where members do not need a full security and safety briefing before
entering into our branch, improving convenient access for members.
Initiatives such as the Ambassador Luncheon and the Best Kept Secret promotion sought to
reinforce that one of the primary avenues for membership growth is through member referrals.
Our staff also placed a heightened emphasis on community involvement, sponsoring and serving
breakfast at the Calgary Drop-In Centre, donating toys to the Ronald McDonald house, adopting a
Calgary Family for Christmas, and volunteering at Shell events such as the Stampede Breakfast.
We continue to see training and development of Board and Staff as a high priority and
commitment. In 2014, all board members completed mandatory Anti-Money Laundering
training and three board members completed a Credit Union Director Achievement course while
management and board members participated in numerous conferences throughout the year.
Conference
Alberta Central AGM
Alberta Central Fall Conference
Canadian Central AGM and Conference
Number of Attendees
5 Attendees
2 Attendees
2 Attendees
I would like to thank our members for their support through this past year as we continue to grow
and blossom in our new Shell Centre space. I would also like to recognize all of the dedicated,
committed, hard-working Board Members, Management and Staff for ensuring the successful,
ongoing operations of the Shell Employees’ Credit Union.
Adam Battistessa
President
Board of Directors
11
REPORT OF THE AUDIT FINANCE COMMITTEE
The purpose of the Audit Finance Committee is to provide for an independent review of the Shell
Employees’ Credit Union’s operation. Specifically, the Committee provides assurance around the
integrity of the financial data, adequacy of financial controls and overall adherence to sound
business practices. To fulfill this mandate, the Committee meets throughout the year to evaluate
the financial reporting and performance of the business as well as reviewing internal and external
audit results, including management’s responses to any reported deficiencies. The Committee
reports its activities to the broader Board as a part of every regular Board Meeting.
During this past year three audits were undertaken by Alberta Central Audit Services. In addition,
the Financial Transactions & Reports Analysis Centre of Canada (FINTRAC) did a review of the
Credit Union’s compliance against Anti-Money Laundering regulations. While the Credit Union’s
overall controls are good, the FINTRAC review, along with the Alberta Central audits highlighted a
specific gap in compliance against Anti-Money Laundering requirements. Both increased diligence
and training of staff along with investment in compliance tools will be needed over the coming
year to ensure the Credit Union is able to effectively comply with these ever increasing compliance
obligations. The board is confident these deficiencies will be adequately addressed moving
forward.
From an operating performance perspective, the Credit Union enjoyed another profitable year,
despite an extremely competitive external market. In terms of key highlights, the loan portfolio
grew by nearly $13 million year over year. Credit Union assets grew more modestly, at just over
$1 million, as the Credit Union primarily funded the increased loan activity by reducing surplus
investments. Deposit growth was also moderate coming in at $357,000 above the previous year’s
result.
12
Overall, financial margin growth was positive, particularly considering that the 2013 results
included a one-time patronage payment from Alberta Central of over $600,000. The Credit
Union’s operating expenses continued to be burdened by the lease obligation at the former
branch in the Altius building. Management continues to explore options for eliminating the
additional cost associated with this obligation. The competitive marketplace and low interest
rate environment continues to pressure the Credit Union’s ability to generate growth in the
financial margin. The management and Audit Finance Committee continue to be diligent in
its oversight of this important measure of profitability for the business.
13
Given the strong business result delivered by the Credit Union, members once again enjoyed a
dividend based on their common share ownership. This year’s payout reflects a dividend payout
of just over $209,000 or 4% on each common share.
In closing, the Credit Union management and staff delivered another profitable year of operation.
Members have the added benefit of enjoying competitive products, personal service and profit
14
sharing as well as having deposits and accrued interest 100% guaranteed through the Credit
Union Deposit Guarantee Corporation.
From a personal perspective, I’d like to thank the members of the Audit Finance Committee for
their active participation and oversight as well as the Credit Union’s management and staff for
delivering on a successful year.
Drew Harris
Chair
Audit Finance Committee
15
REPORT OF THE CREDIT COMMITTEE
Fiscal Year ending Oct 31 2014
The Credit Union’s loan portfolio was $223.42M at fiscal year-end, October 31, 2014. This
represents an increase of $12.7 M or 6% from 2013. We are pleased to see this continued loan
growth as we enjoyed our second year back in Shell Centre. Our membership from the various
sites across Alberta, notably Scotford and Albian were also major contributors to the increase in
our loan portfolio
In 2014 the Prime Rate remained flat at 3.00% as it has since September 2010. Competitive
interest rates and a strong housing sales market in the first half of the fiscal year facilitated the
increase in the residential mortgage portfolio. The increase in consumer loans was strong in 2014
due to increased demand for consolidation loans and vehicle purchases. Lines of credit decreased
slightly as this segment saw more pay down activity compared to previous years. The Credit
Union continued to participate in syndicated loans, which are joint lending agreements to finance
a credit request that exceeds another individual credit union’s lending limit. Syndicated loans earn
a strong return helping to offset low mortgage lending rates.
The annual volume variance in our loan products are categorized below:
16
•
•
•
•
Consumer Loans:
Lines of Credit:
Residential Mortgages:
Syndicated Loans:
$2.14 million ($160 thousand) $9.4 million $1.35 million 18.82%
0.31%
5.80%
54.9%
increase
decrease
increase
increase
The average loan rate was 3.44% for October 2014.
Loan write-offs for the year totaled $93,180 representing .0004% of the year end portfolio
balance. This past year and the 5 year average continues to be very low compared to industry
experience and is a result of the Credit Union’s low risk lending strategy. The Credit Union
management and the credit committee constantly monitor delinquent accounts, and staff work
promptly with members to resolve any delinquency issues.
I would like to take the opportunity to thank the Manager of Credit, the lending staff in our
Calgary and Scotford locations and members of the credit committee for their hard work and
dedication throughout the year.
Anthony Bessey
Chair
Credit Committee
17
HAWKINGS EPP DUMONT LLP
CHARTERED ACCOUNTANTS
INDEPENDENT AUDITOR’S REPORT
To the Members of Shell Employees’ Credit Union Limited
We have audited the accompanying financial statements of Shell Employees’ Credit Union Limited,
which comprise the statement of financial position as at October 31, 2014 and the statements
of net income and comprehensive income, changes in members’ equity, and cash flows for the
year ended October 31,2014, and the related notes, which comprise a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with International Financial Reporting Standards, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are
free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with Canadian generally accepted auditing standards. Those
standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, we consider internal controls
relevant to the entity’s preparation and fair presentation of the financial statements in order to
18
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position
of Shell Employees’ Credit Union Limited as at October 31, 2014 and its financial performance
and cash flows for the year then ended in accordance with International Financial Reporting
Standards.
Edmonton, Alberta
January 20, 2015
EDMONTON
Mayfield Square 10476- Mayfield Rd
Edmonton, AB
TSP 4P4
T: 780.489.9606
F: 780.484.9689
STONY PLAIN
#101, 5300 -50 Street PO Box 3188, Station Main
Stony Plain, AB
T7Z 1T8
T: 780.963.2727
F: 780.963.1294 HAWKINGS EPP DUMONT LLP
Chartered Accountants
LLOYDMINSTER
5102 - 48 Street
PO Box 10099
Lloydminster, AB
T9V 3A2
T: 780.875.7433
F: 780.875.5304
hawkings.com
19
MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING
These financial statements were prepared by the management of Shell Employees’ Credit Union
Limited who are responsible for their accuracy, completeness and integrity. They were developed
in accordance with the requirements of the Credit Union Act of Alberta and to conform in all
material respects with International Financial Reporting Standards.
Systems of internal control and reporting procedures are designed to provide reasonable assurance
that the financial records are complete and accurate so as to safeguard the assets of the Credit
Union. These systems include establishment and communication of standards of business conduct
throughout all levels of the organization to provide assurance that all transactions are authorized
and proper records are maintained. Internal Audit provides management with the ability to assess
the adequacy of these controls. Further, they are reviewed by the Credit Union’s external auditors.
The Board of Directors has approved the financial statements. The Board, comprising fourteen
directors who are not officers or employees of the Credit Union, has reviewed the statements
with the external auditors, in detail, and received regular reports on internal control findings.
Hawkings Epp Dumont LLP, the external auditors appointed by the membership, have examined
the financial statements of the Credit Union in accordance with Canadian generally accepted
auditing standards. They have had full and free access to the Internal Audit staff, other
management staff, and the Audit and Finance Committee of the Board. Their report appears
herein.
Calgary, Alberta
January 20, 2015
Badriea TahaBruce Wilson
General ManagerController
20
STATEMENT OF FINANCIAL POSITION
2014
ASSSETS
$
Cash and cash equivalents (Note 5)
Investments (Note 6)
Member loans (Note 8)
Taxes receivable
Property and equipment (Note 10)
Intangible assets (Note 11)
Derivative assets (Note 7)
Other assets (Note 9)
2013
—
41,996,217
223,607,744
45,652
786,925
189,469
314,702
62,008
$267,002,717
$
478,854
250,679,228
314,702
285,811
23,289
$ 251,781,884
$
—
250,126,997
252,970
371,730
40,000
$ 250,791,697
$
$
4,058,896
49,057,237
210,818,136
51,138
898,015
253,430
252,970
80,108
$265,469,930
LIABILITIES
$
Bank indebtedness (Note 5, 12)
Member Deposits (Note 13)
Derivative liabilities (Note 7)
Accounts payable and accrued liabilities
Deferred income tax lilability (Note 14)
MEMBER’S EQUITY
Dividends distributable (Note 15)
Common shares (Note 15)
Retained Earnings
209,086
5,291,820
9,719,927
15,220,833
$ 267,002,717
209,866
5,208,559
9,259,808
14,678,233
$ 265,469,930
Commitments (Note 17)
Director
Director
The accompanying notes are an integral part of these financial statements.
21
STATEMENT OF NET INCOME AND COMPREHENSIVE INCOME
FOR THE YEAR ENDED OCTOBER 31,2014
2013
2014
INTEREST INCOME
Interest from member loans
Investment income (Note 21)
$
7,658,963
899,044
8,558,007
INTEREST EXPENSE
Interest on member deposits
Interest on financing
NET INTEREST INCOME BEFORE PROVISION
FOR LOAN IMPAIRMENT
PROVISION FOR LOAN IMPAIRMENT
(NOTE 8)
NET INTEREST INCOME AFTER PROVISION
FOR LOAN IMPAIRMENT
OTHER INCOME
3,948,862
3,875,088
97,881
74,329
3,850,981
3,800,759
4,294,156
OPERATING EXPENSES (SCHEDULE I)
3,515,810
NET INCOME AND COMPREHENSIVE INCOME
778,346
173,546
(16,711)
156,835
$
The accompanying notes are an integral part of these financial statements.
22
4,644,773
406
4,645,179
NET OPERATING INCOME
INCOME TAXES (NOTE 14)
CURRENT
DEFERRED (RECOVERY)
7,058,432
1,461,835
8,520,267
4,600,384
8,761
4,609,145
443,175
INCOME BEFORE INCOME TAXES
$
621,511
385,146
4,185,905
3,345,629
840,276
208,800
7,400
216,200
$
624,076
STATEMENT OF CHANGES IN MEMBERS’ EQUITY
FOR THE YEAR ENDED OCTOBER 31, 2014
Balance, October 31, 2012
Net Income
Dividends Paid
Dividends declared
Tax recovery on dividends paid
Issuance of shares
Redemption of shares
Balance, October 31, 2013
Net income
Dividends paid
Dividends declared
Tax recovery on dividends paid
Issuance of shares
Redemption of shares
Balance, October 31, 2014
DIVIDENDS
DISTRIBUTABLE
COMMON
SHARES
RETAINED
EARNINGS
TOTAL
$ 216,928
$ 5,070,832
$8,795,207
$ 14,082,967
—
(216,928)
209,866
—
—
—
—
238,796
—
—
139, 056
(240,125)
624,076
(25,995)
(209,866)
76,386
—
—
624,076
(4,127)
—
76,386
139,056
(240,125)
$ 209,866
$ 5,208,559
$ 9,259,808
$ 14,678,233
—
(209,866)
209, 086
—
—
—
—
208, 369
—
—
109, 314
(234,422)
621, 511
720
(209, 086)
46, 974
—
—
621, 511
(777)
—
46, 974
109, 314
(234, 422)
$ 209, 086
$ 5,291,820
$ 9,719,927 $ 15,220,833
The accompanying notes are an integral part of these financial statements.
23
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED OCTOBER 31, 2014
2014
OPERATING ACTIVITIES
Net income
Adjustments for
Provision for loan impairment
Depreciation of equipment
Amortization of intangible assets
Net interest income
Current income tax expense
Deferred income taxes
Change in other assets
Change in accounts payable and accrued liabilities
Interest received
Interest paid
Income taxes paid
$
621,511
624,076
74,329
114,275
63,140
(3,875,088)
208,800
7,400
(17,983)
95,707
8,533,210
(4,717,553)
(96,734)
1,083,986
1,013,579
83,980
(780)
(209,086)
357,051
46,974
111,733
(7,062)
(209,866)
467,821
76,386
278,139
439,012
(20,931)
(3,425)
6,998,856
(12,874,915)
(837,402)
(48,254)
(9,057,948)
(7,320,577)
(5,899,875)
(17,264,181)
(4,537,750)
(15,811,590)
4,058,896
19,870,486
INVESTING ACTIVITIES
Purchase of property and equipment
Purchase of intangible assets
Net change in investments
Net change in member loans
CHANGE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR
$
The accompanying notes are an integral part of these financial statements.
24
$
97,881
131,481
67,385
(3,948,862)
173,546
(16,711)
18,100
(85,917)
8,607,597
(4,413,965)
(168,060)
FINANCING ACTIVITIES
Change in common shares
Change in dividends payable
Dividends payable
Change in member deposits
Tax recovery on common share dividends
CASH AND CASH EQUIVALENTS
(BANK INDEBTEDNESS), END OF YEAR
2013
(478,854)
$
4,058,896
BOARD OF DIRECTORS
PICTURED:
Standing, from left to right: Drew Harris, Adam Battistessa, Huntley O’Neill, Saeed Kangarloo, Stephen Delude
Sitting, from left to right: Rebecca Nadel, Sarah Russell Crow, Belinda Simpson
COMMITTEES:
EXECUTIVE
Adam Battistessa, President
Sarah Russell Crow, 1st Vice President
Huntley O’Neill, 2nd Vice President
AUDIT FINANCE
Drew Harris, Chair
Christine Ng
Stephen DeLude
Rebecca Nadel
Duncan Carey
Haritha Devulapally, DIT
CREDIT
Tony Bessey, Chair
Duncan Carey
Drew Harris
Belinda Simpson
RISK
Nathan Turnbull, Chair
Saeed Kangarloo
Belinda Simpson
Stephen DeLude
MARKETING COMMITTEE
Christine Ng, Chair
Saeed Kangarloo
Tony Bessey
Rebecca Nadel
Haritha Devulapally, DIT
DIRECTOR TRAINEE
Haritha Devulapally, DIT
25
CALGARY OFFICE
117, 400 - 4TH AVE. S.W.
CALGARY, AB
T2P 0J4
SCOTFORD OFFICE
55520 RR 214
P.O. BAG 22
FORT SASKATCHEWAN, AB
T8L 3T2
PHONE: 1.403.718.7770 OR
TOLL FREE ALBERTA: 1.877.582.6222
FAX:
1.403.262.4009
PHONE: 1.780.992.3578,
1.780.992.3978 OR 1.780.992.3061
FAX:
1.780.992.3523