Board of Directors Report for the year ended December 31, 2004.

 We are pleased to report to you the operations of the Society for the year ended 31st December 2004.

 The year 2004 was another challenging one for the Society as it continued to confront the tough National Economic problems. The Society was faced with competitions from other financial sectors as well as from institutions, which offer Higher Purchase. This has caused us to brace ourselves to face every situation, challenge and difficulty, which arises, and to develop and create new mechanisms and solutions to meet them. As we forge our way to meet the uncertain, let us together put all our energies, talents and continued effort to make this Credit Union one to be reckoned with.

 To arise above the challenges we embarked on the following:

 · The Society did some advertising

· Membership meetings were held in the various collection points

· Training for small business owners of Grand Bay community

· Training for Board, Committee members and staff

· The Society organized a week-end retreat

· Money was invested in other financial institutions, at competitive interest rates.

 BOARD OF DIRECTORS

The composition of the Board as at December 31st, 2004 was as follows:

 Mr. Andrew Darroux - President

Mr. McMorris Commodore - Vice President

Mr. Phanuel Hilaire - Secretary

Miss Verna Samuel - Treasurer

Mrs. Catherine Fontaine - Ass. Secretary/Treasurer

Mrs. Linda Walter - Director

Miss Alex Norris - Director

Mr. Evans James - Director

Miss Magdalene Joseph - Director

Mr. Armour Thomas - Past President

Mrs. Nadia Pacquette Anselm - Past Director

Mrs. Andrea St. Hilaire - Past Director

Note: From June to December 2004, Alex Norris, Verna Samuel and Evans James were co-opted to serve on the Board. From September to December 2004, Magdalene Joseph was co-opted, and Armour Thomas served from January to May 2004.

Mr. Armour Thomas and Mrs. Andrea St. Hilaire retired based on the Act#15 of 1996 section 70.

Mrs. Nadia Pacquette Anselm resigned in August 2004 and was replaced by Miss Magdalene Joseph.

OFFICE MANAGEMENT

 For the period under review the office staff comprised of the following:

Mrs. Germaine Jno Phillip - Manager

Miss Audette Anselm - Senior Clerk/Loans Officer

Miss McNairline Baron - Junior Clerk/Accounts

Mrs. Seraphine Joseph - Junior Clerk/Teller

Miss Catherine Charles - Office Attendant/Messenger

Miss Amarel Baron - Temporary Clerk 

OVERVIEWS

The Society continued to attract new persons into its membership, which grew from 2991 in 2003 to 3147 in 2004, reflecting an increase of 156 new members or 5.2% increase.

 Share Capital grew from $3,752,553.00 in 2003 to $4,624,892.00 an increase of $872,339.00 or 23. 24%.

 SHARE GROWTH

 

Deposits grew from $813,834.00 in 2003 to $849,665.00 in 2004 an increase of $35,831.00 or 4.4%.

Fixed deposits grew from $292,486.00 in 2003 to $338,916.00 an increase of $46,430.00 or 15.87%.

 The Loans portfolio also increased from $3,129,742.00 in 2003, to $3,890,982.00 in 2004 an increase of $761,240.00 or 24.23%.

 SUMMARY OF FINANCIAL PERFORMANCE

 For the year under review, gross surplus before appropriation was $97,680.00 in 2003 as compared to $205,860.00 in 2004. This represented an increase of $108,180.00 or 11%. Gross revenue was $427,59.00 in 2003 as compared to $486,503.00 in 2004 an increase of $58,994.00 or 14%.

Total expenditure decreased from $308,034.00 in 2003 to $268,080.00 a decrease of $39,954.00 or 12.97%.

Interest on loans of $394,058.00 accounted for 81% of revenue. The largest expenses, which were salaries and wages of $103,861.00, accounted for 39% of total expenses.

 ASSETS

 Total assets increased from by $4,787,260.30 in 2003 to $5,848,904.07 in 2004 an increase of $1,061,643.77 with members’ loans accounting for the largest component of the asset based at 67% of total assets.

 ASSETS

DELINQUENCY

The loans officer has been aggressively pursuing delinquent members and we have seen a

reduction in the delinquency portfolio.

Members were arbitrated.

During the year under review seven matters commenced in the Courts with respect to delinquent accounts. Judgment was obtained with respect to two (2) of those matters.

 The Board takes this opportunity to remind members of the importance of honoring their obligations to the Society in accordance with their loan agreements. In servicing your debts your Board ensures that members savings are properly safeguarded.

 EDUCATION AND TRAINING

 In order to maintain the efficiency and effectiveness of the services offered, Staff, Board as well as committee members devotedly committed themselves to attend education and training sessions offered by the League.

 Mrs. Germaine Jno Phillip, Manager completed a Certificate for Advance Business Diploma with Business Training Centre. The Board of Directors congratulates her achievements and wishes all those currently undertaking studies, success with their programmes.

Members of staff participated in a training session on good customer relations.

 The staff received training from Mr. Kelvin Henderson on Hardware maintenance.

 Directors and the Manager attended a training session on Capitalization and Equity in Credit Unions at the Salisbury Government School on February 10, 2004.

 The Supervisory Committee attended a training session on the role of the Supervisory Committee at the Grand Bay Community Centre facilitated by the Co-operative Division on June 16th 2004.

 Education sessions were conducted at Petite Savanne and Bagatelle on permanent shares and other services offered by the Credit Union. Mr. Ackroyd Birmingham, General Manager of Dominica Co-operative Societies League conducted the session on Permanent Shares. These sessions were well attended by the members in the various localities mentioned above. Special mention must be made of Bagatelle and Fond St Jean for their attendance at these meetings. This also resulted in increase membership, loans and use of the other services offered.

 Mr. Arthurton Nesty conducted a training session for Small Business Owners at Bubble City on Sunday 20th October 2004 on record keeping and accounting. The participation was very interactive. A request for follow-up session was made and was conducted by Miss Verna Samuel in October of 2004.

 Directors, Committee Members and staff attended a training session on security at the Salisbury Government School on August 05th 2004. Inspector Laudat and Platinum Security conducted the session.

 DONATION

 The society made a donation of $1000.00 to the Grand Bay Credit Union Colts.

 Donations were made to the Grand Bay Secondary School and the Grand Bay Primary School to assist in their school graduation.

 The Society donated a video to the Bagatelle Primary School.

 Donations were also given to the Southern Cultural Committee to host their independence celebration.

 JOINT COMMITTEE MEETING

 Two joint committee meetings were held for the year; in May 2004 to discuss the reports for the Annual General Meeting and the other in September to discuss the overall operations of the Society. During that joint committee meeting, a Building Committee was put in place.

CREDIT UNION WEEK

 The Credit Union observed Credit Union Week with activities planned from October 17th to 24th 2004. The Board and staff attended a church service at Petite Savanne. There was an education session at Bubble City, a visit to a sister Credit Union and Blood Pressure and Glucose test. The week ended with a sports day on the Geneva Playing Field, along with fund raising for the kiddies Club. The week of activities was successful.

 RETREAT

 The Society held its annual planning retreat at the Holy Redeemer Retreat House at Eggleston in December 2004 for members of the Board of Directors, Committee members and Staff. The retreat was seen to be a success. At the retreat, a plan of action was developed for the year 2005.

 REPORTS

 The Board of Directors was very unhappy with the non-submission of monthly reports by the Credit and Supervisory Committee. The Board will continue to persuade the committees to submit reports as requested keeping in line with the statutory rules and regulations of the Society.

 ACKNOWLEDGEMENT

 The Board wishes to express its gratitude and appreciation to the management and staff who with their support, loyalty and commitment, the Society was able to weather the economic challenges during the year 2004. Special thanks also to the members of the Supervisory and Credit Committees for the work they have rendered to the Society. Most of all, the Board wishes to express sincere thanks to you our valued members for your continued support and loyalty.