DIRECTORS' MISSION STATEMENT - Hillingdon Credit Union 30th AGM 18th February 2021
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Hillingdon Credit Union 30th AGM
18th February 2021
DIRECTORS’ MISSION STATEMENT
Hillingdon Credit Union exists to empower everyone within our Common Bond (Hillingdon, Harrow, Hounslow,
Ealing, Brent, Slough and South Bucks) to take control of their finances, so that money supports them to
achieve their goals and to live well and safely within a fair, equal and supportive society.
PEOPLE HELPING PEOPLE
Enhance people’s knowledge of the values of the Credit Union
Encourage members to save regularly
Enable members to take ‘not for profit low cost loans’
Help members manage their money wisely
Empower all members to make full and profitable use of their accounts
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community
130th AGM- AGENDA
1. Opening introduction
Chair – Neil Jones
2. Apologies
3. Minutes of last AGM
4. Reports (to be read prior to meeting)
President
Treasurer/Audit report
Credit Committee
Supervisory Committee
Directors attendance 2020
Compliance confirmation
5. Motions to the AGM
Dividend
Auditor – Tender for appointment
Change of rules
A] Common Bond change
B] Maximum term for board directors
6. Election of Directors
7. Election of Supervisory Committee
8. Speakers
The Mayor – Cllr Teji Barne
9. Presentations
Winner of the AGM prize draw
Chair to the Mayor
10. Close
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community.
2Hillingdon Credit Union
29th AGM Minutes 2020
Present:
Debbie Allen Credit Controller
Steve Allen Business Development Manager
Richard Ashaye Director
Garry Burgess Director
Suzanne Cave Administrator
Lawrence Greenberg Director
The Mayor Cllr David Yarrow
The Mayoress Mary O’Connor
Emma Cawthorne Office Manager
Peter James Reconciliation Clerk
Nigel White Director
Freeman Rusere Treasurer
Andrew Smith Supervisory
Patrick Von Mahoney Member
Chris Allum Member
Lauren Chamberlain Administrator
Jean Dewey Member
Rosemary Jenkins Member
Lourdes Miguel Member
Stuart Mathers Member
Matthew Ratcliffe Member
Dianne Skinner Member
Catherine Oduma Member
Barbara Kalopsidiotis Member
Graham Tomlin Member
Andrea Edmond Non Member
Apologies:
Titus Osunro Member
Jackie Peacock Member
Ben Beadle Member
Nick Green Member
Pat Fernandes Member
1 OPEN MEETING
Lawrence Greenberg thanked members for attending and welcomed the Mayor.
2 APOLOGIES
Noted above.
3 MINUTES OF THE AGM 2019
The minutes were signed and adopted as a true record. Agreed by Andrew Smith, Seconded by Nigel White
34 ELECTION OF DIRECTORS
Richard was voted in unanimously for a further 3 years. Agreed by Freeman Rusere and Seconded by Andrew Smith.
5 REPORTS - circulated and read prior to meeting
President-Lawrence Greenberg
Treasurer/Audited Accounts-Freeman Rusere
Supervisory Committee – Andrew Smith
Loans Committee-Steve Allen
Directors Attendance 2019
Compliance confirmation
Stuart Mathers questioned the bad debt provision which were much lower than in previous years. Steve Allen
confirmed there had been the usual level of new provisions but that we had been more successful in the recovery of
bad debts which offset new defaulting members.
6 MOTIONS TO THE AGM
a) Dividend
‘We propose a 1.25% dividend be paid on shares for the year 2018/2019. Proposed by Freeman Rusere, Seconded
by Andrew Smith. Motion carried unanimously by members present.
b) Auditor
‘In line with our established policy we will obtain quotes from a number of auditors to ensure we have best value
and service. We seek agreement to appoint the winning auditor’. Proposed by Freeman Rusere, Seconded by
Andrew Smith. Motion carried unanimously by members present.
c) Honorarium
This is a payment made to the Treasurer. We propose that this remains at £1000.00 for the services in the past year.
Proposer Nigel White Seconded by Andrew Smith. Motion carried unanimously by members present.
D) South Bucks County Council
It was agreed that this employer, and its forthcoming replacement be added to our existing list of confirmed
employers covered under our common bond. Proposed by Andrew Smith. Seconded by Debbie Allen. Motion carried
unanimously by members present.
7 SPEAKER
The Mayor - Cllr David Yarrow
He spoke about Social discrimination and financial exclusion and pointed out that we all need Tolerance and
Understanding.
8 PRESENTATIONS
Lawrence presented a cheque for £150 to the Mayor for his two nominated charities
The Mayor then presented Steve Allen with the Peter Rhodes Award
49 CLOSE
Lawrence thanked everyone for attending and closed the meeting.
Meeting ended at 13:35 pm
Emma Cawthorne
Credit Union Office Manager
14th February 2020
Signed
Date
LAWRENCE GREENBERG
President
Hillingdon Credit Union
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community.
530th AGM
Presidents Report
Welcome to what is a unique event – the first ever virtual Annual General Meeting of Hillingdon Credit Union.
We would particularly like to welcome the Mayor of Hillingdon Cllr Teji Barne.
This has been a year like no other that I can recall. Covid has turned our world upside down, caused distress,
illness and, sadly, deaths of those near and dear to so many of us. The 21st century was expected to be a
more hi-tech era than hitherto – but nobody envisaged that virtual reality would in fact be reality!
Throughout this difficult period HCU has continued to support its members and, in addition, we have
welcomed the CUBE members, many of whom are here today. You are indeed very welcome. Our board has
also been strengthened by the addition of several talented and experienced CUBE board members and we
are grateful that they have decided to offer themselves to assist us in taking our Credit Union forward.
We are in a very strong financial position, which is detailed in the reports, and highlights include:
· Despite the considerable issues caused by this ‘year of the pandemic’ we have had a very solid trading year
and exit 2020 in an even stronger position than we were at the beginning
· We continue to support members with very competitive loans, with many making substantial savings on
what they would have been offered elsewhere
· Financial inclusion is key to what we do and we continue to work closely with a number of Council
departments to assist residents in the Borough
· We have been chosen by Brent council to administer its loan/grant initiative and this has been underway
for some 4 months now and to date we have processed 38 applications and advanced, on behalf of Brent,
£38,000
· We have a sound and effective board - all of whom are volunteers and we have enriched it by augmenting
it with several new members who bring considerable breadth of skills and experience to guide HCU as it
continues to move forward. Thumbnail sketches of all board members are on our website so that you can
see who they are and what experience they bring to give you comfort that your Union is in good hands
· We have suggested a good dividend, well ahead of most of our peers, to be paid to members to reflect our
strong year.
Looking ahead
· We have no idea what the future will hold – and we are nowhere near the end of the pandemic – but we
shall strive to continue to safeguard the interests of the members and to offer competitive loans
6· We are still being approached by other credit unions who wish to discuss mergers and we shall place any
initiatives that the Board deem merit worthy before you in due course
· we shall be introducing a new system in the coming year to replace our ageing IT infrastructure, but also
to further enhance the service we offer to our members during 2021 which also gives us the capability of
additional product development
· We have placed two motions before the AGM
one to allow us greater flexibility within an extended and augmented Common Bond area
– to enable us to respond more rapidly to some very interesting opportunities we are
receiving;
and also, a motion to bring our Board practices into line with current best practice. I trust
that we will receive your full support for these essential changes
Final thoughts
I would like to thank everyone attending today as well as our staff who have been carrying on regardless
throughout this pandemic, and my fellow Board members for their support and dedication to guiding the
Union throughout 2020.
Whilst the future is uncertain – especially in the immediate short to medium term - you can rest assured that
HCU, with our prudent money management, is very well placed to weather these uncertainties.
Neil Jones
President Hillingdon Credit Union
January 2021
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community.
730th AGM
Treasurers Report
Business Review
Despite the significant disruption caused by the Covid 19 pandemic, financial performance achieved by HCU
is comparable to last year. The spring 2020 lockdown severely impacted our member contact as offices were
closed and travel restricted. The remote working practices put in place have been successful and the
performance and engagement of colleagues have not been significantly impacted.
Members’ savings have increased again for the eighth year in succession and are now well in excess of
£4.7m, an increase of 32% from last year, whilst cash and deposits are at approximately £4.5m, an increase
of 40% from last year. The loan book has decreased marginally by 2% (£31,386) due to the disruption
caused by the lock down and profit before tax is down 17% (£26,886) from 2019.
Continuing focus on sound financial practices and our monitoring of costs to keep expenditure under control
have allowed us to mitigate the difficulties caused by the current economic situation.
In October 2020, we completed our merger Cube credit union. The impact of the merger has not been
considered in these financial statements however, the merger has increased the number of members by 700
and improved our penetration within the common bond area.
Financial Review
Core business income has been comparable to last year with a slight decrease of 1% (£2.5k) and we continue
to get a return from the cash and bank balances we hold at other financial institutions. Our continual focus
on credit control and bad debt write offs have ensured last year’s levels around 2.6% remain in line with our
long-term trend and below the industry average.
This year`s administrative expenses have increased by £7,330 as we have hired an additional member of
staff during the year. We are also continuing to invest in our IT for improved service to our members, so
costs are likely to be at the same level this year. Increase in costs have been minimised by taking advantage
of the governments furlough schemes and other sound cost management policies and practices.
Profit before tax for the year is £129,001. Our statutory reserves remain above the recommended minimum
level of more than 5% of our assets. This helps us to maintain our status as one of the healthiest Credit
Unions in the country and provides even more stability for our members and their savings.
As treasurer of Hillingdon Credit Union Ltd, I am recommending a dividend of 0.5% this year which reflects
the current economic climate where base rates have remained around 0.1%. This dividend will be one of
the highest rates available in the UK for instant access savers.
It is the auditor’s opinion that the financial statements (attached) give a true and fair view of the Credit
Union’s affairs as at 30 September 2020, and of its income and expenditure and cash flow for the year ended
on that date. Hillingdon Credit Union has complied with the set of rules as laid down by the Prudential
Regulation Authority and the Financial Conduct Authority, the Regulators of all financial institutions in the
UK.
8Future Prospects
The Credit Union is taking active steps to grow and increase its member base within our common bond area.
Beyond the recent merger with CUBE, we are exploring further expansion opportunities. Investment in
upgrading our IT systems is also a priority in the coming year as we look to improve our member experiences
and leverage enhanced technology to unlock new sources of value.
The impact of Covid-19 will continue in 2021 and beyond, however, we believe that we have a strong balance
sheet and will continue to provide a sound financial investment as well as providing low cost loans to members
and those in the community to whom normal credit facilities are not available.
Moji Macaulay FCA
Treasurer
January 2021
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community.
930th AGM
Supervisory Committee Report
Committee Purpose
The Supervisory committee`s role is to maintain oversight of the financial position and soundness of the
credit union, operating independently from the credit union staff and directors.
In line with Finance Conduct Authority (FCA) expectations the Supervisory committee is expected to monitor
member accounts including those of the HCU Board and employees.
As such during the first few months of 2020 physical routine checks were carried out on both paper based
and online applications to join the HCU. Due to the Covid pandemic these physical checks have not been
able to be carried out since March.
Monthly checks are also carried out on the financial transactions carried out within the HCU members system
and the corresponding Bank transactions. These checks are conducted on randomly selected accounts each
month in line with FCA recommendations and have continued despite the limited access to the actual office.
In October the post holder of the internal accountant changed and to allow the new post holder to get up to
speed with HCU practices the Supervisory Committee has temporarily paused the monthly financial checks
but these will resume in the New Year.
Overall the Supervisory Committee found the HCU continues to be well run and has shown great adaptability
to continue serving its members during the pandemic. The committee has confidence that there are sound
practices in place and continues to be impressed with the depth of knowledge and diligence carried out by
the senior team, especially in the vetting of loan applicants.
In addition to the Supervisory Committee internal checks, it should be noted that, as standard banking
practice, a thorough audit is carried out by an external independent auditing company engaged by the HCU.
All findings are reported to the full HCU Board at the monthly Board meetings.
Committee Membership
I would like to mention that the expected makeup of the committee would normally include 3 people, all
volunteers, but we currently have 2 vacancies. If any member would be interested in joining the committee
we are currently recruiting so please do get in touch.
Finally, I would like to pass on my thanks to the team for their co-operation in answering all my questions,
especially during such a challenging year.
Andrew Smith – Chair
Supervisory Committee
January 2021
Hillingdon Credit Union is owned and managed by its members for its members and the local
community.
1030th AGM
Credit Committee Report
2020 has been a challenging year for everyone, with substantial health concerns, unprecedented financial
strain and uncertainty faced by many members. The effects of Covid 19 will continue well in to 2021 with
much higher unemployment and for many a legacy of debt caused by reduced income. There is light at the
end of the tunnel with the vaccination program rolling out and the dreaded B word, Brexit, appears to have
been all but resolved.
Despite the challenges, we have seen an increased demand for loans and as can be seen below, there has
been an increase in the number of loans granted and an increase in the average size of loan, reaching the
highest we have seen in the recent past. We continue to ensure we provide access to affordable credit where
loan requests meet our prudent loan policy and we continue to provide substantial savings to our members
via the interest rates charged on our loans, compared to the high street banks and payday lenders. We note
that the high street banks have substantially increased the cost of overdraft borrowing, with Lloyds/Halifax
standard agreed rate now 49.9% APR. As such it is no surprise that we are increasingly providing
consolidation loans to members to reduce their monthly outgoings.
Financial year Number of loans Growth Average loan Net bad loans
2015 1822 36% £688 4.22%
2016 1956 7% £741 4.39%
2017 1992 2% £716 2.1%
2018 1926 -3.3% £693 2.5%
2019 1952 1.4% £771 0%
2020 2049 5% £792 2.6%
Q1 2021* 2508 22% £767 2.4%
*Pro rata growth rate albeit Q1 tends to be our busiest quarter.
As can be seen from the above chart, in the first quarter of our new financial year we have seen a healthy
increase in loan applications granted and December 20 saw the largest amount lent in our history. This
confirms that members value our affordable and straight forward loan terms. It is too early to say this is an
established trend given the number of headwinds the economy faces and I suspect the resolution to Covid
19 will be the key determining factor over the coming 12 months.
I have also set out the level of loans where payments are in arrears/default. The increase seen in the last
financial year is no surprise and we anticipate that there may be an increase in the 6 months ahead. The
improved credit checks introduced over 5 years ago continue to hold us in good stead, with the national
average for loan defaults within Credit Unions, standing in excess of 5%. Our performance confirms the
11suitability of our policies and the substantial work carried out by our Credit Controller in agreeing manageable
repayment plans for members who face financial difficulty.
Further changes in the regulatory environment and costs of being on the high street has resulted in the
closure of many of the high cost lenders including many Payday Lenders and high street companies such as
Brighthouse. The high street banks have not been immune, with a substantial increase seen in both bank
branches closing and ATM’s withdrawn and with the historically low savings rates, we are likely to see further
contraction of financial services in the high street.
Our provision reserves exceed the minimum standard required by the regulator, thus ensuring we hold a
good buffer against future defaults, which places us in a better position that the vast majority of other Credit
Unions. In addition our capital reserves remain in the top quartile position in our industry and we are in the
top three of all Credit Unions in the South East of England as of 30th September 2020. This very strong
financial position ensures member’s interests are fully protected and allows us to pay a healthy dividend,
which stands in the top 5% of all instant access accounts across the UK.
Finally I would confirm all members’ deposits are covered by the Government FSCS scheme, guaranteeing
all qualifying deposits up to the limit of £85,000.
The Credit Committee would like to thank all of our staff for their support during this very busy year and our
members for their continued support and co-operation during the year and we wish you all a happy, healthy
and prosperous 2021.
STEVE ALLEN
On behalf of the Credit Committee
January 2021
Hillingdon Credit Union is owned and managed by its members for its members and the local
community.
12Director attendance during 2020
DIRECTORS ATTENDANCE AT BOARD MEETINGS 2020
Total
Jan Feb Mar Apr May Jun Jul Aug Sep
Oct Nov Dec
Richard Ashaye P A/S P P P P P P P P P P 92%
Ben Beadle A/S A/S P A/S P A/S P L L L L L 38%
Lawrence Greenberg P P P P P P P P L P L L 100%
Freeman Rusere A/S P P P A/S P P P L P L L 78%
Nigel White A/S P A/S P P P P P L L L L 75%
Garry Burgess P P S A/S A/S A/S P P P S P P 58%
Neil Jones P P P P P 100%
Lin Benjamin P A/S P P P P P P P A/S P P 83%
Moji Macaulay P P P P P 100%
Joke Verheyden P P P P P 100%
David Payling A/S P P 67%
Patricia Wright G G P A/S A/S 33%
Kathryn Willis G P P P 100%
Andrew Smith P P P A/S A/S A/S A/S A/S A/S P A/S A/S 33%
Meeting cancelled
P = Present
A = Absent
A/S = Absent / Apologies
sent
N/A = Not applicable if volunteer not in
attendance.
L = Left
G = Guest
Total = Percentage
of eligible meetings
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community.
1330th AGM
Compliance confirmation
In line with Rule 10 of the PRA Rule Book, the Board confirms compliance with the following governance
issues:
1] The Board confirms compliance with the Depositor Protection Scheme and specifically the following items:
Identification of eligible deposits
Production of the report to the PRA within 24 hours of a request, in an electronic form with the data
sent in a secure form
2] The Board confirms compliance with the insurance requirements with the following cover in place until
30th September 2021. Cover is maintained at all times.
The Credit Union is covered in respect of loss suffered or liability incurred by reason of the fraud or other
dishonesty of any of its officers or employees;
The Credit Union is covered up to the following limits
Aggregate limit of liability £2,200,000
Single loss limit of liability £400,000
Premises and contents £100,000
Transit one employee £1,000
Transit two or more employees £10,000
Audit expenses £1,000
Contents of employees or members £6,400
Retention – 1% of limit available up to £2,500 £2,500
Employers liability £5,000,000
3] The board confirms that we participate with “additional activities” in respect of Investments. As such we
confirm:
We maintain an up to date financial risk management policy that covers the following key areas:
Both interest rate and funding risk
Aggregate limits are in place on individual investments
Limits are in place to ensure there is not excessive funding concentration risk for both source and
time band concentrations
Systems and controls are in place in respect of these matters
The governing body monitors and assesses risks associated with carry on investment activities on at
least a monthly basis.
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community.
1430th AGM – MOTIONS
DIVIDEND PERCENTAGE - ‘We propose a 0.50% dividend to be paid on
shares for the year 2019/2020.’ The proposed dividend will also cover all
balances held by members of Credit Union for Brent and Ealing, following
the “transfer of engagements” Proposer Moji Macaulay, Treasurer
AUDITOR – ‘In line with our established policy, we will obtain quotes from
a number of auditors to ensure we have best value and service. We seek
agreement to appoint the winning auditor’. Proposer Moji Macaulay,
Treasurer
RULE CHANGES
1] Common bond
MEMBERSHIP
Common bond qualifications for membership
1. Admission to membership of the Credit Union is restricted to:
a. An individual residing in or being employed within the localities of the London Boroughs of Hillingdon,
Brent, Harrow, Ealing, Hounslow, Hammersmith and Fulham, Richmond, Kingston upon Thames,
Wandsworth, Merton and Sutton together with the districts of South Bucks and Slough as delineated in
red on the attached map
b. A body corporate, an individual in his/her capacity as a partner in a partnership, an individual in his/her
capacity as an officer or a member of the governing body of an unincorporated association, if the body
corporate, partnership or unincorporated association has a place of business in the above locality
15c. An employee of the following employers:
1. Genesis Housing Association
2. Innisfree Housing Association
3. Salvation Army Housing Association
4. YMCA West London Group
5. Catalyst Housing Group
6. Inquilab Housing Group
d. An individual otherwise associated with the employers in c by being in receipt of housing and tenancy
support services from these employers.
e. an individual who is a member of the same household as, and is a relative of, an individual who is a
member of the credit union and falls directly within a common bond specified above
16Hillingdon Credit Union
-
2] Directors term of office
Directors of the Board shall normally serve a term of three years and stand
for re-election after the expiry of the three year period. All directors shall
retire once three 3-year terms of office have been completed (maximum nine
years) and must then cease directorship for a period of no less than one
year. Existing directors who have already completed a nine-year term may
serve for a further three-year term subject to re-election after the mandatory
one year break.
Hillingdon Credit Union is owned by its members for the benefit of its members and the local
community.
Authorised by the Prudential Regulation Authority and regulated by The Financial Conduct Authority and the
Prudential Regulation Authority – Firm No 213406Hillingdon Credit Union
-
30th AGM
THURSDAY 18th FEBRUARY 2021
Virtual AGM, 7pm – 7.45 pm
Agenda Items 6 and 7
6) Election for Membership of the Board of Directors
Motion: In accordance with rule 50 (3) the Board moves election to the Board of Directors be
subject to election by a single block vote. An election shall proceed.
For information: serving directors to serve for a further 1 year are:
None
For information: retiring directors to stand again are:
Garry Burgess
For information: new nominations received, following being co-opted during the year, are:
Neil Jones
Moji Macaulay
Joke Verheyden
David Payling
Patricia Wright
Kathryn Willis
Lin Benjamin
7) Election for Membership of the Supervisory Committee
For information: new nominations received are:
None received
Motion: In accordance with rule 50 (3) the Board moves election to the Supervisory Committee
be subject to election by a single block vote. An election shall proceed.
Hillingdon Credit Union is owned by its members for the benefit of its members and the
local community.
Authorised by the Prudential Regulation Authority and regulated by The Financial Conduct Authority and the
Prudential Regulation Authority – Firm No 213406You can also read
