Credit Union Annual Report 2021 V2 - Flipbook - Page 82
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2021
22. Financial risk management (continued)
The Credit Union seeks to minimize the level of cash on hand and at bank (in the form of call accounts), through
effective budgeting and cash flow monitoring processes. Excess funds are placed with banks on term deposits at higher
yields of interest in order to maximize the return to the Credit Union. The terms of placement of the fixed deposits vary
and are staggered to ensure that the funds mature or roll over at varying dates to minimize the mismatching of cash
flows arising from loan repayments, future loan disbursements, taking into consideration anticipated withdrawals
from member’s deposits.
The loan portfolio comprises loans, issued at varying terms from 3 months to 35 years (2020: 3 months to 35 years).
As outlined above, all loans generally require a minimum level of members shares (loan to share ratio). For some
members with loans, access to members’ shares is generally restricted where the loan balance exceeds the members
share balance. The members’ shares available for withdrawal are limited to the amount of shares in excess of that
members’ loan. Notwithstanding this, there are a significant number of members with no loans, which represents the
most significant risk from a liquidity perspective. In the normal course of business these funds are available on
demand. However, as described in Note 9 the Board of Directors have the right to require members to provide up to
six months notice prior to withdrawal of those funds.
The table below presents the undiscounted cash flows payable and receivable by the Credit Union from the financial
instruments by remaining contractual maturities at the year-end.
July 31, 2021
Under Six
Months
Cash inflows
Cash on hand and at bank $
–
Fixed deposits
87,670,602
Securities at fair value
through P&L
–
Mortgages and personal
loans
27,405,760
$ 115,076,362
Cash outflows
Accounts payable and
accrued expenses
Members’ shares
Members’ deposits:
- Regular savings
- Term deposits
$
1,391,225
324,185,988
Six Months
to One Year
$
–
–
–
–
$
Five Years to
Ten Years
$
–
–
Over
Ten Years
$
Non-Fixed
Maturity
Total
–
–
$ 46,060,135
–
$ 46,060,135
87,670,602
–
–
–
–
2,781,773
2,781,773
21,652,216
$ 21,652,216
144,154,744
$ 144,154,744
122,314,522
$ 122,314,522
164,551,354
$ 164,551,354
–
$ 48,841,908
480,078,596
$616,591,106
$
–
3,848,374
$
–
–
$ 24,826,251
20,936,002
1,487,716
$ 348,000,931
$
–
279,913
4,128,287
Off-balance sheet cash
outflows
Loan commitments
$
$
–
Net exposure
$ (253,479,109) $ 17,523,929
20,554,540
One Year to
Four Years
–
24,826,251
–
$
$ 119,328,493
- 47 -
$
–
20,373,435
–
–
$ 20,373,435
$
–
$ 101,941,087
$
–
30,668,652
$
–
–
$
20,936,002
1,767,629
$ 427,997,556
1,391,225
403,902,700
–
–
$ 30,668,652
$
–
–
–
–
$
–
$ 20,554,540
$ 48,841,908
$ 168,039,010
$
$ 133,882,702