Credit Union Annual Report 2022 - Flipbook - Page 85
THE CAYMAN ISLANDS CIVIL SERVICE ASSOCIATION (CICSA)
CO-OPERATIVE CREDIT UNION LIMITED
NOTES TO FINANCIAL STATEMENTS (continued)
July 31, 2022
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 (2021: 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 signifi cant 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, 2022
Under Six
Months
Cash inflows
Cash on hand and at bank $ 22,872,380
Fixed deposits
–
Securities at fair value
through P&L
–
Mortgages and personal
loans
8,352,017
$ 31,224,397
Six Months
to One Year
$
–
112,650,932
One Year to
Four Years
$
–
–
Five Years to
Ten Years
$
–
–
Over
Ten Years
$
Non-Fixed
Maturity
–
–
$
Total
–
–
$ 22,872,380
112,650,932
3,072,188
3,072,188
–
3,072,188
362,618,447
$ 501,213,947
–
–
–
–
6,238,460
$ 118,889,392
26,595,220
$ 26,595,220
73,596,661
$ 73,596,661
247,836,089
$ 247,836,089
$
2,064,529
–
–
26,418,900
432,121
$ 28,915,550
$
$
–
436,568,536
–
–
–
$ 436,568,536
$
$
–
–
–
–
–
–
$
$
–
–
–
–
–
–
$
$
–
–
–
–
1,266
1,266
$
$
–
–
–
–
456,848
456,848
Off-balance sheet cash
outflows
Loan commitments
$ 12,657,436
$
–
$
–
$
–
$
–
$
–
$ 12,675,436
Net exposure
$ (10,348,589) $ 118,432,544
$(433,496,348)
$ 22,596,311
Cash outflows
Accounts payable and
accrued expenses
Members’ shares
Members’ deposits:
- Regular savings
- Term deposits
$
$ 26,593,954
- 49 -
$ 73,596,661
$ 247,836,089
2,064,528
436,568,536
–
26,418,900
890,235
$ 465,942,200