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TRINITY CREDIT UNION
D O N AG H ME D E
OPEN FOR LENDING
Noticeisherebygiventhatthe
AnnualGeneralMeetingof
TrinityCreditUnionLimited
willbeheldonTuesday13thDecember2016intheofficesof
TrinityCreditUnion
NewbrookRoad,Donaghmede,Dublin13
at7.30p.m.
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TRINITYCREDITUNIONLIMITED
Contents
DirectorsandOtherInformation/NoticeofElections
Directors’Report
StatementofDirectors’Responsibilities
StatementofBoardOversightCommitteeResponsibilities
IndependentAuditors’Report
AccountingPolicies
IncomeandExpenditureAccount
BalanceSheet
StatementofChangesinRetainedEarnings
CashFlowStatement
NotestotheFinancialStatements
AdditionalInformation(NotformingpartofthestatutoryauditedFinancialStatements):
Schedule1–InterestonLoans
Schedule2–OtherInterestIncomeandSimilarIncome
Schedule3–OtherIncome
Schedule4–OtherGains
Schedule5–OtherManagementExpenses
Schedule6–OtherLosses
u Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
2
Invocation
Chairperson’s Address
AppointmentofTellers
Report of Directors
Consideration of Accounts
Report of Auditor
Declaration of DividendplusInterestRebate
ReportofSupervisoryCommittee
ReportofCreditControlCommittee
ReportofRiskandComplianceOfficer
ReportofMarketingCommittee
Minutes of last A.G.M.
Elections
MembershipReport
InsuranceOfficerReport
Draw
OtherBusiness
Page
3
4–5
6
6
7
8–11
12
13
14
15
16–25
26
26
26
26
27
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ANNUALREPORT&ACCOUNTS2016
DirectorsandOtherInformation
DirectorsMichaelDoolan
(Appointedon23February2016)(Chairperson)
IdaNolan(Vice-chairperson)
NoeleenFuller(Secretary)
ThomasQuail(Resignedon25October2016)
PatrickHarvey(Resignedon26April2016)
RoryO’Connor
MarionClarke(Appointedon25October2016)
GeneBoyd
AdrienneM.Conroy(Resignedon26January2016)
AnnGannon(Appointedon31May2016)
BillyO’Toole
GeorgeByrne
BoardOversightCommittee ValBergin(Chairperson)
SheilaHoey
MichaelDoolan(Resignedon26January2016)
PatrickHarvey(Appointedon31May2016)
ManagerAndreaLevins
InternalAuditorMcInerneySaunders
RegisteredNumber395CU
RegisteredOfficeNewbrookRoad,Dublin13.
IndependentAuditorFMB,4OrmondQuayUpper,Dublin7,D07PF53
BankersPermanentTSB,12/13LowerO’ConnellStreet,Dublin17
BankofIreland,NorthernCross,MalahideRoad,Dublin1
Solicitors ActiveLegalLimited
Suite10,ParklandsOfficePark,Bray.,Co.Wicklow
NoticeofElections
Electionswillbeheldtofill3vacanciesontheBoardofDirectors,1vacancyontheBoardOversight
CommitteeandthepositionofAuditor.
NominationsforthepositionsofDirectorsandSupervisorsmustbeinwritingandsignedbya
proposerandseconder(whomustbemembersoftheCreditUnion)andalsobythepersonnominated
soastoindicatehis/herconsent.
ThenomineemustbeamemberoftheCreditUnionandhavereachedage18.Nominationforms
areavailableattheCreditUnionoffice.
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TRINITYCREDITUNIONLIMITED
DirectorsReport
Fortheyearended30thSeptember2016
Thedirectorspresenttheirreportandauditedfinancialstatementsfortheyearended30September2016.
PrincipalActivityandReviewofBusiness
Onreviewofthecreditunion’sfinancialresultsthefollowingkeyperformanceindicatorswereidentified:
2016
2015
MembersSavingsmovement%
+6.85%
+5.20%
GrossLoanmovement%
+7.78%
–1.79%
RegulatoryReserve%oftotalassets
10.50%
10.94%
Thecreditunioncontinuedtoattractadditionalmembers’savingsduringthefinancialyearwithmembershares
havingincreasedfromtheprioryear.Lendingactivityiscontinuingtoincreasestronglywithgrowthof7.78%in
thegrossloanbookinthefinancialyearindicativeofstrongloandemand.Thecreditunioncontinuestomaintain
regulatoryreservesinexcessoftheregulatoryminimumof10%.
ResultsfortheyearandStateofAffairsat30September2016
Theincomeandexpenditureaccountandthebalancesheetfortheyearended30September2016aresetout
onpages12and13.
PrincipalRisksandUncertainties
Thecreditunion,aswithmanyotherfinancialinstitutions,continuestofaceuncertaintiesarisingfromthegeneral
economicconditions.Theboardareactivelymonitoringtheeffectsoftheseconditionsonthedailyoperationsof
thecreditunion.
Theprincipalareascurrentlyrequiringriskmanagementinclude:
– Creditrisk: Theriskoffinanciallossarisingfromaborrower,issuer,guarantororcounterpartythatmayfailto
meetitsobligationsinaccordancewithagreedterms.InordertomanagethisrisktheBoardapprovestheCredit
Unionslendingpolicyandallchangestoit.Allloanapplicationsareassessedwithreferencetothelendingpolicy
inforceatthetime.Subsequently,loansareregularlyreviewedforanyfactorsthatmayindicateimpairment.The
BoardapprovestheCreditUnion’sCreditControlpolicywhichmonitorstheproceduresforthecollectionofloans
inarrearsandalsothebasisforimpairmentonloans.
– Liquidityrisk: Theriskthatacreditunionwillnotbeabletofunditscurrentandfutureexpectedandunexpected
cashoutflowsastheyfallduewithoutincurringsignificantlosses.Thismayoccurevenwherethecreditunionis
solvent.Thecreditunion’spolicyistomaintainsufficientfundsinliquidformatalltimestoensurethatitcan
meetitsobligationsastheyfalldue.Theobjectiveoftheliquiditypolicyistosmooththetimingbetweenmaturing
assetsandliabilitiesandtoprovideadegreeofprotectionagainstanyunexpecteddevelopmentsthatmayarise.
– Capitalrisk: Capitalisrequiredtoactasacushiontoabsorblossesarisingfrombusinessoperationsandtoallow
acredituniontoremainsolventunderchallengingconditions.Capitalriskarisesmainlyasaresultofthequality
orquantityofcapitalavailable,thesensitivityofthecreditunionexposurestoexternalshocks,thelevelofcapital
planningandthecapitalmanagementprocess.Capitalriskcouldpotentiallyimpairacreditunion’sabilitytomeet
itsobligationsinanadversesituation.Theboardmanagethisriskbyensuringthatsufficientreservesaresetaside
eachyeartoabsorbanypotentiallosses.
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ANNUALREPORT&ACCOUNTS2016
– Operationalrisk:Theriskofloss(financialorotherwise)resultingfrominadequateorfailedinternalprocesses
orsystemsofthecreditunion;anyfailurebypersonsconnectedwiththecreditunion;legal
risk(includingexposuretofines,penaltiesordamagesaswellasassociatedlegalcosts);orexternal
events;butdoesnotincludereputationalrisk.Examplesofoperationalrisksincludehardwareor
softwarefailures,inadequatebusinesscontinuityplans,misuseofconfidentialinformation,dataentry
errorsandnaturaldisasters.
– Interestraterisk: Theinterestrateriskarisesfromdifferencesbetweentheinterestrateexposuresonloans
andinvestmentsreceivable,asoffsetbythecostofcapital,whichistypicallythatofdistributions
tomembers’payableintheformofdividendsandinterestrebates.Thecreditunionconsidersratesofinterest
receivablewhendecidingontheappropriationofincomeanditsreturnstomembers.TheBoardmonitorssuch
policyinlinewiththeCreditUnionAct,1997(asamended)andguidancenotesissuedbytheCentralBankof
Ireland.
– Strategy/businessmodelrisk:Thisreferstotheriskwhichcreditunionsfaceiftheycannotcompeteeffectively
oroperateaviablebusinessmodel.Strategy/businessmodelriskalsoincludestheinherentriskinthecredit
union’sstrategy.Theboardhavedevelopedandapprovedadetailedstrategicplantoformulatetheshortterm
directionofthecreditunionoperations.
Dividends
Thedirectorsrecommendpaymentofadividendof€31,611.00(0.125%)fortheyear,(2015–0.25%)
andaninterestrebateof€31,263.00(5.00%)fortheyear.(2015–0.00%)
InternalAuditFunction
InaccordancewithSection76KoftheCreditUnionAct,1997(asamended)theboardhaveappointedaninternal
auditfunctiontoprovideforindependentinternaloversightandtoevaluateandimprovetheeffectivenessofthe
creditunion’sriskmanagement,internalcontrolsandgovernanceprocess.
AccountingRecords
TheDirectorsbelievethattheycomplywiththerequirementsofSection108oftheCreditUnionAct,1997(as
amended)withregardtobooksofaccountbyemployingaccountingpersonnelwithappropriateexpertiseandby
providingadequateresourcestothefinancialfunction.Thebooksofaccountofthecreditunionaremaintained
atthecreditunion’spremisesatNewbrookRoad,Dublin13.
ApprovedbytheBoardon:16thNovember2016
________________________
MichaelDoolan
MemberoftheBoard
ofDirectors
________________________
IdaNolan
MemberoftheBoard
ofDirectors
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TRINITYCREDITUNIONLIMITED
StatementofDirectors’Responsibilities
Fortheyearended30thSeptember2016
TheCreditUnionAct,1997(asamended)requiresthedirectorstopreparefinancialstatementsforeachfinancial
yearwhichgiveatrueandfairviewofthestateoftheaffairsofthecreditunionandoftheincomeandexpenditure
ofthecreditunionforthatyear.Inpreparingthosefinancialstatementsthedirectorsarerequiredto:
– selectsuitableaccountingpoliciesandapplythemconsistently;
– makejudgementsandestimatesthatarereasonableandprudent;
– preparethefinancialstatementsonthegoingconcernbasisunlessitisinappropriatetopresumethat
thecreditunionwillcontinueinbusiness.
Thedirectorsareresponsibleforkeepingproperaccountingrecordswhichdisclosewithreasonableaccuracythe
financialpositionofthecreditunionandwhichenablesthemtoensurethatthefinancialstatementscomplywith
theCreditUnionAct,1997(asamended).Theyarealsoresponsibleforsafeguardingtheassetsofthecreditunion
andhencefortakingreasonablestepsforthepreventionanddetectionoffraudandotherirregularities.
Insofarasthedirectorsareaware:
– thereisnorelevantauditinformation(informationneededbytheCreditUnion’sauditorinconnection
withpreparingtheauditor’sreport)ofwhichtheCreditUnion’sauditorisunaware,and
– thedirectorshavetakenallthestepsthattheyoughttohavetakentomakethemselvesawareofany
relevantauditinformationandtoestablishthattheCreditUnion’sauditorisawareofthatinformation.
OnbehalfoftheCreditUnion:16thNovember2016
________________________
MichaelDoolan
MemberoftheBoard
ofDirectors
________________________
IdaNolan
MemberoftheBoard
ofDirectors
StatementofBoardOversightCommittee’sResponsibilities
Fortheyearended30thSeptember2016
TheCreditUnionAct,1997(asamended)requirestheappointmentofaBoardOversightCommitteetoassess
whethertheboardofdirectorshasoperatedinaccordancewithPartIV,PartIVAandanyregulationsmadefor
thepurposesofPartIVorPartIVAoftheCreditUnionAct,1997(asamended)andanyothermatterprescribed
bytheBankinrespectofwhichtheyaretohaveregardtoinrelationtotheboard.
__________________
ValBergin
MemberofBoardOversightCommittee
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ANNUALREPORT&ACCOUNTS2016
IndependentAuditor’sReporttothemembersof
TrinityCreditUnionLimited
WehaveauditedthefinancialstatementsofTrinityCreditUnionLimitedfortheyearended30September2016
whichcompriseoftheIncomeandExpenditureAccount,theBalanceSheet,theCashFlowStatementandrelated
notes.ThefinancialreportingframeworkthathasbeenappliedintheirpreparationisIrishLawandAccounting
StandardsissuedbytheFinancialReportingCouncilandpromulgatedbytheCharteredAccountantsIreland
(GenerallyAcceptedAccountingPracticeinIreland)
Thisreportismadesolelytothecreditunion’smembers,asabody,inaccordancewithSection120ofthe
CreditUnionAct,1997(asamended).Ourauditworkhasbeenundertakensothatwemightstatetothecredit
union’smembersthosematterswearerequiredtostatetotheminanauditor’sreportandfornootherpurpose.
Tothefullestextentpermittedbylaw,wedonotacceptorassumeresponsibilitytoanyoneotherthanthecredit
unionandthecreditunion’smembersasabody,forourauditwork,forthisreport,orfortheopinionswehave
formed.
RespectiveresponsibilitiesoftheDirectorsandAuditors
AsexplainedmorefullyintheStatementofDirectors’Responsibilities,theDirectorsareresponsibleforthe
preparationoftheFinancialStatements,givingatrueandfairview.Ourresponsibilityistoauditandexpressan
opiniononthefinancialstatementsinaccordancewithIrishLawandInternationalStandardsonAuditing(UKand
Ireland).ThosestandardsrequireustocomplywiththeAuditingPracticesBoard’s(APB’s)EthicalStandardsfor
Auditors.
ScopeoftheAuditofFinancialStatements
Anauditinvolvesobtainingevidenceabouttheamountsanddisclosuresinthefinancialstatementssufficientto
givereasonableassurancethatthefinancialstatementsarefreefrommaterialmisstatement,whethercausedby
fraudorerror.Thisincludesanassessmentofwhethertheaccountingpoliciesareappropriatetothecreditunion’s
circumstancesandhavebeenconsistentlyappliedandadequatelydisclosed;thereasonablenessofsignificant
accountingestimatesmadebythedirectors;andtheoverallpresentationofthefinancialstatements.Inaddition,
wereadallthefinancialandnon-financialinformationintheannualreporttoidentifymaterialinconsistencies
withtheauditedfinancialstatementsandtoidentifyanyinformationthatisapparentlymateriallyincorrectbased
on,ormateriallyinconsistentwith,theknowledgeacquiredbyusinthecourseofperformingtheaudit.Ifwe
becomeawareofanyapparentmaterialmisstatementsorinconsistencies,weconsidertheimplicationsforour
auditreport.
OpiniononFinancialStatements
Inouropinionthefinancialstatements:
– giveatrueandfairviewofthestateofthecreditunion’saffairsasat30September2016andofitsincome
andexpenditurefortheyearthenended;
– havebeenproperlypreparedinaccordancewithGenerallyAcceptedAccountingPracticeinIreland;
– havebeenproperlypreparedinaccordancewiththerequirementsoftheCreditUnionAct,1997(as
amended).
OthermattersprescribedbytheCreditUnionAct,1997(asamended):
– Wehaveobtainedalltheinformationandexplanationswhichweconsideredwerenecessaryforthe
purposesofouraudit.
– Inouropinion,properaccountingrecordshavebeenkeptbythecreditunion.
– Thefinancialstatementsareinagreementwiththeaccountingrecords.
KevinMorris
forandonbehalfofFMB,
CharteredAccountants,
RegisteredAuditor
4OrmondQuayUpper,Dublin7
D07PF53
7
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TRINITYCREDITUNIONLIMITED
AccountingPolicies
Fortheyearended30thSeptember2016
StatementofCompliance
Thefinancialstatementsofthecreditunionfortheyearyearended30September2016havebeenpreparedon
thegoingconcernbasisandinaccordancewithgenerallyacceptedaccountingprinciplesinIrelandandIrishstatute
comprisingtheCreditUnionAct1997(asamended)andinaccordancewiththeFinancialReportingStandard
applicableintheUnitedKingdomandtheRepublicofIreland(FRS102)issuedbytheFinancialReportingCouncil,
aspromulgatedbyCharteredAccountantsIreland.
BasisofPreparation
Thefinancialstatementshavebeenpreparedunderthehistoricalcostconvention.Historicalcostisgenerally
basedonthefairvalueoftheconsiderationgiveninexchangeforassets.Thefollowingaccountingpolicieshave
beenappliedconsistentlyindealingwithitemswhichareconsideredmaterialinrelationtothecreditunion’s
financialstatements.
1. First-timeAdoptionofFRS102
These are Trinity Credit Union Limited’s first financial statements to comply with FRS 102. The date of
transitiontoFRS102is1October2014.
ThetransitiontoFRS102hasresultedinanumberofaccountingpolicychangescomparedtothoseapplied
previously.Note26tothefinancialstatementsdescribesthedifferencesbetweenthereservesandsurplus
presented previously and the amounts as restated to comply with the accounting policies adopted in
accordancewithFRS102forthereportingperiodended30September2015(iecomparativeinformation)as
wellastheretainedreservespresentedintheopeningBalanceSheet(ieat1stOctober2014).Italsodescribes
alltherequiredchangesinaccountingpoliciesmadeonfirst-timeadoptionofFRS102.
2.
GoingConcern
Thefinancialstatementsarepreparedonthegoingconcernbasis.Thedirectorsbelievethisisappropriate
astheCreditUnion:
– isgeneratingannualsurpluseswiththeexceptionoflastyearduetopremisesimpairment;
– ismaintainingappropriatelevelsofliquidityinexcessofminimumlegislativerequirements;and
– hasreservelevelswhicharesignificantlyabovetheminimumrequirementsoftheCentralBank.
3.
IncomeRecognition
IncomeisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheCreditUnion
andtherevenuecanbereliablymeasured.Incomeismeasuredatthefairvalueoftheconsiderationreceived.
Thefollowingcriteriamustalsobemetbeforerevenueisrecognised:
InterestonMembers’Loans
Interestonloanstomembersisrecognisedusingtheeffectiveinterestmethodandiscalculatedand
accruedonadailybasis.
InvestmentIncome
TheCreditUnionusestheeffectiveinterestmethodtorecogniseinvestmentincome.
OtherIncome
Otherincomesuchascommissionsreceivableoninsuranceproductsandforeignexchangeservicesarises
inconnectionwithspecifictransactions.Incomerelatingtoindividualtransactionsisrecognisedwhen
thetransactioniscompleted.
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4. CashandCashEquivalents
Cashandcashequivalentscomprisecashonhandandloansandadvancestobanks(i.e.cashdepositedwith
banks)withmaturityoflessthanorequaltothreemonths.
5. BasicFinancialAssets
Basicfinancialassetsareinitiallymeasuredatthetransactionprice,includingtransactioncosts,andare
subsequentlycarriedatamortisedcostusingtheeffectiveinterestmethod.Basicfinancialinstrumentsinclude
thefollowing:
LoanstoMembers
Loanstomembersarefinancialassetswithfixedordeterminablepayments.Loansarerecognisedwhen
cashisadvancedtomembersandmeasuredatamortisedcostusingtheeffectiveinterestmethod.Loans
arederecognisedwhentherighttoreceivecashflowsfromtheassethasexpired,usuallywhenall
amountsoutstandinghavebeenrepaidbythemember.
InvestmentsheldatAmortisedCost
Investmentsdesignatedoninitialrecognitionasheldatamortisedcostaremeasuredatamortisedcost
usingtheeffectiveinterestmethodlessimpairment.Thismeansthattheinvestmentismeasuredatthe
amountpaidfortheinvestment,minusanyrepaymentsoftheprincipal;plusorminusthecumulative
amortisation using the effective interest method of any difference between the amount at initial
recognitionandthematurityamount;minus,inthecaseofafinancialasset,anyreductionforimpairment
oruncollectability.Thiseffectivelyspreadsoutthereturnonsuchinvestmentsovertime,butdoestake
accountimmediatelyofanyimpairmentinthevalueoftheinvestment.
HeldtoMaturityInvestments
Investmentsdesignatedoninitialrecognitionasheld-to-maturityareinvestmentsthatthecreditunion
intends,andisableto,holdtomaturity.Thesearecarriedatamortisedcostusingtheeffectiveinterest
method.Thefairvalueofsomeinvestmentproductswillchangeduringtheirlife,buttheywillhavea
fixedmaturityvalueatsomefuturedate.Whendesignatedasheld-to-maturity,anychangeinthefair
valueduringthetermoftheinvestmentisignored,withthecredituniononlyaccountingforinterest
received.Gainsandlossesarerecognisedinincomewhentheinvestmentsarederecognisedorimpaired,
aswellasthroughtheamortisationprocess.Investmentsintendedtobeheldforanundefinedperiod
arenotincludedinthisclassification
CentralBankDeposits
Credit Unions are obliged to maintain certain deposits with the Central Bank. These deposits are
technicallyassetsofthecreditunionbuttowhichthecreditunionhasrestrictedaccess.Thefundson
depositwiththeCentralBankattractnominalinterestandwillnotordinarilybereturnedtothecredit
unionwhileitisagoingconcern.InaccordancewiththedirectionoftheCentralBanktheamountsare
shownascurrentassetsandarenotsubjecttoimpairmentreviews.
6. OtherReceivables
Otherreceivablessuchasprepaymentsareinitiallymeasuredattransactionpriceincludingtransactioncosts
andaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.
7. TangibleFixedAssets
Tangible fixed assets comprises items of property, plant and equipment, which are stated at cost, less
accumulateddepreciationandanyaccumulatedimpairmentlosses.Costincludesexpenditurethatisdirectly
attributabletotheacquisitionoftheasset.
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TRINITYCREDITUNIONLIMITED
Deprecationisprovidedtowriteoffthecostofeachitemofproperty,plantandequipment,lessitsestimated
residualvalue,onastraightlinebasisoveritsestimatedusefullife.Thecategoriesofproperty,plantand
equipmentaredepreciatedasfollows:
Premises –2%StraightLine
Fixtures&fittings–10%StraightLine
Officeequipment –20%StraightLine
Gainsorlossesarisingonthedisposalofanassetaredeterminedasthedifferencebetweenthesaleproceeds
andthecarryingvalueoftheasset,andarerecognisedintheIncomeandExpenditureaccount.
Ateachreportingenddate,theCreditUnionreviewsthecarryingvalueofitstangibleassetstodetermine
whetherthereisanyindicationthatthoseassetshavesufferedanimpairmentloss.Ifanysuchindication
exists,therecoverableamountoftheassetisestimatedinordertodeterminetheextentoftheimpairment
loss(ifany).Whereitisnotpossibletoestimatetherecoverableamountofanindividualasset,theCredit
Unionestimatestherecoverableamountofthecash-generatingunittowhichtheassetbelongs.
Recoverableamountisthehigheroffairvaluelesscoststosellandvalueinuse.Inassessingvalueinuse,
theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflects
currentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheassetforwhichthe
estimatesoffuturecashflowshavenotbeenadjusted.
Iftherecoverableamountofanassetisestimatedtobelessthanitscarryingamount,thecarryingamount
oftheassetisreducedtoitsrecoverableamount.AnimpairmentlossisrecognisedimmediatelyintheIncome
andExpenditureaccount.
Recognisedimpairmentlossesarereversedif,andonlyif,thereasonsfortheimpairmentlosshaveceased
toapply.Whereanimpairmentlosssubsequentlyreverses,thecarryingamountoftheassetisincreasedto
therevisedestimateofitsrecoverableamount,butsothattheincreasedcarryingamountdoesnotexceed
thecarryingamountthatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognisedfortheasset
inprioryears.AreversalofanimpairmentlossisrecognisedimmediatelyintheIncomeandExpenditure
account.
8. EmployeeBenefits
PensionCosts
The credit union operates a defined contribution pension scheme. The assets of the scheme are held
separately from those of the credit union in an independently administered fund. The pension charge
representscontributionspayablebythecredituniontothescheme.
OtherEmployeeBenefits
Thecostsofshort-termemployeebenefits,includingholidaypay,arerecognisedasaliabilityandasan
expense(unlessthosecostsarerequiredtoberecognisedaspartofthecostoffixedassets)overtheperiod
theyareearned.
9. ImpairmentofMembersLoans
Thecreditunionassesses,ateachbalancesheetdate,ifthereisobjectiveevidencethatanyofitsloansto
members are impaired. The loans are assessed collectively in groups that share similar credit risk
characteristics.Individuallysignificantloansareassessedonaloanbyloanbasis.Inaddition,if,duringthe
courseoftheyear,thereisobjectiveevidencethatanyindividualloanisimpaired,aspecificlosswillbe
recognised.
Baddebts/impairmentlossesarerecognisedintheIncomeandExpenditureAccount,asthedifference
betweenthecarryingvalueoftheloanandthenetpresentvalueoftheexpectedcashflows.
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10. Financialliabilities–members’sharesanddeposits
Members’shareholdingsanddepositsareredeemableandthereforeareclassifiedasfinancialliabilities.They
areinitiallyrecognisedattheamountofcashdepositedandsubsequentlymeasuredatthenominalamount.
11. DividendsandOtherReturnstoMembers
Dividendsaremadefromcurrentyear’ssurplusoradividendreservesetasideforthatpurpose.TheBoard’s
proposeddistributiontomemberseachyearisbasedonthedividendandloaninterestrebatepolicyofthe
CreditUnion.
TherateofdividendandloaninterestrebaterecommendedbytheBoardwillreflect:
– theriskprofileoftheCreditUnion,particularlyinitsloanandinvestmentportfolios;
– theBoard’sdesiretomaintainastableratherthanavolatilerateofdividendeachyear;and
– members’legitimatedividendandloaninterestrebateexpectations;
alldominatedbyprudenceandtheneedtosustainthelong-termwelfareoftheCreditUnion.
ForthisreasontheBoardwillseektobuildupitsreservestoabsorbunexpectedshocksandstillremain
aboveminimumregulatoryrequirements.
Finaldividendsandotherreturnstomembersareaccountedforasaliabilityaftertheyareapprovedby
themembersingeneralmeeting.
12. Taxation
TheCreditUnionisnotsubjecttoincometaxorcorporationtaxonitsactivitiesasaCreditUnion.
13. Reserves
Retainedearningsaretheaccumulatedsurplusestodatethathavenotbeendeclaredasdividendsreturnable
tomembers.TheretainedearningsaresubdividedintorealisedandunrealisedInaccordancewiththeCentral
BankGuidanceNoteforCreditUnionsonMattersRelatingtoAccountingforInvestmentsandDistribution
Policy.
RegulatoryReserve
TheCreditUnionAct1997(RegulatoryRequirements)Regulations2016requiresCreditunionstoestablish
andmaintainaminimumregulatoryreserverequirementofatleast10%oftheassetsofthecreditunion.
Thisreserveistobeperpetualinnature;freelyavailabletoabsorblosses;realisedfinancialreservesthat
areunrestrictedandnon-distributable.ThisreserveissimilarinnatureandreplacestheStatutoryReserve
whichwasarequirementofpreviouslegislation.
OperationalRiskReserve
Section45(5)(a)ofthe1997Actrequireseachcredituniontomaintainanadditionalreservethatithas
assessedisrequiredforoperationalriskhavingregardtothenature,scaleandcomplexityofthecredit
union.CreditUnionsarerequiredtomaintainaminimumoperationalriskreservehavingdueregardfor
thesophisticationofthebusinessmodel.
The definition of operational risk is the risk of losses stemming from inadequate or failed internal
processes,peopleandsystemsorfromexternalevents.Thedirectorshaveconsideredtherequirements
oftheActandhaveconsideredanapproachtocalculationoftheoperationalriskreservebasedon
indicativeguidanceissuedbytheCentralBank
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TRINITYCREDITUNIONLIMITED
IncomeandExpenditureAccount
Fortheyearended30thSeptember2016
Schedule
INCOME
Interestonloans
Otherinterestpayableandsimilarcharges
Otherinterestincomeandsimilarincome
2015
€
2
625,268
–
225,986
_________
610,456
(411,024)
295,782
_________
3
4
851,254
30,225
–
_________
495,214
41,957
–
_________
881,479
_________
537,171
_________
335,586
386,314
52,527
34,797
(61,999)
(46,847)
39,253
_________
353,293
457,705
61,811
19,955
(102,022)
(50,572)
43,233
_________
TOTALEXPENDITURE
739,631
_________
783,403
_________
EXCESSOFINCOMEOVEREXPENDITUREFORTHEYEAR
141,848
_________
_________
(246,232)
_________
_________
NETINTERESTINCOME
Otherincome
Othergains
1
2016
€
TOTALINCOME
EXPENDITURE
Salaries
Othermanagementexpenses
Depreciation
Otherlosses
Baddebtsprovision
Baddebtsrecovered
Baddebtswrittenoff
5
6
OnbehalfoftheCreditUnion:16thNovember2016
__________________
MichaelDoolan
MemberofBoard
ofDirectors
____________________________________
ValBerginAndreaLevins
MemberoftheManager
BoardOversightCommittee
Theaccompanyingnotesformpartofthesefinancialstatements
12
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ANNUALREPORT&ACCOUNTS2016
BalanceSheet
asat30thSeptember2016
2016
€
2015
€
8,431,445
13,633,428
7,691,170
(342,154)
958,489
140,620
__________
6,227,460
14,595,095
7,136,125
(404,153)
999,739
177,866
__________
30,512,998
__________
28,732,132
__________
24,792,425
1,177,059
53,360
77,957
__________
22,968,858
1,336,527
53,890
47,321
__________
26,100,801
__________
24,406,596
__________
17
17
3,203,002
100,000
3,143,126
–
17
17
1,080,731
28,464
__________
4,412,197
__________
1,153,946
28,464
__________
4,325,536
__________
30,512,998
__________
__________
28,732,132
__________
__________
Note
ASSETS
Cashandcashequivalents
Investments
Loans
Lessprovisionforbaddebts
Tangiblefixedassets
Debtors,prepaymentsandaccruedincome
6
7
8
10
11
12
TOTALASSETS
LIABILITIES
Members’shares
Members’deposits
Members’drawaccount
Otherliabilities,creditors,accrualsandcharges
13
14
15
TOTALLIABILITIES
RESERVES
Regulatoryreserve
Operationalriskreserve
Otherreserves
-Realisedreserves
-Unrealisedreserves
TOTALRESERVES
OnbehalfoftheCreditUnion:16thNovember2016
__________________
MichaelDoolan
MemberofBoard
ofDirectors
____________________________________
ValBerginAndreaLevins
MemberoftheManager
BoardOversightCommittee
Theaccompanyingnotesformpartofthesefinancialstatements
13
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TRINITYCREDITUNIONLIMITED
StatementofChangesinRetainedEarnings
Fortheyearended30thSeptember2016
2016
€
2015
€
360,925
969,446
141,848
_________
502,773
_________
(246,232)
_________
723,214
_________
(59,876)
–
–
(55,187)
_________
(106,106)
58,926
(207,167)
(107,942)
_________
Total:
(115,063)
_________
(362,289)
_________
ClosingBalanceat30September2016
387,710
_________
_________
360,925
_________
_________
Note
OpeningBalanceat1October
Excessofincomeoverexpenditure
Less:
14
Transfertoregulatoryreserve
Transfertodividendreserve
Transfertobaddebtreserve
Dividendpaid
17
17
17
18
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ANNUALREPORT&ACCOUNTS2016
CashFlowStatement
Fortheyearended30thSeptember2016
Note
Openingcashandcashequivalents
6,227,460
2016
€
2015
€
10,568,908
Cashflowsfromoperatingactivities
Loansrepaid
Loansgranted
Loaninterestreceived
Investmentsinterestreceived
Baddebtsrecovered
Dividendspaid
Operatingexpenses
4,712,609
(5,306,907)
622,929
263,624
46,847
(55,187)
(756,697)
_________
5,058,551
(4,971,914)
608,841
160,058
50,572
(107,942)
(830,953)
_________
Netcashflowsfromoperatingactivities
(472,782)
_________
(32,787)
_________
Netcashflowsfrominvestingactivities
(11,277)
961,667
_________
950,390
_________
(23,629)
(5,642,725)
_________
(5,666,354)
_________
Cashflowsfromfinancingactivities
Members’sharesreceived
Members’depositsreceived
Members’shareswithdrawn
Members’depositswithdrawn
9,528,438
1,092,482
(7,704,871)
(1,251,950)
_________
8,891,389
1,461,860
(7,850,734)
(1,300,698)
_________
Netcashflowsfromfinancingactivities
1,664,099
_________
1,201,817
_________
Other
Otherreceipts
Decrease/(Increase)inprepayments
(Increase)/Decreaseinotherliabilities
30,225
1,947
30,106
_________
41,957
138,658
(24,739)
_________
62,278
_________
155,876
_________
8,431,445
_________
_________
6,227,460
_________
_________
Cashflowsfrominvestingactivities
Fixedassetspurchased
Netcashflowfrominvestments
Closingcashandcashequivalents
6
15
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TRINITYCREDITUNIONLIMITED
NotestotheFinancialStatements
Fortheyearended30thSeptember2016
1.
GeneralInformation
TrinityCreditUnionLimitedisacreditunionincorporatedundertheCreditUnionAct1997(asamended)in
theRepublicofIreland.TrinityCreditUnionLimitedisregisteredwiththeRegistrarofCreditUnionsandis
regulatedbytheCentralBankofIreland.ThefinancialstatementshavebeenpresentedinEuro(€)whichis
alsothefunctionalcurrencyofthecreditunion.
2.
UseofEstimatesandJudgements
Thepreparationoffinancialstatementsrequirestheuseofcertainaccountingestimates.Italsorequiresthe
Directorstoexercisejudgementinapplyingthecreditunion’saccountingpolicies.Theareasrequiringa
higherdegreeofjudgement,orcomplexity,andareaswhereassumptionsorestimatesaremostsignificant
tothefinancialstatementsaredisclosedbelow:
Baddebts/Impairmentlossesonloanstomembers
TheCreditUnion’saccountingpolicyforimpairmentoffinancialassetsissetoutinaccountingpolicieson
pages8–11ofthefinancialstatements.Theestimationofloanlossesisinherentlyuncertainanddepends
uponmanyfactors,includingloanlosstrends,creditriskcharacteristicsinloanclasses,localandinternational
economicclimates,conditionsinvarioussectorsoftheeconomytowhichtheCreditUnionisexposed,and,
otherexternalfactorssuchaslegalandregulatoryrequirements.
Creditriskisidentified,assessedandmeasuredthroughtheuseofratingandscoringtoolswithemphasis
onweeksinarrearsandotherobservablecreditriskmetricsasidentifiedbythecreditunion.Theratings
influencethemanagementofindividualloans.Thecreditratingtriggerstheimpairmentassessmentandif
relevanttheraisingofspecificprovisionsonindividualloanswherethereisdoubtabouttheirrecoverability.
LoanlossprovisioningismonitoredbytheCreditUnion,andtheCreditUnionassessesandapprovesits
provisionsandprovisionadequacyonaquarterlybasis.KeyassumptionsunderpinningtheCreditUnion’s
estimatesofcollectiveprovisionsforloanswithsimilarcreditriskcharacteristics,and,IncurredButNot
Reportedprovisions(“IBNR”)arebasedonthehistoricalexperiencesoftheCreditUnionalliedtotheCredit
Union’sjudgementofrelevantconditionsinthewidertechnological,market,economicorlegalenvironment
inwhichtheCreditUnioncurrentlyoperateswhichimpactoncurrentlendingactivityandloanunderwriting.
Ifaloanisimpaired,theimpairmentlossisthedifferencebetweenthecarryingamountoftheloanandthe
presentvalueoftheexpectedcashflowsdiscountedattheasset’soriginaleffectiveinterestratetaking
accountofpledgedsharesandothersecurityasappropriate.Assumptionsarebacktestedwiththebenefit
ofexperience.Afteraperiodoftime,whenitisconcludedthatthereisnorealprospectofrecoveryof
loans/partofloanswhichhavebeensubjectedtoaspecificprovision,theCreditUnionwritesoffthatamount
oftheloandeemedirrecoverableagainstthespecificprovisionheldagainsttheloan.
16
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ANNUALREPORT&ACCOUNTS2016
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
3.
Employees
Numberofemployees
Theaveragemonthlynumbersofemployeesduringtheyearwere:
2016
Number
2015
Number
Management,Administration&Tellers
8
_________
8
_________
_________
9
_________
9
_________
_________
Employmentcosts
2016
€
303,686
31,900
8,809
_________
2015
€
319,456
33,837
7,097
_________
Wagesandsalaries
Socialwelfarecosts
Pensioncosts
344,395
360,390
_________
_________
_________
_________
3.1. KeyManagementPersonnelCompensation
TheDirectorsofTrinityCreditUnionLimitedareallunpaidvolunteers.ThekeymanagementteamforTrinity
CreditUnionLimitedwouldincludethedirectors,thecreditunionmanagerandotherseniorstaff.The
numberofkeymanagementforthefinancialyearto30September2016amountto13(2015–13).
Shorttermemployeebenefitspaidtokeymanagement
Paymentstodefinedcontributionpensionschemes
4.
PensionCosts
Pensioncostsamountedto€8,809(2015–€7,097).
5.
AnalysisofInvestmentIncome
Receivedduringtheyear
Receivablewithin12months
Otherinvestmentincome
6.
Cash&CashEquivalents
Cashandbankbalances
Shorttermdeposits
2016
€
236,640
8,265
_________
2015
€
244,538
8,745
_________
244,905
_________
_________
253,283
_________
_________
2016
€
127,900
98,086
–
_________
2015
€
160,822
134,960
–
_________
225,986
_________
_________
295,782
_________
_________
2016
€
3,202,932
5,228,513
_________
2015
€
2,583,943
3,643,517
_________
8,431,445
_________
_________
6,227,460
_________
_________
Shorttermdepositsaredepositswithmaturityoflessthanorequaltothreemonths.Allotherdepositsare
includedinInvestmentsintheBalancesheetanddisclosedinnote7.
17
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TRINITYCREDITUNIONLIMITED
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
7.
Investments
2016
€
2015
€
11,321,478
172,902
104,000
524,739
1,510,309
_________
12,279,622
149,874
138,797
531,643
1,495,159
_________
13,633,428
_________
_________
14,595,095
_________
_________
OpeningBalanceat1October
Loansgranted
Loansrepaid
Loanswrittenoff
2016
€
7,136,125
5,306,907
(4,712,609)
(39,253)
__________
2015
€
7,265,995
4,971,914
(5,058,551)
(43,233)
__________
GrossLoanBalanceat30September
7,691,170
__________
7,136,125
__________
(261,127)
(81,027)
__________
(342,154)
__________
(317,540)
(86,613)
__________
(404,153)
__________
7,349,016
__________
__________
6,731,972
__________
__________
Investmentsareclassifiedasfollows:
Fixedtermdepositsmaturingafter3months
DepositProtectionAccount
Perpetualbonds
Governmentbonds
Investmentbonds
8.
LoanstoMembers
Impairmentallowances
Individualloans
Groupsofloans
Loanprovision
Netloansasat30September
9. CreditRiskDisclosures
TrinityCreditUnionLimiteddoesnotoffermortgagesandasaresultallloanstomembersareunsecured,
exceptthattherearerestrictionsontheextenttowhichborrowersmaywithdrawtheirsavingswhilstloans
areoutstanding.TherearemaximumamountssetdownbytheCentralBankintermsofwhatamounta
membercanborrowfromtheCreditUnion.
Thecarryingamountoftheloanstomembersrepresentsmaximumexposuretocreditrisk.Thefollowing
tableprovidesinformationonthecreditqualityofloanrepayments.Whereloansarenotimpaireditis
expectedthattheamountsrepayablewillbereceivedinfull.
18
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ANNUALREPORT&ACCOUNTS2016
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
9. CreditRiskDisclosures(contd.)
GrossLoansNotImpaired
€
6,852,280
_________
2016
%
89.09%
_______
2015
€
%
6,195,168 _______
86.81%
_________
GrossLoansImpaired
Upto9weekspastdue
Between10and18weekspastdue
Between19and26weekspastdue
Between27and39weekspastdue
Between40and52weekspastdue
53ormoreweekspastdue
498,909
65,206
20,430
38,896
51,029
164,420
_________
6.49%
0.85%
0.27%
0.51%
0.66%
2.13%
_______
735,860
12,700
11,357
10,284
9,099
161,657
_________
10.31%
0.18%
0.16%
0.14%
0.13%
2.27%
_______
838,890
_________
7,691,170
_________
_________
10.91%
_______
100.00%
_______
_______
940,957
_________
7,136,125
_________
_________
13.19%
_______
100.00%
_______
_______
TotalGrossLoans
ImpairmentAllowance
Individualloans
Groupsofloans
Loanprovision
Netloansasat30September
(261,127)
(81,027)
_________
(342,154)
_________
(317,540)
(86,613)
_________
(404,153)
_________
7,349,016
_________
_________
6,731,972
_________
_________
10. LoanProvisionAccountforImpairmentLosses
Openingbalance1October
Netmovementduringtheyear
Decreaseasaresultofloanwriteoffspreviouslyprovidedfor
Closingprovisionbalance30September
11. TangibleFixedAssets
2016
€
404,153
(22,746)
(39,253)
________
2015
€
506,175
(58,789)
(43,233)
________
342,154
________
________
404,153
________
________
Cost
At1October2015
Additions
Premises
€
1,439,055
–
_________
Office
equipment
€
378,742
11,007
_________
Fixtures&
fittings
€
184,096
270
_________
Total
€
2,001,893
11,277
_________
At30September2016
1,439,055
_________
389,749
_________
184,366
_________
2,013,170
_________
508,960
28,781
_________
537,741
_________
331,001
19,702
_________
350,703
_________
162,193
4,044
_________
166,237
_________
1,002,154
52,527
_________
1,054,681
_________
901,314
_________
930,095
_________
_________
39,046
_________
47,741
_________
_________
18,129
_________
21,903
_________
_________
958,489
_________
999,739
_________
_________
Depreciation
At1October2015
Chargefortheyear
At30September2016
Netbookvalues
At30September2016
At30September2015
19
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TRINITYCREDITUNIONLIMITED
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
11. TangibleFixedAssets(contd.)
Anindependentvaluationofthecreditunion’spremiseswascarriedoutbyCraddockAuctioneerson16June
2016.InaccordancewithFinancialReportingStandard11“ImpairmentofFixedAssets”thedirectorshave
carriedoutavalueinusecalculationattheyearend,applyingadiscountfactorof4.25%,andthisconcluded
thatnofurtherimpairmentisrequiredinthefinancialstatements.
12. PrepaymentsandAccruedIncome
Prepayments
Accruedincome
MemberLoaninterestreceivable
13. Members’Shares
€
OpeningBalanceat1October
Sharespaidin
Shareswithdrawn
ClosingBalanceat30September
2016
€
27,387
98,086
15,147
_________
2015
€
29,334
135,724
12,808
_________
140,620
_________
_________
177,866
_________
_________
2016
€
22,968,858
9,528,438
(7,704,871)
__________
2015
21,928,203
8,891,389
(7,850,734)
__________
24,792,425
__________
__________
22,968,858
__________
__________
Members’sharesarerepayableondemandexceptforsharesattachedtoloans.Thebreakdownoftheshares
betweenattachedandunattachedisasfollows:
€
€
UnattachedShares
19,753,042
18,215,840
AttachedShares
5,039,383
4,753,018
__________
__________
14. Members’Deposits
OpeningBalanceat1October
Depositspaidin
Depositswithdrawn
ClosingBalanceat30September
Members’depositaccountshavethefollowingmaturity
Lessthan1year
Onetotwoyears
Twotofiveyears
Morethanfiveyears
TotalTermDeposits
20
24,792,425
__________
__________
22,968,858
__________
__________
2016
€
1,336,527
1,092,482
(1,251,950)
__________
2015
€
1,175,365
1,461,860
(1,300,698)
__________
1,177,059
__________
__________
1,336,527
__________
__________
1,177,059
–
–
–
__________
1,336,527
–
–
–
__________
1,177,059
__________
__________
1,336,527
__________
__________
Trinity Accounts only 2016 • A5_Layout 1 29/11/2016 13:56 Page 21
ANNUALREPORT&ACCOUNTS2016
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
15. OtherLiabilitiesandCharges
PAYE/PRSI
Accruals
2016
€
7,297
70,660
_______
2015
€
8,102
39,219
_______
77,957
_______
_______
47,321
_______
_______
16. AdditionalFinancialInstrumentsDisclosures
1.Financialriskmanagement
TrinityCreditUnionLimitedmanagesitsmembers’sharesandloanstomemberssothatitearnsincome
fromthemarginbetweeninterestreceivableandinterestpayable.ThemainfinancialrisksarisingfromTrinity
CreditUnionLimited’sactivitiesarecreditrisk,liquidityriskandinterestraterisk.TheBoardreviewsand
agreespoliciesformanagingeachoftheserisks,whicharesummarisedbelow.
Creditrisk:Creditriskistheriskthataborrowerwilldefaultontheircontractualobligationsrelatingto
repaymentstoTrinityCreditUnionLimited,resultinginfinanciallosstotheCreditUnion.Inordertomanage
thisrisktheBoardapproveslendingpolicy,andallchangestoit.Allloanapplicationsareassessedwith
referencetothelendingpolicyinforceatthetime.Subsequentlyloansareregularlyreviewedforanyfactors
thatmayindicatethatthelikelihoodofrepaymenthaschanged
Liquidityrisk: TheCreditUnion’spolicyistomaintainsufficientfundsinliquidformatalltimestoensure
thatitcanmeetitsliabilitiesastheyfalldue.TheCreditUnionadheresonanongoingbasistotheminimum
liquidityratioandminimumshorttermliquidityratioassetoutintheCreditUnionAct1997(Regulatory
Requirements)Regulations2016.
Marketrisk: Marketriskisgenerallycomprisedofinterestraterisk,currencyriskandotherpricerisk.Trinity
CreditUnionLimitedconductsallitstransactionsinEuroanddoesnotdealinderivativesorcommodity
markets.ThereforetheCreditUnionisnotexposedtoanyformofcurrencyriskorotherpricerisk.
Interestraterisk: TheCreditUnion’smaininterestrateriskarisesfromdifferencesbetweentheinterestrate
exposuresonthereceivablesandpayablesthatformanintegralpartofaCreditUnion’soperations.The
CreditUnionconsidersratesofinterestreceivableoninvestmentsandmembers’loanswhendecidingon
thedividendratepayableonsharesandonanyloaninterestrebate.
2.Interestrateriskdisclosures
Thefollowingtableshowstheaverageinterestratesapplicabletorelevantfinancialassetsandfinancial
liabilities
2016
2015
Amount
Average
Amount
Average
FinancialAssets
€
InterestRate
€
InterestRate
Loanstomembers
7,691,170
8.66%
7,136,125
8.66%
_________
______
_________
______
ThedividendpayableisatthediscretionoftheDirectorsandisthereforenotafinancialliabilityoftheCredit
UnionuntildeclaredandapprovedattheAGM.
3.Liquidityriskdisclosures
AllofthefinancialliabilitiesoftheCreditUnionarerepayableondemandexceptforsomemembers’shares
attachedtoloansandmembers’depositswhichhaveafixedmaturitydate.
4.Fairvalueoffinancialinstruments
TrinityCreditUnionLimiteddoesnotholdanyfinancialinstrumentsatfairvalue.
21
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TRINITYCREDITUNIONLIMITED
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
17. TotalReserves
Dividendand
loaninterest
rebatepaid
€
Appropriation
ofcurrent
yearsurplus
€
59,876
Transfers
between
reserves
€
–
Balance
30/09/16
€
3,203,002
–
100,000
100,000
81,972
–
–
–
_________
–
(100,000)
–
–
_________
387,710
333,769
207,167
152,085
_________
141,848
_________
–
_________
4,383,733
_________
TotalRegulatoryReserve
Balance
01/10/15
€
3,143,126
OperationalRiskReserve
–
OtherRealisedReserves
UndistributedSurplus
Generalreserve
Baddebtsreserve
Dividendreserve
360,925
433,769
207,167
152,085
_________
Totalrealisedreserves
4,297,072
_________
_________
(55,187)
_________
UnrealisedReserves
Specialreserve
28,464
_________
_________
–
_________
–
_________
28,464
_________
Totalunrealisedreserves
28,464
_________
_________
–
_________
–
_________
28,464
_________
Totalreserves
4,325,536
_________
_________
(55,187)
_________
_________
141,848
_________
_________
–
_________
_________
4,412,197
_________
_________
(55,187)
TheCreditUnionisrequiredtomaintainaRegulatoryReservethatsupportsthecreditunion’soperations,
providesabaseforfuturegrowthandprotectsagainsttheriskofunforeseenlosses.Thecreditunionneeds
tomaintainsufficientreservestoensurecontinuityandtoprotectmembers’savings.TheCentralBank
expectsthatcreditunionswhosetotalregulatoryreservesarecurrentlyinexcessof10percentoftotal
assetswillcontinuetomaintainreservesatexistinglevelsonthebasisthatthesecontinuetoreflectthe
boardofdirectors’assessmentoftheappropriatelevelofreservesforthecreditunion.
Thebalanceontheregulatoryreserverepresents10.50%oftotalassetsasat30September2016(10.94%
asat30September2015)
Noteonoperationalriskreserve
Thebalanceontheoperationalriskreserverepresents0.33%oftotalassetsasat30September2016.
Thespecialreserverepresentsthesharebalancesofmembersnolongeractiveinthecreditunion.Theyare
heldinspecialreserveuntilsuchtimeastheyareclaimedorcanbelegallytakentogeneralreserve.
22
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ANNUALREPORT&ACCOUNTS2016
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
18. Dividends,LoanInterestRebateandOtherReturnstoMembers
Thedirectorsrecommendthefollowingdistributions:
2016
Rate%
€
Dividendonshares
0.12%
31,611
Loaninterestrebate
5.00%
31,263
InterestonCUcash
0.12%
1,369
_______
_______
2015
Rate%
0.25%
–%
0.25%
_______
€
55,187
–
3,102
_______
InaccordancewithFRS102“EventsaftertheEndoftheReportingPeriod”,dividendsandreturnstomembers
areaccountedforinthefinancialstatementsaftertheyareapprovedbythemembersingeneralmeeting.
Thereturnstomemberspaidinthecurrentandprioryearperiodswereasfollows:
2016
2015
€
€
Dividendpaidduringtheyear
55,187
107,942
Dividendrate
0.25%
0.5%
19. RateofInterestChargedonMembers’Loans
Thecreditunioncurrentlyoffersloansatthecurrentinterestrates:
RegularLoan
9.95%
OneYearLoan
7.50%
CoveredLoan
5.50%
CommunityLoan
3.75%
20. RateofInterestPaidonMembers’Deposits
InterestonCUcashaccountsispaidinDecembereachyearatarateof0.125%.
21. PostBalanceSheetEvents
TherearenomaterialeventsaftertheBalanceSheetdatetodisclose.
22. ContingentLiabilities
Allinterestaccruedintermdepositinvestments,governmentandinvestmentbondsandothertermaccounts
inauthorisedinstitutionsareguaranteedonlyifheldtomaturity.Inanunlikelyeventofearlyencashment
theremayexistearlysettlementpenaltiesandorcapitallosses.Theboardofdirectorshaveconfirmedthat
allsuchinvestmentsaretobehelduntiltheirrespectivematuritydates.
23. CapitalCommitments
TherewerenocapitalcommitmentseithercontractedfororapprovedbytheBoardattheyearend.
24. InsuranceAgainstFraud
Thecreditunionhasinsuranceagainstfraudintheamountof€2,600,000incompliancewithSection47of
theCreditUnionAct,1997(asamended).
23
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TRINITYCREDITUNIONLIMITED
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
25. RelatedPartyTransactions
Thecreditunionhasidentifiedthefollowingtransactionswhicharerequiredtobedisclosedundertheterms
ofFRS102‘RelatedPartyDisclosures’
Thefollowingdetailsrelatetoofficersandrelatedpartyaccountswiththecreditunion.Relatedparties
includetheboardofdirectorsandthemanagementteamoftheCreditUnion,theirfamilymembersorany
businessinwhichadirectorormanagementteammemberhadasignificantshareholding.
No.of
loans
2016
€
152,000
2015
€
89,299
Totalloansoutstandingbyrelatedparties
%ofgrossloanbook
11
90,279
1.17%
60,179
0.84%
Loansadvancedtorelatedpartiesduringtheyear
10
59,380
Totalprovisionsforloansoutstandingtorelatedpartiesatyearend
–
Totalprovisionchargeduringtheyearforloansoutstandingtorelatedparties
–
Totalsavingsheldbyrelatedparties
26. ReconciliationofTransitiontoFRS102
TheseareTrinityCreditUnionLimited’sfirstfinancialstatementstocomplywithFRS102.Thedateof
transitiontoFRS102is1October2014.
Thereconciliationsbelowhighlightthekeyimpactonthesurplusforthefinancialyearandonthereserves
oftheCreditUnion.
IncomeandExpenditureAccount
ReconciliationofsurplusfrompreviousIrishAccountingStandardstoFRS102
30Sep’15
€
(99,469)
Deficitaspreviouslyreported
GeneralloanprovisionnotallowedunderFRS102
(148,378)
Interestonmembers’loansusingeffectiveinterestmethod
1,615
________
(246,232)
________
________
DeficitinaccordancewithFRS102
BalanceSheet–OpeningReserves
ReconciliationofCreditUnion’sopeningreservesfromprevious
IrishaccountingstandardstoFRS102
Openingreservesaspreviouslyreported
Adjustmentwithrespecttoareviewofloanprovisioning
methodologyunderFRS102
Interestonmembers’loansusingeffectiveinterestmethod
OpeningreservesinaccordancewithFRS102
24
30Sep‘16
€
4,167,281
30Sep‘15
€
4,374,692
145,447
293,825
12,808
_________
4,325,536
_________
_________
11,193
_________
4,679,710
_________
_________
Trinity Accounts only 2016 • A5_Layout 1 29/11/2016 13:56 Page 25
ANNUALREPORT&ACCOUNTS2016
NotestotheFinancialStatements (contd.)
Fortheyearended30thSeptember2016
26. ReconciliationofTransitiontoFRS102(contd.)
Theadjustmentsareexplainedasfollows:GeneralLoanProvision
Thecreditunionhasundertakenadetailedreviewofitsbaddebtprovisioningmethodologyaspartofthe
transitiontothenewaccountingframeworkFRS102.Aspartofthisreview,creditunionmanagementhave
consideredtheresultsofinternalandexternalloanbookreviewproceduresundertakeninthefinancial
periodsto30September2014,30September2015and30September2016aswellashistoricalandcurrent
loanimpairmenttrendsinthesethreeperiods.Followingthisreview,unallocatedgeneralprovisionsof
€293,825wereidentifiedintheoverallloanprovisionsat30September2014whichdonotsatisfythecriteria
assetdowninSection11ofFRS102inrelationtoobjectiveevidenceofimpairment.Onthisbasisitis
consideredappropriatethattheseunallocatedprovisionsshouldnotberecognisedinthefinancialstatements
aspreparedunderFRS102.Areviewofprovisionsat30September2015resultedinareductionof€250,400
inoverallprovisions,howeverasmanyofthesereductionsarereflectedintheperiodended30September
2014,anincreaseinprovisionof€148,378isrequired.
InterestonMembers’Loans
OntransitiontoFRS102,thecreditunionhasreviewedandupdateditsaccountingpolicywithrespectto
the recognition of interest income from member loans to ensure compliance with the standard. The
accountingpolicyadoptedstatesthatinterestonloanstomembersisrecognisedusingtheeffectiveinterest
methodandiscalculatedandaccruedonadailybasis.Theboardofdirectorsconsiderthatitisappropriate
toreflectasimilaraccountingpolicyinthefinancialstatementsto30September2014and30September
2015respectivelyandthishasresultedintheinclusionofaccruedinterestincomeof€11,193and€12,808
beingrecognisedintherespectivefinancialyears.TheaccruedloaninterestincomereflectedintheFRS102
transitionaladjustmentshasbeenrecognisedonmembersloansidentifiedasnotbeingimpairedatthe
respectivefinancialyearends.
27. AuthorisationandApprovalofFinancialStatements
Theboardofdirectorsauthorisedandapprovedthesefinancialstatementsforissueon16thNovember
2016.
25
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TRINITYCREDITUNIONLIMITED
AdditionalInformation
(notformingpartofthestatutoryauditedFinancialStatements)
fortheyearended30September2016
Schedule1.InterestonLoans
2016
€
622,929
2,339
________
2015
€
608,841
1,615
________
TotalperIncomeandExpenditureAccount
625,268
________
________
610,456
________
________
Schedule2.OtherInterestIncomeandSimilarIncome
2016
€
225,986
________
2015
€
295,782
________
TotalperIncomeandExpenditureAccount
225,986
________
________
295,782
________
________
Schedule3.OtherIncome
2016
€
269
21,795
4,777
3,384
________
2015
€
254
35,477
4,407
1,819
________
TotalperIncomeandExpenditureAccount
30,225
________
________
41,957
________
________
Schedule4.OtherGains
2016
€
–
________
2015
€
–
________
–
________
________
–
________
________
Loaninterestreceived
Loaninterestreceivable
Investmentincome
Entrancefees
E.C.C.U.rebate
Foreignexchangeincome
Otherincome
TotalperIncomeandExpenditureAccount
26
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ANNUALREPORT&ACCOUNTS2016
AdditionalInformation
(notformingpartofthestatutoryauditedFinancialStatements)
fortheyearended30September2016
Schedule5.OtherManagementExpenses
2016
€
8,809
123,820
1,369
7,509
7,797
6,282
14,743
15,484
13,840
33,695
12,165
6,265
12,342
12,954
27,420
18,043
16,649
1,000
4,863
67
18,433
15,861
6,904
________
2015
€
7,097
110,298
3,102
10,607
10,041
7,836
15,900
21,071
23,804
28,514
13,027
6,948
37,495
8,579
42,267
15,888
17,524
5,000
11,071
1,373
30,698
22,661
6,904
________
TotalperIncomeandExpenditureAccount
386,314
________
________
457,705
________
________
Schedule6.OtherLosses
2016
€
34,797
________
2015
€
19,955
________
34,797
________
________
19,955
________
________
Staffpensions
E.C.C.U.Insurance
Members'CUcashinterest
Rates
Generalinsurance
Lightandhea
Repairsandmaintenance
Security
Printing,postageandtelephone
Computercosts
Conventionandseminarexpenses
Travelandsubsistence
Debtcollectionandotherprofessionalcosts
Internalaudit
Consultancyandregulatoryfees
Audit
Bankcharges
DeathBenefitInsurance
Generalexpenses
Cashshort
Affiliation&registrationfees
Promotion,training,educationanddonations
Amortisationofbondpremium
Provisionforloss/(gain)oninvestments
TotalperIncomeandExpenditureAccount
27
Trinity Accounts only 2016 • A5_Layout 1 29/11/2016 13:56 Page 28
Name __________________________________________
Age:______
MembershipNumber: ____________________________
ContactTelephoneNumber: _______________________
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