Credit Union Annual Report 2022 - Flipbook - Page 76
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
21. Capital management (continued)
In order to maintain or adjust the capital structure, the Credit Union may, by way of resolution of the members at the
AGM, adjust any of the matters specified in (ii) above.
Management consider that the Credit Union has complied with these requirements during the years ended July 31,
2021 and 2022.
The capital of the Credit Union is defined as the Reserves as shown on the Statement of Financial Position.
22. Financial risk management
The Credit Union’s activities expose it to a variety of financial risks including credit risk, liquidity risk, market risk and
geographic concentration risk.
i.
Introduction and overview
The business of the Credit Union is overseen by the Board of Directors. The Board alon g with independently
elected committees (Supervisory and Credit) is responsible for the adherence with the Act, the Rules, and
established policies and procedures. All committees report regularly to the Board on their activities. The Board
has the general direction and control of the affairs of the Credit Union and more particularly, act for the Credit
Union and provide for the management and development of the Credit Union. The Board meets as often as the
business of the Credit Union may require, and in any case not less frequently than once per month.
The Supervisory Committee is responsible for the monitoring of any deviations from the Rules, established policies and
procedures via Internal Audit and Risk and Compliance. The activities of the Supervisory Committee include the
inspections of securities, cash and accounts of the Credit Union, examination of the affairs of the Credit Union and
investigating any complaints made by members affecting the proper running of the Credit Union. In the process of its
examinations and audits, the Supervisory Committee can examine all applications for loans made during the period
under examination and satisfy itself that the loans have been issued in accordance with the established policies and
procedures. The Supervisory Committee is required to send a report of its activities to the Board quarterly. These
responsibilities are substantively carried out by an Internal Audit Manager and Chief Risk and Compliance Officer who
report directly to the Supervisory Committee with administrative line to the CEO.
The Credit Committee is given the responsibility for the oversight of the Credit Union ’s credit risk and the
development of credit policies. The Credit Committee through the Loans Officer shall enquire into the character and
financial position of each applicant for loan and sureties, if any, to ascertain the member ’s ability to repay fully and
promptly the obligations incurred and to determine whether the loan sought is for a provident or productive purpose and
will be of probable benefit to the member. The Credit Committee shall also determine the amount of each loan and the
period of repayment based on the form and value of the security. The Credit Committee shall endeavour diligently to
assist applicants in solving their financial problems.
The Credit Committee shall hold meetings as the business of the Credit Union may require, and not less frequently than
once per month. Presently, the Credit Committee meets on a weekly basis. The Credit Committee records the actions of
each meeting through minutes which are forwarded to the Chief Executive Officer. The Chief Executive Officer sends a
report of the activities of the Credit Committee to the Board of Directors each month.
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