Credit Union Annual Report 2021 V2 - Flipbook - Page 71
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2021
14. Dividends paid/payable
On November 25, 2020, at the AGM in respect of the year ended July 31, 2020, the members resolved to pay a
dividend of 2.8% or $8,147,484 (2019: 3.5% or $8,871,432) This was satisfied by way of appropriation of funds from
the Undistributed Surplus and was recorded in the financial statements for the year ended July 31, 2021.
15. Loan interest rebate/payable
In 2021 a 2% (2020: 3%) loan interest rebate was accrued in amount of $350,000 (2020: $330,000) and is recorded
as a debit to loan interest income and a credit in accounts payable and accrued expenses.
16. Services fees – cash advances
The Credit Union offers cash advances to members whereby members can obtain an unsecured payroll advance, which
are repayable in full within one month from date of grant. Subject to certain qualifying criteria and conditions,
the members are permitted to obtain a cash advance up to 50% of their monthly salary less any loan payments to be
repaid in the following month.
The Credit Union does not charge any interest on cash advances, but levies a service fee of 10% (2020: 10%) of the total
value of the sum advanced. During the year ended July 31, 2021, the cash advance fees earned was $267,620
(2020: $338,901) and is included within interest income – service fees cash advances, in the Statement of
Comprehensive Income.
17. Member beneficiary benefits
Until May, 2018, the Credit Union paid for life insurance coverage at a rate of US$0.37 per US$1,000 per month on
member savings (shares and deposits) (“Life Savings”), up to a maximum of US$20,000 held in members savings per
member, and loans (“Loan Protection”) up to a maximum of US$40,000 in loans per member, through the Credit Union
National Association Mutual Insurance Society (“CUNA”), based in the United States of America. Subject to qualifying
criteria and terms and conditions, the maximum value of the insurance on member’s savings is US$20,000 or
equivalent, and the maximum value of the insurance on loans is US$40,000 or equivalent. The Credit Union will continue
to provide the same Life Savings and Loan Protection benefits based on profitability and as approved by the Board on a
case by case basis. During the year, the Credit Union paid $418,871 (2020: $271,322) in beneficiary benefits. The
program with CUNA was discontinued at end of June 2018.
18. Pension plan
The Credit Union and its employees make contributions (7% and 3% respectively) to a defined contribution pension plan
regulated in the Cayman Islands. During the year, the Credit Union made $278,018 (2020: $231,827) in pension
contributions and this amount is included in salaries and other personnel costs in the Statement of Comprehensive
Income.
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