Credit Union Annual Report 2022 - Flipbook - Page 75
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
20. Commitments
As at July 31, 2022, the Credit Committee had approved a number of commitments for undrawn loans to a value of
$12,675,436 (2021: $20,554,540). The ECL on these undrawn loans is $3,144, the below table reflects the breakdown of
the ECL:
2022
Stage 1 – Mortgage loans
Stage 1 – Personal loans
$
$
2,425
719
3,144
2021
$
$
4,303
2,381
6,684
The Credit Union leases premises for its storage. The lease term is one year and expired at November 30, 2022. The
Credit Union currently pays $2,616 (2021: $2,448) per month. The Credit Union continued to occupy this leased
premises through the date of approval of these financial statements. The future lease payment for this non-cancellable
lease contract is $31,392 within one year and $10,464 within five years
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 $21,037 within five years.
21. Capital management
The Credit Union’s objective when managing capital is to safeguard the Credit Union’s ability to continue as a going
concern in order to provide a return in the form of dividends to members. The Credit Union accepts deposits and shares
from members for various periods, and seeks to earn reasonable interest margins by investing these funds in loans to
members. In addition, the Credit Union seeks to maintain sufficient liquidity by investing excess funds in cash deposits
and short-term fixed deposits in order to meet all claims that might fall due in the ordinary course of operations.
As per Article XIV of the Rules, the net surplus of the Credit Union shall be applied as follows:
i.
at least 20% of net income shall be carried to the Reserve Fund in accordance with Article XIV (Note 10);
ii.
the remainder shall be utilized as the AGM may decide in any one or more of the following ways:
•
to pay to members a dividend not exceeding what is prescribed by Act (at present 6% per annum) on fully paid
shares provided that fully paid shares for any one month may include payment received within the first seven
days of that month;
•
to promote co-operative education among members; and for any social, charitable or cultural purposes, subject
to Section 36 of the Act;
•
to create any Special Reserve;
•
agreed to pay fees;
•
to create and maintain a Share Transfer Fund to be used as prescribed in Rule 15 and the By-Laws.
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