Credit Union Annual Report 2021 V2 - Flipbook - Page 72
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2021
19. Related-party transactions and balances
As a co-operative society the Credit Union only receives deposits from and lends money to members (Note 1). All staff
and individuals involved with the governance structures of the Credit Union are members. The Credit Union has
considered this fact pattern in the light of relevant accounting standards and has determined that related parties include
directors, employees and committee members. All transactions with related parties are subject to the same terms and
conditions and rates as those applicable to other members of the Credit Union.
Total remuneration earned by key management during the year was as follows:
Year ended July 31
2021
2020
Salaries and other short-term benefits
Defined contributions pension costs
$
196,396
12,146
208,542
$
$
$
198,162
12,146
210,308
During the November 2019 AGM, it was approved in accordance with Rule 36, that all directors and committee member
are eligible for a fixed honorarium where a fixed per meeting fee will be paid in the amounts of: $400 for chairman of the
board, $250 for all other directors, $125 for chairman of committees and $100 for members of committees. As such an
amount of $75,000 was accrued for the payments due to directors for the year ending July 31, 2021.
Related-party balances are disclosed in Notes 5, 8, and 9.
20. Commitments
As at July 31, 2021, the Credit Committee had approved a number of commitments for undrawn loans to a value of
$20,554,540 (2020: $20,046,314). The ECL on these undrawn loans is $6,684, the below table reflects the breakdown of
the ECL:
2021
Stage 1 – Mortgage loans
Stage 1 – Personal loans
$
$
4,303
2,381
6,684
2020
$
$
18,606
4,557
23,163
The Credit Union leases premises for its storage. The lease term is one year and expired at November 30, 2021. The
Credit Union currently pays $2,448 (2020: $2,100) per month. The Credit Union continued to occupy this leased
premises through the date of approval of these financial statements.
Credit Union entered into a lease agreement in January 2020 for its branch in Cayman Brac which will mature after three
years and renewable for another two years. The future lease payment for this non-cancellable lease contract is $14,850
within one year and $59,400 within five years.
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